Million a Month The Inspirational Story of Investor

One of my favorite stories is that of a millionaire investor we interviewed in California who built a remarkable real estate investment business that generates $12 million in annual profits. Since he was our thirty-fourth interview and out of respect for his wish to remain anonymous, we'll call him Investor 34.

Investor 34 started his investment business on savings and credit cards, and for the first six months he and his wife worked from their kitchen table. By that measure his success should feel repeatable to most people. He didn't have the advantage of beginning his investment career with large sums of money. The niche he latched onto was buying limited partnership interests in real estate. He and his wife would obtain lists of the limited partners from the general partners (which, by law, they were required to share) and then mail those investors a marketing piece offering to buy their interest. At the time they would offer as little as $50 for shares that were valued at about $100, and roughly 5 percent of the people they mailed to would take them up on their offer. But then a rising tide in the California real estate market swept them up and helped them turn as much as $150 in profit on each share they acquired.

As this investor said, "Our goal is not to be the biggest company around; it's to be the most profitable. So we would rather do a lot of small transactions that are highly profitable than a big transaction that generates the same amount of net income."

Their business success was limited by how much time they could devote to the mailings. A big breakthrough came when this investor's wife called the printer and asked, "Can you print, address, and stuff these for us?" All of the sudden they went from mailing 1,000 marketing pieces a month to 5,000 and then 10,000, 20,000, and 30,000.

"Our response rates and our profit margins were the same whether we mailed 1,000 or 100,000," he told us. "So the profitability of the company went way up."

Rather than treat the money as income and consume it, they reinvested directly in real estate—apartment buildings and storage facilities—to build a stable platform of residual income. Today Investor 34 owns over 4,000 apartment units and more than 1 million square feet of storage rentals. Amazingly, he nets over $12 million annually from $45 million in gross revenues. His little investment business has grown into a big investment business, obviously more than he and his wife could maintain at their kitchen table. Currently, he has over 60 direct employees divided among five investment companies and another 100 independent contractors who manage his apartment buildings. What I love about Investor 34's story isn't that he built his multimillion-dollar investment business so cleverly in little increments of $100 and $150 reinvested in real estate; it's that he discovered a powerful way to take him farther while working less: people leverage.

"It really wasn't about the money," he told us. "I wanted to set my own schedule, and mostly I wanted to be able to spend more time with my family."

Investor 34 works about 20 hours a week. He doesn't carry a cell phone or a pager because "I want to be connected when I want to be connected." He spends more and more time with his family. In our language, Investor 34 is well down the path of Receive a Million. In fact, he's at a point on the path where it's possible to receive $1 million a month. But no matter what amount of unearned income he receives at the end of his journey, be it more or less, I know he's already discovering the amazing freedom that comes when you can step out of your daily investment business without losing your income. It's what we call the 7th Level: The Path to People Leverage.

Making Money by Investing in Real Estate

Making Money by Investing in Real Estate

Are You Ready to Discover the Astonishing Secrets of How to Make Massive Profits in Real Estate Investing? If So, Keep Reading to Find Out How You Can Have Your Very Own Outrageously Profitable Real Estate Investing Business in No Time at All!

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