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Great Business Books for People Who Want to Be Great

If you’re anything like we are, you’ve always had a desire to do something special. You’ve wanted to stand out from the crowd, be different, shun mediocrity, establish more security for yourself and your family, to contribute more to society. You want to be more than just another person with a long list of dreams deferred.

You may have also discovered after lots of trial and error, like we did, that you needed to develop certain skills to become more successful in business.

In that spirit, we have compiled this Guide – Great Business Books for People on a Path to Greatness.

The purpose of this report is to help you identify the common traits of some of the world’s most successful entrepreneurs, people who have achieved great goals and made unforgettable names for themselves.

This guide is organized to provide a short book review describing how we think each book can help you grow as an entrepreneur by actually helping you envision these traits the way they have been lived out in other’s lives.

You benefit from their wisdom and learn from their mistakes and successes. Each person discussed here becomes a personal mentor for your success! After all, as a learning entrepreneur, who better to guide you through the minefields than someone like John C. Maxwell or Mister Get-Things-Done, Harvey Mackay?

Enjoy!

RICH DAD, POOR DAD
Robert Kiyosaki

Young Robert Kiyosaki told his 'poor dad' that he did not want to be poor anymore. His 'poor dad' gave him the simple advice to make some money. Well, Robert took his advice literally and starting "making money" with the help of one of his friends. The problem was that the method he chose usually lands people in prison. After his 'poor dad' explained counterfeiting to him and that it was illegal, he shut down his first business venture, a failure.

However, fortunately for us, this would not be his last attempt at achieving success and accumulating wealth. He has since gone on to launch several successful ventures and has captured many of the lessons that he learned from his 'rich dad' and subsequently practiced in this book, the first of his "Rich Dad" series.

The author explains some of the principles that the rich use to get richer. For example, Kiyosaki offers these challenging ideas:

1. The rich do not work for money
2. Working is not the solution to gaining wealth
3. Your home is not an asset
4. People can't gain wealth when they do not know the language of money

The author teaches readers about these and dozens of other principles of wealth creation. He explains the differences between how the rich and the poor and middle classes view money. He contends that our school systems do not teach our kids how to become financially independent and, therefore, most of us will never learn.

Rich Dad, Poor Dad is Kiyosaki's attempt to help you establish a new paradigm in your life and learn how to 'make money.' You won't learn the secrets of the U.S. Mint, but Kiyosaki, has succeeded in crafting one of the most illuminating books on business and personal finance to come out in several years. I highly recommend it.

THE MILLIONAIRE NEXT DOOR: THE SURPRISING SECRETS OF AMERICA'S WEALTHY

Thomas J. Stanley, William D. Danko

Amazon.com says: "How can you join the ranks of America's wealthy (defined as people whose net worth is over one million dollars)? It's easy, say Stanley and Danko, who have spent the last 20 years interviewing members of this elite club: you just have to follow seven simple rules. The first rule is, always live well below your means. The last rule is, choose your occupation wisely. You'll have to buy the book to find out the other five! It's only fair.

The authors' conclusions are commonsensical. But, as they point out, their prescription often flies in the face of what we think wealthy people should do. We also understand that common sense is not always common practice. There are no pop stars or athletes in this book, but there are plenty of wallboard manufacturers --particularly ones who take cheap, infrequent vacations!

Stanley and Danko mercilessly show how wealth takes sacrifice, discipline, and hard work, qualities that are positively discouraged by our high-consumption society. "You aren't what you drive," admonish the authors. Somewhere, Benjamin Franklin is smiling.

If you follow the advice in this book, you'll be smiling, too. I think that this book should be required reading in schools, in marriage counseling sessions, in the Cub Scouts and Brownie Troops even! It's that good. If you feel like you're not getting ahead financially as fast as you think you ought to be, check out this book. If you have to sell apples on the street corner to afford this book, you can borrow my basket. Just do what you have to do to read and apply these principles. You owe it to yourself and your family.

SWIM WITH THE SHARKS WITHOUT BEING EATEN ALIVE
Harvey Mackay

Do you often wonder how successful business owners got where they are? Do you wish that you knew the strategies that they used to network, build teams, advance their careers, and manage their corporations? If so, this is a book that you MUST read. It's one of my favorites.

This book is a favorite because the author, Harvey Mackay, a successful entrepreneur in his own right, shares from his innermost thoughts. He doesn't just speak to the reader about theories and general business principles. This book is about tactics...what you should do on a day-to-day basis! That is, if you want to taste more success.

I can't find enough words to share my enthusiasm for this author. Mr. Mackay shares his experiences - both successes and failures - in such a way that would qualify him as a mentor to almost every entrepreneur. If you have had a hard time building mentoring relationships with successful business owners, start here.

Finally, I would like to add that this book has been a personal source of encouragement and education for me. I hope that it will become that for you as well.

Be the Bank


I would be willing to bet that neither you nor I know many bankers that are at risk of starving. Altogether, they seem to be doing fairly well within a good, stable, profitable business that has been getting better over time. As I have worked in commercial real estate finance for a number of years now, I’ve observed a simple truism that bankers have known since the first merchants sought financing for their next expedition: Lenders don’t lose.

Within lending, making loans to real estate investors and projects is preferred by many creditors. Most great, lasting wealth has been made through real estate investing. Where real estate wasn’t the great driver, such as the Internet and telecommunications booms of the early 90’s, the smartest people redirected cash earned into real estate holdings. Buying-and-holding residential and commercial properties, speculating in land and serving the growing population through construction, have proven to be effective paths to wealth.

Even within that, many smart Investors have chosen a more passive path to real estate riches. Instead of being the landlords, rehabbers, developers and builders, they have chosen to finance those who do. This is often called “hard money lending” or it can be known as “private real estate investing.”

Let’s look at three main reasons why real estate lending works so well for those looking to build long-term wealth.

1. Income. Real estate lending offers you the chance to earn passive income. Unlike your job, where you trade your hours and effort for cash, lending allows you to leverage capital. Your money makes you more money while you do something else – or nothing at all!

2. Asset Appreciation. Another great feature of real property is asset appreciation. That is, the underlying asset that is actively generating income even as it may be increasing in value. This means that the value basis of a loan you make may improve for you AFTER you close the loan draining risk from your portfolio for the same rate of return.

3. Stability. Investing through private mortgages can shield you from some of the fluctuations that exist in the stock and bond markets. While real estate does have cycles (just like any other asset class), demand is fairly consistent, especially in the Sunbelt region. This feature can be tremendous in a well-balanced portfolio.

HOW DOES HARD MONEY LENDING WORK?

When Investors make hard money loans, they usually do so at annual interest rates of 12-18%. This can be invested in a wide variety of income-producing real estate projects, each of which should be thoroughly researched. The loan terms are typically six-months to two years, during which time the Lender receives a spendable income, paid monthly.

The most experienced private lenders almost never exceed 75% of the appraised value on residential properties or 65% of the current appraised value on commercial properties and land. This measure is taken to help ensure a secure loan, one that allows for a strong equity position in the case of a loan default.

WHY PEOPLE USE PRIVATE MONEY

It is our finding that real estate borrowers, even borrowers with flawless credit, are able and willing to pay a higher interest rate because of the fewer time constraints and red tape than they face with traditional lenders. Private lenders can often approve and fund a loan within days of receiving a complete submission. Traditional lenders can often take 30-45 days to approve and fund even a simple transaction. This leaves the borrower a clear choice when attempting to purchase time sensitive, below-market real estate.

Obtaining a private money loan provides the professional real estate investor much greater flexibility when structuring a transaction. Instead of relying solely on their own cash or credit, a borrower is able to utilize the equity (or potential equity) in the property as collateral for the loan. This allows for a profitable and secure transaction for all parties involved. The borrower is able to acquire and/or rehabilitate a piece of real estate at below-market value with little or no money out of pocket, while the Investor is able to gain higher-than-average returns with below-average risk.


WHAT COULD GO WRONG?

Nobody likes to talk about investments that go bad. The fact of the matter is all investments have some level of risk, and some investments simply do not work out. This presents another advantage to investing in private mortgages. When a traditional investment goes bad the Investor simply loses their money. They may receive nothing in return except maybe an apology from the Borrower. However, well-structured private mortgage investments are secured by real estate and in the unlikely event of default, the Lender may choose to retain the property or sell it for a profit.

If the loan was funded at a portion of the appraised value, the Lender might have a 30%+ profit potential in the property.

WHAT COULD GO RIGHT?

Investing in private mortgages also provides a monthly income stream. With a "normal" investment you don't actually receive any income when (and if) your investment performs well. The capital investment stays with the investment and you receive a quarterly statement detailing how much the portfolio gained or lost. This can be a great strategy for long-term growth where the Investor is secure enough to leave the Investment alone. However, many people would like a monthly income from their investments. Private mortgage investors usually structure their notes to generate monthly interest checks, creating a "spend-able" monthly income stream. For example, a $250,000 investment earning 14% could yield you a monthly income of $2,916.67.

The recent shake-up in the mortgage industry, money is still flowing. It’s just flowing in some different directions. Home Buyers are becoming Renters. Sellers are becoming Landlords. And Lenders are still winning. Therefore, I believe that one of the keys to winning in the next few years is to become a Lender.

Lenders never lose.

If you need help evaluating opportunities or financing your projects, contact me today. I have a free “Deal Evaluator” in Microsoft Excel format that I will send you free when you e-mail me. Many real estate investors have found it helpful.

I wish you great success.

Here are some other ways to connect with Mark:
mark@cashoutguy.com
http://www.thecashoutguy.com
http://www.facebook.com/TheCashOutGuy
http://www.twitter.com/thecashoutguy
http://www.twitter.com/markmccray

PS - Also, we have a great educational program available for download for those of you who are looking for guidance in placing commercial loans on your own. It's available here: http://www.dealsdone.net/seminars_materials.php

10 Keys to Success as a Beginning Real Estate Investor

Ever thought about becoming a real estate investor but weren’t sure where to start? You’ve got company. People just like you have purchased millions of books, tapes and videos from the Robert Kiyosaki’s, Carlton Sheets’ and Robert Allen’s of the world looking for the keys to investing puzzle. However, very few actually get started and even fewer make any money at it. You might still feel as if there are too many obstacles in your way.

Let me encourage you. Just because you might lack a large cash balance, may not have a great credit rating or may not have years of experience as a wheeler-dealer doesn't mean that you can't enjoy success as a real estate investor. I am walking proof. I have helped real estate investors obtain millions of dollars in financing for their projects and, along the way, I think I’ve seen every type of investor possible.

In my job, I’ve had the benefit of seeing many people succeed wildly and many others lose thousands of dollars almost overnight. Here are some ideas that, in my experience, will lead to greater success for you:

1. Determine your goals. Where do you want real estate to take you? Approach your real estate career just like you would any other business by deciding where you want to be in one year, three years or deeper into the future. Knowing where you want to end up helps you choose the right road.

2. Choose the best path for you. What level of profitability do you want to achieve? How much risk can you tolerate? One thing I love about real estate is that there are at least 100 different ways to make money. For example, you could consider
• Rehabbing and reselling single-family properties
• Buying homes and holding them as rental properties
• Becoming a real estate agent
• Brokering or owning office and commercial properties
• Investing through limited partnerships or becoming a private money lender
The thing that matters most is that you find a path that is in line with your lifestyle in terms of how much you want to participate in various investment vehicles.

3. Do your homework. You can lose a lot of money fast if you don’t exercise the discipline to educate yourself and get good advisors. Talk to people about various lending programs, rates and terms in the marketplace. Read some trade magazines or subscribe to wonderful newsletters such as National Real Estate Investor to bolster your understanding of real estate trends.

4. Location, location, location. Learn the makeup of your local market. Buy locations. You can change everything about a property except where it is located. I haven’t seen too many folks make money by having the market bail them out of a bad situation. It usually doesn’t happen that way.

5. Ask questions. When you find a property or project, talk to the neighbors. They will tell you everything you could want to know and more…including why the owner is really selling. Interview Realtors. Some have worked in certain neighborhoods long enough to have brokered the same property several times over the years.

6. Appraisals and inspections are your friends. Unless you are already a millionaire real estate investor, stop listening to your “gut” feeling. If you are a millionaire real estate investor, you probably aren’t reading this article. Therefore, I feel safe in recommending that you always get a second and third set of eyes to look at every investment you’re considering. Better to spend a few dollars to save thousands, right?

7. Line up your professional team. Ask for references and check them. Be willing to fire them and move on if they aren’t performing. You’ll want to establish a relationship with a good attorney, real estate broker, mortgage broker, accountant, inspector, appraiser and a title company along with others that you may work with from time to time.

8. Know your numbers and respect them. You are probably not so much brighter than everyone else that you can rewrite the rules. (Not yet.) Take the time to learn how to analyze debt coverage ratios, local days-on-market, property rental rates, occupancy averages, etc. Respect what your research tells you and…

9. Always be willing to walk away from a deal. It is your money and your time that are at stake. You are making all the ongoing commitments and taking much of the risk. Don’t let anyone pressure you. No one gets paid until you start signing papers; so wait until you are ready before going forward. Once you’re ready…

10. Get started and never give up. You might do a bad deal or two. That’s okay. It’s better to learn early in your career, right? There is a way to breakthrough and accomplish all your dreams. You just have to hang in there until you find it.

In most of the cases, people lose because they violated one or more of the above keys. The more you guide your real estate investing career by these rules, the better off you’ll do. Maybe you’ll be sending me a testimonial recounting your latest success one day? I hope so.

In the mean time, if you need assistance identifying your goals, locating advisors, evaluating opportunities or financing your projects, contact me today for help. In fact, I have a free “Deal Evaluator” in Microsoft Excel format that I will send you free when you e-mail me. No matter where you are starting, the exciting and wealth-building world of real estate investing isn't closed to you.

I wish you great success.

Here are some other ways to connect with Mark:
mark@hardmoneyexpert.info
http://www.facebook.com/TheCashOutGuy

PS - Also, we have a great educational program available for download for those of you who are looking for guidance in placing commercial loans on your own. It's available here: http://hardmoneymusings.blogspot.com/2011/08/how-to-broker-commercial-and-hard-money.html