By Bigg Success Staff
Do you want to be a millionaire?
Here’s a long-standing success formula that a lot of millionaires have followed:
Sounds simple, doesn’t it?
Well, you’ve probably already figured out that it’s not quite as simple as it may sound. So let’s discuss some details of how to do it.
It’s much easier to borrow money if you have “skin in the game”, as lenders often call your stake in any deal.
How much you’ll need to put in depends on a number of factors – what you plan to invest in, the market conditions at that time, the lending environment, your personal history and resources, and more.
You’ll generally need between $100,000 and $1,000,000.
You ask, “Why would I borrow $1 million if I already have $1 million?
We answer, “So you can have $2 million!”
Now, you object, “But I don’t have any money available.”
We answer, “Find a partner who does.”
Of course, you’ll have to share the proceeds with them. But so what – as long as you’re making progress toward your goal, why do you care?
You need a good credit rating to borrow money. These days there’s a flight to quality. The higher your credit score, the better. So if you don’t have a good credit rating, work hard to improve it. In the meantime, find a partner with a good one.
It also helps to have of past successes. Start small and begin building your track record. Or team up with someone who has a track record, but needs something you can offer.
You can’t just buy any asset – an asset that goes down in value won’t help you reach your $1 million goal. You want to buy something that will go up in value (or at the very least, hold its value).
How do you do that?
First, calculate your return. Divide the cash flow you will receive before your loan payment by the price you will pay for the asset.
Now compare that to your interest cost.
Is it greater?
If the answer is “yes”, then you may have a good investment. If the answer is “no”, you almost definitely don’t.
You’ll want to weigh in other factors, but that’s beyond the scope of this article.
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Here’s the secret that millionaires have been using for years – they let their customers pay off their debt!
Think about it this way. Let’s say you own a duplex. You have two customers who pay their rent every month. You then pay the mortgage on the property. This continues month after month, year after year.
Before you know it, you own a duplex outright! You haven’t done anything extraordinary. You’ve just let your customers pay off your debt!
It’s not simple, but yet it is. You need some basic business skills before you start.
The reason this works is it’s a forced savings program. Your money just keeps growing year after year.
This is the timeless secret that a lot of millionaires have used to build their nest egg!