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Real Estate Information |
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How You Will NOT Make Money in Real Estate
We all have seen some book called "How I Turned my last dollar into $1 Million by buying real estate in my spare time". Some of us even bought such books on an impulse with high expectations. They all start about the same: "I had been young, unemployed and I used borrowed money to buy a foreclosed apartment, which no one wanted to touch with a ten foot pole. Actually the bank was ready to give a full price loan to anyone, who would be foolish enough to take this disaster out of their hands." Guess what? The lucky buyer painted the apartment bright green and it immediately sold to the next fool for $50,000 more. You don't believe him? Me neither. But check the Internet and you will find plenty of sites teaching you how to flip houses for an instant profit by painting their doors in "happy" colors. Before you ran out searching for foreclosed apartments badly in need of painting, have patience and finish this article. Most of such books are variations of the popular book series of the 19th century - "How you can become a Happy Millionaire". They all use primitive hypnotic techniques to fool their readers. They start with: "Your mind will change and grow, slowly and steadily with every page you read. With every thought and insight you gain, your desire and courage will grow as well." The wild success of such techniques was attributed to the low levels of education of the reading public 150 years ago. Well, we should think again. Look at the amount of books Robert Kiyosaki is selling. His Rich Dad Poor Dad series are great in persuading you about the need to make money, but fall short on particulars about how exactly you can achieve that. Despite an attempt to put an entertaining face to the age-old scam, most of those books' techniques are surprisingly similar. They all have this line in common: "Since every millionaire started with a desire to become rich, you must develop a burning desire for money as well. And write this down, have a plan. Once you wrote down a plan, you are half-way there." That course of action remains me of a poor Jewish matchmaker in some remote village in Russia in the 19th century. There was a nice old maid in this village. She had a heart of gold, but was not a great beauty, so no one wanted her. The matchmaker decided that she needs his help. Whom should she marry? The King of England was widowed recently, so he was obviously in search of a spouse. A perfect combination. The matchmaker spoke with the elders of the village, and they all agreed that it might be a good idea. Than he spoke with the maiden herself, and she also reluctantly agreed. Well, said the happy matchmaker rubbing his hands, half the work is done. When you hear how easy it is to make money by flipping houses, you should realize that even if some of those stories are true, they are highly selective. They are not representative of the real-life situations. Those books are always telling that you can make a fortune by finding stupid sellers, whom you can swindle out of their money. There is always a seller in those books, who so badly wants to get out of his house that he is ready to accept half the price. In real life, if the sellers are willing to sell for half price, that means the area around the house is in bad economic situation. There are no jobs in this area or there is a rising crime wave, so most residents want to move out and very few want to move in. If this seller had a chance to sell for more, do you think he would accept your offer for a half price? Most probably he thinks that a next offer might be even lower. If you will try to sell his house for more, do you think you can fix all its problems by just painting it? Whoever is trying to sell you such simplistic view of the Real Estate investing, doesn't have your best interests in mind. He is tricking you into buying his books, and he is using the psychological trickster techniques. Most such techniques work on the subliminal level. That means that they can trick you only as long as you are not aware of them. Now, if you want some self-help book to make you feel better, there is nothing wrong with buying Robert Kiyosaki Rich Dad Poor Dad books series. It might even alleviate your boredom for an evening or two. But if you want to preserve the value of your investments, or make some money for your retirement, realize that those books are poor substitute for a real learning. In order to make heavy financial decisions, you will need much more than a pep-up talk. We all need some reassurance here and there. If hypnotic self-help books can provide it to us, so much for the better. As long as you don't start to gamble your life's savings using the advices found in those books. You can ask, aren't there some good books on Real Estate investing with sound financial advise? Yes, there is plenty of good information available and you can also find smart books on the subject. But that will be the story in my next article. To learn more about financial and investment advise and retirement planning visit new Money Management Forum at Wise-Investment.info
MORE RESOURCES: ‘Given up’: Property giant’s verdict on Aussies news.com.au Boathouses Go Next Level at These Five Mansions Mansion Global Sonoma County real estate market turns turbulent, though 7 areas show improved year-to-year sales prices The Santa Rosa Press Democrat Homes for Sale in New York and New Jersey The New York Times Erie County real estate transactions Buffalo News Downtown Knoxville IRS offices included on list of possible federal real estate spending cuts WBIR.com The Great American Insurance Retreat: Climate Change, Uninsurable Homes, & The Future Of Real Estate CleanTechnica Trade Alert: Independent Director Of Apollo Commercial Real Estate Finance Carmencita N. Whonder Has Sold Stock Simply Wall St REAL ESTATE | VIDEO | Perfect country property in Dodge County | By Wendy Wendorf - Homestead Realty washingtoncountyinsider.com Central Mass. real estate transfers, Sunday, March 9 Worcester Telegram U.S. Government Hits Pause on Massive Commercial Real-Estate Sale The Wall Street Journal Macomb County real estate transfers recorded Sept. 30-Oct. 4, 2024 The Macomb Daily An investor's 3-part 'build-to-rent' strategy is making him $330 a month per unit. It has him on track to retire early. Business Insider Crain’s Cleveland hires Smith to cover residential real estate Talking Biz News DOGE claims $13.6 million in real estate savings in Alaska Alaska's News Source How Nigerian leaders spent millions on SC real estate amid US retreat from dirty money fight The Post and Courier Vendor & Real Estate Partners Dollar Tree, Inc. Real Estate Property Transfers Spring Hill for Feb. 3, 2025 Williamson Source Exclusive | Blackstone Raises Largest Commercial Property Debt Fund With $8 Billion Haul The Wall Street Journal In Good Company: Discover Brooklyn’s Real Estate Gems with MM&Co. (sponsored) Brooklyn Bridge Parents Berkshire region real estate sales – March 7, 2025 theberkshireedge.com Trouble Signs For Real Estate Market In Palm Beach County BocaNewsNow.com America Builds: Making Federal Real Estate Work for the Taxpayer The House Committee on Transportation and Infrastructure Godfrey - Home for sale RiverBender.com The Michael Houck Real Estate Guide for March 9 Oil City News China’s real estate market keeps stabilizing as government policy support boosts confidence: Minister Global Times Palm Beach house sells near Trump's Mar-a-Lago, marks fourth sale there since mid-December USA TODAY DOGE claims $17 million saved in federal real estate terminations in Georgia. Here's where Online Athens AI will change real estate more than the disruption that made Amazon a property powerhouse - Fortune Suburban cities, developers eye office space but high-rise downtowns outside Austin still years away The Business Journals This CT metro area has the 'hottest' real estate market in U.S., according to realtor website CT Insider Charming Southern metro nicknamed the 'Scenic City' sees housing boom in state with NO income tax Daily Mail Pushback in eXp, Weichert settlements called ‘self-serving’ Real Estate News Inside Saratoga's largest mansion, now listed for $24.9M The Business Journals Smartleaf Asset Management LLC Buys 479 Shares of Fidelity MSCI Real Estate Index ETF (NYSEARCA:FREL) Defense World Healthcare Commercial Real Estate Finance Veteran Amy Heller Joins Meridian Capital Group Business Wire Tariffs are a ‘key part’ of Trump’s strategy to ‘level the playing field’: Real estate broker Fox News DOGE cuts 13 real estate contracts, federal offices in Mississippi. Where are they? - Clarion Ledger Real estate stocks down with import of timber, lumber, derivative products under scrutiny Seeking Alpha National Bankshares Forecasts Strong Price Appreciation for Bsr Real Estate Investment Trust (TSE:HOM.U) Stock Defense World $1.3 million Dover townhome tops Strafford County market. Here's lowest-priced home, too. Foster's Daily Democrat Real Estate Stocks To Keep An Eye On – March 7th Defense World Chetrit family faces a reckoning after decades of success in NY real estate Crain's New York Business Apollo Commercial Real Estate Finance (NYSE:ARI) vs. Arbor Realty Trust (NYSE:ABR) Head to Head Survey Defense World Red Bank's Denholtz has created a $2B real estate empire; now they want to get bigger Asbury Park Press Chattanooga housing market heats up in Tennessee Fox Business UW and NFL great Lawyer Milloy lists Woodinville estate for $7.8 million seattlerefined.com Real estate sales in Peoria, Tazewell and Woodford counties for March 8, 2025 Peoria Journal Star Real Estate Newsletter Articles this Week: Property Insurance Costs Rose at a Record Rate in 2024 Calculated Risk County Official Sees Growing Strength in Real Estate Franklin Observer What were the 5 most expensive homes sold in Petaluma last week? The Santa Rosa Press Democrat ‘Extremely pissed off’: LeFever Mattson investors wonder why troubled real estate moguls have escaped accountability The Santa Rosa Press Democrat A couple making $28,000 a year in passive income from real estate used an out-of-the-box approach to buy their first rental Business Insider REAL ESTATE | 92+ acres of farmland in Rubicon, Wi | By Jim Emmer – Emmer Real Estate washingtoncountyinsider.com Up to the Minute Greenwich Property Transfers, February 24-28, 2025 Greenwich Free Press Is a 6.5% Mortgage Rate the 'Magic Number' to Turn the Local Real Estate Market Around This Spring? TAPinto.net Raymond James Has Lowered Expectations for Minto Apartment Real Estate Invt Trust (TSE:MI.UN) Stock Price Defense World Gambling on Las Vegas? Sin City Housing Market Softens as It Suffers Affordability Crisis Realtor.com News National Bankshares Has Lowered Expectations for Minto Apartment Real Estate Invt Trust (TSE:MI.UN) Stock Price Defense World Here are recent property transfers up to $1.4 million St. Albans Messenger Indoor pools, fish ponds: Inside the most expensive Central Jersey homes sold in February My Central Jersey A 1670s MA home tied to Salem Witch trials is for sale. Here's a look at the real estate Wicked Local Carver |
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