That question can determine your future more than you would have ever thought. If it always has to look good to you before you act your finances probably will never look better. The one with the uncommon courage is the one who rises to the top. It is as true in real estate as it is in politics, and business. You must go against the trend to make the major returns that we all hear about, wonder about and never seem to find. This is most likely the best real estate market we have seen in 15 years to attempt to set yourself up for unbelievable success. Why do I say that? Everyone thinks real estate is finished and won't come back for years. That makes is "the perfect storm"!

You can approach real estate your way or mine, but the first step is definitely to make the approach. At this point the nay sayers are sharpening their pencils and looking up some words that can show you my ignorance, my position as a shill for the real estate industry and/or my indifference to something that is as clear as can be: an industry that is on its last legs and will never recover. We will see!

I am not going to cover the same old points except in this one list that should show you why real estate is not down and out, but forming a new base to to start another upward trend that we all will be talking about in a few years.

1. Weak dollar = foreign investment at a huge discount.

2. Population growth (net) = growing demand for housing.

3. Demographic changes = new growth opportunities in climate friendly areas.

4. Design changes = demand for new Eco-friendly houses.

With the above as a reality it is time to show you what few ever stop to think about in the field of real estate finance. There are four ways to make money in the real estate arena:

price appreciation, cash flow, tax savings and amortization. The industry has a myriad of loans to help accomplish these wealth building ideas, but the 30 year fixed loan is not the answer for all of them and I dare say, maybe not the answer for any of them.

The one thing I can say for sure is the insistence of a 30 year fixed can increase the risk when entering the real estate market at this time. Simply put, it is neither the lowest payment you can achieve nor the fastest way to pay off your mortgage. Both are important when you dive into troubled waters and are trying to make it through. If you can get past this point you have an excellent chance of changing your financial life, to a better one, forever.

When beginning this intrepid adventure it helps to have a plan. What are you trying to accomplish considering the above four ways to make money. Three of them can work as one goal, but not all four. Cash flow, classically, is reserved for an investment property and not an owner occupied one. But whether you choose one, two or three goals for yourself you must at least choose one. Continued...