The Investment Mindset

Left Side = How Much Does It Cost Me?

Right Side = How Much Money Can It Make Me?

Wealthy

1. Cash Flow (to pay expenses + lifestyle)
2. Purchase more cash producing assets (Grow wealth)

Middle Class

1. Capital Gains (Buy And Hold)

So how do you create "arbitrage" or passive income?

Creating space between the borrowed money (OPM) and what an investment pays.

Wealth - Cash flow - Arbitrage - Leverage

1. Income Producing Assets (Apartment Building, rental property, insurance policy, business)
2. A lender that is willing to lend against the asset as collateral (leverage)
3. Income that is larger than the loan payment and expenses related to the asset