Let's face it; there are so many get-rich-quick schemes out there that it makes your head spin. This is a practical way to achieve millionaire status and stay rich forever--the same way that countless others have gotten rich. The time frame will probably take at least 36 months. But it could be shorter if you have the time and dedication to work this plan full time.
1. Understand that wealth is generated by owning "income producing assets". Assets are things like: rental houses, rental apartments, businesses, trademarks, copyrights, intellectual property, land, commercial real estate, and the list goes on and on. Just drive around. All the businesses you see and use, the apartment you rent, etc etc...they're all making some guy or gal rich. Who? The one who owns them. So embed that in your mind. No lotto, no mlm, no get rich quick crap, lets get real. You get income producing assets and you will get rich plain and simple. So now that you've pinned up that saying lets get the assets, here's how...
2. Get yourself a place to live, a computer with Internet access, a job, or a source of basic income to get you by on (such as a job, any job!) and if possible a car, even a junker is good. If you're not at this point yet, that's okay. You can still use this plan. However, ideally you should be at least living in your own apartment and having the basic foundations in place.
3. Check your credit score. Go online to some of these places like Equifax or other places that can provide your credit score and find out what it's at? If it's bad, consult with a company from the yellow pages or back of the newspaper or on this site on how to "repair your credit". However, never declare bankruptcy. If you don't have much credit at all and need to establish credit then begin by trying to get a department store card. Get several of them. Use them to buy your shopping items from that store for a while, and then just pay off the department store cards. Do not keep any balance on the card. Then do the same for a credit card. Get a credit card, such as from Capital One, or any other credit card company you see out there advertising cards. Start to use it, but never max out the card. In order to best improve your credit score, try to maintain about a 30% balance at any given time. This shows that you know how to properly use credit.
4. Go from "renting" to "owning". It's a mental barrier for some that needs to be broken, just as much as it is a practical step in this formula to becoming a millionaire. So if you're renting a home or apartment, chances are you're making enough money and have good enough credit to qualify to move into a home. Call up some realtors and let them know your situation. Tell them how much you pay in rent and tell them that you now want to own. Even if you need to downsize to a smaller condo or whatever, just do it. The key is, you need to own.
o Know that you may have to take what you can get. This often means buying a home from a seller who perhaps owns the home free and clear and will allow you to do perhaps a lease option, or carry the mortgage for you. Alternatively you get the seller of the home to carry 25% of the equity in the form of a second mortgage and then go to your bank to get the "first mortgage". Alternatively you put down 5%, get an insured mortgage and borrow the remaining 95%. The 5% can be borrowed from multiple sources such as, a bank, the realtor, a friend, your boss, so explore you options before dismissing it. Now, all this might sound complicated. But a good realtor who knows the ropes will "get you into home ownership". If they can't, you're simply talking to the wrong realtor. The right realtor will have all the connections to get you into the home.
o Try and find a good deal. That means you're getting into a home that the seller is desperate to get out of it, and will sell to you at a discount, perhaps 10% of a discount of what the property is really worth.
5. Immediately relist your new home at at least 10% to 25% higher than what you paid for it. That's where finding a deal comes in. You should have bought the home or condo at 10% to 25% of a discount knowing full well that you could immediately relist it at that much more. Make it all nice, without spending much on it. Don't do any major renovations. Just relist it higher, but just decorate it nicely like you see on those shows like "flip this house". You can get good ideas from places like: showhomes, magazines, TV shows, Internet, etc. Remember you need to do all your calculations. Factor in everything, all your expenses so that you're positive to make that 10%. So let's say on a very basic entry level, I'm not choosy just get me in the door, home that cost you $150,000. You immediately re-list it and make 10% net profit in 90 more days. So you instantly made say $15,000. Now don't you dare spend that money! Here's what you do....
6. Start looking for a nicer and more expensive home to flip. It still has to be one that you can be approved for a mortgage on; unless the seller is willing to carry the mortgage,in which case you wouldn't need to qualify which is another good scenario to look for. So let's say you find another property for $300,000. You put down 5% ($15,000) and the rest is financed either through a bank, or by the seller themselves. Now do the same thing over again. Make it pretty, without spending much if anything. Relist and try to make at least 10% net profit.
7. Repeat the process a few more times. Chances are strong that the most you'll be able to make on a flip is about $100,000. Beyond that point it can become very difficult to flip, as you want to stay in the 3 bedroom, 2 bath homes that the majority population is buying so that you can move the home fast.
8. Continue the process for a second year. Start to flip homes continually and try to make between $50,000 to $100,000 per flip. Now you have $300,000 to work with. Now that you have some serious cash to work with you're ready to join the big leagues.
9. Find a few key properties, such as small walk-up apartment buildings, or commercial real estate such as retail bays, or even businesses to buy. You need to be very careful and do your homework because this is what will move you into owning income producing assets that will take you up to and beyond millionaire status. Shop around and try to secure properties for as little of that $300,000 down as you possibly can. Go to realtors and tell them who you are, have a business card, a company name, and maybe even a website made up so that you look like a professional. Tell them you're looking for commercial or residential real estate in the form of small apartments, retail bays, strip malls, etc to invest in and that they should send you any offers that come available. Provide your business card with all your contact info, especially fax and email. As listings come in from them and as you check your local commercial mls listings you'll find properties.
10. Start to place lots of offers, offering very little down out of that $300,000. Try to go for lots of offers and try to average placing only 10% down on each property with the seller carrying a second mortgage, plus a first to cover the rest. That means that your $300,000 can leverage $3,000,000 dollars worth of apartments and commercial real estate. On average, that should generate for you approximately $10,000 to $15,000 per month in positive cash flow, plus another $8,000 to $12,000 per month in equity build up on those properties. With that kind of money coming in, you can start to afford to buy more buildings. At this stage you can still flip homes but it's kinda optional.
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