The One Common Secret of the Super-Rich

[Early To Rise]

Title: Early To Rise

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www.earlytorise.com Friday, October 29, 2004 Message #1247
"I'm not a paranoid deranged millionaire. Goddamit, I'm a billionaire." - Howard Hughes
The USP that added millions to Westin Hotels' bottom line Do you have "flu-shot fever"? A question that keeps grammarians up at night	The investment that's in every multi-million-dollar portfolio What to do when a business relationship starts to go stale What the word "inestimable" means
Advertisement 2 MONTHS FROM TODAY... The skies of Tokyo will be crowded with executive jets and private helicopters. CEOs from many of the world's biggest companies -- Gillette, Wal-Mart, and Proctor & Gamble included -- will meet at one of Tokyo's elite hotels for a top-secret conference. Why the secrecy? A compromise on a new technology will be reached at this meeting that could be worth as much as $600 billion to the companies attending. Learn more here... to find out how to invest before they do.   Wealth The Profit Potential of a Unique Selling Proposition (USP) Hotels are in the business of selling sleep. So that's the approach Barry Sternlicht, CEO of Westin Hotels, took to distinguish his chain from the competition. Sternlicht knew that travelers would respond to the promise of something better than the polyester comforters, cheap mattresses, and stiff pillows that are standard fare in most hotels. So he and his team created the "Heavenly Bed" concept. The "Heavenly Bed" is made up of a top-of-the-line mattress with luxurious linens, the softest pillows, and covered with a fine duvet and down-filled comforter. Sternlicht then focused on promoting this unique aspect of his hotels. The campaign has met with great success. Not only has Westin increased occupancy, it has lured guests away from its competitors and proven that people are willing to pay extra for a great night's sleep. The "Heavenly Bed" concept has even spawned a merchandising arm that adds millions to the bottom line.   Health A Common-Sense Approach to Avoiding the Flu Now that there's a flu vaccine shortage, an "I want what I can't get" mentality is bringing the issue to center stage . . . even though most people never usually get a flu shot. Could the vaccine help you? Maybe, maybe not. Studies have shown that the shot generally works only 50% of the time in relieving the symptoms, such as fever, hacking cough, runny nose, and body aches. The best thing you can do to avoid the flu, vaccine or not, involves good old-fashioned common sense: 1. Frequently and thoroughly wash your hands. (See Message #1070, "It's Good to Know: The Right Way to Wash Your Hands". ) 2. Get plenty of rest. 3. Eat a balanced and nutrient-rich diet to boost your immune system. 4. Drink plenty of fluids. 5. Avoid people who are coughing or sneezing.   Wisdom Is It "Anyone"? Or "Any One"? Most books on grammar aren't much help with the "any" words. Some insist that the one-word spelling is correct. Others strongly disagree, especially in negative constructions. (" Alice doesn't live here any more.") According to James J. Kilpatrick in his syndicated column "The Writer's Art," "The general rule is to employ one word for indefinite reference: 'Anyone can fry an egg.' Use two words when the idea is to single out an individual element: 'Does any one of you have a corkscrew?' The same uncertain reasoning applies to 'anytime' and 'any time.' It's 'a dress for anytime wear,' but 'Come any time between 1 o'clock and 3 o'clock.'" Frankly, I'm not sure it matters. Because whether you use the one-word or two-word form of the "any" words, the meaning is clear. And clarity is the point of any communication. Advertisement Get Paid to See the World Imagine sliding out of bed and knowing your "work" for the day is to scuba dive along the Great Barrier Reef...mountain climb in the Andes...or Kayak around the most remote of the San Juan Islands... Here's the opportunity you've been looking for. Learn more here...   Today's Message The One Common Secret of the Super-Rich (as Revealed by a Former Tennis Pro) by Justin Ford It all began with a few tennis lessons . . . Frank McKinney arrived in Florida at the age of 20 with just a few dollars in his pocket. He went to work digging golf-course sand traps for $2 an hour at a local resort. When he learned that a friend was making $40 an hour teaching tennis, Frank convinced the resort manager to pay for a course where Frank could get certified as an instructor. Soon, he built a successful tennis-pro business, targeting affluent residents of new oceanfront condominium developments. He was making $100,000 a year in his early 20s, teaching tennis and living in South Florida. Life was good. But Frank wanted to do more -- he just wasn't sure what it would be. So he decided to learn from his students. He ran his wealthiest tennis students ragged for 45 minutes of their scheduled one-hour lessons. The last 15 minutes, they were happy to just sit, sip water, and recuperate. During that time, Frank would pepper them with questions. "How did you become successful?" "What do you need to succeed?" "What are the best investments?" Since his students had made their money in many different fields, he got quite a few different answers. But he soon realized that every one of his wealthy clients had either made a good part of his money -- or had invested a good part of his fortune -- in real estate. It was the one moneymaking strategy of the super-rich. It was also the inspiration for Frank to buy his first foreclosure. He learned everything he could about real estate. Not only from his tennis students but also by reading everything on the subject that he could get his hands on. He researched the local market and attended foreclosure auctions for 10 months. Then, he scraped some money together and bought his first investment property. It was a roach-infested former crack house. He paid $30,000 for it, fixed it up, and ended up making nearly $20,000 on it. He was just 23 years old -- and that was more money than he ever thought he would see at one time! But he went on to do hundreds of these types of deals and made money on every one. Then, six years later -- still shy of his 30th birthday -- he bought and renovated his first oceanfront home. He made nearly $1 million profit on this single deal. That's a pretty quick rise to success. But the former tennis pro was only getting started. Frank continued to do bigger and bigger deals until, seven years later, at the age of 36, he built a 30,000-square-foot home on the Atlantic Ocean. And sold it for over $28 million! According to The Wall Street Journal, it was the most expensive home built on spec in "the history of the world." But it didn't remain Frank's crowning achievement. This year, at the age of 41, Frank sold one of his custom homes in the $40 million range. And that's on top of the $17 million and $7 million homes he built and sold in the last year. Frank's enormous success has been due -- at least in part -- to the fact that he discovered early the one common secret of the super-rich: real estate. Bought right, nothing produces returns like real estate. That's because of the power of leverage. A 10% rise in a property where you've put 10% down gives you a 100% return. And when you do it right, the rents from the property will more than pay for the mortgage and all other carrying costs. Plus, when you know what you're doing, there are ways you can buy property with no money down. And when you buy right, this can provide almost inestimable (see "Word to the Wise," below) profit leverage. This is why -- if you look at the Forbes 400 ("The Richest People in America") -- you'll find that more multimillionaires and billionaires have made their money from real estate than from stocks, shipping, technology, and insurance combined. Even when you look at people who've made money in other areas, you'll find what Frank McKinney discovered almost 20 years ago. The one common secret of the wealthy is that they either made their money in real estate or invest a good portion of it in real estate to become even richer. When you read Forbes' bios of the 400, you learn interesting tidbits like these: * Ross Perot ($3.2 billion net worth) has his son manage his "extensive real estate holdings." * Lowell Milken, the brother of Michael Milken (net worth of over $500 million) invests in real estate. * D.H. Murdock ($1.3 billion) was a high-school dropout who made his initial fortune building homes after WWII. * The sons of Norman Hascoe ($720 million) manage the family's real-estate portfolio. * Former cotton picker Jim Clayton ($620 million) made his fortune in mobile homes. And the list of connections between wealth and real estate goes on . . . Ed. Note: Justin Ford is the editor of Main Street Millionaire, ETR's Real Estate Investment Program. To learn more about it click here. Frank McKinney is the premier developer of oceanfront homes in the United States and the author of "Make It Big: 49 Secrets to Building a Life of Extreme Success". Learn more... Mr. Ford and Mr. McKinney spoke at ETR's Wealth Building Conference in Delray Beach a few weeks ago. A limited number of professionally mastered CDs and DVDs -- including their presentations as well as those of other top real-estate investors, millionaire entrepreneurs, and friends and associates of Michael Masterson -- is still available. To order yours, click here.)   Today's Action Plan If you're serious about building wealth, look at those you know who have achieved financial success. I'm betting you'll find they've built a good portion of their wealth through real estate. It's a powerful wealth-building tool when you know how to do it right. And no matter what business you're in -- it's something you can do on the side. So ask those who have made money from investment properties to share some of their experience and knowledge with you. And begin to study your local property market at the same time. You'll be developing a skill that can create far greater wealth for you more quickly than any other investment you've made in your life.   Advertisement Start Your Day with Coffee and a Cigarette? Sounds insane, right! Well before you give up everything you love in the name of health, click below for the real health facts. Or else you might never discover how your so-called “vices” may actually save your life! Say “no” to the vegetarians because they actually die younger. Stop water torture and prevent cancer by enjoying your coffee. Keep cholesterol levels above 200 because massive strokes soar when it’s lower. Heart attack risk plummets 300% when men eat more red meat. The road to real health is easier, cheaper, and more pleasant than you dared to dream! Learn more...   Business Skills Actively Manage Your Business Relationships Managing business relationships can be easy when personal chemistry is strong. But when it's not, learn to ask questions. "When people learn more about each other, bonding can take place," says A.J. Wasserstein, CEO of ArchivesOne, Inc. "Never let any relationship -- internal or external -- go stale or unmanaged. People like other people who express a genuine interest in them."   Word to the Wise Something that is "inestimable" (in-ES-tuh-muh-bul) is invaluable -- impossible to estimate or compute. Example (as used in Today's Essay, above): "And when you buy right, this can provide almost inestimable profit leverage." Michael Masterson Copyright ETR, LLC, 2004 ALL CONTENTS OF THIS E-MAIL ARE COPYRIGHT 2004 BY ETR, LLC. ALL RIGHTS RESERVED: REPRODUCING ANY PART OF THIS DOCUMENT IS PROHIBITED WITHOUT THE EXPRESS WRITTEN CONSENT OF EARLY TO RISE. Protected by U.S. Copyright Law {Title 17 U.S.C. Section 101 et seq., Title 18 U.S.C. Section 2319}: Infringements can be punishable by up to 5 years in prison and $250,000 in fines. Are you having trouble receiving Early to Rise messages? 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