Right now, there is $2.4 TRILLION in homes sitting empty in the USA. Let me type that our with numbers just so you can see how big that number really is. $2,400,000,000,000. That’s right, 13 digits. How many numbers do we deal with that have 13 digits, really? Not that many. Especially when it is attached to a dollar sign.

When a home finishes going throug the very painful and costly foreclosure process the bank adds it to their REO list. Large banks that do deal with some 13 digit numbers can have the REO packages divided into blocks that range in the $1,000,000,000′s. Yes, that’s billions. Those are then sold off to large investors for dimes on the dollar who inturn, divide their new REO package into blocks that range in the larger $1,000,000′s. Possibly $100,000,000′s. Those are then sold off to smaller investors who repeat the cycle until they are liquidating individual homes. By that time, you are looking at them selling at almost face value.

So how does one get in on a forclosed home at $.40 on the dollar? Well you can’t. Unless you happen to have 11 or 12 digits sitting around in liquid assets. But then at that point, who cares about getting $.40 on the dollar? Just go get a private island. Or better yet, just go buy a small government somewhere in Africa or South-East Asia.

So I think it’s funny when you start mentioning bigger numbers that people can still comprehend. $100,000? Easy. That’ll only get you a couple nice cars. Almost everyone I know has no problem wrapping their head around the 100K figure. Now, $1,000,000? Attainable? Yes, for most people. Maybe not in one solid chunk, but I know quite a few “average” people who have had more than a million dollars pass through their hands. $10,000,000? Ok now, we’re starting to get to the point where we’re losing people. Their eyes glaze over and the mutter to themselves “$10M? I have no idea what that would be like.” $100,000,000? Most people are now in college textbook, everning news, world markets that don’t effect me land.

In business, it’s a little different. You lose some people with big numbers. But others perk up and pay attention when you mention bigger numbers.

Here’s a good test to see if someone is cut out for business. Tell them that you are going to inherit/win/find/earn some large amount of money. Make it (semi)beleivable but make it big. People who are not cut out for business will ask what you are going to spend it on if they believe you at all. People who are into business will give you advice as to where you should invest it.

By the way, I’m going to earn $1,000,000,000

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