As you venture out into the real estate market, one of the key lessons that hopefully you are grasping is that it takes capital to build wealth. One cannot hope to become a millionaire overnight. To get to a place of being “wealthy” takes time, diligence and a lot of careful building of your real estate business.
The model you are building for your real estate investing business includes the following;
1. Cash now… from real estate Probate Realtor Oro Valley investments (wholesales, Trusts, etc.), from relationship marketing, primarily using the internet right now, but also using direct mail and other venues to generate cash now.
2. Cash flow… from real estate; creating streams of passive and residual income flowing into your business monthly, from additional income streams, not directly real estate, that you create to compliment your real estate investing business.
3. Cash Later… from selling your real estate.
4. Profits later… from selling your real estate after it has appreciated in value over time, from systems, up-sells, cross-sells, side-sells, affiliate commissions, licensing, selling off all or part of your business for profit, creating new businesses from your profits, etc.
5. Wealth Accumulation All Along the Way…from your real estate, your other income streams both online and offline, and from growing your net worth and cash accumulation through smart investment in businesses, real estate, collaboration, partnerships, relationships, people, time, etc.
6. Time and Lifestyle FREEDOM… from day one this is your goal, and even in this economy it can be achieved with real estate.
Income Generation and Wealth Accumulation
The comparison and understanding of these two contrasting and yet complimentary concepts is very important for you to be able to move your business forward responsibly.
Yes it’s possible to earn large profits in real estate which is why so many people want to do this. However, only the smart survive in this highly profitable market.
If you want to create wealth in real estate… you need to think like rich people think. You need to focus on building your income streams, passive and residual, and you will want to invest where your properties will go up in value, which means you will make a lot more profit when you are ready to sell. You will want to create a business that has value in and of itself and a dozen other highly important key elements, profit centers, and priority long term goals.
Here is the thing; you can create paychecks… very big paychecks… from real estate. However, to really build wealth in real estate involves not just on getting that next paycheck. Wealth generation involves creating passive, residual, and cash flowing income streams that bring money into your business so that you can re-invest it into yourself. That means locating properties with long term investment value, not just a quick sale.
When you look at a property don’t just think about right now, think about in terms of ten years from now and what it could be worth in a better market. You can also create a business that you can sell someday or pass on to your children.
Whatever you do however, don’t put yourself into a position where you are servant to the business. Let real estate work for you and you will reap the rewards without sacrificing your well-being. That’s the difference – you will be building wealth rather than just working for an income.