***People (Not Property!) Cause Real Estate Losses

Experience testifies to the low-risk nature of property investments. However, you shouldn’t naively interpret the words “low risk” to mean “no risk worth noticing.”

Tens of thousands of homebuyers and property investors, often speculators, have lost vast sums of money in real estate. And these same people will continue to lose vast sums in the future too.

Why do they lose? Let’s take a look at some of the most common reasons:

Ignorance. They fail to gain detailed knowledge about the markets where they are investing. In other words, they do not consider the laws of supply and demand.

Unjustified optimism. They blindly assume that the near future will mirror the immediate past. They take on more mortgage debt (or accept higher interest rates) than they can realistically pay.

Gullibility. They foolishly believe the infomercial gurus who preach “No cash, no credit? No problem!”

Unwillingness to work the numbers. They fail to anticipate the maintenance and renovation dollars that must be invested to sustain and enhance a property’s value.

Personal lack of discipline. They destructively spend and borrow to support a conspicuous lifestyle they cannot legitimately afford.

In other words . . .

People who suffer losses in property don’t lose money because property investing entails high risk. They lose money because they fail to learn and apply the principles of property investment analysis and personal financial management.

So please ignore the advice of anyone who claims that owning property itself will make you rich. Place the focus and responsibility for success on yourself.

Repeat these words: “If I educate myself, if I discipline my spending and borrowing, if I learn the art and science of investing wisely, then through property I can build as much wealth as I want or need.”

Acquire the knowledge that opens your mind and stimulates entrepreneurial insight, and then follow through with action. You have come to the right learning center. Trump University is the place to make it all happen.

Editor’s note: As always, Professor Eldred’s wisdom shines through in the advice he has chosen to share with us today. It can help the members of Trump University evaluate the true profit potential in the foreclosed and other properties they are considering. To learn more about making sure that foreclosed properties will provide profits, sign up for one of the Profit from Foreclosure Investing seminars from Trump University.

Gary W. Eldred, PhD, has been involved in hundreds of real estate transactions as buyer, seller and consultant. He is author of many best-selling books on real estate. Dr. Eldred created The Real Estate Investor Training Program for Trump University.