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Why I Left Real Estate For Network Marketing

I get this question all the time, people asking me why I left real estate for network marketing. I will share with you what led me to that decision and why I have never been happier. If you are in real estate right now, you may want to look away or close this blog very quickly as this may just convince you that you should also leave!

How I Got Into Real Estate

I read my first book on real estate in April of 2004. The book was titled Building Wealth by Russ Whitney. Russ is someone I have since met and a very sharp guy and that book is excellent. I then read Robert Kiyosaki’s Rich Dad, Poor Dad. I was working as a database administrator for an insurance company and had come to the conclusion that it was a dead end job.

Why was it a Dead End job?

The job was paying me $80,000 a year to be responsible for using software to cleanse address data and take that data and create usable resports. I saw people get laid off around me and also saw myself having zero residual income and really, no freedom to do what I wanted to do. After reading my first book on real estate in April, me and a partner started buying rental properties in low income areas of Southwest Florida for cashflow. Cashflow is the difference between your rental income and all of your overhead (principle, interest, taxes, insurance, etc). That first year we purchased 37 rental units and every single unit cashflowed at least $100 but some were as high as $400 per month per unit. Being a landlord for low income rental homes is not the safest or most fun way to make a living but we could see ourselves becoming huge real estate players very shortly! I went on to form an investment company that specialized in flipping homes and me and my partners in that venture flipped over 200 homes with very little risk or overhead.

What happened?

When values started decreasing in real estate, it started getting tougher to sell real estate, so, less construction was being done reducing the demand for rental homes. ALL of the units we owned that used to cashflow quickly began to cost us money each and every month. We were able to sell some but were not as fortunate with others. It wasn’t the values dropping that really hurt the house flipping business, it was the increased toughness for getting financing for investors that made what we were doing almost impossible. I stopped flipping homes back in 2008 and started speaking on real estate around the country and selling real estate investor education systems.

Residual Income is the Key

I got into real estate to create residual income so that I could have more time freedom. I since realize that real estate is actually a very high risk way to create residual income and there are easier and less risky ways to have residual. Flipping homes, like speaking, generated some very nice checks to me but, the minute I stopped doing them, so did the income. So many Americans do the same exact thing…trade dollars for hours! Trading dollars per hours is the best dream stealer out there folks, if you learn one thing from this blog, learn that you want to be involved with opportunities that have the capacity to pay you residual income, long after you worked the business.

Why Network Marketing?

To me, network marketing combines the best of both worlds of real estate. You get the ability to create a residual income stream but without the risk of being overleveraged or risking a slip and fall or dogbite lawsuit. You also can generate nice checks up front by recruting, albeit, nowhere near as large as real estate at first but over time you can get to a serious monthly income through real estate with very, very little risk.

What is Happening in Real Estate For Most Right Now

I still have lots of friends and associates in real estate, here are some observations I have noticed from many of them (not all, but most)

– They are working harder than they ever have, but making less than they ever have

– Financing is harder than ever and also ever changing

– The people that are searching to buy real estate know that it is a buyers market and have no problems wasting people’s time, having people spend lots of time with them, just to either not buy, or buy from another agent of investor.

Network Marketing Is the Trend Right Now, it’s like the real estate market of 2004-2005!

Face it, you know lots of people around that you NEVER thought would do network marketing that are now doing it. When the economy struggles, network marketing thrives. I talk to people all the time in the health care industry that is terrified of what is going to happen to their jobs and or income with what is going on in Washington. College graduates are coming out of school only to find a lack of jobs and a lot of them go back in, digging themselves further in the hole. Not everyone can afford to purchase a franchise and the thought of working in Corporate America when 20 of the largest corporations have gone bankrupt in the last 18 months is a scary thought to some too. Network marketing gives anyone the chance to create an income. It is not get rich quick but it can make you rich overtime which no job could ever do. If you consider wealth being partially calculated as how much money comes in regardless of work output like I do, then, it is also difficult to become truly wealthy with real estate.

Bottom Line

If you are considering network marketing in this economy, you may be on the right path! There are lots of wonderful opportunities out there and I believe the timing is perfect for a whole lot of people, with very little money invested and little to no risk to beat this recession and alter their financial future!

If you enjoy this post, please do me a favor and share with others and retweet and coment.

To Your Abundance!

Ray Higdon
(239) 471-4800
[email protected]
Southwest Florida Twitter Dude

Best Home Based Business, Period

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