Have you ever wondered what it would be like to wake up in the morning with enough money coming in that you could do what you want that day? Would you consider yourself “rich”?
Here’s a definition of “Rich” that we like:
“Rich” is the ability to wake up in the morning with the physical health, knowledge, friends, financial freedom, and passion to do what you want that day”.
Financial freedom occurs when your annual investment income (your money at work) exceeds your annual lifestyle expenses. At this point you have “Wake-Up Money”. We have many clients who have achieved (or are on the path to achieving) this “Wake Up Money” lifestyle. Many of them have modest incomes but have become “rich” through their investment in local real estate – specifically homes and condos. One client in particular comes to mind who has never earned more than $30,000 in a year but currently has over $50,000 a year in Wake Up money from his real estate portfolio.
These clients understand that we have 3 choices in life:
- 1. You at work. Do you worry you will have to work for the rest of your life?
- 2. Your money at work. Do you dream of someday not having to work?
- 3. Charity. Do you worry about being dependent on others?
If you prefer choice #2 and want to get on the path to “Wake Up money”, this simple formula is devoted to showing you the way.
Peter Lynch, the great stock market guru and author or “Beating the Street” was once asked what he thought was the greatest investment. His answer: “a single family house”.
A simple investment Homes are one of the three basics of life: food, shelter and clothing. Homes and condos are simple investment that most people understand because they already own them. Ask yourself these questions: Do I own a home? Has it been a good investment? What would my net worth be like if I owned 10 of them? What would my lifestyle be like if they were all free and clear? What If?
If you purchased 10 houses 15 years ago (average price then was about $70,000 each) and financed them on 15 year loans, today your houses would be free and clear. Today, they are probably worth about $175,000 each and your portfolio of 10 houses is worth about $1,750,000. Your houses are probably earning you a net income of about $10,000 per month in “Wake Up Money”. Will Rogers said, “Just the name ‘real estate’ implies that all other forms of investment are illusory.”
In our continuation of this blog we will discuss The Three ‘Rules of Thumb’ help investors build wealth quickly.
Search homes now to consider investing at: www.AllDenverHomes.com. As always, call us with questions or thoughts at 303-814-3684. My very best to you and your family - Doug
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