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Why Real Estate Agents Need Residual Income
 

Are you a real estate agent or broker that would like to help your clients invest in income producing property?   Robert Kiyosaki author of Rich Dad Poor Dad, recently published a book called The Business School For People Who Like Helping People.  In this book, Robert gives a very good example of why a business associate of his invested his time in network marketing.  Here is an exert from that book:

Sometime in the early 1990s a friend I respect for his financial wisdom and his business success told me he was in the network marketing business.  Bill was already wealthy from his real estate investments, so it puzzled me why he would have a network marketing business.  Now curious, I asked him, “Why are you in this business?  You don’t need the money, do you?”

Laughing aloud, Bill said, “You know I like making money, but not in the business because I need the money.  My finances are in great shape.”

I knew that bill had just completed commercial real estate projects worth over one billion in the last two years, so I also knew he was doing well.  Yet his vague answer made me more curious, so I pressed on, asking him, “So why do you have a network marketing business?” 

Bill thought for a long while and then he began speaking in his low Texas style:  “For years, people have asked me for real estate investment tips.  They want to know how to become rich by investing in real estate.  Many want to know if they can invest with me or how they can find real estate with no money down.”

Nodding in agreement, I said, “I am asked the same question.” 

“The problem is,” said Bill continuing on, “Most cannot invest with me because they do not have enough money.  They do not have the $50,000 or $100,000 needed to get into my level of real estate investments.  In addition, the reason many of them want a no-money-down deal is that many of them have absolutely have no money at all.  Some are two paychecks away from bankruptcy.  Therefore, they look for this cheap no-money-down deals that are often very bad deals.  You and I know the best real estate deals go to the rich who have money and not to those without money.”

Nodding, I said, “I understand.  I remember being so poor that no banker or real estate agent would take me seriously.   You mean they don’t have any money, or if they do have money, they don’t have enough money for you to help them.  They are not rich enough for your investments.”

Bill nodded, “And on top of that, if they do have a little money, it is often their life savings.  You know I do not recommend investing everything you have.  On top of that, if they invest their life savings, they are often so afraid of losing they wind up losing.  And you and I both know that a person that is afraid of losing often loses.”

My conversation with Bill went in for a few more minutes, but I soon had to dash for the airport.  I was still not sure why he was in a network marketing business, but my closed mind was beginning to open.  I was beginning to want to know more about why someone as rich as he was had a network marketing business.  I was beginning to realize that there was something more to the business than just the money. 

Over the next few months, my dialog with Bill continued.  Slowly I began to understand his reasons for being in the business.  His primary reasons were …

  1. He wanted to help people.  This was his main reason for having this business.  Although a very rich man, he was not a greedy or arrogant man.

  2. He wanted to help himself.  “If you have to be rich to invest with me, I realized that if I helped more people become rich, then I would have more investors.”   Bill continued, “The irony is that the more I help others become rich building their own business, the more my business grew…and I became richer.  Now I have a consumer distribution business, more investors, and more money of my own to invest.  Talk about win/win - that is why in the last few years I have began investing in much larger real estate projects.  As you know, it’s hard to get really rich investing in small real estate deals.  It can be done, but if you don’t have much money, all you get are the real estate deals that people with money don’t want.”

  3. He loves learning and teaching.  “I love working with people who want to learn.”  He said to me in one of his later discussions, “It is exhausting working with people who think they know everything.  In my world of real estate investing, I work with many of those people.  Working with someone who thinks they know all the answers is tough.  For me, people who start a network marketing business are looking for new answers and they are ready to learn.  I love learning, teaching business, and sharing new ideas with people excited about their on-going education.”

Are you a real estate agent who is interested in residual income that could take your through the ups and downs of the market?  Hollis Stevens is a former realtor-turned Xango distributor says, “It just took talking to someone about it at the grocery store and then seeing an ad for Xango in the Network Business Journal and I knew I wanted in.”  

Having only dabbled in direct selling once upon a time, she walked away from making well over six figures a year selling houses – and walked right up to a Xango career.  She achieved 100K Premier in just five-and-a-half months.   One thing she noticed is that while she was at the hospital with her husband Larry after bypass surgery, her business continued to grow.  That would never happen in real estate.

 
 
 
 

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