Helping you save your credit and avoid foreclosure

Money and Wealth

By Reed M. Sawyer

The value of money

George Raft, the film star of the thirties and forties who specialized in playing gangster roles made and spent ten million dollars during his short career. When asked how he had spent the money he said, "Part of it went to gambling, part of it went to booze, part of it I spent on broads. The rest I spent foolishly."

Money! Money makes the world go around. It is the yardstick by which a deal is measured. It is the way in which commerce is conducted. When asked by a grateful client how she could thank him Clarence Darrow responded, "My dear lady, ever since the Phoenicians invented money 4,000 years ago, there has been only one answer to that question."

Money is wonderful, but not everything in life. As the writer/philosopher Artemus Ward once said, "My friends, money is not all. It is not money that will mend a broken heart or reassemble the fragments of a dream. Money cannot brighten the hearth nor repair the portals of a shattered home. I refer, of course, to Confederate money."

Our goal is to help you acquire money. Gobs of it. Enough money to make you wealthy beyond the dreams of avarice. We shall attempt to do that through an integrated system that allows you to take the steps that will naturally lead to you acquiring wealth.

We will not actually DO the work for you. I had one student that handed us a partially filled out sellers script (He had forgotten to write down the name, address, and phone number of the seller by the way) and asked us when we would send him a check for the deal. That isn't what we do. We are going to give you the tools; you are going to have to build your wealth.

Let's proceed into a discussion of why you want wealth.

Why do I want money?

Alfred Hitchcock, the film director of "North by Northwest" and other classic films, once stated, "Actually, I have no regard for money. Aside from its purchasing power, it's completely useless as far as I am concerned."

Money can be used to buy things. It is a tool in real estate for acquiring property, doing rehabs, and paying payments on a mortgage. Publilius Syrus stated, in 100 B.C. "Money is a wise man's religion." I disagree with that maxim, but I agree with his later maxim that stated, "Only our characters are steadfast, not our gold."

Money can be used for security. If you have money in the bank, it solves all manner of financial problems. Money is also a great thing to have when you have plans for what you want to do in the future.

Cash in the bank is nice. Having a steady income stream is even better. Cash on hand is spent. Cash flow is security.

Outside of real estate, money can be useful in acquiring things. I have found that most stores don't have a huge demand for real estate knowledge and credibility. They want cash or credit cards.

Can I work my current job and still be
a real estate investor?

Your job may not allow you to receive phone calls at work on real estate. You might actually have to call people during your time at home instead of watching TV. If this is a sacrifice that you have to make to achieve wealth, you have a choice to make each night. Am I going to watch "Survivor" or am I going to build my family's wealth?

The only way to succeed is to have a system that allows you the structure to accomplish great amounts in a short period of time. The Franklin Covey system is a wonderful way to manage your time and resources.

How do I start becoming wealthy?

The first step is to acquire deals. The way that you do that is to make phone calls, or have people call you. When you have negotiated a deal, and have a contract on the property, you have something to sell. If you don't get a contract on the property, you have nothing.

The second step is to convert those contracts to cash. You can do that through:

1) Wholesaling: (selling your contract to another investor.)

2) Retailing: (selling the house to a retail buyer for cash.)

3) Lease option to a tenant buyer (putting a tenant buyer into the property with a non-refundable earnest money deposit, earning a positive cash flow, and selling it down the road for cash.)

Can't I just hand you the deals?

No! I had a student tell me that he had found a great deal, and he was willing to cut me in for half. All I had to do was to make the initial phone call, inspection, negotiation, sale, and disbursement of funds.

In other words, he had seen an ad in the paper.

This isn't difficult, but it does require work. If you do the work, you will earn the wealth. If you don't do the work, you will not acquire wealth through real estate.

But I'm scared!

So what? You are not putting your cash, credit, or sweat equity into a deal. You are trying to find people that are in severe pain, and easing their pain. If you do this correctly, you will realize that you are in control, that you are the problem solver, and that you are the rain-maker. Most people like rain, especially if they are in a financial drought. The worst thing that can happen to you is that they will not be motivated. NEXT!

Always look at a risk with the attitude, "What's the worst that can happen, realistically?" If you can handle the worst case scenario, everything else will be better. In most cases the worst case scenario isn't that bad. Life is a gamble, by working hard, you increase your chances of success.

But I don't know enough!

The best way to learn is by doing. If you don't know enough, increase your knowledge. We are here to help you through the learning process. There are advanced classes, FRAREI meetings, books, and tapes that are available. As Jimmy Napier, the real estate guru once said, "If you think that education is expensive, try ignorance."

In other words, just do it! Learn, and become wealthy through your actions. You will never acquire wealth through knowledge, but through action.

If you would like to know how you can make more money, please contact me at
(407) 962-7364 or email me at reed@reedsawyer.com.