My Part-Time Job Pays Me $27 Per Hour
I don’t really have a part-time job paying me $27/hr.
I am an entrepreneur and real estate agent, so that means that I have 7-8 different businesses and jobs that I am working on any given day.
In the past 24 hours, I’ve worked on multiple flips with my partner, shown homes to a client, taken two new listings, and worked with several investors that I am helping to build a portfolio.
In the past 24 hours, I found out that Utah appreciated on average year over year from last January to this January 15.9% in housing prices. Most of the experts predicted it would go up to about half of that, but as we all know, the entire market has gone crazy and nothing is surprising at this point.
I take a lot of pride in the appreciating market because I’ve been yelling for years that we aren’t in a real estate bubble and why everyone should continue buying properties even now. I’ll explain in detail in a later blog.
For fun, I decided to break down how much money I have made from just one of my investment homes in the past year.
This is what it looks like:
15.9% appreciation= $79,500
That equals $217.80/ day
8 hours per day work day= $27.22/hr
Above is essentially saying that house was equivalent to having a clone working all year long, every day for 8 hours per day at $27.22 per hour. That’s not even including the cash flow and tax benefits. Do you see now why I preach so much the need to invest in real estate? Do you see how 90% of the millionaires in the world got there by investing in real estate?
Imagine if you own several houses. I’ll break that down as well. My real estate team has sold over 450 homes in Florida, Tennessee, and North Carolina in the past two years. The average house is about $200,000 and on average, they went up 9% in those states in the past year. So if you owned 10 of them, that is $2 million in real estate. To buy 10 of those, you would need $400,000 for 20% down payments.
$180,000 equity in one year
Not all of you have $400,000 to buy ten homes, but I bet we could help you get one home. If you make $100,000 per year and you learn to live off of half of it and invest the other half, that means you can buy another $200,000 investment home every 12 months. $50,000 down.
Each of those homes appreciating 9% for you would bring you in an additional $18,000. That would mean if you make $100k per year working 50 weeks and 40 hours per week, that is $50/hr. If you spend all your money and don’t invest it, that is what you make.
However, if you invested half of that last year, you already made an additional $18,000 or broken down, it is an additional $9/hr.
What did you buy instead of real estate for that much money?? For a $9/hr raise? This is the real cost of money. This is why the poor stay poor and the rich get richer.
The formula for success: Every dollar you make over $50,000 this year, save it! Invest it in real estate. Take advantage of this market appreciation. This will seem hard at first, but we can all live off of $50,000 per year. Or save 25-30% of your income and learn to live off 70-75% of whatever you make. It is crazy how fast it all adds up. You can leverage every dollar you don’t waste into 5 dollars in a property. And if it goes up 10% again this year like it did last year, that is a 50% increase in every dollar you spend!
Look at things this way. That pair of shoes for $100 is now $150 because of what it will cost you. That $10 shake is now $15. Learn to change the way you look at things, and the things you look at change.