There are times when the smartest investment is what you make in yourself.
5 min read
The opinions expressed by employees are personal.
Before telling this story, I want to say that I used the student loan mentioned to pay for my studies. With this in mind, let me detail how that monetary sum gave way to a multi-million dollar company , reinforced by a strong discipline and leveraged opportunities.
As founder, most people know me for me. But in reality I started a property management company three years before launching my own company.
Recently I was reviewing my files and I came across papers from an old university loan that I took out to do the doctorate. It was 1982 and had applied to the USC. I wanted to do my PhD there, but I also had to figure out how I was going to pay it if they accepted me. A few years ago, I had been accepted to Occidental College for the master's degree. They had offered me a 50 percent scholarship, but I couldn't pay the other 50 percent (my family couldn't help me either). So I went to a public university that I could afford. And although I didn't know how I was going to be able to pay for the PhD program at USC, I didn't care. It was my goal, and when I applied, they accepted me. I received some scholarships, but my share of the tuition was still huge.
At that time, I had a full-time job in LA, but I still didn't earn enough to live and also pay for the doctorate. So I took another job and worked as many hours as possible to save enough to pay a semester of tuition. I was surprised to realize that a semester of PhD cost more than my entire master's degree.
I worked two shifts and applied to a $ 5,000 student loan to help me cover the semester at the university of my dreams. I had no idea if they would give me the loan or not, but I applied anyway and continued working in case they did not give me the loan.
A few months later, just before starting the doctorate, I was approved for the credit. The thing is that I had also managed to save that $ 5,000 with my extra work, so I had $ 5,000 saved in cash and $ 5,000 available in a student loan. What should I do? Should I use my effect to pay for the school or use the loan, which had a very low interest?
I knew that I could not continue to work so many hours for years to come, so I decided to use the loan and use the $ 5,000 that I had saved for the down payment of an apartment. And that was where my adventure in the real estate business began.
You see, a few years later I changed that apartment for a house. Then, years later, I exchanged it for a larger house, which I then exchanged for two houses. Eventually, those two houses ended up paying 50 percent of a commercial property he was building in Texas.
The original loan allowed me to take my $ 5,000 in cash and become a commercial property with a value of $ 1.8 million. Of course, my wife and I made other investments over the years that turned this small business that I started, into a Multi Millionaire business with nine commercial properties and a ten tenants.
All this happened because I got a $ 5,000 loan (and of course, because I worked very, very hard to earn money and invest it, instead of spending it on things that wouldn't matter over the years).
By the way, I finished paying all my university loans years ago, with everything and interests. I felt proud that day. However, four weeks after doing so, I received a letter from another university that said: “Congratulations Dr. Misner, your daughter has been accepted to our school. You can access our portal to make payments in your favor. ”
But now … We don't need college loans anymore.