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Who wants to be a Millionaire? by Karen Briscoe

Originally published by Karen Briscoe on www.hbcgroupkw.com July 21,2017

Originally published by Karen Briscoe on www.hbcgroupkw.com July 21,2017

The TV game show “Who wants to be a Millionaire?” offers contestants the opportunity to win cash based on chance. There is a more certain way – create your own millions. Owning income producing real estate as an asset class is a proven means of wealth creation.

To net one million dollars after taxes actually requires an investor in the United States initially between $1.25 to $1.5 million. Let’s assume that an investor can expect to earn on average 6% annual rate of return earn on stocks, mutual funds and other such investments, before fees and taxes. That is an annual income of $60,000 which translates into $5,000 per month cash flow. Thus if one owns an asset that cash flows $5,000 per month, then it correlates that that investor is in possession of a $1m asset.

A residential real estate investor typically can purchase a single-family home with 20% down. That means the investor owns 100% of the asset with only 20% actual cash outlay. This leverage is unique in that to own 100% of a stock or mutual fund portfolio requires 100% funds. One can buy equity investments on margin but that just allows for the future purchase, not ownership. Real estate invest property leverages the payment of the mortgage by the tenant, in effect the 80% balance borrowed.

As the tenant pays down the mortgage, in most cases positive cash flow increases. At the juncture that the cash flow is $5,000/month, then the investor owns a million dollar asset. There are some rules of thumb that are best to follow and the values will vary depending on the market area. The best returns typically peak at a $500,000 asset which earns rental income of $2,500 plus/minus per month. The rental income earned ratio to the asset tends to go down as the price of the property increases. The reason being is that a larger tenant pool exists in the lower month rental amount.

It was truly an epiphany moment the day I realized that there are many ways to become a millionaire. One is to earn one million after tax dollars which then could be invested for cash flow. Another is to own assets that earn annual cash flow equivalent to one million dollars. Once one becomes a millionaire, it is natural to want to share the secrets to customers and clients who want to be millionaires, too.

There may be additional tax benefits unique to owning investment real, please be certain to consult your tax advisor.

Karen Briscoe with HBC Group at Keller Williams is an active and experienced Realtor® in the Northern Virginia market place. She works with investors, sellers, and buyers in all price ranges.   www.HBCGroupKW.com, 703-734-0192, Karen@HBCGroupKW.com.

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Small Woodland Animals by Nicole McDermott

There’s a quote I like to share with the staff at school each year, and it’s posted in my office too:


“Think of your boss as a small woodland animal – make no startling moves or strange gestures.” (Cathie Black from Basic Black)

This is funny to many because if you know me, you know that I am probably the least likely person to be compared to a small woodland animal – or any animal, really! – but the message fits.

Your boss doesn’t want you to do things that are odd or unexpected.  Your boss wants to feel confident that when she hears from you and sees you, both in and out of the work place (and on social media, too), she knows what she’s going to get.  Your boss wants your behavior and your work to reflect well on the company or organization.  

Because if something you do is strange and startling, what will a customer or client think?

Because if your boss is feeling like your behavior is strange and startling, can he trust you?  Can your colleagues or teammates either?

I think the answer is no.  And, if there’s no trust, there’s not much of anything else…

Another way to get at this is: be consistent.

Last year, I heard a speaker say, “When people are consistent around you, they show you their integrity.”  When I think about the people with whom I work – both in my professional life and in my volunteer work – I think this quote rings true.  How do you earn respect?  How do you become seen as someone who is reliable, trustworthy, committed?  It’s by being consistent over time, living your values through your actions, focusing more on the organization or company than yourself, following through on what you say you will do – and by making no startling moves or strange gestures.

 

Nicole McDermott recently concluded her eleventh year leading Pinecrest School, a small, independent preschool through sixth grade school in Northern Virginia. In addition, Nicole has extensive experience working with high school student leaders through her community service work with Kiwanis International, and she spends a week each summer volunteering at Camp Sunshine, a retreat in Maine serving critically-ill children and their families from around the country. She prioritizes building connection and community, supporting people she loves and causes that are important to her and continuing to grow into a better version of herself. You can read more of Nicole’s written work on her blog.

 

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10 Customer Service Skills You Need to Know by Matthew Olszewski

A few decades ago  customer service was just a department within an organization. Today, that has all changed. Previously, if someone wanted to make a career in a company, they most often would choose marketing or sales. Today, the situation is different. Due to high competition in any industry, it’s increasingly difficult to find new customers. Companies that want to survive on the market must try to find regular customers. Even for small entrepreneurs who saw the opportunity for additional earnings, they understood the importance of caring for their  customers. Today, customers have greater choices and are more demanding than ever before. Therefore, taking care of customers can give you an edge over your competition.

To win customer's trust you must have the appropriate knowledge and skills. Of course, the knowledge contained on this infographics is good at the beginning. If you are serious about your business then you should be more broadly interested in this topic.  There are many books and courses on customer service skills on the market today, you will definitely find something that will help you develop your business in this area. Excellent customer service needs to become one of the main pillars of your business.

Something about Matthew Olszewski.

I'm the owner of www.mattsfactor.com blog. My interests are related to personal development and business. I became interested in things associated with entrepreneurship, becouse a lot of satisfaction gives me creating business strategies and their implementation. Makes me fun to experiment with new solutions that I can use in my business.

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