Part Four: Another Way
You knew I’d eventually bring this thread back to real estate investing. Didn’t you? Well, of course I would. Let’s not talk about the fact that it takes me three posts to describe a two-part solution.
Long after I graduated from university, I started investing in real estate again. I get to meet a lot of wonderful people from very diverse backgrounds. I once met a young woman who wanted to be a lawyer. Her family could afford the tuition, books, and dorm expenses for her, but it put a real strain on her parents’ finances.
I met her at a real estate meet up. She was still attending university, but she was also working part-time as a wholesaler.
As a quick reminder, wholesalers study the local real estate market. They find good deals and get the properties under contract. Then they sell the contract (Not the house! That’s a very important distinction.) to another investor at a higher price. They pocket the difference as their share of the profit for finding the deal in the first place. Wholesaling works because deals are so valuable. There is always more money available than deals to put that money to work.
Back to my story….
By wholesaling a few contracts a year, this young woman was able to completely shoulder the cost of her own education—tuition, books, and dorm fees. Taking responsibility for her own education took a tremendous burden off her parents.
Unfortunately, I lost track of her before she graduated. So, I can’t tell you if she went on to law school or not. She may have decided to stay in the real estate business where her pre-law education would serve her well.
How much time was she devoting to paying for her education? When I talked to her, she was spending about ten hours a week looking for deals. When she found a good lead, she told me it took her another fifteen or twenty hours to wrap it all up. If you average that effort out over a year, her total time commitment was less than twenty hours a week. Not bad! Especially when you compare it to the 50-65 hours I was devoting to my jobby job to pay for my degree and lifestyle.
My point in this series of posts has been to demonstrate that you can get a degree without going into debt if you work the system. At the same time, it’s important to remember that a degree is a means to an end, not the end in and of itself. That’s something I lost track of early on. But then…I enjoy school and/or learning.Hermann says please like and share!