Each of us has different personality quirks, different attributes, different talents, and different family and financial resources. It's easy to try to emulate inspirational people, but it usually doesn't work out because of these differences. A more rational course would be to take the time to really analyze what it is that you like to do and can do, or could learn to do.
Sooner or later, you'll make so much money buying and selling as a real estate dealer that you'll start looking around for tax shelter. The most obvious solution is, instead of buying low and selling high in rapid fire succession, to buy low and sell high in slow motion. By holding a house as a rental and reaping the income, tax-shelter, amortization, and depreciation benefits it throws off, you'll not only reduce the amount of earnings that are siphoned off by income taxes, but also build a solid retirement income when you decide to stop wheeling and dealing. Seller financing offers the best opportunity for achieving this.
Let's take a moment to review the effect of economic cycles on investments. Today with a low inflation rate, low interest rates, and booming real estate markets, it's difficult to remember that markets move in cycles. Good markets are followed by inflated markets where development and construction create too much product, so sales slow down. Unable to sell their product, builders go broke, creating depressed markets. Entrepreneurs rush in to buy on the cheap, creating more demand. This makes sales pick up, and we're back to good markets.
Nobody hits a homerun the first time that they come up to bat, nor should you expect to be able to make high yields until you learn the ropes in any investment. I had to pay hefty dues to learn everything I've taught others to do. They paid good money to learn at seminars. I only wish I could have done that too. I paid a lot more, but even at the prices I endured, it was all well worth it.
Finding I.D.E.A.L. properties is a numbers game. Many people step up to the plate expecting to hit a home run in the investment game their first time at bat. They quickly become discouraged and either settle for marginal properties which give them little joy and/or profit at the cost of much time, expense and pain; or they just quit and try something else. PATIENCE is your most valuable personal attribute if you can cultivate it. Acquiring the right properties should be a long term objective toward which the erstwhile fledgling capitalist steadily plods on his quest.
Continue reading “Don’t Look For Properties, Prospect For Sellers”
In a way, an Option is more or less a bet between the Optionor (the person giving the Option) and the Optionee (the person acquiring the Option). In a typical situation, the Buyer pays the Seller for the right to buy a property at a price and under terms for a period which they can agree on.
Absent of personal or financial duress, with a Call Option, the Seller is accepting something of value from the Buyer because he or she feels that the market has peaked and an offer of a higher price during the term of the Option contract is unlikely. Conversely, the Buyer believes that the price will go up over the same period.
Continue reading “Options Can Capture Most Real Estate Benefits!”
The 2013 CashFlowDepot Convention will be at a tropical paradise on the shores of the Pacific Ocean.
The Bijao resort is about 1 hour away from Panama City Panama in the town of Santa Clara. It was specifically chosen as the ideal place to host this year’s event because of the amenities at the resort. It’s an all-inclusive resort, meaning your hotel room, food, beverages (even adult beverages), and all entertainment are included for one low price.
Continue reading “Mix Business With Pleasure At A Unique Exotic Paradise”
Everyone is afraid of something. Everyone can remember being afraid of the dark as a child. As adults, many are afraid to sky dive; or to drive in traffic; or to confront authority figures; or to go door to door to cold-canvass for listings or purchases; or of speculating on properties out of their local area, or of lending money to entrepreneurs who buy, fix-up, and sell houses. Jack Miller identified the 20 things which hold people back from success in a real estate business and wrote about the solutions help people conquer each fear.
A long time ago, Wade Cook was a real estate guru. Before that he was a taxi driver. He said most taxi drivers waited for the big fares so they could work less and make more… or so they thought. On the other hand, Wade liked to get all the little fares. The fares his competition didn’t want anything to do with.
There has to be a note of cynicism or pessimism in every deal – if for no other reason than to make the negotiator prepare more thoroughly. Remember, you’re best results will be obtained in a noncompetitive environment. To the extent that a deal seems impossible, your competitors will abandon attempts to make it, thus leaving the field to you. On the other hand, it’s crucial that you not waste time on a deal that’s going nowhere. There’s an old saying that ‘buyers are liars’. So are sellers when it comes to revealing the true purpose of their entering into a transaction.
