“Not very long,” answered the Mexican.

“But then, why didn’t you stay out longer and catch more?”asked the American.

The Mexican explained that his small catch was sufficient to meet his needs and those of his family.

The American asked, “But what do you do with the rest of your time?”

“I sleep late, fish a little, play with my children, and take a siesta with my wife. In the evenings, I go into the village to see my friends, have a few drinks, play the guitar, and sing a few songs . . I have a full life.

The American interrupted, “I have an MBA from Harvard and I can help you!, You should start by fishing longer every day. You can then sell the extra fish you catch. With the extra revenue, you can buy a bigger boat. With the extra money the larger boat will bring, you can buy a second one and a third one and so on until you have an entire fleet of trawlers. Instead of selling your fish to a middle man, you can negotiate directly with the processing plants and maybe even open your own plant. You can then leave this little village and move to Mexico City, Los Angeles, or even New York City! From there you can direct your huge enterprise.”

“How long would that take?” asked the Mexican.

“Twenty, perhaps twenty-five years,” replied the American.

“And after that?”

“Afterwards? That’s when it gets really interesting,” answered the American, laughing. “When your business gets really big, you can start selling stocks and make millions!”

“Millions? Really?” “And after that?”

“After that you’ll be able to retire, live in a tiny village near the coast, sleep late, play with your children, catch a few fish, take a siesta with your wife and spend your evenings drinking and enjoying your friends.”

The moral of the story ?

Know where you’re going in life…you may already be there!

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More to come!

More to come!

Issues that make investing in land so risky?

* The majority of raw land purchases generate no income during the period of ownership, thereby creating a negative cash flow situation due to the accrual of ongoing property taxes.
* Because land is fundamentally considered indestructible, there’s no depreciation allowed for federal income tax purposes.
* The municipality in which the land is located governs by zoning how the land can be used.
* Development of the land is also subject to environmental testing and regulations.
* Raw land is the most illiquid investment of all of real estate; which, as a whole, is considered to be an illiquid investment genre. It can take literally years to sell some land parcels, and others truly may not be marketable at any price.

With such negative factors why do people continue to buy land you might ask. The answer is simple, money.

In America and around the world, vast riches have been made in land for hundreds of years. Land can be purchased relatively cheap and with little or no effort double or triple It’s value. Foresight and knowledge play a very important role in successfully investing in land. And sometimes it’s all luck.. to be continued

Issues that make investing in land so risky?

* The majority of raw land purchases generate no income during the period of ownership, thereby creating a negative cash flow situation due to the accrual of ongoing property taxes.
* Because land is fundamentally considered indestructible, there’s no depreciation allowed for federal income tax purposes.
* The municipality in which the land is located governs by zoning how the land can be used.
* Development of the land is also subject to environmental testing and regulations.
* Raw land is the most illiquid investment of all of real estate; which, as a whole, is considered to be an illiquid investment genre. It can take literally years to sell some land parcels, and others truly may not be marketable at any price.

With such negative factors why do people continue to buy land you might ask. The answer is simple, money.

In America and around the world, vast riches have been made in land for hundreds of years. Land can be purchased relatively cheap and with little or no effort double or triple It’s value. Foresight and knowledge play a very important role in successfully investing in land. And sometimes it’s all luck.. to be continued