Just tonight, I posted that same phrase on my facebook account (which you can add me at by clicking HERE).
And it made me think about the people that win the lottery and have a hard time choosing "to be rich". Here, they have just become instant millionaires (even after the government's LARGE and UNEARNED share is taken out) and they don't know if they'll quit the job that is the VERYYYYY reason they're poor in the first place.
And on top of the thought of them NOT quitting their job, the most logical answers when asked what will you do with the money are: Buy a new car (liability), buy a new big house (liability), buy a boat (liability).
I dont have a full and complete plan yet, but I have about a 90% done rough-draft of what I'd buy and what I'd do in a situation like that. First, I'd secure my present assets. By secure, I mean, put everything either in my home or in a storage facility temporarily. I'd lock it up for a month or so. Compensate someone you can trust for visiting your home and keeping an eye on it for me. Pay all the reoccurring monthly bills in full + one month in advance (mortgage, taxes, insurance, utilities, etc.). Then, I'd put my current real estate investment company on auto-pilot, instructing my employees to run it while I was away.
Next, I'd schedule a vacation to somewhere for acouple of weeks. I'd get a new laptop and/or doodle pad for taking notes. I'd relax. I'd accept no calls, no nothing for 2 weeks from people in my day-to-day life. I'd do nothing but relax with a clear mind. I'd expand on my previously created notes. The one's where I nearly only dreamed of completing someday. I'd put my dreams into action.
I wouldn't think about a Just Over Broke (JOB). I'd think of ways I could acquire some serious assets and make more money, so I'd NEVER have to reconsider a JOB again.
Just my two-cents, though.
Tim Kaufman
Wednesday, May 12, 2010
Thursday, February 4, 2010
Real Estate Auctions
With my 2+ Years of Experience in the Real Estate Investment field, it is my experience that real estate auctions, such as Cotten Auctions for the Central Illinois region, is the best and most profitable way to purchase a home.
For starters, little to no closing costs (for the buyer; the closings costs are typically paid for by the seller of the property), which immediately saves you several hundred dollars (depending on the amount of the house you bid on).
Next... No REALTOR! Do not get me wrong. I appreciate realtors, because they have a place in the real estate market. But the opportunity to view a home without them, especially for someone with experience in real estate investments, is huge. +++ Did I mention that realtors usually charge for their time?
Nonetheless, I'm not saying that realtors are bad people. I have several friends that are realtors and their knowledge, especially when I first started, was invaluable. But I learned at a young age, not to show "all your cards". Most of my realtors have a hard time determining on their own whether or not I am REALLY interested in a property... and I like to keep it that way. The old saying, "Don't let the left hand know what the right hand is doing..." could apply here. ;)
Nonetheless, I highly value real estate auctions. My first three properties I ever purchased were bought at a real estate auction. I was able to pick them up for under $25k (TOTAL) and they had a collective ROI of 78% (with 2 of the 3, having an ROI of over 92%)
For starters, little to no closing costs (for the buyer; the closings costs are typically paid for by the seller of the property), which immediately saves you several hundred dollars (depending on the amount of the house you bid on).
Next... No REALTOR! Do not get me wrong. I appreciate realtors, because they have a place in the real estate market. But the opportunity to view a home without them, especially for someone with experience in real estate investments, is huge. +++ Did I mention that realtors usually charge for their time?
Nonetheless, I'm not saying that realtors are bad people. I have several friends that are realtors and their knowledge, especially when I first started, was invaluable. But I learned at a young age, not to show "all your cards". Most of my realtors have a hard time determining on their own whether or not I am REALLY interested in a property... and I like to keep it that way. The old saying, "Don't let the left hand know what the right hand is doing..." could apply here. ;)
Nonetheless, I highly value real estate auctions. My first three properties I ever purchased were bought at a real estate auction. I was able to pick them up for under $25k (TOTAL) and they had a collective ROI of 78% (with 2 of the 3, having an ROI of over 92%)
Monday, January 11, 2010
Since when is....
... $150,000 in annual income (+ $500k in assets) considered rich? Seems like this survey shot low in terms of the expectations and broadness of the survey results.
For me personally, I'm under the impression and belief that $1,000,000 is rich. Just my thought. Hence, the name of this blog.
Millionaire Tim :)
For me personally, I'm under the impression and belief that $1,000,000 is rich. Just my thought. Hence, the name of this blog.
Millionaire Tim :)
Friday, October 30, 2009
Financing...
I'm learning that being an owner of real estate investment companies helps you learn ALOT about the financing restrictions of your local bank.
For instance, I learned over the course of the last month that my local credit union has restrictions of the following types:
A. Business Loans - Minimum loan of $25k
B. Standard Mortgage - Minimum mortgage of $10k (per house) (not based on the value of the home, but rather, the fact they will NOT do a loan under 10k).
C. Home Equity Loan (HEL) - Take as long as a mortgage to get all worked out (including the need for an appraiser), but once achieved on a property, can be borrowed and repaid over time (just like a mortgage). The rate is traditionally a fixed rate.
For me, the HEL makes the most sense, especially if you are buying auction or tax foreclosed properties (which will traditionally have a value less than $10k each and you wont have to purchase enough to get over a $25k threshold, like I was told).
Just some potentially helpful information. :)
-Tim
For instance, I learned over the course of the last month that my local credit union has restrictions of the following types:
A. Business Loans - Minimum loan of $25k
B. Standard Mortgage - Minimum mortgage of $10k (per house) (not based on the value of the home, but rather, the fact they will NOT do a loan under 10k).
C. Home Equity Loan (HEL) - Take as long as a mortgage to get all worked out (including the need for an appraiser), but once achieved on a property, can be borrowed and repaid over time (just like a mortgage). The rate is traditionally a fixed rate.
For me, the HEL makes the most sense, especially if you are buying auction or tax foreclosed properties (which will traditionally have a value less than $10k each and you wont have to purchase enough to get over a $25k threshold, like I was told).
Just some potentially helpful information. :)
-Tim
Thursday, October 29, 2009
House closings...
During the month of October, we will have closed on (3) new rental properties (assets). Each of these three is currently rented and generating positive cash flow (rent - minus expenses = whats leftover = cash flow).
The one property I am exceptionally proud of, as we were able to pick it up for a good price. It did need alittle rehabbing, but when you pick it up at such a good price, it enables for the cost of rehabbing to be "built-in".
For example, if you pick-up a rental, which averages around $20k in Central Illinois, USA, you're still likely going to have to put some invest (rehabbing) into it, to make it liveable/rentable, therefore bringing your total investment in that property to around $25-30k, depending on what is needed. If you are able to pick-up the rental for under $20k, the cost of the repairs can be "built-in" and hopefully, you can get the house, rehab it and get it rented for under $20k.
Nonetheless, we're looking forward to an awesome and explosive month of growth. With November right around the corner, my family is going to head down to Talladega, Alabama, this weekend for the NASCAR Craftsman Truck and NASCAR Sprint Cup Series races. When you buy assets, you can afford alittle rewarding of yourself.
Remember in business, you pay YOURSELF first, then the bills.
The one property I am exceptionally proud of, as we were able to pick it up for a good price. It did need alittle rehabbing, but when you pick it up at such a good price, it enables for the cost of rehabbing to be "built-in".
For example, if you pick-up a rental, which averages around $20k in Central Illinois, USA, you're still likely going to have to put some invest (rehabbing) into it, to make it liveable/rentable, therefore bringing your total investment in that property to around $25-30k, depending on what is needed. If you are able to pick-up the rental for under $20k, the cost of the repairs can be "built-in" and hopefully, you can get the house, rehab it and get it rented for under $20k.
Nonetheless, we're looking forward to an awesome and explosive month of growth. With November right around the corner, my family is going to head down to Talladega, Alabama, this weekend for the NASCAR Craftsman Truck and NASCAR Sprint Cup Series races. When you buy assets, you can afford alittle rewarding of yourself.
Remember in business, you pay YOURSELF first, then the bills.
Tuesday, October 20, 2009
ILD Global / Network Marketing
I am an Independent Business Owner(IBO) in ILD Global, a division of Amway Global. While I will admit to not taking full advantage of the opportunities that ILD offers, I have participated in several of their VERY motivating seminars.
My "membership" in ILD allows me to continue to grow as a salesman. I am not pushy and to be honest, have hardly tried to push the products. I do enjoys their energy drinks.
I recommend, as does Robert Kiyosaki (RK), that whomever would like to become and develop into a good salesperson (and ultimately a good business person), join a network marketing organization.
Joining ILD cost under $100, rather cheap for the experience and knowledge you have the ability to obtain.
My "membership" in ILD allows me to continue to grow as a salesman. I am not pushy and to be honest, have hardly tried to push the products. I do enjoys their energy drinks.
I recommend, as does Robert Kiyosaki (RK), that whomever would like to become and develop into a good salesperson (and ultimately a good business person), join a network marketing organization.
Joining ILD cost under $100, rather cheap for the experience and knowledge you have the ability to obtain.
Purpose
The purpose of this blog is:
A. to have the potential to help others..
B. help me avoid my A.D.D problems and allow me to remember the good times and bad times, on my quest to become a Millionaire!
If anything catches your eye while here, I'm glad I could help.
A. to have the potential to help others..
B. help me avoid my A.D.D problems and allow me to remember the good times and bad times, on my quest to become a Millionaire!
If anything catches your eye while here, I'm glad I could help.
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