"We Rise By Lifting Others" - Robert Ingersoll
I was fortunate enough when I was 23 to meet an older Greek gentleman, Peter Charlay who owned a small real estate company in Albany NY. Peter was kind enough to show me how to create a secure future with real estate like he had done. He paid it forward.
I had just started in the mortgage business and was calling on Peter and his wife to develop a business relationship. After meeting a few times and getting to know each other, one day Peter took out a ledger book and opened it...he proceeded to flip the pages. There were about 15 properties listed on each page. I think he must have shown me 6 or 7 pages...he had a lot of properties.
Peter owned all of these properties. He said "You see...I own these properties. And you see these tenants listed here...they live in them and pay me rent. After I collect the rent and pay the mortgage and other expenses, I have money left over." Then he pointed out the best part..."Sandy", he said, "these tenants buy the property for me. I put down the down payment and then they pay off the mortgage for me with their rent. Then, in 15, 20 or 30 years the mortgage is paid off and I get to keep all of the rent every month. By renting from me they are buying the property for me!"
I was shocked. I had no idea that my monthly rent was buying a property for someone else. I was 23, just out of college and renting for the first time in my life, so I'm not sure how I should have known this but I am forever grateful that Peter showed me what most people never learn.
Thankfully, Peter encouraged me to buy a duplex. He showed me a few properties and wanted me to buy one that was close to his office. I was afraid...this seemed like a very big step. Today I know there really wasn't anything to be afraid of but when you buy a property for the first time all sorts of unfounded fears might start to fill your head. The roof will cave in, the plumbing will break, the tenants might be difficult...this is natural.
When we move outside of our comfort zone fear will arise in an attempt
to push us back into our comfort zone.
But guess what...not many people get ahead staying in their comfort zone. Also guess what...once you go outside of your comfort zone you develop a new comfort zone. I went from being uncomfortable with the idea of owning property and being a landlord to being very comfortable owning property and being a landlord. It took about 3 days to get comfortable with my new role. I went from extremely anxious signing all of the mortgage papers to very excited when I was handed the keys...all in the span of 40 minutes. Once I moved in, met the tenant and collect my first rent check I was home free. It was a cinch!
The best part of this story is (the year is 1986) I went from paying $350 a month in rent to someone else and now paid just $150 to own a property. My mortgage payment was $450 a month...the tenant paid me $300 so I only paid $150 and it cost me just $2350 to buy the duplex. Still better yet...a little over a year later I sold my duplex for $18,500 more than I paid for it. I took that money and bought my next property.
Today my mission is to help you go from renting to owning rental property...maybe for less than you pay in rent now.
It's my turn to show you what my friend Peter showed me. Owning property is the best way to secure your future. Owning rental property will give you cash when you are older. Every month the tenants will hand you a check. Once your mortgage is paid off you get to keep most of it. Your rents will keep up with inflation.
When I moved to Los Angeles in 1990 I paid $825 to rent a one bedroom apartment in Brentwood. Today a similar apartment goes for $1850. So that landlord is probably now taking home $16,000 more A MONTH on her 16 unit building. Rental income will keep up with inflation...your social security check will not (see Our Retirement Crisis). If you have savings you will need a lot of it to support yourself when you are retired and you still might run out of money. Rental property is like an ATM machine...it spits out cash every month, regardless of what happens to the value of the property (whether it goes up or down) you will collect rent.
Buying a small 2-4 unit property is easier and less expensive than you probably think and
I can help you. Securing your future is worth a chat...818-262-3250
Email me at firstname.lastname@example.org
Happy To Help!
Click Here For Inspiration: Being Successful & Peaceful by Les Kaye