Monday, February 12, 2007

Modern Day Millionaire Club

Being a Millionaire today is not exactly what it once was, but having $10 mil stashed away can probably get you what you want. But would being a multi-millionaire change your life? Would you work less, spend more time with your family, go for longer walks, play with your kids, have more fun? If you did all this would you still accomplish as much?

Yes. I think you could, even though that didn't used to be the case. I don't know a lot of people that got rich by working their fingers to the bone. I do know a lot of them that got rich by being sharp, smart - by buying real estate, owning ingenious companies, playing with stocks and bonds. Contrary to what you father told you, working hard is not the key to getting rich.

We all know it's very possible to become a millionaire - hell, even a billionaire if you really play your cards right. Others have done it, why not you?

Why am I writing on such a subject today? Back in 1999, my wife and I bought a duplex for $286k here in Seattle. That same duplex is on the market today for $565k. So in a matter of 8 years, that property has doubled in value. So that pour soul, who would have owned that house, would have doubled their money. But would they have put in the whole $286k? No, probably not. We have only paid $56k of that mortgage. So does that mean we received a 500% return on our investment? Well, pretty close to it.

Don't get me wrong, investing in real estate is not easy. It never has been. It's a myth that you can throw some money into a property and it will just spit profits back at you. Real estate transactions are complicated and can be difficult for the average homeowner to understand. If you really wanted to get rich, and get rich quick, I would tell you to learn all you can about real estate, its market, and its history.

Yes, folks, the American Dream is alive and well. With a new 21st century twist. Notice, however, I did not say the traditional American Dream of owning a home is the way to get rich quick. Don't get home ownership and real estate prowess confused, for they are whole different animals.

But they are both animals that will gladly curl up at your feet, if you know how to pet them right.



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