Debbie
09-24-2006, 10:16 PM
This article caught my eye and thought I'd pass this along. This article was written by Lonnie Scruggs. This is what he wrote:
I often hear people say they can't get started because either they don't have any money, or they have very little money. Just this week, Eric, a young man in our local real estate club, said he only had $5,000 and wanted to know how he could get started with such a small amount. I told him that the amount doesn't matter; what matters is that he get started. And NOW!
Stop thinking like average people
My advice to Eric (and to you) is to stop thinking like the “average” person, unless you want to be average. The average person expects to work a job for 30 or 40 years, then retire on a “fixed income” that somebody else fixed. If all you want out of life is to be average, just do what average people do. But I hope you set your goals to be much more than average.
The only real difference between rich people and poor people, is the way they think. So start thinking in a different way; start seeing things in a different way; and start doing things in a different way. Start thinking like the entrepreneur that you were meant to be. Entrepreneurs doesn't wait for deals--they create deals.
Now, let's get started making big yields from small deals. And the first requirement is to get rid of all that “stinking thinking.” Forget that “good education,” “good job,” "good retirement” brainwashing the schools laid on you. That's what keeps average people average.
How to make 15% to 20% the simple way
Making 15% to 20% returns on your money is simple. And there are opportunities all around you if you will look for them, recognize them, and act on them. Every time you hear someone say that they need to buy something, but doesn't have the money, you should consider that a potential money making opportunity.
There are always people who need to buy something, but doesn't have the money. And because of their lack of financial discipline, they never will. But they can make monthly payments with no problem. So focus on these type people and get in the financing business. That's where the real money is. And it's such a simple and easy way to create passive cash flow.
Some of my best customers are former tenants and people who bought mobile homes from me. Even after they pay off the home, many have called later wanting to borrow anywhere from $1,000 to $5,000. And none of them have ever complained about paying 18%, or more, in interest. Most of them doesn't even ask what the interest rate is. Also, most of them want the payment to be the same as it was on the mobile home.
$308 per month for life
Within the last two months, I've made five such loans. One was for $4,000 to a woman who bought a mobile home from me eight years ago. Her payment on the home was, and still is, $308 monthly. For the past eight years, she has never missed a month paying me $308. And in all probability, she will continue paying me $308 every month until one of us dies.
Every time she gets close to paying the loan off, she calls wanting to borrow more money. So I just add the remaining balance to the new loan and start over. And since she's one of my most reliable and “preferred” customers, she only pays 18% interest.
Last week, a couple who bought a mobile home about five years ago, wanted to borrow $1,800. They volunteered to tell me they could pay $200 monthly for 10 months. Run those figures and see what my yield will be on that little loan.
I'm still doing business with a couple who rented an apartment from me over fourteen years ago. How's that for steady cash flow? Every time they want to buy another car or pickup truck, they call me for the money. I've lost count of how many we've done.
Last month, I made a $1,000 loan to another one of my mobile home buyers who needed to have some dental work done. This week one of my past customers wanted to borrow money to get her mama out of jail. Hey, I swear, I'm not making this stuff up. Folks, this is an amazing, amusing, and profitable business.
These are just a few of the many actual deals I've done. And my yield/return on all of them was at least 18%. Most of them were much better.
I often hear people say they can't get started because either they don't have any money, or they have very little money. Just this week, Eric, a young man in our local real estate club, said he only had $5,000 and wanted to know how he could get started with such a small amount. I told him that the amount doesn't matter; what matters is that he get started. And NOW!
Stop thinking like average people
My advice to Eric (and to you) is to stop thinking like the “average” person, unless you want to be average. The average person expects to work a job for 30 or 40 years, then retire on a “fixed income” that somebody else fixed. If all you want out of life is to be average, just do what average people do. But I hope you set your goals to be much more than average.
The only real difference between rich people and poor people, is the way they think. So start thinking in a different way; start seeing things in a different way; and start doing things in a different way. Start thinking like the entrepreneur that you were meant to be. Entrepreneurs doesn't wait for deals--they create deals.
Now, let's get started making big yields from small deals. And the first requirement is to get rid of all that “stinking thinking.” Forget that “good education,” “good job,” "good retirement” brainwashing the schools laid on you. That's what keeps average people average.
How to make 15% to 20% the simple way
Making 15% to 20% returns on your money is simple. And there are opportunities all around you if you will look for them, recognize them, and act on them. Every time you hear someone say that they need to buy something, but doesn't have the money, you should consider that a potential money making opportunity.
There are always people who need to buy something, but doesn't have the money. And because of their lack of financial discipline, they never will. But they can make monthly payments with no problem. So focus on these type people and get in the financing business. That's where the real money is. And it's such a simple and easy way to create passive cash flow.
Some of my best customers are former tenants and people who bought mobile homes from me. Even after they pay off the home, many have called later wanting to borrow anywhere from $1,000 to $5,000. And none of them have ever complained about paying 18%, or more, in interest. Most of them doesn't even ask what the interest rate is. Also, most of them want the payment to be the same as it was on the mobile home.
$308 per month for life
Within the last two months, I've made five such loans. One was for $4,000 to a woman who bought a mobile home from me eight years ago. Her payment on the home was, and still is, $308 monthly. For the past eight years, she has never missed a month paying me $308. And in all probability, she will continue paying me $308 every month until one of us dies.
Every time she gets close to paying the loan off, she calls wanting to borrow more money. So I just add the remaining balance to the new loan and start over. And since she's one of my most reliable and “preferred” customers, she only pays 18% interest.
Last week, a couple who bought a mobile home about five years ago, wanted to borrow $1,800. They volunteered to tell me they could pay $200 monthly for 10 months. Run those figures and see what my yield will be on that little loan.
I'm still doing business with a couple who rented an apartment from me over fourteen years ago. How's that for steady cash flow? Every time they want to buy another car or pickup truck, they call me for the money. I've lost count of how many we've done.
Last month, I made a $1,000 loan to another one of my mobile home buyers who needed to have some dental work done. This week one of my past customers wanted to borrow money to get her mama out of jail. Hey, I swear, I'm not making this stuff up. Folks, this is an amazing, amusing, and profitable business.
These are just a few of the many actual deals I've done. And my yield/return on all of them was at least 18%. Most of them were much better.