Although, if the government doesn't do anything stupid and starts acting rationally (I know, I know) it could help the country out.

Does this sound rational?

i did not fully understand how money can be made if you start to actually think rationally about it.i still struggle with one thing - personally - i like to eat out.

2) I found a nifty tool that calculates the ROI, Capitalization ration, and cash flow.

The reality checker is that much of what he states is very true and rational.

I thought that we would get in contact with the home owner early on in their foreclosure (with several months before the auction), and that people were rational.

Instead of making rational decisions, they wait things out hoping life will improve.

Obviously they're selling their property at a significant discount so their rational strategic mental processing might not be the strongest at that point in their life, but I wouldn't say they're stupid, they are just motivated.

What I would end up doing (like most newbies) is rationalizing a higher price and paying too much for a property.Now after I did a couple rehabs myself (I made $1,500 on my first REHAB and I LOST a ton on my second), I had to face the fact that the reason I needed to offer such a low amount was to even have the hope of making money on the deal.

I think new investors get discouraged because 70% equity in a deal requires some diligent effort to find, so they get discouraged and start rationalizing the numbers higher.