Home Business

Since the beginning of time people have been working together towards mutual goals and the people that master this concept achieve a lot more because they have a great competitive advantage. You see this all the time in families, especially families that were built on a culture of working together to buy property and businesses.

Ask yourself the question. On a salary of 50K a year and little or no savings, could you afford to buy a multi-million dollar investment property? The SBA does not do loans for real estate investing, and the bank will want to see a significant down payment and proof of current income to cover a multi-million dollar loan. Then how do foreigners with no credit or money come to our country and buy up hotels, gas stations and franchises? The answer is simple; they work together.

Now imagine you made 500K a month instead of 50K per year. Do you think you could buy houses in cash and not ever have to pay the bank a dime? Would you ever have to worry about a car payment or paying interest on your credit cards or student loans? Do you think you could buy a hotel or finance a medium-sized company? Absolutely, the trick is to get the right people to trust you.

The right people are responsible, mature, stable and reliable adults. They have good credit before you decide to help them, a stable job, and they pay their bills on time. They are also willing to make short-term sacrifices for long-term gains, because they see the big picture and what you want to do aligns with them achieving their goals. You'll have plenty of time to teach your children these things before they participate.

Fact: You will probably pay twice as much by financing your house, your car, your vacation, your business, your education, or anything else that might end up on your credit card. Another interesting thing is that large numbers of people working together are significantly more reliable and credable than an individual or even a small group. Life happens; people get laid off and get sick. Businesses have bad months, but everything evens out when large numbers of people are involved. I wrote this part because your credit is your most valuable asset. Mess up once and you'll be paying for it for 7-10 years. Co-ops that are diversified and minimize debt always have perfect credit if their Treasurer is doing their job by paying the bills and maintaining an emergency fund of six months of expenses.

Did you know that many foreign families make sure everyone owns a house, a car and gets a least a Bachelor's and usually a Master's degree or they help them buy their own business? There are usually 6-8 working adults living in one house and all the finances are coordinated by one person who is kind of like the family's Treasurer (usually mom or dad). This means that everyone in the household is contributing to help the other members to achieve mutual goals, because everyone benefits from the same treatment. I've seen groups of these families working together to buy a new house or commercial property every month in cash. This is why so many hotels, gas stations, 7-11s and McDonald's franchises are owned by foreigners. Co-ops that do this for a long time become extremely wealthy in assets and those assets can be leveraged to generate additional income to help the members achieve their goals faster.

So you're probably thinking, "there is no way I could live with that many people and trust someone other than my mom with my paycheck". I would feel the same way in most situations, but what if you lived in a huge multi-million dollar mansion and you had plenty of personal space? That would probably make your decision easier. What if someone gave you a 5-star credit rating and an ivy league education; how would that change your opportunities in life? What if the person handling the finances had excellent credit and was required to pay for an insurance bond to cover the full dollar amount that they were responsible for? That would make trusting them a no-brainer because the insurance company would be responsible in the event of a theft and the person who did it would be convicted a felony. What if there was a written guideline or agreement that was created by all the members democratically to pay shared expenses and issue an allowance based on income? Then there would be a combination of working together without losing the freedom of being able to do whatever you want with your own personal money.

Money and wealth may not be the most important things in life, but it sure does give you more freedom by giving you more choices and it's a lot like oxygen if you don't have it. Building a co-op is all about working together to reduce expenses and using the net income after personal spending money to help each member build and sustain wealth. It's about enhancing stability and the attainment of your goals by working as a team.

Article Source: ArticlesBase.com - Building A Co-Op To Build And Maintain Wealth