My good friend, Lee, earns a lot of money.
I mean a LOT of money. He is the founder of several companies that, cumulatively, employ more than 500 people. The original company has spread into many divisions:
- Home Furnishings
- Doors and Windows
- Apartment Buildings
- Shopping Centers
- Gold Investments
Do you know the one thing Lee doesn’t invest in?
He doesn’t make traditional investments in stocks or bonds.
When I asked Lee why he didn’t invest in stocks or bonds, he made it very clear.
“I invest in businesses that I can run, or in assets that I believe will grow in value.”
All of my friend’s businesses operate on properties that he owns.
So he is the landlord and he is the tenant. Sometimes he is the builder of the property, the supplier of the materials to construct the property, and the owner of the business that pays rent on the property.
He earns money at every level, and this strategy has led to his controlling several hundred million dollars worth of real estate.
When I asked Lee how he was able to start the empire, he explained that it was all through real estate.
He negotiated a deal to purchase his first piece of real estate with no money down. He created a business that would pay debt owed on the real estate.
As the real estate grew in value, he leveraged his equity to invest in more real estate.
Lee repeated that cycle over and over again.
Lee never pursued get-rich-quick schemes. He looked to the future. He considered properties that would grow in value over time.
He strove to acquire as many such properties as possible. Businesses he built wuld generate sufficient revenues to pay for the properties.
That strategy is part of a long-term, well-executed plan to create wealth. It’s what has worked for my wife Carole and me.
You can learn more about creating plans in my free course on building an insane work ethic. Here’s a link to class two:
20-minute Video on Creating Plans
When I got out of prison, I created a plan to build my first million dollars in assets, and I set a goal of achieving that goal within five years.
I knew that acquiring $1 million in assets would be a big step toward creating wealth.
There are many types of assets.
For example, a savings account is an asset. But there was no way that I could earn enough money from a job that would allow me to build a savings account that would be worth $1 million within five years. I could work for 50 years and it would be unlikely that I would ever be able to save $1 million from earnings on a job.
I had to think differently. And lessons I learned from leaders like Lee convinced me that if I wanted to build $1 million in assets, I would need to start by investing in real estate.
I would not need $1 million to acquire $1 million in real estate. If I created a good plan, I could create opportunities to use leverage. With leverage, I would be able to acquire real estate with little to no-money as a down payment. Leverage would allow me to borrow the funds to purchase the real estate.
But I had disadvantages.
I was in prison for longer than a quarter century.
I didn’t have any credit.
I didn’t have a work history.
Despite those obstacles, I felt confident that I could create a plan that would lead to my first investment I real estate.
Pursuing success begins with good plans.
What plan do you have to build prosperity?
Have you thought about steps you can begin taking today that will lead to more wealth in your life in the years to come?
In tomorrow’s email, I will share more about the steps I took to begin acquiring real estate.
I’ll share how leverage worked for me and how leverage can work for you if you want to begin to own assets that appreciate in value.
I hope these tactics and strategies will set you on a path to build more prosperity for your family.
Always think about steps you can take today to create more value tomorrow.
Make life happen!
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