I Don't Know How to Spell Millionaire, But I is One!
On the show, George shared a story from when he was a young man. So, obviously, this is an old story! He met a gentleman who was very successful in business and real estate investing. But you wouldn’t have known he had a dime to his name.
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George said he can still picture this man sitting at the table in his coveralls with his cap. He was a great guy who said something George never forgot.
This man said, “I don’t know how to spell millionaire, but I is one.”
How did he become a millionaire?
He bought something!
Not a new wardrobe. Or a bigger house, a new car, a second house, or a boat.
He bought an income-producing asset. He bought a duplex.
What he bought is important
He put down a small amount of money and found a bank that helped him finance the rest of it. He improved the property by doing minor things like painting, putting down new carpet, and some basic landscaping.
So now he had a property that looked much better. So tenants were willing to pay more to live there. So he increased the rent.
Then he went back to the bank because he was making more money. They gladly refinanced his loan, because the income from the property would support it.
What he did next is even more important
He took this money from the bank and bought another investment property. A slightly bigger one. Which he then improved. He kept doing this over and over again until he became a millionaire. Eventually he owned a whole bunch of things.
What you don’t need to become a millionaire
You don’t have to be that smart to become a millionaire; just be sensible. It also doesn’t take that much money to get started. You don’t have to be a super savvy business person. And you don’t have to have a fancy education, although education is a good investment.
And you don’t have to wear flashy clothes!
4 tips that can lead you to a million dollars
#1 – Start small.
Don’t bite off more than you can chew. Assume you’ll lose everything, so don’t invest more than you can afford to lose.
#2 – Know your strengths and weaknesses.
Get help. If you’re handy, find someone who is financially savvy. If you’re financially savvy, find someone who’s handy. If you have time but no money, find a partner with money. If you have money but no time, partner with someone who has the time.
#3 – Make yourself accountable.
The CEOs of the biggest companies in the world answer to a Board of Directors. Get someone who will hold you accountable – be it a mentor, a coach, or a partner.
#4 – Logic, not emotion, rules.
Don’t fall in love with a property. You’re not looking for cute; you’re looking for cash flow. Don’t rent to a tenant because you like him or her; rent to them because of their good credit score.
Our bigg quote today is by Brian Koslow:
person listens for what's wrong and why something won't work.”
Paying attention may just pay you a million!
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Next time, we’ll offer up nine questions to answer before you make extra mortgage payments.
Until then, here’s to your bigg success!