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Step Two to Making Your Fortune: Making Property Offers

December 28, 2012 by  
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Last week I gave you the first step you need to take towards making your fortune. I hope you’ve started that first step or at least put in place a savings plan you can get started with in the New Year!

Now onto your next step …

Step 2. Go out and make offers on dozens of potential bargain properties.

Remember last week how I told you that timing is so very important? Well, this is what I mean–right now we are at a 50 year low when it comes to mortgage interest rates and as everyone knows home prices have dropped by 30% to 50%. At the same time rental vacancies have dropped which has pushed rental rates up. All that adds up to perfect timing and great opportunities.

This step is key to taking advantage of that “Partners Capital” concept that I hope you are seriously considering as part of your first step. The key to getting good partners to join you is to have a property “tied up” before you pitch the deal to them. Why? Because it’s so much easier to ask someone “Would you join me and take on a 50% (or 75%) interest in this property I found?” if you are giving specifics on the property as well. If you can start a pitch by saying “I’ve found a great 4 unit apartment building” or “I’ve have a beautiful little rental house under contract” as well as being able to tell them you can buy the property for 30% under it’s real value or that it’s all rented up and will show a fat positive cash flow from day one, it will be hard for them not to consider joining in your little venture.

Now back to making offers. How do you find those great deals?

Finding the great deals is largely a numbers games.  What I mean by that is if you make dozens and dozens of low ball offers you will eventually have some of them accepted. What I have done in most cases is to make those offers before I even take time to visit the property. This gives you the opportunity to write up the offer but make it “subject to” or conditional on your full inspection of the property and on the condition of the approval of your partner, even when you don’t have a partner yet. By using the “subject to” clause you are not obligating yourself and by using the internet and several brokers or agents it’s possible to make hundreds of offers without a huge expenditure of your time.

So get going on Step 2. Remember, you won’t be obligated to buy a property just because you’re making an offer but you do have to get out there and start looking and eventually there will be a property that you’ll want to jump on. It’s easier than you might think.

Make it your New Year’s resolution … take those first steps. Make this your year of success!

 

First Step to Making Your Fortune

December 21, 2012 by  
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Last week I promised that I would show you an almost fool proof path to your own financial fortune.  I said that I would lay out a step by step formula that you could follow, so that’s what I am going to do now.

First a few comments about timing as it is very important that you understand how your timing can impact your success. In Malcolm Gladwell’s book Outliers he talks about research done on young hockey players and how the timing of their birth dates made all the difference as to who went on to play at a professional level. This might sound a bit odd but if you read the book you’ll see why their birth dates were so important to their success. The timing issue is about being at the right place at the right time but it’s not just about luck. Right now the timing for someone who wants to make a fortune in the USA is near perfect but it won’t matter one bit if you don’t take advantage of it.

So let’s talk about step number 1, that first step you need to take on your way to building a fortune.

Step 1: Work on accumulating some beginning capital.

Okay, you may rightfully be thinking “Easier said than done!” But it’s not about easy; it’s about what is possible. Just about anyone can do this and there is more than one way to get the job done.

The slow but sure way is to consistently set aside at least 10% of your income. 20% is even better if you can do it. That’s the way I started and yes it took years before I had enough capital to begin to get started on amassing my fortune. However, if you want to jump start you growth of capital there is a way to dramatically speed up the process. It’s called “Partners Capital”.

In my book How to Wake Up the Financial Genius Inside You I tell the story of a guy that now has over a half a billion dollars of income producing property and he did it quickly because he did it primarily with “Partners Capital”. When he was in college he came across my book, followed the formulas I had outlined in it but also added the “Partners Capital” thing to the mix. With this combination he passed my success level by a huge margin, which of course makes me very proud.

If you choose to go the “partner” path there is a way to do it that can bring in not just one or two partners but multiple partners to join you. This is really is part of step number two which we will get to next week. But as part of your first step, I suggest you read my updated book now called  The Next Step to Waking up the Financial Genius Inside You. I very much want you to succeed so I am giving the first 50 people who email me a free copy of the book. Just cover the $5 cost of shipping to show you are serious about amassing your fortune and I’ll get the book right out to you. Email me at freebook@reincome.com  to get started.

The Path to Your Own Fortune

December 14, 2012 by  
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Recently I wrote about a young man in Australia whose father bought my Financial  (How to Wake Up the Financial Genius Inside You) years ago and now this 28 year old Australian is very excited to put the step by step financial formula that I outlined in the book to work for him and create his own fortune.  Of course I was very flattered and even more pleased to help someone since I had so many great people help me.  Plus, I am a huge believer in the concept of “Paying it Forward” or in other words—giving back!
Most of my blogs in the past have been about non-financial things and more about gaining and keeping a great “Passion For Living” but, in today’s slowly recovering  economy with many people out of work I think I just must address the very important subject of money.  We all need it and most people want more of it and since I’ve got a bunch of it and have huge experience and success in making tons of money, I really want to help!  And right now is the perfect time to go to work.
If you follow my financial formula you can create your own job and pay yourself very well—and yes you can do it from home.  That’s right … you can make a fortune starting with virtually nothing and do it primarily from your kitchen table and like I said, right now the timing couldn’t be better!
My first million dollars (in net worth) was made by the time I was 31 years old.  It took a little less than 4 years and the 2nd million took half that time and the 5th million took even less time.  No, I didn’t rob a bank and I didn’t come from a family with lots of money.  How did I do it?  I did it by using other people’s money (OPM) that is, bank money and partner money and I was pretty darn lucky because the window of opportunity was wide open just like it is for you right now!
On next week’s blog I will give some very specific things that you need to do if you want to forge ahead toward making your own fortune, large or small.  But first, do this for me … decide and be determined to make your fortune. Don’t question it or worry about how you’ll do it. Just get that idea well-planted in your mind then next week, I’ll give you the first steps you’ll need to put you on the path towards your dream.
If you are at the stage of your life where you’re very comfortable and not looking to make more money then you might want to pass this post and the ones to follow on to someone you know and want to help in the financial part of their lives. I’m sure they’ll love you forever for doing that.

Compounding Generosity

December 7, 2012 by  
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If you’ve read either of my books, How to wake up the-Financial Genius Inside You  or How to Ignite Your Passion for Living, you know how big I am on the concept of compounding. Compounding your investments has to do with keeping the income you make off your investment in the game so that you make new income off the previously created income allowing your revenue to grow exponentially. This concept can actually be applied to many things. If you saw the movie, Pay it Forward, you saw a good deed and the gratitude that came from it compounded. Instead of the one good act being the only good act and the thanks only being returned once, the idea was passed onto multiple people who passed the generosity onto several people each and soon the world was “paying it forward”.

This is the concept behind viral and word of mouth marketing. Tell someone or a group of people and encourage them to share their enthusiasm for your product or service and hopefully the news will continue to spread and grow your market.  We’ve all seen this happen with viral videos. A few people see it, pass it onto a group of friend who pass it onto a group of friends and next thing you know a million people have seen it!

When you give of yourself this season–be it money, time, knowledge or just a kind word–ask yourself if there is any way to compound the gesture. If you give money, it will compound if you give it to a charity that helps poor communities build commerce which will increase the community’s wealth and ability to financially sustain it. If you teach a young person a new skill, like how to invest (see the wonderful email I received and shared in the post last week), encourage them to share what they learned and ask those they teach to share it as well. Then your time with this one person will end up helping maybe dozens or hundreds of people or more.

Of course, if all you can do is give a few more people encouragement and a kind word, the good intentions and good cheer will usually get spread simply because you made someone feel better and that feeling tends to make others want to do the same. Generosity is self-perpetuating. And that, in a nutshell, is true compounding!