I’ve tried many investments over the years, I bought my first business at age 16, and closed on my first rental property at age 18, just 6 months out of high school!Not only am I an expert in the study of money and creating wealth, but I’ve also destroyed vast quantities of it with bad decisions.
I’ve suffered a string of foreclosures, experienced hellish low liquidity moments in my life… Oh yeah, that one hit home for a few of you reading this. There’s nothing like a liquidity crunch to teach you how to cash up in the future.
Through my own mistakes and success, here is how to create wealth fast.
By fast I mean between 1 to 3 years.
1. Equity captures on real estate. I’ve built up a ton of wealth with this strategy, and it’s super simple.
Find great properties, ideally single-family homes that everyone despises.
I’m talking about fire damage, foundation issues, extreme fixer-uppers. If you want to make money in real estate, you make money on the buy.
And if you do it right, you should walk into every deal with an equity capture, meaning you buy at such a discount that you’re guaranteed to make money!
To do this, you need to find the hated properties, the ones that have been on the MLS for 6 months or longer… The properties that have been red-tagged by the city as uninhabitable.
2. Buy micro-cap stocks, early-stage start-ups with proven winners.
Obviously, this is something we are heavily involved in here at Future Money Trends. The key to success is patience.
Everyone in the U.S. has trouble holding a stock over a long weekend, or worse, they allow the noise and volatility of the market to determine their share position in a company.
The reason people can make a fortune with micro-cap companies is because they are speculative.
This means that the only way to make money is to see these early-stage ventures through to their ultimate objective of building a real company.
Day trade them at your own peril, but if you want to make a chunk of money, then partner with the right people and forget about the daily price – it’s irrelevant while the company is being built!
3. Start a business. Multiple streams of income, even in small amounts, can add up and help you achieve true financial independence.
Your best business idea is staring at you in the mirror – you are the best source of income in your life.
If you have a great job, congratulations, but do you think you can make your boss a client?
Forming a business in what you already do, especially if you love what you do, is the quickest path to launching your own company.
Current employers, depending on the field you’re in, are ideal targets to become your first client.
Starting a business also has many tax incentives that will also free up more cash in your life to build up wealth.
Do everything with success in mind. Never start a business or buy an investment for tax purposes alone – only participate if you truly believe you can make money!
4. Avoid these mistakes…
***Being fooled by realtors. If the cash flow numbers look too good, it’s because they are. Unfortunately, it took me 3 separate investment properties to finally get it through my thick skull that buying rentals in the ghetto really sucks!
The cash flow looks like a 35% yield, but all it takes is for one person to trash the place and you’ll wipe out a few years of income.
In one area I bought a property in 10 years ago, the property manager has to remove the air conditioner every time there is a vacancy or it will get stolen.
***If you’re buying in a rush, the moment you feel like you’re going to miss out if you don’t act now, I guarantee that you’re about to lose money.
I’ve sent a lot of dollars to the graveyard by being in a hurry.
***Thinking you can time the market. Like an abused spouse, I keep coming back to this one… But the truth is that no one can time an entire market.
It’s best to be too early, in my opinion, than too late, but never think you can time the top or bottom.
I once nearly perfectly called a market. It happened to be the 2008 crisis, but since then, I’ve had no better or worse of a track record than anyone else.
Focus on buying great investments and do your best to ignore the daily noise of other people’s predictions.
Just make sure you’re ready on October 7th, 2019, as that’s when the dollar will collapse. Just kidding, I have no idea when the dollar will collapse. That’s the mother of all predictions that will one day come true, but it is impossible to know when. Of course, you can bet that if it happens near the date I just mentioned, it will be legendary, and I’ll be ready to take full credit for it!
***Lastly, holding on to losers.
Rick Rule once told me that you have to master not looking back at what the investment was. You can only focus on what you control going forward.
This means that if an investment you own is down enough that you wouldn’t buy it today if the money was still sitting in your checking account, you should seriously consider selling it.
Don’t feel married to a position because it’s down and you want to wait until you’re at the break-even point.
Always choose to put your funds to their best use.
Summary: Your mindset is going to have a lot to do with your success and income gains.
I want you to never see a problem again – only solutions.
When an employee or someone in my life brings a problem to my attention, I’m not going to lie, it brings my blood to a boil… Because to me, it’s incompetency that sees a problem and then just stares at it like a deer in headlights.
Everything in business and in life has a solution. Force yourself to find it. It’s at the very heart and soul of entrepreneurship and wealth-building, as solving problems is where real value is birthed!