"One of the most important and effective ways to mitigate risk and identify a good investment is to understand the value proposition of any investment opportunity...."
"...If a person cannot tell you quickly and clearly how, exactly, she is creating value with her idea, she may be hiding something...."
"If we allow ourselves to fall prey to the concept that in the long-term our returns will average out, we're allowing untold and unanalyzed opportunity costs to affect the course of our lives. The bottom line about averages is that they are completely useless in making investment decisions...."
"The most important way to overcome the myth of risk is to learn how to reduce your risk to near zero in any investment opportunity. This is accomplished through education, understanding your abilities and how to produce value with them, and aligning with principle instead of being driven by technique and strategy alone."
"What collateral exists in typical stock market 'investing?' How many so-called investors can control the interest rate, payment, down payment, and time period that affect their investments?....How can this even remotely be classified as investing?"
The author loves the idea that real estate investment is secured by collateral, that bank lending is secured by collateral, and that these are all forms of protection for the investor and the lender. One of the reasons I personally believe in income-producing real estate as a path toward financial independence.
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