Have you ever noticed that society is fickle AF? It encourages small creative individuals to go big or go home. But when they make it big, they want to knock them down. Just because someone has figured out how to earn money does not mean they are obligated to give it away. Kim (Kardashian) has worked hard her whole life to be successful. She sort of worked retail once. Not like me slaving away at Walmart and Bob’s Super Store, but kind of close. My VERY first job was cleaning cars at the local car dealership. I think I was paid $10 a day, but that was bank to me. While I didn’t know it at the time, it taught me to detail my own car for years to come. Every nook and crack cleaned with a Q-tip. That was before my days of throwing newspapers on people’s front porch.
*
Yep, I was a newspaper carrier for years and years. I learned the value of customer service, earning tips, counting back change, and of course, a healthy dose of exercise every single day. I grew strong from carrying heavy heavy bags of paper, and then throwing those perfect cylindrical weapons of destruction. I also learned the very useful skill of prospecting and sales. When a new person would move into a renter house, I would deliver the newspaper for a week with a note saying it was complimentary from me. After a week, I would go knock on the door, introduce myself and sell them a subscription that they needed to pay for now. It was like, a whole $5. Worked every time. As a carrier I got one free subscription for myself … which I gave to them for a week. After getting used to reading it, people just wanted it. Today they call it a free trial subscription, one month free. Technically I was an employee, but I never paid any taxes to the IRS for my newspaper money. When customers would write a check to the Kearney Daily Hub, I would just signed their business name, and then my name and deposit into my personal checking account. Never once did they ask for an employee verification to prove I could deposit it. I guess after I got onto my bicycle and pedaled away they knew I was for probably the paperboy. “Oh no! That kid stole a $5 check!” Yeah, not likely some kid broke into a house and wrote a check to himself for $5. That would be just stupid. Gotta say, of all the jobs I have ever done, that was one of the worst. Think about all that shitty snow in the winter. Yeah, you can’t ride a bike very easily. And the summers. My God the summers were blistering hot. The worst ever.
*
The torture didn’t stop there. In Nebraska they do this thing called “detasseling”. WTF is that right? Well,there are millions of ears of corn that grow little seed-like tassels that need to be pulled out in order to grow big. Well, children are exploited for slave labor and they do it. It is hard, hot sweaty dirty work. And I did it. One summer was all it took and I was grateful forever for my shitty job at Taco Johns.
*
All of these horrible experiences taught me that being educated, smart and making wise financial decisions would prevent me ever having to do those jobs again. So if I could offer you one piece of advice that would/could change you forever, it would be … invest in real estate. And there is no reason why you couldn’t do that now. Just saying. Good in sales? Take the test and be a real estate agent. Have some equity/capital/savings? Invest in a rental property. If you are military or veteran, take advantage of the LOAN. Zero down. Buy low, hold it, sell high. When it appreciates on its own, take out another equity loan to buy another house. Rent it out, and when it appreciates, take out another loan for the down payment and buy another home. Rent it. It does not have to be in the same town the you live. $28 a day, is $10k a year. In 2 year, $20k, which is enough to find a starter home to rent. Home sales historically are the only for sure investment that will guarantee you an increase in value over a long term period. If you don’t have your own equity, do you know someone who loves and trusts you with theirs? Do your parents have thousands in their paid off home that they would loan you some of that in a home equity loan you promise to pay every single month on time? Do not buy at the peak of the market, only buy when a property is at its low point. Find a deal, something that might need a cosmetic face lift.
*
Real Estate, ownership of it, will be a safe retirement plan. In 30 years from now, what would a brand new home be worth? New homes are still being built, who says you have to live in it to buy it? No one. Well, in Denver they have some weird rental home ownership laws. Don’t buy in Denver. It is overpriced and at the peak. Wait a few years when there are way too many properties for sale. There are new homes being built by the airport, in a community called Reunion. I think they start at $400’s. In 30 years it would be worth close to a million. Naturally you will need to have excellent credit to pull this off, but if you can and do, then when you retire you will have dozens of homes you can sell. What would a 4-5 bedroom new home rent for these days? I am guessing around $4k–$5k a month. A $400k mortgage is only $1700 a month, but you are collecting twice that in rent. Hmmm. That seems like a no brainer to me. Just saying. Say you got a full $5k a month for rent. Or $60k is about $40k in profit. JUST for having that $80k for your 20% down. You either pay it down fast, or you live off of $40k a year just for being the landlord. Now imagine you own 5 properties, each making $40k. That is almost $200k a year, … for doing nothing but be rich. Heck yeah, I think I like the sound of that. Don’t you?
“Being rich is all about mindset. Did you invest that stimulus check in AMC or MGM or did you spend it? Mindset.”
–Aaron M. Stephens, M.B.A.
