IT’S HARD TO MAKE A LIVING BUT IT’S EASY TO BUILD WEALTH LINDA PLIAGAS
that most millionaires made their
money in real estate. I understood
vital concepts about the time/value of
money
and
how
location
and
appreciation could easily skyrocket a
person's net worth.
But the hardest part I thought was
getting started. So my husband and I
worked hard to accumulate the funds
needed to invest. They were busy
years and we were handsomely and
surprisingly
rewarded
when
we
managed to buy a home with no
money down, in one of the most highpriced areas of the nation. How? We
Having a job can provide for the
deal because there were five other
found a seller willing to carry a portion
basics just fine, but what quality of life
offers, but I wrote a personal letter to
of the note and used private money to
can that type of salary provide?
the seller assuring him that I would
get into the deal.
make the best landlord to take over
In the real estate world, $40,000 is
his building and he sold it to us, even
Since we didn't need any of our own
not an astronomical number. One can
though another offer came in higher.
money to buy our home, we used our
do a deal and make that much per
nest
small
transaction either by buying and
Upon purchasing the property, we did
apartment building. It was then when
holding for cash flow or buying and
slight renovations, one unit at a time.
everything began to change.
flipping for profit. I even personally
Nothing major, just new carpet, new
know someone who made $30,000
paint and I think we changed the
Within a few short years, our net
on one wholesale deal, and she did
cabinets in the kitchen of one unit.
worth
not even own title to the property!
The hardest part was managing the
egg
to
purchase
skyrocketed.
a
Things
were
appreciating steadily back in 1994
property because some of the tenants
and the equity in the properties was
Most of the deals my family and I
had an attitude because I raised all
rising much faster than our ability to
have done over the years have
the rents to market.
earn a paycheck by working in our
grossed
professions.
transaction -- we are lucky to live and
About one year and half into the deal,
be able to do deals in California,
we
where the spreads can be great.
purchased it for $425,000 and in 18
This is the beauty of real estate. A
us
over
$100,000
per
property can appreciate either due to
decided
to
cash
out.
We
months sold it for $659,000. A gross
market conditions or by adding value
One of my favorite deals was when
profit of $234,000! How many people
through a rehab. Profits can come
my husband and I purchased a small
can make that amount of money
quickly, much faster than a person's
multifamily property in Hawthorne,
punching a clock for 18 months?
ability to "earn" a living.
Calif., a blue-collar area of Los
Angeles.
The
average
national
salary
in
And what do they have to go through
to "earn" that money? Get up at the
America is $41,673.83, according to
The market was really hot in late
crack of dawn, commute to work, put
U.S. Social Security administration.
2004, and it was tough getting the
up with bad tempers and attitudes,