I became aware of what I am about to share decades ago and went through the pros and cons of it all. However even without math the concept holds its own. It has been done, is being done and will continue because it makes sense and it appeals to a certain group of people with this mindset. Remember: There are many strategies to employ in Real Estate. Find yours and reap the rewards!
THE CONCEPT REVEALED
I know you have seen this: a mom and pop shop either retail or product oriented that allows for the owner to live above, below or in the back of the very operation. To the ones that practice this it is found money and a dream come true. It has so many pluses for the right people and it works without fail to make you money
LETS EXPLORE IT
The obvious first. When you combine a business with living quarters you automatically save money. Its just that simple. Then, you are able to devote quality and if necessary long hours to help your business grow. Furthermore, you make more profit because of less expense & easy longer hours. The cash adds up real nice
A friend of mine bought a 7-11 franchise and wanted it to succeed. This operation is open 24-7 which comes at a cost. His wife and him were to run it using the concept described here. They had living quarters in the back complete with kitchen. He would sleep while she worked and she would sleep while he worked
IF IT GOT BUSY
A buzzer or yell would produce extra help right away. Meanwhile, the store established itself, made money, ran efficiently and it wasn't long before they hired help and soon after that they both worked less hours but supervised instead. It took time but it all paid off. they bought a beautiful home and all the other perks too
NOTE: When he wanted to take some courses, I filled in for him and slept in the back during some nights
ATTORNEY & DOCTORS & CPA'S
Many professionals look for special zoning properties that are residential and commercial allowed. Either the doctor, cpa or lawyer buys it and uses the front offices and areas as the business part while they live in the back or rear. Time goes by, equity builds, money is made and when it comes time to sell...bonus bucks for this operation that has been proved
NOT UNCOMMON DURING HARD TIMES
I worked for a guy who went through two world wars and a depression who started out as a pharmacist working for others. He quickly assessed how he could get his own place but at a cost. First, to find a place where he could live and work and second he was one of the first to open 24 hours 7 days back then
THE RESULT FROM THIS THINKING?
He raised a family of three, ran the business with his wife, worked long hours and found out that people like a place that was open all the time plus he learned how to establish a customer service base. He enlarged the concept by adding a soda fountain, perfumes and other retail items making it a one-stop shop. Read-on...
HE MADE A FORTUNE QUICKLY
He then looked into how to invest his monies and had a friend introduce him to loaning money out secured by Real Estate. He not only made money on his money via interest paid on loan amounts but also foreclosed and took back property as part of it all. Fast forward: He owned Real Estate with income. He ended up being a multi-millionaire
INCOME PROPERTY PRINCIPAL
This one is lucrative if one doesn't mind the inconvenience at start-up. The back-end pays off richly. It goes like this: you buy a two or three or four-plex and you live in one and rent out the others. Yes, you lose some privacy, have to keep the property up and deal with tenants and maintenance. Years later this is what happens
STEADY INCOME GALORE
You reach the point where you can move into something else perhaps a home or a condo and rent your unit out and not only does the original property pay for itself but in time will pay for you other home too. After a 20-30 year period or less, you own it out right, and the income is substantial. You are retired at 50 or 60...
SACRIFICE PAYS OFF
All the examples listed in this post have one thing in common and that is sacrifice by the ones who took the risk. They went without, put up with inconveniences, put their dreams on hold, stayed consistent and in the end paid themselves richly for all they did and went through. The American dream is no myth. It's up to you