Real Estate Investing - How To Get Ahead

We all want to get ahead. You hear people say it all the time. But what exactly does that mean? It’s kind of a vague statement, but it sounds good. Basically, it means that you want to have more money?maybe get your earnings ahead of your cash depletion. Maybe it means you want to be able to save enough to send your kids to good universities, or be able to take your family on annual vacations. It could mean that you want to squirrel away a retirement fund.

Whatever your particular idea of getting ahead, it does imply some sort of motion?movement from where you are now to where you want to be. That means you must figure out exactly where you are now and where you should be going. Once you start to think about it, though, you may find those places are a little more difficult to determine than you had originally thought. You may find yourself beginning to struggle with just what your particular concept of getting ahead is.

Robert Kiyosaki, who authored the popular Rich Dad series of books, has mapped out a way for you to tell where you are and where you should be, if building wealth is your goal. He also gives you a plan on how to get there.

In his book ?Cash Flow Quadrant,? he introduces readers to a concept that the man he called his ?rich dad? introduced to him years ago. This quadrant is an illustration of where your money is coming from and subsequently how you think about money. Believe it or not, the two things go together.

For instant, if you are in the E quadrant, you are an employee in search of security. Someone in the S quadrant is self-employed and likes to be in control, to do things their way. A B quadrant person is a business person. (This is very different from an S-quadrant person because the B has a system that can work without their direct input, thereby freeing them for other, wealth-building, pursuits.) The I quadrant person is an investor.

According to Kiyosaki, that quadrant not only tells you where you are, but where you should be. If you are on the left side, in either the E or S quadrant, you should be making plans that will move you to the right side?first to the B quadrant then into I.

In order to do that, you need to increase your wealth by taking a job that affords you the money to invest or the time to build a business system. The system will take care of your personal needs, afford you the time to learn about investing, and provide you with the cash to purchase real estate equity. And that, my friend, is something that will make your cash grow like kudzu.

That is how you get ahead. It is a process, and you have to be systematic about it. You can’t just jump into investing without knowing what you’re doing. That is foolhardy and dangerous. You also can’t jump in if you haven’t gotten your basic needs covered. First, make sure that is taken care of. Then expand.

Kiyosaki compares the process to playing Monopoly. If you are going to win at Monopoly, you have to buy land. Then you have to put little green houses on that land, which you can later trade for big red hotels. Then you get paid.

About the Author:

Alex Anderson Helps Regular-People (Just Like You) To Successfully Invest In Real Estate. Enroll In Her Free - Educational “Investment Property Program” At: www.GreatInvestmentProperty.com

Real Estate Investing - How To Get Ahead

We all want to get ahead. You hear people say it all the time. But what exactly does that mean? It’s kind of a vague statement, but it sounds good. Basically, it means that you want to have more money?maybe get your earnings ahead of your cash depletion. Maybe it means you want to be able to save enough to send your kids to good universities, or be able to take your family on annual vacations. It could mean that you want to squirrel away a retirement fund.

Whatever your particular idea of getting ahead, it does imply some sort of motion?movement from where you are now to where you want to be. That means you must figure out exactly where you are now and where you should be going. Once you start to think about it, though, you may find those places are a little more difficult to determine than you had originally thought. You may find yourself beginning to struggle with just what your particular concept of getting ahead is.

Robert Kiyosaki, who authored the popular Rich Dad series of books, has mapped out a way for you to tell where you are and where you should be, if building wealth is your goal. He also gives you a plan on how to get there.

In his book ?Cash Flow Quadrant,? he introduces readers to a concept that the man he called his ?rich dad? introduced to him years ago. This quadrant is an illustration of where your money is coming from and subsequently how you think about money. Believe it or not, the two things go together.

For instant, if you are in the E quadrant, you are an employee in search of security. Someone in the S quadrant is self-employed and likes to be in control, to do things their way. A B quadrant person is a business person. (This is very different from an S-quadrant person because the B has a system that can work without their direct input, thereby freeing them for other, wealth-building, pursuits.) The I quadrant person is an investor.

According to Kiyosaki, that quadrant not only tells you where you are, but where you should be. If you are on the left side, in either the E or S quadrant, you should be making plans that will move you to the right side?first to the B quadrant then into I.

In order to do that, you need to increase your wealth by taking a job that affords you the money to invest or the time to build a business system. The system will take care of your personal needs, afford you the time to learn about investing, and provide you with the cash to purchase real estate equity. And that, my friend, is something that will make your cash grow like kudzu.

That is how you get ahead. It is a process, and you have to be systematic about it. You can’t just jump into investing without knowing what you’re doing. That is foolhardy and dangerous. You also can’t jump in if you haven’t gotten your basic needs covered. First, make sure that is taken care of. Then expand.

Kiyosaki compares the process to playing Monopoly. If you are going to win at Monopoly, you have to buy land. Then you have to put little green houses on that land, which you can later trade for big red hotels. Then you get paid.

About the Author:

Alex Anderson Helps Regular-People (Just Like You) To Successfully Invest In Real Estate. Enroll In Her Free - Educational “Investment Property Program” At: www.GreatInvestmentProperty.com

Real Estate Investing - How To Get Ahead

We all want to get ahead. You hear people say it all the time. But what exactly does that mean? It’s kind of a vague statement, but it sounds good. Basically, it means that you want to have more money?maybe get your earnings ahead of your cash depletion. Maybe it means you want to be able to save enough to send your kids to good universities, or be able to take your family on annual vacations. It could mean that you want to squirrel away a retirement fund.

Whatever your particular idea of getting ahead, it does imply some sort of motion?movement from where you are now to where you want to be. That means you must figure out exactly where you are now and where you should be going. Once you start to think about it, though, you may find those places are a little more difficult to determine than you had originally thought. You may find yourself beginning to struggle with just what your particular concept of getting ahead is.

Robert Kiyosaki, who authored the popular Rich Dad series of books, has mapped out a way for you to tell where you are and where you should be, if building wealth is your goal. He also gives you a plan on how to get there.

In his book ?Cash Flow Quadrant,? he introduces readers to a concept that the man he called his ?rich dad? introduced to him years ago. This quadrant is an illustration of where your money is coming from and subsequently how you think about money. Believe it or not, the two things go together.

For instant, if you are in the E quadrant, you are an employee in search of security. Someone in the S quadrant is self-employed and likes to be in control, to do things their way. A B quadrant person is a business person. (This is very different from an S-quadrant person because the B has a system that can work without their direct input, thereby freeing them for other, wealth-building, pursuits.) The I quadrant person is an investor.

According to Kiyosaki, that quadrant not only tells you where you are, but where you should be. If you are on the left side, in either the E or S quadrant, you should be making plans that will move you to the right side?first to the B quadrant then into I.

In order to do that, you need to increase your wealth by taking a job that affords you the money to invest or the time to build a business system. The system will take care of your personal needs, afford you the time to learn about investing, and provide you with the cash to purchase real estate equity. And that, my friend, is something that will make your cash grow like kudzu.

That is how you get ahead. It is a process, and you have to be systematic about it. You can’t just jump into investing without knowing what you’re doing. That is foolhardy and dangerous. You also can’t jump in if you haven’t gotten your basic needs covered. First, make sure that is taken care of. Then expand.

Kiyosaki compares the process to playing Monopoly. If you are going to win at Monopoly, you have to buy land. Then you have to put little green houses on that land, which you can later trade for big red hotels. Then you get paid.

About the Author:

Alex Anderson Helps Regular-People (Just Like You) To Successfully Invest In Real Estate. Enroll In Her Free - Educational “Investment Property Program” At: www.GreatInvestmentProperty.com

Real Estate Investing - Control Your Future by Controlling Expenses

I was speaking with a highly respected and successful fellow investor a few days ago and he said something which really grabbed my attention. He said, "The single most important reason for my success is my ability to rigidly control my expenses." I found that hard to believe, so I pressed him on it.

"John," I said, "You’ve done a lot of things right. How can you single out expense control as the most important contributor to your success?"

"Simple," he replied, "Controlling my expenses has allowed me to control my cash, and EVERYTHING else flows from cash."

Our conversation consisted of just a few sentences, but I’ve been thinking about them ever since. You would be very wise to think about them too. In fact, follow along with me while I dissect what John said.

Let’s begin with his summary, "Everything else flows from cash." Two questions arise- first, what exactly did he mean? Second, is it true?

Cash Is King

Here’s what I think he meant. When an investor has ready cash available, he is free to move when opportunity presents itself. He doesn’t need to pause and consider whether or not he is in a position to take a deal down- he already knows. Therefore, he can move lightning fast. Cash equals speed.

Also, when an investor doesn’t have to get all creative with financing techniques, he can concentrate on other, more crucial aspects of the deal. Cash equals focus.

Finally, when he is able to focus his energy and attention on the most crucial elements of the deal, AND he can move with lightning speed, his confidence soars. He KNOWS he can complete the deal, and he won’t let anything stand in his way. So, cash equals power.

If cash equals speed, focus, and power, why then do so many people talk about "no money down" deals? Because they can be done, that’s why, and for someone just starting out, with little or no cash, it’s important to know that. But just because something CAN be done doesn’t make it the best way to do things. No money down is definitely not the best way- not all the time.

What about the second question? Is it true? Does everything flow from cash? Does it really equal speed, focus, and power in real estate investing?

You bet it does! Every experienced investor I know would agree that having large amounts of ready cash makes his or her investing life much easier. It also opens many doors, allowing quicker growth and bigger profits.

I didn’t realize how important cash was until I had some. I remember the feeling I had when my Realtor called me out of the blue one day and said, "Tom, a deal just fell through on a fantastic foreclosure property. The bank wants another buyer by the end of today. How fast can you move?"

I had already looked at this particular property and I recognized a great deal when I saw one. More important, I had enough cash in my account to take the deal down, and I could prove it to the bank. I told my Realtor, "Buy it."

My ability to move lightning fast, and with complete confidence, ultimately put another $28,000 in my pocket!

No cash, no deal. Remember, cash equals speed, focus, and power. Or, put another way, CASH IS KING!

It’s Your Money- Keep It!

We’ve established that everything flows from cash, so John’s summary statement is true. But what about his premise, "Controlling expenses allows us to control cash?" Is that true as well?

This is more difficult to pin down, but let me just share a little of my own experience with you. When I was a beginning investor I had little or no cash, so I did a couple of "no money down" deals and built up a small reserve. Unfortunately, spending discipline has never been my strong suit, so a lot of that cash went right out again. Every expense was justifiable, at least in my own mind. After all, I was building a business wasn’t I? The things I was buying were certainly necessary, weren’t they?

In hindsight, most of them were not. I now realize that if I had eliminated or reduced most of the expenses I thought were essential, my cash reserves, and therefore my portfolio, would have grown much faster. That’s what John learned early on, and what I have finally learned as well.

If you learn it now you will thank yourself a thousand times down the road. Be ruthless when spending your hard won profits. Keep excellent records, and verify each and every expense. Check all of your bills and receipts. Most important, sleep on every decision to spend money, or talk to a trusted adviser . Any technique that slows you down just enough to THINK IT THROUGH will pay you back over and over. The one exception is when you need to move fast on a property, and you have already done your due diligence, or can do it after the offer is accepted.

Most investors put a great amount of effort into finding deals and getting to the closing table. Unfortunately, most don’t put the same effort into safeguarding the profits they take out of those deals. They allow bad spending and expense habits to cripple their growth. This includes overpaying contractors and other service providers, buying unnecessary supplies and equipment, and not carefully checking receipts and invoices. Defeating these bad habits now is like putting money in your investing account. After all, it’s your money- KEEP IT!

So John was right. Controlling expenses allows an investor to control cash, and everything else flows from cash. It looks like it really was the number one reason for his success. Will it be yours?

Now, go make more offers!

Real Estate Investing - Control Your Future by Controlling Expenses

I was speaking with a highly respected and successful fellow investor a few days ago and he said something which really grabbed my attention. He said, "The single most important reason for my success is my ability to rigidly control my expenses." I found that hard to believe, so I pressed him on it.

"John," I said, "You’ve done a lot of things right. How can you single out expense control as the most important contributor to your success?"

"Simple," he replied, "Controlling my expenses has allowed me to control my cash, and EVERYTHING else flows from cash."

Our conversation consisted of just a few sentences, but I’ve been thinking about them ever since. You would be very wise to think about them too. In fact, follow along with me while I dissect what John said.

Let’s begin with his summary, "Everything else flows from cash." Two questions arise- first, what exactly did he mean? Second, is it true?

Cash Is King

Here’s what I think he meant. When an investor has ready cash available, he is free to move when opportunity presents itself. He doesn’t need to pause and consider whether or not he is in a position to take a deal down- he already knows. Therefore, he can move lightning fast. Cash equals speed.

Also, when an investor doesn’t have to get all creative with financing techniques, he can concentrate on other, more crucial aspects of the deal. Cash equals focus.

Finally, when he is able to focus his energy and attention on the most crucial elements of the deal, AND he can move with lightning speed, his confidence soars. He KNOWS he can complete the deal, and he won’t let anything stand in his way. So, cash equals power.

If cash equals speed, focus, and power, why then do so many people talk about "no money down" deals? Because they can be done, that’s why, and for someone just starting out, with little or no cash, it’s important to know that. But just because something CAN be done doesn’t make it the best way to do things. No money down is definitely not the best way- not all the time.

What about the second question? Is it true? Does everything flow from cash? Does it really equal speed, focus, and power in real estate investing?

You bet it does! Every experienced investor I know would agree that having large amounts of ready cash makes his or her investing life much easier. It also opens many doors, allowing quicker growth and bigger profits.

I didn’t realize how important cash was until I had some. I remember the feeling I had when my Realtor called me out of the blue one day and said, "Tom, a deal just fell through on a fantastic foreclosure property. The bank wants another buyer by the end of today. How fast can you move?"

I had already looked at this particular property and I recognized a great deal when I saw one. More important, I had enough cash in my account to take the deal down, and I could prove it to the bank. I told my Realtor, "Buy it."

My ability to move lightning fast, and with complete confidence, ultimately put another $28,000 in my pocket!

No cash, no deal. Remember, cash equals speed, focus, and power. Or, put another way, CASH IS KING!

It’s Your Money- Keep It!

We’ve established that everything flows from cash, so John’s summary statement is true. But what about his premise, "Controlling expenses allows us to control cash?" Is that true as well?

This is more difficult to pin down, but let me just share a little of my own experience with you. When I was a beginning investor I had little or no cash, so I did a couple of "no money down" deals and built up a small reserve. Unfortunately, spending discipline has never been my strong suit, so a lot of that cash went right out again. Every expense was justifiable, at least in my own mind. After all, I was building a business wasn’t I? The things I was buying were certainly necessary, weren’t they?

In hindsight, most of them were not. I now realize that if I had eliminated or reduced most of the expenses I thought were essential, my cash reserves, and therefore my portfolio, would have grown much faster. That’s what John learned early on, and what I have finally learned as well.

If you learn it now you will thank yourself a thousand times down the road. Be ruthless when spending your hard won profits. Keep excellent records, and verify each and every expense. Check all of your bills and receipts. Most important, sleep on every decision to spend money, or talk to a trusted adviser . Any technique that slows you down just enough to THINK IT THROUGH will pay you back over and over. The one exception is when you need to move fast on a property, and you have already done your due diligence, or can do it after the offer is accepted.

Most investors put a great amount of effort into finding deals and getting to the closing table. Unfortunately, most don’t put the same effort into safeguarding the profits they take out of those deals. They allow bad spending and expense habits to cripple their growth. This includes overpaying contractors and other service providers, buying unnecessary supplies and equipment, and not carefully checking receipts and invoices. Defeating these bad habits now is like putting money in your investing account. After all, it’s your money- KEEP IT!

So John was right. Controlling expenses allows an investor to control cash, and everything else flows from cash. It looks like it really was the number one reason for his success. Will it be yours?

Now, go make more offers!

Next Page »