People invest in real estate for many different reasons, but most are in hopes of making a profit. When I say hope, it’s because when you ask them how they intend to profit, a great majority can’t tell you how. The biggest reason for this is because many folks, who honestly believe they are investing, are not actually not — they’re speculating instead, and there’s a huge different between the two!
Webster’s Dictionary defines speculating as - buying and selling with the expectation of profiting from market fluctuations – or assuming a business risk in hope of a gain! Folks – let me be crystal clear’ about this! Speculating is not what I do – nor is it what I teach others to do! I am a pure investor, and as you shall learn, my profits have very little to do with market fluctuations, or as they’re more often called, real estate cycles.
When you learn to invest my way, there’s no need to hope for financial gain. It’s almost certain! Speculation, on the other hand, is a lot like fishing from the riverbank with your trusty casting rod hoping to land a big one. Investing my way is more akin to fishing inside a rain barrel with an AK -4 7. Can you picture the difference here? Obviously, being able to more or less predict your profits is a big part of that huge difference I mentioned above. Naturally, to invest the way I’m suggesting, you must begin the task by learning the right skills in order to become a pure real estate investor.
On a more positive note, nearly everyone has an equal opportunity to succeed with my kind of investing. Background and education have very little to do with “making it”! High school dropouts and Harvard law students are pretty much equal starting out! The reason for this is because a great deal of your investment education will come from on-the-job training. Obviously, you’ll need what I call, “book learning” or formal training, as in seminars to help you learn the how-to skills – and where to start. But by far your greatest educational advances will come from putting your book knowledge and classroom training into actual practice. Your on-the-job training or street education will shore up your confidence and provide proof positive that you’ve finally arrived! There’s no greater thrill for any real estate investor than to create a good deal- and watch it work!
As you read about my dollar numbers and the formulas in my books and courses, keep in mind that it’s the relationship or percentages that are most important! The dollar numbers, and mortgage interest rates are always changing, but my techniques and strategies will always stay the same. They’ve already worked for 100 years or so – and I’ll guarantee you, they’ll keep working for another hundred if you need that much time.
Speaking of time, I have always been a stickler for quicker payment of my time – as in, how long before I’m gonna be rich? That’s a fair question, I believe. Call me a bit selfish if you wish – but I don’t get much satisfaction from scrimping and saving today, during my present life – working on some marginal plan that might make me rich long after I’m dead and gone! Obviously, age is always a factor, but my investment strategies are geared so most folks can see a pot of gold at the end of the rainbow much quicker!
Being rich can mean different things to different people! Some might say — If my income were suddenly doubled, I’d be rich – or, if I had $100,000 in the bank, I’d consider that rich! Others might argue that a big fancy car and an oversized home would fit their idea of rich. Obviously, no single answer is likely to fit everyone, so allow me to toss in my two bits and we’ll expand the definition!
I consider the first step to rich as having all the monthly income you need – with perhaps a little left over. There’s no need to worry about spending all you’ve got because there’s a brand new truckload coming in next month! Rich, wealthy or whatever you choose to call it is about having all the money you need without running out! Many so-called equity investors can’t pass this first step; although some are quick to point out- they’re millionaires on paper! Try using this logic in the checkout line at Safeway sometime! You’ll quickly find out that cash in your purse trumps paper millionaires every single time.
At my FIXER CAMPS, I teach investors how to begin earning cash flow as quickly as possible! Keep in mind, most wantabee investors who seek my help, are not rich or anywhere close! Mostly, they have average paying jobs, but they’re totally committed to rising above their current financial circumstances. They also have the wisdom to know that acquiring appreciating real estate is a proven pathway to financial independence! What they don’t know is what kind of properties they need to reach the promise land. 98% of all the available real estate for sale will not generate one thin dime of cash flow with 30% down! Obviously, you need to learn about the 02% that will.
Building net worth is an important part of my wealth building formula, but it’s the cash flow that gives you time to build it. Many brand new, “starry eyed” investors learn this lesson the hard way. They immediately rush out and acquire houses without regard for cash flow!
Instantly, they are saddled down with over burdensome mortgage payments, maintenance and repair expenses and very often, tenants who tear up their properties faster than they can fix ‘em. No tax shelter in the world can save you from this mess! As always, investors must pay the price for jumping in before they fully understand where to jump! As of this writing, Safeway is still insisting that shoppers pay for groceries with cash. Equity shoppers will be ushered out the door with an empty shopping bag and a courteous reminder – not to come back without money!
Cheap houses in a bunch (like bananas) and small rundown apartment units offer the best ray of hope for Mom & Pop investors in their search for cash now investments. This is what I teach at my FIXER CAMPS and this strategy has made many students wealthy and financially independent. Many have built sizeable retirement incomes that won’t dry up before they do. My investment techniques are very do-able for average working folks! First of all, we’ll build a solid cash now foundation so we never have to retreat! Every now and then, someone asks me — Will your teaching make me like Donald Trump? They answer is no, it will not. I can however teach you ways to invest that will make you financially secure for your remaining days on the planet – assuming of course, you’re ready to do your part!
My FIXER CAMPS will open your eyes to brand new opportunities when it comes to the right kind of properties, how and where to find them and of course, how much you should pay to acquire them! Investing for cash flow works anytime, almost anywhere, regardless of the economy and the up and down real estate cycles. You’ll also learn many different ways to generate income from your properties besides collecting rents – or profits from sales! Real wealth comes from keeping your name on the deed and harvesting the profits until you no longer need the money!
Tags: Long Term Investing vs. Speculating by FixerJay
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