There are few books of basic wisdom that endure for generations. One of these books is The Richest Man In Babylon, first published in 1926.
We have heard, again and again, the critical importance of putting aside a share of our income for investment.
There are a lot of ways to build wealth, but there is a simple, sure way that can always work. It is simply to develop the habit from a young age of saving a share of your income, say 10%. Paying this amount to your investment account must become the same as paying your monthly rent or mortgage payment.
Developing the habit of saving money should be developed the same as the habits of bathing, washing hands before a meal, or shaving.
If you can't have certain luxuries now and maintain your savings ritual, postpone the luxuries now so you can enjoy them and financial security later.
I said this method is simple, I didn't say it was easy.
These are the lessons that George S. Clason drives home again and again in the parables of The Richest Man In Babylon.
Here is an excellent graduation gift for your child or grandchild.
If you haven't heard of or read The Richest Man In Babylon yet, maybe this is a good time to get a copy for yourself and read it.
Tuesday, November 18, 2008
Wednesday, September 3, 2008
Points I Wanted to Share
Here are some points I wanted to share:
1) Real Estate is an imperfect market. It's not like the stock market where you know exactly what your property is worth at that moment. This uncertainty creates opportunity.
2) Right now the amateurs are heading for the sidelines. That leaves this market for the experts. The competition is mostly gone leaving plenty of opportunity. That being said, properly priced properties are getting multiple offers. In the early and mid 2000s, I constantly heard "I can't wait for the Buyer's market. This seller's market is crazy!" Guess what? The buyer's market has been here for about a year but won't stay forever.
3) Banks have been busy the last year clearing out their bad mortgage inventory. It's estimated that they have about a year or less to clear most of these houses off their books. The banks won't have any, or very little, inventory in the future. That's their goal.
4) Bank Foreclosure and short sales - ALL these houses are listed by Realtors and are easily available to the public. Realtors are required by the bank to represent the Buyers. Don't be fooled by a service that will charge to let you into the secret door to see these properties. We have access to all properties. Some are great deals; most are not for a variety of reasons (location, condition, etc.). Let our team weed out the debris and find you the diamonds in the rough.
5) Real Estate is a necessity. Everyone needs a place to live. Many people can't qualify or afford property ownership. This creates a huge pool of renters. The end of this decade and into the next decade will be a Back to Basics decade. Your investing should follow this approach. Concentrate on housing Americans.
If you're motivated to create wealth, then call or email us for our Great Deal list.
Email us here
1) Real Estate is an imperfect market. It's not like the stock market where you know exactly what your property is worth at that moment. This uncertainty creates opportunity.
2) Right now the amateurs are heading for the sidelines. That leaves this market for the experts. The competition is mostly gone leaving plenty of opportunity. That being said, properly priced properties are getting multiple offers. In the early and mid 2000s, I constantly heard "I can't wait for the Buyer's market. This seller's market is crazy!" Guess what? The buyer's market has been here for about a year but won't stay forever.
3) Banks have been busy the last year clearing out their bad mortgage inventory. It's estimated that they have about a year or less to clear most of these houses off their books. The banks won't have any, or very little, inventory in the future. That's their goal.
4) Bank Foreclosure and short sales - ALL these houses are listed by Realtors and are easily available to the public. Realtors are required by the bank to represent the Buyers. Don't be fooled by a service that will charge to let you into the secret door to see these properties. We have access to all properties. Some are great deals; most are not for a variety of reasons (location, condition, etc.). Let our team weed out the debris and find you the diamonds in the rough.
5) Real Estate is a necessity. Everyone needs a place to live. Many people can't qualify or afford property ownership. This creates a huge pool of renters. The end of this decade and into the next decade will be a Back to Basics decade. Your investing should follow this approach. Concentrate on housing Americans.
If you're motivated to create wealth, then call or email us for our Great Deal list.
Email us here
Friday, August 29, 2008
The More Things Change, the More Opportunities Return Again.
I was rereading "Creating Wealth" by Robert G. Allen (written 1983,1986)...this book is a timeless piece of solid investing advice. Here's a part from the book. Notice how similar the market was in 1983 to right now. Just think if you invested then, how much your real estate would be worth now...even in thus current down market.
(From the book "Creating Wealth")
"Toto, I've a feeling we're not in Kansas anymore." So said Dorothy to her dog in the classic movie The Wizard of Oz.
By same token, we can say that as far as real estate investing is concerned, things don't feel the same anymore. The landscape has changed in just few short years. We are on new ground. The whirlwind that brought us from the fast-paced appreciation of the 1970s has left us in a world where, for the first time in decades, the average price of real estate did not keep pace with inflation. In some areas it even dropped!
Is the game over? Or is it possible to create wealth in real estate even if prices are falling?
It has never been easier to make a fortune in Real Estate.
Now, I know that this statement seems to defy common sense. But it's true. High interest rates, tight money, slow markets, and stagnant or falling real estate prices make it easier to make money real estate, not harder.
But everything you read in the media would lead you to believe just the opposite. Remember, the world almost always operates on faulty assumptions. And that includes the media. The key to making money in bad times is to use your common sense and to do the opposite of what the world is telling you to do. You need to understand the fundamental reasons that make an investment tick. Then you can keep your head when all about you are losing theirs."
Read Creating Wealth for greater investment understanding.
(From the book "Creating Wealth")
"Toto, I've a feeling we're not in Kansas anymore." So said Dorothy to her dog in the classic movie The Wizard of Oz.
By same token, we can say that as far as real estate investing is concerned, things don't feel the same anymore. The landscape has changed in just few short years. We are on new ground. The whirlwind that brought us from the fast-paced appreciation of the 1970s has left us in a world where, for the first time in decades, the average price of real estate did not keep pace with inflation. In some areas it even dropped!
Is the game over? Or is it possible to create wealth in real estate even if prices are falling?
It has never been easier to make a fortune in Real Estate.
Now, I know that this statement seems to defy common sense. But it's true. High interest rates, tight money, slow markets, and stagnant or falling real estate prices make it easier to make money real estate, not harder.
But everything you read in the media would lead you to believe just the opposite. Remember, the world almost always operates on faulty assumptions. And that includes the media. The key to making money in bad times is to use your common sense and to do the opposite of what the world is telling you to do. You need to understand the fundamental reasons that make an investment tick. Then you can keep your head when all about you are losing theirs."
Read Creating Wealth for greater investment understanding.
Wednesday, August 27, 2008
Investments
I am committed to helping my clients become wealthy by investing in real estate.
I do not endorse speculation.
We will work together to clarify your objectives and to create a clear vision of your portfolio over the long term.
Most investors start with as little as $20,000 cash, or use equity from current properties as their seed money.
VA loans provide a Zero Down option (about the only no down option left).
It’s not just what I teach, I do it! I am an active investor so I can speak from experience.
If I choose to work with you, we will work together to put you in a position to benefit from this incredible Buyer’s market.
I do not endorse speculation.
We will work together to clarify your objectives and to create a clear vision of your portfolio over the long term.
Most investors start with as little as $20,000 cash, or use equity from current properties as their seed money.
VA loans provide a Zero Down option (about the only no down option left).
It’s not just what I teach, I do it! I am an active investor so I can speak from experience.
If I choose to work with you, we will work together to put you in a position to benefit from this incredible Buyer’s market.
Great Deal Alert !
I occasionally send out a special “Great Deal Alert” when I find a particularly good opportunity. If you want to get these alerts (3 or 4 per year) please email here.
If you want rational investment real estate in your portfolio, contact me for a free consultation.
Kevin
877-700-2550
Tuesday, June 17, 2008
Kevin's View of Real Estate Investing in Today's Market
There is a lot of pain happening to Real Estate Investors now.
Some is self-inflicted; some has come from outside forces.
Here is how I see it.
Key Points
Speculators are not Investors
Get into Good Debt to become wealthy
This is a great time to be a rational Investor
The next few years will destroy many who think of themselves as Real Estate Investors. They will be revealed speculators. We have already seen large swaths of the country crushed by the weight of abandoned and foreclosed properties. Homeowners will usually struggle to avoid foreclosures; unfortunately some speculators simply exit when the market forces no longer give them easy profits. With little or no equity the speculators have little to lose if their risky bets don’t pay off. This hurts everyone.
The Good News
The next few years will be a magnificent time to be a rational Real Estate Investor. I am aggressively positioning myself and my Clients to benefit from the “millionaire maker” part of the real estate market cycle. We currently enjoy ridiculously low interest rates. This will not last. The strategy I teach and follow is to use this opportunity to get into debt as much as possible. Anyone who locks in these low rates now will look like a genius 5 years from now when rates are oppressively high.Re-finance adjustable rates into fixed immediately and/or buy more properties with maximum debt that’s fixed for at least 20 years. The second threat (fantastic opportunity) is inflation. The Federal Reserve has clearly demonstrated that they will use inflation to fight the current weak economy. In the 1970s, inflation devoured the life savings of millions of Americans. Careful savers will hopelessly watch as their purchasing power is dissolved away. I can’t change that, but I can protect my family, friends, and anyone else who cares to listen to me.
Get into Good Debt to Become Wealthy
My leveraged properties are all cash-flow positive or break even. Some are depreciating and some are appreciating. But over time, California real estate typically doubles every 10 years. Other markets increase about x 1.5 every 10 years. Because all of my loans are fixed rates, inflation will be my friend; I welcome it. As inflation hits, both property values and rents should increase. My cash-flows and my property values will almost certainly be pushed up. I advise Clients to buy investment deals with as much leverage (debt) as possible. This magnifies appreciation gains because they gain on the full value of the property not just on the amount they put in. Another advantage of high debt is that the loans are paid back with over time with increasingly devalued currency. Your payment schedule is calculated based on the value of the currency on the day you get the loan. In inflationary times, Lenders are losers, Borrowers are winners. Good debt is an asset!
Rational Investing
My focus with Clients is always on rational investing as opposed to speculating. The distinction is critical. Rational investors are focused on careful analysis, proper planning, and honest projections. We are in it for the long run, not a quick gain.
What do you think? I welcome your responses.
Some is self-inflicted; some has come from outside forces.
Here is how I see it.
Key Points
Speculators are not Investors
Get into Good Debt to become wealthy
This is a great time to be a rational Investor
The next few years will destroy many who think of themselves as Real Estate Investors. They will be revealed speculators. We have already seen large swaths of the country crushed by the weight of abandoned and foreclosed properties. Homeowners will usually struggle to avoid foreclosures; unfortunately some speculators simply exit when the market forces no longer give them easy profits. With little or no equity the speculators have little to lose if their risky bets don’t pay off. This hurts everyone.
The Good News
The next few years will be a magnificent time to be a rational Real Estate Investor. I am aggressively positioning myself and my Clients to benefit from the “millionaire maker” part of the real estate market cycle. We currently enjoy ridiculously low interest rates. This will not last. The strategy I teach and follow is to use this opportunity to get into debt as much as possible. Anyone who locks in these low rates now will look like a genius 5 years from now when rates are oppressively high.Re-finance adjustable rates into fixed immediately and/or buy more properties with maximum debt that’s fixed for at least 20 years. The second threat (fantastic opportunity) is inflation. The Federal Reserve has clearly demonstrated that they will use inflation to fight the current weak economy. In the 1970s, inflation devoured the life savings of millions of Americans. Careful savers will hopelessly watch as their purchasing power is dissolved away. I can’t change that, but I can protect my family, friends, and anyone else who cares to listen to me.
Get into Good Debt to Become Wealthy
My leveraged properties are all cash-flow positive or break even. Some are depreciating and some are appreciating. But over time, California real estate typically doubles every 10 years. Other markets increase about x 1.5 every 10 years. Because all of my loans are fixed rates, inflation will be my friend; I welcome it. As inflation hits, both property values and rents should increase. My cash-flows and my property values will almost certainly be pushed up. I advise Clients to buy investment deals with as much leverage (debt) as possible. This magnifies appreciation gains because they gain on the full value of the property not just on the amount they put in. Another advantage of high debt is that the loans are paid back with over time with increasingly devalued currency. Your payment schedule is calculated based on the value of the currency on the day you get the loan. In inflationary times, Lenders are losers, Borrowers are winners. Good debt is an asset!
Rational Investing
My focus with Clients is always on rational investing as opposed to speculating. The distinction is critical. Rational investors are focused on careful analysis, proper planning, and honest projections. We are in it for the long run, not a quick gain.
What do you think? I welcome your responses.
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