Buying Investment Property Made Me A Millionaire

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Buying Investment Property

I first got interested in buying investment property from watching those late night infomercials with Carleton Sheets and his “No Money Down” course.

investment propertySome of you may know what I am talking about if you watch TV late at night or real early in the morning. Anyway, the more I watched his presentation the more it began to make sense to me.

I watched Carleton’s No Down Payment infomercial for about  2 weeks before I finally decided to order his program to see what it was all about. When the package came I read every chapter, listed to the audio CDs and watched all the video tapes. I was pumped!

I didn’t stop with Carleton’s course. I began to research anything and everything about dealing with buying investment property from the internet. I ordered books online and checked out books from the library also.

Eventually I bought my first house and my life as a real estate investor had begun…

In this article I will discuss a few benefits I received from buying investment property and how it made me a millionaire!

MyHouse

This was my first house and I lived in it for 4 years! It was a foreclosure and I bought it for $20k less than its market value. Completely paid it off in 7 years. When I moved I made it an investment property and rented it out! CLICK HERE to see the program I used to pay off my 30 year mortgage in only 7 years!

quoteYou make money in real estate when you BUY not when you SELL

Buy Investment Property And Create A Passive Income Stream

Maybe you have heard of the term passive income but don’t know exactly what it is.

A Passive Income stream is something that is developed after having to work hard at once. And once you complete that hard work (task), that’s it. Your work is done! The money will keep flowing into your bank accounts for the rest of your life … whether you work, sleep, travel the world … or even die.

Say for Example – Books, Music & Movie Royalties. Royalties are the best examples of passive Income. Robert Kiyosaki, the New York Times Bestselling author of the Rich Dad Series of Books, worked hard only once to write a great book. Once the book is created, his job is over. He will make money even while he sleeps … without any further efforts. This is due to the that people will never stop buying his books.

Other Examples of Passive Income are:

investment property

Rental Income
– Interest Income
– Dividend Income
– Online Income (Blogs, Websites, Affiliates Marketing … etc …)
– Royalties
– Network Marketing
– Business Income … etc …

In all the above cases, you have to work hard only once in order to develop that passive income stream. Once you complete your hard work, your job is over.

So after you buy your investment property your goal should be to always keep it rented. By keeping a tenant in the property you will collect a monthly rental income. Use your tenant’s rental income to make your mortgage payment. There is a little more to it but using this simple strategy your tenant will basically buy your house for you! Isn’t that wonderful? This is what we call using OPM (Other Peoples Money) to build your real estate empire.

Now once your mortgage is completely paid off and you own the home Free and Clear you will be able to pocket the majority of the income (minus taxes, insurance and repairs).

Think about it this way. What if you had about 10 houses that were completely paid for (mortgage free) and each house had a monthly rental income of $1200? That would be $12, 000 a month or $240,000 a year that you would collect for as long as the houses are rented. Would you still be working your same old job you are now?

>>CLICK HERE TO PAY OFF YOUR MORTGAGE IN RECORD TIME<<

Buy Investment Property And Increase Your Net Worth

What is your net worth and why is net worth important?

Your net worth is the total of your assets (property and possessions that you own) minus the total of your liabilities (money that you owe).

networth

Your net worth is critical information. Knowing your net worth is the first step in organizing your personal finances and building wealth.  But even more important as a real estate investor you need to understand how banks view your net worth. Keep detailed records of your assets on your balance sheet (excel document).

When a bank is reviewing your business documents, they’ll want to see that you’re paying careful attention to all of the relevant factors. At some point you may have to borrow money from the bank. But before you receive any money from a bank, the lender will scrutinize both you and your business to see if you’re a viable borrower. So if you pass a credit check and you operate a healthy business, most banks will also require an additional, and tangible, guarantee that their loan will be repaid: collateral.

You may not have a high paying job or a lot of cash in the bank but if you have a lot of assets the bank will definitely consider that! Having multiple income producing investment property on my books has allowed me to receive large personal and business loans I know I would NOT have otherwise received from the bank!

 Buy Investment Property And Build Wealth

investment property

Buying investment property is the rich man’s secret to building true wealth.  Real estate normally appreciates (goes up in value) over time unlike a new car that depreciates as soon as you drive it off of the car lot! Let’s go back to the scenario I described earlier.

If you have 10 houses that were completely paid for (mortgage free) and each house appraised for $120,000. If you were able to sell each house for $100,000 you would still pocket a cool one million dollars! Not bad, especially since you started off with a handful of lint in your pocket.

Let’s face it, most people are not going to build wealth in their lives based on their salary only. Making a lot of money doesn’t make you wealthy! Unfortunately when you die so does your income UNLESS you have created a PASSIVE INCOME stream! Are you going to leave your family a bunch of debt (liabilities) or wealth (assets)?

Yes, Investment Property  Made Me A Millionaire

Using the techniques I describe above I became a millionaire on paper. That means although I don’t have a million dollars in the bank if I were to sell all my investment property at the current market value I would easily surpass the million dollar mark.

Buy Your First Investment Property Today

If you have not already done so, try starting with buying your own home first!

charles lenoir

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