get rich through real estate without money

8/10/2019 Get Rich through Real Estate without Money

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This book will wash away the old belief that

“Investment in real estate requires a large amount of

money”. Actually, even if you don’t have a single

dollar you can also become rich from real estate by

commencing with the changing of your actions andthoughts.



Dedication

My thanks and appreciation to my brothers and my sister.



Copyright © Pichai Chawla

The right of Pichai Chawla to be identified as author of this work

has been asserted by him in accordance with section 77 and 78 of

the Copyright, Designs and Patents Act 1988.

All rights reserved. No part of this publication may bereproduced, stored in a retrieval system, or transmitted in any

form or by any means, electronic, mechanical, photocopying,

recording, or otherwise, without the prior permission of the

publishers.

Any person who commits any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims

for damages.

A CIP catalogue record for this title is available from the British

Library.

ISBN 978 1 84963 952 1

www.austinmacauley.com

First Published (2015)

Austin Macauley Publishers Ltd.

25 Canada Square

Canary WharfLondon

E14 5LB

Printed and bound in Great Britain



Contents

Introduction 9

Chapter I: How to get rich through real estate without using

money 12

1. Without Spending Any Money 12

Chapter II: How Can we Get Rich Through Real Estate? 26

1. Turn Stocks into Buildings 27

2.

Buy Assets, Don’t buy Debts 31

3. Practise How to Read Financial Statements 32

4. Don’t Invest more than your Budget and Invest in Well -

performing Assets 38

5. Work as a Team 39

6.

Add More Value 41

7.

Employ a Good Business Model 42

8. Learn from Successful People 47

9. Rearrange your Environment 49

10. Don’t be Afraid of Failure or Losing Money 50

11.

‘Weigh’ your Decision. Don’t Judge it to be ‘Right or

Wrong’, Black or White 56

12. Learn how to Manage your Fear of Losing Money 59



13. Remove Negative Thoughts 62

14. Do not make Excuses 65

15.

Improve your Emotional Intelligence 66

16. Stay Determined 67

17. Do your Best and Let it Be. Do not Focus on Results 68

Chapter III: The (un)secret about Real Estate Investment 72

1. Be Careful when Others are Brave, and Vice Versa 72

2. Don’t Wait for a Low Point or Peak 73

3. All Locations can be Good, up to the Price 74

4.

Look for Buyers and New Assets at the Same Time 74

5. Add More Value 75

6.

Synergize your Investment with Two Assets or More 75

7.

Act as a Bank 75

8. Take Tax Benefits 76

9. Depreciation 76

Conclusion 77



I n t r o d u c t i o n

Every investment has risk. Be sure to study all the

information presented before investing.

The above warning resembles the small print stamped on

the bottom of an investment advertisement warning investorsto be careful. It also warns investors to be aware that the risk

of losing money is equal to the possibility of making a gain.

However, that warning cannot encompass all aspects of

investment risk, but it indirectly agrees with:

“No investment. No risk.”

In reality, not investing also poses risk. Failure to invest

can lead to much long-term loss if you don’t review all

relevant information before investing.

To repeat: Investment has risk, but it is usually short term,as there is usually a greater likelihood of return in the long

term on investment or profit.

Not to invest is the real long-term risk, especially for the

“salary man” who can be too confident in the security of aregular income and may fail to consider the impact of inflation

and monthly expenses, which can be considered as a long-term

debt such as credit card fees, mortgage or rental payments andcar installments.



Making a living solely from a salary, creating long-termdebt and avoiding risk create a complete risk package. It is a

long-term risk that such a person will have to live with fortheir entire life.

“Not investing has risk.

Be sure to study all available information before avoiding

risk.”

We should look at our expenses in order to estimate therisk. Each month, we spend on utilities, like water, electricityand phone as well as mortgage and car installments, home

appliances, mobile phones, children’s tuition fees, fuel, and

travelling expenses.

These are not investments, and we must fork out a great

deal of cash for them. We cannot avoid paying for these and

need to consider them as long-term expenses. In contrast, aninvestment might have risk but could be viewed as short-term,

but it also offers the chance of generating revenue that cancover these expenses.

The world is developing rapidly. Nothing is certain or

secure any longer. We may lose our job or our company mayclose. Our income after retirement may not be enough to

support us for the rest of our lives.

“NO MONEY”

is just an excuse,

or a cry from those who misunderstand

or never learn how to invest.



In fact,

if we know how and have strong determination, we

can get rich,

“WITHOUT SPENDING A SINGLE DIME.”



C h a p t e r I :H o w t o g e t r i c h t h r o u g h r e a l

e s t a t e w i t h o u t u s i n g m o n e y

Just working a full-time job may not be enough if we want to be one of “the rich set”.

Some people invest in a business or assets as shortcuts to

top up their money. They may invest in the stock market, gold,oil, mutual funds, bonds, derivatives or futures.

However, “real estate investment” is one option many

people consider because it seems to present lower risks and

creates more secure wealth than other investments.

While investing in real estate appears attractive, there arefew new investors choosing this path. The salary man views

real estate as something he can only dream about because hemistakenly believes it requires a vast amount of money to

invest in real estate.

In fact, investing in real estate doesn’t have to cost

anything. It is actually the investment you should start assoon as possible to begin to build your personal wealth.

1. Without Spending Any Money

Indeed, you can get rich by investing in real estate withoutspending anything! Shopaholic women will have the edge overmen in this area. But, guys don’t have to feel discouraged

because the shopaholic nature also dwells in men. While your



shopping interests may differ from the women’s and you spendless time shopping. When you apply this behavior to real estate

investment, some adjustments are thus needed, and we willtalk about the similarities and differences between real estate

buying and shopping in detail later.

First and foremost, if we would like to get rich through

real estate investment, we need to eliminate all concerns

about capital. The belief of seeking capital before looking for

real estate is actually a serious misunderstanding.

Such thinking must be changed. “We need to study a real

estate investment first and then we can make money”.Lack of sufficient knowledge about a real estate

investment will bar us from starting to invest. We may think

that we need to have money before studying an investment.But we forget that while waiting, our salary flows out of our

pockets because of our daily expenses and monthly expenses,which reduces the money we are planning to use as capital for

investment.Ultimately, we won’t be able to start to invest nor ever

learn about or understand real estate investment!!

The process of learning real estate investment is not as

difficult as many people think. It is similar to other learning processes, which require daily training and consistent practice.

This will automatically generate a system of trial and error.

The learning process is in our veins — men and women alike.As earlier mentioned, it can be likened to shopping behavior

— ladies buy handbags, clothes and high-heels while menshop for neckties, shoes, sport ware and stereos. Even

merchants shop for goods to resell.

The concept for real estate shopping is similar to shopping

for other products. We have to walk around for price

comparison, focusing on the best deal – the lowest price withthe best quality. This takes time and experience.



The next question is how to pick a good real estate deal. The answer is the same as how a woman knows that a handbag

is worth the money she pays.

How do men know how much their stereos are worth?How do merchants figure out that a product will sell or

have good quality? How do travelers know which hotel is

worth the price?

A technique for choosing goods or real estate is to go and

see as many properties as possible and practice posingquestions, analyzing and comparing for the best ones.

Likewise, ladies know well what cosmetics to choose andwhich brands are the best as well as the malls offering the best

bargains. Housewives know when to buy consumer goods in

large quantity. In fact, such information is not money-makingknowledge, because the more we know, the more we tend to

spend on buying.

With the same period and budget, your search to

acquire knowledge on real estate buying will transformyour money-losing shopping into money-making shopping.

Basically, you use the same thinking and practices to buy

real estate as you use to buy clothes, cosmetics, consumer

goods or stereos. Instead of learning to make a small profit,you shift to learn how to make a lot of money. Instead of

hoarding discounted consumer products, you start gathering

sources to buy real estate from the government’s LegalExecution Department or banks with non-performing assets

(NPA) as well as analyze the best periods to purchase realestate during economic turndowns. These are all examples of

how the rich think.

With this same concept, you can change from losing

money to gaining it. We have actually had these skills since

we were born.

Instead of spending your holidays in department stores,

better to plan to go out and explore the real estate market

during your free time. You may begin looking at interesting



or that we have insufficient funds. This is because we do notknow the property ourselves and so don’t dare to make the

investment.

“Money is not a problem.

What we actually know about what to do

is the most important thing.”

From the experience we gain comparing properties, wewill learn to evaluate prices to determine whether they are

cheap or expensive or what should be a reasonable price. Oncewe can compare the pros and cons for each, money will no

longer be a big issue.

The experiences and skills we have gained from selectinghandbags, clothes, cars or stereos boost our confidence,

making us feel we know how to select good-quality and high-value products. It’s the same thing for real estate, making the

right selections also require experience. This confidence help

us determine where and how to find the sources forinvestment.

Although we have insufficient investment capital and

banks won’t give us a loan without collateral, we can still

propose high potential real estate investments to friends,bosses or wealthy investors. In return, we may ask for achance to be one of the shareholders in the real estate or earn a

commission for our efforts and advice. From this start, we will

earn money which we can hold for future investment.

I believe people who gain profit from real estate we

recommended will certainly get back to us to look for more potential property investments. If we are very good at selecting

profitable real estate, we use take these opportunities to earn

more money as well as squash our fear that we can’t makemoney.



“Don’t forget that I am not telling you to make the

investment today. I’m telling you to start studying and

changing by going out to survey real estate opportunities.”

One of the keys to success is to look for real estate is notgold, but glitter. It is useless to focus on those in golden

locations that everyone knows about such as properties on popular thoroughfares like Sukhumvit and Silom and Sathorn

in Bangkok.

However, we need to sharpen our skills so we can pointout potential investments outside the golden locations. For

example, a plot of land is located on a small lane, but we cancreate added value by building a high-rise that will be easily

noticed from the main road. We can also build a condominium

that will generate more profit than others in a nearby area, ortake over an old building that will increase in value when it is

renovated.

Don’t forget that the more we compare, the more we

know. Still, no one can tell us when we should stop making thecomparisons; that decision we must make ourselves.

According to Donald Trump, he surveyed about 100

different properties and then proposed a short list of 10 before

he purchased his very first piece of property. Since then, he hasmade quicker decisions when buying real estate, thanks to the

knowledge and experience he has gained over the years.

“The important thing is conducting enough surveys.”

Many millionaires have invested in real estate because of

the trend. But they survey only a few properties before making

their decision. This is not right. They should take a lot of time

to conduct surveys and make comparisons.

When the economy is growing, all assets seem good. But

when the economy slows down, it is time to distinguish who

will gain and who will lose. Bad properties will immediatelylose their competitiveness in such a situation.



Now you’ll see that if you follow every step of the

processes I recommend, you won’t need any money at all!

We can spend the same amount of time and money we

usually do on weekends surveying real estate. We can turn thisinto another fun activity with friends and families.

It is not necessary to make real estate surveys serious.

We can treat it with pleasure, just like shopping for other

beautiful things. The difference is we shop for real estate, a

home, condominium or property that will make us money.

This way we don’t waste money, and they are beautiful

things as well.When we see more and know more, we will understand

more and be able to select the investment opportunities to

make us rich. In the beginning, we may not make anything, butthat doesn’t mean we should give up. We will develop our

skills in analysis and comparison if we work at it consistently.

At first, we might find only expensive real estate deals,

which are not worth the investment, but this doesn’t mean thatwe gain nothing from them. At least, we have improved ourability to evaluate the value of apartment buildings we have

surveyed. If we never experience those rip-off properties, how

can we evaluate the value of other properties and know if theyare good investments or not?

Every time that we go to survey, we should systematically

take notes of the pros and cons of each of the apartments,condominiums and land we visit, good and bad, expensive and

not. This will help us better understand what to look for andrealize when we have found an attractive investment.

I just want you to remember that you have to make it fun because you will never know when you will find the right

property to buy or introduce to other people. It could take six

months or a year or even longer.

If you aren’t enjoying yourself, you may give up before

achieving your goal because you keep telling yourself it’s



all too tough and no one is interested in buying any

property.

Once we enjoy it and feel positively, thinking there is

nothing to lose or possibly gain, then we will finally beready to succeed.

Even if we are patient and determined, our abilities will belimited if we don’t enjoy what we are doing. If, on the other

hand, we are fascinated by something, we can focus all our

energy on it for our entire life, even though it wastes ourmoney and time, like soccer, computer games, clothes and

brand named products. We will be willing to learn anything welike. And imagine how great it is if the thing we like can make

us money!

During your investigations, you may not find the right property or you may find the right one but not have enough

money to invest. Still, these efforts give you the chance toenhance your knowledge about real estate. It also is an

effective way to increase your personal value as you now havemore topics to discuss with friends just like the rich do.Knowledge is always a gain, never a loss.

A philosopher said,

“Nobody knows until they do.”

True knowledge can only be gained through doing. As we

survey real estate, we will start to gain more knowledge, and

once we decide to make an investment or purchase and thenstart to manage it, we will take our knowledge to another level.

Remember, what you think will remain an opinion, theoryor possibility if you don’t act. You’ll never know the truth

about your ideas, if you don’t make your move

This can be compared to the difference of “knowing the

path” and “walking on the path”. No matter how convenient



it feels to click on online maps to see the locations of roads andshops, no matter how detailed the map is, you will feel

completely different about the place once you go there andexperience it yourself. It’s the same for knowledge gained by

those who act and those who watch.

After reading this far, you might now have a number of

questions. I want you to stop thinking, stop questioning,

stop hesitating, stop doubting and go out and survey

property for the next 10 weeks. Are you ready? What youare thinking about right now is probably your opinions, not the

facts. All your questions will be answered once you go look at

different real estate projects and properties and gain someexperience.

Believe it or not…

If you close this book right now and start checking out real

estate consistently, it might take a few years, but you’ll get richwithout even turning the page for the next chapter of this book.

You can learn everything step by step just by starting to doit. Begin by comparing different properties before making a purchase decision. After this, you will begin to learn how to

manage your investment and probably gain some profit. When

you are confronted by a problem, you will learn from figuringout how to solve it. If you lose money, you will learn how to

avoid this the next time. This is similar to how people lived

and learned in the past. They did not get higher education because they had to join and help their family’s business grow.

Some would then set up their own business and make moremoney than those who earned a doctorate and knew about

theory but lacked hands-on experience.

Certainly, this book is very useful and helps you save time.

But I am not going to elaborate in detail because this would

probably make you miss this book’s main objective: to make

you promise yourself that you will go out to survey real

estate as soon as you have finished this book. It’s important

that you do this regularly, even though you don’t know

anything yet. You will learn the more you do!



The most important thing that you must understand is

this: real knowledge comes from experience, which can

only be generated through taking action.

Knowledge on paper is only a possibility or information

that must be applied at different places and times to prove

whether a theory is correct.

For those who never take action, they will never really

know.

It is exactly the same when you never go out to look forinvestment opportunities or think it requires much money

to invest.

This is also true if you think something is too hard to

achieve or has too high a risk.

That is the way people who never do enough surveys

and investigations think, and it just isn’t true.

Therefore, the right method is…!!!

“You need to go to look at properties as often as you

can to increase your knowledge about the real estate before

making any decision. Don’t think about any property

before you’ve seen it. Until you go look at it, you won’t

have any real knowledge. So, how can you make an

informed decision?” Therefore, if you seek pleasure, dream of riches, want

more security, are bored with your job, earn little money, want

to travel, or have enough money to help the poor,

The only thing that you have to do at this moment is …



“Stop”

Stop thinking about money!

Stop hesitating!

Stop doubting.

Stop thinking about everything!

And go to check some property.

Whenever you read this book, you can adapt these

principles.

They don’t depend on any economic scenario at any

particular period. When the economy spirals upwards, it

creates both pros and cons – just like an economic

downturn.

Remember, the economic cycle provides the impetus we

need to adapt our strategy to maximize profit.

When the economy is growing:

The positive side is that prices rise rapidly. This is the

time to look for assets that generate steady income, provide

high returns on investment and consistently increase invalue. The key is to act quickly and have the courage to

make decisions based on your accumulated knowledge and

experience.

The negative side is that we may encounter falling

prices or a sudden drop in demand. So, you have to be

careful. Do not get greedy and do not buy, betting that the

value will increase.

It would be better to focus on your cash flow or the asset’s potential to make money. You should be prepared to weather a



loss should the price go down if you believe that the asset canstill generate money for you in the future.

Meanwhile, a good point to remember when the economy

is in a downturn is that we can buy a good asset at a lower price as well as have greater bargaining power. Lower design

and construction costs enhance cost competitiveness. If a

property is of better quality but cheaper than others on the

market, consumers will consider this property first, even if

there is oversupply in the market. When the market is in anupturn, you can still make a lofty profit from the increase in an

asset’s value. However, the flip side is that when the economy

has yet to recover, there may only be a few potential customerswith low purchasing power, so the asset’s value may remain

the same, increase only slightly or even decrease.

To be able to adapt to every aspect of the economic

scenario, you have to start visiting and surveying real estateregularly.

Another (un)secret is that you should regularly surveyapartment buildings or hotels, rather than condominiums orhouses for rental, for the following reasons:

1. Houses and condominiums are what entrepreneurs

develop to sell to people like us and gain profits from us, whileapartment buildings and hotels are built to do business.

Therefore, when we buy apartment buildings or hotels, it

means that we are buying a business. If we buy houses,commercial buildings or condominiums, we are buying the

“goods” that businessmen produce to sell to us. Although wecan make money from rental fees, houses and condominiums

usually make less money than apartment buildings or hotels.

2. Investing in houses, commercial buildings or

condominiums is all too easy. Anybody with enough money

can invest because it doesn’t require any specific skills orknowledge. Therefore, it is likely that you will face oversupply

(i.e. there are more sellers than buyers) and plenty of

competitors.



One basic principle is that we should invest in

businesses that are not too easy or too difficult to run, so

that we can screen out the competitors. Thus, apartment

buildings and hotels are the ideal choice for investment.

The fact that the hotel business requires more management

skills than dormitories and apartment buildings reduces thenumber of competitors and provides better business

opportunities for us. Not everyone can do it.

As many people know, when the economy goes up, it’seasier to find tenants or clients for most real estate, be it

houses, condominiums, apartment buildings or hotels. Butwhen the economy goes down, demand for apartment

buildings and hotels may drop a little, but few fall into great

difficulty. However, those people who buy houses andcondominiums as an investment and are not developers will

face difficulties finding tenants or earning a sufficient return.

3. In this world, only amateurs think they can get rich

from buying houses or condominiums for lease. Those who getrich from real estate usually invest in apartment buildings orhotels, or become real estate developers by using the

techniques of “buy-renovate-sell” any type of real estate or

“buy-renovate-lease” offices, department stores, apartment buildings or hotels.

4. Even if you do not have a million dollars, it doesn’t

matter whether you survey a property worth 3 million, 10million, 50 million or 100 million baht, because you cannot

afford it anyway. But when you survey a massive project orhigh priced property that offers high potential, like an

apartment building or hotel, this can provide you with a goodopportunity to strike a deal with wealthy businessmen. Most of

them usually think reasonably. Even if they cannot put their

hands on enough money instantly, they know how to find

financial sources if they consider the investment worth theirwhile. If you approach a potential partner about a single house

or condominium, you won’t capture the interest of large-scaleinvestors. So you may have to turn to amateur investors who



have suitable funds. Just remember that they may decide toinvest because it’s the latest trend or based on their own

emotions and desires. These people can change their mindseasily and won’t buy it even though it’s worth the price, if

there is a downturn in economic activity or sometimes, even,

they might be in a bad mood.

Nevertheless, when you begin your investment business, it

can make sense to invest in houses or condominiums. But I

would like you to consider this a first step that will lead to bigger and possibly more complicated but also more lucrative

investments such as dormitories or apartment buildings.

“Not investing can be scarier than investing

because in the future,

no one will be able to avoid investing

if they want a more comfortable life.”



C h a p t e r I I :H o w C a n w e G e t R i c h T h r o u g h

R e a l E s t a t e ?

Back when we were in school, we would often get good

grades in subjects we prepared for. Similarly, as adults,

when we talk to a job interviewer, make a presentation to

clients or have a meeting with the boss, we have to prepare

in order to impress them.

Getting rich through real estate is much easier than takingexams in school because there is less time pressure, no

examiner, no definite strategy, no shortcuts and no quotes or

formulas to recite.

We are the ones, ourselves, who determine everything

when making a real estate investment, including when to startand end our investment. Just follow these tried and tested

guidelines that have proven successful in getting rich.

Anybody can get rich easily!!

Change

the

action.



1. Turn Stocks into Buildings

In bookstores today, we can find a number of books on

finance and investment, especially those about investing in

stock markets. This reflects the popularity of stock marketinvestment.

The main reasons that most people are interested in

stock investment, despite lots of risks, are due to

impatience and a misunderstanding that …

a)

The Stock market can yield from 10% to 100%returns in the short term, which is much higher

than other investments.

b)

They have insufficient capital, and hence don’thave many alternatives. They don’t understand

that investment in real estate is not only for therich.

c)

They want a comfortable life but don’t want towork hard.

d) They like to speculate and gamble.

e)

They think it’s easy.

f) They have nothing else to do.

In fact, because of the risks, success in stock investment ishard to attain when compared to investing in real estate or

another form of business because…

Firstly, if you count the number of those who get rich fromthe stock market all over the world, there are only a few. But

there are a lot of people who can attribute their success and

wealth to real estate investment.

Additionally, stock market investment is related to

emotion as the saying goes, “When emotion comes,



intelligence takes off.” Therefore, it is easy for us to make thewrong decisions. When we are trying to win in a market, we

can become very emotional. That means we try to do

unnecessarily difficult things.

Besides, the market is not driven by logic, information or

the current situation. For example, the price of a fundamentallygood stock may go up or down. It may drop when everything

is going right. This is because the stock market is imbued with

high speculation and high liquidity, so a share price can easilyfluctuate and not reasonably conform to the situation. Even

though the price and the fundamental factors are moving in the

same direction, we cannot always tell how long we have towait before we act.

This is why we have often seen successful businessmen orhighly-educated people take a loss in the stock market because

it is neither logical nor straightforward like real business.

I would like to suggest that those of you who are investing

in the stock market try investing in real estate. You onlychange the news and information you have been monitoringfor the stock investment to the real estate market; then, you

will get rich much more easily.

If it was easy to forecast and profit from the stock market,nobody would work hard. Those who have established a

company or a factory would probably have changed course to

the “simpler” route of generating money from stock marketinvestment instead.

The belief that we can generate wealth from stocks and donot have to work hard, to do so does not match the basic rule

of thumb or rules of capitalism - namely:

“Easy money does not exist in this world.”

Therefore, the belief that you can easily win and profit

from the stock market contrasts with the facts.



If it was easy for most of us to forecast the direction ofstock prices and the market cycle, knowing when stock or gold

prices are going up or down, then we would all becomewealthy by analyzing basic information and related factors. So,

how come we can’t find such easy money?

If we look at it from another angle, this would mean thatonly a minority of stock investors would lose money to the

majority of investors in the long term. Do you think that makes

sense? The value of purchasing is always equal to the value ofselling. When someone makes a profit, others make an equal

loss. No matter how much the value of the stock increases, it is

the minority, not the majority, who make a profit. Which ofthese scenarios is more likely in your opinion?

By following an incorrect principle, you cannot find the

right answer. It may sometimes give the correct one, but if

you follow the wrong principle over and over again, in the

long term, you will find that the wrong principle always

leads to the wrong answer. (The same also applies in

reverse for the right principle).

If you invest in stocks through short term trading by

predicting trading cycles and always make a profit, you cannot

say that you will keep compounding that profit over the longterm. In fact, if you continue to invest by following this

principle, you will eventually lose much more than you havegained.

Have we still seen people get rich from stock markets

through short term trading and predicting trading cycles?

However, we only know about those who get rich from

doing business and those who followed the same patterns as

Warren Buffett.

If you would like to get rich from playing the stock

market, it just might be possible. This implies that you wanteasy money without working hard. However, it can only

happen through “special” or “extraordinary” methods. I have

laid out these tactics in my book, “Beat Stock Market with

the Interest System Theory” or you can learn from Warren

get rich through real estate without money

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