Yearning, Earning, And Learning Pay Off

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Topics: Investor Success

Nobody hits a homerun the first time that they come up to bat, nor should you expect to be able to make high yields until you learn the ropes in any investment. I had to pay hefty dues to learn everything I've taught others to do. They paid good money to learn at seminars. I only wish I could have done that too. I paid a lot more, but even at the prices I endured, it was all well worth it.

Like a pin-ball, I bounced off one experience after another on my upward saga. I went from one profit-making activity to the next by building on the lessons I paid for at each step to help me learn new methods and techniques at the next. At the time, it seemed arduous, but like a body-building course, I knew that each day's financial workout would ultimately make me ready for the next challenge.

Like many of those who work out regularly, I grew accustomed to making a daily effort to become better, and In time, it became an important part of my life, and still is. I relish the challenges that I must confront in the “money game” as much as I look forward to the rewards.

I started out in real estate by missing being able to buy a 2 bedroom garage apartment built over three garages that I could have bought for $2500. With the house and garages leased, It would have produced $170 per month in gross rents. Unfortunately, a week prior to finding out about this deal, I had spent all my cash going to the Nash factory in Kenosha, Wisconsin to watch my new Nash Rambler being built and taking delivery of it at the factory. This loss  had an indelible effect on me. I still rue the opportunity cost of that car, and have made a resolution to always have liquid cash on hand for the next opportunity. .

My next contact with single family houses came about when I helped a friend build a small house by hand on a scrap of land that he had bought at a tax sale. When I saw how much money he saved, and how much he made in rents over a long period, I decided to concentrate on as soon as possible owning a house to live in rather than paying rent to another owner.

It made sense to me, that if I couldn't earn much pay as an Air Force career enlisted man, at least to start trying to build equity in my own home. It's odd to me how many people never quite grasp this concept, and continue to make landlords rich instead of themselves..

I wasn't able to build or buy a house, but I began saving as much money as I could and a year later I took my first step as a real estate mogul by buying a small parcel of water-view land in Venice, Florida which consisted of five lots. I paid $25 down and signed a contract to pay $25 per month at 5%. Once my loan was paid off and I'd saved money I'd need to start building I intended to build a house on two of the lots, then sell the other three to help pay off my loan.

In the meantime, I started studying everything I could about building a house. House and Garden magazine used to offer a full set of plans for houses for only a few dollars. I bought a set and taught myself to read blueprints. Then, just to test my knowledge without risking anything, I bought some balsa wood and built a scale model of the house I selected to build.

Except for wall and window coverings, plumbing, heating and cooling systems, fixtures, electrical connections and wiring, and hardware, this model was accurate down to the last door frame, joist, and rafter. When 2 years later I had a house built in Japan for my own use, I drew on this experience to help 
design it. I still have those plans.

So long as you're willing to dedicate your time, effort and know-how to increase the earning power of your capital, you'll soon discover that the combination of your money plus your skill and energy can create wealth much faster than either your labor or your capital can working separately without the other.

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