The Making of a Millionair
Dear forum Friends.
How to become a Millionair that is the Question. It has been over here and I am
sure it is now in China also. Of course when I came to Canada a million Dollars
was much more in terms of purchasing power than it is today. Something like 20 times more. Nevertheless a Million is still considered a lot and is the prize in
lottery and game show.
I will describe how one New Millionair got that way. The man was a simple minister. A Christian working as an Evangelistic Missionary in of all places Rome. As
a Canadian working abroad, he thought he should buy a house in Canada for the time when he would retire. So about 35 years ago he bought his first house. An older one family house downtown Kelowna. A downpayment of say 15 % and a mortgage paid out of the rent. That first house a that time cost about $ 5,000.
Later he finished the attic with another small apartment. Now he got more rent.
Next after a couple of years he had saved another downpayment and bought a two family house, side by side, which is called a duplex. Again the rents covered the
mortgage. This time I think he paid about S 25,000. He engaged a property manager to look after collecting the rents and making payments and arranging for any
repairs. All this time he was in Rome establishing an Evangelical Church in the
shadow of the Vatican. Odd is it not? After about five years he was ready to buy
the next building. A duplex again. The rents to cover the mortgage. 1995I took over as his property manager. The rents increased over time and the value
of the buildings also. Last year he sold the oldest building and made a Capital
gain of $ 200,000. The mortgage had been paid off many years before. ( It usually takes between 20 and 25 years to pay a mortgage off).
This year he is selling the other two buildings, because he is now old, and wants to arrange his affairs to help his heirs. He sold the last duplex he had bought at a profit of over 400,000 and the other building will go before the summer is out and again it will be for over 450,000 gain.
I had to deal with the tenants, who now have to move, so that the new owners can
increase the rents. This I did with tact and incentives to make no bad feelings
. Yet when I spoke with one tenant he said to me:" Why that guy is a Millionair
now!" Then it dawned on me, that it was true. Here was a new Millionair. I had not thought of it like that before. He also said to me:" I lived here long enough to pay him over $ 19,000. Of course the new rent will be double, of what he had paid monthly.Now he woke up and bought a house of his own. Of course also with a mortgage and a small downpayment.
I know and know of a number of Millionaires in my town. I can assure you that 80
% made their fortunes with Real Estate. China is now undergoing tremendous changes with great opportunities in real estate. So how about it. I showed you the way. My great teacher of business said:" First buy the house you are in and then
buy the house next door. " He meant of course do not go to buy in a local where
you are not familiar. Or you might find yourself cheated instead of on the road
to become a Millionar.
Well my best wishes are with you. Uncle Ben
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