5 ideas to focus on now to have a great 2015 and to ensure a fabulous 1st quarter!
We need to get serious about…
- Health. Finances. Business. Family.
We can no longer let things just happen.
- We need to go out and make things happen in all those categories.
We need to get smart…don’t be casual in learning.
- Don’t be casual in learning scripts.
- Don’t be casual learning Dialogues… don’t be casual in going to preview homes every work day.
Always be asking yourself.. How can I improve ?
- Get going… you need to take massive action
- No matter how smart you are, you have to take action
Start small….
Every new discipline gets new disciplines and great things happen
- Get better
Personal development and personal growth…
Read more, hang out with richer, smarter people
You are the same today as you’ll be in five years except for two things: the books you read and the people you meet.
- Get stronger (build muscle)
Build the “I am getting the job done muscle.”
- Be dedicated to building….
The “I will keep going even if I don’t want to muscle.”
- Be dedicated to building the
“Do what I say I am going to do muscle.”
Draw a line on a paper….
2 questions I am always asked
How do I make a million dollars a year in this business?
And then, how do I invest the money to create passive income so I can stop working in this business if I want to?
So lets go over both of them now.
Most top producers work a database of past clients and sphere of influence.
The larger the database of people who know you by your first name, have talked to you and have received mail and email from you on a regular basis, the more people will do business with you or refer business to you over time.
Statistics show that if we work our database by e mailing weekly… snail mail monthly and call them every other week, that will yield us 10 % of the base in direct or indirect referrals.
Most people who go into the business probably know 100 people they can start cultivating right from the very start of their careers.
Now If you add 8 new people to this database a month, at the end of the year you would have added 100 new people.
Now at the end of the 1st year you would have 100 people in the database and you would do 10 deals from this group of people.
The next year you would add another 100 people to the database and you would do 20 deals from this group.
Carry this out for the next 10 years
Lets say..
This process goes on for 10 years adding 8 every month ensuring you 100 a year
Following up by phone, by mail and by e- mail so that at the end of 10 years you have 1000 people in the database. These would be 1000 “raving fans.” Your average commission earned is $10,000 per transaction so you will do 100 deals that year at $10,000 per deal = $1,000,000. Congratulations!
Create a plan for your real estate investing; the plan needs to be simple or you will not stick with it.
Like your real estate business plan, working this plan requires discipline, consistency and determination.
My plan is not sexy or a “get rich quick scheme,” but it works.
When fully implemented, this plan should be worth over $2,500,000 and your investments should be throwing off $15,000 -$20,000 monthly in passive income.
THE PLAN…
Buy one rental property per year for the next 15 years.
The key is to buy property in a decent area, in decent condition and at no more than fair market value… it is nice to buy something under market but it is not critical to the plan.
Buy property you can drive to within 1 hour.
Put 25% down on each property. (Money you earned from working our selling system)
Rent out the property. The rent must cover the mortgages, taxes, insurance, maintenance and management fees, if any.
Never spend any monthly profits, work to pay off the mortgage in 15 years. (You can take a 30 year amortized mortgage and pay the loan off early.)
THE RESULTS…
Let’s assume you are turning 40 years old this year and that you paid $250,000 for your first property and get $1,800 per month in rent.
Fast forward 15 years… when you turn 55, the first property you purchased will be paid off.
Assuming that the property did not appreciate at all, (in all likelihood it will appreciate but, for the sake of this discussion we will not make any such assumption,) you have a property with a true equity of $250,000 and all of the rent is going to you as you no longer have a mortgage .
When you turn 56, your second property will be paid off and you will have 2 houses free and clear (assuming no appreciation) you have $500,000 in true net equity and at least $3,600 a month coming in passive income.
Now let’s move on to your 57th birthday you have $750,000 in true net equity and $5,400 coming in each month as passive income
Fast forward to your 65th birthday when your 10th property gets paid off, without taking appreciation into account, you will have $2,500,000 in true equity and figuring rent still at $1,800 a month, $18,000 in passive income per month. And the best news is you still have 5 more properties that will be paid off soon.
Simple plan, relatively easy to execute. You can do it; remember, it’s baby steps consistently not giants steps occasionally that will help you to reach your goals.
Stop Sitting on the Sidelines, Get Started Now… TODAY MATTERS!
Home work assignment… Work on your why…We will talk more about it next week…in the meantime, get out there and take what’s yours.
