Something DEVIL in the board game Cashflow 101?

Something devil in the board game Cashflow 101? Devil is probably too harsh a word to describe it. Magic or power is a more accurate way to describe the experiences while playing Cashflow 101. If you have already played this game many times you can relate to this;

If you are the Banker and are also playing the game, of course you keep your own money game separate from the money of the Bank, you'll be the first one to get out of the rat race, and you will do it so fast that you'd wish you picked up the bad deals instead. Why is this?

Being a Banker with a lots of money in the bank, gives you the feeling of abundance. You felt very rich and you attracts the right deals, lead you to get out of the rat race at a speed. I discovered the magic (abundance mentality) after playing the game more than 100x and immediately applied it in real life. It is all in the attitude and when you felt the abundance, other person and even the universe would sense this immediately. Everyone around you see you as a winner. With this attitude I attracts three right deals this first quarter of the year.

Your Why's

I spend two years reading many real estate investing books, real estate development books, listening to CD courses, attend many real estate seminars (including Think Rich Pinoy which I found very helpful and truly Pinoy), finally, It down on me that the only way to succeed in real estate business is to actually get into the real estate business and when I felt that I'm ready, I jumped in.


Your WHY is the reason you want to make money in real estate. For many It could be to retire at early age or to sack or fire their Boss. For some it may be just an additional income, For yet others, they may want to help their parents or their family. Maybe some want to become like Donald Trump or Andrew Tan.


My WHY's in real estate is simple. I wanted to be financially free. I wanted to help my parents. I wanted to sack my boss and be my own boss. I remember when I was in college somebody want to hire me as his employee. For other they may get thrilled but when he told me that, for some reason, something in me didn't like the idea. I dont know what it was but now I realize I want to be my own boss, I want to be my own person. Now, giving up a 7am to 6pm day job is now a reality... just a few months away from now (as promised to myself).


Whatever your WHY's might be, we all want to make money don't we?

Is The Recession Working For You?

(e-mail by Robert Kiyosaki)

Charles Dickens began a famous novel by saying, It was the best of times, it was the worst of times. As I look at what is going on in the economy and real estate investing, I think that statement perfectly describes our economic situation right now.

Many people are struggling just hoping to get by and not lose their job, house, car and other basics of life. For well-positioned investors, however, this economy represents the opportunity of a lifetime to snatch up assets at a discount. The difference between those who find it to be the best of times and those who find it to be the worst of times is simply their knowledge and financial IQ. Smart investors right now are taking advantage of low interest rates and incredible deals on real estate as they build the investments that will provide thousands of dollars of CASHFLOW in their pockets every month. oOo

I think the recession work for me but let me tell you, it is the worst of times as we are struggling to keep our job here in UAE. Every week we are loosing co-worker. Some are committing suicide, yes its true. On the other hand it is the best of times, we got an offer to buy, a smoking red hot deal from two motivated sellers. They want a way out from their property and they are selling it at 55 percent below market value (with no money down!)..whew! We are scheduled to close the deal on September 2009, and if we complete the deal thereafter, it will guarantee us a profit of at least Php1M each (Me & my partner). You make money in real estate when you buy not when you sell. This will be my life changing deal after an absolute chaos from my first two deals that I completed.

Real Estate Investment Trusts (REITs)

Real-estate Investment Trust Bill
Written by Butch Fernandez / Reporter

THE Senate last night passed on third reading the proposed Real Estate Investment Trust (REIT) that the bill’s main proponent, Sen. Edgardo Angara, said was aimed at boosting the stock market’s role as a vital engine of economic growth.

Angara asserted that early enactment of the REIT bill is expected to further advance the Philippines’ position as a safe haven of investments in the Asia-Pacific region amid the global credit crunch.

He explained that the realty-investment trust provides a legal structure that would allow the public to invest in income-generating real-estate assets and eventually derive a return from it.

“Establishing REIT in the country would also provide liquidity to the real-estate market, unlock capital and eventually help the Philippine economy,” Angara said.

“Also important is that it can provide savers with ready investment opportunities and entrepreneurs with convenient capital-raising vehicle.”

Angara said that under the bill, small and large investors will enjoy advantages from investing in REITs.

“First, there is a common trend in markets with successful REIT models [where] REITs receive tax incentives from the government, but are required to pay out a substantial part of their distributable income by way of dividends to shareholders, in addition to other requirements to ensure investor protection.”

Second, he said, “These companies provide investors with the opportunity to participate directly in the ownership and financing of large-scale real -estate projects at affordable rates of investment.”

In this way, Angara pointed out that investors can make the investments in the REIT without being burdened by the disadvantages of illiquidity, high transaction and management costs that are associated with traditional private real-estate ownership.

Moreover, investors also enjoy the assurance of a fair, transparent and efficient market for buying and selling the REIT securities, because the REIT law will require the listing of the REIT stocks in the local stock exchange. “Therefore, it is easier to buy or sell the REIT shares than to directly buy and sell real properties,” he said.

In addition, Angara assured that investment risks are minimized, because the REIT assets are managed professionally by an independent fund manager and property manager.

“Finally, cross-border investments in REITs will also encourage strategic foreign investments in the Philippine capital market,” Angara said.

Source

Its good to know that the Real Estate sector in the Philippines is moving forward yeah? I included the topic REIT here in Real estate investing as oppose to investing in stocks since REIT solely invest in real estate and mortgages. By the way, what is a Real Estate Investment Trusts or REITs? Real Estate Investment Trusts (REITs)are publicly traded company that invest in income-producing properties and mortgages. REITs tend to buy income producing real estate for cash and often do not have the benefit of using leverage (loans/debt). Like the other investment, REITS have pros and cons.

PROS

REITs are liquid just like any other stocks publicly traded on Stocks Exchange.

REIT management assumes all of the management responsibilities and decision-making.

Appreciation of dividend income paid to stockholders and the related stock price as real estate in general tends to appreciate.


CONS

REITs are stocks, thus liquid and easily saleable, investors may be tempted to sell prematurely thereby giving up the benefit of long term profits.

REITs have corporate officers, who get paid salaries, bonuses, allowances and other perks; and property managers, who get paid to manage and maintain property. Too much expenses huh!

Because REITs tend to buy real estate for cash, appreciation is limited unlike a direct real estate investors who buy with 10 percent down, or 90 percent financing, thus getting the benefit of other peoples money (OPM).

The Worlds Greatest Wealth Builder

"Every man who invests in well-selected real estate in a growing section of a prosperous community adopts the surest method of becoming independent, for real estate is the basis of wealth."
-Theodore Roosevelt

Real Estate is acknowledged as the World's Greatest Wealth Builder. Over 80% of Millionaires have used Real Estate as a vehicle to build and create wealth than any other means. Real Estate is the thing that the Rich have in common. The good thing is you can do this in your spare time, part time or fulltime. You don’t need to be a college or master's degree graduate to do this as long as you can perform basic math (i.e. addition, subtraction, multiplication & division). You don’t need a lot of money to do Real Estate. I know people who do real estate very well, mind you; they are not even graduated from college, one is in his 20's and the other one just started at the age of 67 and they are not from the rich family. Don’t limit yourself. Take charge of your life now. Every real estate deal that you will make (I did 5 deals already), surely, will dramatically transform your lives (and your social status). Make a commitment to learn real estate and earn additional income through it – for real estate is the basis of all wealth.