The fourth and final side to The Box is: Your investment needs to be replicable or, in other words, duplicable.
Consider this last rule and principle as your fraud meter or your fad meter. For example, there are so many ideas that are presented to you on late night TV. Many of these ideas are fad: they may work for a certain amount of time, but they’re temporary, and that’s not good enough.
We want to make sure that the successful real estate investment we make
is something we can repeat and do over and over again, regardless of
market conditions.
What you’ll learn with The Box is how to make money when the market is going up, when the market is flat, or the market is going down. In other words, every investment we teach you is replicable and sustainable in any market condition. It is predictable in any market and it is quantifiable in all markets.
Again, by thinking inside The Box and using the principles and laws that
govern real estate investing, you will safeguard yourself from future
losses. So, let’s explain further how The Box really works. Let’s begin with
the concept of quantifiable.
Quantifiable means that you always look at measurable key indicators to
analyze when you will may make a profit on your investment. When
quantifying your investment, what you need to ask: “What is my rate of
return going to be every single year?”
Predictable means you can predict what you will do with the investment, what type of strategy you should select, how much profit you’re going to make from it, including the time table and the effort that will be needed.
Sustainable comes down to one thing: can you continue to make money over time? Can you make this an investment? If things change and your analysis is wrong, can you keep it? Time heals all real estate woes,
remember that. What I mean by this is that if something goes wrong upon
your initial investment, you can hold on to the investment and make
money later.
Replicable, again, is your fraud meter... your fad meter. If you cannot duplicate your strategy in any market, you need to acknowledge that this is something you don’t want to get into. It’s something that is probably not the right way to go. It’s probably an idea that only works in a certain type of market... or it could simply be a fad.
There are all kinds of different ways to make money in real estate.
However, what we teach is how to make money in real estate no matter the
market conditions. We want to make sure that if you are using a strategy
that only works when a market is going up and yet the market is going
down quickly, you can change and select the right investment strategy.
Remember that to ensure you have the right strategy, it must meet all of
the four laws and principles of real estate investing we’ve discussed. Don’t
get into fad investments or frauds; stay away from them. This is how The
Box protects you, so stay inside The Box. Think inside The Box and don’t
go outside The Box.
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