It is a unique investment tool

Richard's backing out did not surprise me. It's called "buyer's remorse," and it affects all of us. It's those doubts that get us. The little 1 chicken won, and a chance at freedom was lostIn another example, I hold a small portion of my assets in tax lien certificates instead of CDs. I earn 16 percent per year on my money, which certainly beats the 5 percent the bank offers. The certificates are secured by real estate and enforced by state law, which is also better than most banks. The formula they're bought on makes them safe. They just lack liquidity. So I look at them as 2 to 7-year CDs. Almost every time I tell someone, especially if they have money in CDs, that I hold my money this way, they will tell me it's risky. They tell me why I should not do it. When I ask them where they get their information, they say from a friend or an investment magazine. They've never done it, and they're telling someone who's doing it why they shouldn't. The lowest I yield I look for is 16 percent, but people who are filled with doubt are willing to accept 5 percent. Doubt is expensive.My point is that it's those doubts and cynicism that keep most people? poor and playing it safe. The real world is simply waiting for you to get rich. Only a person's doubts keep them poor. As I said, getting out of the rat race is technically easy. It doesn't take much education, but those doubts are cripplers for most people."Cynics never win," said rich dad. "Unchecked doubt and fear creates i a cynic. Cynics criticize, and winners analyze" was another of his favorite sayings. Rich dad explained that criticism blinded while analysis opened -< eyes. Analysis allowed winners to see that critics were blind, and to see opportunities that everyone else missed. And finding what people miss is | key to any success.Real estate is a powerful investment tool for anyone seeking financial independence or freedom. It is a unique investment tool. Yet, every time I mention real estate as a vehicle, I often hear, "I don't want to fix toilets." That's what Peter Lynch calls "noise." That's what my rich dad would say is the cynic talking. Someone who criticizes and does not

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Noise" is either created inside our heads or comes from outside. Often from friends, family, co-workers and the media. Lynch recalls the time during the 1950s when the threat of nuclear war was so prevalent in the news that people began building fallout shelters and storing food and water. If they had invested that money wisely in the market, instead of building a fallout shelter, they'd probably be financially independent today.When the riots broke out in Los Angeles a few years ago, gun sales went up all over the country. A person dies from rare hamburger meat in Washington State and the Arizona Health Department orders restaurants to have all beef cooked well-done. A drug company runs a national TV commercial showing people catching the flu. The ad runs in February. Colds go up as well as sales of their cold medicine.Most people are poor because when it comes to investing, the world is filled with Chicken Littles running around yelling, "The sky is falling. The sky is falling." And Chicken Littles are effective because everyone of us is a little chicken. It often takes great courage to not let rumors and talk of doom and gloom affect your doubts and fears.In 1992, a friend named Richard came from Boston to visit my wife and me in Phoenix. He was impressed with what we had done through stocks and real estate. The prices of real estate in Phoenix were depressed. We spent two days with him showing him what we thought were excellent opportunities for cash flow and capital appreciation.My wife and I are not real estate agents. We are strictly investors. After identifying a unit in a resort community, we called an agent who sold it to him that afternoon. The price was a mere $42,000 for a two-bedroom townhome. Similar units were going for $65,000. He had found a bargain. Excited, he bought it and returned to Boston.Two weeks later, the agent called to say that our friend had backed out. I called immediately to find out why. All he said was that he talked to his neighbor, and his neighbor told him it was a bad deal. He was paying too much.I asked Richard if his neighbor was an investor. Richard said "no." When I asked why he listened to him, Richard got defensive and simply said he wanted to keep looking.The real estate market in Phoenix turned, and by 1994, that little unit was renting for $1,000 a month-$2,500 in the peak winter months. The unit was worth $95,000 in 1995. All Richard had to put down was $5,000 and he would have had a start at getting out of the rat race. Today, he still has done nothing. And the bargains in Phoenix are still here; you just have to look a lot harder.
Par lilyschuhe le samedi 26 mars 2011

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