I called immediately to find out whyAll he said...
I called immediately to find out whyAll he said was that he talked to his neighbor, and his neighbor told him it was a bad dealHe was paying too much
I asked Richard if his neighbor was an investor When I asked why he listened to him, Richard got defensive and simply said he wanted to keep looking
The real estate market in Phoenix turned, and by 1994, that little unit was renting for $1,000 a month-$2,500 in the peak winter monthsThe unit was worth $95,000 in 1995All Richard had to put down was $5,000 and he would have had a start at getting out of the rat raceToday, he still has done nothingAnd the bargains in Phoenix are still here; you just have to look a lot harder
Richard's backing out did not surprise me It's called "buyer's remorse," and it affects all of usIt's those doubts that get usThe little 1 chicken won, and a chance at freedom was lost
In another example, I hold a small portion of my assets in tax lien certificates instead of CDsI earn 16 percent per year on my money, which certainly beats the 5 percent the bank offersThe certificates are secured by real estate and enforced by state law, which is also better than most banksThe formula they're bought on makes them safeThey just lack liquiditySo I look at them as 2 to 7-year CDsAlmost white chanel purse every time I tell someone, especially if they have money in CDs, that I hold my money this way, they will tell me it's riskyThey tell me why I should not do itWhen I ask them where they get their information, they say from a friend or an investment magazineThey've never done it, and they're telling someone who's doing it why they shouldn'tThe lowest I yield I look for is 16 percent, but people who are filled with doubt are willing to accept 5 percent
My point is that it's those doubts and cynicism that keep most people? poor and playing it safeThe real world is simply waiting for you to get rich Only a person's doubts keep them poorAs I said, getting out of the rat race is technically easyIt doesn't take much education, but those doubts are cripplers for most people
"Cynics never win," said rich dad"Unchecked doubt and fear creates i a cynicCynics criticize, and winners analyze" was another of his favorite sayingsRich dad explained that criticism blinded while analysis opened -< eyesAnalysis allowed winners to see that critics were blind, and to see opportunities that everyone else missedAnd finding what people miss is | key to any success
Real estate is a powerful investment tool for anyone seeking financial independence or freedomIt is a unique cartier must 21 investment toolYet, every time I mention real estate as a vehicle, I often hear, "I don't want to fix toilets That's what Peter Lynch calls "noise That's what my rich dad would say is the cynic talkingSomeone who criticizes and does not
analyzeSomeone who lets their doubts and fears close their mind instead of open their eyes
So when someone says, "I don't want to fix toilets," I want to fire back, "What makes you think I want to?" They're saying a toilet is more important than what they wantI talk about freedom from the rat race, and they focus on toiletsThat is the thought pattern that keeps most people poorThey criticize instead of analyze
" 'I don't wants' hold the key to your success," rich dad would say
Because I, too, do not want to fix toilets, I shop hard for a property manager who does fix toiletsAnd by finding a great property manager who runs houses or apartments, well, my cash flow goes upBut more importantly a great property manager allows me to buy a lot more real estate since I don't have to fix toiletsA great property manager is key to success in real estateFinding a good manager is more important to me than the real estateA great property manager often hears of great deals before real estate agents do, which makes them even more fashion d&g valuable
That is what rich dad meant by " 'I don't wants' hold the key to your success Because I do not want to fix toilets either, I figured out how to buy more real estate and expedite my getting out of the rat raceThe people who continue to say "I don't want to fix toilets" often deny themselves the use of this powerful investment vehicleToilets are more important than their freedom
In the stock market, I often hear people say, "I don't want to lose money Well, what makes them think I or anyone else likes losing money? They don't make money because they chose to not lose moneyInstead of analyzing, they close their minds to another powerful investment vehicle, the stock market
In December 1996,1 was riding with a friend past our neighborhood gas stationHe looked up and saw that the price of oil was going upMy friend is a worry wart or a "Chicken Little To him, the sky is always going to fall, and it usually does, on him
When we got home, he showed me all the stats as to why the price of oil was going to go up over the next few yearsStatistics I had never seen before, even though I already owned a substantial share block of an existing oil companyWith that information, I immediately began looking for and found a new undervalued oil company that was mens brushed steel and gold cartier watch about to find some oil depositsMy broker was excited about this new company, and I bought 15,000 shares for 65 cents per share
In February 1997, this same friend and I drove by the same gas station, and sure enough, the price per gallon had gone up nearly 15 percentAgain, the "Chicken Little" worried and complained I smiled because in January 1997, that little oil company hit oil and those 15,000 shares went up to more than $3 per share since he had first given me the tipAnd the price of gas will continue to go up if what my friend says is true
Instead of analyzing, their little chicken closes their mindIf most people understood how a "stop" worked in stock-market investing, there would be more people -investing to win instead of investing not to loseA "stop" is simply a computer command that sells your stock automatically if the price begins to drop, helping to minimize your losses and maximize some gainsIt's a great tool for those who are terrified of losing
So whenever I hear people focusing on their "I don't wants," rather than what they do want, I know the "noise" in their head must be loudChicken Little has taken over their brain and is yelling, "The sky is falling and toilets are breaking So they avoid their "don't wants," but they pay a huge vintage rolex watch price