Using Real Estate and Network Marketing to create wealthMost of us are aware of the many advantages of building a Passive Income via network marketing. Robert Kiyosaki mentions the advantages of network marketing in his book “Rich dad’s guide to Investing”. Although you can earn thousands of rands with network marketing, it is not this monthly Passive Income that will make you rich beyond your wildest imagination. It is what you do with that money that will make you rich. A rich man can turn trash into money, but a poor man will turn money into trash. What do you do with your money? Spend it on trash like big screen TVs, cars, boats, etc? Or do you spend it wisely to create even more wealth? I often find people who has been working on their network marketing business for a year or two and only earn a couple of thousand rands per month. They then complain and claim that it is not working for them. A Passive Income of R4,000 per month will not make them rich! That is because they do not know how to apply their money so that their money can create them more wealth. They are often those who turn cash into trash. If used correctly you can use your Passive Income as leverage to create more wealth. Real Estate is probably one of the best and most forgiving investments there is. There are various ways of investing in real estate. Below is an example of how you can use your measly little R4,000 per month passive income to generate even more money in a short time. This is an example of letting your money work for you. One of the easiest methods to earn a short term income from Real Estate is to sign an offer to purchase on a property in a new development and then sell that property once it has been completed. When you see a new development in an area you will note that they often say “60% SOLD OUT”. Sometimes this is a sales gimmick, but mostly that is true. These units have been sold to investors. If a developer needs finance for a big development the bank requires that an “Intention to buy” on some of the units as security. Thus the developer needs people to “buy” the units even before they start building the units. The investors who buy first will get it at the best price. But the biggest advantage is that you will sign the offer to purchase today, but the unit might only be completed in a year or two’s time. During that time capital growth will take place. The unit will be worth more by the time it has been finished than at the time of your purchase. Because it is sectional title (make sure it is sectional title) you will only start paying your bond when the unit is complete. Thus you can enjoy capital growth for a year or two without paying a cent for the property. Once the unit has been completed you can now decide to either sell it or rent it out. Anybody can do this if they earn enough money to qualify for the bond. And this is where your network marketing income can be just what you need to qualify for the bond for such a property. One of the developments in Midrand where we signed on a property took just over two years to complete. We paid a R5,000 deposit to secure the unit and qualified for a bond because of my network marketing income. We enjoyed the capital growth of the property for two years before it was completed. Once completed we sold it and made R190,000 profit. Thus a R5,000 deposit returned a R190,000 profit. If it was not for the extra income I earned from network marketing I would not have qualified for the bond. Next time you look at the figures, do not think too lightly of the income you might be earning from your network. Learn to think outside of the box. There are various ways to create more wealth using real estate investments. In my eBook "Creating a Passive Income". I also wrote about the pitfalls and things to look out for. Get a copy today at www.passive-income.co.za and see how you can create everlasting wealth using these methods. By
Pieter Pretorius
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