When making any type of investment, it’s important to think about how you can make money 7 by investing. As I’ve written in the free book that you can download from the link below, I’m a self-taught investor:
- Prison to Paradise: How I Built Assets Worth More than $5 Million Within Five Years of My Release From Prison-And How You Can Succeed, Too!
For clarity, I’m neither a financial advisor, a licensed securities broker, or a lawyer. Instead, I’m a guy who made a lot of bad decisions as a young man. Those bad decisions had consequences. As a result, I had to teach myself how to overcome challenges. Learning how to invest helped me through the journey. If you want to learn how you can make money by investing, you may want to study the same books I used to learn.
In the beginning, I learned about the stock market. While in prison, I could watch CNBC and learn from the way that other people invested in the market. Each day, the financial journalists would interview company leaders. I’d listen learn as the executives spoke about strategies their companies were pursuing to gain market share and increase value for shareholders.
Besides corporate executives, the journalists interviewed analysts from different sectors. Some of those analysts spoke about technical analysis, where they would study how the stocks performed over a given period of time. Others would talk about fundamental analysis, where they would assess metrics of corporate performance, like price-to-earnings multiples, growth rates, profit margins, market capitalization, and so forth.
Besides CNBC, I read scores of books, newspapers, and magazines about investing. I learned many lessons from studying the market. And as I describe in the book above, those lessons helped me earn hundreds of thousands of dollars from speculating in stocks. After authorities released me, I decided that real estate would be the best vehicle for me to build prosperity.
Stock Market and Real Estate
Lessons I learned from the stock market helped me to become a better investor.
You can choose how you want to invest. You can make money by speculating in stocks or different financial instruments. But you can also lose money by investing in stocks or other financial instruments.
With real estate, you can make money, too. As long as you can hold the asset, the real estate will always have value. And if we look at historical valuations, over time, the real estate will increase in value.
I made money by using leverage to invest in real estate. With little to no-money down, I began to acquire real estate. In the beginning, I used debt to acquire single-family houses. Once I owned the houses, I found tenants to rent the houses from me. Each month, those tenants would pay rent and I would use the rent to make mortgage payments or service debt I took on from other investors. As I built a track record of owning real estate, I was able raise more capital to acquire more real estate. When markets changed, however, I switched to investing in land.
Investing in land can be a great investment. Especially if your land investment has the following characteristics:
- You can acquire the land with little to no-money down.
- You have the resources to cover the monthly payments on the land.
- Other investors are investing in land around the land you’re acquiring.
- You can spot a trend of the land increasing in value.
- Your land investment is located in a market with appreciating valuations.
I never ask anyone to do anything that I’m not doing. Between 2012 and 2018, I made several real estate acquisitions in California. But in 2018 I began investing in foreign markets, buying land or equity in land developments. I intend to make money from those investments because they satisfy each of the five characteristics that I list above.
You can decide whether it makes sense to invest in stocks, bonds, income properties, land investments, or some other vehicle.
Either way, make a decision and invest! Because if you learn how, you can make money with investments. But if you don’t invest, you can’t participate in the upside.