Maui Millionaires

We're immersed in shocking and terrifying media proclamations and prognostications. And all of it means something very important to you as an investor and as a business owner.

Take the example of real estate investors.

USA Today headlines recently proclaimed, "Mortgage Crisis Seeps to Prime Loans".  In the article they share how PRIME loans now have 60% higher default rates when comparing the fourth quarter 06 through the fourth quarter 07.

And they report that PRIME adjustable rate mortgages (ARMs) default rates have risen approximately 150% over this same time.

Now these two statistics sound dire, and are important, but we need to keep them in perspective.

The first statistic has the default rate on prime mortgages increasing from 1.3% to 2.3%, and the default rates on prime ARMs rose from just .41% to 1.06%.

Again these numbers matter, but they are also a bit sensational too. Would you be so alarmed or anxious if the statistics were reported as "the prime mortgages in good standing are currently at 97.7% as of the end of the fourth quarter 07"?

Probably not.

So today I wanted to remind you that the real opportunities to grow your business and make money with your investing come when you do harness the trends you see coming.

Now most people think that the only trends you can ride are the ones that everyone else sees, but sometimes the best trends to ride are the ones that everyone else sees SKEWED!

When I see all the uncertainty and anxiety in the marketplace I know that this is very much a buyer's market. Now is the time to be getting yourself in a place to leverage the market conditions to build wealth fast.

Here are 3 quick tips to position yourself to ride the trend that so many other people are seeing through a warped lens:

1. Increase your liquidity. In times of financial anxiety and a buyer's market, access to cash will help you close on GREAT buys. Whether this means buying resources, equipment, or talent for your business at steep discounts, or this means buying real estate at 50-60 cents on the dollar, now is a great time to do what you can to free up your cash to be ready to jump on great deals.

This can be by arranging lines of credit (credit cards, business lines of credit, home equity lines of credit, margin accounts, 401k borrowing access, etc.)

This can be by refinancing some permanent debt you have on real property or other assets.

This can be by building relationships with people with access to money fast. Remember, liquidity can be enhanced by OTHER PEOPLE's MONEY too!

2. Get educated so you make smarter, better use of your time, your energy, and your cash.

Do you plan on investing in foreclosures? Now is the time to learn about them--to learn about short sales, and purchase contracts, and how to negotiate deals. There is no better investment than to leverage yourself through education.

3. Buy your own investments at sharp discounts.

One of my clients is in the process of buying several of his own commercial loans at 60 cents on the dollar from a lender that went into receivership (i.e. the lender went bust). He'll be able to make several million dollars AND LOWER his risk at the same time by buying his own notes back from the bank!

Talk about having your cake and eating it too.

Do you owe money on an asset? Do you have a service that you are buying? See if the other party will take a discount for early payment. If they make it attractive enough you can choose to get a guaranteed return on money that you were going to have to spend anyway.

But make sure you remember tip #1 about liquidity and VALUE your cash highly. This means the discount must be substantial.

I've used this simple strategy to make a ton of money and I highly recommend you consider using it yourself.