If you’re in real estate, chances are you either have personal or professional experience with income properties, or at the very least, have thought about investing. EXIT Realty’s Director of Brokerage Development, Janice Petteway, has been following her own rules when it comes to this topic since opening her first EXIT Real Estate Results office, and the moment she first took advantage of EXIT’s Formula of sponsoring. “I made a commitment to use residuals only to purchase real estate. I’m somewhere in the $1.2 million range of residual income and that portfolio is worth about $3.4 million in equity now,” she admitted.
She did it by being a “sponsoring machine,” as she calls it, and assigning her residual income to specific tasks, without touching it, while compounding her sponsoring and production efforts year over year. “You have to learn to put your money to work for you, so you don’t have to work so hard. I guarantee you, no matter what amount of money you earn, if you spend all of it or a dollar more, you’ll never be a millionaire,” she quipped.
Janice proposes you think about sponsoring with EXIT a little bit differently, like Jennifer Anderson did. “I had heard Janice talk about investing before and I had been interested in it for a while. I knew my residuals added up each year, but I never saved them for a purpose until I earmarked my sponsoring bonuses for my daughter’s wedding. I was able to pay for her wedding, and when I went to Janice’s 2019 Convention Breakout Session, everything clicked,” explained Jennifer, Broker/Owner of EXIT Realty by the Bay. Jennifer has since purchased her first investment property and is putting her residual income to work on a second.
Janice’s Recommended Approach:
- Learn the difference between good and bad debt, eliminating bad, personal debt then shifting to the creation of personal emergency savings. Get your personal finances in order, then turn your attention to your business.
- Create multiple accounts. Money comes into your business account and stays there to pay bills, so you know your monthly overhead. When you have six months of reserves, start a second account for anything over and above your overhead and reserves. But don’t touch it!
- Research all things income properties. Think outside the house, as short-term rental trends show people will rent out moored boats, refurbished RVs, and other tiny dwellings. Look at resources like the NAR® report on the top places where people are buying vacation homes and learn where vacationers in your town come from.
- EXIT Realty associates are encouraged to join EXIT’s Facebook Referral Network Group and set up referral relationships and cross marketing with other EXIT offices and agents in the areas and states and/or provinces which refer back and forth to yours most.
- Attend investor meetings or classes in your area, as well as read books like Everyday Millionaires by Chris Hogan, the Rich Dad Poor Dad series by Robert Kiyosaki, and The Millionaire Next Door by Thomas J. Stanley Ph. D. Learn the language and terms used in this side of the business.
- Consider learning to teach this at your office. Whether or not being an investor or landlord is for you, put your newfound knowledge to good use benefiting both other agents and their families.
There’s no other vehicle like EXIT’s Formula of residual income that can help you live mortgage free and compound your earnings faster in this business. As a real estate professional, you’re already ahead of the buying and selling curve, all you have to do is be your best client.
For stories like this and more, visit www.exitrealty.com/achiever to read the latest edition of EXIT’s corporate magazine The EXIT Achiever.