All Forum Posts by: Michael Shuster

So many people are scared of what is going on in our economy because of what they are told by others. Yet, they really don’t understand what is making our economy tick. I recently received an ‘economic update’ from my financial advisor and it raised some very interesting information (Source: CIBC World Markets). I completely understand that some people are knowledge junkies, and others only care about the end result. I also understand that people have different learning styles, and grasp information to different extents and levels of clarity. I’ve taken much of the information that I just received from my advisor and tried to clarify/simplify why the fears and panic of many people today are unfounded. Furthermore, there is much hope coming our way very soon.

Many people compare our current economic condition to the Great Depression. However the early 1930’s was very different (in many ways). Almost 10,000 U.S. banks went bankrupt and the unemployment rate surpassed 25%. The supply of money decreased by 30% and so the entire economy actually decreased in it’s total size.

Our current situation is different in many ways. The unemployment rate is only 6.5%, the entire economy only declined by less than 0.5% in 2008, the supply of money is still increasing, and there are many new insurance programs to protect depositors’ funds.

Now, there have also been comparisons between our current economic situation to those of Japan. Japan is now fighting their 5th recession in 15 years. Many have said that our economic situation is not unlike Japan at the moment. The current economic crisis is similar in some ways to what Japan experienced in the early 1990’s, however the (government) policy response is very different.

After the 1989 Japanese equity market crash, the Bank of Japan continued to raise rates. It actually took over 5 years for the government there to cut rates to 1%. The U.S. Federal Reserve board cut rates immediately (here) when it realized that the markets were in trouble.

It took Japan over 6 years to launch their economic bailout, while ours is already being implemented, along with many other policy tools that were not available to the bank of Japan.

Conclusion 1: Nobody can deny that we are amid a difficult economic slowdown, but it certainly is not another great depression. Thanks to the many policies and initiatives launched by our government, we are not heading for the same troubles seen in Japan. The global economic recession is already 12 months old. It appears to the experts that we will remain in tough times for the first 6 months of 2009. However, current and future stimulus activity will provide for an economic recovery, which is likely to show signs of turnaround in the second half of 2009, with solid economic performance in 2010.

Conclusion 2: Many people live in fear because of what they hear in the media, while others chase ‘get-rich-quick’ schemes, or do what everybody else appears to be doing (eg. stop spending and hold on to every penny they have). In the great gold rush, the majority rushed out with shovels to dig for their own gold, hoping (either out of panic for recovery and/or sheer greed) to strike it rich with their own found gold. The people who made fortunes during that time (without having specialized knowledge, skills, or panic) were not the people who were lucky enough to dig in the right place and strike gold (which by the way were few and far between). They were the people selling the millions of shovels.

Summary: Last year many investors asked me about investing in real estate in regions like south Florida. When I told them they could acquire properties at $0.40 cents on the dollar, they hesitated. They were always worried that if they waited longer, they could still get a better deal, and knowing that they could have got a better deal would bother them.

Now, with all indications that the market is close to the bottom (in many areas), people still seem afraid to invest their money until the majority of other people (and the media) say that the troubles are all over and it’s okay to part with your money. Fact is, by the time that happens, the prices are already going up. That (the price increases) is obviously one of the justifications that the media would have for releasing such a statement.

Where are the people now who fear that if they wait to long to start investing, they might pay more for a property, than if they bought sooner, while the prices were at an all-time low? That time is now folks! There is a very popular saying that all of the professional real estate investors say: “You make money in real estate when you BUY … not when you SELLâ€. When you buy, you negotiate the best price, and that determines how much room you have for capital appreciation.

Buying investment properties now is like stocking up on your shovels. When the country starts buying real estate and renting places to live, you want to have the inventory and meet their demand. Don’t forget – demand is what drives up prices (profits)!

Ha!

I wish I could type that fast
I have been writing lots of articles and posts for my own blogs over the past 2 months.
When I just discovered Biggerpockets I thought i would post some topics here in case fellow investors find the information helpful.

My colleague Gerald Romine sent me an email that reminded me of some very important points to consider.

There is a saying that goes, I will eat steak tomorrow night as I choose regardless of what you do or don’t do; regardless of whether you eat steak or beans.

The same is true for the economy, the financial crisis, and the recession. Some people will be eating steak and others will be eating beans.

Like it or not, money is in constant motion; it just flows in different directions from time to time.
Wayne Gretzky had a motto: Go to where the puck is going to be, not where it just was!
It’s up to you to move where the money is flowing now - not where it used to flow!

Sure, the economic times have changed? It is near impossible to get loans,yet I still meet people getting them today. The flow of money used to be from conventional lending but if you’re old system required loans and that isn’t working for you today, then it is time to change your system. It is up to you to move to where the money is flowing.

FACT: People are still flipping houses and some are doing very well. Need proof… check out an auction or two or a few forum website and you’ll see people paying even more than you would for properties …. which means they are a source of potential buyers. This is your opportunity.

There is a lot of doom and gloom out there and majorities of people are suffering financially. But they only represent 1/3 of the pie. The second third of the pie are people who are not suffering but are not spending because they are living in fear so they are in a holding pattern.

That leaves the final third of the pie - the people with money (the rich)!
That is why the rich get richer. Because they buy low and sell high. And they do that by buying in times like we are currently experiencing. Somebody has to sell those properties to the rich - it might as well be you!

You need to capitalize on the opportunity delivered by the so called financial crisis.

[SOLICITATION REMOVED]

Over 90% of the population are are trapped in the rat race.

One of the reasons the rich get richer, the poor get poorer, and the middle class struggle in debt is because the subject of money is taught at home, not at school.

In my last post I talked about following the herd and the dangers related. The primary reason people seek job security is because that is what they are taught to seek at home, and at school…then, with accumulated debt loads, they clinched tighter to their job or professional security just to pay the bills.

The rich don’t work for money. The poor and middle class work for money. One of the most popular topics in our 2 Day Real Estate Investor’s Boot Camp is how the rich have money work for them!

As Robert Kiyosaki explains … the rich buys assets. The poor have expenses. The middle class buy liabilities they think are assets!

“…A job is really a short-term solution to a long-term problem…â€

A Formula For Beginning Real Estate Investing

Passion + Planning = Momentum : A Formula For Successfully Beginning Investing

You don’t have to see the whole staircase, just take the first step – Martin Luther King

If you are a beginning investor, the world of investing can seem daunting. So many opportunities present themselves that it’s very difficult to know what to do. You have many questions and concerns. Which type of investment is right for me? How much do I need or should I spend? How can I minimize my risk? What will be my return on investment (ROI)? And so on.

You may be at a standstill with investing. You’ve looked around for a while. You’ve read some books, watched some programs, maybe even attended some seminars. You have a fairly good idea of what’s available and what you want to do. But you haven’t acted yet on anything.

What you need next is momentum. What do I mean by that?

Let’s define momentum. Momentum is defined as a “strength or force gained by motion or through the development of eventsâ€. Momentum is when things are moving along to the degree that there is no more stopping. Things just keep on going. You have momentum when you find yourself consistently spending time and effort on something. Procrastination is over. You are motivated and fully engaged in it. No one has to coax you into spending time on it. You want to do it. You even think about it when you aren’t doing it!

It’s estimated that only 10%-20% of people who study real estate investing (whether it be taking real estate or self help courses, reading books or listening to CDs) ever actually invest! In other words, 80%-90% of these people will gain lots of knowledge about real estate investing, yet they never invest! The reason is definitely not because these people are not smart enough. The reason is because these people never achieved momentum with their investing plans.

Let’s look at some examples. Consider a new job. If you’ve worked only a few weeks or a few months at a job, you may not know if it’s right for you. You’ll have doubts and uncertainties about yourself, your boss, your co-worker and your future in general. You’ll probably lack motivation. You may be looking around at other job opportunities. But if you stay at that job for long enough, your attitude will change. You’ll learn how things work there. You’ll know where you’re going with the job and the company. You’ll have worked on various projects and where you can go in the company. You may have even brought in new clients. You will eventually establish your own unique presence and role in that company. You’ll have become part of a business ecosystem in which you play a significant role. Your decisions and actions will have a definite impact on others in the company, and you’ll take pride in that and naturally want to continue growing there. Your job has become important to you because of your own accomplishments in it, so you’re motivated to continue with it. That’s when you’ve achieved momentum.

Here’s another example. Think of a snowball rolling down a steep mountain. At first, it’s tiny and doesn’t have much speed. It might get stuck in the snow and stop. The wind might dash it to pieces. But if it keeps rolling, as the snowball accumulates size and speed, it is carried along by its own weight. It becomes bigger and bigger and moves faster and faster until it’s actually bouncing down the hill instead of rolling. That’s momentum.

There are two critical things you need for gaining momentum in your real estate investing career or in any walk of life: 1) A plan and 2) a plan that is infused with your personal interests and passion. If either of these elements are missing, you are not likely to be successful in a given endeavor. You may come up with a plan, but it might never be put into action. At the very least, that plan will be much less successful than if you had these two critical elements.

So how do you get momentum with real estate investing?

You need to find an area in real estate investing that excites you. The best way to achieve momentum with real estate investing (or anything in life) is through passion. That is, you do what you love to do. Not what you kind of like, or what seems appealing or fun. I mean what you love, what you’re passionate about. What will make you leap out of bed in the morning to do, not what will make you maybe hit the snooze bar. But let’s be clear about what that thing is. What that thing is is not what the newspapers tell you should invest in. It isn’t what your wife or husband or friends think you should be investing in. It’s not what your financial advisor tells you. It’s not what your co-workers tell you. It’s what you and only you want to do. No compromise. Why do I say this? Because you’re naturally motivated to do something and to keep doing something if you love doing it! When you love doing something, momentum automatically happens.

As you build your knowledge about real estate investing, you really need to think about what you would LOVE to do the most in this area. Be completely honest. There may be a few areas that appeal to you, but you should pick just one that appeals to you the most. You will be more successful in one area that you truly love and in two or three areas that you like but do not love.

Now you may find that after a lot of looking around and soul searching that you can’t find anything that you truly love in real estate. If you’ve looked all through real estate investing and can’t find anything that you truly feel a connection with, a love and passion for, you shouldn’t invest in real estate at all! You should find another area to invest in that you truly feel passionate about. You’ll be far more successful doing that than anything else in real estate investing.

My colleague Nick Ikonomou and I share some common beliefs about the traits which are found in virtually every successful person - especially in real estate investing. Nick shared them with his friends, and I am now doing the same.

1. They are willing to learn. The greatest learners become the best teachers. Never ending improvement, as the Kaizen principle insists, should be an individual’s primary goal in life. The only failure in life is the failure to participate. There are no right or wrong ways of doing things, each providing a result that can be assessed and worked on from the learning that the outcome provides. This perfectly fits in with the following success factor.

2. They take action. I have never seen anyone being successful by doing nothing. By default, doing something has to be a move forward. Doing a lot means that the law of averages will ensure that success falls your way. 95% of the population “can’t be botheredâ€. To jump into the 5% of the population who are successful isn’t hard. It’s just a genuine decision to do something and persevere. Successful people work on improving their time management by learning how time works and what it means to you.

3. They mix with the right people. You can mix with the right people and you can mix with wrong people. The choice is yours. You either fall into those groups or you seek them. Because successful people don’t gloat because of the Australian tall poppy syndrome, you need to do your homework and ask people about their success. They are more than willing to tell you because if they initiated the conversation, that might have been construed as gloating. Look for a business coach and/or a mentor. Surround yourself with the best accountants and lawyers.

4. They are great networkers. Successful people go out of their way and meet as many people as they can because they know that the more people they know, the more opportunities come their way. Staying in your business or at home most of the time produces little results.

5. They have a dream. These people are the greatest dreamers. They have strong beliefs that one day they will achieve what seems impossible to most. The law of attraction means that you shall receive what you crave for if the craving feeds itself with all the other attributes of success.

6. They don’t allow dream takers interfere with their dreams. The most dangerous people in your life can also be the people you hold most dear to yourself. These can be some family members, friends, neighbours and business colleagues. Respect the opinions of those who are successful in their own right. Otherwise, you will receive pretty much the same as what those dream takers are experiencing. Most of all, respect your own intuition. Most of the time it’s the right decision for you anyway. Remember, why engage in other people’s situations when yours is different. You have different expectations, experiences, financial and personal needs. Why live it through other people’s lives? It’s one thing to have a dream, but to stick to it is the most important part of achieving the dream. It is said that the journey is far more exciting than the final achievement, so, choose to have an exciting life.

7. They have integrity. Have you seen people having a go and temporarily have a hiccup? Well, you can lose everything and rebound twice as fast if you maintain your integrity. Once you lose your integrity, it’s over. Practice the integrity that you wish other people to treat you with. Set an example rather than stoop to the behavior and reactions that you are not impressed with.

8. They are great communicators. The best tool to master is to have great communication skills. Honest, straight forward communication totally outweighs fancy use of the language which also can have another name for it. Study personality profiles and the way people process information and the results of improved communication will reap you many rewards over and over with a win/win outcome in most cases.

9. They are willing to share their knowledge. The best way to remember the best parts of your success are to verbalise them or write them down. Share it with those who ask.

10. They have a balanced life. Working too hard in any one area creates imbalance. Work out what you like the most and bring them into your life as you go. There are many tools available to assess the “perfect youâ€.

I am more than happy to help you on many of these points.

I find it rather puzzling that our society has allowed the media to force us to abort one of our natural gifts in life – our ability to use common sense. While I continue to invest in real estate (I doubt if I will ever see a better time to buy in my lifetime), I am constantly meeting people who say they want to invest in real estate, but they are not sure if the time is right.

Is it greed controlling their actions – suggesting they might find an even better deal tomorrow if they wait?

Is it fear controlling their actions – because they constantly hear about the doom and gloom from the media?

The common question I keep getting from potential investors is “do you think the market has bottomed out yet?†These people all know that nobody has a crystal ball. But there are a lot of ways that we can benefit from good old fashioned common sense.

The first thing I notice is that the wealthy people are buying anything and everything they can get their hands on. If they are wealthy then it is very likely they got that way for a reason (excluding people who inherit wealth). We’ve all heard that that the rich get richer, and we are all jealous when times are good and we see wealthy people like Warren Buffet and Donald Trump say that they bought low and sold high. It sounds easy enough. Guess what – NOW IS LOW !!!!!

As I listen to my local news (non-business specific networks) and I talk to common folks, I continually hear them warning us to save every penny, don’t spend too much on Christmas presents, because this whole ‘recession’ is only going to get worse before it gets better. They are selling fear and we as the public are buying. So, we stop spending which only makes things worse and proves them right.

Common sense also tells me that if you want to learn how to do something well, you should seek advice and knowledge from someone who has succeeded in that industry. Anybody can give free advice, but that is usually about all it’s worth.

Yesterday I was listening to Tom Keen on Bloomberg radio (a financial focused network). From that program I heard some very interesting comments that I know you will find interesting as well.

The first quote I had to write down from that program was as follows: “When the economy recovers … it will be too late!†Think about that for a minute. If you are one of those people who is afraid to take action until you see the rest of the “herd†doing the same thing … it will be too late. The deals will already be on the way out, the markets will already be on the way up, and the profits for you are already diminishing. By that time the rich will be laughing all the way to the bank.

Real estate continues to evolve in trends, and trends don’t form overnight. You are not going to wake up one morning in coming months, and see every news program and front page of your newspaper saying: “Finally, yesterday we had no hope but last night everything was fixed and today everything is all better againâ€. Even if the market goes a little bit lower, it can’t go much lower, and then there is only one way for it to go – when do you want to get in on it?

In fact, another interesting thing I heard on that Bloomberg program was a panel of experts in agreement that the market keeps trying to bottom out. They gave it until the end of this quarter and then predict that the market will stop trying so hard to hit the bottom.

Finally, one of the panelists said “pessimism has peakedâ€. Admit it – haven’t YOU had enough of this doom and gloom already? People are exhausted from it already. And when they are tired of buying into the doom and gloom that the media are selling, the will ultimately start spending again. And spending is what will turn this whole economy around.

The way I see it, common sense is becoming clearer and clearer, and the next wave of millionaires are being launched today. In real estate investing you don’t make money when you sell …. You make money when you buy! That is where you determine your fate in each deal. So the only reason you might continue to sit in the sidelines, is if you don’t have a lot of cash in the bank to buy real estate. And most people only believe that you can buy real estate by putting down a pile of cash up-front.

Fact – I personally know a lot of millionaire real estate investors who can put down very large piles of cash – but they don’t. They know the various tricks of buying real estate without using piles of your own money.

If you are not clear on how they do this, then don’t worry. That is exactly how we help investors. Whether it is our training or joint-venture partnerships, or whether you turn to us to help you find and analyze a great deal in a market that is already starting to appreciate (yes we have found those), we have the necessary members of our “power team†to help you get started, regardless of your age, income, bank account, or where you live.

If you have questions about how you can get in before it’s too late, just let us know.

Send us an email: [REMOVED] and we will answer all of your questions.

To your success ….

I recently received some advice via email from my friend Doug at MyHouseDeals.com.

The advice was so valuable, and because I not only endorse his comments, but have enjoyed much success due to some of the ideas he recommends in his email, that I thought I would share it with you.

Bottom line - it’s time to make a plan for 2009.

Tip #1: Create a Game Plan – Know what you want, and outline the steps that you must take to get there. Who will be involved? How will you meet them and gain their cooperation? How much time will it take? Where will you get this time? How much will it cost, and where will you get this money? What’s the risk? How will you handle it?


Tip #2: Have an Expert Review Your Plan – The first real estate plan that I created involved me single-handedly buying 100 houses in a year. And it listed out several different marketing strategies that were completely cost ineffective. I had a friend of mine who isn’t even in real estate review the plan, and he said it looked good. How stupid of me. About 8 months into working this over-reaching and misguided plan, I had an expert investor review it. He tore it apart, and together we re-constructed a better plan with more realistic goals (buy 12 houses, not 100) and a better marketing plan. Shortly thereafter, I bought 6 houses, and I actually felt good about my progress. Six out of twelve feels much better than six out of 100!

Tip #3: Don’t Give Up – The life of a new real estate investor is filled with countless highs and lows. You’re on a high when you think you have a property all locked up to purchase, and then you hit a low when it suddenly falls though at closing. Or you’re on a high when you finally do close on that house, but you hit a low when you hit a 3-week dry spell where it feels like you couldn’t get a seller to agree to your price even if you paid double. I hit a personal low when I was $5,500 in debt from fruitless marketing attempts. Oh, and jobless. But I got up early each morning and worked toward my goal of financial freedom. Even though a voice in my head told me to give up, I never did. That’s probably the #1 key to success. Don’t give up. I swear, you can be as dumb as a box of rocks, but if you don’t give up, you’ll eventually succeed.

Tip #4: Take Baby Steps – When you break it all down, big goals, big dreams, and big plans comprise nothing more than a series of miniature action steps or “to do†items. When you dissect the daily life of a successful investor, you’ll find that he or she does 8 to 12 things each day that are real estate related. One item might be “Watch DVD #5 in the new investing course I bought.†Another item might be “Call title company about the name on the warranty deedâ€. Or “meet inspector at house on Watson Streetâ€. All of these little tasks each day add up to what is or what eventually will be a large and highly profitable real estate investing operation. So don’t toss that “to do†list by the wayside, thinking that your little efforts today don’t mean much. They mean everything.

Tip #5: Become Comfortable with Discomfort – I was actually nervous at the first real estate investing meeting that I attended. I was wondering if I would say something stupid or if I wouldn’t fit in. After all, most of the investors in the room were 40 or 50 years old, and I was 22. But by the third meeting I attended, I became comfortable with the crowd. Had I quit after the first meeting, I would have missed out on the very information that enabled me to buy so many properties. I’ve learned that one of the biggest keys to success is persisting though uncomfortable situations until they eventually become comfortable. This is where true growth occurs.

Tip #6: Do What You Say You’re Going to Do – As a real estate investor, your reputation means everything. They say it’s a small world, but the world of real estate investing is even smaller. So be honest, be courteous, and for heaven’s sake, do what you say you’re going to do. If you say you’re going to buy another investor’s house, by golly, you better move mountains … if that’s what it takes … to buy it! Otherwise, your name will eventually become mud, and you’ll have a tough time buying from not only that investor, but just about every other investor in town. Believe me, I can count at least 10 local investors of the top of my head who I will NOT do business with because their word means nothing. And I know several other investors who won’t deal with them either. You DO NOT want to be black listed.


Tip #7: Be on Time – Showing up late is just about one of the most disrespectful things you can do to another real estate investor, or anyone for that matter. It shows them that you don’t value them or their time. And whether you realize it or not, our time is MUCH more valuable than money. Money can be replaced. Time cannot. When someone shows up late for a meeting with me, I instantly throw their credibility in the toilet. And there are countless other investors who feel the same way I do. On the other hand, when an investor shows up on time or early, it makes me want to smile, reach out my hand, and strike a win-win deal. So be on time, and you’re much more likely to create trusted allies who can help you along your path to success.

I do hope some of these help you!

[REMOVED]

Happy New Year!

As the doom and gloom grows, people who already own income properties suddenly start to panic and fear the worst. Hopefully if you got into real estate investing, it wasn’t on a dare or because you were following a fad. Specifically, you became fully educated on the topic and understand that there are MANY ways to make money in real estate. I am not simply referring to the many ways that you can invest in real estate, but even if your sole focus is income properties, then there are many ways to benefit from your investment.

Some people think the only way to make money is from the appreciation of your property.

Flipping became very popular just a few years ago. However, the key to building wealth in real estate is through buying and holding. It is not a get rich quick scheme, and the wealthiest investors I know have a motto – they will never sell a property. They continually leverage the equity in each property (as that equity increases) to finance the next property. When they retire they live off of the income from their portfolio of properties. Ultimately, their intent is to leave the entire portfolio to their family when they die. But they will never sell an income property. There are just too many benefits of owning them (properties).

When you rent your property, the tenant indirectly creates wealth for you by paying your mortgage, insurance, taxes and monthly fees through their rental payment to you. In addition, you have an asset that is (or can be) leveraged by a fraction of it’s value. If you buy mutual funds or stocks, and you invest $10,000 today, in return you will receive $10,000 worth of shares. However, if you purchase a property with a mortgage, and only want to use that same $10,000, based on 10% down, you can buy a $100,000.00 property. As your tenant is paying down your mortgage, that tenant is effectively paying for the other $90,000 for you over time (back to the bank). Plus … if a stock increases by 5%, you gain 5% of the $10,000.00. But if your property appreciates by 5%, you gain 5% of the $100,000.00.

The authors of Investing In Real Estate, Andrew McLean and Gary Eldred (2006, John Wiley & Sons Inc.), have offered many ways to grow your wealth in investment real estate. Nobody can predict short-term price increases -- but that's why the savvy investor doesn't look to just appreciation to make money. Here's how you can build wealth through your real estate investing:

1. Positive cash flow. This is simply what it sounds like -- the rent covers the mortgage, taxes, insurance, fees, etc., and once all that's paid, you have money left over at the end of the month. A wise investor will also have enough money in reserves to cover all these expenses for a few months in case the property goes vacant.

2. Equity growth via amortization. As the mortgage shrinks from the mortgage payments, your equity grows (and so does your net worth). This is one of the most powerful means of wealth growth -- using OPM (other people's money) to build your net worth. The tenant is providing the investor with hundreds or thousands of dollars per month to pay off debt, which turns into equity for the landlord.

3. Capital improvement. This is the fixer-upper that most people think about when investing in real estate. Purchase a property for $50,000, put in another $25,000, and voila, the house is now worth $125,000 ($50,000 more than the initial investment).

4. Wholesale purchases. The most effective way to build net worth and equity is to buy a house for a bargain price. These properties would be the pre-foreclosure, foreclosure, tax sales, etc., where the investor buys the property well below market price. In essence, you make your money when you buy the house at such a low rate.

5. Lowering tax bills. One of the greatest benefits about real estate investing is all the tax breaks allowed for these type investments. Uncle Sam allows many tax deductions, tax credits and other government-sponsored programs connected with real estate investing that cut the investor's tax bill, thus, increasing the bottom line and equity growth.

6. Smart asset management. Many novice or ignorant real estate investors lose money simply by not managing the asset wisely. For instance, painting properties before the wood is actually peeking through will keep the asset in good shape, seal the wood, and protect it from more expensive damage. Managing the asset is just as important as buying smart and cash flow. The real estate investment is a commodity, not a money machine, and must be managed and protected to maintain future wealth growing potential. A

7. Asset value growth. As your property increases in value, so does your wealth. This is the old fashioned principle of buy and wait. Buy at today's prices and with time, your asset will grow in value because of local appreciation. In addition, your equity will grow along with the amortization principle mentioned above.

8. Rent appreciation. As the cost of living increases, so, too, should your rent cash flow. Increasing your rental income per month by 5 percent could result in hundreds of dollars of cash flow per year -- year after year.

As I have personally attended and taught several real estate investing courses, I have always been intrigued about why some students succeed tremendously, while others fail miserably - all given the same information and education.

There are MANY differences between each person, but when we develop patterns (find common denominators that are present in one group, and not present in the other group), we can determine certain practices, beliefs, and methods that are sure to lead you down the same path (success or failure) as the others in the study group.

There is one blatantly obvious characteristic that is present in every success story, and non-existent in every failure story. You've probably heard it before, but it here it is. You MUST take ACTION!

It is amazing how many people think action is 'over' analyzing data out of fear. Of course fear exists, but those who don't want to take action use "not enough time to analyze" as an excuse. There are tons of fellow investors out there who are not afraid to take action.

When you buy a home to live in, that is an emotional decision. As an investor, every decision must be based on the numbers and the facts (with no emotion). Bottom line - either the numbers work or they don't. Numbers don't lie. But those who are afraid to take action typically continue to analyze the numbers as if they are trying to find a problem with the deal.

Guess what folks! If the numbers do in fact work, and numbers don't lie, then if you don't grab the deal ... another investor will.

You can take as many courses and read as many books as you would like. Information alone will not make you a penny. Acting on your information is where the money is at. Of course that sound easy to say but not easy to do (if you are a beginner), but there are always other 'mentors' out there who would be happy to help you analyze a deal to see if the numbers work.

One word of advice that I pass down to many of my students is to ACT on the information. Here is how I like to consider the word ACT as an acronym:

Action

Compensates

Tremendously

To your success ......