The Ten Roads to Riches: The Ways the Wealthy Got There (And How You Can Too!)

Learn

to

love

leverage.

It superjuices return.

160 The

Ten

Roads

to

Riches

They

borrow!

Done

right, leverage

super juices profit.

Done

wrong, losses and

humiliation are

massive-beyond

total. Isn't

borrowing risky? Sure, if you do it wrong.

But this road requires leverage.

If

you're debt-averse, stop now and

flip to another road. Otherwise, overcome

your

debt

fears. Learn to

love leverage to achieve land baron success.

The

Magic

Here's how the magic works: Suppose you

put

down 5 percent on

a $100,000

property-$5,000.

In five years, you sell for $125,000.

Ho

hum-a

25 percent gain, just 4.6 percent annualized. But no!

You only tied up

$5,000-that

$25,000 gain is actually 500 percent

and 43.1 percent annualized. Magic!

Yes,

you had interest payments

on the

debt-we'll

get to that. And if the value fell you would lose

your $5,000. Leverage goes both ways.

The

key is finding a good

value you can monetize

that

others don't want. You must turn prop-

erty into a money-rendering machine by monetizing it.

MONETIZE

IT

Here's how. But first, a disclaimer:

I'm

no land baron. Yes, I own

over $100 million

of

real estate, mostly buildings my firm uses. But

it's my wife Sherri who's the family land baron.

In 1999 two men bought 1450 Fashion Island Boulevard,

a then 15-year-old, 104,000 square foot Class A office building

in San Mateo, California, at the intersection

of

freeways 101 and

92-the

crossroads of the San Francisco Peninsula connecting San

Francisco to Silicon ...