Good post IB… - Posted by Killer Joe
Posted by Killer Joe on July 05, 2005 at 23:22:18:
Hi IB,
You make a good case for the value found in the RDPD course. I bought it in 2004 to add to my library once I studied it. I have to admit that I just didn’t get the value at first.
The second time I went through it I was much clearer on the value, and now I recommend it for guess what, ‘the Big Picture’. As many have said it contains very little specifics, especially about RE. But what is does contain if you pay attention are the seeds to develop better money habits than most are taught as children.
I, like many others, bought the course due to my interest in REI. That explains the initial disappointment after going through the materials the first time. I kept waiting for the golden REI nuggets to appear, then wondering if I had missed one or two of the CDs. They were all there, of course, what wasn’t there was an open mind on my part. That changed the second time around when I realized the materials had very little to do with REI, but more with the overall way to aquire wealth.
Let me just give you a personal example of something I found interesting. The principle is very simple, almost obvious, but the way it was presented makes complete sense. The principle I am referring to is purchasing assets to buy your liabilities. Take a car as an example, let’s say it’s a Corvette (my taste).
Now in the past I have always bought cars with good financing in place so the interest on the purchase, bought wholesale, or close to it, was managable and affordable. Yet in spite of buying at a good price, with little financing costs, I still had a monthly payment that would linger for several years.
Not anymore. Now when I want something like a newer Corvette, I realize I can just do ONE MORE DEAL that pays for the car. One or two weeks work, no payments, just a pinkslip (title). It’s a different way to look at purchasing lifes little rewards. The only hard part is putting it into practice. And by that I mean once you do that ‘extra deal’ (as if there was one) the money made looks just like all the money the other deals brought in (no kidding).
But here’s the difference, when I go to purchase my next Corvette (#4, I’m sick like that) I certainly will not look for good financing, only a wholesale price on a quality piece. Instead of looking for a good interest rate I will look for a good property to flip that will give me the money to buy the car. (I have purchased two properties in the last thirty days that each would fulfill that requirement, so I know it can be done when lifes priorities require a little ‘reward’, I just don’t need/want one til next spring).
Sorry if this sounds selfserving, I’m just trying to give a real world example of the kinds of nuggets found in the RDPD course, so I have to bring it into my world. You could apply the same techniques to an SUV, boat, RV, or whatever. The whole trick is to purchase an asset at a wholesale value that will allow you to sell it for enough profit to buy your deprieciating assets/liabilities such as cars, instead of years of payments that eat up your cashflow. Remember, that ‘other purchase’ if bought right, can be sold while it holds most of it’s value leaving you with most of your capital intact.
Or you could get a second job that takes away what little hours you have left after your first job, if you think RDPD is all poppycock. It’s your life.
KJ