Category Archives: Questions and Answers

Another Update

It’s time for another update on the internet business. If you are one of the ones quietly watching along the sidelines, I have some new perspectives to share. Of course, everyone wants to know about the money and I’ll get to that. But there’s an element that may be more important than the quick cash, and it’s something that has proven itself to me this summer.

To me, the most important aspect of this “blogging business” (It’s really not a blogging business) is that all of the tools that are available, make it possible to take a person from “Internet Marketing Ignorance” (Like Me) to Internet Marketing Competence. (Like the “New Me”)

Let me explain.

Money moves around in Cyberspace……………. LOTS OF IT!

When you decide to join the little $25 blog business, you basically get a chance to dip your toes in the “Cyberspace Marketplace” and test the water. You receive enough tools and training to actually make some decent money……If, you decide to follow the training and do what you’re taught. Once there, you quickly realize that blogging is one tiny tool in a giant tool box full of internet marketing strategies.

If you decide to just “blog” your way to income, you can. It’s mostly what we have done. I have ONLY implemented free marketing strategies, (Minus a couple of web domains and hosting for a total of about $30 per year) I have chosen to do this for 2 reasons. One is that I’m still learning many of the advanced techniques and simply have not had time this summer to focus on them. The second is that it’s nice for others to know just what can be done with Free Marketing!

Transition to Income Statement

We have been doing this just short of 8 months and have made right at $8,000 through the marketing system itself.

I can only estimate the difference it’s made in our other businesses. I believe the principles I’ve learned and then applied to our resort business has probably produced about $4,000 in additional revenue this summer alone for those businesses. It’s income that I believe we would not have received without the training from the marketing modules.

Bringing me back to my main point.

Marketing as a Life Skill

I am completely convinced……COMPLETELY CONVINCED……That anyone who chooses to engage in internet commerce will see their future get brighter and brighter (at least from an income point of view) There is a cross roads where each of us have to make a decision. It’s the “Information age” cross roads. What do we do? I have chosen to make it a point to learn to do commerce in the future “Playing Field” rather than employ the obsolete strategies of the past.

You will make that choice as well, whether you believe it or not. Choosing to NOT ACT is a choice to become obsolete in the market. My peers in the resort market where I compete are experiencing this without even knowing why.

They don’t even know who their enemy is!

Their enemy is not me!

Their enemy is their ignorance of the tools I use.

Don’t get swallowed up by those who choose to employ the right tools for the world we now live in.

You can become enough of a trained expert in On-Line Marketing to stay ahead of the ignorant majority. (no disrespect intended) It’s just the truth. I have gone from knowing virtually nothing about internet marketing to actually being somewhat competent in 8 months time. I’m learning more every day and it’s paying off in cash and in dominating a small resort market. That’s a lot for 8 short months!

I am going to say this straight up. YOU OWE IT TO YOURSELF to commit 6 months to this. You can choose later to go back to the stone age if you want. This is your opportunity to get on the cutting edge and stay there!

 

HERE IS THE LINK TO SEE HOW TO START…………… SHOW ME MY FUTURE

By the way………..It will ask for your email. I’m the only one that will see it.

It doesn’t cost anything to watch the video, so you are not going to get “secretly charged” for something you don’t want.

It’s INFORMATION………….. If you don’t want INFORMATION, you will probably NEVER discover anything NEW!

 

People already wonder how we were somehow able to become millionaires with that “Scary Real Estate Infomercial Nonsense”

Well we did by learning something new and taking action

 

People are already wondering how we are making money with that “Scary On-line Marketing Nonsense”

SAME THING…..We are learning a new skill, taking action and its producing a growing stream of wealth!

 

HERE’s THE LINK ONE MORE TIME!    On-Line Marketing Program

Do yourself a favor. Invest a small amount in your future and give it your best shot!

The Most Basic Financial Rule

Most people think the most basic personal financial tool is a budget. Living by the rule of a budget has, at its core, the principle of containment of expenses to available income. This is certainly a sound financial tool. The issue I have is that when used as the primary tool in governing finances, it implies that the income is a fixed or nearly fixed figure and all expenses must be made to fit that income figure. This idea establishes a ceiling that we have to work under and that if you extend expenses beyond that income ceiling its a bad thing. Typically, if we cannot bring expenses below that ceiling then we try to get them as low as possible. Then and only then do we try to figure out how to raise the income ceiling just enough to meet expenses. With most people this is a huge challenge because they have only developed income that is tied to the number of hours they have available to work. this means they must increase their number of working hours or increase the rate of income per hour. EITHER OF WHICH IS ONLY INCREMENTAL! There are only so many hours in a day and there’s only so many dollars an employer is willing to pay. Thus establishing the “income ceiling” which governs a budget.

If that works for you then good for you. To me, my dreams and goals don’t fit that paradigm. I spent 25 working years figuring out that its just too slow of a process. I either needed to shrink my plans or find a new plan. What I discovered was the concept of “Multiple Streams of Income”. By opening my mind up to the possiblitiy of multiple streams of income I soon found out that it didn’t mean working multiple jobs. It meant finding sources of income that did not depend on my limited hours or limited talent or skills. It meant finding sources of income that were generated in spite of my limited hours, talent or skills. To me this is the true “Most Basic Financial Rule”. The one of learning to create passive forms of income. 

Where a budget creates a ceiling to work under, creating passive income implies that there is potentially no ceiling. The only ceiling is the one you establish yourself limited only by how much income you wish to create.

To create unlimited sources of passive income requires time and energy. But…. it mainly only requires it for a short time to establish the source and then a small amount of time and energy to maintain the income. Each new source of income increases the “income” column of your budget and raises the budget “income ceiling”. Then you move on to create the next income source which once again increases your income ceiling.

You will find yourself multiplying your time and abilities rather than adding to them incrementally by working more hours or getting  65 cent per hour pay raises.

Developing passive sources of income should be your main financial tool. Monitoring them through your budget is a good secondary tool.

The Hard Assets

Most of my posts involve encouraging and challenging people to pursue their dreams. I figure its time to do a little “Nuts and Bolts” of how we operate. So I’m going to show a few of the assets that make our pursuit of the dream possible. If you know us, you know we have adopted the R. Kiyosaki principle of assets. “Assets put money in your pocket whether you work or not. Liabilities take money out of your pocket whether you work or not.” We provide housing for people. Our goal is to make our places something people can feel at home in.  Some examples:

    

When we speak of our business, this is our product. It’s clean, nice, affordable housing. To the people who live there, its home. To us, the houses are business assets. Each and every asset we add increases passive income.

Why go to the trouble of posting this? Because as we continue to build the business, the pursuit of our dreams becomes more of a reality. We offer to help others develop this same stream of income for themselves which accomplishes 2 things. It helps them develop income that’s not restricted by the job market, education, skill levels or even the general economy. Second, the bigger the group of investors, the more impact we can have in securing more assets for everyone.

Owning real estate does not fulfill our sense of purpose. Owning real estate makes the fulfillment of our purpose possible.

If you’ve ever felt challenged by any of my posts, it’s for one reason, to encourage you to pursue your dream. If you haven’t found a financial vehicle to enable that, we should talk.

Creativity Rules!

So far, the stats say the most read story is the one on the no money deal. So if you liked that, you’ll love this. This story was one of the more creative deals we’ve ever done. Remember that traditional financing is only one of many ways to get the job done. One of the biggest obstacles is the down payment. (It amazes me that people want to invest but fall apart when something as insignificant as a down payment derails the whole dream of investing) If you want to be serious about anything in life, get used to the idea of committing time and resources to it!

Anyway, back to the deal. We were probably 2-3 years into our investing business and still trying to figure out how it all worked. This deal came to us at the end of the year and caught us in the middle of trying to scratch together enough cash to pay property taxes due at the end of December. The first principle is keep your eyes and ears open to opportunity. I was talking to a banker friend and he rolled his eyes slightly when I tried to make a clever comment about foreclosures. It took me by surprise a little and I asked him “What?” waiting for his response. He said he’d been dealing with a couple of them that were driving him crazy. As it turned out they had a property that was their property from hell. It wasn’t a bad property but everything they did with it seemed to backfire on them. It was a 2 bedroom house on an acreage that they had tried to sell and had one buyer after another fall through and they wanted it gone.

I went to look at it and then came back and told them I would make an offer if they would either accept it or reject it right on the spot. No “we’ll run it past the president or the board and get back to you”. My offer was about 40% of the appraisal. After about 5 minutes of negotiation they accepted an offer of about 45% of appraisal. Guess what, I didn’t have the money and worse yet I was still $1,500 short on having enough to pay the property taxes due in a month. BUT, the deal was too good. 30 days to make it work. ( I didn’t tell the bank I didn’t have the money. After all …… couple of weeks to work that out before closing)

I think this next part separates those who are serious from the rest. There was no way to get the remaining $1,500 for taxes and the $3,000 down payment needed by saving it up or earning it in that short of time. I went right out looking for a private investor willing to put up $5,000 at 9% interest for two years. I didn’t stop at one or two. I hit up every one I could think of. I found 3 willing to make the deal. The only problem was that none of them could get the money together before closing. I did get the loan contract together though so the money was committed, the timing just wasn’t working out.

When the closing day arrived, I took out a cash advance on a credit card to make the down payment. About a week later I got the $5,000 private “down payment” loan and repaid the credit card advance of $3,000, used another $1,500 of the $5,000 to finish paying off the property taxes. Then used the remaining $500 to get some Christmas presents for the family.

The rent we collected was enough to pay the mortgage, the private loan payments, taxes and insurance with about $30 left over each month. Once the down payment loan was paid off 2 years later, we had about $225 left over each month. This deal made a good investment the day we closed it and is still a productive investment today. Creativity Rules!

This deal worked so well for us that we began using it as a regular part of our investing program. Only now we offer 12% interest and will go as short as six months if needed or we will still do longer 2 or 3 year terms. We have deals like this going on nearly all of the time. The most important thing to get from this is that when you find your deal, you can find a way to get it done….. IF……you really want to bad enough.

 

One of My Favorite “No Money” Type Deals

The biggest question I get, without exception, is how do I buy an investment house if I have no money? Most people that ask that question are also skeptical when I tell them “It can be done!”  There are actually many ways to buy houses if you don’t have the money for the deal. YES, even in the current economy.

One of my favorites (and one of the easiest) is called a “Lease/Option”. Heres briefly how it works. There are wo parts of this contract. the first is a “Lease” the second is the “Purchase” (seems obvious).  The lease gets you into the property with essentially just a monthly payment. The option is a “purchase option” which locks price and terms for a specific period of time.

A 2 year lease/option for example locks your price and terms for 2 years. There is usually an “Option Fee” which could also be viewed as your down payment. It is completely negotiable and is usually somewhere between zero and 5% of the purchace price, although it could be higher. (It all depends on what you negotiate with the seller.)

SO, when you execute a lease/option deal, you give yourself guaranteed right to purchase at a specific price at some point in the future, you get into the deal with as little money as you can negotiate for the option fee. (I’ve been involved in no fee options, $500 fee options $995 fee options and so on.) You have as many years as your lease grants you to get other financing in place ( I shoot for 2 years with an option to extend it for another 2 years if necessary).

So you may ask, “If I pay even $500 in option fee, its not a no money deal!” The answer is; Secure the deal for no more than a typical rent deposit would be on the property. Get it marketed as quickly as you can and find your renter. The renters deposit and first month rent payment will cover your option fee and first month payment to your seller. You closed a deal with non of your money.

This works and works well. Obviously there are specifics in the contracts that need to be in place correctly, but the process is really very simple.

Any questions??????