I was floored this weekend by a story I heard from infamous
professional boxing fixer, Charles Farrell, who told the disastrous story of
the time he didn’t fix a fight
involving former heavyweight champ Leon Spinks.
Leon Spinks, despite having
knocked out Muhammad Ali, won the Olympic gold medal in boxing, and made
several million dollars as a boxer, was in a steep professional decline.
He was broke and had been reduced to fighting
amateur boxers with bad CAT scans just to earn the right to fight in larger, more
prestigious matches that didn't even pay 1/10th of his former salary.
This particular fight was supposed to be fixed for him to win, but he
lost to an unknown boxing amateur and ended up dead broke.
The kicker? He was so poor that he had to ask Charles Farrell
for $5 just to get a bite to eat .
Here's the ugly truth that professional entertainers, celebrities, and even common folk alike seem to miss:
ASSETS put money IN
money OUT of your pocket
So what should a celebrity do with the money being thrown at
them? For God’s sake, don’t buy a helicopter!
What should regular investors, as well, do with money? Skip the boat or the new car, and first think about investing in real estate.
Take a look at this example:
If you invested in a simple multi-family property producing
$1500/month in passive rental income, you’d have roughly $18,000 after one
NOT exciting, right? Right. In fact, it’s dead boring.
Here’s where it gets interesting:
If you bought 2-3 of those a year, that would be about $54,000 in income over one year’s time.
Ok, a little nicer,
but still yawn-worthy.
Hang on, we’re headed somewhere.
Let’s imagine that you held these 3 properties and just added another 3 properties each year for the next 10 years.
Ready? This would be a whopping $1,620,000 per year in income as long as you held the properties!
Who needs to get punched in the face (or punch a dreaded time clock anymore) with that!?
The time factor is what allows the smart real estate
investor to win.
Compounding profits over time makes the difference between continuing to collect millions long after the end of a career, or barely getting by after a career peak.
If investors choose the right properties and hold them
over time, the returns become endless. This strategy creates cash flow, an incredibly strong financial base and a wealthy financial legacy for your future
So, time, patience and steady investing wins the game....or the match. :-)
Good Luck and Happy Investing!
Need help finding incredible investments? Give us a call. We
love helping investors find the best investments for their portfolio.
Patterson is a licensed Realtor in Michigan. She has been licensed since 2006 as a realtor and worked previously in residential and commercial mortgages since 2001. She has trained hundreds of mortgage bankers and enjoys sharing her knowledge with investors.
She currently holds
certifications as a Certified Investor Agent Specialist and Certified
Foreclosure/Short Sale Resource.
She has sold hundreds of
Investment Properties to Investors from all around the world and loves
them invest wisely for immediate cash-flow, as well as long-term gain.
Letitia's mission is to help make Real Estate millionaires!
Letitia N. Patterson
MI Elite Realty
Cell: 248 506-9426