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REAL ESTATE, STILL THE KEY TO BUILDING WEALTH

By
Industry Observer

This post was inspired by Amy Hahn's post:

http://activerain.com/blogsview/1481780/i-challenge-you-to-help-promote-a-positive-attitude-about-the-real-estate-market-

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!

Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Northwest Tennessee Realtor

Bob,

I still believe that is true today. Investing in real estate is an investment in our future.

Feb 09, 2010 03:16 AM
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

My father approached retirement  owning 26 units ! He sold them all , took back financing  and retired to Myrtle Beach collecting 21 mortgage payments per month !!!

Feb 10, 2010 05:00 AM
Bob & Bonnie Horning
Mount Joy, PA

Mike & Mike: You guys should have your own radio show! Seriously, that's what I'm talking about. I had a conversation with someone that in a talk years ago, I mentioned I wish I'd bought properties like he had back when they were much cheaper... he just told me, It looks like you're getting that chance again. ... the thing is, I can't imagine being retired. I watched my dad retire for about 6 months before he went nuts! He was very bitter about having to retire and started substitute teaching until they made him quit... I'll probably work until I drop.... but financial freedom is where it's at for sure.

Feb 10, 2010 05:19 AM
Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Northwest Tennessee Realtor

Bob,

I now own 80 units and believe in investing in our future!

Feb 11, 2010 02:24 AM
Bob & Bonnie Horning
Mount Joy, PA

Way to go Mike! And the coolest thing about owning 80 units is... if we have a major calamity and people are in desperate need of shelter... you will be able to offer shelter to a lot of people! Awesome.

Feb 11, 2010 02:34 AM