But sometimes it seems like it is taking For-EVER! We buy a house with dreams of huge cash flow or a windfall from flipping it. And we start making money. But it wasn’t the money we thought it would be. As you rehab the property, you find new problems that you didn’t budget for. Or you can’t find a renter for what you thought you could. Or a flip doesn’t sell for the price you wanted (my flips NEVER sell for the price I want – because I want a million dollars for each one).
Does it feel like you are on the ‘slow lane’ to wealth? Well I just read a book that opened my eyes as to what so many do wrong. It taught me a whole bunch of stuff that I was doing wrong. I’m in the process of correcting it.
MJ is not selling anything with this book. He has made his millions and he is trying to help other people do the same. He argues that there are three types of people in this world:
The book is called The Millionaire Fastlane: Crack the Code to Wealth and Live Rich for a Lifetime. At first glance, that sounds like just another ‘Get Rich Quick’ book. But this one is different. It is written by a thirty-something entrepreneur, MJ DeMarco, who made about $5 million creating a website for people to find limosine service at their travel destinations.
- People on the sidewalk – The ‘live for today’ crowd. People living paycheck to paycheck and blowing any extra cash on depreciating toys, vacations, and partying. These people will never experience wealth.
- People in the Slowlane – This is what everyone has been taught to be. Get good grades, go to college, land a good job with a big company, live within your means, and contribute 10% of your income to your 401k. Then you will retire rich. Trouble is, when you finally achieve wealth, you are almost dead. You never have a chance to enjoy it.
- People in the Fast Lane – These are the entrepreneurs, the business starters. They are the ones who find a need in the market, fill it, and then scale it up to serve a large portion of the population. Or they find a need that caters to a smaller group of people at a much higher price. Either way they work their butts off for a couple of years and become very wealthy quickly. Then they have a ton of time to enjoy their ‘early retirement’.
Needless to say, everyone I’m sure would like to be a ‘Fastlaner’. I won’t spoil the book for you, but there are some great suggestions for coming up with a business idea, evaluating it to see if it will work, and ramping it up.
In addition to the book, MJ DeMarco also created a forum where people can interact with entrepreneurs who are ‘killing it’. You can receive honest feedback about your idea (and they are honest – brutally so some times). Most of the forum is free, but you can access a specific ‘Insiders’ section for as little as $5 per month.
But what about real estate? There is a section on real estate in the forums, and there are some really big investors on their trying to help other people out. MJ does not seem quite as high on real estate as he is on other businesses such as the internet, but he still thinks it is something that will produce big returns.
When I joined the ‘Insider‘ section, I found some great podcasts. Examples would be:
- A guy who has bought thousands of apartment units explained how he raises funding for his deals. His first few deals did not even require his own cash.
- Someone who has made a lot of money on the internet explained how to work with eLance to outsource programming and developing websites without getting screwed.
- There is an upcoming podcast on how to use HUD financing to buy a whole lot of apartment buildings
None of these guys are trying to sell you courses. They just want you to succeed. And they don’t mess around by talking single family homes one at a time. It really opened my mind to thinking much bigger. The site is really fun and inspirational to interact with these folks. I’ve ‘private messaged’ many of them and they have been very responsive.