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How to prepare to invest and study money

Four years ago, I sent this e-mail to a friend (entrepreneur) about ‘Money’ and ‘Investing’…

…still holds true today.

Dear [Friend’s name],

I had a good talk about money with a savvy investor who operates a $50 million personal investment fund. He said, “Idle money is the devil’s money.”

I thought you might find this interesting as a business owner.

I’ve also been reading some books on the subject of Money, and I thought I would share some recommendations with you.

For basics, I recommend “Money Master the Game” by Tony Robbins, “I Will Teach You to Be Rich” by Sethi, “Rich Dad Poor Dad” by Kiyosaki, and “The Millionaire Real Estate Investor” by Kiyosaki.

For advanced reading, I recommend “The Wealth of Nations” by Adam Smith, “Irrational Exuberance” by Robert Shiller, and “A Random Walk Down Wall Street” by Burton Malkiel.

I recommend checking out auctions, tax sales, and foreclosures, as potential investment opportunities. The best way to compete is to avoid competition. Having a line of credit or liquid funds is important to take advantage of distressed cash-only sales. You can refinance your home and do a cash-out or do a HELOC.

Be prepared to compete against old-school cash buyers, who may have weaknesses like lack of time, buyers, and research. They will pass on good investments because of the hassle.

Don’t assume they will buy everything. It’s also important to learn and study your mental state before, during, and after all your offers and deals. Your psychology is the game you must master to win big investing. And be aware of market shifts.

Personally, I hold on to homes that give a 10% capital rate and flip others below 10% so that I can make 25% return. And if you have a lot of money, hard money lending can be a big opportunity. I’ve only done it twice, but made a 15% return in 4 months and an actualized return of 60%.

Lastly, a great buyer’s broker can find you amazing deals before anyone else. Get a broker and have them find you deals. Go to to find great deals for homes in North Central and Central WA.



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