I was having a discussion with someone and we were discussing careers. I said that the best field to go into is medicine because you have potential to make millions of dollars, think about it, if you are a simple chemistry major who works in a lab and creates a drug or something that is very useful, there you go. I know that is a fairly vague example but you get my point. My friend said I should go into real estate because I am money hungry with isn't true but I do want to be a millionaire which isn't uncommon and I will be rich one day. Anyway, down to the point. Simply, how DO people in the real estate business rack in millions of dollars? I would assume you have to own your real estate business but that means millions of dollars that need to be there. How do some of these people in this field go from nothing to everything? Oh, and please no flaming, even though it is probably inevitable.
Real estate is a very broad business. I mean that there are probably more ways to play this game than any other type of industry. Some people get undergraduate degrees in real estate and marketing, and then get a masters in real estate appraisal. I know a guy who graduated in accounting from a bus ad school, went to law school, and then got his MBA. I remember his father complaining about his not going to work. Last I heard of him he quit his job working for Senator Herb Kohl's family in their Florida real estate. I know a guy who was a carpenter. He started building houses with a partner. He and the partner split. When housing slowed he started buying pieces of land and built apartments . When the apartment market slowed, he developed condos in Florida, Colorado, Arizona, and California. When that slowed, he came back to his hometown and developed shopping centers and business offices. It is very important that you get a strong knowledge of real estate valuations. I know a guy that was selling an apartment complex for $60,000,000. He received an offer for 40. He was about to accept it. A man in his organization who had a strong appraisal background said wait, let me go down there to do an appraisal. The appraiser came back and said, do not sell for less than 60. The market down there is very strong. He turned down the offer for 40. They came back with an offer for 60.
Become good at your job. Learn everything you can. Be honest. If you are short sighted, You may think about the quick money. The real money will come from experience. Being good at your job and being honest will build a good reputation. Repeat customers and work of mouth are important. Continue to learn and work you way into more valuable properties, which lead to larger commissions. Learn about investing. You will need to grow your money and not squander it.
Think of this...It may seem different but its the same just broken down differently...A house for sale with 5% down and payments of 1% of the purchase price. Maybe a three bedroom home for $90,000, for example, with $4,500 down and $900 per month payments. When a friend started doing the same thing he explained the process to me. It was a way to get a great return on capital, and it was the opposite of buying with no money down. There is no down payment at all when you buy, because you buy for cash. So, Do your research before you get in so deep
You can make millions in just about any job. It's not what you earn, it's what you keep. If you can put $400/month into a Roth IRA from age 25 to age 65, you'll have $3,600,000 Most people can, they just don't want to, because they'd rather spend $400/month on car payments. HOPE YOU LIKE THE CAR!!!
The fees are company, however that's why they pass to foreclosures as a substitute of promoting. I had been following our marketplace, and residences that promote, have a tendency to promote for 10-20% scale back than asking, and that is if asking rate is already a discount. Prices stayed prime right here (Phoenix) for almost a 12 months, so for a at the same time the papers stated that the marketplace used to be steady in rate, however extra residences saved coming in the marketplace at the same time earnings stayed low. I believe that there shall be an uptick as fees come down, however individuals are simply now coming round to the reality that they are going to now not truthfully produce a sale until they take much less cash, and increasingly individuals are seling for not up to they paid, and even for much less fairness than they've. The endure marketplace is a ripple end result of the truly property marketplace, so they're proper now falling off the cliff hand in hand. I believe that the inventory marketplace will upgrade first. I believe the offers coupled with the low significance of the greenback will begin getting the concentration of international discount hunters. They are much less desirous about personal houses in a international nation than in shares, because of the liquidity disorders.
