In 1961, millionaire investor, author, Robert W. Kent, wrote a popular “How To” book about his own investment experiences, HOW TO GET RICH IN REAL EST ATE, Prentice Hall, Inc., Englewood Cliffs, NJ.  In the very first chapter Kent writes about do-it-yourself investing - and in particular, investing in the older multiple type income-producing properties that can be purchased much cheaper per unit! “It is feasible, he says, for any sincere man or woman who is steadfast in purpose, and is three of the three cardinal faults; timidity, negativeness and laziness to learn how to invest and do it well.”  Those words written nearly 45 years ago have not lost their value today.  Kent goes on to say – sometimes the hardest thing to convince people of 

Some folks have told me — They don’t see much long-range potential in the kind of properties I’ve been discussing here!  First, let me say this — There is no need to worry about long-range investing potential unless you first take care of short-term investment needs, namely building a guaranteed monthly income.  Over the years I’ve transitioned from small fixer-upper properties to larger ones.  I’ve owned a 100-unit hotel with commercial storefronts.  I still own many single-family houses and duplexes. I’ve converted old motels to monthly apartments and along the way; I’ve made some big-ticket sales and carried back many installment notes. But most important of all— I’ve always bought the kind of properties that paid me to own them.

BARGAINS NEVER CHANGE – JUST YOUR EDUCATION

Finding the right properties with decent potential for profits and cash flow is the first step for developing a successful investment plan, I think.  It’s also important to break away from traditional thinking and the average investor crowd.  Serious money is made by those who study the marketplace and have the ability to spot bargains that others can’t see.  You don’t need to buy properties below your comfort zone, but I’ve found most investors who have the courage to step outside the box and push their limits a bit will do just fine! In my long career of investing – and watching other investors around me, a somewhat surprising fact pops out!  Investors who have the least amount of resources – that is, cash for down payments and a brain that’s void of pre-conceived ideas (mostly hear-say) about what constitutes a real bargain tend to do a lot better – and reach cash flow status much faster.

In short, poor folks who follow directions well, reach their investment goal much easier because they have fewer choices to stray off course!  Being “half smart” is the perfect recipe for doing nothing or worse yet, losing everything when you finally make a move.

My success has come from keeping things simple – and sticking to basics. That means thoroughly analyzing the expense money going out and the income coming in. You don’t need to know the (lRR) internal rate of return on a duplex to make a profit.  You’re far better off knowing if both toilets will flush.  Later on when the money rolls in – you’re accountant can tell you about the (lRR). Meantime, he can start doing your plumbing when he’s not working on the books.