Real estate profits are created every time we buy, fix and flip a house.  Real estate profits are created every time we execute a lease option.  Lease options sometimes create real estate profits twice; once when you get your option consideration and once when your tenant/buyer exercises their option and cashes you out.  Each of these events can produce a healthy check.  Whenever you get one of those nice paydays, have a plan for it, don’t just let slip through your fingers…remember you’re in the wealth building business…so do it!  Here’s a formula one of my mentors shared with me and I’m happy to pass it along to you…

10% to your church or favorite charity

You’ll get it back many times over. Some people say you should give til it hurts. I think we should give until it feels good!

10% to splurge on your family

Their love and support helps you succeed. Most entrepreneurs tend to be pretty intense at times and single minded at others. Celebrating your successes with loved ones will only make them more supportive as you grow your business.

10% for continuing education

Keep investing in your skills! Every dollar you invest in your education generates a huge return. While my experience is anecdotal, I anticipate about a 1000 fold return on every dollar I spend on education.

70% to reinvest in the business

I’m not saying don’t pay your bills. But I’m recommending you don’t go out and buy the new car, the new boat or some other, as Robert Kiyosaki calls them, “Doodads”. Invest in the growth of your business by increasing your marketing and improving your ability to do deals!  Use those real estate profits to build wealth and one day you might be truly amazed at your results!