All brokers are not created equalUnfortunately, most brokers are only salespeopleI would say the real estate salespeople are the worst
They sell, but they themselves own little or no real estateThere is a tremendous difference between a broker who sells houses and a broker who sells investmentsAnd that is true for stock, bond, mutual fund and insurance brokers who call themselves financial plannersAs in the fairy tale, you kiss a lot of frogs to find one princeJust remember the old saying, "Never ask an encyclopedia salesperson if you need an encyclopedia
When I interview any paid professional, I first find out how much property or stocks they personally own and what percentage they pay in taxesAnd that applies to my tax attorney as well as my accountantI have an accountant who minds her own businessHer http://www.snluxury.com/scategory_28_Omega-Watches.html" target="_blank profession is accounting, but her business is real estateI used to have an accountant that was a small business accountant, but he had no real estateI switched because we did not love the same business
Find a broker who has your best interests at heart'; spend the time educating you, and they could be the best asset you findJust be fair, and most of them will be fair to youIf all you can think about is cutting their commissions, then why should they want to be around you? It's just simple logic
As I said earlier, one of the management skills is the management of peopleMany people only manage people they feel smarter than and they have power over, such as subordinates in a work situationMany middle managers remain middle managers, failing to get promoted because they know how to work with people below them, but not with http://www.enluxury.com/category_3_Chloe_1.html" target="_blank people above themThe real skill is to manage and pay well the people who are smarter than you in some technical areaThat is why companies have a board of directorsYou should have one, tooAnd that is financial intelligenceBE AN "INDIAN GIVER": This is the power of getting something for nothingWhen the first white settlers came to America, they were taken aback by a cultural practice some American Indians hadFor example, if a settler was cold, the Indian would give the person a blanketMistaking it for a gift, the settler was often offended when the Indian asked for it back
The Indians also got upset when they realized the settlers did not want to give it backThat is where the term "Indian giver" came fromA simple cultural misunderstanding
In the world of the "asset column," being an Indian giver is vital to http://www.enluxury.com/categorys_93_Coco-Chanel-Top-Handles-Bag_1.html" target="_blank wealthThe sophisticated investor's first question is, "How fast do I get my money back?" They also want to know what they get for free, also called a piece of the actionThat is why the ROI, or return of and on investment, is so important
For example, I found a small condominium, a few blocks from where I live, that was in foreclosureThe bank wanted $60,000, and I submitted a bid for $50,000, which they took, simply because, along with my bid, was a cashier's check for $50,000They realized I was seriousMost investors would say, aren't you tying up a lot of cash? Would it not be better to get a loan on it? The answer is, not in this caseMy investment company uses this as a vacation rental in the winter months, when the "snowbirds" come to Arizona, and rent it for $2,500 a month for four months out of the yearFor rental http://www.muluxury.com/scategory_7_Gucci.html" target="_blank during the off-season, it rents for only $1,000 a monthI had my money back in about three years Now I own this asset, which pumps money out for me, month in and month out
The same is done with stocksFrequently, my broker will call me and recommend I move a sizable amount of money into the stock of a company that he feels is just about to make a move that will add value to the stock, like announcing a new product I will move my money in for a week to a month while the stock moves upThen, I pull my initial dollar amount out, and stop worrying about the fluctuations of the market, because my initial money is back and ready to work on another assetSo my money goes in, and then it comes out, and I own an asset that was technically free
True, I have lost money on many occasions But I only play with money I can afford to http://www.enluxury.com/scategory_25_Gucci-Watches.html" target="_blank