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    Differentiates-Cash-Flow--From-Gambling-On-The-Sto240 Differentiates-Cash-Flow--From-Gambling-On-The-Sto240 Document Transcript

    • Differentiates cash flow from gambling on the stock market.Being an investor in real estate enables you control over your real estate market selection,your real estate asset,your wealth creation,and your exit strategy.cercacasa.it
    • is a wonderfully lucrative, empowering and life changing venture But it needsto be approached with the right mindset if you want to realize success Wehave worked with hundreds of investors over the past few years Many of themhave not received the results they wanted – either on their own or with otherReal Estate Programs When we sit down and review their InvestmentHistory,we frequently see that their overall approach to Real Estate Investingneeds to be adjusted All too often,we determine these individuals view RealEstate Investing as a gamble or a game of chance In reality,Real EstateInvesting can be as stable and predictable as opening up a world classfranchise The key is to focus on the right things Outlined below are a fewquestions you should ask yourself to help determine if youÂ’re looking at RealEstate as a gambling venture or an investment business
    • Do you focus on appreciation over cash flow? Real estate has four distinctbenefits illustrated by the CATP acronym: Cash Flow Appreciation TaxBenefits and Principal Paydown (If you like,go back to another Wealth Tacticfor a more in depth explanation of CATP ) The most secure returns come fromCash Flow and Tax Benefits Principal Paydown is less secure,but offers somestability to an Investor Appreciation is least secure and the most risky (i evolatile) component You can make some great money with Appreciation, but ifyou time the market incorrectly it can ruin you Looking to make money in RealEstate Investing through Appreciation alone can be risky
    • Too much risk equals gambling! Do you talk and think like a gambler?Gamblers use phrases and terms like “bet”, “house money,” and“chance ”  Have you ever thought, “IÂ’ll bet a little on the really cheaphouse and see what happens?”  Or used leverage in a way where youÂ’rethinking about “house money” when you refinance and cash out?  If so,then you may be taking the wrong mindset – the gamblers mindset – intoreal estate investing Do you focus on probability vs research? The best placeto find a gambler is in a Casino And you have probably noticed that Casinoowners live a lot better than gamblers! Why? Most cercacasa.it casino gamesare in fixed rule environments – there are set inputs and outputs And therules themselves are skewed to the Casino Because there are only so manyresults that occur from blackjack or craps for example, you can only win bydevising a strategy based on probability and betting theory Without thestrategy,itÂ’s just expensive entertainment
    • Even with the strategy,you will be lucky to break even There are parts of thatare even riskier than a night in Vegas After all,you can lose more than you betIf you have to foreclose on a house or pay back taxes,or several otherunforeseen events, youÂ’ll be out more than you invest This is because RealEstate is not a fixed input/output system There are a tremendous number ofdifferent things that can occur in a Real Estate Investment But unlike thosecasinos, you can use the “rules” to actually help you win more than you lose Remember,you have a very strong level of control over the performance ofyour investment,especially if you focus on the Cash Flow benefits of a property
    • While you canÂ’t change the market and you canÂ’t change (or very rarely) theavailable team,you can change the rehab level,tenant selectioncriteria,rents,marketing,tenant management, etc, etc This control creates alevel of safety and wealth if applied correctly If you research the right metroareas with the right fundamentals and if you research and find the best teams(acquisition,rehab,management,legal), you will have significantly decreasedyour risk Research trumps probability mainly because a good property in a badarea is still doomed,but a bad property in a good area can do pretty well Aninvestor who remembers and applies this concept will take gambling and all ofits risks out of the picture While gamblers will look to score on an investmentwith little or no research about the market or CATP, an investor will focus oncash flow, and sound market research – only working in the best markets toget the best results Real estate is historically and will continue to be thegreatest wealth builder available as long as you approach it with the rightmindset – as an investor Once you stop thinking like a gambler and startthinking like an investor you will be making better decisions and getting betterresults! Article Tags: , ,
    • cercacasa.it