SINGLE FAMILY HOUSE
by Jack Miller
Success Isn't so much a matter of Winning' as It Is the Result of Not Losing.
One of the most successful people in the world is Warren Buffett.
His Rule #1 is: Never lose money.
His Rule #2 Is : Never forget Rule #I.
We may not be able to avoid losing money, but we shouldn't bet more than 10% of net capital on a single venture. This way, if things don't pan out, we've still got a chance to use what we have left to recover what we've lost.
Can you think of anyone you know who has been driven out of the real estate business and had to go back to work for wages because he or she didn't understand this?
One might think that beginners run the highest risks, but the danger comes to most of us when we've accumulated enough money to play for larger stakes. That's when we get into games that we really haven't prepared for; that we don't understand; in which the players know more than we do and can play better.
As a result, we lose both our 'stake' plus all the years it took to accumulate it. At worst, having once lost everything, we must forever remain on the sidelines as financial failures, too heartsick to start all over again. At best, we have to once again begin the slow, painful process of trying to accumulate capital.
Try to think of someone whom you personally know who proves this financial maxim.
Buying Properties You Don't Understand
Investing in large, expensive, and complicated properties for the average investor is an invitation to financial disaster. Consider the variety of possibilities from raw land to farms to single family houses to mobile homes to condos to apartments to warehousing to retail and office space to time shares. Each requires completely different skills and Insights, yet they are somehow lumped together under the overall label: real estate.
Buying complex properties without adequate preparation and training is a major cause of failure. It demands that the investor serve a long apprenticeship or use up his or her limited cash reserves to hire capable, honest, and reliable professional specialists as necessary who are qualified. The net result is that, if you lose, you don't know why or what to do about It. If you win, you don't know how you did it; or how to do it again with another investment.
The single family house is far and away the easiest of all of these investments to understand and to use to build wealth because of its simplicity, availability, demand, finance-ability, and ease of management. Furthermore, most people already understand the product because they live in one. Many of those who have strayed from this path of righteousness have fallen by the wayside before they reached the golden gates of success.
In Success Secrets, Jack Miller shares his 45 years of experience about which things create the most success and which things to avoid. Jack already made the mistakes you so don't have to. Learn Jack Miller's Success Secrets
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Table of Contents:
SUCCESS SECRET # 1. AVOIDING FAILURE
Winning By Avoiding Losing
Trying to Hit Home Runs vs Buying Singles
Buying Properties You Don't Understand
Using Financing That Creates Negative Cash Flow
Treating Loans Like Earnings
Getting Into Bed With Strangers
Buying Out of Your Geographic Area
Buying Too Many Properties Too Quick to Manage
Buying El Cheapo Houses in Bad Neighborhoods
Buying a Job vs Building an Investment Portfolio
Failing to Learn Enough to Make and Hang on to Profits
Buying Trophy Houses vs Good Investments
Buying for Non-Economic Tax-Shelter Reasons
Holding 'Flipper' Too Long
Not Holding 'Keepers' Long Enough
SUCCESS SECRET #2. ADAPTING TECHNIQUES TO MARKETS
Analyzing and Harvesting Market Cycles to Maximize Profits
Working in 'Hot' Markets to Get More Bang for Your Buck
Money-Making-Magic in Slow Markets That Beats the Crowd
Secrets of Sustained Survival in a Choppy Market
Becoming Inflation and Depression Proof
SUCCESS SECRET #3: CREATING YOUR OWN PROFITS
Dy-No-Mite Negotiating Tips That Give You The Edge
Getting the Best Deals by Zigging When the Competition Zags
Using Creative Financing Techniques
Time-Tested Strategies That Make Money Today
Trade-Ins, Trade-Ups, and Trade-Downs
Leases that Create or Destroy Value
Options to Buy, Sell, and Lease
Partial Purchases and Sales
Created Paper that Transfers Equity
SUCCESS SECRET #4: USING 'SMART' FINANCING
Beating the Bankers at Their Own Game
Avoiding Credit Traps, Tricks, and Travesties
How to Borrow Money Smarter and Better
Creating and Selling Paper to Generate Cash Flow
Motivating Private Investors to Lend You Money
Pension Plan Financing
Trading Price for Terms that Create Cash Flow and ProfitC
SUCCESS SECRET #5: BUYING IN DISTRESSED MARKET MARKETS
Deep Discount Buying From Bankers and Their Victims
Extracting Money From Lenders and Sellers in Trouble
Negotiating Big Discounts From Lenders in Distress
Discount-Leaseback-Buyback Techniques and Caveats
SUCCESS SECRET #6: FAIL-SAFE PROPERTY MANAGEMENT
Hands-Off Management Systems
Positive and Negative Approaches to Managing Cash Flow
Increasing Your Cash Flow More Each Month
Structuring Long Net Leases, Lease/Options, Ground/Leases
SUCCESS SECRET #7: ASSET PROTECTION
How to Hold on to What You have, and Get More
Low Profile Property Acquisition that Confuses the Enemy
Using Trusts to Create and Maintain Financial Privacy
Using Corporations and LLC to Increase Take-Home Profits
Dealing With Government to Stop Problems Before They Start
Avoiding Government Subsidized Properties and Tenants
Using Contractors to Avoid Employee Liability and Taxes
Avoiding IRS Tax and Audit Problems
Legal Tax Strategies That Maximize Sale and Rental Profits
Avoiding Ownership and Management Law Suit Liability
Protecting Against Lead Paint, Radon, and EPA Hazards
Maximizing Profits in the 21st Century