I wanna share with you guys some advice I got from an 80-year-old multimillionaire.
I am working on purchasing this commercial warehouse right now from this couple, and they’re 80 and 75 years old. They’re real estate multimillionaires. They’ve been flipping houses. They’ve been owning rentals their whole life. They’ve got all sorts of income. Believe it or not, real estate multimillionaires still working at 75 and 80 years old ’cause they just like to work. If you read a book like “The Millionaire Next Door,” they talk about how a lot of millionaires, multimillionaires, they just like to work. They work, work, work.
This 80-year-old millionaire, multimillionaire, comes over to my house and we’re gonna negotiate this commercial deal. He opens the front door and this guy looks old. He’s got a big beard and long gray hair. He looks homeless, as a lot of very rich people do. At some point, they got so much money they don’t care. The guy shows up and he’s wearing his old crappy clothes. He’s got his long gray hair and his long gray beard and he’s 80, and he’s coming to negotiate with me on this deal, this warehouse.
It’s funny, he comes in the front door and he says to me right away at my office, he says, “The house next door is for sale, you better buy it.” I say to him, “Done. I already bought it. It’s already mine.” The house next door to the house that I run my office out of just came up for sale and boom, I bought it right away. This 80-year-old millionaire, he says, “Good. I’m glad you bought it. Keep it forever. You’ll never bulldoze it, just keep it forever. It’s a great investment.” It’s really cool to have an 80-year-old multimillionaire.
I’m 31, so this guy’s 49 years older than me. He can see the future. He knows that buying the next door house or getting a bunch of houses in a row in the part of town I’m in, he knows that’s gonna be a great investment. He even said, “I’d buy that myself if I was younger.” It’s amazing talking to people who have that long-term time horizon and they’re thinking long-term. That’s something you gotta do in your life, is think, “How is this gonna be in 30, 40, 50 years?” When I bought the house next door, I didn’t even buy it at a discount. I paid full price for it because two houses in a row is worth more than one house. I don’t plan on ever selling, I plan to keep it forever.
When you’re keeping something forever, it almost doesn’t even really matter in real estate what you’re paying for it, cash flows, doesn’t even really matter what you pay if you’re holding for 30 years and you got two houses in a row. Now I gotta get a house number three, house number four, house number five. Start getting them all in a row and one day when I’m the 80-year-old multimillionaire, hopefully billionaire by then, you’ve got a whole row of houses and you can do a development. You can do all sorts of things. That’s the advice from the 80-year-old multimillionaire.
I wanna hear what you guys think about the advice. I think it’s great advice. I’ll see you guys on the next video.