Most Australians spend forty years or more preparing themselves for retirement, yet over 95 percent of them fail, remaining dependent on the government for their main source of income. However a small group of wealthy individuals reach financial freedom in a fraction of the time, many through strategic property investment.
I?ve found these wealthy investors have mastered seven skills that makes it easier and faster for them to achieve financial prosperity.
Let?s examine these masterskills:
1. Creating and controlling capital
The wealthy understand the importance of building a substantial asset base. Some do this by building a business while others grow a sizable share portfolio, but my preferred method is growing a multi-million dollar property portfolio.
Smart investors know how to create and add value to their properties using techniques like renovations and development. They also add value through their expertise or through smart negotiations and buying well.
And it?s no coincidence that the wealthy control as big an asset base as they safely can by leveraging and borrowing against appreciating assets.
2. Transforming capital into passive residual income
Successful property investorsgrow money trees and recognise that cash flow is the fruit. This means that once they have built a substantial asset base, they transition into the cash flow stage of their investment life by lowering their loan to value ratios and then borrowing against and living off their equity.
Savvy investors follow these 4 rules of capital.
1. They concentrate it ? rather than diversifying, they focus their energy and efforts on their area of expertise.
2. They don?t risk it ?once they?ve built a substantial capital base the wealthy invest rather than speculate. They are prepared to forgo a ?potential? future profit not to risk their current assets.
3. They protect it ? by owning their assets in the correct structures to safeguard their capital and by having financial buffers in place.
4. They value it ? professional investors don?t eat away their capital. Instead they convert their capital into cash flow and live of the fruits of their money tree.
3. They are financially fluent
Smart investors recognise it?s not how much money they make that matters, it?s how hard their money works for them and how much they keep that counts. So they learn how the finance, tax and legal systems work and how they favours investors who treat their properties like a business.
The wealthy understand the language of accounting and know how to read balance sheets and income statements, understand how to calculate the Internal Rate of Return on their investments and how to assess their different investment options.
4. They understand the importance of building a great team around them
Savvy investors know they can?t do it alone; so they recruit, direct and refine a team of finance, tax, legal and property professionals. They know that if they?re the smartest person in their team they?re in trouble.
As CEO of their property investment business, the wealthy don?t abdicate control of their money to others. Instead they set up systems to evaluate the performance of their investments and their advisers.
5. They are decisive.
Way back in the 1930?s Napoleon Hill discovered that successful people had the habit of making swift and committed decisions. This principle, which is just as relevant today as it was almost a century ago, holds the key to determining the level of success you will achieve. Successful property investors are able to see the big picture and don?t seem to get caught up in detail. They assess the situation and take decisive action.
6. They understand the true importance of money
The wealthy recognise that to be truly prosperous, they need a lot more than money. Sure money is important in those areas of life where it is important (such as paying the bills), but it?s not at all useful in those areas where it is not important.
Wealthy people have much more than just money. They have the time to enjoy it; the relationships to share it with, the sense of purpose and passion with which to direct it. And they understand the importance of contribution to the community, which brings meaning to their lives.
On the other hand I?ve found that most people who don?t have money spend so much time struggling to make money that they lose out on the quality of life they deserve. However when you have enough money you can go about creating real wealth.
7. They have the capacity for growth
Wealthy people are voracious learners. They know the fastest way to wealth is through consistently investing in their personal development.
They read books, attend seminars and cultivate relationships with mentors who can advise and guide them. They also network with other positive wealth builders with whom they can mastermind and bounce ideas off. It is no surprise that the more they grow, the more their wealth grows.
What about you?
When you are truly wealthy, when you have all the money that you need, what is your life going to be about ? above and beyond the money?
Remember money is just a power that amplifies your ability to live your life to its real purpose. It?s no use just chasing money, so what is your vision for your life? What is your purpose? What are your values you will strive to live in accordance with?
It?s this focus on living consistent with your purpose and your values that will give you a balanced and fulfilling life.
How to take your property investing to the next level
If you are keen to join the league of successful property investors, or if you are already successful but want to take your property investing to the next level you must have a proven system, a great team of advisers, your finances organised and the right knowledge.
I?m going to explain exactly how I do this at my 2012 Property Development and Renovation Workshop.
Click here to check out the top line up of Australian property experts and find out more about the curriculum as well as the 9 FREE bonuses.
Please give yourself the chance to assess this opportunity properly ? it will take about 10 minutes to read all the information.
This is likely to be the most important year for you to attend. While we can?t predict the future, we have lined up Australia?s leading experts to help you formulate a plan to protect your position and exploit the opportunities ahead.
You will have the opportunity to spend 3 days with:
? A leading property tax expert ? who will show you how to legally reduce your tax and set up the correct structures.
? A top finance strategist ? to show you how to beat the banks at their game.
? A property savvy lawyer ? to explain how to protect your assets.
? A hands on property developer with over 20 years of ?real word? experience.
? A plethora of property experts, some who specialize in property renovations and development.
The intimate class room format of this workshop will give you plenty of time to ask your own personal questions of our faculty of speakers.
Use the online booking form to reserve your place or call Jo Fitt at our Melbourne office on 03 9591 8888 to discuss this further.
It?s up to you now ? I look forward to meeting you in Melbourne and being part of this exciting workshop.
Source: http://propertyupdate.com.au/7-masterskills-of-wealthy-property-investors/
missing reese witherspoon pregnant billy joel bent new york jets etch a sketch romney sean payton
Published 12/10/2012
Book ? Edible Cocktails: Garden to Glass (April 2012)