SOLVING OTHER PEOPLE’S PROBLEMS: REAL ESTATE IS YOUR MOST PROFITABLE PRODUCT - Rapid Riches - Cash in a Flash: Fast Money in Slow Times - Mark Victor Hansen, Robert G. Allen

Cash in a Flash: Fast Money in Slow Times - Mark Victor Hansen, Robert G. Allen (2009)

Part IV. Rapid Riches

Chapter 16. SOLVING OTHER PEOPLE'S PROBLEMS: REAL ESTATE IS YOUR MOST PROFITABLE PRODUCT

Since there are almost seven billion people on planet Earth, there are a potential seven billion customers. And new customers are being born every day. The possibilities are limitless.

There is an Ashleigh Brilliant cartoon that explains this perfectly. The caption reads, “I’m not greedy: I’d be quite satisfied with just one dollar from every person in the country.”

At $1 profit, to earn $100,000, you’d need to sell 100,000 “widgets” this year. At $10 profit, you’d need to sell 10,000 widgets. At $100 profit, you’d only need to sell 1,000 widgets. Making $100,000 a year in the entrepreneurial world, although not easy, is certainly doable. It could be as simple as doing one great real estate deal. Or marketing a $5,000 yearly coaching program to twenty people. We’ve each earned $100,000 in a single hour! Of course, it took us thirty years to figure out how to do it.

The first question to ask yourself is “How can I create some product, service, idea, or experience that generates a consistent profit?”

Let’s talk about products. How many widgets do you need to sell to earn $100,000?

How about one?

The simplest, easiest way to earn profit is by focusing on the primary product—real estate.

OWN YOUR DREAM HOME FREE AND CLEAR

Your primary product is real estate. Regardless of what the media says about declining real estate values, real estate has always been—and, in our opinion, will always be—the fastest way to cash for those inclined to invest wisely. Everyone still needs shelter. You might want a motorcycle or a new piece of jewelry, but if you don’t make your house or rent payment that month, you’re on the street. It’s the number one priority in a household budget, just before food. There are fortunes to be made by buying, selling, and renting the “stuff”of houses, apartment buildings, commercial buildings, land, et cetera.

Real estate is the best product because people live in houses and they understand them. It’s low-hanging fruit for them. They already get it. They don’t have to learn how to get their product manufactured in China. Or come up with a legally defensible patent for their widget. They already understand houses, so real estate is a natural for them. Shelter is also one of the most basic of human needs. When you match up your most basic human need with what you already know, it’s obvious that real estate should be one of your first products. Muhammad Yunus talks about teaching poor women to earn money from their primary skills. In North America, real estate is a primary skill. The secondary skill would be to market your product or someone else’s product. Let’s start with real estate.

POSITIVE PROFITS FROM NEGATIVE HEADLINES

There are huge profits in solving people’s real estate problems. The headlines are shouting these profit-generating words: foreclosures, delinquencies, defaults, bankruptcies, loan modifications, and repossessions. Don’t let these words scare you away! In recent times, the value of real estate has been wildly fluctuating—from doubling in value in seven years to losing almost 20 percent of its value in less than a year. You might be nervous about the future of real estate. Not to worry. Real estate is not like the stock market, where a company stock can lose 100 percent of its value. Real estate never goes to zero. The land has value. The wood and roofing and paint and electrical wires—the stuff that makes the house—all costs money. Fortunes are made by finding and creating real estate value. No matter what the market is doing—rising or falling—you’ll always be able to profit by buying right and selling right.

Real estate is the primary product because it’s real! Buying and selling real property is a skill that everyone should learn. Why? You’ll most likely buy and sell between three and ten houses in your lifetime. If you invest wisely, you could end up with a free and clear home of your dreams within ten years. How? By buying right and selling right at least every three years.

Suppose you buy your next home 20 percent below the market (today) and hang on to it long enough so that it increases in value within three years by an extra 10 percent. Then, just before you sell it, you improve it (fix it up) so that someone would be enticed to buy it at 10 percent above the market at that time. Here’s what could happen in three years if we’re talking about a $250,000 home.

Value

$250,000

Purchase price 20 percent below market

$200,000

Hold on to it for three years so it increases 10 percent

$275,000

Fix it up to sell for 10 percent above market

$300,000

Your purchase price is $200,000. Your sales price is $300,000. Your equity is now $100,000, Do this three more times ($100,000 profit minimum per flip) and within ten years you’ll own your home free and clear. It might not be your dream home, but what a dream to own your home without monthly payments.

If you want to own a dream home that’s twice as nice, just buy two bargain homes per year. If you buy, hold, fix up, and flip ten homes in ten years, you could move into a million-dollar home in ten years free and clear … or have a million dollars net worth. Just imagine, you’re just ten deals away from that kind of freedom.

Real estate investing knowledge and skill are essential. Everybody should learn it—if you want to improve the roof over your head.

All around you there are real estate deals. You drive by millions of dollars of hidden profit every time you commute to and from a job you may not like. The profit from just one great real estate deal could exceed what you struggle to earn in an entire year at your job.

Why work on someone’s mother ship when you can hit the mother lode in real estate? The last time we had a glut of foreclosures like we’ve been experiencing now was in the late 1980s. It was called the savings and loan crisis. Do you remember those times? Greedy bankers lent billions to developers with cheap money. These developers built apartment complexes, commercial buildings, and homes far in excess of the existing demand. The developers defaulted on the loans, the savings and loans were foreclosed by the government, and Uncle Sam became the owner of billions of dollars’ worth of vacant property. They formed the Resolution Trust Corporation and liquidated all of it. Those who bought made billions in profits.

The same thing happened in the first five years of the new millennium. Interest rates were slashed and demand soared for residential real estate. Prices doubled in five years. Everyone thought that prices would never stop climbing. But the bubble burst. Prices began to drop. So the pendulum has swung back the other way too far.

Prices will stabilize. The supply will get absorbed. Maybe it will take another five years. Then prices will slowly continue to rise. Just like they have for the last hundred years. Real estate will continue to be the safest, surest, fastest, easiest way for an ordinary person to create a fortune. Someone will pick up this book ten years from now and read these words. They will seem like a prophecy.

The reason we can be so confident is that we know three obvious facts:

1. America is a magnet for people all over the world. As bad as the newspapers make it sound, the rest of the world wants to move here. We have to build fences to keep them out. The population projections with new births and immigration will grow from our current 300 million citizens to over 400 million citizens by 2040. Where will they put those extra hundred million people? In your rental houses and apartment buildings.

2. Inflation will continue to be with us for as long as you live. China and India are right where America was twenty-five years ago. They are on a growth spurt that will consume basic commodities and force prices upward. The haven for devaluating currency is hard assets. Real estate is one of the hardest of assets. It will continue to increase in value simply because hard costs will increase along with continuing inflation. On top of this, we have massive government deficit spending. Our brilliant politicians are overprinting and overspending money by the trillion. Do you know how much a trillion is? It’s like spending a million dollars a day for 2,700 years! One of these days, inflation will come roaring back. Hard assets are where you’ll want to be.

3. You don’t have to have increasing prices in real estate to make immediate money. You can always find a bargain, no matter what the current market prices are. You can always flip that bargain to someone at a below-market price and earn a profit. Always. That’s what entrepreneurs do—they find value and they flip it to someone else for a profit. That will never change when it comes to real estate. Never.

Here’s a quick story to highlight how entrepreneurs find seams of value where people have never thought to look. A student attended one of our real estate seminars. It was taught in San Francisco. Prices are always high in the immediate Bay Area.

He tried to find some bargains and found lots of competition. He was discouraged. He had a bright idea. He checked the real estate prices for properties in Reno, Nevada—a few hours’ drive away in the neighboring state. Prices there are dramatically lower. Hmmmm. That’s interesting. He found an eight-unit apartment building listed at $229,000. He made an offer to purchase it, with a minimum of earnest money, and locked in the price at $200,000. Now the property was legally his… until he closed on it. He then ran an ad in the San Francisco newspapers: eight-unit apartment building for $215,000.

This price appeared so cheap for a Bay Area property that his phone rang off the hook. Fifty calls later, he canceled the ad. He told the interested parties that his property was in a neighboring state. One person drove to look at it and made him a full-price offer.

Here are the interesting facts. The student had never physically seen the property himself. He found the property on the Internet and made an offer sight unseen, subject to his inspection. He never actually owned the property. He only had a signed offer. He “flipped” the contract to the new buyer for $15,000 cash.

All of this happened in two weeks, from start to finish.

Bargains are everywhere. They just take at least ninety days of persistent shopping to uncover them. Just buy one or two excellent real estate bargains each year for the next ten years and you’ll be set for life. If you don’t have any money to get started, check on our website, www.cashinaflashthebook.com/nothingdowntechniques, for a special report that will teach you the fifty nothing-down techniques. In addition, we’ll include a powerful special report on the ten fastest ways to earn cash from real estate investments, especially in today’s real estate market. Don’t miss it! If you’re still skeptical that profits can be earned during these slow times, go to www.millionairehalloffame.comand you can read more than seven thousand stories of our students who have earned over a billion dollars in profit.

Go out there and find some value and create your own success story.

PRODUCTS TWO AND THREE

So real estate is the primary product. It should be number one on your list of products to buy and sell. What are numbers two and three on the list?

Number two should consist of marketing products that someone else has perfected.

Number three should be marketing products that you create.

Real estate first. Others’ products second. Your own products last. One, two, three, in that order.

That seems strange advice. Shouldn’t we be marketing the products that we create from our purpose path? What if we don’t like real estate? What if marketing someone else’s product doesn’t appeal to us? What if we have a strong urge to start something from scratch?

Each person’s path to prodigious profit is different. Follow your heart. Yet the safest path in the risky world of business is to apprentice in the safest fields. Real estate is just flat out the fastest and safest way to chunks of cash and equity. Nothing touches it. Start one thousand people on a money marathon and more real estate millionaires will cross the finish line than all the other methods combined. Real estate wins. Every time. Hands down.

The second least risky way to earn profit is to hook onto some else’s product as an independent marketer. Find a company that has a product that you love and that you believe in, and learn how to market it. The advantage is that the company has done all of the research, the production, the warehousing, and the creation of websites and training materials. All you need to do is to sell what they’ve created. You become a wholesaler for their existing product. You can be in business in minutes instead of months. You can learn almost immediately if anyone wants it… and if you have the desire and belief to convince yourself and others to buy it. If you can’t sell someone else’s product, what makes you think you could sell your own? Hooking up with someone else’s company gets you in the game immediately and teaches you how to hone your selling skills. Like it or not, selling skills are critical. Learn how to sell. Fast.

How can you find a product to market? Go online and you’ll find literally thousands of affiliate programs that will pay you affiliate commissions for every product you market online. Some of the affiliate programs will also pay you several levels of commissions. You can earn commissions if someone you enroll sells products. Therefore, you earn income off the efforts of others. It’s a well-respected model online. If it works for Amazon.com, why can’t it work for you? Since the world of the Internet is constantly changing, go to the website www.cashinaflashthebook.com/onlineprofits for the hottest new ways to profit online.

In the offline world, there are hundreds of respectable network marketing companies selling dozens of different kinds of products—from nutrition to skin care, household products, and success information. Check out several. Go to their marketing events. Find products that you believe in and can become passionate about. Network marketing is the elementary school of entrepreneurship. Once you’ve built a successful affiliate or networking business, you might be inspired to graduate to the university level of business.

The bachelor’s, master’s, and doctorate levels of business are to start your own company marketing your own PSIs. Maybe you have a brilliant widget that you’ve been inspired to bring to the world. Follow your heart. The marketing experience you’ve acquired in your successful networking business will save you years of mistakes.

THE SHOCKING SECRET TO YOUR SUCCESS

Just a final word about how you’ll find your path to prosperity in the product world. We can teach you the fundamental ABCs of getting started. But sooner or later you’ll discover something shocking.

There are thousands of how-to books, including this one. But there is only one how-to book that will actually work for you—the book you write for yourself. Why? Because, the how-to is unique for every single person. You have to create your own unique how-to method from the fundamental principles you read in books like this.

You can’t learn all of it in a book. Ask successful people how they did it and they’ll tell you a totally unique story. They followed some basics and then they had an aha moment that opened up a special method that seemed to work just for them. They might have tried a dozen different methods, and then something clicked.

When we talk about the Inner Winner, this is what we’re referring to. Each person seems to have his or her own personal revelation that opens up a unique path. That’s what happened for both of us. It’s hard to describe. It’s very spiritual.

Don’t get too hung up on the how-to. Just follow your hunches… those whispers… those special insights.

It’s our belief that there are invisible forces that guide us. They want you to win. They want you to prosper. They want you to tap into your own unique vein of gold. They want you to bless the world through your abundant giving.

Heaven knows, the world desperately needs it.