Step Two to Making Your Fortune: Making Property Offers
Last week I gave you the first step you need to take towards making your fortune. I hope you’ve started that first step or at least put in place a savings plan you can get started with in the New Year!
Now onto your next step …
Step 2. Go out and make offers on dozens of potential bargain properties.
Remember last week how I told you that timing is so very important? Well, this is what I mean–right now we are at a 50 year low when it comes to mortgage interest rates and as everyone knows home prices have dropped by 30% to 50%. At the same time rental vacancies have dropped which has pushed rental rates up. All that adds up to perfect timing and great opportunities.
This step is key to taking advantage of that “Partners Capital” concept that I hope you are seriously considering as part of your first step. The key to getting good partners to join you is to have a property “tied up” before you pitch the deal to them. Why? Because it’s so much easier to ask someone “Would you join me and take on a 50% (or 75%) interest in this property I found?” if you are giving specifics on the property as well. If you can start a pitch by saying “I’ve found a great 4 unit apartment building” or “I’ve have a beautiful little rental house under contract” as well as being able to tell them you can buy the property for 30% under it’s real value or that it’s all rented up and will show a fat positive cash flow from day one, it will be hard for them not to consider joining in your little venture.
Now back to making offers. How do you find those great deals?
Finding the great deals is largely a numbers games. What I mean by that is if you make dozens and dozens of low ball offers you will eventually have some of them accepted. What I have done in most cases is to make those offers before I even take time to visit the property. This gives you the opportunity to write up the offer but make it “subject to” or conditional on your full inspection of the property and on the condition of the approval of your partner, even when you don’t have a partner yet. By using the “subject to” clause you are not obligating yourself and by using the internet and several brokers or agents it’s possible to make hundreds of offers without a huge expenditure of your time.
So get going on Step 2. Remember, you won’t be obligated to buy a property just because you’re making an offer but you do have to get out there and start looking and eventually there will be a property that you’ll want to jump on. It’s easier than you might think.
Make it your New Year’s resolution … take those first steps. Make this your year of success!
First Step to Making Your Fortune
Last week I promised that I would show you an almost fool proof path to your own financial fortune. I said that I would lay out a step by step formula that you could follow, so that’s what I am going to do now.
First a few comments about timing as it is very important that you understand how your timing can impact your success. In Malcolm Gladwell’s book Outliers he talks about research done on young hockey players and how the timing of their birth dates made all the difference as to who went on to play at a professional level. This might sound a bit odd but if you read the book you’ll see why their birth dates were so important to their success. The timing issue is about being at the right place at the right time but it’s not just about luck. Right now the timing for someone who wants to make a fortune in the USA is near perfect but it won’t matter one bit if you don’t take advantage of it.
So let’s talk about step number 1, that first step you need to take on your way to building a fortune.
Step 1: Work on accumulating some beginning capital.
Okay, you may rightfully be thinking “Easier said than done!†But it’s not about easy; it’s about what is possible. Just about anyone can do this and there is more than one way to get the job done.
The slow but sure way is to consistently set aside at least 10% of your income. 20% is even better if you can do it. That’s the way I started and yes it took years before I had enough capital to begin to get started on amassing my fortune. However, if you want to jump start you growth of capital there is a way to dramatically speed up the process. It’s called “Partners Capital”.
In my book How to Wake Up the Financial Genius Inside You I tell the story of a guy that now has over a half a billion dollars of income producing property and he did it quickly because he did it primarily with “Partners Capital”. When he was in college he came across my book, followed the formulas I had outlined in it but also added the “Partners Capital” thing to the mix. With this combination he passed my success level by a huge margin, which of course makes me very proud.
If you choose to go the “partner” path there is a way to do it that can bring in not just one or two partners but multiple partners to join you. This is really is part of step number two which we will get to next week. But as part of your first step, I suggest you read my updated book now called The Next Step to Waking up the Financial Genius Inside You. I very much want you to succeed so I am giving the first 50 people who email me a free copy of the book. Just cover the $5 cost of shipping to show you are serious about amassing your fortune and I’ll get the book right out to you. Email me at freebook@reincome.com to get started.
The Path to Your Own Fortune
Recently I wrote about a young man in Australia whose father bought my Financial  (How to Wake Up the Financial Genius Inside You) years ago and now this 28 year old Australian is very excited to put the step by step financial formula that I outlined in the book to work for him and create his own fortune. Of course I was very flattered and even more pleased to help someone since I had so many great people help me. Plus, I am a huge believer in the concept of “Paying it Forward” or in other words—giving back!
Most of my blogs in the past have been about non-financial things and more about gaining and keeping a great “Passion For Living” but, in today’s slowly recovering economy with many people out of work I think I just must address the very important subject of money. We all need it and most people want more of it and since I’ve got a bunch of it and have huge experience and success in making tons of money, I really want to help! And right now is the perfect time to go to work.
If you follow my financial formula you can create your own job and pay yourself very well—and yes you can do it from home. That’s right … you can make a fortune starting with virtually nothing and do it primarily from your kitchen table and like I said, right now the timing couldn’t be better!
My first million dollars (in net worth) was made by the time I was 31 years old. It took a little less than 4 years and the 2nd million took half that time and the 5th million took even less time. No, I didn’t rob a bank and I didn’t come from a family with lots of money. How did I do it? I did it by using other people’s money (OPM) that is, bank money and partner money and I was pretty darn lucky because the window of opportunity was wide open just like it is for you right now!
On next week’s blog I will give some very specific things that you need to do if you want to forge ahead toward making your own fortune, large or small. But first, do this for me … decide and be determined to make your fortune. Don’t question it or worry about how you’ll do it. Just get that idea well-planted in your mind then next week, I’ll give you the first steps you’ll need to put you on the path towards your dream.
If you are at the stage of your life where you’re very comfortable and not looking to make more money then you might want to pass this post and the ones to follow on to someone you know and want to help in the financial part of their lives. I’m sure they’ll love you forever for doing that.
Compounding Generosity
If you’ve read either of my books, How to wake up the-Financial Genius Inside You or How to Ignite Your Passion for Living, you know how big I am on the concept of compounding. Compounding your investments has to do with keeping the income you make off your investment in the game so that you make new income off the previously created income allowing your revenue to grow exponentially. This concept can actually be applied to many things. If you saw the movie, Pay it Forward, you saw a good deed and the gratitude that came from it compounded. Instead of the one good act being the only good act and the thanks only being returned once, the idea was passed onto multiple people who passed the generosity onto several people each and soon the world was “paying it forward”.
This is the concept behind viral and word of mouth marketing. Tell someone or a group of people and encourage them to share their enthusiasm for your product or service and hopefully the news will continue to spread and grow your market. We’ve all seen this happen with viral videos. A few people see it, pass it onto a group of friend who pass it onto a group of friends and next thing you know a million people have seen it!
When you give of yourself this season–be it money, time, knowledge or just a kind word–ask yourself if there is any way to compound the gesture. If you give money, it will compound if you give it to a charity that helps poor communities build commerce which will increase the community’s wealth and ability to financially sustain it. If you teach a young person a new skill, like how to invest (see the wonderful email I received and shared in the post last week), encourage them to share what they learned and ask those they teach to share it as well. Then your time with this one person will end up helping maybe dozens or hundreds of people or more.
Of course, if all you can do is give a few more people encouragement and a kind word, the good intentions and good cheer will usually get spread simply because you made someone feel better and that feeling tends to make others want to do the same. Generosity is self-perpetuating. And that, in a nutshell, is true compounding!
The Rewards of Sharing Success
One of the most wonderful things about what I do—sharing and getting out the information about my success—is that I get to see how my actions affect other people and their lives in a big way. It makes me feel so good to help other people. I certainly don’t need money now and to give a little bit back gives me the best feeling in the world! Here is a recent note I received from a young man who read How to wake up the-Financial Genius Inside You for the first time when he was 18. Now he’s 28 (I was 27 when I started investing in real estate) and ready to take on the world:
Mark, I’m very appreciative to you. You have literally set me on the right path to purchasing property & securing my families economic future for generations. I have a lot of gratitude for that. Since talking to you I have met the right people that have also set me on the right path. I now know what I have to do to start investing right here in Melbourne, Australia. There is a way…there are cheaper run down ‘dirt bag’ houses and apartments out of the city which you could still pick up for 150k-300k and all of your techniques are sure winners to increase value from the get-go. Australia’s population is going to nearly double by 2030 and I’m certain that pricing will naturally have to rise. I would definitely love to purchase property in the US but I think to start nothing’s better than in your own backyard.
I can’t be more expressive of my gratitude to you than to say that you gave me the time, were willing to meet & coach me all at no cost and that is absolute gold. It’s pure.
When I accumulate my wealth I promise to be generous with my time to others wishing to accumulate wealth. I will repay this debt as such and with all of the above said, I think that there is a lot I can do by myself at the beginning to really lay down the foundation of financial success. I’ve started creating a map. So again, thank you and I will keep you updated on my progress.
Mark, I wish you the best. You truly are blessed. Have a wonderful Christmas & New Years. You will be hearing news from me and it will be positive 🙂
Best—Sam Barry
How to be Thankful: Live in the Now
It is not usually the moment we are in that worries or upsets us. Yes, a certain moment can get us riled up but if you think about it, it’s our dwelling on the past or worrying about the future that keeps us from enjoying life, from enjoying the moment we have at hand.
Dwelling on the past or possible future does you no good. What has happened is no longer in your circle of control and as for the future, do the best you know how and the future will play out the best that it can. What you have at any given moment is the only thing that matters, the only thing you have any real control over. And the control you have is choosing to enjoy and appreciate what you have right now or ignoring it for the pointlessness of the unchangeable and the unknowable.
Be thankful for the good things you know are part of your life as it exists now, for the friends, family and talents you have. Regret and worry do nothing but cause you to conjure up dissatisfaction in what has already happened and what might happen, clouding your perception of the wonderful things you do actually have. There is a saying, “Past is History, Future is a Mystery and Today is Gift and hence it is called the Present”. Enjoy the present, as a present to yourself and all those around you. Find your joy, make your own happiness in the one certain and controllable thing you have … the moment you are living right now.
Our Nation’s Opportunity
I think most of us are all thrilled that the election is over. So much talk and spinning and of course the endless political ads can drive a person crazy. Not to mention those all too often mean-spirited personal attacks on Obama and Romney. So of course, there will be some skewed views about our President that will persist for a while if not until the end of his term but that kind of focus won’t do our nation any good.
What can we do to put the bad taste of the election behind us and move towards a positive future? To start with, we all need keep focused on what needs to be done. I would like it if you would click on this link and read this very interesting, and I think very accurate, article on the outcome and who we really elected as president.
The problem with most of the hostile messages I read was that they were long on sweeping generalizations and very short on specific facts. I know there is a grand hope that is shared by the majority of Americans–that now with the election over, perhaps the two sides will act like adults and do what politics is all about. That being an opportunity to come to a compromise so that we can keep our slow recovery on track.
Our leaders need to realize they represent ALL OF US whether we voted for them or not, whether we are Democratic, Republican Independent or undeclared. This is not about competition. It’s about our country.
I hope you get something out of the attached editorial and maybe even share it with friends whether they were for or Obama or not.
http://www.sltrib.com/sltrib/opinion/55227958-82/obama-republican-bush-tax.html.csp
Grow into Your Goals
I ran across this quote on the net recently …
Something about this statement sticks with me. With my recent health scare I’ve been thinking a lot about my goals. I don’t usually set easy goals but I do usually set goals that fit with who I am at the time. However, I have been thinking more about who I want to be and what I want to change in my life so when thinking of my challenging goals, I need to focus on not what my present self wants but what the future version of me should do.
The thing is, sticking with what is easy – with what we know is comfortable and safe – isn’t usually very fulfilling. Challenging yourself to be, and do more, than you think you can is not only exciting but gives every day a unique and motivating reason to get up in the morning. If you stick with it. taking on the challenge will make you change and grow until you become the person you need to be to accomplish that goal.
How much do you push yourself? You are never so far down the road that you shouldn’t keep trying to make yourself better. Keep challenging yourself with big goals!
Leave The Pessimists Behind
I’ve had a lot of time and reasons to really think about all I want to do with my life these last few weeks. I’m pretty ambitious and some people, after hearing about my recent death scare, might think I should slow down or that my ambitious goals aren’t realistic. But you know, I’m not going to let other people’s pessimism and nay-saying stop me from finding a way to accomplish whatever it is that I want to do.
A few weeks ago, I mentioned that you should listen to other people’s suggestions … their positive suggestions that can show you options to make things happen. But there is one thing you don’t want to listen to … the pessimists and naysayers that tell you it can’t be done, that you’ll fail, and/or criticize you for even trying.
If someone has nothing but negative responses to your dreams and ideas, walk away. All ideas will have cons as well as pros and any true friend should be able to give you a little of both. A true friend will support you in aiming for your dream and help you find sensible ways to accomplish them.
People who do nothing but aim to discourage you are not telling you what they think of you or your dreams but of theirs. These are the people who cannot or will not allow themselves to dream or are threatened by the success of others. Pay them no mind. Simply go out and accomplish your dream. Then maybe, seeing you succeed where they were certain you would not might just strike them in such a way that they will eventually dare to dream for greater things for themselves.
Dodging a Bullet
All I have to say is a double WOW… I worried myself sick after the doctor told me there is a 90% chance that my right main heart artery is 100% blocked. We scheduled an angiogram and just before they wheeled me in the doctor tells me that if my left main artery is also blocked then they will have to do open heart surgery. Of course, that last comment scared me to death and I started thinking about dying. Hey, I’ve had a good nearly 69 years and a lot of people get much less than that.
So there I am in the operating room staring at the ceiling as the doctor gets to work. (They don’t put you under for an angiogram.) I think back on my life and that everyone has to die and maybe it’s my turn now. Â Less than an hour later they wheel my bed back to the hospital room where my wife Kimberly is waiting. Then the WOW news!! And what was that news?
“We didn’t find any blockage. All the tests, cat scans and nuclear stress EKG’s that you had that showed a blockage were wrong. It was a false positive.”
Did that ever make my day … or life! But what a lot of stress I went through to get there. I guess that kind of proves the old adage that “What we worry about the most doesn’t usually happen.”
But there was a good lesson that I learned. It goes back to what the Buddhist have said for years … that everyone of us needs to mentally go through in our heads the process of dying (to die before we die) so when we do get to that point in our lives where we really are going to die, it makes that transition much easier to accept and to embrace.
So yes, I dodged a bullet. Even if I did have a stent put in or had open heart surgery the chances of survival would have been very high but still, dodging that bullet helped me prepare myself for the inevitable. It also gave me pause so that I took a good hard look at the relationships I have with family and friends and renewed my vow to do more with my life.
But you don’t have to go through an unnecessary scare like this to appreciate and reaffirm the strength and importance of your relationships and really see what you are doing with your life. Just ask yourself, if I died today, would I feel that I was the kind of person I wanted to be for the people I love and am doing what I really want with my live? Then listen carefully and well to the answers and make the changes you want to see while you still have the time here to do it.
