Archive for January, 2007
January 07 ~ A brave new world
Posted by: | Comments- Win Lotto. Big Wednesday would do but preferably just a first division prize will give you the maximum number of deposits. The problem with Big Wednesday is the 2 cars you win halve in value as soon as you get the keys.
Now an important note here. The odds of you winning lotto are so small that no one with a financial education would ever buy a ticket. Stick $5 a week in the bank and you are at least guaranteed $260 a year return. These are better odds than lotto.
- Rob a bank. If instant gratification is your thing then this is the path for you. Zero to hero in 24 hours. And unlike lotto where you are unlikely to beat the odds, with this strategy you are almost guaranteed a long all expenses paid holiday in an exotic location shortly after completing your first deal. NOTE: This strategy is not recommended for people who dislike urinating in public or have an aversion to striped clothing.
- Enhanced cashflow. Ok onto something serious. There are 2 issues with investing from 2007 onwards. Finding funds for deposits and funding negative gearing. So mechanisms that enhance cashflow will be an essential part of that process. The main cashflow enhancer that I recommend and teach on is lease options. There is no better way to produce 10 to 17% returns on every property than lease options, and I believe you will need to understand how they work and use them when the right properties or people come along. It is not possible to explain here in any detail how they work, but work they do!!
If you’d like to learn about lease options you need to come and do one of my courses.
HERE. I believe it is the future of cashflow investing in New Zealand.
Info on the next one
- Property Trading. The other essential ingredient to any serious investors cake is the ability to make lump sums of cash by trading property. There are a raft of ways to achieve this, options, off the plans, subdivides etc. but they all involve buying well and selling for more. And for more detailed info on that you need to attend my Advanced trading Workshop.
RULES OF LIFE
- Life is not fair, just get used to it.
- The world won’t care about your self-esteem. The world will expect you to accomplish something before you feel good about yourself.
- You will not make $40,000 right out of high school, you won’t be vice president with a car phone untill you earn both.
- If you think that your teacher is tough , wait untill you get a boss he doesn’t have tenure.
- Flipping burgers is not beneath your dignity. Your grandparents had a different word for burgerflipping they called it opportunity.
- If you mess up its not your parents fault. Don’t whine about your mistakes , learn from them.
- Before you were born your parents weren’t as boring as they are now. They got that ways paying your bills, cleaning your clothes and listening to you talk about how cool you are. So before you save the rainforests from parasites from your parent’s generation try delousing your clothes in your own room.
- Your school may have done away with winners and losers but life has not. In some schools they have abolished failing grades. They will let you try as many times as you want to get the right answers. They don’t bear the slightest resemblance to anything in real life.
- Life is not divided into semesters. You don’t get summers off and very few employers are interested in helping you find yourself. Do that in your own time.
- Television is not real life. In real life people actually have to leave the coffee shop and go to their jobs.
- Be nice to nerds. Chances are you’ll end up working for one.
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Over the 30 years I have been involved in real estate I have had the privilege of working with many successful property investors. In that time I have seen some who I thought smarter than me fall by the wayside when their decisions proved to be wrong and I have carefully observed those who have maintained and grown their long term wealth. In particular in the last 5 years, as I have been presenting at property seminars throughout Australia andWhat happens to you is a result of your thoughts, your feelings and your actions. So take responsibility for both the good and the bad things that happen to you.
I don’t believe in circumstances or luck.
People create their own circumstances or luck by putting themselves in the right frame of mind to accept success. Successful people know they are the pilot of their own lives. The less successful people feel they are just a passenger going along for a ride.
Become a pilot – not a passenger. By taking responsibility for both the good and bad things that happen in your life you will reduce the number of bad situations that occur and increase the number of good things that happen to you. I find that under achievers love to take responsibility for good results but always seem to blame others for their bad results. Over achievers know that both the good and the bad occur and that there is no one else is to blame for either.Once you have made a decision stand by it.
We all make decisions in different ways. Some of us just make decisions intuitively. Others must think through all the ramifications before they make a decision. Yet others of us make our decisions on gut feel - we just know what feels right.
Whichever way you make a decision once it is made, stick to it and don’t question it, even if others around you do.You will never only make good decisions. That’s impossible. Just accept your decision. Follow through. Then deal with any problems that arise immediately. Don’t let problems sit around and fester, they never disappear. So don’t beat yourself up over it, deal with it and move on.
The people with the biggest regrets are those who have never done anything, not those who made mistakes. In “The Millionaire Mind”, the author noted that a typical millionaire inIt is often been said ‘the only constant thing in life is change.’ So look forward to change and see it as an opportunity and take advantage of these opportunities while others are frozen in the past.
Property markets change, interest rates change, supply and demand changes.
The great thing is that whenever change occurs it opens up fantastic opportunities. If you are committed to moving forward, you will have to move out of your comfort zone. This is change and initially feels uncomfortable, but if things stay the same you will find you are really moving backwards.
The same is true of you in the area of personal growth. There is no such thing as “arriving”, you are either growing or stagnating. Move out of your comfort zone, that’s where they hide all the money!!Some people see the cup half full, while others see it as half empty. When confronted with opportunities, the average person finds reasons why not to do something, yet successful people look for reasons why they should take action. Find ways to make the situation work, rather than not work. This is particularly true in property where you will find vendors with problem properties. If you find a way to solve those problems you will be adding value and making money.
Speculation is based on hope. Investment is based on fact.
Speculators look for the things like the next ‘hot spot’ or the next big thing, or the latest fad. Then they hope things will work out.
Investors recognise that property investment can be boring. They know its not very exciting just buying a good property and waiting for it to increase in value, but they don’t look for excitement in their investments. They don’t want to speculate.
Investors ask questions like what has worked well over the last 20 to 30 years. They don’t try to pick the next hot spot. Instead they follow a strong longstanding trend. While successful investors avoid risk by looking for predictable returns, speculators would say ‘Well this area hasn’t performed for a long time and it is about time for it to perform’ or ‘Now must be time for things to change.’ Many speculative investors live in the world of fantasy hoping luck will solve their problems.Super successful investors know that no matter how much they wish for something to happen it is not luck that’s going to make it happen. They look at the reality of every situation and realise that they make their own luck by working hard and focusing on facts.
They don’t expect to do everything themselves and they are not afraid to pay for good advice. Successful investors surround themselves with people they trust who know more than they do. I’ve often said ‘If you’re the smartest person in your team you are in trouble.’ So be honest with yourself about your abilities.
You can’t be good at everything but you have the potential to be great at one thing. So choose your one or two things to focus on. Then find others that are better than you at the things you aren’t good at and make them part of your team.
They are not scared of taking on debt. They have learnt how to use other people’s money to grow their own substantial property portfolio.
While most beginning investors use finance to buy properties, experienced property investors understand that once they have a property portfolio they will be able to borrow against it and use finance to fund their lifestyle.
They have learned to hang out with ‘winners’ not ‘whingers.’
Find a group of like minded people and meet with them regularly to help you in your investment endeavours. Learn what makes winners and copy their habits.
Massive Action is excited to about to launch a New Zealand first that will keep you in contact with not only me and my current students but my entire team of professionals. Massive Action’s online mentoring forum will be launching February 1st. I’ll be emailing you in the last week of January to tell you more and give you the first opportunity to join me online!!I’ve been trying for some time to find a way to bring Massive value to you at minimal cost. Raewyn and I are really excited to have found a unique way to do this. Stay tuned!!
If you commit to do something always make sure you do it.
I have seen so many people in the investment business that are full of “wind.” They tell you they will do something and create all these sort of excuses why it hasn’t happened. Some of them are acting as honestly as they can. Some of them never had any intention of keeping their commitments.
To stand out from the crowd you must do what you commit to do. It will get you a great reputation in the real estate investing world.They have a different mindset and think of the big picture while underachievers tend to get lost in fine detail.
For example successful investors recognise that the value of their property, if well positioned, will double every 7-10 years. Yet the average investor will worry about fluctuation in interest rates or land tax changes or other minor details. They tend to get lost in the detail and often get paralysed while analysing the situation and they never take action.
This article was written bySo keep an eye out in your inbox for my next email. I’ll be telling you about the new online mentoring forum, our new offices, update on our Fiji work AND the first instalment of “Lease Options 101″. How to create Cashflow cashflow cashflow.
Here’s to an unbelievably enjoyable, fulfilling and profitable 2007.
