"Experience: the most brutal of teachers. But you learn, my God do you learn"

"Experience:  the most brutal of teachers.  But you learn, my God do you learn"

                                                                                     -C.S Lewis

I'm sure you've heard of it.  It has grown in popularity especially in the last ten years. 

New age investment seminars love to preach it.  Robert Kiyosaki with his Rich Dad, Poor Dad books regularly speak of this:

"Leveraging other people's money." 

Basically, it's when we use investor's money or the bank's in hopes of gaining some future profit .  The best example I can think of is when we take on a mortgage to buy a house. We put down 15% to buy a $100,000 home and the bank provides for the difference ($85,000).  Of course, as we all very well know, we pay the bank interest.

But what if we use this concept into something intangible but as profitable and without paying a 6%/year interest.

"Leveraging other people's experiences."

But how do we learn from other people?  We take time to find and screen them and listen to them.  But believe me, it is worth it. 

If not for a God-sent, seventy two years old, charming and sometimes cranky man named Dan Wyatt I would have failed miserably in my investments back in 2006.

Dan graciously warned me about what was about to happen in the Reno real estate market.  He just didn't  tell me, he also showed me overwhelming evidence to back this up.

We all know what happened after 2006:  market tanked, hundreds of billions of dollars lost by millions of people.  Though I lost thousand of dollars I could have easily lost four times more--bankruptcy was just around the corner.

This is one of the main reasons why I started this blog.  We needed to learn from other people who has been there and done that.  For the truth is, none of us can be Peter Pan, there just isn't enough time for us to learn all the things to learn in this world.

So how do we start?

Here are some things that has worked for me:

• Ask around who has been successful in their real estate investments.  Check their history, ask for second opinions from other people.

• Be warned that they may not be as cordial as you might expect (at first).  I found out that most people who have a lot of knowledge to give don't necessarily are the most friendliest.  But once they sense that you really want to learn.  They would be more than happy to share their experiences.

• Don't just call them when you need advice; build a genuine friendship.  Send them cards on their birthdays.  Tell them how much you appreciate the time they are giving you.

• Find someone who does not have a conflict of interest with what you want to do.  Example: insurance people,real estate professionals, mortgage adviser etc..

• Don't expect to readily agree with what they have to say (at first).  With our generation bombarded with the latest fads, hype and fast food way of thinking it may take time to adjust to their way of thinking--usually marred by hard work and sacrifice. "Everybody wants to ride, nobody wants to drive."

• Don't be afraid to shoot for the starts.  If you admire someone who may be well-known and financially respected and lives in the same city--find a way to reach them.  Genuinely tell them that you want to learn from them.  Send them a card with fruits at their office (asking for one hour lunch).  It works.

And once you find them.  They will be a like a pot of gold. I still meet Dan on a regular basis and our friendship has grown much more than talking money.

I hope you find one too.