Quotes of the Day

Once the property fits the Cash Flow Zone, the next step is to determine the motivation of the vendor. Unmotivated vendors will waste a ton of your time. The best way to determine the vendor's motivation is to provide your realtor with a list of questions. 1. Why are you selling? 2. How long have you owned the property? 3. When do you have to move? The answers you get will reveal the vendor's motivation level and, as an added bonus, you'll discover whether the most critical motivating factor is time or money. You should also note that a vendor's motivation level often increases when the property has been listed for sale for some time. [2009] - Don R. Campbell

I firmly believe that interest rates will stay low for the foreseeable future, but I don't do my long-term financial projections based on those low numbers. I calculate a worst-case scenario, where interest rates rise dramatically (using a 3 percent stress test). Only if my investments will still cover the cost of borrowing, after accounting for a sharp rise in rates, will I make an investment with borrowed funds. Remember that it's actually the after-tax cost of borrowing that matters. Consider this: if you're in the 50 percent tax bracket, even a rise of interest rates to 6 percent would be equivalent to an after-tax cost of borrowing of 3 percent because you can deduct half of your interest expense in taxes. [2017] - Calum Ross

You want to discover what the person enjoys about his daily experience, whether he is happy and why, how much his job means to him, and how involved he is at church or in other community activities. Pay close attention to information about family background, especially the relationships the person has with his or parents. You should want to know about the quality of the parents' marriage. It is good to know as much as you can about whether the parents enjoy each other or simply tolerate each other. [2002] - Neil Clark Warren

We're getting older as a population, which means fewer borrowers and more savers. That's why interest rates are so low and why they're going to stay low. On the other hand, whatever is causing the low interest rates may also cause company earnings to grow more slowly in the future. As a result, the dividends on those stocks might grow more slowly too. If so, stocks may be overvalued after all. I'm inclined to go with a real return on equities of 3.5-4% over the next 30 to 40 years. [2021] - Frederick Vettese

I try to stay away from gold products offered in TV or mass circulation ads and buying from individuals over the Internet. [2008] - Shayne McGuire