A New Wealth Building Strategy: "Get Rich Slow"

In a world driven by instant gratification and quick success, it can be uncommon to hear someone tell you to “slow down” when it comes to building wealth. In fact, most of what we hear tells us quite the opposite. Get-rich-quick schemes still reign supreme even in the real estate industry, from those “we’ll buy your house for cash” signs seen in most cities, to crowd sourcing investments, or house flipping seminars. Sure, some of these actually work, but in most cases the risk outweighs the reward, or the work required to oversee your investment is like taking on a second job.

So how does Fulcrum recommend their clients get rich?

Co-Founder and CEO, Ty Voyles, has a different, simpler approach to acquiring wealth: Get Rich Slow.

“Get Rich Slow” is Fulcrum’s wealth building strategy for households that want to build long term, generational wealth, and do it passively. How does it work and what are the basics of “Get Rich Slow?” We interviewed Ty to get the scoop on this wealth-building strategy.

First, for those who might be new to Fulcrum, can you introduce yourself?

Sure, my name is Ty Voyles and I am the Co-Founder and CEO of Fulcrum. I got into real estate in 2009 with an initial focus on the residential Greater Washington, DC market. I found that most real estate agents worked as jacks-of-all-trades and moved from deal to deal. When we opened Fulcrum, we set out to do things a little differently. We looked for colleagues who had specialized skills in certain aspects of real estate such as acquisition and negotiation, and we focused on building deep, life-long relationships with our clients.

Naturally we gained a reputation as a client-centric firm, and from that success we built ourselves into one of the country’s highest selling companies. As we grew, we focused our growth on models and systems, unlike many of our peers who focused solely on sales. The result is that we built the processes where sales are the result of service.

We approach real estate from an organized, project-management like fashion to make things as easy as possible for our clients. Each step in the process is mapped out to match our clients needs and wants. Communication is key to ensuring that everyone is on the same page and center on the client’s goals. Over the last 10 years, that focus has helped us serve 2,200 clients, sell over $1.2B in real estate assets, and track a course to maintain our success.

Fantastic. So can you explain “Get Rich Slow” to us?

“Get Rich Slow” is a simple wealth building strategy I use with many of my clients to map out their path to wealth and prosperity. I don’t think many people know this, but the fastest way to accrue wealth is to own your own home. In fact, according to a recent study by the Federal Reserve, the median net worth of U.S. homeowners is 40x higher than the median net worth of renters. (Source) And that’s not even taking into account things like equity or appreciation!

Our goal is to help people not just find a house, but to build long-term, generational wealth that can be enjoyed for years to come, and real estate is one of the most direct paths to doing that.

Why is “Get Rich Slow” a good strategy for building wealth?

Well, it’s the definition of a SMART goal. We love acronyms, so here’s what SMART means to us.

• S: Specific - We work with our clients to specify their wealth building goals. The wealth goals can be whatever the client needs: saving for retirement, paying for college, determining how to live on passive income, even funding annual vacations. This is the “why” of our goal.

• M: Measurable - Each goal should have a corresponding way to measure success. Typically this is a number. It’s the “what” of our goal.

• A: Actionable - This is how we make progress toward your goal. You actions should drive the results, and you should know what actions do that. If you do these things, the result flows from it.

• R: Realistic: Ensure your goals are actually attainable. Yes, dream big but don’t start with something that’s such a moonshot that it feels overwhelming. Goals can and should be adjusted up over time, but we want to start with something that we can achieve…and see getting closer as we progress. Remember, it’s “Get Rich Slow”; It’s a long game.

• T: Time-Bound: And finally, despite this being a long-term goal, you still want to make sure you give yourself a deadline. Set a timeline to start. Set milestones along the way. And set dates for raising your goals and performance.

And you shouldn’t be on your own determining these goals. Work with your real estate agent like you would a financial planner. Just like you set goals in the stock market, a savvy real estate agent will help you ensure you’re setting realistic goals that you can smash.

I understand “Get Rich Slow” is a long game, but how long are we talking?

While this is a long-term goal, you should start seeing results in the short term - especially when compared to renting. The first step is to become a homeowner. Over the first three years of new homeownership, you should start to see calculable benefits in your overall finances, tax savings, wealth accumulation, and asset appreciation.

Once these start to happen, or you grow your savings through regular income or bonuses, you can look at the second step: buying rental properties.

Be real: How much work will a homeowner have to do to “Get Rich Slow?”

Very little work, if we’re being honest. Once you have a wealth-building strategy, we recommend you revisit it with your agent and/or financial planner on an annual basis. This review should be lead by your agent/planner and should be able to give you insight into questions like: “How much has my home appreciated?” or “What is my current return on investment?” As you acquire more investments, you may have to consider bi-annual or even quarterly reviews.

What are the first steps for someone who wants to “Get Rich Slow?”

Step One: Reach out to a real estate agent. Make sure it’s one that understands “Get Rich Slow”. You’ll want an agent who can show you the numbers and take on the project management of your strategy. They should have a team of people they work with to guide your decisions such as lenders, attorneys, property managers, and service providers. And they should be able to easily answer questions like:

• Do they understand wealth building through real estate?

• Do they have investment experience?

• How much will I realistically spend?

Step Two: Build relationships with mortgage professionals. Having an existing relationship with a mortgage professional will help when it comes time to talk about money. If you don’t have an existing relationship, ask your agent to connect you with a few of their contacts.

Step Three: Take your lender’s pre-approval letter and find a great place with your agent!