Is Accumulating a $1,000,000 Net Worth in Real Estate Easy? Yes and NO
Is accumulating real estate wealth as easy as following a 3-step plan? Yes it is and no it isn’t. As with many things in life, accomplishing a goal such as accumulating one million dollars (or even $100,000) depends on your desire, your personal choices and your daily actions.
Let’s start with one example on how you might miss this goal. One of the first components of successfully meeting any goal is to have the desire (or a compelling reason). You’ve probably thought about losing weight, running a marathon or accumulating a great deal of wealth. However, the ‘want’, ‘wish’, ‘dream’ or ‘thought’ is often not enough to propel you to take continuing action steps to successfully attain your goals. Even if you take the first action step, your ability to sustain enough motivation to meet your goal may soon disappear after a few months or possibly after a few days.
Until you create and internalize a ‘compelling reason’ (true desire) to meet a specific goal, it will be difficult to meet your goal. You have to make this desire a ‘must-have’ instead of just a ‘want’; you need a compelling reason to meet your goal. You need to create a true desire.
The simple part of accumulating real estate wealth is many people have already succeeded in meeting their personal wealth accumulation goals. I have personally accomplished my net worth goals on two separate occasions and in 3 years I expect to reach my next net worth goal. I started with a net worth of a negative $10,000, mostly consisting of personal credit card debt. Meeting my net worth goal wasn’t easy; but I created a compelling reason, made some personal financial choices & took specific, daily actions to make these goals. Many other people from all walks of life, with all types of educational backgrounds are also very successful in meeting their net worth goals. Since it has been done many times before, setting and making your own personal wealth accumulation goal can be very attainable.
Let’s say you determined that accumulating a $100,000 net worth is one of your personal goals. If you’ve created a compelling reason (a true desire), then you’re ready to proceed forward to accumulating $100,000 and probably, much more. If you’ve not made it a ‘must’ goal and you are still only dreaming about accumulating $100,000, then you’re not ready to start. You’re not ready to take the second action step. This first step is critical – you must have a “compelling reason” to make your goal.
Anthony Robbins has made a living by proving that success starts with a strong desire. Check out a product review of his latest – Get the Edge program at www.your-key-to-success.com.
Ok, let’s say you have now created your own personal compelling reason to attain your goal. You’re ready to get started with the second action step. What are the key elements in meeting your real estate wealth-accumulating goal?
1. You must have at least $1,000 in savings to start a quick flipping house buying business in the midwest markets.
2. You will first invest into your self-study, e-learning, self-paced real estate investing courses.
3. You going to study and apply the information with the help of a real estate mentor or mentorship program for the first year to three years of your business.
1. Your personal income must cover all your personal expenses. The money available in savings after enrolling into a real estate investment training program should be used for marketing materials and online paid advertising (driving targeted traffic to you real estate investing business websites) to convert the highest number of leads possible. As traffic comes to your real estate investing business website and converts, you and your mentor will work together to turn those leads into quick flipping contracts for fast cash. As you acquire deeply discounted contracts and flip those contracts for fast profit spreads, you will then take a % of those profits and reinvest it back into the marketing investments to drive more business to your new real estate investing business. This is a simple mathematical statements, however for many people, they will think subscribing and building out a website is the sames (marketing), it is NOT the same. Those precious dollars need to go into sweat equity marketing and direct marketing to drive targeted motivated sellers to the new business so that the business has the opportunity to convert those leads into contracts that sell fast for cash.
Once your real estate investing quick flipping business is earning $20K to $30K/mo in gross income, less operating and marketing expenses, then you should pay yourself a salary but keep as much money in the operating business as possible to grow it as you learn new strategies and can capitalize on acquire wealth building assets. This is not the time to earn $20K-$30K and pull out 90% of it in cash and use it for personal lifestyle upgrades.
Do you have a compelling reason & discipline to accumulate real estate wealth?
Do you lack the discipline and have an immediate gratification need so strong that to satisfy your need, you need to purchase the newest fashion, go to all the home football games, dine out 4 nights a week, etc? It’s all about choice.
2. The second step to accumulating real estate wealth is to invest your excess funds from the deals that you generate Fast Cash from. You need to invest your excess funds to meet your business financial goals. Investments can range from real estate buy and hold strategies. Whichever route you choose, create a systematic approach to investing, change direction if necessary, but don’t stop. Investment diversification is important to help ensure that you can ride through the normal up-and-down cycles of the stock market or the real estate market.
3. The last step is the magic of compounding. You’ll often hear the phrase, “The rich get richer.” While this phrase can mean different things in different situations; in the context of compounding it has a major impact. Let me share a few examples on how you can accumulate $1,000,000 in real estate holdings with very little money and personal credit.
Let’s say that you located a distressed seller and their home in as-value is worth $100,000.00 and their monthly payments including taxes and insurance are $800 per month at 4% fixed interest rate. By investing $2K-$5K in sweat equity the home could be worth $125,000.00. The property rental market could easily pay you $1200 per month, thus creating equity and a positive cash flow of $400 per month. Now, you don’t have $100,000 personally and you can’t qualify at a local bank because well your debt to income ratio personally is too high.
By learning alternative buying strategies, you positioned yourself with a master lease and sublet agreement to acquire the property with first option to buy it at $100,000.00, improve it, and sublet the house to a tenant buyer who put’s down $10,000 and makes payments to you for $1200/mo. At anytime, you could refinance and pay off the original option to buy at $100,000.00. This is just one of the many ways to rapidly accelerate your real wealth goals.
Wealthy individuals understand the benefits of leveraging real estate. Here are examples that show how the rich get richer.
There it is. The 3-step plan for meeting your own personal wealth accumulation plan. Whether it’s $100,000 or $1,000,000; you have the potential to attain your personal wealth accumulation goal as long as you have a compelling reason (a true desire), you make the right personal choices and you take daily actions towards this goal.
Is it easy? – Not necessarily
Is it possible? – Absolutely yes!
Take Action Today!!
First, set aside 30 minutes or 3 days and create a compelling reason to set your own personal real estate net worth goal.
Then, set a specific net worth goal for 3 months, 1 year, 5 years and 10 years. Not sure what your goal should be. It doesn’t matter right now. Just set a goal and change it as needed – you’ll probably change it upward.
Next, take $548.00 out of your wallet or purse – TODAY – and deposit it into your new “Wealth Accumulation Self-Study” account. You’ve just now taken the first steps and are now on your way to meeting your goal. You’ll be amazed at what you can accomplish!
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