TeAM YYeP G Digitally signed by TeAM YYePG DN: cn=TeAM YYePG, c=US, o=TeAM YYePG, ou=TeAM YYePG, email=yyepg@msn.com Reason: I attest to the accuracy and integrity of this document Date: 2005.04.27 16:01:23 +08'00' [...]... yields because they hold false beliefs about real estate investing No rational person could possibly choose lifelong employment and meager returns on so-called safe investments No one needs to such as annuities, bonds, and CDs if they really beaccept low yields lieved (and understood) the possibilities that presently exist in real estate Two More False Beliefs In his popular book The Four Pillars of Investing. .. advice, their advice keeps investor competition for properties far below the level that would otherwise exist In other words, as long as most potential inThe false beliefs of vestors believe that to earn big returns in real estate others boost your they must take big risks, they will continue to stand opportunities on the sidelines They will leave more opportunities for you Summing Up Self-Talk and False... It to See It Given the large rewards that most savvy real estate investors have achieved over the years, I’ve often wondered why most people fail to invest in real estate After much thought and talks with hundreds of would-be investors, I’ve come to The time to start this conclusion: Most people simply don’t believe in the future and they don’t believe in themselves really is now As a result, most... themselves to several years of payments at high interest rates Increasingly, they are hooked into those “no payments, no interest for six months” types of promotions that make credit purchases almost too easy to pass up Do yourself a favor: resist this temptation to spend and borrow Whenever you buy cars, furniture, or appliances, let someone else suffer the depreciation Pay for the usefulness of the. .. because of deep cracks in their nest eggs These findings quantify a significant shift in thinking that is resulting largely because of the stock market downturn and historically low interest rates on the more conservative investments The need for money was named as the primary motivation by workers who plan to stay on the job When I read the results of surveys such as this, two thoughts come to. .. and the habit of asking them lead you to discover possibilities People (usually underachievers) who merely settle for preprogrammed conclusions won’t ask questions Because they believe they already know the answers, they unwittingly overlook the choices and the possibilities the world is offering them You must always realize that if you don’t like the program you’re living, you’re free to switch the. .. techniques described in this book, you will discover and create opportunities that the majority of property owners (along with those naysayers who shout from the sidelines) consistently miss Nevertheless, these widespread false beliefs can actually work to boost your investment returns Because financial planners and economists (who typically have no meaningful experience with real estate investing) give such... Table 1. 1) Reprogram Your Self-Talk Ask yourself whether you really want to benefit from those future gains Or would you prefer to merely watch others reap these near-certain Table 1. 1 Year 19 70 19 75 19 80 19 85 Historical Growth in Median Home Prices Price $23,000 35,300 62,200 75,500 Year 19 90 19 95 2000 2005 Statistical Abstract of the United States 2003, p 723 Price $ 95,500 11 3 ,10 0 13 8,400 18 2,000 (est.)... with the money You can keep “wishing and a-hopbefore you get the ing” to invest someday Or you can now decide to own property and immediately begin to shape up money to invest your finances and create a plan to invest Want some ideas to start your own austerity plan, raise cash, and strengthen your credit? Try these suggestions Set today s Never Say Budget No one likes to budget It priorities sounds too... mind: 1 Why didn’t more of these now-disappointed workers invest more money in real estate instead of stocks? 2 And more important, why don’t they at least get started now? Starting late most assuredly beats never starting at all To know that most of these folks are now rushing into low-yielding certificates of deposit, annuities, and government bonds once again reinforces my message here They’re choosing . Partners 97 Second Mortgages 99 Personal Savings 10 0 Sell Unnecessary Assets 10 0 Down-Payment Assistance 10 1 Easy Money—Hard Terms 10 1 Use Credit Cards 10 5 Personal Loans 10 6 Sweat Equity. 2/26/04 1: 16 PM Page i The BEGINNER S Guide to REAL ESTATE INVESTING 00FM.qxp 2/26/04 1: 16 PM Page ii 00FM.qxp 2/26/04 1: 16 PM Page iii The BEGINNER S Guide to REAL ESTATE INVESTING GARY. 1: 16 PM Page xi WHY THIS BOOK? Why this book? In writing The Beginner s Guide to Real Estate Invest- ing, my intent has been to cover all topics that first-time real estate in- vestors need to