Wealth Secret No 6 He Who Lives The Golden Rule Gets The Gold Here

"Now, back to our example. The buyer and his wife were able to borrow sixty-five thousand dollars, using the duplex as collateral. But how much did the seller want? Only fifty-five thousand dollars. What does that mean?"

Steve grasped the situation. "He's going to make a ten-thousand-dollar cash profit."

"How much money will this buyer have to invest to make this ten-thousand-dollar profit?"

"Nothing."

"And besides the cash, he owns a duplex worth eighty-thousand dollars with an existing loan on it of only sixty-five thousand dollars.

That's a fifteen-thousand-dollar equity. He could farm that equity by fixing up the property and renting it out for income. Or he could sell or trade it for a profit. If he decided to sell it, he could run the following ad:

Illness forces sale {I'm sick of this property!) Worth $80,000. Sacrifice for $65,000. You just assume my loan. Nothing down. Call Bob. 555-1234.

Think he'd get any calls?"

They responded in one voice. "Oh, yes!"

"Would an investor win by buying this duplex for sixty-five thousand dollars on these terms? Sure. But, how would our diamond miner win?"

Mary responded. "He's already won! He's got ten-thousand dollars cash."

"Right. Suppose you were the seller, Philip, and you couldn't sell the duplex. What could you trade it for?"

"Put an ad in the paper, 'Will trade fifteen-thousand dollars equity in beautiful duplex for your car.' What kind of car do you want, Philip?"

"A Mercedes."

"Lower your sights just a bit for now," I said, laughing. "We'll go for the Mercedes tomorrow. Today we'll settle for a Ford."

I continued. "Are you beginning to see how you can solve your own money problems by solving the problems of others? It's a whole new way of looking at the world. And it works."

"But," Nora interjected, "it's still hard work; I know that."

"But it's worth it! In this example, I've been talking as if there were only one duplex. But in reality there were three duplexes. And out of this one transaction the buyer pulled not ten thousand dollars but thirty thousand dollars in cash! And let's not forget the fifteen-thousand dollars equity in each duplex. All told, he earned more money than most folks earn in several years working at jobs they can't stand. Sure, it's hard. But the rewards are incredible! How many transactions like this do you need to find in a year to reach your goals?"

"Just one!"

"Do you think you'll be able to find at least one like this if you spend an entire year looking?"

"Maybe," I cautioned. "And if you find it, what will be the next step?"

"How can you fund it when you are unemployed?"

"We'll have to find a partner to split the profits with."

"Is that fair?" I asked. "He comes up with all the money. You just find the deal."

"But without me bringing him the deal there would be no profit at all."

"Now you're beginning to see. And that brings us to our next wealth secret."

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Effective Planning And Pursuits

Effective Planning And Pursuits

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