Money Can Grow On Trees
You can read the first part here.
Everyone wants millions and the dreams-come-true that go with it. There are roads that are tried and tested – which, more often than not, involve business. But here are some other ways to get to that golden brick road.
Real Estate
Contrary to what most think, huge capital and putting up a business entity are not really necessary to succeed in real estate. The secret (that-is-not-really-a- secret) – foreclosed properties. The how – the property can be fixed up and rented out (buy and rent), or fixed up and sold (buy and sell). But research, due diligence, some handyman abilities, patience, a flair for marketing and a lot of guts are necessary. Yes, there’s the question of – how in heaven’s name am I going to pay for it??? Most banks require only a 10% downpayment, which you can borrow, and the rest of the payment – the 90% – you can also borrow, and the loan can be stretched to forever (think 30 years). And this is what makes it beautiful – if you rent it out, the house will practically pay for itself, if you sell it, you get a tidy sum for a little bit of finding-house-fixing-house headache. Kiyosaki and the local Kiyosakis swear by this system to gain untold riches. (untold!)
(I bought a house when I turned 21 and tried this method. After renting out the house for 10+ years (admittedly, this caused me some headache), I finally sold it to the neighbor next door. Happy camper I was when that happened, that I want to do it again. Maybe when the right property comes… For you who are raring to try your hand at real estate, the US is a great market right now for foreclosed properties. Yes, the requirements are stricter BUT when the market goes up tempo, your cash register will ring, ring, ring.)
Bidding for Delinquent Real Property
Local governments come out with a list of properties to be auctioned quarterly because delinquent homeowners did not pay real property taxes. Most bid to buy cheap real property BUT an intelligent-money-savvy few get into it not to own the property – but to get interest for his money that he cannot otherwise get from the banks or elsewhere (think 24% per annum!). The typical investment is the show money for the auction (around $200) and the price of the bid. But this is for serious investors only because the winning bidder has to come up with the money at the end of the day. The bidder’s money is tied up too until the owners pay – or not pay. Either way he gets his interest, or a house. Not bad for a day of hearing gavel pound wood and getting into the spirit of collective excitement.
(I did this once for a client and it is exciting (good thing too that I was the only bidder for the property we wanted). I interviewed some bidders and found out they have been doing this for some time. Some of them have even pooled their money with other people and hired accountants and staff to follow-up and deal with the local government office. Man, the payoff must really be good.)
More, More, More
There are ways, and there are ways. Here is a mouthful.
Work smart. Have a system. Be efficient. Know the value of your time. Be prepared to hire people, if need be, so that they can take care of things and there is more time and moments to summon inner genius (think virtual assistant). Think out of the box. Constantly seek – and grab – opportunities. Sometimes, dare. Go the extra mile. And then make sure others who have a need to know – know.
Or you can also be an expat, or a famous actor (or painter, or singer, or chef – cultivate that talent now!), or be with a multinational corporation that gives golden parachutes upon retirement.
Indeed, there are a lot of ways to conquer riches that do not involve the word “business”. But most do involve hard work. Or luck.
But luck can be created.
It all starts – and ferments – in the mind.
Article by Issa. Graphics by Danvic Briones. Copyright 2011.
Website: www.YouWantToBeRich.com
Email: issa@youwanttoberich.com
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Real Estate technically is business though.
@Jason Well, yes and no. The definition of “business” is actually very complex but I was thinking along the lines of taxation and in the case I illustrated above, where real estate is a capital asset. A capital asset is not: (1) stock in trade or inventory, (2) property used in business which is depreciable, (3) property held primarily for sale to customers in the ordinary course of taxpayer’s trade or business, and (4) certain copyrights, compositions, letters and memorabilia. In short, most assets not used in business are capital assets, and assets used in a business are capital assets unless depreciable or held for sale. But you are right, there is a thin line. Thank you for your comment.