Creating Wealth : Chapter 4 cont.

Stage #2:
The Liftoff or the Struggling Stage

you don't launch spaceships with firecrackers!
you launch them with Titan booster rocket that are proven and tested.
==>>>REAL ESTATE.

be prepared to buy at least one single-family house per year...
for now, don't fear, just learn the concept.

you can always improve your chances of building a profitable long-term
real estate port-folio by becoming and expert at finding bargain properties
or negotiating bargain prices.

Instead of the usual instant gratification, these first years are years of sacrifice
in which the results don't seem to justify the effort.
These few years are also fraught with the temptation to find a quicker, easier, faster route.
For every solid booster-rocket investment there are ten thousand imitations being bandied out.
Now is not the time to change horses in midstream.
It Is The Time For Persistance.

Invest the 90%, Keep the 10% to buy Insurance.
You need to buy staying-power insurance.
and maintain a liquid emergency insurance fund.
you should plan to create a fund as soon as it is feasible.

summary for Stage #2:
1. Concentration of as much as 90% of your assets in real estate.
2. Minimum buying program of one property per year for ten years.
3. Maintaining a staying-power fund equal to at least three monthly payments
for every property you own.

Stage #3:
The Powerful Pre-Orbit Stage

You are trying to create wealth, not preserve it.
Start small with your prime-the-pump fund.
Look seriously to having at least 10% of your assets in liquid-money form.
The best defense is good offense.

Extra cash distribution:
1. 80% real estate
2. 10% liquid paper assets
3. 10% precious metal

Stage #4:
Is so important, it is the entire chapter 5
The Automatic Pilot Principle.

well it seems we are getting deeper into real estate thingy, so I will end this book here.