I just returned from BPcon2022 and I was asked for this daily by people just starting out so I want to share this with you. (BP if there is a better location please let me know)
Oct. 9th,2022 I turned 67. I worked a JOB or was self employed most of my life. Early on I was a design engineer. Then I went into the home remodeling business and later into building new custom homes. I grossed millions of dollars and paid out millions of dollars for material and others to help me build those houses. The funny thing is I thought I was building HOMES, those that helped me build them were just building HOUSES. What's the difference you ask? Homes are where people live, where Moms and Dads bring home their first child, where birthdays, Christmases and life happens, houses are something you build to get a paycheck and move on to the next one.
I search for a way to work once and get paid for the work I did without having to do the same work over and over. Sales that's the answer. I'll sell a consumable product and get residual commission for years to come. I failed to find the right business and the remodeling business kept drawing me back the money was good and it kept a roof over head.
Now I have to go back a little I did find a sales job which kinda' worked. Window and siding sales.... as it turns out I like this for the most part and for a lot of clients I helped them improve there life a little. It so happened that another sale professional in the office talked me into starting a Home improvement company of our own. I really new installation and He knew sales and business (how naïve I was) After a very sort time I realized He was embezzling all the federal withholding and SSI monies from our employees and me and he skipped the state if not the country, never heard from or about him again. Needless to say the IRS wanted their money so the attached everything I owned, everything. Well I lived in a 4000 sq, foot home a horse in my back yard and a few nice cars in the garage. Well not anymore.
Starting over for a third time. Penniless I needed a place to live. I'd bought my first home one year after graduating high school what was I to do. I didn't even think about renting (I don't know why, the thought just never occurred to me) but a good friend of mine was dabbling in "being a landlord". So I thought how can I find a place maybe a duplex to fix up on the cheep and not have to worry about making my monthly payments as much I figured the tenants would help with that. As luck would have it my girlfriend at the time lived in Cincinnati I lived in north Dayton. So moving wasn't out of the question.
The year was 1990. I went to the local IGA and picked up the weekly MLS booklet. Yes it was a small newspaper type booklet you'd pick up for free and it would have local homes for sale. I found a boarded up 2 family with attached grocery store, turn church, turned vacant building in Hamilton Ohio. It was located in let's just say a part of town that had safety issues. But I needed a place to live and no money. I called the nice "little old lady" who owned the property and asked if she would sell it to me on land contract. (learned that on late night TV by Carlton Sheets) She was reluctant but I mustered up $2000 down payment, we wrote up the paperwork and I was a real-estate investor.
The deal: purchase price $17,250.00 $2,000 down 15 year amortization 5 year balloon monthly payment of $191.17. Not a bad deal for a self employed person with no money and IRS debt. Now I've got a place to live, Two 1 bedroom apartments to rent out and a grocery store/church to live in and operate my new home improvement company out of.
We still own this property 33 years. We still have a loan on it. It's paid for our wedding, been the down payment monies for other property purchase. And remember my cash on cash return is based on $2000 down, which was probably returned to zero after year 2.
I am going to bring you along my journey, my story, my goal is to help you understand you are not alone in your self imposed fears, obstacles and unfounded limitations. And the mistakes I/We've made along the way. Oh yes that girlfriend she my wife since 1993.
Now go out there and meet someone who can help you be the best you can be and help other do the same.
See you tomorrow.
Paul
