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February 14, 2011

Coming Soon from Robert Kiyosaki!

Rich Dad Education Bonus Day: Unfair Advantage in Los Angeles California
ONE DAY ONLY! March 31st 2011. Tickets still available but time is running out!

Robert Kiyosaki LIVE & IN PERSON

The bestselling author of Rich Dad Poor Dad will be sharing invaluable insights and personal strategies for achieving long-term financial independence no matter your age, financial condition, or standing in life.
Face-to-Face with Moneymaking author and educator Robert Kiyosaki, joined by a panel of his most respected and informed advisors to share with you fresh ways to reach your goals and dreams in these challenging times! Nowhere else will you have an opportunity like this one to build wisdom and experience in the areas of cash flow, credit, inflation, taxes, debt, and much much more! You’ll learn alongside like-minded individuals in their quest to reach their personal and financial goals. Find out how you too can emerge into the RICH LIFE through health, wellness, power, spiritual awakening and financial control!

Seating is limited so get your tickets now before it’s too late! Click here for more details.

In addition to the main stage event, all attendees will receive free admission to bonus evening events as well!

Unfair Advantage Book signing: Books go on sale March 29th. Be the first to get your copy of Unfair Advantage signed by Robert Kiyosaki himself!

Rich Woman panel

Rich Woman is about empowerment – and nothing is more empowering than surrounding yourself with self-determining, like-minded women. This special two hour event Led by Kim Kiyosaki will include an enjoyable and entertaining panel of determined women like yourself that will show you that it’s ok to talk openly about money, investing, and taking control of your financial life. This panel of financially savvy women will answer difficult questions while sharing their triumphs and challenges with you. Freedom is understanding and understanding is taking the steps to learn more. Don’t miss this truly empowering event!

Men’s Networking event

The best way to stay on the path toward success is to surround yourself with successful likeminded people. Learn from the hurdles and achievements of others and share your own. Establish strong business relationships and continue to build your power team at this exciting social networking event.
Seating is limited so get your tickets now before it’s too late! Click here for more details.

Overcoming the Fear of Making Offers

Becoming a successful real estate investor often corresponds with becoming successful in dealing with people. This is especially true for new and small investors as they deal with people at almost every stage of the investing process. Those that are naturally charismatic and charming and feel comfortable around people have a natural comfort in entering the real estate field, but even the shyest among us can succeed as the repetitive nature of real estate naturally breaks down these barriers.

There is perhaps no aspect of real estate that is more repetitive than that of making offers. Many new real estate investors, even those with a great deal of education, become very apprehensive when making their first offers. There is apprehension and worry that their offer will be to low (or high), that the other party will be offended at a lowball offer, or that they simply are not comfortable with the offer-making process. Any one of these areas can create a paralysis in the new investor that stymies action.

Learning the Word "No"

While fear or apprehension might initially exist, any new real estate investor will soon become a resilient individual. This is because real estate is often a simple numbers game, a game in which you will be told no many times. You will be told no so often that, in time, any apprehension you had at the beginning vanishes completely. It is the rare experience for someone to have their first offer accepted. Some individuals have stories of dozens, and even hundreds, of offers being made before their first one was accepted. The first couple no's may be frustrating, but after the first deal is done, successful real estate investors become fearless and new real estate investors learn the process of making offers so well that it becomes second nature to them.

So, if you have any apprehension of making offers, there is simply one way to overcome it: get out there and start making them. Set a goal to make one by the end of the week. After that, set a goal to make two more by the end of the next week. In no time at all, you will start to lose any apprehension you have, and start developing the fearless mindset that so many successful real estate investors have.

Understanding the Seller's Needs

Your chances of making offers that are accepted goes up if you learn to properly identify motivated sellers. This term is used to describe individuals who need to move their property, usually the sooner the better. Their need to move the property can be due to financial problems, work relocation, or a variety of personal situations that occur in life. Learning to identify and work with motivated sellers will be the focus of next month's article.

Whether they are a motivated seller or not, taking just a little time to find out what the seller needs can go a long way to your success in real estate. Because we are trying to make a profit in our real estate dealings, there may be situations that the seller's needs simply don't fit what our bottom line dictates. They may require cash and the margin may not simply be there. However, there are seller's whose situation may be amenable to terms, a situation in which many of the strategies taught by Rich Dad Education come into play. The simple fact is until you take a few minutes to genuinely learn what the seller needs out of the arrangement, you are only guessing.

More often than not, the two parties will not be on the same page. They may need a level of money up front which you don't have, you may not agree on a fair price, or you may never settle on terms that are acceptable for both parties. When this occurs, and it will occur often, simply part on good terms, and move onto the next deal. If you were genuine in trying to find out what the other person needed, and open and honest in your dealings, then you may find over time that the seller comes back to you in later weeks or months when they still are still in need of selling.

Over time, in which you deal with a great variety of people, this process will make you wonder what you ever feared in the first place.

A Variety of Strategies - the Need for Education

There is a wide variety of creative financing scenarios that a real estate investor may encounter in the offer-making process. Imagining all of them makes the need to have a variety of strategies at your disposal apparent. There are numerous ways to structure an offer using a combination of alternatives to cash, such as promissory notes, deferred payments, lease with purchase option, land contracts, simultaneously selling off part of the property, cross-collateralizing, or sweat equity (to name just a few). While real estate requires a level of tenacity, it also requires some good old-fashion school work in becoming familiar with the numerous ways to make a deal happen.

Along with the creative financing scenarios, there are also many basics that you should feel comfortable with before you make your first offer. Among your skill sets should be the ability to analyze property value, know the trends within the market you are analyzing, be comfortable estimating repair value, and your ability to obtain financing. If you are using a specific strategy, you should also be comfortable with it. These are fundamentals of real estate investing, and many of the courses that Rich Dad Education offers focus on helping you develop them. Once these skills are mastered, the next step is often summoning up the courage to make that initial offer.

Brush up on those skills, and find the fortitude to make that first offer. Next month's article will focus on learning how to identify motivated buyers, a skill that will speed up your offer-making process.

February 10, 2011

Support and Resistance

Many of the greatest sport coaches of all time share a common characteristic:, their obsession with the fundamentals of their sport. Whether it is passing in basketball, tackling in football, or fielding in baseball, these coaches spend what may seem to an outsider to be an inordinate amount of time in these areas. They preach fundamentals during the off season, during preseason, and during practice with the hope that when the game begins, these fundamentals will be second nature to their players.

One can find many parallels between sports and trading in the financial markets, but perhaps there is nothing more appropriate than the importance of learning fundamental principles in order to be successful. In time, traders in the financial markets can find many sophisticated manners in which to trade, and may have elaborate indicators that aid them in their trading. All of these advanced methods and techniques will be nothing but a detriment if the fundamentals of trading are not learned, or if they are later ignored.

Among the fundamentals of technical trading lie the principles of support and resistance. These are among the first concepts taught to new traders interested in learning about technical analysis, and these concepts should be applied to your trades as long as you are an active trader. Support and resistance is defined as, “a concept in technical analysis that the movement of the price of a security will tend to stop and reverse at certain predetermined price levels"(en.wikipedia.org/wiki/Support_and_resistance). In other words, in technical analysis, it is believed that securities have predetermined price levels where they stop falling (i.e., find the support necessary to stop falling), and predetermined price levels where the stock will reverse its upward climb (i.e., when it meets a price level that resists further climb upward).

So, if stocks tend to stop and reverse at certain levels, one can immediately see how this can benefit their own trading. If true, these price levels of support and resistance could give excellent signals of when to buy and sell the security in question. This is exactly what support and resistance mains function is for those that engage in technical analysis. It is one tool in the technical trader's toolbox that allows him/her to increase the probability of a winning trade. Probability is the key word here, as there is nothing in technical analysis that guarantees certain price action will occur. A security may have hit approximately $100, three times in a row (resistance) before falling to $95, finding support. This does not guarantee that it will stop climbing if it hits $100 again, nor does it guarantee it will stop falling if it hits $95. However, those that adhere to technical analysis know that these repetitive patterns have meaning, and often look to these support and resistance zones first before engaging in any other analysis.

While on rare occasion support and resistance will land on nice exact numbers, it is better to think of these concepts as a zone or a range. For example, in Figure 1, we see that this particular security was falling downward until it hit point "A." A couple of weeks later, it hit that same approximate price range again at point "B," before climbing up again. For simplicity, we can draw a line meeting these points, which creates a zone or level of support (at least in the short term) that can give us an indication of what might occur if it were to fall to this level again.

Figure 1

If someone trained in technical analysis was following this security or came across it in one of their scans, they would be very interested if the security climbed short term only to fall to that same support range again that it found in points A and B. They would be looking for one of two things to happen: either it will find support at that range again, indicating a buying opportunity, or support will fail, which could indicate an opportunity to short the stock. As we look at Figure 2, we see that it indeed found support again at the approximate support zone before climbing up again.


Figure 2

This is a simple straightforward example of support; however, it does demonstrate how powerful support and resistance can be when properly identified. While in this example the support zones are clearly established, sometimes it is not so straightforward. The beginning eye may not find support and resistance zones, or may wrongly label certain price action as support and resistance. Other times, identifying support and resistance is just as easy as identifying support on this chart. If you are new to technical analysis, find examples that are clear cut, and have easily identifiable zones. In time, you will be able to identify short- and long-term support and resistance, draw support and resistance lines in up and downtrends, and combine numerous other indicators that will strengthen the probability of a winning trade.

A final note on a question that many new to technical analysis ask: after seeing securities behave like this, they are curious to what factors make a security behave in this fashion. If a stock rises to hit approximately $100 four times in a row before falling in the short term each time, why does it do this? There is nothing mystical going on, simply a combination of supply and demand, human emotion, and other technical traders influencing the price action. All of these create support and resistance barriers that can benefit you in your trading. If you are not comfortable identifying support and resistance zones immediately when looking at a chart, then you need to put in some time and practice. Ignoring support and resistance is like a basketball player that can't dribble.

Paying the Price

A Roman poet once wrote, “All wish to possess knowledge, but few, comparatively speaking, are willing to pay the price.” One could easily substitute the word success for knowledge and have the same meaning applied. Whether it be knowledge or success, why does something that the vast majority of people want so rarely occur? What are the defining characteristics of those individuals who turn their wishes into actualized dreams?

A world-class pianist performed a concert, and afterward, one of the audience members came up, and praised the pianist for his talent. In the midst of praise, the audience member commented on how they wished they could play like the pianist. The pianist looked at the audience member and said, "To get to the point I am now, I have practiced on average 10 hours a day for the last twenty years. Would you be willing to do that to play like I do?" The audience member begrudgingly shook their head no, and quietly walked away.

While certain people may be blessed with more natural talent than others, each person faces a journey that will be marred with difficulties and pitfalls on their way to success. No matter how much natural talent the pianist in the story was blessed with, there were undoubtedly time periods where it was difficult to reach that next level of success - times where dedication and perseverance were necessary in order to make that next step of progress.

Stage One: Desire

If success were a magical gift that could be bestowed on anyone that asked for it, how many would turn it down? Naturally, success means different things to different people, as not all individuals define success in monetary terms. The arts and many professions and hobbies that individuals engage in provide little in terms of monetary rewards, yet for every individual who reaches the pinnacle in their respective area, there are thousands who lag behind. If you ask any of these thousands if they wished to be as successful or as talented as the people at the top of their area of interest, you undoubtedly would have a collective yes to the question.

It is the rare individual who desires nothing. A lack of desire for wealth, knowledge, notoriety, peace, or talent is foreign to the human condition. In fact, desire is so innately part of the human experience that we should have pity on those that have little to no desire for anything as they are scarcely human.

If you look inwardly, you likely will find desires in numerous areas. It would not be unusual if you wish to be knowledgeable, financially successful, respected, and skillful in those work and hobby areas you engage in. Desire is not the hard part. You join billions of other people who have the same basics desires you have. The question is, how do you separate yourself from the billion-member pack?

Stage Two: Dedication

While we all may be part of the multi-billion member pack who have desires, there are individuals who want to achieve that which they desire more than others. We oftentimes label these individuals over-achievers, type A personalities, or workaholics, but whatever the label, they usually share a common characteristic - they work harder at achieving their goals than others. They pay the price that the Roman poet referred to, in order to achieve the goal that they set out to do.

This hard work manifests itself for long time periods as well. It is far too common for passion to manifest itself in an individual, and for them to work hard for short periods to achieve the desire. They may want to learn to play the guitar, so they buy one, and practice intensely for a few days, weeks, or months. Then one day, the motivation isn't there, and they stop. Pawn shops across the world are filled with the temporary desires that lacked the dedication to see it through.

Becoming proficient at something can be difficult. Becoming really good at something is not easy to achieve without time and energy put into that endeavor. While certain things are easy to maintain once the skill is learned (riding a bike comes to mind), most things require dedication, time, and constant energy in order for success to be achieved. If it came easy to everyone, then we wouldn't put any value on it, would we?

Stage Three: Perseverance

Perhaps the rarest of individuals is the individual who has desires, manifests dedication, and overcomes all obstacles that are thrown their way. One definition of perseverance is, "To persist steadfastly in pursuit of an undertaking, task, journey, or mission, in spite of distraction, difficulty, obstacles, or discouragement" (en.wiktionary.org/wiki/persevere). I like the person I might become if this definition of perseverance could be applied to me.

Distraction comes in many forms, often in the forms of pleasures that are easier, and offer comfort today. Difficulty will manifest itself in many forms, from skills that you may be currently underdeveloped to life problems that present themselves in many forms. Discouragement is far too common, as those that have sold short in life are often envious of even the attempt of success. Tell someone your desires, dreams, goals, and you likely will get looks and comments of disbelief and commentary on how that isn't possible. Too often it is those that are closest to us who offer the discouraging words. We all have shortcomings and have failed, and those close to us know these characteristics and instances well.

There is no reason you can't become the person you want to be. There are a million reasons you and others can give on why it isn't possible. There is a price to pay to achieve the success we want in life. It will require your time and energy, and you will have to develop the perseverance. If you can become this individual, you will belong to a rare class, accomplishing things others will admire and become someone you can be proud if. If this is in a financial area, great. If it is in another area, just as wonderful. Whatever it is, go out and pay the price necessary to accomplish your goals.


Reads and Links

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