Are you an agent who dreams of building a real estate business that makes you a millionaire? As it turns out, most millionaires today have at least seven different income streams.
Most millionaires determined early on that to amass great wealth, they needed multiple revenue streams. Multiple revenue sources can be more than a survival technique, it can be a way to build wealth.
Becoming wealthy and staying wealthy can come down to two basic habits: Accumulating wealth and retaining the wealth that you accumulate.
Having multiple streams of revenue is built on the same theory as diversifying your investment portfolio. You wouldn’t put all of your investment eggs in one basket, would you? Why do it with your income?
What are these streams of revenue? The leading ways to make money include the standard earned income from a job, taking profit from a business you may run, earnings form interest, dividend income, capital gains, licensing and royalties, and likely most important for agents, rental income in investment property.
Cassie Parks is well-versed in creating and developing multiple income streams. She started in real estate when she rented rooms to roommates in a multi-bedroom she purchased. Over the years, her rental income revenue stream has continued to expand and grow by adding in more rentals as she saves up enough for the down payment on each new one.
Owner occupying your first property can help you get started.
“Buying a duplex and living in half while renting the other half out is one way to get started on the property track,” she said recently. “It is easier to get an owner-occupied mortgage than an investment mortgage when you are starting out.”
According to Parks, if your first purchase is a duplex and the following year you want to purchase another property as a rental investment, you have a year as a landlord and can count that future income in calculations.
As the author of seven books, Parks has royalty income coming in. While this isn’t always feasible for most of us, it you have the time and talent, it can provide a stream of additional revenue. Even Parks admits it isn’t enough to support yourself, but she intends to stick with it and build her catalogue of titles.
Most millionaires have companies. You can start to build your real estate business and if you survive the first couple of years, you could be on your way to becoming a millionaire.
Author, economist and social commentator Dr. Boyce Watkins, multiple streams of income are a key way of creating financial security.
“Multiple streams of income are extremely important,” he said. “One of the ways I was able to develop multiple streams of income is through various partnerships.”
For real estate agents, that could be as easy as starting your own firm with a trusted partner. Generating an income, investing those commissions and profits into rental properties, and making several key moves can put you on the path to financial independence.