As I watched one of our favorite Christmas movies, “It’s a Wonderful Life”, I couldn’t but help notice the real estate and business lesson sprinkled through out it: With Mr. Potter, the evil real estate mogul and George Bailey, the charitable-lending pauper.
If you don’t know the story, I highly recommend watching it.
But the lesson to be had from it, come from what NOT.
Although George was a charitable man (something we should strive to do), he was a poor businessman.
*1. He never went after what he wanted… poor George, always at the whims of others. He had big dreams of traveling the world and building for big cities but never got there. I’m a big proponent of creating your income and business around the lifestyle YOU want… Not what others want.
*2. He had nothing to save himself if there’s ever a downfall… When his clumsy employee lost $8,000 of the business’ loan funds (equivalent to $110,000 today), George had to quivel to the “scrooge” of town, Mr. Potter (who’s the one that actually stole the $8,000) to ask for help and a loan so that he wouldn’t have to go to jail for security fraud. George had no security for this loan expect for $500 of equity in life insurance to back up the loan. No house, no cash…. nothing. He’s was broke. No other assets.
*3. He relied on one source of income…. One is a dangerous number. If it disappears (which it almost did a couple of times), he’ll be in ruin. His family would have to go hungry, while he searches for a mediocre job just to put bread on the table.
But, poor George Bailey wasn’t all that screwed up with business.
He had something else going for him.
At the end of movie there was one thing that every good business person should have…a good brand.
The town flocked to him to hand him cash when he was at the lowest of the low.
The town respected him.
People handed him money for his business (the business of providing affordable loans to first time homeowners), without question.
He had built his valuable “brand” up overtime with constant giving, friendliness, and respect.
Mr. Potter, the shrewd, was completely missing this. And the only “value” he can give to the market was when people were in absolute need with no other choice but Mr. Potter.
That’s a horrible position to be in; it’s a business that only operates because there are no other competitors. I’d rather be able to bring the market to me because of desire rather than need… that skill can be multiplied anywhere once you learn it.
So, there’s the lessons of today… and I’d like to mention an event going on in less than a month.
I get no monetary benefit from this, but if you’re going to be in Palm Desert, Southern CA (or willing to drive out there) during January 19th-20th…
… I highly recommend you take Andy and Bills weekend class.
Bill Tan is the best qualified to teach the financial calculator, and it’s a tool you can’t have without if you’re investing.
And Andy teaches how to cash flow with mobile homes using his system.
Take it, so you don’t ever have to worry about being in George’s Baileys shoes, who had no wealth or assets to back up loans when he needed them, and no multiple streams of income in case shiet hits the fan.
You can check it out here: www.millionairemakersnextgen.com/events
P.s. I won’t be able to make it to Bills class (if you’ve already taken his class, I recommend a second or even third run at it). But, I might be in Andy’s again.
p.s.s. Merry Christmas!
Paul do Campo’s views and opinions do not represent the opinions and views of any speaker of MMTNG.
16059 Begonia Ave
Chino CA 91708
USA
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