Secrets of the Wealthy + Great Entry Level Investment
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We have interviewed many wealthy investors that are part of the YAERD.org network and there are two main things they have all done to build their wealth. The most important thing they consistently do is actually INVEST! Sounds obvious doesn’t it? While it is obvious, we’ve found that most people are very busy and tend to procrastinate when it comes to starting their portfolio or adding to it, but make no mistake, without actually investing consistently you won’t build a great portfolio which leads to real wealth. A great portfolio is built over a period of time with great care, it isn’t something that can be rushed or “caught up on” at a later time.
The second most important thing the wealthy real estate investor does is utilize tax deferred 1031 exchanges after the market their property is in has peaked. This little known tax break offered by the government can aid your wealth building by allowing you to defer capital gains tax on your investment by rolling over your gains into a new investment. Do you share the traits of the wealthy investor? If so, we have a great entry level investment that we have put together for you. As usual, the YAERDcrew has been been spending the last few months up to our eyeballs in market research and visiting potential projects all over the country. We have negotiated a project in an emerging micro market that offers a 30% cash-on-cash return in the first year! Don’t sit on this opportunity because we are only allowing 5 per investors per month as to not saturate the market. Want to learn more about this turn-key, brand new construction investment that only requires $4,500 out of pocket? Click on the video below. 
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There Is Nothing New Under The Sun
What has been will be again, what has been done will be done again; there is nothing new under the sun. Ecclesiastes 1:8-10
Ponder that for a moment before you read the following:
Homeowners have grown accustomed to a world of aggressive mortgage brokers, realtors, and bankers. It is hard to imagine a future world in which “For Sale” signs stand on lawns for years rather than days, where instead of multiple offers above the asking price, you are faced with taking numerous discounts to your asking price, where you need to serve lunch at your open house just to get brokers to come over and look, and where banks have retrenched with new lending policies that include asking questions like what did this property sell for 10 years ago. If bankers retrench, and we assure you that this is what they do for a living (just ask any farmer in the Midwest), then all the formulas you know for lending and pricing go out the window. There will be no comparables in the neighborhood because nothing will be selling. Bankers will have to go back to very realistic valuations, probably based on square footage and historical pricing. Valuations will further be damaged by banks’ own activity as they dump foreclosed properties on the market at huge discounts to the mortgage amount. Banks really do not want to hold bad loans on their books, because it only reminds them of managerial errors of the past. They are infamous for buying high and selling low when it comes to foreclosures.
Unfortunately, their aggressive selling will only exacerbate an already weak property market. To homeowners this means that whatever rosy assumptions they had about refinancing, taking money out in the form of a second mortgage equity loan, or selling at a high price to a buyer financed by aggressive bank formulas will all basically evaporate at the same time. When an entire market’s sense of value is based solely on current “market” values, then be prepared for a wild ride when those market prices come under attack from a less aggressive banking sector.
But you know this already now, so what’s my point?
The above is an excerpt from the book The Coming Crash In The Housing Market, by John Talbott. Copyright 2003.
2003?!! 5 Years ago? Yep. I bought this book the same day it hit the shelves at Borders in downtown San Diego. I was in the beginning stages of building our investment real estate company and I knew the only way our company was going to survive this was by telling our clients what was really going on and to teach them to invest wisely and we still do that to this very day.
Some say we are in scary times, but if you look back to the last real estate cycle you will see that many millionaires were made during times like these. My recommendation is to give us a call and get a free consultation on how best to take advantage of the current marketplace.
Jeremy Quinn
YAERD.org Advisory Board Member
jeremy[at]yaerd.org
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