This post was inspired by Amy Hahn's post:
Ray Kroc, the long time owner and chief architect of the McDonalds empire, said this: It wasn't about how many hamburgers they sold, it was about the real estate acquired for selling them.
A direct quote of Ray was "I'm not in the restaurant business, I'm in the real estate business." Of course, Ray used all the real estate he bought pretty wisely and did sell alot of hamburgers. But what if people suddenly stopped buying McDonalds food? They still are the number one private land owner in the world. I think they'd still be worth a mountain of money.
We have collectively lost our focus. We used to be a people that worked hard for our money, saved some, invested some and lived within our means. We, as a nation in general, have become a people wanting to get rich quick and quicker. Riches are quickly obtained and just as quickly lost. I have plenty of stories of people I know that fall into this category. A friend of a friend on the extreme side, was worth over 32 million 2 years ago and today is fighting just to stay in his home... he lost it all. Wealth on the other hand is acquired over time and will last more than a generation. It builds up so well that it will be passed down through generations. Real estate is a huge key to anyone's wealth if you investigate how they obtained it.
So how do we build wealth with real estate? Buy it right, meaning when it's low. Buy it with equity from the start. That means have a nice down payment or pay cash if you're able. Debt free gives you no tax deductions but a mighty amount of freedom and stressfree ownership. No money down is a get rich quick type of buying, but if you have no other choice and can afford the payments based on 70% of your income, go for it.
There is a very definite plan I've learned to acquire wealth, not riches. Learn to live on 70% of your income. That's right, Learn to live on 70% of your income. Learn to live on 70% of your income. There you have it, Amy's post said people need to see things 3 times to remember it. Learn to live on 70% of your income.
Give the 1st 10% to God, the 2nd 10% in savings, the 3rd 10% for investing and 70% to live on. It's very simple. If anyone follows this plan for 20-30 years, they will never have to worry about money... guaranteed.
Real estate has always been, and still is, the best investment you can make!
Real estate has always been, and still is, the best investment you can make!
Real estate has always been, and still is, the best investment you can make!
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