PART II CHAPTER 9
Be The Bank... Not The Banker have focused on the "BE" portion of the formula "BE-DO-HAVE" because without the proper mind-set and attitude, you cannot be prepared for the great economic changes that are facing us today. By "being" someone with the skills and mind-set of the right side of the Quadrant, you will be prepared to recognize opportunities that arise from these changes and be prepared to "DO" what will result in your "HAVING" financial success. I remember a phone call I received from my rich dad in late 1986: "Are you in the real estate market or the stock market?" he asked. "Neither," 1 replied. "Everything I have is invested in building my business." "Good," he said. "Stay out of all markets. Keep building your business. Something big is about to happen." That year, the U.S. Congress passed the Tax Reform Act of 1986. In a swift 43 days, Congress took away many of the tax loopholes that people counted on to shelter their income. For people who were using those "passive losses" from their income property as tax deductions, they suddenly still had their losses, but the government had taken away the tax deduction. All across America, real estate prices began to plunge. Property prices began to slide, in some cases as much as a 70 percent. Suddenly, properties were worth far less than the amount of their
I
155
