SELLING REAL ESTATE NOT THE SAME AS OWNING
In 1970 my license was mailed to the broker at Forestland Realty, located in the small town of Jackson, in the heart of California’s gold country. It was my first job as a real estate salesman. By the year’s end I had earned $7200 in commissions! Not too bad for a start I figured, but still far short of my million dollar dreams
Mr. Roper, my real estate instructor, taught me enough to pass the examination on the very first go-around. At the time I remember thinking he was the smartest instructor in the world – but as things turned out, passing the real estate examination is not the reason I’m still thankful to Mr. Roper today. Instead, it was a casual remark he made to the, entire class of 76 students! Here’s what Mr. Roper said.
Commissions will not make any of you rich! Rich folks, he said, are the ones who get their names typed on deeds. They are the property owners. He then told us a simple formula for becoming wealthy! He said we should invest 10% of all our commissions in income properties. That way, he said, we’ll be earning money even as we sleep.
At the time I didn’t pay much attention to Mr. Roper’s advice! To me, it seemed like commissions would make me a whole lot richer than rents – and much quicker too! It took me several more years before I would finally test Mr. Roper’s advice. I purchased four FIXERUPPER HOUSES and began my journey living off the rents I collected.
Lots of water has passed under the bridge since I acquired those first four houses. Along the way I quickly discovered that fixed-up properties provided lots more cash flow. They also were 3 or 4 times more profitable! I also found out that you don’t need to be a Harvard graduate to make lots of money fixing ugly houses. Once you learn how to do it, you can keep repeating til you reach whatever income level you choose.
Before I sold a few houses several years’ back, my rents had soared to nearly $100,000 a month. Naturally I have expenses like everyone else - but I must tell you, I’m still a long ways ahead of any commissions I ever dreamed about earning.
One of the most frequent questions I’m asked at my seminars — Isn’t there a lot of work involved fixing up rundown houses” Of course there’s work, but when you’re done – the profits make it all worthwhile.
When you read my best-selling book, “INVESTING IN FIXER-UPPERS”, you’ll quickly discover why I’m the highest paid plumber in my town. Money makes plumbing seem much easier. The truth is, you don’t need to be a plumber, painter or electrician! About 90% of fix-up work is nothing more than hauling trash and cleaning. That’s why the ladies are often better than the guys. They understand the value of neatness and cleaning.
Folks often ask me — Is it hard to earn $100,000 every month from rents? When you first start out, it seems impossible, but as you begin to learn, it starts getting easier. First you’ll earn $1000 a month – and before too long you’ll reach $5000. The best part about investing the way I teach – you can quit after 10 houses or keep going til you own 200 like I did. It’s up to you! If you read my book, and you only acquire 3 or 4 solid income-producing properties, you’ll be lots better off than most of your friends.
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