Many folks think that Arnold Schwarzenegger made millions of dollars and claimed fame after being a body-builder and later a movie star. While there’s no question that the Austrian weight-lifting celebrity did definitely enjoy a Hollywood career with hit action movies, he was a millionaire before he started acting. In fact, what very few people know is that Schwarzenegger actually made his first big money investing in Los Angeles real estate.
From Weight Lifting to Property Investor
The now former Governor of California took his early sports awards from body-building, as well as the income from name and magazine rights, and he invested it early in commercial real estate during the 1970s. Doing so, Schwarzenegger was able to ride a serious demand wave forward, reinvesting as he went and re-stacking his positions in new properties. That investment decision, made while he was still competing and winning the title of Mr. Universe, literally made the famous Austrian his financial success in real estate before Predator and slew of other movies he produced afterward gave Schwarzenegger lasting film fame.
Two Ways Towards Financial Success: Business or Real Estate
In the U.S., it has remained a well-known principle that people who find new financial success do so through one of two tracks: starting and growing a successful business or investing in real estate. While both utilize supply and demand in markets, Steven Taylor LA points out they operate very differently and have very different levels of risk.
In fact, one could easily argue that real estate may be the simpler of the two. The focus is mainly on choosing the right property, maintaining it and financing during the holding period, and then selling for a higher price. Businesses involve a lot more, including employees, supply management, facility management, payroll taxes and workers’ compensation costs.
Property Can Seem More Complicate, But It’s Not
However, Steven Taylor Los Angeles expertise notes that the amount of money that is involved with a property is what makes it seem more challenging than starting a business. It’s true, especially today, a business can be started with a lot less. But one also has to think about all the time, energy, resources and more spent on making that business successful in the same amount of time it takes to buy a property, hold it, and then resell it for a higher price (which actually could be even a shorter window). Probably the only comparable property holding to running a business would then be an income property such as managing an apartment building versus real estate for pure investment.
So, next time someone says American success is based on business, know that the real truth may very well be property instead. After all, that is why the American founding fathers were so specific about property owner rights being protected from the British crown, not fur and tobacco businesses. Read more interesting articles on Theflipbuzz