An associate of mine told me his vision of wanting to help people generate a secondary source of ‘active’ income through FOREX trading. He has been researching and putting his whole head into it for the past few years. A young man with a passion I would call him; he has been making an active income consistently through FOREX trading. His strategies are profound and definitely practical for PMEBs(Professionals, Managers, Executives and Business people).

When I started looking at property, I came across many people who ‘traded’ properties for a profit. What do I mean? These ‘traders’ buy low and sell high. In some circumstances, they buy high and try to sell higher.

It’s common for investors to say that ‘timing is very important’ in the entry to property market. While I never attempt to refute that saying, it also goes to show the mentality of these investors are no more than trying to take profit when the market rises and sell for a tidy sum.

I explained to my associate how many property investors adopt the mindset of ‘traders’ when it comes to property investment and if they are caught out in the wrong end of the cycle, they often have very little way out but to sell for a loss(if they cannot hold). These property ‘traders’ then blame the vehicle – properties, as the culprit for their downfall.

One of my best property mentors, Zak Thaker said, ‘you can flip, trade, buy and sell properties once you have a base’. There is a keyword there - BASE.

I asked him what he meant by that. He explained to me the foundation of successful investors is to have a base of accumulated assets and equity in them. If you uplift equity within this solid foundation to acquire more properties, whether to ‘trade’ or invest for the long term, you find yourself better off than others who plainly just ‘trade’.

Makes a lot of sense to me. My associate’s idea is for individuals to make more than decent profits from a secondary active income source and channel part of that income to acquiring passive income vehicles like properties. So on one hand, you can continue to trade while on the other hand, you start building your asset base.

It cannot sound more logical to me. Folks, have you laid the foundation for your base?