The Key to Attracting Anything You Want in Life

I am reading a book called "The Key - The Missing Secret for Attracting Anything You Want" by Joe Vitale who's also feature in "The Secret."

This book is about consciously, we may know what we want (ie. health,wealth, happiness) and we think we practice the law of attraction to achieve what we want but subconsciously, we may have old believes or old programmings that are actually asking the universe for other things or even things we don't want. When our conscious and subconscious mind are not congruent, we seem to hit blocks and unable to attract what we want in life.

In this book, Joe talks about several clearing methods to get rid of our stuck energy in ourselves so we can receive what we ask for in life. I summarized some of the clearing methods on a Squidoo Lens. Check it out here

http://www.squidoo.com/thekeybyjoevitale

Now the market crashed, what do you do? How can you turn crisis into opportunity?

--Written by Jordan Lin, www.vantagerei.com

Last month, we went to Las Vegas and Los Angeles for two investment classes. There are so much to learn and so much to do. We learned about stock and option trading in Las Vegas. On the second day of our class, the market crashed. It’s been the worth crash since 9/11. The Dow Jones Industrial average dropped to 7000’s almost half of its high years ago. Talk about the way to learn how to invest in stock: when the market is crashing down like you never seen before. However, as bad as it sounds in this market, many people actually made tons of profit from it. The instructor pointed out that before the market crashes, there are many indicators that is suggesting that way. So for those who is experienced and know what they are doing, it’s an exciting time for them. For those of you who bought stocks or mutual funds and were predicting they were going up in value before the crash, I feel very sorry because the lost has already happen. And for those of you who still have money to invest, it’s really the right time to buy. Just like real estate, you buy when everyone is scared.

If you are new to the investing world DON’T MAKE ANY MOVES YET

Sorry but I have to make this loud and clear. Don’t just go to any financial advisor and start buying mutual funds or stocks. Instead, invest in yourself. Many people have made the mistake of handing money to some financial advisor without knowing exactly what’s going on, and thinking that the financial advisor is smarter than you so they can make a wiser decision on how to invest. Here are some facts I like to point out:

Not every advisor has your interest in their heart because of the way they make profit. Many advisor out there are not advisor at all, they are simply a sales person selling the products their company is selling. And they make money when you invest, not when you make profit on the investment. But don’t get me wrong, there are some out there that are truly financial advisors and they can benefit you greatly. So shop around to find the real financial advisor, not mutual found sales person.

S&P 500 outperforms 85% of all the mutual funds out there. So if you want to be ahead of 85% of the pack, just buy funds that follow S&P 500. Also, they don’t have stinking fees either. However, you can do better if you wanted to. There are funds out there that are constantly beating S&P 500, long term or short term. To find them, the key is “no-load-funds,” meaning the fund doesn’t charge you fees at the front end or and at the back end.

Invest in stock or real estate is not risky. Thinking you can just following what the so called experts are saying and you will be fine is risky.

Would you let your son take your car key and start driving without getting a license first? I hope not. The same thing applies here. I have been to many seminars and spent a fortune on it too. Do I think it’s worth it? Absolutely! I know these seminars are very expensive and not all of them are good. But there are many good ones out there that would truly benefit you financially. What if you don’t have the money to take the course? Go to the library and borrow books on it. Then save enough money to go to the reputable ones. What if you don’t have the time? That’s a lie, and you know it too. You make the time to do things that are important to you. Do you have time to shower? Do you have time to eat? You need seminars even more if you think you don’t have time. Hopefully you get my point.

If you don’t know where to begin, I would suggest that you can go buy this book and read it: Secrets of the Millionaire Mind



From this book, I have learnt a lot about how we were conditioned from people we know when we grow up and how the riches think. It’s a great starting point for everyone who is interested.

Last word I like to share with you:
Be scared when others are greedy. Be greedy when others are scared.

Vancouver Apartment Buildings

I read a report from a Commercial Realtor today. I've subscribe to their report for free for several years now. Today, I've found the cap rate for apartment buildings in Vancouver has finally increased.

It used to be around 2% last year when the market is hot. 2% cap rate is not very good. Now it is about 5 or 6%. This is an indication that the purchase price has come down a bit in Vancouver apartment buildings.

The investment properties I have are around 20% cap rate which is calculated by Net Operating Income (NOI) divided by the Purchase Price. NOI is calculated by annual gross income minus annual expenses.

A fast and simple way to look at cap rate is to use it to see if the investment makes sense.

For emample, for a property with 20% cap rate, the interest rate on borrowed money is say 7%, so 20 minus 7 is 13. That means I still have 13% in my pocket after mortage payment and expenses. For a 2% cap rate, in order to have positive cash flow, I need to find loans with less than 2% interest...extremely unlikely unless you have a rich aunt who pratically will lend you the money for free.

So to buy a investment property with cap rate of 2% and if I can only get mortgage about 7%, that means I'll have negative cash flow every months. This strategy is okay if you have a lot of money or are investing for appreciation. But I personally think apartment buildings are for cash flow.

A general rule of thumb is to find investment property with 2-3% higher cap rate than your interest on the loan.

Mind Blowing Documentary

It’s scientifically proven that your wishes do come true

Couple weeks ago, I watched a documentary called “What the bleep do we know?” It’s a complicated documentary that tries to tell people that your thoughts actually shape the world in a very strange way. Because there are so many concepts in the movie and that it’s impossible to tell you all about it. I will describe these ideas separately through my coming newsletters.

First idea that I would like to share with everyone is that your thoughts has the ability to shape your world. Also, your thoughts not only will shape the world in the future, but even in the past!! To prove this idea, there has been an experiment done. First, they have a random number generator that would randomly create “1” and “0” number continuously. They then record result of the machine generating “0”and “1” in two copies. They keep one copy in a safety box, and another one to an experiment target. They want the subject to take the copy home and meditate with it. They want the subject to “want” more “1” in the result. And during the experiment no one can know the result of exactly how many “1” or “0” were produced. When next day the subject comes back with the copy, guess what? There are more “1” than “0”!

What this experiment shows was that the mind can actually create things that you want (more “1” than “0”), and that the mind can create it the in the past (it was just the recording of what the machine generated). Very weird isn’t it? I know it sounds very out there, but it’s one of the Ah-Haah moments that I had. Everyone who have watched or read “the Secret” knows that it’s the power of intention, or the law of attraction put to work. What it means is if you want something in your life, you need to think about how good it would be to have it. You need to feel it with as many senses possible. And then get ready to receive it. But for me, it’s not really convincing enough of how this kind of phenomenon happens. Until I watched “what the bleep do we know” and it totally changed my mind. So now I make it into a habit that I would meditate everyday on what I want the next day would be like, and what I want my life to be like – with the “expectation” that it will happen. Strangely, bit by bit, it’s really working towards my goals. What a world. So for those who would like to try it, you can start with getting the best parking spot. Next time when you go some where busy, talk to the universe that you need a parking spot and “expect” it to be there. Try it a few times and let me know what happens. – By Jordan Lin

Vancouver Real Estate Market

My hubby and I bought and flipped a condo in 2007.

Now I think the market is cooling down so I am preparing myself to buy and keep.

I am looking at the real estate stats published by the Real Estate Board of Greater Vancouver (REBGV). Residential sales in Greater Vancouver was the highest in 2007. Sales in August 2008 was lower than August 2006.

“In August, properties on average remained on the market longer than we’ve seen in recent years,” said Dave Watt, REBGV president.

Since May 2008, the benchmark price has decreased about 3-4% for all types of properties (detached, attached, condos) in Greater Vancouver.

For detached homes, the 5 year change on price is +78.1% in Greater Vancouver. Vancouver West has the highest increase of 98.1% over other areas in Greater Van. In areas like Port Moody and Pitt Meadows, the price change over 1 year is already negative.

For attahced homes, the 5 year change is the highest in Vancouver East (104.4%). The one year change is double digit (13.2%) compare to other areas in GVRD. No negative change over one year (at least not very significant 0.1%).

As housing price increases in GVRD, first-time home buyers who cannot afford single family homes in desirable Vancouver West bought attached home in Vancouver East. This is where we bought our condo because of its affordable price.

For apartments, there are several areas with more than 100% change over 5 year (Port Co, Vancouver E, New West, Richmond). Areas experiencing negative increase over 1 year included West Van, North Van, and Vancouver West).

I think this is because of the higher real estate prices, first-time home buyers who usually can afford only apartments, condos buy in the suburbs or less desirable areas in Vancouver. Recent years, the prices got so high in desirable areas that it is leveling off (West Van -4.9%).

Over the 5 years, apartments (condos) has the largest price increase, followed by attached homes.

Check out www.realtylink.org for the stats.

Fannie Mae & Freddi Mac Situation

Author of Rich Dad Poor Dad, Robert Kiyosaki's comments on Fannie and Freddie: latest video commentary


Weekend Millionaires Mike Summey & Roger Dawson's online chat about this: http://www.weekendmillionaire.com/2008/09/09/chat-transcript-september-8-2008/




All these talks about the foreclosure crisis in the U.S. A lot of people are freaking out and saying to stay out of real estate. But all the experienced investors I know are buying up as many as they can. Some investors say it's the best time to buy in 50 years, since the depression or since ever!

I read on CNN Money.com that only 5% of all mortgages in the U.S. are in default. The media made it sound like more than 50% are in default.

So I say, I am so lucky to have the knowledge and experience I have right now, to be ready for this opportunity. I am trying to buy as many as I can because when I buy I make money. Even if the price never go up again, I still make money every month from my investments.

The banks that were in trouble have already made their money when they originated the loan and then sold the loans. Fannie Mae who bought the loans raised money from selling securities to foreign investors. The government now will use the taxpayer's money to bail out Fannie Mae and Freddie. All those people or entities that got us into this mess in the first place have already gone away with the money. Yes, I agree they should have tighter regulations so it won't happen again.

These are just my personal opinion.

Where to Find the Money to Invest in Real Estate

Where can you find money to buy properties?
I get this question a lot lately.

Here are some ideas that you can try:

1. Cash or credit partner – if you know someone with cash and/or good credit who can quality for a mortgage, you can find a deal and present the deal to them to see if they want to invest with you.

2. Hard money lender – there are a lot of hard money lenders out there. Just Google "hard money" and you will find about 15.8 billion English pages. Contrary to popular beliefs, harder money can be cheaper than cash or credit partners. These lenders are investors themselves and they will make sure you have a good deal before they lend you the money.

3. Money in your self-directed retirement account – if you call the bank and ask them to invest the money in your retirement account in real estate, they will likely say no. The banks only sell stocks, bonds, mutual funds, and they only want you to buy their products so they make money. Get a self-directed retirement account and you can invest in almost anything, even account receivables.

4. Home equity line of credit – if you have equity in your home, you can get a home equity line of credit (aka HELOC) to buy properties. Robert Kiyosaki said home equity is like lazy assets. Pull the money out and invest in performing assets (not doodads). Make your money work hard for you.

5. Credit cards – there are a lot of zero percent interest for one year credit cards out there. If you can get personal or business credit cards with enough credit limit, you can buy a house nowadays.

6. Private money – if you can find people to lend you money at lower interest rate than hard money, it’s another good way to go. It can also be money in someone else's self-directed retirement account that they want to invest.

7. Ask the seller to finance the property. I will consider owner finance my properties if the buyer meets my criteria. Check out my properties for sale at www.vantagerei.com

When I first started out, I've used private money, conventional mortgages, HELOC, and more private money.

But if you buy with hard money lender or credit card, make sure you can refinance the house 6 months down the row otherwise the high interest rate will kill the deal. Feel free email me if you have any questions.