Wealth Creation is a skill that many people attempt to master. Many people attempt to create wealth through real estate investing, but fail to do so because they lack the knowledge needed to become successful.
A very simple wealth creation strategy that you can use to become wealthy is to become a landlord. Becoming a landlord is the classic wealth creation model of real estate investing. Let's assume that you acquire ten properties worth $100,000 each and after renting them out consistently for ten years, they are now worth $180,000 each. Not taking into account the income that you received from these properties over the last 10 years, you would have increased your wealth by $800,000 just off of the appreciation alone. That is why becoming a landlord is a powerful wealth creation strategy.
The concept is simple in theory, but takes good management skills in order to be successful long term. If you can purchase numerous houses, rent them out consistently, and manage them well, then you will be well on your way to creating wealth and financial freedom for yourself. Unfortunately, the reality is that the beginning years can be tough on beginning landlords because generally the expenses on your rental properties will be high and the income will be marginal. Over the years as the income increases the profit generated from these properties can be significant.
Management is really the key to a landlord's success and wealth creation. If you plan to follow this business model and hold these rental properties for the long term, then you must know how to effectively manage these properties, or you must hire a property manager who can properly manage them.
The image of being a landlord strikes fear into the hearts of many aspiring real estate investors. All they can picture are the late night calls from tenants claiming that the toilet is broken. However, this is rarely the case, and for the savvy landlord who hires a property management firm, this is never a concern. The reality is that a well managed property can provide you with a large passive income. You might start off investing in single family houses, but eventually you will want to upgrade to apartment investments in order to maximize your returns. If you are committed to taking the plunge as a landlord, and acquire good properties and manage them will, you can look forward to creating wealth that most people only dream about.
The goal of wealth creation is truly up to you. Study your market and the rental rates in your area and try to find a good property manager. These simple steps will put you on the right path to wealth creation by becoming a landlord. Hopefully, that this article has been of help to you. If you have questions, please feel free to leave a comment in the section below.
By: Perry Pearson, ArticleBase
Traits of Highly Successful People
We have all read about people who are successful briefly. They win a gold medal, make a fortune, or star in one great movie… and then disappear. Or, there are those like Marilyn Monroe and Howard Hughes who achieve extraordinary success, at the cost of their own lives. These examples do not inspire us!
Our focus and fascination is with people who seem to do well in many areas of life, and do it over and over through a lifetime. In entertainment, think of Tom Cruise and Angelina Jolie. In business, think of Bill Gates and Warren Buffett (multi-billionaires), and a local grocery store owner who is famous for the money he’s give to children’s charities.
As a Naval Officer, husband, businessman, politician and now as a mediator and philanthropist on the world stage, Jimmy Carter has had a remarkable life. We all know examples of people who go from one success to another.
These are the people who inspire me! I’ve studied them, and I’ve noticed they have the following traits in common:
- They work hard! Yes, they play hard, too! They get up early, they rarely complain, they expect performance from others, but they expect extraordinary performance from themselves. Repeated, high-level success starts with a recognition that hard work pays off.
- They are incredibly curious and eager to learn. They study, ask questions and read – constantly! An interesting point, however: While most of them did well in school, the difference is that they apply or take advantage of what they learn. Repeated success is not about memorizing facts, it’s about being able to take information and create, build, or apply it in new and important ways. Successful people want to learn everything about everything!
- They network. They know lots of people, and they know lots of different kinds of people. They listen to friends, neighbors, co-workers and bartenders. They don’t have to be "the life of the party", in fact many are quiet, even shy, but they value people and they value relationships. Successful people have a rolodex full of people who value their friendship and return their calls.
- They work on themselves and never quit! While the "over-night wonders" become arrogant and quickly disappear, really successful people work on their personality, their leadership skills, management skills, and every other detail of life. When a relationship or business deal goes sour, they assume they can learn from it and they expect to do better next time. Successful people don’t tolerate flaws; they fix them!
- They are extraordinarily creative. They go around asking, "Why not?" They see new combinations, new possibilities, new opportunities and challenges where others see problems or limitations. They wake up in the middle of the night yelling, "I’ve got it!" They ask for advice, try things out, consult experts and amateurs, always looking for a better, faster, cheaper solution. Successful people create stuff!
- They are self-reliant and take responsibility. Incredibly successful people don’t worry about blame, and they don’t waste time complaining. They make decisions and move on. Sometimes they are criticized for taking this to extremes – Jimmy Carter carried his own briefcase and a President "shouldn’t" do that! Extremely successful people take the initiative and accept the responsibilities of success.
- They are usually relaxed and keep their perspective. Even in times of stress or turmoil, highly successful people keep their balance, they know the value of timing, humor, and patience. They rarely panic or make decisions on impulse. Unusually successful people breath easily, ask the right questions, and make sound decisions, even in a crisis.
- Extremely successful people live in the present moment. They know that "Now" is the only time they can control. They have a "gift" for looking people in the eye, listening to what is being said, enjoying a meal or fine wine, music or playing with a child. They never seem rushed, and they get a lot done! They take full advantage of each day. Successful people don’t waste time, they use it!
- They "look over the horizon" to see the future. They observe trends, notice changes, see shifts, and hear the nuances that others miss. A basketball player wearing Nikes is trivial, the neighbor kid wearing them is interesting, your own teenager demanding them is an investment opportunity! Extremely successful people live in the present, with one eye on the future!
- Repeatedly successful people respond instantly! When an investment isn’t working out, they sell. When they see an opportunity, they make the call. If an important relationship is cooling down, they take time to renew it. When technology or a new competitor or a change in the economic situation requires an adjustment, they are the first and quickest to respond.
Source: Resources for Success! - Dr.Philip E. Humbert
