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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.

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:

“Any self-made millionaire listens for opportunity. The average
person listens for what's wrong and why something won't work.”

Paying attention may just pay you a million!

Click on our Comment link below to share your thoughts 
Click on the Share This button below to Digg, Stumble, Mixx, etc.

Next time, we’ll offer up nine questions to answer before you make extra mortgage payments.

Until then, here’s to your bigg success!

Subscribe to The Bigg Success Show in iTunes. 

Subscribe to the Bigg Success feed.

Related posts  

Get Real Estate

How To Become A Millionaire

Good Debt vs. Bad Debt

6 Factors to Help You Succeed When Opportunity Knocks 

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.

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:

“Any self-made millionaire listens for opportunity. The average
person listens for what's wrong and why something won't work.”

Paying attention may just pay you a million!

Click on our Comment link below to share your thoughts 
Click on the Share This button below to Digg, Stumble, Mixx, etc.

Next time, we’ll offer up nine questions to answer before you make extra mortgage payments.

Until then, here’s to your bigg success!

Subscribe to The Bigg Success Show in iTunes. 

Subscribe to the Bigg Success feed.

Related posts  

Get Real Estate

How To Become A Millionaire

Good Debt vs. Bad Debt

6 Factors to Help You Succeed When Opportunity Knocks 

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Questions to Ask before You Invest in Real Estate

By Bigg Success Staff
04-07-08

Bigg Success in Real Estate

real_estate 

We’ve all seen the infomercials that tout real estate as a get-rich quick panacea. Just buy their product, follow their advice, and soon you’ll be quitting your job and living on easy street.

The problem is … it’s a dream, not a reality.

We’ll hasten to add that their program is probably a good one. A small percentage of people will buy it and succeed, although probably not as quickly as the infomercial would lead you to believe.

Investing in income-producing real estate is a great way for the right person to increase their net worth. In fact, it’s one of the most certain ways to get rich … slowly!

But the question is … are you the “right person”? In other words, is real estate investing for you? Because make no mistake about it, real estate investing is a business.

Real estate is a business
Even if you only own one investment property, you’re in business! So you should have some general knowledge about running a business and some specific understanding of a real estate investment business before you invest.

You need to understand the marketing, operational, and financial sides of real estate investing. You need to know how to

  • promote your property to prospective tenants
  • keep your property in good condition
  • track your income and expenses

Questions to ask yourself
It all comes down to your personal characteristics and your plan. Do you have what it takes to be a bigg success in real estate investing?

So before you start looking at property to invest in, ask yourself some difficult questions.

  • How will you find good properties for sale?
  • How will you determine how much to pay for a property?
  • How will you know if the property is in good condition?
  • Do you have the time and patience to keep looking at properties until you find the right deal?
  • Where will you get the money required for the down payment?
  • After you make the down payment, will you have money left over for unexpected costs?
  • Will you have enough money to keep paying the bills on the property even if you have a vacancy?
  • How will you find prospective tenants?
  • How will you screen these people to make sure they will pay their rent on time and take care of your property?
  • Do you have the time and patience to show your property to prospective tenants?
  • What will you do when a tenant is late on his or her rent?
  • Do you have the temperament to remain unemotional about your tenant’s situation and your investment?
  • Are you prepared for phone calls late at night or early in the morning because your tenant needs something repaired?
  • How will repairs be handled?
  • Do you know the law in your area regarding your rights and tenants’ rights?

If you don’t like your answer to the above questions, don’t despair. You can find a partner to fill in the gaps or consider hiring a property management firm. You won’t make as much money, but you can still build your wealth. Or you may just decide that being a landlord isn’t for you.

Contrary to what many infomercials would lead you to believe, real estate investing isn’t easy. However, if you have the right temperament and approach it as the business it is, it’s a great way to supplement your retirement. It might even make you rich … slowly!

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Hear today's lesson and laugh on The Bigg Success Show.

Related posts

Get Real Estate

How To Become A Millionaire

Good Debt vs. Bad Debt

6 Factors to Help You Succeed When Opportunity Knocks 

(Image by gerard79)