Rich Dad Education – Real Estate Blog

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We’ve got a shiny new blog!

Come visit our new blog at www.richdadeducationblog.com

Come visit our new blog at http://www.richdadeducationblog.com

 

Hello loyal readers,

Rich Dad Education is happy to announce that we have a brand new blog! We have redesigned our old blog and given it a new home at http://www.richdadeducationblog.com. Now, you can find all of our content on one convenient blog site that’s easy on the eyes.

In order to stay up-to-date with our weekly posts containing the best real estate investing, stock, and motivational convent, be sure to follow us at the new blog. After you take a look, send us a Tweet (@richdadedu) and let us know what you think about the new design!

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Yes, There are Do-Overs: Get Your Start Now!

Rich Dad Education Real Estate
One of the most time-honored traditions amongst childhood games is the right to the do-over. This right is invoked in many circumstances and situations, much like the venerable triple-dog dare. The child’s secret code acknowledges that all must adhere to it. Is there a dispute that cannot be settled? A do-over fixes this problem. Did someone not know the rules? A do-over fixes this problem as well. Did a child simply goof up? Do-overs are honored even if some other kids grunt, sigh, and complain. One can make a fuss, but in the end, one must honor the do-over.

Often, children who ask for the do-over are not only admitting they made a mistake, but also exhibiting confidence that in their next attempt they will learn from that mistake and do better.

As adults, we learn that the child’s code for do-overs does not apply as easily as it did in our youth. When mistakes are made, the solutions to remedy the problem take far more than a simple request for a do-over. While many mistakes cannot be undone, far too many adults think their past mistakes have confined them to their current status forever. What many of these individuals need is a simple do-over.

Time and Do-Overs

When people are unsatisfied with their lives, they have a tendency to look back at the pivotal decisions and wonder how their life might have turned out if they had made different choices. They fixate on that point in time and imagine the alternate life that would have developed had they made a different decision. When one is unhappy with their life, it is easy to fall prey to this mindset.

The problem is, individuals stuck in this mindset are in some way accepting that the game (their life) is over. They feel that because they cannot go back in time and change these events, all is lost. Instead of lamenting the decision not to pursue a certain career 20 years ago, they should be focusing on what they can do today to escape similar regrets 20 years from now. After all, you will never change the past, but your actions today will impact your future.

Asking for a Do-over in Your Career

Most children who ask for a do-over are not afraid and immediately try to learn from the past experience and improve. Why shouldn’t the same attitude apply to you? You can give yourself a do-over and start pursuing anything you would like to in life.

This may sound overly simplistic and naïve, but you have incredible power to shape your own destiny through the choices you make. This is just one small moment in time. Just as the decision you regret helped create the place you find yourself in today, the decisions of today will create what the future holds for you.

Naturally you will have fears and want to make excuses. These are likely the same fears and excuses that led to the regrets you are obsessing about today. Fears and excuses do not make you special, overcoming fear does.

You have learned so many lessons between that point you regret and today. Take that experience and change the equation of your life. Your future self will thank you for making a decision that you likely will never regret!

By Mark Justice

Rich Dad® Education Elite Training Mentor

Part 4: Quick-Start Guide to Investing – Exit Strategies and Mastering Your Craft

Post It Note to Improve Skill

We’ve been outlining the 8 Steps you need to take as a beginner to get your real estate investing business off to the quickest start possible:

  1. Understanding Real Estate Cycles
  2. Identifying the Key Indicators in Your Market
  3. Building Your Power Team
  4. Making Offers
  5. Finding Financing Sources for Your Deals
  6. Implementing Finding Strategies
  7. Understanding Exit Strategies
  8. Constantly Learning and Mastering Your Craft

In this final installment, we’ll be looking at Steps 7 and 8.

Step 7 – Understanding Exit Strategies

To effectively get started in the investing business, you must understand exit strategies and how to use them to get into and out of deals profitably.

Every property that you encounter is a different situation. Each one has a different need, a different financing challenge and one or more appropriate exit strategies. The more exit strategies you know and master, the greater your chances of success as an investor!

For starters, make sure that you have a sound understanding of wholesaling, lease options, seller financing, rental properties, and rehabbing. These exit strategies will provide you with a solid foundation to be able to put together deals that are profitable for you and helpful for sellers. (Rich Dad Education’s Elite Training courses are designed to give you detailed instruction in each of these areas.)

Step 8 – Constantly Learning and Mastering Your Craft

Like most things in life, learning is a journey and not a destination. Truly savvy investors realize that they must remain in constant search of new ideas and information if they want to stay one step ahead of their competition.

Rich Dad Education offers classes, a Mentor Program, and personal coaching that are designed to help you realize your full potential as an investor and entrepreneur. We also encourage you to utilize many of the resources you have, from your local library to the Internet, to stay up-to-date on current market conditions and strategies.

As you continue on your path to financial freedom, get help as you need it.

By Mark Justice

Rich Dad® Education Elite Training Mentor

Top 5 Reasons People Don’t Take Action

Rich Dad Education Real Estate

“Good ideas are common – what’s uncommon are people who’ll work hard enough to bring them about.”Ashleigh Brilliant

Ideas, by their nature, are powerful and magnificent. Ideas have transformed companies, industries, countries and even the course of history. Every modern comfort we enjoy today had its origin in the form of a simple idea. If ideas had a Facebook page, everyone would give it a “like” for the comfort, health, entertainment and happiness they have provided.

With the powerful impact they have on the world, you would think good ideas would be a rare thing. The truth is there is almost an endless supply of great ideas.  However, most good ideas die an early death inside the mind of their creator because of one word: ACTION.

Lack of action is the single greatest cause of an idea fizzling out.

Reasons for Lack of Action

Here are five of the most common reasons why action is not taken:

  1. Fear: Fear can manifest itself in many forms. Often, it represents a fear of failure. For many, not trying is better than trying and failing. Sometimes, it’s a fear of loss. This occurs when a person realizes what they might have to risk in order to implement their idea. For example, one might have to quit a job in order to execute their idea with no guarantee of success.
  2. Laziness: Laziness is a strong word, so let’s soften that by describing it as “an unwillingness to put in the work necessary to develop and implement an idea.” It is likely that numerous people had the same or a similar idea before someone came along that was willing to actually put in the work to bring that idea to life.
  3. “I’m an Idea Guy”: While some people are undoubtedly more prone to develop well thought-out ideas, it is likely that most who use this line are overestimating the uniqueness of their idea-generating skills and underestimating the importance of the action required after an idea is conceived. After all, ideas without action have the same impact as no ideas at all.
  4. Lack of Faith: Some people have a lack of faith in the idea itself. Perhaps they dismiss their own idea with “Oh, that would never work;” or perhaps they share the idea with someone else who calls it terrible or who simply doesn’t see the vision behind the idea. Others lack faith in their ability to execute the idea properly. Maybe the idea is unrelated to their current skill set, and they simply cannot envision how they could pull it off. Perhaps they simply do not have faith that they are capable of having an awesome idea.
  5. Hoarding an Idea: Many ideas are generated by individuals who do not have the financial means to implement them. What comes into play at this point is some individuals think their idea is so good they do not want to share it with anyone. Perhaps the idea really is that good; but if no other means are available, it is better to share your idea than to let it die. If you believe in the idea, you should be willing to develop your presentation skills and start contacting potential investors.

At the end of your days, you don’t want to look back and wonder what might have been if you had taken real action on your idea. Remember, good ideas are actually pretty common. What is uncommon is keeping your ideas alive by putting in the work and sacrifice necessary to see those ideas come to fruition.

By Mark Justice, Rich Dad Mentor

Quick-Start Guide to Investing – Part 3: Finding Financing and Strategies

Toy house placed on money

Getting a real estate business started can be overwhelming for a brand-new investor. Rather than getting caught up in all the details that cause people to be overwhelmed, we are breaking it down into 8 basic steps:

  1. Understanding Real Estate Cycles
  2. Identifying the Key Indicators in Your Market
  3. Building Your Power Team
  4. Making Offers
  5. Finding Financing Sources for Your Deals
  6. Implementing Finding Strategies
  7. Understanding Exit Strategies
  8. Constantly Learning and Mastering Your Craft

Today, we’ll be covering Steps 5 and 6.

Step 5 – Finding Financing Sources for Your Deals

 This is the step many new investors fear. The truth is if you have done your homework and secured a good deal, financing is usually the easier part of this business. People with money will always come forward if the deal is right.

Don’t get caught in the trap of focusing only on one approach. Once you have an offer accepted on a property (or even before it is accepted), take a four-step approach to getting the money for the deal:

  1. Traditional Loans
  2. Hard Money Loans
  3. Wholesaling
  4. Finding a Partner

If you pursue all four methods on every one of your first deals, the money should be there.

Remember, you can’t have too many sources for financing. Start now and find these sources as outlined in our training courses.

Step 6 – Implementing Finding Strategies

To sustain a growing real estate investment business, you must have a constant stream of potential properties.

A real estate agent can be one way of finding properties. However, it’s not the only way. Some popular finding strategies include:

  • Marketing and Advertising
  • Foreclosure Properties
  • Probate Properties
  • Getting Deals from Wholesalers

Many investors have a marketing budget and use that money to advertise. Done properly, this gets sellers calling them about buying their property. The more phone calls you get, the easier your life will be as an investor. Usually, the most motivated sellers will call you because they need a fast solution to their housing problems.

Foreclosures can be a constant source of finding deals. Keep in mind, foreclosures are more of a finding strategy than an investment technique. Why? Because foreclosure properties can be rentals, lease options, wholesale deals, etc.

Probate properties can also be a great way of finding investments. In many cases, the home must be sold to help pay the estate’s creditors. As a result, you can find some very motivated sellers that have probate properties.

To create that constant source of potential deals, determine what is going to work best for your situation, needs and goals as an investor.

Only two more steps to go! Next time, we’ll finish up with Step 7 and 8.

By Mark Justice

Rich Dad® Education Elite Training Mentor

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