15/05/2021
3 SKILLS NEEDED TO BECOME A SOPHISTICATED INVESTOR
If you want to be the second type of investor, you need to develop
three main skills:
1. LEARN HOW TO FIND AN OPPORTUNITY THAT EVERYONE ELSE MISSED. You see with your mind what others miss with their eyes.
For example, a friend bought this rundown old house. It was spooky to look at. Everyone wondered why he bought it.
What he saw that we did not was that the house came with four extra empty lots. He discovered that after going to the title company. After buying the house, he tore the house down and sold the five lots to a builder for three times what he paid for the entire package. He made $75,000 for two months of work. It’s not a lot of money, but it sure beats
minimum wage. And it’s not technically difficult.
2. LEARN HOW TO RAISE MONEY.The average person only goes to the bank. This second type of investor needs to know how to raise capital, and there are many ways that don’t require a bank. To get started, I learned how to buy houses without a bank. It was the learned skill
of raising money, more than the houses themselves, that was priceless.
All too often I hear people say, “The bank won’t lend me money,” or “I don’t have the money to buy it.” If you want to be a type-two investor, you need to learn how to do that which stops most people. In other words, a majority of people let their
lack of money stop them from making a deal. If you can avoid that obstacle, you will be millions ahead of those who don’t
learn those skills. There have been many times I have bought a house, a stock, or an apartment building without a penny in
the bank. I once bought an apartment house for $1.2 million.
I did what is called “tying it up,” with a written contract between seller and buyer. I then raised the $100,000 deposit, which bought me 90 days to raise the rest of the money. Why did I do it? Simply because
I knew it was worth $2 million. I never raised the money. Instead, the person who put up the $100,000 gave me $50,000 for finding the deal, took over my position, and I walked away. Investing is not buying. It’s more a case of knowing.
3. LEARN HOW TO ORGANIZE SMART PEOPLE.
Intelligent people are those who work with or hire a person who is more intelligent than they are.
When you need advice, make sure you choose your advisors wisely.There is a lot to learn, but the rewards can be astronomical. If you do not want to learn those skills, then being a type-one investor is highly recommended. IT IS WHAT YOU KNOW THAT IS YOUR GREATEST WEALTH... IT IS WHAT YOU DO NOT KNOW THAT IS YOUR GREATEST RISK.
There is always risk, so learn to manage risk instead of avoiding it.
Watch out for "HOW TO BEGIN YOUR INVESTMENT JOURNEY: 4 TIPS"
From Robert Kiyosaki post
