He Got a Return of About 19,000%…

You read that number right…

That’s 19 THOUSAND percent… That’s a 19,000% return on an investment.

Think those numbers are possible?

Not usually in normal times. But when markets are in turmoil, I’m not sure there’s a limit really. And that’s because…

Crisis = Opportunity
(For Smart Investors)

I’ve been in the land business a pretty long time. And I’ve seen good markets and I’ve seen bad markets.

With the experience I’ve gained riding through all of those markets myself, I’ve realized something important you need to think about.

I’ve realized there are basically two types of people in this world. The first type of person looks at a crisis and worries about what’s going to happen. They fret, they fidget and they, more often than not, are just happy to sit there and “ride it out.” They’re so scared of losing they forget to even think about how to win.

[I've just described MOST people I know.]

Then there’s the other type that looks at a crisis and spends his time thinking, “Where is the opportunity in all of this mess?”

Those are the people that make it. Those are the winners.

Here are some numbers to give you an idea about how BIG opportunity can be in a “crisis.” This came just last week from an investment letter I subscribe to from Weiss Research…

Here’s a quote:

“In 1929, my father borrowed $500 from his mother and used it to sell short the stock market. He told me that, by the time the market hit bottom, he had close to $100,000. And he didn’t start before the crash; he actually began in April of 1930 after the ‘29 crash.”

Now I’m not a math whiz, but if you invest $500 and get $100,000 back… that’s well over a 19,000% percent ROI.

This investor was in the right place at the right time and had access to the knowledge to make smart moves–while everyone else was running for cover.

It’s a little bit like the land business right now. Most people are skeptical about the current real estate market. They’re reading the papers, watching the news and seeing the red ink day in and day out.

And that’s why, when I get a call asking for advice about what to do in a market like this, I usually say something like:

“Don’t be like most people.”

How’s that for specific?

Here’s the deal:

The media surely isn’t talking about opportunity. And if you looked at the ad revenues that reporting “good news” like that brings in, you’d understand pretty quickly why “bad news” is their bread and butter.

Here’s a good rule of investing to remember:

Just because someone says something doesn’t make it so. A good investor can listen to all of that and STILL figure out what is ACTUALLY happening… in reality.

KNOWLEDGE IS POWER

I pay a LOT of attention to a few things that are very important to the future success of my investments. One of those things is institutional buyers and the other is major developers.

I call these guys the “big guys.”

They’re well funded and they know what they’re doing.

But I don’t listen to what they say… I watch what they DO.

Because when a major developer goes in and starts buying up 25,000 acre tracts of land, you know something is going on. Or at least it’s probably going to start…

That’s because all of that buying power can actually CREATE a new market. It can CREATE demand. The big guys have the funds you need to get a ball like that rolling. And I’ve seen it happen time and time again.

So when do you think “big guys” tend to make their acquisitions?

One of the times they tend to do it is when everyone ELSE is freaking out. Because THAT’S when they can find DEALS that would never exist otherwise.

Times Like
NOW

This is really the best example I’ve ever seen of the phrase, “Knowledge is Power.” Actually it’s a little bit different in the land business. It’s more like “Knowledge is MONEY.”

In high school, the smart kids didn’t usually win. The prizes often went to the jocks or the popular kids.

Well thank GOODNESS that’s not how it is in my business or I’d be sunk. In the land business, the smart guy wins.

The guy who has a better sense of what is actually going on tends to win.

So you’ve got to be careful who you listen to.

Think about THIS the next time you’re watching the news or reading the paper:

“Chances are, the vast majority of the people that contributed to bringing you that story are broke… working for someone else… just trying to make ends meet.”

Is that really someone you want influencing the direction of your financial future?

Hang in there, opportunity is everywhere. Learning to spot it is a process… so just keep moving forward.

But before you go, you’ve got to read this:

http://www.nytimes.com/2008/08/10/us/10kingman.html?em

It’s an article about Kingman Arizona, right in my backyard. That’s where Leonard Mardian (one of the “big guys,” a major developer) went out and bought 47,000 acres of land years ago.

Remember how I said I pay attention to the actions of MAJOR developers?

Now Mardian bought the land, in part, because of the Colorado River Bridge that I discussed last week. But BEFORE his purchase, there was little demand. Not like there is now.

His MAJOR purchase (47,000 acres is a LOT of land folks) started the machine. People started paying attention. Then MORE people started paying attention.

Well fast forward a few years and look at what’s happening. Read the article.

So here’s a question:

Why would an article like THIS appear in the New York Times? A newspaper with readership of over a million subscribers (not counting online subscribers)?

Hmmmm….

Time to Put On Your, “I’m NOT Like
Most People” Hat and Really Think
About What’s Happening Here

Let me answer the big question with another question:

“What do you think could happen to the value of an up and coming affordable development when you tell an additional 1 MILLION people about it?”

The demand is being created right in front of your eyes folks. It’s all part of the plan.

And when you learn to see this stuff and REALLY know what’s going on AND take action on that knowledge… Let’s just say the payoff is well worth developing this skill.