$15 Minimum Wage: Why Real Estate Investors Should LOVE This Idea [Opinion]

$15 Minimum Wage: Why Real Estate Investors Should LOVE This Idea [Opinion]

2 min read
Brandon Turner

Brandon Turner is an active real estate investor, entrepreneur, writer, and podcaster. He is a nationally recognized leader in the real estate education space and has taught millions of people how to find, finance, and manage real estate investments.

Experience
Brandon began buying rental properties and flipping houses at the age of 21. He started with a single family home, where he rented out the bedrooms, but quickly moved on to a duplex, where he lived in half and rented out the other half.

From there, Brandon began buying both single family and multifamily rental properties, as well as fix and flipping single family homes in Washington state. Later, he expanded to larger apartments and mobile home parks across the country.

Today, Brandon is the managing member at Open Door Capital, where he raises money to purchase and turn around large mobile home parks and apartment complexes. He owns nearly 300 units across four states.

In addition to real estate investing experience, Brandon is also a best-selling author, having published four full-length non-fiction books, two e-books, and two personal development daily success journals. He has sold more than 400,000 books worldwide. His top-selling title, The Book on Rental Property Investing, is consistently ranked in the top 50 of all business books in the world on Amazon.com, having also garnered nearly 700 five-star reviews on the Amazon platform.

In addition to books, Brandon also publishes regular audio and video content that reaches millions each year. His videos on YouTube have been watched cumulatively more than 10,000,000 times, and the podcast he hosts weekly, the BiggerPockets Podcast, is the top-ranked real estate podcast in the world, with more than 75,000,000 downloads over 350 unique episodes. The show also has over 10,000 five-star reviews in iTunes and is consistently in the top 10 of all business podcasts on iTunes.

A life-long adventurer, Brandon (along with Heather and daughter Rosie and son Wilder) spends his time surfing, snorkeling, hiking, and swimming in the ocean near his home in Maui, Hawaii.

Press
Brandon’s writing has been featured on Forbes.com, Entrepreneur.com, FoxNews.com, Money Magazine, and numerous other publications across the web and in print media.

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YouTube
Instagram @beardybrandon
Open Door Capital

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?Look, I’m a pretty conservative guy.

And most of my friends will probably hate me after this post… but here’s the truth: I love the idea of raising the minimum wage to $15 per hour. 

Why?

Let me explain.

Do Minimum Wage Workers Deserve $15 an Hour?

Well, let’s get one thing straight first: I don’t think these people deserve it.

In my opinion, people don’t deserve something like that. As you probably know, I’m a red meat-eating, lumberjack-resembling American capitalist. People don’t deserve a specific income. Things are worth what they are worth, not what the government decides.

However…

Just because they might not deserve it doesn’t mean it wouldn’t help me, as a real estate investor. It probably won’t help them, in the long run, but it will help me.

Why The Minimum Wage Needs to Be Increased

Most of my tenants are minimum wage employees, making around $9.00 an hour right now.

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By raising the minimum wage, my tenants will be able to more easily afford their rent. Less trouble getting rent, for now.

Then, rental rates tend to rise based on minimum wage (the lowest common denominator of a society needs to be able to afford to live in an area), so rental rates will start to rise. Inflation kicks in. But my fixed rate mortgages stay the same. My profit rises. The tenant’s living expenses are not 50% higher than before, so they are in the exact same spot after a few years. Sucks for them. But, again, my fixed rate mortgage stays the same.

So, yes, I agree — the major premise behind the “let’s raise the minimum wage” cry is incorrect. It’s not going to help these people over the long term. People’s living expenses always rise to meet their income. Everyone lives above their means. (Be sure to read through “The Simple Action No One Does That Will Make You A Millionaire” for more of my thoughts on that.) Minimum wage tenants will likely be no better off than they are today.

However, I’ll be better off.

Sure, some of my tenants will be able to qualify to buy homes, which means I may lose them, BUT it will lift the real estate market even higher, so I can sell more properties. More tenants who are living with roommates and with their parents will be able to branch out on their own and take the place of those buying houses.

Everyone wins.

Answering the #1 Objection People Have Against Raising the Minimum Wage

So, what happens when McDonalds has to suddenly pay their employees more money?

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The cost of a hamburger goes up slightly. Probably not double. Probably not 50%. But it will go up a little bit.

Boohoo. People in America could handle eating a few less double cheeseburgers if you know what I mean.

Finally, to one more objection: Yes, McDonalds may replace some of these workers with a machine, but that’s happening anyway. No getting around that. But fast food is just one industry of minimum wage workers.

What Do You Think?

What do you think?

Am I crazy?

This post was meant to open up a conversation, so let’s start conversing. Share your thoughts below!

?Look, I’m a pretty conservative guy. And most of my friends will probably hate me after this post… but here’s the truth: I love the idea of raising the minimum […]