people make things too difficult and take them too seriously。
Finding a good deal； the right business； the right people； the right investors； or whatever is just like dating。 You must go to the market and talk to a lot of people； make a lot of offers； counteroffers； negotiate； reject and accept。 I know single people who sit at home and wait for the phone to ring； but unless you're Cindy Crawford or Tom Cruise； I think you'd best go to the market； even if it's only the supermarket。 Search； offer； reject； negotiate and accept are all parts of the process of almost everything in life。
？Jog； walk or drive a certain area once a month for ten minutes。 I have found some of my best real estate investments while jogging。 I will jog a certain neighborhood for a year。 What I look for is change。 For there to be profit in a deal； there must be two elements： a bargain and change。 There are lots of bargains； but it's change that turns a bargain into a profitable opportunity。 So when I jog； I jog a neighborhood I might like to invest in。 It is the repetition that causes me to notice slight differences。 I notice real estate signs that are up for a long time。 That means the seller might be more agreeable to deal。 I watch for moving trucks； going in or out。 I stop and talk to the drivers。 I talk to the postal carriers。 It's amazing how much information they acquire about an area。
I find a bad area； especially an area that the news has scared everyone away from。 I drive it for sometimes a year waiting for signs of something changing for the better。 I talk to retailers； especially new ones； and find out why they're moving in。 It takes only a few minutes a month； and I do it while doing something else； like exercising； or going
to and from the store。
？As for stocks； I like Peter Lynch's book Beating the Street for his formula for selecting stocks that grow in value。 I have found that the principles of finding value are the same regardless if it's real estate； stocks； mutual funds； new panies； a new pet； a new home； a new spouse； or a bargain on laundry detergent。 The process is always the same。 You need to know what you're looking for and then go look for it！
？Why consumers will always be poor。 When the supermarket has a sale on； say； toilet paper； the consumer runs in and stocks up。 When the stock market has a sale； most often called a crash or correction； the consumer runs away from it。 When the supermarket raises its prices； the consumer shops elsewhere。 When the stock market raises its prices； the consumer starts buying。
？Look in the right places。 A neighbor bought a condominium for 100；000。 I bought the identical condo next door to his for 50；000。 He told me he's waiting for the price to go up。 I told him that his profit is made when you buy； not when you sell。 He shopped with a real estate broker who owns no property of her own。 I shopped at the foreclosure department of a bank。 I paid 500 for a class on how to do this。 My neighbor thought that the 500 for a real estate investment class was too expensive。 He said he could not afford it； and he couldn't afford the time。 So he waits for the price to go up。
？I look for people who want to buy first； then I look for someone who wants to sell。 A friend was looking for a certain piece of land。 He had the money and did not have the time。 I found a large piece of land larger than what my friend wanted to buy； tied it up with an option； called my friend and he wanted a piece of it。 So I sold the piece to him and then bought the land。 I kept the remaining land as mine for free。 Moral of the story： Buy the pie and cut it in pieces。 Most people look for what they can afford； so they look too small。 They buy only a piece of the pie； so they end up paying more for less。 Small thinkers don't get the big breaks。 If you want to get richer； think bigger first。
Retailers love giving volume discounts； simply because most business people love big spenders。 So even if you're small； you can always think big。 When my pany was in the market for puters； I called several friends and asked them if they were ready to buy also。 We then went to different dealers and negotiated a great deal because we wanted to buy so many。 I have done the same with stocks。 Small people remain small because they think small； act alone； or don't act all。
？Learn from history。 All the big panies on the stock exchange started out as small panies。 Colonel Sanders did not get rich until after he lost everything in his 60s。 Bill Gates was one of the richest men in the world before he was 30。
？Action always beats inaction。
These are just a few of the things I have done and continue to do to recognize opportunities。 The important words being 〃done〃 and 〃do〃。 As repeated many times throughout the book； you must take action before you can receive the financial rewards。 Act now！
EPILOGUE
How To Pay for a Child's College Education for 7000
As the book draws to a close and approaches publication； I would like to share a final thought with you。 The main reason I wrote this book was to share insights into how increased financial intelligence can be used to solve many of life's mon problems。 Without financial training； we all too often use the standard formulas to get through life； such as to work hard； save； borrow and pay excessive taxes。 Today we need better information。
I use the following story as a final example of a financial problem that confronts many young families today。 How do you afford a good education for your children and provide for your own retirement？ It is an example of using financial intelligence instead of hard work to achieve the same goal。
A friend of mine was griping one day about how hard it was to save money for his four children's college education。 He was putting 300 away in a mutual fund each month and had so far accumulated about 12；000。 He estimated he needed 400；000 to get four children through college。 He had 12 years to save for it； since his oldest child was then 6 years of age。
The year was 1991； and the real estate market in Phoenix was terrible。 People were giving houses away。 I suggested to my classmate that he buy a house with some of the money in his mutual fund。 The idea intrigued him and we began to discuss the possibility。 His primary concern was that he did not have the credit with the bank to buy another house； since he was so overextended。 I assured him that there were other ways to finance a property other than through the bank。
We looked for a house for two weeks； a house that would fit all the criteria we were looking for。 There were a lot to choose from； so the shopping was kind of fun。 Finally； we found a 3 bedroom 2 bath home in a prime neighborhood。 The owner had been downsized and needed to sell that day because he and his family were moving to California where another job waited。
He wanted 102；000； but we offered only 79；000。 He took it immediately。 The home had on it what is called a nonqualifying loan； which means even a bum without a job could buy it without a banker's approval。 The owner owed 72；000 so all my friend had to e up with was 7；000； the difference in price between what was owed and what it sold for。 As soon as the owner moved； my friend put the house up for rent。 After all expenses were paid； including the mortgage； he put about 125 in his pocket each month。
His plan was to keep the house for 12 years and let the mortgage get paid down faster； by applying the extra 125 to the principle each month。 We figured that in 12 years； a large portion of the mortgage would be paid off and he could possibly be clearing 800 a month by the time his first child went to college。 He could also sell the house if it had appreciated in value。
In 1994； the real estate market suddenly changed in Phoenix and he was offered 156；000 for the same house by the tenant who lived in it and loved it。 Again； he asked me what I thought； and I naturally said sell； on a 1031 taxdeferred exchange。
Suddenly； he had nearly 80；000 to operate with。 I called another friend in Austin； Texas who then moved this tax deferred money into a ministorage facility。 Within three months； he began receiving checks for a little less than a 1；000 a month in ine which he then poured back into the college mutual fund that was now building much faster。 In 1996； the miniwarehouse sold and he received a check for nearly 330；000 as proceeds from the sale which was again rolled into a new project that would now throw off over 3；000 a month in ine； again； going into the college mutual fund。 He is now very confident that his goal of 400；000 will be met easily； and it only took 7；000 to start and a little financial intelligence。 His children will be able to afford the education that they want and he will then use the underlying asset； wrapped in his C Corporation； to pay for his retirement。 As a result of this successful investment strategy he will be able to retire early。
Thank you for reading this book。 I hope it has provided some insights into utilizing the power of money to work for you。 Today； we need greater financial intelligence to simply survive。 The idea that it takes money to make money is the thinking of financially unsophisticated people。 It does not mean that they're not intelligent。 They have simply not learned the science of making money。
Money is only an idea。 If you want more money simply change your thinking。 Every selfmade person started small with an idea； then turned it into something big。 The same applies with investing。 It takes only a few dollars to start and grow it into something big。 I meet so many people who spend their lives chasing the big deal； or trying to mass a lot of money to get into a big deal； but to me that is foolish。 Too often I have seen unsophisticated investors put their large nest egg into one deal and lose most of it rapidly。 They may have been good workers but they were not good investors。
Education and wisdom about money are important。 Start early。 Buy a book。 Go to a seminar。 Practice。 Start small。 I turned 5；000 cash into a 1 million dollar asset producing 5；000 a month cash flow in less than six years。 But I started learning as a kid。 I encourage you to learn because it's not that hard。 In fact； it's kind of easy once you