Banks don’t actually hold all your money ☝️ If everyone withdraws at once, they'll need the Fed to step in 🏛️ Remember SVB? That’s how fast it can unravel 👀 Should this system change? 💭 🎤 @josephwang's talk from Monetarium 1

He’s leaving out interest on borrowed money and cap rate of lease. If a property is $1.2 million, you put down $200k and finance $1 million at 7%, your loan payment is $9844 a month with a 15 year loan. If the cap rate is 6%, you’re receiving $6000 per month in rent. So you put down $200k and have negative cash flow of $3844/month for 15 years. Is that passive income? Now, if you pay $1.2 million cash, yes, it’s “passive income” $6000/month, but there are other places you can make that on $1.2 million that are “easier”. *side note I like real estate. Yes, you can find better numbers than these. My point is that just because the tenant pays taxes and insurance, that doesn’t mean it’s cash flow positive if you have to borrow money like most people would.