Success vs. Significance
I’ve been writing to help buyers and sellers in our current market. Today I’m going to take a bit of a shift this month and share with you some great information I received at a recent real estate seminar called, Success Strategies to Own the Market with Steve Chader, co-author of a new book called, HOLD, HOW TO FIND, BUY, AND RENT HOUSES FOR WEALTH.
This seminar challenged the way we view our role in personal wealth building. Now I know at first you may be saying, is she talking about a get rich, marketing program. Not by a long shot. It’s not about getting rich quick; it’s a long-term real estate investment strategy. It’s about taking hold of your financial future. This book was written for a first or longtime investor who would like a manual per say on how to buy investment property and take the emotions out of it.
The HOT buttons for HOLD are learning how to find the right property at the right time for the right price for you. You will learn how to analyze your offer to make sure it makes sense for your investment criteria and educate you after your purchase to keep it as a cash flow property for your future investment. Best summed up, it is a road map to building your financial future. It has already taken the #1 slot on Amazon for Real Estate Investing.
We all work toward a future vision of financial freedom. It used to be, get a good job, work there until you retire and then get a pension. That picture has changed dramatically. Let me share with you a story of one of my clients’. Let’s call him Dusty. He is in his mid thirties and wants to plan a retirement program that doesn’t depend on a 401K or Social Security. Over half of Americans don’t trust either one of these for retirement. I believe the word Enron comes to mind. Dusty is one of those that has shifted their thinking and determined that Real Estate is more secure and reliable than the stock market. Good thinking Dusty! Needless to say, I gave him a copy of HOLD. “Ninety percent of all millionaires become so through owning real estate.” –Andrew Carnegie
Here are some startling facts I received during the seminar:
<!--[if !supportLists]-->· <!--[endif]-->In 2009 the average American’s net worth dropped 23%. Where do you think we are today?
<!--[if !supportLists]-->· <!--[endif]-->At age 65-only 6% will be financially independent, and 5 out of the 6 will attribute that to real estate investments.
<!--[if !supportLists]-->· <!--[endif]-->Only 15% will earn more than $50k during retirement.
<!--[if !supportLists]-->· <!--[endif]-->17.5% are delaying retirement at 65 because they are not financially able to retire.
<!--[if !supportLists]-->· <!--[endif]-->58% of the American population doesn’t know their retirement needs. They are just “hoping” to be able to retire.
<!--[if !supportLists]-->· <!--[endif]-->Men on average live 75 years and women 80 years.
So that begs the question, will you outlive your money?
For Dusty, he is well on his way to owning his third property and planning for more. He is putting into place long-term strategies that will secure a cash flow well throughout his retirement.
What does that have to do with Success and Significance? There is a difference between “Success” and “Significance”. Success is having enough money for your needs. Significance is having an income that would allow you to do for others. Others could be grandkids, community, friends, etc. What would be your reasons to invest in real estate - College, retirement, financial independence, travel, philanthropy? It’s important to have a purpose. Or at Keller Williams, we call it our Big Why!
Let’s think about Warren Buffett. He is a well known billionaire many times over. He has set aside some for his family and the rest he is giving away to help others. Another is Bill Gates, he is now in the business of giving away money to help others.
What would you do if you could create your own income level and not leave it up to someone else? I grew up hearing that investing in the stock market was the place to put your money. We have been programmed to think stocks are the way to go from the media talking about Wall Street. Guess who is buying real estate these days? Yep, Wall Street.
Real Estate is a basket full of commodities. You have land, concrete, wood, etc. All of these contribute to your investment. Ray Kroc built his fast food empire (McDonalds) on real estate as much as food sales.
We are in a perfect storm in the real estate market. We have low rates, low prices, and high rental demand. In Denver, for example, 52% of the population is home owners. That is lower than the national average of 64%, which spells a huge rental market opportunity. With the Gen. Y having their peak earning years in 2020-2025 there is an anticipation of another real estate boom.
I won’t get into the strategies and models to build your financial freedom. You will need the book to do that. However, I would be happy to meet with anyone for some great coffee and discussion on how you can use the HOLD strategy to create freedom and significance in your life. I believe a good realtor doesn’t just sell houses. They communicate with their clients in order to become a trusted advisor for ALL their real estate needs. This means much more than selling a house and moving on to the next. As Gary Keller said in The Millionaire Real Estate Investor: “Anyone can do it, not everyone will…will you?”
If you have a topic you would like me to consider, please email me. I am always interested in great ideas!
Sandy Jones – Broker Associate
Keller Williams Realty Success