I see these topics all the time here.
NEW GUY NEEDS ADVICE!! I have no money, bad credit, and want to start investing in real estate!!! PLEASE HELP ASAP!!
Here’s some PRICELESS advice given to me 20 years ago by a REAL, self made, Real Estate MILLIONAIRE.
This guy has a 6th grade education, he owns 12 Dunkin Donut Franchises (triple net leases EVERYONE to his “managers”) He also has at least 20 class A commercial buildings that are 98% triple net leased.
His advice to me when I first got started???
“Kid…You got a job, that’s good…KEEP IT!!! Now I want you to save AT LEAST 10% of your gross earnings for 1 full year and then come back and see me. Until you can do that, we have nothing to talk about.”
I now know this was a BRILLIANT tactic. He completely left it up to ME to decide how SERIOUS I was about investing. I KNEW there was NO WAY I could go back to this guy a year later with $500 in the bank and expect to be taken seriously. I got a part time job (in addition to my full time job) and came back a year later with $15,000 in a statement savings account. I put the bank book down in front of him and told him how I did it.
You could see the shear JOY in his eyes!! He had found someone WILLING TO SACRIFIC to get ahead!! He told me that out of 100 people who he had given that advice to… only 2 had ever followed it.
The key to the “1 year plan” is… DISCIPLINE!!! With out that, YOUR SCREWED!!
Once he knew I had the DISCIPLINE, we started looking at houses together and he taught me… What to buy, why to buy it, and what NOT to get involved with. We did the first house together as partners. He generously split the profits 50/50 with me and I took it from there after one more with him as a partner.
The lesson most people miss with this plan is by SAVING that money over a prolonged period of time you are developing HABITS that ALL successful investors have. You MUST sacrifice NOW, for the bigger pay off LATER. Making that weekly deposit is about as boring as it gets. BUT…once those numbers start getting bigger and bigger a FIRE gets lit inside you. All the hard work, all the discipline, the TIME, it now MEANS something to you. That money doesn’t represent THINGS, it represents YOU!!! It’s a HUGE confidence builder and I swear a chemical change takes place in your brain. YOU HAVE BECOME DISCIPLINED!!!
You can do it…
BUT VERY FEW WILL!!!