Entrepreneurship was a way of life in my family. My dad owned a plumbing business and my mom combined freelance news reporting with her work as an artist.
The conversation around our table was about business and how you can do or have anything you want. My family was always reaching for new ways get things done, brainstorming ideas, and moving out of the comfort zone and into action.
With that background, I first went out and worked for other people, helping them to build their businesses. But early on, I knew that the owner of a business was in the position to make a profit, not the employees.
After about 7 years, I knew this was never going to get me where I wanted to go, so I went back to college then developed my first business–a publishing company. I created a magazine from scratch, developed a market stream, got subscribers and ran that business for 20 years.
And then, an opportunity showed up! There was this crazy deal that could get me out of the rat race. The deal was to buy a condemned triplex in the city, yes condemned. All my husband and I needed was $50,000 and the property would be ours. There was such a huge profit to be made after fixing up the property. We could make $50,000 all in this one deal, more than we had made altogether in the previous year, 1990.
I wanted a different way of life that included never having to worry about money, having freedom and time to do whatever I wanted, money for retirement, time with my family, and traveling the world! In fact, I could just see myself, sitting on a beach sipping a cool beverage and feeling fully alive.
Back to the original problem–where was I to find $50,000? Who did we know who had that kind of money? My in-laws, a rich friend? Think! Who did we know? I put together a business proposal and went out seeking funds. I asked the in-laws, a rich friend and several others. The answer was NO.
This is where the investor mindset came to the forefront. I was still dreaming of the outcome, real freedom and no more worry. I had to make this happen. I kept looking outside the box. My husband and partner was a contractor. We had built a new house a few years prior–larger than our budget, with extra square feet and several projects still unfinished.
The question became, “How can we leverage this house?” It would cost around $4000 in materials to put a deck and a screen porch on the house. They were already part of the design, so we shifted gears. Where would we get the $4000 to build the deck? This time it was easy–credit cards.
Then we went to work. Using our own sweat equity, we did all the labor ourselves with help from a few friends. (If you’re in real estate, you can bet that at some point you will be contributing sweat equity, even if it’s picking up the garbage.) We built the deck and screen porch and got a home equity loan for $50,000.
This was just the beginning. We leveraged that to buy the triplex and fix it up. By the time it was complete, every credit card was maxed, we were eating anything left in the cupboard, and the bills were behind. We rented out the three units and hurried to the bank for a refinance of the property.
With a check for $135,000 we were on our way to real estate riches. The best part was we still had cash flow after that new monthly mortgage payment was made. In it for the long haul, we kept that building for over 10 years, cash flowing all the time, refinanced it twice and sold it for a healthy profit. That’s what I call a way to compound money. Ahh…real estate. Now, aside from the deal, there was a much bigger thing going on. What?
Throughout this time, I was developing my investor’s mindset and wealth-building practices. The next deal was already lined up, a four-plex with great potential profits. With all the mistakes we had made on the first project, imagine how we could improve on the process. We were already starting to build a system. Any first time real estate project is prone to mistakes. This one had the new furnace stolen one day after it was delivered, a small kitchen fire while rehabbing, and mega time delays from inexperience. We figured it out and kept moving forward with our eye on the prize – cash flow.
My whole story is about mindset. Ever wonder why some people seem to always be making big money and other people are just getting by, paycheck to paycheck? Which one are you?
If you are trying to figure out how to make it big in real estate, you must pay attention to what is going on in your head. Mindset is a fixed mental attitude or disposition that predetermines a person’s responses to and interpretations of situations.
Did you know that 90% of all millionaires made their money investing in real estate? The key to building wealth is to have multiple streams of income.
And, it all starts with your mindset as a savvy investor! You must have the confidence and ability to take the action necessary to have wealth. You must BELIEVE you can be wealthy. Money and wealth are a byproduct of pursuing powerful goals. People acquiring wealth operate differently than those who have money troubles. And it starts with the right mindset.
Back to my story.
There were many more real estate investments through the years after the four-plex. We invested in multifamily, rehabs, commercial, vacation properties and condos. I learned something valuable on every deal, and I maintain that investor mindset to this day.
As a master coach and consultant, I help people figure out their financial leverage position and then help them determine which strategy works best for them to grow a real estate portfolio or business. Then, using my Proven Profit Formula I help get them into action growing an income stream.
What is your mindset regarding real estate?
Let me help you find out, and begin the path to your financial freedom NOW.