How to Use Real Estate to Get Wealthy Now – Keith Weinhold
Have you ever wondered how Amazon achieved such monumental success as an online retailer?
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They achieved success by developing the following:
1) Recurring revenue business model
2) Necessary products for everybody
You can model this success with real estate, the only difference will be that this process is easier and doesn’t require a need for constant innovation like Amazon. It is very likely that you are already paying a monthly fee to Amazon through your Amazon Prime subscription. According to Forbes, 64% of households in the U.S. have a Prime membership. You are willing to pay $99 every year for a two-day shipping and other great benefits. That group is larger than the percentage of U.S. households that: attend church (51%), have a landline phone (49%), and own a gun (44%).
The reason that customer don’t cancel their Amazon Prime membership is because they sell product that are necessities. You can get paper towels, batteries, soap, food, makeup, furniture, basically anything you can think of, in a quick and efficient manner. Their income stream is constant and durable because people will always need these products and will always find the easiest and fastest way to get those products into their hands. Amazon’s combination of recurring revenue and mandatory goods have them on track to possibly become the first-ever company to reach a valuation of $1-trillion! In terms of their market cap, they are already like halfway there.
So, do you want to model your success after Amazon? I can tell you how you can get there with less effort. You don’t need Jeff Bezos’ vision. There is no need to re-invent the wheel and create a new giant e-commerce platform with shopping carts and a powerful search engine optimization. There is no need to build mega-warehouses across the globe and install cutting-edge robotic automation inside. In fact, the reason that you can be more profitable than Amazon is because you won’t have to invent such intricate infrastructure and systems.
How do you get a hold of a product that is an absolute necessity for people and create a recurring revenue business model like Amazon? By investing in real estate.
Being a buy-and-hold real estate investor for passive income is a lot like doing what Amazon does. When you purchase an income property, you are also buying an income stream called cashflow, which is monthly rent income minus monthly expenses. The reason why your income stream with real estate is constant and durable is because housing are not a luxury, it’s a need. It is inside this “product” in real estate that people live, eat, sleep, and create their homes. It is about as vital to human life as we know it as the avocados and almonds sold at Amazon’s Whole Foods stores.
Amazon operates at scale and so can you. Your monthly debt payment can be completely outsourced to your tenant by leveraging your money and properties owned 5x with mortgage loans. This is the reason why real estate can be such a life changing investment for you.
The success model of buy-and-hold real estate investing is like Amazon. Both make money through a recurring revenue business model by delivering products to people that are an absolute necessity. The difference is that Amazon’s Prime membership fee of $99 is their annual income stream and your tenant is yours. The success of a business is defined by the extent of value they create for others. Amazon creates value by providing the household with goods, you create value by providing the household itself. At the end of the day, that is why Amazon and sharp real estate investors will continue be succesful, because humans will always need food and shelter.
Learn more about savvy real estate investing every week on my Get Rich Education podcast. I also travel the continent and compile top real estate markets, properties, and property managers at GREturnkey.
Keith’s new #1 International Best-Selling Book reveals the 7 Money Myths That Are Killing Your Wealth Potential, including the epiphany that getting your money to work for you will NOT create wealth! You can now get this e-book FREE at GetRichEducation.com/Book