This Is How Rental Property Saves You from AI Replacing Your Job

I'm going to say something that might make you uncomfortable. AI is not coming. It's not look out ahead or here's something that you can expect in the next 5 10 years. AI is already here. It's writing. It's coding. It's answering customer service calls in the mortgage industry. It's replacing entry-level analysis. It's replacing marketers. It's replacing quite honestly loan officers that don't adapt and start using it. And if your entire income depends on showing up to work every day, you are exposed. In today's video, I want to talk about why owning assets, specifically rental real estate, may be the single best hedge against being replaced by AI. And this isn't a fear-mongering, fear-based video. This is a strategy video because I truly believe and I've got a lot of smart people I listen to talking about the way to guard against this huge AI shift is to own assets. I happen to think that real estate is a great asset to own. So, let's talk about what's happened, right? and the shift from labor to assets for the last I don't decades for the last hundred years like the formula was simple if you talk to my dad it was go to school get a job trade your time for money and retire some way and that formula worked when labor was scarce and they needed manual labor for just about anything but now you know with AI like rapidly expanding software can draft legal documents and analyze medical imaging in our business in mortgage It can underwrite loans. It can write marketing copy. It can build websites. So if your income depends on your labor and labor becomes more replaceable. What does that mean for you? Your income becomes fragile. You become replaceable. But assets like real estate, they don't clock in. They don't get replaced. Assets produce income whether you're working or not. So that's the shift I want you to start thinking about. This is a very interesting topic. I listened to Cody Sanchez. I listen to some other people talk about it and I was like I'm going to make a video give my thoughts on this because I'm absolutely convinced and I agree wholeheartedly with people who talk about the future belongs to asset owners and not just high earners. So specifically rental real estate, why is it different? And there's lots of assets you can own. And you've heard people talk about, you know, you want to own assets that are a hedge against inflation. They appreciate over time. They pay you. But there's lots of different assets if you're talking about assets. There's stocks, there's businesses, there's crypto. You know, some people deal with private equity. Rental real estate is unique. Before I talk about the four different, you know, parts of rental real estate. For me, the reason I love it the most is because it's relatively simple asset to understand. And so, I work with everyday people. Everyday people like you that's watching this video that own real estate, buy another piece of real estate, they estate. before long they've got real generational wealth to pass on and they can see it, they can feel it, they touch it, they drive by it, right? They do some of the repairs themselves. But the reason why real estate is such a good asset and people who are wealthy own real estate. Almost everybody who has wealth owns some real estate because it has four like wealth engines working at the same time. A piece of rental real estate can have cash flow. It's also going to appreciate over time. It's going to have debt loan payown, meaning every month that mortgage gets paid, you owe less on the mortgage. And that's usually not being paid by you. If you're not living in the home, if it's a true rental real estate property, somebody else is paying that. And then, of course, number four is tax advantages. So, break that down a little bit, right? When you own a rental property, and this I think is simple. That's why I love it, right? Everybody can understand this. When you own a rental, the tenant pays your mortgage. the property historically and someone will in the comments if you own something in Austin it went down 18% historically it appreciates over time in California over the last 40 years that's 5. 9% in other states is different but over time it appreciates the loan balance shrinks every month and you get depreciation and other tax benefits right people are always going to need housing families need roofs supply is still constrained in places like Sacramento California where I live right shelter is not optional you can't replace shelter with AI, right? AI can't live in a chat GPD subscription. You can't live in inside of uh this new digital world. You need a house to live in. And AI doesn't eliminate that demand for housing. Inflation plus debt is the ultimate recipe for your advantage, right? And a lot of people miss this. So, you own a piece of rental property with a fixed rate mortgage. And for simple analysis, you got a 30-year loan, you got a 6% interest rate, you've got a $2,500 a month payment. Inflation becomes your friend. That $2,500 payment stays the same, but rents go up, property values go up, replacement costs for that property go up, the debt stays the same. So over time, inflation makes your debt cheaper in real dollars. To keep that real simple, if you bought a house and had a $1,500 payment 10 years ago or 20

years ago, that might have felt like this is my max budget for housing. Fast forward to today and that same $1,500 payment feels easy. Why is that? Cuz everything's more expensive. Your groceries have doubled. Your gas has doubled. Everything in your world has doubled, but your mortgage stays the same. So, you don't get rich betting against housing long term. You get rich owning it long term. For the purposes of this video where we're talking about things you can control with AI, there's not a lot of stuff you can control, right? Whether or not your department with nine people can be efficiently run with two people plus, you know, some AI tools. You don't want to be dependent on that, right? You're dependent on your employer, your industry, the economy, technology skills. Jack Dorsey, former founder of X, just announced like 40% of his workforce laid off. He said, "We're not slowing down. the company's not in trouble. We're laying off 40% of the workforce because we can get more work done more efficiently with the remaining 60%. That's going to happen in a lot of industries, companies, and you don't get a vote, right? But when you own rental property, you control the asset, the financing, the rent strategy, the hold strategy, the exit strategy. You're not asking for a raise. Like the raise comes because rents get raised in line with the market, right? You're not hoping for a promotion. You just wake up in 10 years and you've built equity. You got another $250,000 in equity in this home. That's power. And the more uncertain the future becomes, the more valuable control becomes. I like examples. So, let me give a simple example. I love doing this. People generally speaking resonate with this cuz they can really understand it, right? You buy a $500,000 rental property. You put 20% down and you've got a 30-year fixed rate mortgage. Fast forward 10 years. Again, real estate is not a get-rich quick scheme, right? It's a get-rich slow, but get-rich for certain, right? The tenant has paid down tens of thousands in principal. So, you started by owing 400,000. After 10 years, since it's, you know, frontloaded with interest, maybe you owe $310. But that $500,000 property has also appreciated over 10 years. Conservatively, maybe it's worth $700,000. Your rents have gone up. You know, when you started renting it, it was breaking even. Now, the thing's making $400 or $500 a month in cash flow. maybe 800 a month, maybe a,000 a month. You're also receiving tax benefits. That's all the advantages of real estate. Meanwhile, if your job gets automated, you still own the property, you still collect rent, you still have equity. That's insulation. That's protection. That's optionality. With this video, I'm not saying quit your job, go all in on real estate, leverage to the moon. What I am saying is don't rely on only one income source in a world where technology is accelerating. Use your job to buy assets. The thing I was listening to today, I fully agree, right? Buy assets whenever possible. And that's something that, you know, wealthy people understand and they do it, right? Use your income to acquire some protection. These assets are protection against who knows what's coming, right? Use debt strategically. Don't go crazy with it. But AI rewards efficiency and asset ownership rewards patience. I saw something the other day that talked about all the most successful investors. They bought stuff and held it and that was the formula. The end. This is just a little bit of a glimpse into the future. What you can do to prepare yourself. The future isn't about working harder. It's about owning smarter. If AI replaces 30% of the jobs in the next decade, the people who will sleep best at night are the ones who own cash flowing assets. Rental real estate isn't sexy, it's not flashy, it's not viral, but it's durable. And durability wins long term. So, if you want to talk strategy, primary residence, first rental, house hack, uh, multi-unit, DSCR, 1031, reach out. Um, more than happy to help. The goal isn't just about making money. The goal is about building protect protection and assets protect. Reach out. As you know, me and my team are more than happy to help. We're helping people across the country. Go to mtmg. com. Um, shout out to the new focals. 45 years old. I can't see as good as I once did. So, I'm rocking these in the office. Let me know down in the comments if you like them or not. Again, mtmg. com. Connect me and my team. Thanks for watching.