Rich Dad Education Blog

It is always a shame when you leave profits on the table. This is particularly true in the area of real estate investing. Many entering into the real estate arena spend time learning strategies, putting together a Power Team, and acquiring marketing skills. Meanwhile, they relentlessly make offers until they find their deal. After they have acquired their property, and despite all of their hard work, few fully maximize their potential profits because they don’t take the time to properly present their property. Novice real estate investors should not feel alone, as many veterans make the same mistake, too.

The little extra touch that goes into the presentation of the property can dramatically alter its perceived value. When the presentation is properly executed, properties move faster, and sell and rent for more. This all leads to more profits for the investor. As a real estate investor, you have invested the time; now, just spend those few extra hours on the fine tuning that makes a big difference in your bottom line.

Continue reading "Presenting Your Property –Staging and Landscaping" »

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The number of things a sophisticated trader can do with simple calls and puts is truly amazing. The buying and selling of calls or puts can be combined in numerous option strategies, each offering its own unique way of capitalizing on the various market conditions a trader will encounter. The key for any option strategy is to know what market conditions a particular strategy should be utilized, how to execute the strategy, and whether the option strategy fits within a trader’s risk parameters.

One of the more popular option strategies is the Iron Condor. The Iron Condor’s popularity stems from the cash flow and potential monthly income it can generate. The Iron Condor is simply the combination of two of the first strategies that beginning traders learn:, the bull-put spread and the bear-call spread. These two credit spreads are used in different market conditions. If the broader markets are at least moderately bullish and your underlying stock is also moderately bullish, then the bull-put spread is a viable option strategy. Conversely, if the broader markets are at least moderately bearish and your underlying stock is also moderately bearish, then the bear-call spread is a viable option strategy. These two basic credit spreads serve as the basis of numerous trades that option traders make, as they can capture profits in both market conditions.

Continue reading "Iron Condors" »

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He said, “Raise your price. Make it ridiculous. That would make people perceive it as value.” ~Robert Kiyosaki

The power of a quote should never be underestimated. Sometimes quotes serve as simple inspiration, allowing individuals to find motivation or maintain a positive attitude in turbulent times. Other times, quotes change the direction of lives by inspiring new careers, changing bad personal habits, and helping put importance on things that truly matter. Quotes can also transform the mindset of an individual so they fundamentally see the world differently than they ever had before.

Continue reading "The Power of a Quote" »

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Too often investors are one-dimensional in their approach to real estate investing. While these investors are light years ahead of individuals who take no action, these investors are still potentially limiting their success. One-dimensional investors also potentially limit their personal satisfaction by not exploring additional areas of real estate investing. You should never let the fear of the unknown, or a lack of confidence in your own ability, prevent you from exploring new areas of financial investment.

Commercial real estate is one area of real estate investing that is often overlooked. Many individuals bypass even investigating commercial real estate, simply because the topic intimidates them. This is unfortunate because commercial real estate can be a tremendous source of cash flowa primary reason many investors get involved with real estate in the first place. Many who have braved the world of commercial real estate have found they are able to generate more cash flow and wealth through commercial real estate then through any other real estate strategy, and that commercial real estate t is actually fairly straightforward and easy to learn.

Never limit yourself because of a lack of knowledge, or fear that an area of investing is too big for you. By learning the basics of commercial real estate, you can determine if this is an area that interests you, and one that might work for you.

Continue reading "Commercial Real Estate" »

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One of the most intriguing things about options trading is the variety of choices available to the educated trader. With dozens of option strategies available, competent traders can analyze the market conditions, their personal risk tolerance, and their financial objectives, and then choose the option strategy that best fits all criteria. Some traders find one or two option strategies that work best for them, while others utilize numerous strategies depending on the market situation they encounter.

The key for any option strategy is to know the market conditions that need to be present to use the strategy, to know how to execute the strategy, and to know whether the strategy fits within their risk parameters. When a trader anticipates a move to the upside, there are several strategies that the trader can utilize. For example, a trader may buy the stock, purchase a call, or use a bull-call spread. Correspondingly, when a trader anticipates a move to the downside, they may short the stock, purchase a put, or use a bear-call spread. The choice in strategy often depends on the trader’s personal trading rules, based on their risk tolerance and financial objectives.

There are also market conditions that many traders encounter when they anticipate a large movement in the price of a stock but are unsure of what direction the price will go. For example, the earnings report of a stock may be coming up, and a trader’s analysis indicates that a potential large movement may occur based on what the earnings report shows. A trader may also encounter a very volatile market and want to use option strategies that will allow them to profit from a rise in volatility. In these situations, some of the most widely used option strategies are the straddle and strangle.

Continue reading "Option Strategies – The Straddle and Strangle" »

Posted 09:07 AM | Permalink | Comments (0) | TrackBacks (0)

Outstanding individuals have a vision of who they want to become, and what they want to accomplish. Regardless of the circumstances they find themselves in, they dare to dream of a better life and becoming a better human being. While they may occasionally look out a window and daydream of the day that this occurs, they remain focused on their vision for their life and steadily work each day to reach their destination.

The end of each calendar year marks the time that many individuals reflect on what they have accomplished during the past year and set goals for what they wish to do in the coming year. For people that have a clear vision of what they want to accomplish in life, the setting of goals for a coming year is an exciting time. They can take the time to measure what they have accomplished, analyze what still needs to be done, and outline the steps they will take in the coming year to get them closer to what they want in life. For those just starting out on a newly formed vision, the setting of goals is an essential activity. Goals can give direction, provide motivation, and help you create the working template of what you want to accomplish and who you want to be.

Continue reading "Goal Setting" »

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Cash flow is one of the primary reasons people are attracted to real estate investing. In their desire to escape the rat race, many real estate investors have the primary goal of generating enough cash flow so their expenses are covered by the income they generate. Once this occurs, they can take that true first step towards a state of financial independence for perhaps the first time in their life. The process of transitioning from earning a paycheck to replacing it with real estate income may not happen overnight, but it will happen if you have the dedication and acquire the how-to knowledge of becoming a successful real estate investor.

Continue reading "Cash Flow and Rental Properties" »

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One of the most intriguing things about options trading is the variety of choices available to the educated trader. With dozens of option strategies available, competent traders can analyze the market conditions, their personal risk tolerance, and their financial objectives, and then choose the option strategy that best fits all criteria. Some traders find specific option strategies that work best for them, and others utilize numerous strategies depending on the market situation they encounter.

The key for any option strategy is to know the market conditions that need to be present to use the strategy, how to execute the strategy, and whether the strategy fits within their risk parameters. There will always be a little terminology to learn with any strategy, but once you get the basics down, you will discover the terminology becomes easier and easier with each strategy that you learn.

Continue reading " Option Strategies – Covered Call and Married Put" »

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In a very popular song written by David Coe (and later covered by Johnny Paycheck), the artist laments how his boss is a “riggity dog” and how the “lineboss is a fool” as he sings that he can’t wait to see their faces when he gets up the nerve to say:

“Take this job and shove it. I ain't working here no more”

You may never have heard of David Coe, or even heard the lyrics to the song, but undoubtedly the reference will be familiar to you as it has become part of our culture. There are countless scenes in movies and television shows where characters emotionally tell off their bosses. These characters have reached their limit, and leave a job despite having no viable opportunities in front of them.

Oftentimes, when these scenes are played out on the screen, those watching laugh and cheer on the person quitting in such a rage—perhaps because we admire the temerity of such an individual or in part relate on all too real of a level. While we might not have fanaticized in graphic detail on how we might quit our present jobs (or maybe far too many of us have), it is likely that anyone reading this newsletter has dreamt, planned, and is working on ways to get out of our current line of work. After all, there is nothing in the Rich Dad philosophy that celebrates remaining in the E quadrant for life.

Continue reading "Never Close Doors" »

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One of the first principles taught to Robert Kiyosaki by his Rich Dad was the Cashflow Quadrant®. The quadrant is made up of the four different people who make up the world of business. The first box of the quadrant holds the E’s, or employees. According to Robert’s Rich Dad, these individuals could be identified by their core values, variations of the saying, “I’m looking for a safe and secure job with benefits.” These values can be identified in positions at every level of the company, from the very bottom all the way up to CEO.

Recent years should have illustrated clearly the fallacy of the “safe and secure job,” but that mindset undoubtedly will remain for millions of workers in America. Even if we assume for arguments sake that a person’s job is safe, the fundamental problem that so many individuals have in building wealth is that they simply are earning a paycheck. Individuals in our society often put long and tedious hours into the earning of that paycheck, and usually create a lifestyle to match the earnings of that paycheck. They invest their time into their core value of security, create a lifestyle to match their earnings, and get caught in the proverbial rat race of life.

Continue reading "The Power of Passive Income" »

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One of the most intriguing things about options trading is the variety of choices available to the educated trader. With dozens of option strategies available, this type of trader can analyze the market conditions, their own personal risk tolerance, and then choose the option strategy that best fits all criteria. Some traders find specific option strategies that work best for them, and others utilize numerous strategies dependant upon the market situation they encounter.

The key for any option strategy is to know in what market conditions to use the strategy, how to execute it, and whether the strategy fits within their risk parameters. There will always be a little terminology to learn with any strategy, but once you get the basics down, you will discover it becomes easier and easier with each strategy that you learn.

Continue reading "Option Strategies - The Bull Call Spread" »

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Earlier this month, iconic Oakland Raider owner Al Davis passed away. Football fans around the world owe a debt of gratitude to Al Davis, as the professional game we now enjoy achieved its success due in no small part to Mr. Davis’ work. Professional football lost a legend this month, and a personality that will never be replaced.

Al Davis spent his entire life doing what he loved. Upon graduation from college, he started coaching at Adelphi College, and spent the next sixty years involved in football. He is the only person to ever serve in professional football as a scout, personnel assistant, assistant coach, head coach, general manager, commissioner, and team owner. He was rewarded for his lifetime of service with induction to the Pro Football Hall of Fame in 1992.

Continue reading " Do What You Love and Success Will Follow" »

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For the last several months, this newsletter has discussed areas in real estate that are overlooked or underutilized. Too often, many novice real estate investors only utilize the buy-fix-sell model simply because it is comfortable and easy. The knowledge acquired from buying homes, fixing them up, and successfully selling them provides invaluable real estate investing experience. This experience not only provides immediate profits, but benefits the investor no matter what strategy is later utilized. For many investors, however, this soon ends up feeling too much like a job rather than an investing career.

This feeling is understandable, since the buy-fix-sell model prevents an investor from generating the cash flow necessary to escape the rat race. There is no true wealth-generation in this model, and no real assets are accumulated. While financial necessity or lack of experience may force the utilization of this model, many real estate investors begin to seek other alternatives or exit strategies.

Continue reading "Lease Options" »

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In 1973, the Chicago Board of Trade (CBOT) opened the Chicago Board Options Exchange (CBOE), and the modern era of options trading began. Since its inception, options trading has exploded in popularity. In recent years, billions of options contracts have been cleared annually. As more and more investors seek to control their own financial future, options become one of the first investment vehicles that new investors investigate.

If the incredible popularity of options had to be summed up in one word, it would have to be leverage. For an example of leverage, let’s assume that you have $2,000 to invest. You are interested in purchasing shares in company XYZ that is currently trading at $50. If you were to simply buy shares of stock, then you would only be able to purchase 40 shares. However, let’s assume that the $50 strike price call options are going for $2. With options leverage, you could buy 10 contracts (each contract equals 100 shares) at $2 per share, and control 1,000 shares. The power of leverage and options in this scenario would allow you to control 25 times more stock for the same investment.

Continue reading "A Beginners Guide to Options" »

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Michael Jordan was cut from his high school basketball team. No matter how many times you read that sentence, it still is amazing. The man who would go on to win six championships, five MVP awards, ten scoring titles, and be named by ESPN as the greatest North American athlete of the 20th century, did not even make his high school basketball team his sophomore year. He was deemed too short to play at that level.

Being cut from an amateur athletic team produces a variety of responses in young men and women—for Jordan, he used it as motivation. He trained vigorously, set his goals high, and the rest is history. He never let go of the motivating influence of being cut from the team, as was illustrated many years later during his Hall of Fame induction speech. Jordan unceremoniously chided the high school basketball coach who had cut him. That act might have been petty, but it was obvious that the motivation created from being cut had long survived.

Continue reading "If at First You Don’t Succeed…" »

Posted 07:30 AM | Permalink | Comments (0) | TrackBacks (0)

Michael Jordan was cut from his high school basketball team. No matter how many times you read that sentence, it still is amazing. The man who would go on to win six championships, five MVP awards, ten scoring titles, and be named by ESPN as the greatest North American athlete of the 20th century, did not even make his high school basketball team his sophomore year. He was deemed too short to play at that level.

Being cut from an amateur athletic team produces a variety of responses in young men and women—for Jordan, he used it as motivation. He trained vigorously, set his goals high, and the rest is history. He never let go of the motivating influence of being cut from the team, as was illustrated many years later during his Hall of Fame induction speech. Jordan unceremoniously chided the high school basketball coach who had cut him. That act might have been petty, but it was obvious that the motivation created from being cut had long survived.

Continue reading "If at First You Don’t Succeed…" »

Posted 07:30 AM | Permalink | Comments (0) | TrackBacks (0)

Last month, we discussed tax liens and deeds as an overlooked area of real estate investing. Too often, investors are one-dimensional in their approach to real estate investing. Being a one-strategy investor can be successful, but highly successful real estate investors rarely settle on one investment strategy until they have become well versed in multiple strategies. After trying out a few options, investors then settle on the strategy that best fits their strengths and fulfills their personal and financial goals.

This month’s article will focus on probate investing, which, much like tax liens and deeds, is an area that most real estate investors have only cursory knowledge of. This is an unfortunate oversight on their part, as investing in probate properties can be a lucrative method of investing that fits nicely with personal time constraints and financial goals of many new and seasoned real estate investors. It is definitely an area of investing that all real estate students should investigate to see if it is a match for them.

Continue reading "Profits in Probate" »

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Based on fears that America is heading into another recession, and that the European debt problems aren’t solved, the Dow fell 512 points on Thursday, August 4, 2011, the biggest drop since December 2008. After hours on Friday, August 5, 2011, for the first time in history, the S&P cut America’s credit rating from AAA to AA+”. The VIX, Wall Street’s so-called fear index, had a dramatic spike on the following Monday, with the end result being a 634-point loss.

In the June edition of the Rich Dad newsletter, we discussed fear, and how dramatic drops in very short timeframes can occur when fear sets in. The main point in that article is that for the technical trader, there is no room for emotions like fear and hope. These emotions handicap a professional trader and, at best, limit what a trader can be become. At worst, they can devastate a trader’s capital through poor decisions.

Continue reading " Market Action – Sticking to Fundamentals" »

Posted 07:52 AM | Permalink | Comments (0) | TrackBacks (0)

Across the country, professional and amateur athletes are in the midst of football camps in preparation for their upcoming seasons. While August may be the dog days for baseball, for football, they are a time for preparation when new offenses are installed, new plays and terminology are taught, and game plans are created for the upcoming season. In conjunction with physical workouts, how coaches approach this intense learning period is crucial for how their teams will perform in the early season.

Even before camps start, most teams have some sort of playbook that they distribute to their players months before training camps begin. Knowing the playbook is expected of athletes as knowledge of the various formations and player assignments helps maximize the time once camp begins. No matter how well designed the playbook is, however, and no matter how hard the athlete studies, every coach will tell you that no team truly starts to come together until training camp is well underway.

Continue reading "The Power of Practice" »

Posted 07:50 AM | Permalink | Comments (0) | TrackBacks (0)

Last month's article discussed the pitfalls of being a one-dimensional real estate investor. Being a one-strategy investor can be successful - many seasoned real estate veterans have specialized in a field they enjoy and found great success. However, these veterans are usually well versed in numerous strategies, and eventually settled with the one that best fits their strengths and fulfills their personal and financial goals. As a real estate investor, this is where you want to be - specializing on the strategy or strategies that best suit you.

To help get you to the point you want to be, the next several real estate articles in the Rich Dad E-zine will focus on often overlooked areas of real estate investing. To say that tax liens and deeds are often overlooked might be an understatement. Many real estate professionals have no, or only cursory, knowledge of this area of real estate investing. Few novices have even heard about this strategy, and thus never take the time to investigate to see if it might work for them. This is unfortunate as many investors have found that tax liens and deeds are the perfect fit for their investment needs.

Continue reading "Tax Liens and Deeds" »

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The number 10 is often the first goal that a parent sets for their child when learning how to count. Wild applause and hugs usually follow when the child counts to 10 for the first time. As time passes, there are subsequent attempts to teach the child to count to 20, 30, 50, and eventually, 100. These rounded numbers, typically to the closest multiple of ten or hundred, are usually the goal.

Rounded numbers also dominate our currency. After the $1 and $5 bills, bills typically jump by tens—$10, $20, $50, and $100 bills. Try to imagine a society in which $32 bills and $113 bills circulate. Even the simple $2 bill, while still in circulation, fell out of favor with the American public.

Whether it is learning to count, our currency, or the special emphasis we put on new years that start a new decade, society seems to favor rounded numbers to ten or hundred. Whether this speaks to the simplicity of the human mind or our need for a semblance of order in society will be a conversation left for another time. What we care about as traders is whether it is possible to capitalize with this fascination with rounded numbers.

Continue reading "Support, Resistance, and Rounded Numbers" »

Posted 09:58 AM | Permalink | Comments (0) | TrackBacks (0)

Professional football player Terrell Owens, commonly referred to as T.O., is an elite athlete that has excelled at the highest levels of professional sports. T.O. has made jaw-dropping catches, set numerous NFL records, and will likely be inducted in the pro-football hall of fame. For many observers, T.O.'s football skills are only overshadowed by his enormous ego. During one sideline rant, T.O. was videotaped in a self-congratulatory moment yelling out, "I love me some me."

Whether we would like to admit it or not, there is a little T.O. in most of us. Sure, we might not engage in the attention-grabbing antics of T.O., but deep inside we "love me some me." This is not a bad thing, as self confidence and a bit of swagger are characteristics of many successful entrepreneurs. Those that have genuine confidence are much more likely to take action then those who engage in self loathing.

In our entrepreneurial and real estate dealings, a simple mistake that many people make is that they forget that the people they are dealing with are much like themselves. In business, it very common to be dealing with confident individuals who have strong opinions about themselves and the subject matter they are dealing with. The interpersonal dealings, when conducting a business transaction, can be as important as, and sometimes more important than, the numbers surrounding the deal itself.

In your business dealings, common courtesy is always a must, but some of the best entrepreneurs and real estate professionals take it a step further. They refine their interpersonal skills, and do the little things that separate themselves from the pact. One of the simplest and most powerful of these refined skills is remembering the names of those they deal with.

Continue reading "The Power of One's Name - "I Love Me Some Me"" »

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One of the first questions asked when meeting someone new is, "What do you do for a living?" This type of question is a natural conversation starter as it gives us some small insight into the other person. Typically, this leads to a casual conversation about their job. You will likely hear about what they do, what they like or dislike about their job, and why they chose that particular field.

When asked some form of the question, "Why did you choose to go into that occupation?" there are likely to be a variety of answers. The responder might say that their chosen occupation was their childhood dream. They might also respond that they had skill sets that made that occupation appealing, that the money was good, or that the field was one where they felt they could make a difference. Aside from these answers, there is another answer that is, unfortunately, far too common—some form of "they were hiring." It is a common tale that a temporary job obtained through a friend, relative, or job service ends up as a career. People whose careers are determined through this path often get to a place in their life where they get comfortable, and don't venture out to find an occupation that might be more rewarding, personally or financially.

Continue reading "Real Estate Focus—Finding Your Niche" »

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When you ask someone who does not actively follow the markets to describe how the markets work, you are likely to initially be met with a blank stare. While a great number of people have their retirement plans based on the financial markets, it is likely that very few have spent any time thinking or analyzing why the markets go up and down.
If you press these individuals further, you are likely to get a variety of answers relating to the fundamentals of companies and/or larger economic conditions of the country. Common answers will be, "stocks move up because the companies are profitable and show constant growth" or "the market moves up or down based on how the economy is doing." These simplified answers have a great deal of truth to them, but they certainly do not paint the entire picture.

On October 9, 2007, the Dow Jones Industrial Average closed at a record high of 14,164. Less than 18 months later on March 9, 2009, it would close at 6,547. At the time of this writing, the Dow is hovering around the 12,000 level. Such dramatic volatility within a four-year timeframe should provide a clear example that market movement is not solely based on company fundamentals. There is something far less tangible than a company's quarterly report that causes such large swings in the market. While they come in many forms, the two most common of these intangible causal factors are fear and hope.

Continue reading "Mindset of a Winning Trader—Fear and Hope" »

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As you grow older, you'll find the only things you regret are the things you didn't do. ~Zachary Scott

To change one's life: Start immediately. Do it flamboyantly. No exceptions. ~William James

A few years back, Jack Nicholson and Morgan Freeman starred in the movie The Bucket List. The plot followed two terminally ill men on a road trip with a list of things they wanted to do before they died. While the movie received mixed reviews from critics, the theme of the movie drew people in. The Bucket List opened number one at the box office, and grossed nearly $100 million domestic, and over $175 million worldwide.

That such a theme would resonate with audiences should not come as a surprise. For ages, poets and philosophers have written about the brevity of life. Hundreds of years from now, it will likely still be a theme discussed. While different people have different ideas on how we should spend our time on Earth, a common connection between these ideas is the maximization of that time.

Continue reading "Your Bucket List" »

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Rookie: A beginner. A starter. Somebody that is just doing or trying something for the first time.

For many, the term rookie is most commonly used in sports. All of the major sports have a rookie of the year award, and the term "rookie learning curve" is often used by announcers when analyzing a play that the first-year pro could have performed better. Rookies in sports oftentimes have to endure rituals (i.e., pranks) that serve as their rite of passage into the sport. Whatever small humiliation this brings, I am sure it is eased by the large paycheck modern-day athletes receive.

Continue reading "Rookies in Real Estate — The Four Most Common Mistakes New Real Estate Investors Make" »

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"Stocks inched higher today on news that a ten-legged pink elephant was seen trotting down Fifth Avenue."

The above quote is obviously fictitious, but only obvious because we are currently unaware of the existence of ten-legged pink elephants. If these creatures are ever proven to exist, and one is seen strolling down Fifth Avenue on a slow news day...well, you never know. The moral here is that news services love to attribute the daily rise and fall of the markets to news. That's what they do, whether they are correct in their analysis or not.

This is not to say that all things reported don't actually impact the marketplace. Consider the following fictitious headline:

"Stocks plummeted today on news that an asteroid was on a collision course with the eastern seaboard. The government stated they have a contingency plan, but investors remained unconvinced."

Here the plummet in the marketplace lies in the fear and uncertainty that the news event is creating. Investors are greatly influenced in the decision-making process by fear, and loathe uncertainty. As callous as it may sound, markets like to know the exact costs of disasters, both physical and economical. Without this exact figure, uncertainty and fear can feed off each other, and drive markets to places they probably wouldn't go otherwise.

Continue reading "News and the Financial Markets" »

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Regardless of our age or station in life, we rarely welcome the word no. Whether you are a toddler wanting a toy, a young man asking a girl to dance, or an entrepreneur seeking additional capital from investors, the word no brings with it the denial of what you want in that moment. This denial often brings with it a high level of intense emotion: the child will scream, saying that they are never leaving their room, the young man will swear off love, and the entrepreneur may lose faith in their idea and even themselves.

Fear of rejection is one of the most common fears adults have. This is tragic on the individual level, and a loss on the collective level as well. How much great art, how many novels and plays will never be seen because the artist was afraid of being told no? How many great business ideas and innovations never came to pass because the person was told no once, and never pursued the idea again? If fear of rejection and failure did not exist, our world may look very different than it does now.

Continue reading "The Word No" »

Posted 08:37 AM | Permalink | Comments (0) | TrackBacks (0)

Real Estate investing is one of the greatest means of escaping the rat race. While real estate deals come in many forms, it is oftentimes a tremendous way to generate cash flow, and allow you to eventually move from part-time investor to full-time real estate entrepreneur. The time period in which this can occur varies naturally, but the speed in which it occurs is often simply a direct result of the time and resources that an individual has to invest in the burgeoning real estate business.

No matter how much time the beginning real estate investor has to put into their new venture, it never seems to be enough. Between studying, analyzing properties, making offers, and putting together your power team, each day reaches its conclusion with the new investor wishing there was more time to accomplish the tasks at hand. Without a doubt, real estate investors can reach a point where this type of time commitment is not required, but for those at the early stages of their real estate empires, it is a time intensive process.

Continue reading "Incorporating Your Family into Your Real Estate Business" »

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I recently had a conversation with a veteran trader, and told him about the article I would be doing for Rich Dad Education on families and the financial markets. I have asked this trader for much advice over the years, and no matter the complexity of the question, he has always been generous with his time and provides answers for whatever questions I pose. During my recent conversation with him, I asked him if he could think of family activities that could be centered around his work in the financial markets. For the first time ever, he gave me a blank stare.

While real estate investing has been referred to as a people business, no such claim has been made about professional traders. Traders live in a cold, calculating world of numbers and probability, and oftentimes develop a lone-wolf mentality when it comes to their trading. They do the scans, they analyze the companies, they alone take the time to analyze chart after chart until it comes time to pull the trigger and make the trade. Sometimes, they ask a fellow trader's opinion on this, but more often than not, it is done alone. It is no wonder the veteran trader gave me a blank stare.

Continue reading "Involving Your Family in the Financial Markets" »

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Rich Dad Education attracts some of this most motivated people around—people that wish to better themselves and their place in life. This motivation often increases after hearing Robert or Kim Kiyosaki speak, reading one of the numerous books in the Rich Dad series, or attending a Rich Dad Education workshop. After these events, there is a fire that is set under the individual, and they can't wait to get back home and start applying what they have learned to their everyday lives. When coupled with natural motivation, the excitement that is produced from these events can produce magical results.

A problem that many encounter upon reentering their everyday lives is that their everyday lives are already pretty full. While all of our eventual goals are to exit the rat race, many of us, out of current necessity, find ourselves in a job of some type that requires X amount of time each day. The necessity that requires us to keep punching in our proverbial (and oftentimes literal) time clock come in the form of the mouths we have to feed. Children, husbands, wives, and other family members that may depend on us not only represent a financial obligation, but also a time commitment in their own right. Whether you are up with the baby at 4 a.m., attending soccer practice, or simply spending time connecting with your family, this time commitment coupled with work commitments can quickly eat up your time each day. The excitement and enthusiasm of those with family commitments can quickly dissipate, and lead individuals to use the far too common excuse: "I simply don't have the time."

Continue reading "Finding Time for Family and Work" »

Posted 03:24 PM | Permalink | Comments (0) | TrackBacks (0)

After you have laid the groundwork for your real estate investing business by establishing a solid power team, acquired the educational foundation necessary, and done a few deals, your sights will undoubtedly turn to expanding your business. How you market your business at this point can vary dramatically. The most common approach people take is to proceed as they had up to this point, through hard work and getting out there, calling on properties, and through the marketing that had been effective for them up to this point. While this will be included as an aspect of almost every real estate investor, it will also limit you if it is the only avenue you can take. You only have so many hours in the day, and even the most efficient, hard-working individual has a limited supply of time.

Because of our limited time, one way in which many successful real estate investors expand their real estate investing business is through referrals. You are professional in your approach, so it would be natural that those you do business with would like to refer others to you, right? This may seem completely logical, but if you simply sit by your phone, waiting for those you deal with to send referrals your way, then you will have a lot of spare time on your hands. To get your referral marketing going, you are going to have to invest some time, along with losing any shyness you have, in asking for referrals from others.

Here are a few areas that cover the basics of a referral marketing program. One of the keys to all of this is for you to be someone worth doing business with. If you offer a good service, then your referral marketing program will have a greater chance of success as others will be far more likely to refer those people they know and come into contact with.

Continue reading "Real Estate and Referrals" »

Posted 11:55 AM | Permalink | Comments (0) | TrackBacks (0)

Your average person gets up, makes a morning cup of coffee, pours a bowl of cereal, and makes some eggs—or some variation thereof. Depending on their routine, they will then turn on the morning news, read the newspaper, or surf the internet. Before, during, or after all of this will include showering, shaving, feeding the dog, and other activities that are needed to be done on a daily basis before heading off to work, school, or even for those who stay at home during the day.

Depending on the individual, the order and type of activity will change, but it is fairly common for some type of morning routine to set in for all individuals. Seldom are these developed routines conscious choices, as people often simply fall into certain patterns depending on the interests, needs, strengths, and weaknesses. There is nothing inherently good or bad about routines, as they can be a wonderful addition to someone's life, or they can include negative aspects that are a continual hindrance.

Continue reading "Your Daily Routine" »

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Fox's long-running television show Married with Children had quite the cast of characters. Chief among them was the father, Al Bundy, whose failures in life helped provide the comical setting that kept the show running for numerous years. Amidst all of his personal and professional failures, Al would occasionally reminisce about the one time in life that he was successful, high school. Al would tell the story of the high school football game in which he scored four touchdowns to anyone that would listen, hoping that through past glory the listener would look more favorably on the man that stood before them.

While we can laugh at a comical character such as Al Bundy, the behavior of glorifying past actions is hardly an uncommon human behavior. Sit in a circle of financial market traders, and stories of individuals' all-time best trade are bound to come up. Sit in a circle of real estate investors, and stories of that deal where the individual made a killing will eventually be told. Regardless of the professional or social circle, it is very natural for stories of great accomplishment to be told by their respective teller.

Continue reading "The Past" »

Posted 10:49 AM | Permalink | Comments (0) | TrackBacks (0)

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.

Continue reading "Overcoming the Fear of Making Offers" »

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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.

Continue reading " Support and Resistance" »

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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.

Continue reading " Paying the Price" »

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One of the most enticing aspects about real estate is the variety of ways one can make money. Many new real estate investors start off with the traditional buy, fix, and sell model to turn a profit, while others purchase properties in order to generate cash flow by leasing or renting the property to others. The straightforward and profitable manner in which these deals can be done attract investors from all walks of life who are looking to either supplement their current income, start a new profession, or to generate cash flow that will eventually allow them to escape the rat race.

While all walks of life are attracted to real estate, not all individuals who start out in real estate are on equal footing. Some new real estate investors simply have more investment cash or access to funds due to good credit and contacts in life. For those that lack the initial financial resources to try traditional approaches, the wholesaling strategy can be a wonderful strategy that allows individuals to enter the real estate game without a ton of money upfront. Wholesaling can also be a great strategy for new investors with financial capital, as it allows them to get their feet wet and gain experience without tying up their precious resources. Even the most experienced real estate investor can encounter times when they run across a good deal but are cash poor. Wholesaling allows them to take advantage of the deal despite not having the current resources available.

Continue reading "Wholesaling" »

Posted 04:38 PM | Permalink

Traders in the financial markets can loosely be divided into two groups. In the first group is the trader who relies primarily on fundamental analysis. This type of trader focuses on the fundamentals of a company - Price to Earnings Ratio (P/E ratio), Return on Equity (ROE), Price/Earnings-to-Growth (PEG ratio), Earnings per Share, Growth Rate, etc. - and attempts to ascertain whether or not a company's financial situation, future growth potential, and other considerations warrant investment in that company. Seldom does a trader in this area look at one simple fundamental, such as a company's P/E ratio, as the determination to invest is based on a multitude of criteria. Those that invest based on fundamental analysis are usually bent towards a more long-term investment view. Rarely would a fundamental investor take short-term profits simply because a stock went up after a few weeks.

Some of the richest investors in the world are fundamental investors. Investors like Warren Buffet have made a fortune by determining which companies are undervalued and have excellent growth opportunities, and avoiding companies that are overvalued, mismanaged, and/or simply lack the financial stability or growth opportunities that other companies have.

Continue reading "Trends and the Technical Trader" »

Posted 05:01 PM | Permalink

"The only difference between a rich person and poor person is how they use their time" ~Robert Kiyosaki

"The most life-destroying word of all is the word tomorrow" ~ Robert Kiyosaki

There are many things in the Rich Dad philosophy that are inspiring and edifying. Understanding how to make your money work for you, learning about cash flow, and the Cashflow Quadrant are just a few topics that have opened up a new world to the individuals that have taken the time to read Robert Kiyosaki's writings. In reading and learning about the numerous ways to maximize wealth potential, one area that often gets overlooked by the casual reader is the constant emphasis that Mr. Kiyosaki puts on maximizing your time; specifically, maximizing your time today.

When you combine the two quotes above, a very clear image is painted on the manner one should pursue their dreams. First, maximizing your time is a clear principle that separates the successful from those that fall short of achieving their dreams. Second, in managing your time, those things you put off to tomorrow have the potential to undermine everything you are attempting to do. In combining the essence of these two quotes, we receive a carpe diem, seize the day, sort of message. If this message is applied, productivity and success will soon follow.

Continue reading "Carpe Diem" »

Posted 04:30 PM | Permalink

“The size of your success is measured by the strength of your desire; the size of your dream; and how you handle disappointment along the way.” ~ Robert Kiyosaki.

Whether you are a real estate investor, a trader in the financial markets, or an entrepreneur, you have dreams. These dreams may be to retire at a certain age, to make a certain amount of money, or to achieve financial freedom so you can quit your job and work for yourself. If someone asked you what your dream was, little reflection would likely be needed as you know what motivates you to head down your chosen path.

Continue reading "Real Estate Goals" »

Posted 04:10 PM | Permalink

I recently asked five different traders what their goals for the coming year were, and here are the responses:

• Trader One: Goal was to make $200,000 in the coming year
• Trader Two: Goal was to make $50,000 in the coming year
• Trader Three: Goal was to make $125,000 in the coming year
• Trader Four: Goal was to make $20,000 in the coming year
• Trader Five: Goal was to turn a profit in trading this year.

Each of these trader’s goals for the coming year revolved around how much money they wanted to make. This is hardly a surprising revelation as success in the financial markets is determined almost exclusively on the amount of money you make trading. The amount of money you make in the course of year can be defined as a yearly macro goal, and while there are benefits to this type of goal setting, there are certainly drawbacks as well.

Continue reading "Financial Market Goal Setting" »

Posted 04:03 PM | Permalink

“I am successful because I am driven by my dream instead of my circumstances. Focusing on my goals helps me overcome disappointment and enables me to accomplish what I set out to do” ~ Robert Kiyosaki

Dreams are perhaps the most powerful force in the world. They provide us the image of what we can be, and what we can accomplish in this life. No matter how dire the circumstances we find ourselves in, dreams allow us to escape the moment, and project our future self and our future surroundings. This is what I believe Robert Kiyosaki is talking about when he refers to being driven by his dream rather than his circumstances. No matter what negative forces may be occurring on any given day, a person's dream provides the force and motivation to work through the setbacks that may be occurring.

Continue reading "Goal Setting" »

Posted 03:56 PM | Permalink

Home, sweet home ... but is it really as sweet as it could be? If you’re like most homeowners, there is a lot of sweetening that could be done to your home if you only had the time and the money. Well, if you do the proper planning, you can accomplish numerous projects around your home in less time than you think. All it takes is to plan ahead, block out some time and start. Sounds easy, so let’s get going.

Here is a list of several projects that can usually be accomplished in a weekend. Depending on your skills and desire to do the work yourself, you can save a lot of money. But hiring the work out is always an option, and with a lot of folks looking for work, you might find that you can get the job done without breaking the bank. Some jobs will require the use of professionals, especially more extensive projects involving wiring and plumbing. But for now, let’s concentrate on projects you can do yourself.

Continue reading "Secrets to Successful Do–It–Yourself Home Improvement Projects" »

Posted 04:28 PM | Permalink

Trading is considered a business for a professional. Yet not all people who trade the markets treat it as a business. Do you want to know if you are a serious trader? Here is a simple litmus test: Can you recall the entry date, price, size, total profit and loss, exit date, and the reason behind why you made your last five trades? If the answer is no then you have a lot of room for improvement in getting organized.

Continue reading "Getting Organized—Are You a Serious Trader?" »

Posted 04:26 PM | Permalink

It keeps us from pain—but also keeps us from growing

“Fear’s like a giant fog. It sits on your brain and blocks everything…But you lift it and, buddy, you’re in for the ride of your life.”

That quote came from Albert Brooks’ Defending Your Life, a film with a simple premise: fear holds us back from becoming our better selves. And the F-word takes its greatest shape in avoidance and denial. If I don’t deal with it, I don’t have to feel embarrassed. No, you just have to spend your life running away.

Continue reading "Avoidance and Denial" »

Posted 04:24 PM | Permalink

There are numerous real estate millionaires and billionaires in this country who, for the most part, quietly enjoy their wealth out of the limelight. Many of these investors started with nothing or very little. Some graduated from college, and others either dropped out of college or skipped college altogether. Several investors have gone bankrupt (or at least have come very close), or at one time or another have lost properties to lenders. But they recovered and are now millionaires or billionaires. Why were these investors able to recover from huge losses, even bankruptcy? Because they had knowledge—knowledge of real estate, real estate markets, and of what it takes to make money in real estate. But it wasn’t just knowledge that created their success—it was also taking action and making it happen! The bottom line is that when you have real estate knowledge and the experience of putting that knowledge into action, you can lose it all and make it all back again.

Continue reading "Why Real Estate? Is it Still the Best Game in Town?" »

Posted 01:59 PM | Permalink | Comments (0) | TrackBacks (0)

When venturing into the financial markets, it is easy to become overwhelmed by constant barrage of information and hot stock tips spewing forth from seemingly every media source. Financial television, websites, and newspapers all combine to create a cacophony of voices seeking to influence which stocks you invest in. Many an investor has fallen prey to entering poor trades based off of some third party's recommendation. By gaining the proper education about the financial markets, you are placing yourself in a more powerful position to make decisions about your investing and trading. As you gain confidence and experience, you should begin to tune out the noise from third parties and begin to use your own noodle in determining what’s an appropriate stock to trade.

All traders must eventually decide not only what to buy, but when to buy it. Although there are various methods used for answering these questions, the two schools of thought that dominate the trading arena are fundamental and technical analysis. The superiority of either method has been debated for years and there has been volumes written on the subject. The purpose in today’s article is not to sway you into one camp or the other; rather, I seek to present an objective overview contrasting the differences of either method. In the end, it is up to you to decide how much emphasis you place on either technical or fundamental analysis in your personal trading.

Continue reading "Technical vs Fundamental Analysis" »

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When it comes to understanding your life, whether you are focused on your career, a relationship, or a recurrent problem or theme, you have a choice: you can make it better, or you can make it worse. You and only you can assure your happiness, guarantee success, and face any adversity with determination and courage. Ultimately we each have the choice, to be the best and most positive product of our life experiences.

Isn’t it interesting that we humans go through the stages of awareness multiple times in life? As toddlers, we speak in the first person, totally aware of ourselves and the fact that our world revolves around us. In pure innocence, we think, we act, we try everything. Then we lose this confidence, after being told time and again that the world does not revolve around us, until we give up our first person understanding and step back into the masses with uncertainty and doubt.

Continue reading "Defining Yourself" »

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At the beginning of any new endeavor, one can easily become overwhelmed. Even the most excited and energized individual can become frustrated in the initial stages of real estate investing while simply putting together a power team, learning comps, and making offers. Couple these fundamental building blocks with the process of learning the basic principles of real estate investing and it may not seem like there is the time available to the new investor to succeed. Fortunately, as thousands of real estate investors can attest, real estate investing is a learn-as-you-earn business. As time passes, your real estate investing will develop a foundation, your power team will materialize, and your skills at making offers and evaluating properties will become fine tuned. If you are a new real estate investor and believe this to be true, then one simply needs to get through the initial frustrating stages that new real estate investors often encounter.

One of the easiest ways to mitigate potential frustration in the initial stages of real estate investing is to focus your initial energies on a specific location/area and develop specialized knowledge of that area. Many people have used the analogy of diving into the pool and learning to swim to explain how to succeed at real estate investing. While this analogy certainly holds water, one also doesn't simply want to be doggie paddling through their initial first few years either. It is tempting, and many succumb to this temptation, to want to learn about their whole city or region right off the bat. The figure of speech, "jack of all trades, master of none" comes to mind in describing the skills that these individuals may develop in evaluating properties.

Continue reading "Concentrated Effort in Real Estate - Farming an Area" »

Posted 04:15 PM | Permalink | Comments (0) | TrackBacks (0)

The German-born American architect Ludwig Mies van der Rohe is attributed with coining the phrase "less is more." This is a fact that I was unaware of until I Googled it as I had always attributed this saying to my art history teacher my freshman year of college. I only remember two things from that class. The first thing was wondering whether the state required professors to use the saying less is more a requisite number of times each class period. The second thing I remember is the exaggerated manner in which the professor separated his hands as he slowly emphasized the words less and more. It was as if 18 and 19 year olds needed a visual depiction of what the concepts less and more actually were. Needless to say, I did poorly in that class.

Sometimes the lessons parents, professors, and others try and teach us take years to sink in. Decades later I must apologize to my professor as I have come to realize that 18 and 19 year olds actually do need visual depictions for just about anything to sink in. The years have also taught me to believe in the concept of less is more. While this has varied meaning in my life, it perhaps has no better practical application then how I manage my financial market watch list.

Continue reading "Concentrated Effort - The Financial Markets - Your Watch List" »

Posted 04:03 PM | Permalink | Comments (0) | TrackBacks (0)

The economy isn’t going your way—now’s the time to find what your positive spirit is made of.

Just a couple years ago it seemed the ceiling was unlimited. People were flipping houses like pancakes, the Dow Jones didn’t seem to know a stock it didn’t like and discretionary income didn’t exactly call for a whole lot of discretion. Now, however, it’s not calling at all. Unemployment is trending in ways that bring up the term depression, and not just in regards to the way you’re feeling right now. Saying times are tough is kind of like saying Mike Tyson is irritable. Still, now’s the time to remember what true wealth is. To appreciate all the incredible people around you. And, if you don’t have any, to make an investment in finding some. Now is the moment to find out what being positive really is.

Continue reading "Positive Test" »

Posted 03:59 PM | Permalink | Comments (0) | TrackBacks (0)

Real estate by its nature is a people business. During the course of any given deal, a real estate investor can interact with dozens of various people. In making offers and inspecting properties, a real estate investor can deal with literally hundreds of different people between deals. Without a doubt, real estate is a people business and effectively dealing with people and finding the right people to work with can mean the difference of a lucrative profession or going back to the rat race.

Continue reading "The Real Estate Power Team" »

Posted 11:08 AM | Permalink | Comments (0) | TrackBacks (0)

To succeed as a stock trader at the highest level, one must have developed analytical skills and a level of discipline that would make a Buddhist monk proud. The stock trader makes his living (or supplemental income) in the cold, impersonal, and unforgiving world of numbers. Technically speaking, to succeed in this world, one does not need human interaction, as even the need to talk to a broker has been eliminated in the last decade with easy-to-use trading platforms. Yet even in this cold and calculating world, developing the right connections with people can greatly increase the likelihood of your success.

Continue reading "Your Trading Network" »

Posted 11:03 AM | Permalink | Comments (0) | TrackBacks (0)

It is not a secret that people like doing business with individuals they like. People that are likeable simply have an easier time succeeding than those who are not. Whether you are an entrepreneur looking for capital or a real estate investor trying to close a deal, how people feel about you can be the difference between getting a deal done or not. If it has not been a priority before now, you should make it a priority to develop the personal traits that will help make you a more likeable and well-rounded person.

Continue reading "The People Person" »

Posted 10:52 AM | Permalink | Comments (0) | TrackBacks (0)

Becoming a professional trader has many attractive advantages. Modern technology allows the modern-day trader to work from just about anywhere. Whether it is from the comfort of one's home or a coffee shop, one can access the stocks they are following or research information necessary to make proper decisions. Trading also doesn't require an excessive amount of capital to start with. While you won't be able to quit your day job on a $1,000 account, small initial investments are attractive to an individual just getting their feet wet.

Regardless of your ambition – to manage your current holdings, to provide supplementary income, or quit your day job to eventually trade professionally – there are several areas that need to be mastered before you place your first trade.

Continue reading "Getting Started in the Financial Markets" »

Posted 10:29 AM | Permalink | Comments (0) | TrackBacks (0)

All great products and services first start out as an idea. These ideas can formulate in a boardroom, amongst two friends talking, or while one is taking a shower. Ideas are somewhat sporadic in nature as they seldom can be forced and can arrive in the least expected situations. Regardless of their origination point, whatever success you enjoy in business will be the result of an idea.

So the natural starting point for any new entrepreneur is coming up with an idea for a new business, product, or service. For the new entrepreneur, it is highly probable that you already have at least one, perhaps numerous, ideas that you believe will be successful. So what are the first steps to take once you decide to start making your idea a reality? As action starts to give ideas form, ideas head down one of three paths. Choosing the correct path can be the determining factor on how you spend your time, and whether your dreams become fulfilled.

Continue reading "The Path of the Entrepreneur" »

Posted 10:26 AM | Permalink | Comments (0) | TrackBacks (0)

Those who desire to become entrepreneurs share many similar characteristics. These individuals are driven, ambitious, and oftentimes confident people. This confidence gives them the strength to go out and succeed on their own. This confidence can also bring with it an admirable stubbornness. This stubbornness can bring with it the resilience to get through tough times and succeed where others may fail. This admirable trait can also bring with it some negative aspects. Stubbornness can bring with it the desire to be self contained and not seek out the advice and guidance of others. The desire to do it oneself can have a hampering effect on the growth and even potential success of the would-be investor.

Continue reading "The Value of a Coach" »

Posted 10:24 AM | Permalink | Comments (0) | TrackBacks (0)

Real estate investing offers numerous advantages that are attractive to beginning investors. For those desiring to exit the rat race and increase their passive income, real estate investing can provide the cash flow necessary to accomplish this goal. The techniques and principles behind successful real estate investing are straight forward and allow an individual to get started fairly quickly once the proper educational foundation is in place. At that point, the process of evaluating properties and making offers starts leading up to the much anticipated first deal of the new real estate investor.

Before that first offer is made and first deal finalized, the prospective real estate investor should set the proper foundation. This foundation is based on the knowledge of strategies needed for deals, the techniques necessary for those deals, and the people that will help make that first deal come to fruition.

Continue reading "Getting Started in Real Estate" »

Posted 10:18 AM | Permalink | Comments (0) | TrackBacks (0)

A motivated seller is someone who needs to sell their home, not someone who just wants to sell their home. Someone who just wants to sell their property is usually expecting a full-price cash offer and if they get it fine, but if they don’t, they have the time and resources to wait until they find someone to pay their full asking price for the property.

On the other hand, a motivated seller has to sell the property by any means necessary and is looking for a solution to his or her immediate problem, which is to get rid of the property now! A real estate investor who comes up with a workable solution can usually buy such properties at bargain prices.

Continue reading "The Basics of Real Estate Investing: Finding Motivated Sellers" »

Posted 01:29 PM | Permalink | Comments (0) | TrackBacks (0)

There is a plethora of readily accessible information on effective communication, though a disproportionate amount of counsel is devoted to the honing of one’s verbal communication skills. This is quite unfortunate, since it is estimated that as much as 93 percent of communication is nonverbal in nature. If such statistics are to be believed, a meager seven percent of the message we present is comprised of our words, the remaining amount consisting of such things as eye movement, vocal tone, speed of speech, facial expressions, use of space, gestures, posture, inflection, eye contact, and body movement. To a business person who has predominately focused on verbal communication in his or her efforts to become more successful in their chosen field, this realization should be sobering. This is especially true because a person could have all the right words, and still fail miserably.

Continue reading "Nonverbal Skills" »

Posted 11:46 AM | Permalink | Comments (0) | TrackBacks (0)

Owning rental real estate can be very rewarding, but it can also be very frustrating, especially if you decide to manage your own properties. Rental real estate is really the perfect investment…that is, until you put tenants into the equation. Tenants – you may love them or you may hate them, but you can’t do without them. There is simply no way around it. You must learn how to effectively deal with tenants and become a super landlord.

The first article mainly discussed the tenant-screening process. In review, there is no absolute right way to screen a tenant, but a good screening process will help you become a super landlord and will set you up for success. It is important to develop a system that works for you and use it on every new tenant. Never skip this step!

Continue reading "Secrets to Being a Super Landlord - Part Two" »

Posted 11:44 AM | Permalink | Comments (0) | TrackBacks (0)

A few years ago, few people had ever heard of a short sale. Nowadays, short sales are common real estate lingo. The total number of short-sale transactions has skyrocketed in the past couple of years. The news media throws out all sorts of statistics. For example, one in five real estate transactions now involves a short sale, and in some areas, up to 50 percent of the real estate transactions are short sales. Who knows what the true numbers are but one can say without hesitation that in most parts of the country there are a lot of short sales going on!

In today’s real estate climate, if investors do not take advantage of the opportunity offered by short sales, they are really missing the boat. Investors need to be trained experts at negotiating short-sale deals. Our company offers both online and live courses dealing with foreclosures and short sales. These courses, coupled with a good real estate coach, will prepare investors to compete.

Continue reading "Short Sale Magic - What is a BPO and Why is it Necessary?" »

Posted 05:30 PM | Permalink | Comments (0) | TrackBacks (0)

Owning rental real estate can be very rewarding, but it can also be very frustrating, especially if you decide to manage your own properties. Rental real estate is really the perfect investment…that is, until you put tenants into the equation. Tenants – you may love them or you may hate them, but you can’t do without them. There is simply no way around it – you must learn how to effectively deal with tenants and become a super landlord.

Before you have to deal with tenants, you must first purchase rental property. The first, and most important thing you need to do when getting involved in rental real estate is to buy right. If you don’t buy right, then you may be doomed to failure no matter how good a landlord you might be.

Continue reading "Secrets to Being a Super Landlord" »

Posted 12:12 PM | Permalink | Comments (0) | TrackBacks (0)

While there is a plethora of readily accessible information concerning effective communication, a disproportionate amount of counsel is devoted to the honing of one’s verbal communication skills. This is quite unfortunate, since it has been estimated that as much as 93 percent of communication is nonverbal in nature. If such statistics are to be believed, a meager seven percent of the message we present is comprised of our words, the remaining amount consisting of such things as eye movement, vocal tone, speed of speech, facial expressions, use of space, gestures, posture, inflection, eye contact, and body movement. To a business person who has predominately focused on verbal communication in his or her efforts to become more successful in his or her chosen field, this realization should be sobering. This is especially true because, theoretically, a person could have all the right words, and still fail miserably.

Continue reading "More than Words" »

Posted 10:24 AM | Permalink | Comments (0) | TrackBacks (0)

You may have heard that one of the biggest obstacles to your success is yourself. We get in the way of our true potential in many ways. Fear and doubt are huge hindrances, but another is our lack of organization. When we are unorganized, outcomes are haphazard at best and efficiency is nowhere to be found. You will find that successful people are organized and efficient. They organize their tasks, workspaces, and the tools they use to get work done.

It all begins with knowing what you want (goals), then mapping out how to get there (a plan). One of the main reasons people do not take the time to organize their lives is they think it will take too much time. I can vouch from experience that it costs considerably more time to plow through life unorganized. When I fully organize my week and then each day, I achieve many times more tasks than on the days that I fail to plan. The same is true with my workspaces and the tools I use to get my work done. If my workspace is a mess or my tools are scattered, I spend more time finding what I need than actually doing the tasks.

Continue reading "Organizing for Success" »

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The past year has been a wild ride in the real estate and financial markets, a ride that has produced record numbers of foreclosures and declines in residential home values. The financial backbone of the country has been shaken to the core. Multitudes of banks have gone under, and those that are left have tightened their lending criteria to the point that only those with excellent credit and large down payments qualify for mortgage loans.

Even with the massive government bailout package, the economy is still weak; the unemployment rate is at double digits in some areas of the country and the auto industry is all but bankrupt. However, there are signs that the depression is waning; a glimmer of light can finally be seen. Even so, the housing market is turning toward apartment living. Many people still do not qualify for mortgage loans, as many have high credit card debt, and others are dealing with the tough realities of bankruptcy.

Continue reading "Are You Ready for the Next Apartment Boom?" »

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Although we negotiate on a daily basis, whether we realize it or not, most people are not naturally gifted negotiators. It is a skill that must be learned and honed overtime.

According to Harvard Business Essentials, “Negotiation– whether brokering a deal, mediating a dispute, or writing up a contract – is both a necessary and challenging aspect of business life.” Unfortunately, far too few people are prepared for or equipped to handle this aspect of life. The purpose of this article is to give you a basic overview of the skill of negotiation, and some general tips for its use.

There are two-main types of negotiation: distributive and integrative negotiation.

Continue reading "The Powers of Negotiation" »

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What is a business mixer? A business mixer is a networking event that offers business people a chance to meet and greet other professionals. The purpose of a mixer is to help business people make new contacts that can benefit their businesses in a number of ways at some point in the future. Hosting a party for your associates and peers may sound intimidating, but there are 15 easy steps to follow to make your event a hit.

1. Make a list of your business contacts. The list should include anyone with whom you have had business dealings in the past, as well as any professionals with whom you are even casually acquainted. Next, think of any people in your community who you know by reputation only who might be looking for an opportunity to network

Continue reading "Steps to Throwing Business Mixer" »

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This series of articles on the basics of real estate investing discusses what an investor needs to know in order to take advantage of the current real estate market and build a profitable real estate investing business. To some, real estate investing may seem somewhat complicated, but it’s actually easier than one might think. This doesn’t mean you can just read a book or go to a seminar or two and gain all the knowledge you need to safely invest, but it does mean that with some effort, you can get the training you need to start investing. Rich Dad Education provides numerous courses (online and live) covering the basics of real estate investing. If you couple those courses with a personal real estate coach and a Mentor, you can gain the knowledge you need to start investing in record time.

Nothing will give a real estate investor more confidence than having a super buyer’s list. It helps to take away the number one fear that investors have—the fear of not being able to sell a property that they buy. This is especially worrisome for many investors in the current buyer’s market where it is more difficult to sell a property; however, with a good buyer’s list the property can easily sell.

Continue reading "Real Estate Basics: Real Estate Investing Secrets to Building a Super Buyer’s List" »

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Many think creative financing involves complex, difficult strategies; however, it simply means finding an alternate way to solve financial problems. When faced with a challenge to finance a property, always use a simple solution.

In a previous article in this series, we discussed the importance of putting together an easy-to-understand loan-request package. With this package, you may get the best (and cheapest) financing available, whether your source is a traditional lender, like a bank, or a private lender.

There are situations, however, in which traditional financing is not available (or not practical), and an investor has to be very creative just to get the deal done. In this series of articles on creative financing, we will discuss numerous methods and techniques to get a property financed. The more methods you understand, the easier it will be to find solutions to sellers’ problems

Continue reading "The Art of Creative Financing: Using the Seller as a Financing Source" »

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Many think creative financing involves complex, difficult strategies; however, it simply means finding an alternate way to solve financial problems. When faced with a challenge to finance a property, always use a simple solution.

In a previous article in this series, we discussed the importance of putting together an easy-to-understand loan-request package. With this package, you may get the best (and cheapest) financing available, whether your source is a traditional lender, like a bank, or a private lender.

There are situations, however, in which traditional financing is not available (or not practical), and an investor has to be very creative just to get the deal done. In this series of articles on creative financing, we will discuss numerous methods and techniques to get a property financed. The more methods you understand, the easier it will be to find solutions to sellers’ problems

Continue reading "The Art of Creative Financing: Using the Seller as a Financing Source" »

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If you have to develop ways to invest in real estate without using your own money, you will soon master techniques that allow you to buy in any market, under any conditions. Along the way, you will also develop numerous sources of funding and not be short of money for your real estate deals. In addition, you will always be glad you learned to invest in real estate without using your own money.

Probably the single-most asked question by new real estate investors is, “How do I start investing when I don’t have money or good credit?” There are many answers to that question and we will address different methods for investing in real estate with little or no money in this series of articles.

What every new investor needs to realize is that you don’t need excellent credit and a surplus of cash to get started in real estate investing. In addition, you don’t need to own a property to profit from it; you only need to control it to harness its money-producing potential.

Continue reading "Where do I Start When I’m Broke?" »

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The current economy is very shaky at best and no one seems to really know what is coming next. Will we soon be on the road to recovery or are we headed for another Great Depression? What we do know is that money is tight and most people are trying to save and build themselves a little nest egg for the future. But banks are paying extremely low interest rates on deposited funds and savings are actually shrinking, rather than growing, when inflation is considered. It’s no wonder that real estate investing is something that more and more people are becoming interested in. Many are choosing to invest in real property as a way to get their money to grow faster.

Continue reading "The Basics of Real Estate - Determining Property Value" »

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What is probate?

Probate is a process that occurs when a person with assets passes away. Simply put, it is a legal process to clear and transfer the deceased person’s assets to the appropriate beneficiary, be it a person, entity, corporation, or charity. Each state has its own rule concerning the dollar-amount value at which an estate must go through the process of probate. The set of statutes, limitations, and laws defining and governing this process vary by state, so be mindful that learning the particulars of specific states’ process is essential if you plan to be able to navigate the process successfully. You may want to consult with an attorney to ensure that you are sufficiently educated concerning the potential parameters and criteria with which you may be dealing. Your local title company may be able to answer some questions as well.

Continue reading "What Does Probate Mean to the Investor?" »

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Probably the most frequently asked question by new real estate investors is, “Where do I start when I don’t have any money?” There are many answers to that question and we will be addressing several different methods for investing in real estate with little or no money in this series of articles. What every new investor needs to realize is that you don’t need excellent credit or a surplus of cash to get started in real estate investing.

Continue reading "WHERE DO I START WHEN I’M BROKE?" »

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By Harold Moses

I now hear, “It’s a great time to buy property!” several times a day. With all the inventory surpluses available and the builder incentives being offered, many wonder how a buyer could go wrong. It is important to keep in mind, however, that an investor buys a property for completely different reasons than a home owner does. There are numerous ways an investor can go wrong if he or she is not careful. So how can an investor be sure to make a sound buying decision? The answer comes down to the age-old question of how to make money in real estate.

Investors typically make money from cash flow, equity going into the deal, appreciation, and/or depreciation.

Continue reading "Why are you buying that investment property?" »

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The decision has been made – you are going to start a business. You have put a lot of thought into this new venture, completed extensive research into your market, and have written a stellar business plan to guide you through start-up and the first year of running your business. Your business has great potential and everything seems to be in place except for one minor detail: the money.

Continue reading "How to Find the Right Funding for Your Business" »

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By Jacquelyn Lynn

The rate of foreclosures and the potential profits they offer to investors mean that they are likely to remain a popular real estate strategy for the foreseeable future. But there’s an old saying, “the devil is in the details,” meaning that the fate of even the largest projects depends on the success of its smallest components, a fact that is certainly true when it comes to foreclosure investing. One of those details you need to understand and keep in mind is the right of redemption.

The right of redemption is the right of a property owner to redeem his or her real estate from foreclosure by paying the lender the outstanding principal and interest due, plus the lender’s costs in foreclosure, or to redeem foreclosed real property from whoever purchased it at the foreclosure sale. The specifics, such as how long the owner has after the property goes to auction, exactly what has to be paid, and even what the process is called, will vary by state.

Continue reading "Foreclosure Investing Detail: Understanding the Right of Redemption" »

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It is the best of times and the worst of times! Yes, everyone can agree that in almost all areas in the country it is a strong buyer’s market − the best of times for buying property at big discounts. But it’s also the worst of times when it comes to selling those same properties. The old rule of buying low and selling high doesn’t work in a buyer’s market. You must buy even lower and sell low. And even then, you have to be creative in how you sell.

Continue reading "Round Robin Auctions" »

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January came, a new year and a new beginning, and you made goals. Hopefully, you broke the bigger goals down so that you had weekly activities to help you achieve those goals. Now, time has passed, you have hit some road blocks, and you are starting to get discouraged.

Continue reading "Networking" »

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By Mark Gilliland

It is no secret that if you have two similar homes, the home that looks nicer typically sells faster. A concept people fail to understand however, is that with a few smart choices you can make your rehab look nicer without much additional cost and in some cases, not even a penny more!

In this market, asking a realistic price is crucial and this article is intended to help sell your home faster for market value.

Continue reading "Sell Your Home Faster Using Color" »

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At some point in time virtually every broker of discount residential mortgage notes will be drawn to the lucrative commercial side of the cash flow industry and the world of invoice factoring and alternative commercial finance. And, rightfully so. With its almost legendary potential for earnings and its uniquely prestigious nature, factoring offers an exceptional career option for those exploring opportunities in the cash flow industry.

Continue reading "Introduction to Factoring" »

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Real estate investing can generally be summarized into three steps:

• Find It
• Fund It
• Finish It

You must be good at all three steps in order to be a successful real estate investor. In today’s real estate market, “finding it” has become a lot easier. Foreclosures are at record highs. REOs (Real Estate Owned) are numerous. Motivated sellers are everywhere. All you have to do is go out and spend a little time, and you can usually find all the properties you want. The third step, “finish it” (sell or rent), is a topic for another day. But if we can’t “fund it,” we don’t have to worry about “finishing it,” because we won’t even have it!

Continue reading "Is "Hard Money" Really that Hard?" »

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If you are taking the time to read this magazine, you are probably seeking to gain the knowledge necessary to create wealth through improving your financial intelligence. Whether or not one is conscious of such a fact, we all seek to discover investment opportunities which fit our personal “investor DNA.” As you read, aren’t you just waiting for that one, life-changing idea to pop out of the pages, give you a V-8 smack on the forehead, and experience that satori moment that will change and charge your future forever?

Continue reading "Opportunities Abound Through Real Estate" »

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Savvy landlords set and enforce clear rules for their tenants, but tenant rules and policies are not a “one size fits all” proposition. What do you need to consider when establishing rules and regulations for your tenants?

By Jacquelyn Lynn

Whether you own one rental property or hundreds, whether they are single-family homes or multi-unit buildings, your rental agreement should include a clear list of the rules and regulations by which you expect your tenants to abide, as well as the consequences for failure to do so. The rules need to be reasonable, appropriate for the property (for example, you don't need rules for pools or playgrounds if you don't have them), and specific enough to protect your interests.

Continue reading "Setting Rules for Your Tenants" »

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By Mark Gilliland

It is no secret that if you have two similar homes, the one that looks nicer typically sells or rents faster. A few smart color choices can make your rehab stand out in a positive way with little or no additional cost.

Color is a powerful tool and very useful in attracting people to a property. Consider that small details have a huge impact on our subconscious appreciation for any work of art. Your rehab is your canvas. Before you begin painting, consider all of the colors you intend to use and how they will work together to create a masterpiece both inside and out.

Continue reading "Sell or Rent Your Property Faster Using Color" »

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Developing a Playbook: The 5 T’s of Trading

By Tyler Craig

Is it realistic to expect consistent returns from your trading if you have an inconsistent, unsystematic approach? Of course not. Most traders would concede the fact that developing a trading plan is essential to becoming a successful, savvy trader. However, while most accept this, few choose to actually take the time to develop a plan.

Continue reading "5 Ts of Trading" »

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Keep It Covered: Insuring Your Real Estate Investments

As an investor, your insurance needs are different than a typical consumer—and as your portfolio grows, those needs will change

By Jacquelyn Lynn

As part of the terms of a mortgage loan, most lenders require borrowers to carry property insurance. But simply meeting the requirements of your lenders does not necessarily mean that you are adequately insured. To be sure that your real estate investment business is properly covered, understand what your risks are, how much liability you are able to accept, and what types of policies are available.

The basic types of business insurance include:

Continue reading "Insuring Your Real Estate Investments" »

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Being an Investor Means Being an Investigator

By Mich Christensen

Why do we need to investigate properties when investing?

For the investor to choose a property wisely, he must find out everything about who owns the property, the history, and what is happening to the property. In anything we do in life there is a process—a procedure, a logical reason, and a methodology to accomplish our goals. Just as you follow a recipe for consistency in the kitchen, there is also an optimum plan when investing in property.

Continue reading "Real Estate Investors are Investigators" »

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Is Your Mind Geared for Investing?

By Kim Kiyosaki

Do you want to be a Rich Woman?

Most women will answer, “Yes!” Or “Well, I’d rather be a rich woman than a poor woman.” And, of course, there are those who will reply, “You know, money isn’t everything. And I’d rather be happy than rich.”
I never understand why some people think happy and rich are mutually exclusive–that you must choose one at the expense (or exclusion) of the other. My question is: Why not be both? Why not be rich and happy?

Continue reading "Kim Kiyosaki: Is Your Mind Geared for Investing?" »

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