Several real-life millionaires are profiled in the book, ??The Millionaire Real Estate Investor,?? by Gary Keller. Collectively they reveal several ways to become a millionaire by investing in real estate although each of them took a different path.
That alone is reason enough to read the book. For those of us who are serious about real estate investing, is there anyone better to learn from than someone who has actually achieved the goal and provided a roadmap? The simple answer is that there is no one better to learn from. You model their attitudes and beliefs and follow their proven plan and ultimately you??ll achieve the same results. It??s as simple as that.
One of the plans from the book stood out from the rest so that??s the one I??ll focus on in this article. But first you need to decide what you want to create with real estate: income or wealth? They are not the same thing.
Basically income is what you earn and wealth is what you keep. It??s not uncommon for six-figure income earners to be almost bankrupt because they spend, spend, spend. On the other hand, it??s not difficult to find others who have become millionaires on meager wages because they were smart enough to invest all they could and watch it grow.
OK so what??s the plan? This particular investor and his wife began by paying the mortgage on their personal residence. Each month, they paid the regular mortgage payment plus whatever they could afford to pay extra. I believe it took or years. Considering the average mortgage is 30 years, that??s excellent.
Then they bought an investment property and put a renter in it. Since their own house was paid off, they had more cash flow to pay off their first investment home. The rent plus the cash they had been paying towards their own mortgage went to pay off this mortgage. This house was paid off in or years.
They simply repeated this process over and over again. However, each time they bought another investment house, they had more cash flow to pay off the mortgage and consequently they owned the house free & clear more quickly with each property. For example, on the third house, they had not only the money that had been going to pay off the house they lived in, but the rent from the second house (since it was owned free & clear) plus the rental income from the third house itself. They owned the third house free & clear in less than 3 years.
It??s not a way to get rich quick, but it??s a practical plan for creating wealth. They owned two investment properties free and clear in about 10 years. In 15 years, they owned about 4 houses free and clear. And they??d own 8 houses totally free of debt in around 20 years. How much is the median home price in your city? Multiply that by or by. You could live quite comfortably off that, right? If that average price of a house where you live is $250,000, you??d have one million dollars in real estate free & clear in only 15 years.
Appreciation, the annual increase in value, is one of the best qualities of real estate and we haven??t even mentioned that yet. If you needed cash, you simply take out a mortage on one of the properties and deposit the proceeds in your bank account??tax free!! That??s a fact. The IRS does not impose taxes on the proceeds of a mortgage. That??s a fabulous plan
Assuming that history will repeat itself, if you invest $5,000 in the 25 top performing stocks you will be a millionaire in less than 25 years! What is the catch? We are not talking about today??s top performing stocks. We are talking about the top performing stock in the next 25 years. A quarter of a century ago if you had a crystal ball and had invested $200 in each of the top 25 performing stocks, today you would have $1,370,000!
If you are curious to know what great stocks you may have missed, here is a list of the top 25 performing stocks and their corresponding percentage growth in the last 25 years as reported in the USA Today:
1. Franklin Resources - 65,224%
2. Danaher - 47,913%
3. Eaton Vance ?C 38,444%
4. UnitedHealth ?C 37,672%
5. Cisco Systems - 33,632%
6. International Gaming Technology - 33,436%
7. Biomet - 30,531%
8. Microsoft ?C 29,266%
9. Best Buy - 28,703%
10. Oracle ?C 28,535%
11. Stryker ?C 25,383%
12. Countrywide ?C 24,160%
13. Expeditors International ?C 23,860%
14. Home Depot ?C 23,845%
15. Dell ?C 23,048%
16. Robert Half ?C 21,170%
17. Credo Petroleum ?C 20,180%
18. Adobe Systems ?C 19,989%
19. Precision Castparts - 19,437%
20. Berkshire Hathaway ?C 19,424%
21. Smithfield Foods ?C 19,414%
22. Paxar ?C 18,923%
23. Time Warner ?C 18,158%
24. Paychex ?C 17,920%
25. Harley-Davidson ?C 17,808%
Obviously looking back in the rear view mirror is much easier than looking forward. In order to achieve the results above not only would you have needed the fortitude to select these stocks before they became household names, you would also have had to hang on to these stocks even when their prospects were bleak. Today they are considered super stocks, but back in the early days their future prospects were not so clear. Oracle for instance had a near death experience during this 25 year period.
If you are like most people, guessing the next 25 top performing stocks in the next 25 years is nearly impossible. Your best shot is probably to invest in a few potential super stocks and, if you have some luck, you may just find one that becomes a top performer. How do you go about finding such a gem? Perhaps you can start by looking for the next megatrends that will drive the growth of the next super stocks. In the article Megatrends-Based Investment Ideas.we share some potential areas that you may want to investigate. You probably have observed other magatrends yourself that may become a good investment theme.
Once you have identified a good investment theme you should follow the advice of those that have already succeeded. In the article achieve success with your investments, we share some advice from one of the most successful investment families in America. Notice that the very first advice in that list is to set realistic expectations. Therefore, you shouldn??t expect to repeat the spectacular return of any of the stocks listed above. Historically stocks have retuned on average 10-11% per year. At this level of return, you can expect to double your money about every 7 years.
So, with an average return, you should expect your $5,000 investment to be worth somewhat less than $80,000 in 25 years. This is still a very good return on your investment. But if you are looking to become a millionaire in the next 25 years you will probably need to invest more than $5,000.
Unless of course you are one of the lucky few who can find a super stock and will hold it for the entire period.
The word millionaire is generally used to describe a rich person. When we speak of a millionaire, we think about mansions, limousines and yachts. But what is the most accurate definition of a millionaire? The most recognized definition of a millionaire is a person who has financial assets of at least US$ 1 million, excluding the home value. Despite of the images that we associate with this word, the amount of US$1 million nowadays is no longer what is used to be some decades ago. Many people who have this amount today live without luxuries and do not feel rich. However, this amount is used as a measure to differentiate privileged people, who are known as HNWI (High Net Worth Individuals).
How many millionaires, or HNWIs are there in the world? According to the research made by CapGemini and Merryl Lynch published in the World Wealth Report 2006, there are about 2,669,000 millionaires in the United States , or about 0.9% of the population. In the whole world there are 8.7 million millionaires, or about 0.13% of the world-wide population. The total number of millionaires in the world grew 6.5% in 2005. They possess a total of US$33.3 trillions in financial assets. The majority of the millionaires are in North America (United States and Canada).
The table below shows the distribution of millionaires in the main regions of the world:
* North America - 2.9 million
* Europe - 2.8 million
* Asia-Pacific - 2.4 million
* Latin America - 0.3 million
* Middle East - 0.3 million
* Africa - 0.1 million
There is another level of extreme millionaires. These are the people who possess more than US$30 million in financial assets. These people are trully rich, and have the financial power to live in mansions, and to buy yatches. There are a total of 85,400 people in the world who fall in this level of wealth, and almost half are in North America. Although this level of wealth is practically unreacheable for the great majority of people, the goal of becoming a millionaire, or to be a HNWI, is completely viable for most people. If you have this objective you may be curious to know where the wealth of these millionaires comes from.
Here is a comparison of the origin of the wealth of the millionaires around the world:
* Business / business sales - 37%
* Wage income - 24%
* Inheritances - 18%
* Investments - 10%
* Restricted stocks/stock options - 9%
* Other - 2%
An interesting fact about the origin of wealth of millionaires is that there are significant regional differrences. For example, in Europe and Latin America the biggest portion of the wealth of millionaires (about half) is from business or business sales. However, in the Middle East, the biggest percentage of the wealth (36%) is from inheritances, and in the United States the biggest portion (32%) is from wage income.
If you want to increase your chances of becoming a millionaire, here are some interesting statistics:
* 61% of millionaires are more than 56 years old, although only 15% of the world-wide population belong to this age bracket
* 84% of millionaires are married
* 83% of millionaires have children
The great majority of the world-wide population (99.87%) does not belong to this exclusive club of millionaires. However, the chances of you becoming a millionaire increase substantially when you live in a rich country, such as in the United States. As we saw here, most American millionaires built their fortune with wage income. You do not even need to have a business to become a millionaire in the United States! Even if you are just an employee, you too can get there.
Think millionaire opportunities abound! Cease thinking about lack or poverty, it's that trap that keeps most people exactly in the rut where they are right now. We are indeed what we think. Dare to dream big and believe you too can join the ranks of other millionaires one day by utilizing the opportunities that come along and creating your own millionaire opportunities as well. Luck has nothing to do with it. We create our own opportunities and our future!
It's not only about dreaming about what we want, it's about doing whatever it takes to get there. Everyone wants to be a millionaire but not everyone wants to do what it takes to get there, like in any goal.
Millionaire Business Opportunities are everywhere, if you would just look. It could be right in your neighborhood, disguised as real estate deals or a business partner. America is the land of opportunity, people in third world countries think of the U.S. as a land paved with gold. If you are not in the USA you still have many opportunities. Many people would do anything to be able to come here and work hard to become rich. If you live in the U.S. then you're already richer than the 1.7 billion people that live in third world countries and you are surrounded by opportunities everyday. Just keep your eyes open and know that you can become a millionaire if thats truly what you want.
Isnt that awesome? Be thankful for everything. If you have the following things, you are rich beyond compare. Banish any negative thoughts and reverse that negative attitude. Don't think about what you don't have instead think about what you do have and why you should be thankful for having them.
* Your health
* Your Family
* Fresh air and water
* Money for daily expenses
* Some money in the bank
* A job/career or your own business
* Your children/wife
Take a moment to say a prayer to God (it doesnt matter what religion you are in or whether you are religious or not), and thank him for everything wonderful thats present in your life.
Keep an open mind and heart. Know that there is more than enough in this world for everyone and you will be taken care of and provided for. You need to put your trust in God. Have faith in God and belief in yourself.
"To believe in the things you can see and touch is no belief at all; but to believe in the unseen is a triumph and a blessing." -Lincoln
Now that you have a positive attitude and are ready to embark on a journey to a destination that you choose you will find many tools on this website to help you.
Life is a journey, not a destination.--Unknown.
HAWAII has the highest millionaire-to-household ratio in the United States, according to a division of New York-based Phoenix Marketing International.
The winning number, 6.79 percent, might be so high because so many Hawaii households are house-less, but that's another story.
The Phoenix Affluent Marketing Service ranking of U.S. states and the District of Columbia counts the percentage of millionaires in each state.
Hawaii tops the list this year, as it did last year -- and it was at or near the top in the years prior, said David Thompson, vice president and managing director of Phoenix Affluent Marketing.
Some states' rankings , such as California at No. 8, down from No. 6 last year, and New York at 13 this year, down from No. 11 last year, are surprising.
Poor Warren Buffett at Berkshire Hathaway was practically slumming in 2006 with his corporate HQ in Nebraska, which ranked No. 34. It's up to No. 29 this year with a 4.32 percent millionaire-to-household ratio.
Households with greater than $1 million in investable assets are included in the millionaire category, but home values are not included, Thompson said.
Phoenix Affluent included only "highly liquid assets," Thompson said.
"We have a large-scale tracking study that we've been conducting for many years," he said. Using an algorithm to combine its own research, census data and information from Claritas Inc., a California-based marketing research firm, it comes up with the state rankings.
The information "is really just one component of the service we provide," Thompson said. The company also studies "how affluent households behave," from a financial and lifestyle standpoint -- information that is helpful to financial services wanting to market themselves to that elite sector of the population. "We do some business with other players in the luxury space," but its clients are primarily in the financial services and wealth management industries.
The official watchdog shredded West Dunbartonshire Council for poor management, and Labour Party headquarters purged its members over recent months.
Now, Labour's answer to its troubles in West Dunbartonshire Council is to put up a member of the exclusive club of Leading Women Enterpreneurs of the World for election on May 3, in the hope that her skills can help turn around the political and social problems in one of the most deprived parts of Scotland.
Ann Rushforth grew up in Haldane, near Balloch, where she is standing for a council seat. She intends to remain in control at the headquar- ters of her business on the banks of the Clyde at Old Kilpatrick, despite the challenge of merging her ¿11m turnover business with another company.
But there's a catch. Her business is in one of the more controversial areas of private provision for public services, providing up to 1000 agency nurses per week to hospitals, care homes and prisons.
Labour has previously pledged to stop the use of agency nurses, believing the profits being made by the agencies were a drain on NHS finances.
Mrs Rushforth, a nurse who set up ScotNursing 20 years ago, argues the sector has been much misunderstood.
She has sought to work with the NHS through contracts, providing a route into part-time and flexible work for nurses who would not want to go full-time or into a staff job.
But that has not stopped her opponents claiming a conflict of interest. SNP group leader Craig McLaughlin asked why a multi-millionaire would want to be a ¿15,000 a year councillor. "Labour is trying to pull in some big guns from outside to salvage its poor reputation in the area," he added.
Mrs Rushforth said she had contracts with most councils in Scotland, adding: "If there was any conflict of interest, I would just step back from having anything to do with a decision."
The 48-year-old mother-of-three, who is married to a rail industry executive, has been a Labour Party member in East Dunbartonshire for more than 10 years. "I've always thought I would like to be more involved in politics," she says. "This is earlier than I'd planned, but because we've had issues in West Dunbartonshire, this was the time to step forward."
That does not extend to parliamentary politics yet: "If people feel what I have to contribute is what they want, that may be something for the future, but for now, my commitment is West Dunbartonshire, and the first thing is to get elected."
Mrs Rushworth denies knowing much about the internal party warfare that saw the West Dunbartonshire group split.
"I was not involved in the detail of what happened, but for a party that can run the country effectively, we must be able to run councils effectively and fairly."