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SUPER MONEY MIRACLE

March 25, 2016 by  
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Ever wonder why many smart, hard working people end up making only $40,000, $50,000 or $60,000 a year while others who don’t seem to be any smarter or work any harder, make millions and even billions?  Years ago when I was advertising my first book, How to Wake Up the Financial Genius Inside You, I used as a tag line, “Millionaires are not 100 times smarter than you, they just know the wealth formula.” So, if you are making $50,000 dollars a year, that very rich person, who is no smarter and is not working any harder than you, could be making $5 million.

On last week’s blog, I just touched on the basics of this formula. So if you read it, you may remember that I told you if you go out and buy a property that needs fixing up with a 20% down payment, putting another 5% into the fix up, you could improve the value of that property by 15%. That 15% would equal a 60% return on your actual invested dollars. But just how does that happen?

The million-dollar miracle part of that simple example, which I and others have done may times over, is a matter of leverage. You see, you leveraged your 25% (your 20% down plus that 5% to fix the place up) which allowed you to borrow 75% of the money so you could acquire the property. But your return is on the total value of the house. In other words the 15% increase in value of the property would equal a 60% return on your down plus fix up cost. Then by doing basically the same thing again on another property, you would be doing what is known as ‘compounding your return’.

Now here is the shocking and exciting part of this thing called compounding. Are you sitting down? If you keep getting a leveraged return of 60% on your investments, you can start with just $4,000 and build that into $48 million dollars in just 20 years! Now that’s what I believe is a super money miracle.

It really is that simple. Mind you, I didn’t say easy, I said “simple”. You really have to work your buns off to first find the deals and then fix them up to a point that increases their value. I’ve made a 60% return on many, many properties. I have also received thousands of letters, emails and phone calls from people who have told me that by following what I have been doing for years, they have seen, not just 60% returns, but even 100%, 200% and more.

However, you will no doubt find, as I did, that it usually is easier to get those fat returns on smaller properties.  As you move into larger and larger properties it does become more difficult but it is not impossible to get high returns on your dollar there either. I had one $2 million deal that made me more than a 100% return and even a new $27 million deal that returned more that 60% on my invested dollar.

I hope that this kind of huge potential will motivate you to keep working on deals, even the small ones you’ll have in the beginning. Remember those baby steps are necessary and very important. They show you what you can do. Those huge numbers I spoke of don’t happen overnight and that can be discouraging. Just focus on your success and build on it as you go and just like compounded money, your compounded efforts will also build into huge returns for you!

Control Your Wealth

March 18, 2016 by  
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Last week I ended my blog by talking about the huge importance of saving a minimum of 10% of your income as the first step to achieving total financial freedom and making that savings plan an absolute habit so you do it automatically every time.

But now what to do with that money? Where do you invest it for the best possible return with a reasonable low risk?

One rule that I’ve kept for life in investing is to never turn over total control of my money to someone else. As a stockbroker many years ago, I played in the market and usually lost money or just broke even. Part of the reason was that not only did I have no say or control over the company I bought into but I also had absolutely no control over the stock market and the direction it went.

But then I met a guy who became my wonderful and brilliant coach, Larry Rosenberg. He convinced me that improved rental real estate was the safest and most consistent way to build a fortune. Why? Because if you buy right and buy a property that needs improvement, you can reap huge returns and much of what happens with your investment is in your control.

First of all, you have the power of leverage you can apply when you have the right assets. In other words, if you fix up a property and raise its value by, say, 15% then that 15% improvement in value can turn your investment into a fat 60% on your money! That huge return is based on your choices. In this case, you would put a 20% down payment on it and keep fix up costs at about 5%. These are your decisions to make and therefore you have some control over how well you make out on the investment.

Even today, after 40 years of experience, I still say the best investment that allows you the most control, especially in today’s market with these very low interest rates, is real estate. I started with a small house on the wrong side of town and after I fixed if it didn’t sell right away I usually could rent it out so I had a tenant whose rent I was able to set so that it was paying off the mortgage, usually with a little left over for me. Then I moved on to larger and larger properties which I was able to work pretty much the same way and I still use this strategy today.

The other thing I do to keep control besides investing in the right property and making smart decisions to keep money flowing in, is to be careful with how I set up any partnerships. When I do deals and have a partner or two they always have their name on the deed showing the percentage interest they have in the property with everything spelled out clearly. If all investors insisted on doing it this way, it certainly would cut down dramatically on all the scams and Ponzi schemes. But it also means all the partners know what to expect and there are no out of control surprises later on.

So if you are smart and want to make those big bucks you’ll get out there, take and keep control of your investments, and keep focused on the great power of compounding and leveraging. Next week we’ll go into those subjects a bit more to keep you focused on your goal!

 

Make America and You Greater

March 11, 2016 by  
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I think most of us are getting pretty feed up and bored with politics lately.  I mean every time you turn around you see or hear more news about the race for the White House and, of course, the face you see most often is that of Donald Trump.  I don’t know about you but I’ve had enough of that big bully, loud-mouthed Trump to last a life-time.  This know-it-all thinks he’s the smartest man in the world but his campaign slogan is “Make America Great Again”. Every time I see that baseball cap with those words on it, I think, “Wow … when did America stop being great?”

I’ve traveled the world, visiting 84 different countries as well as living two years in the middle east and two years in England and I can say, without hesitation, that we have a great country and it’s constantly getting greater. I fear that might not hold true if Trump became president, however.

Ours truly is a land of great freedom and opportunity where you can start off being dirt poor and still become a millionaire. It happened in the 1930’s and in the 1970’s and it’s still happening today. So how does a person take advantage of our freedom’s and opportunities?

Continuing on last week’s post about the power of the brain and how we can program and teach our brain with enough repetition to act automatically without conscious thought, here’s the beginning key to achieving financial greatness in our great country. Step one is to start training your brain to calculate out at least 10% of every single dollar you earn and then you set it aside and never spend it and I mean NEVER. This is investment money, not spending money. So just keep doing that over and over again until it is such an automatic habit that you don’t even have to consciously think about it.

If you have followed me very long you know what comes next.  You take those savings after months or years and wisely invest them.  And that, my friends, is the beginning of a sure fire way to become wealthy in one of the greatest countries in the world, if not the greatest.

Next week I’ll lay out the best investments to make in today’s economy and the way to make those investments. You get started on the savings part and I’ll get you prepared for investing in the great USA.

 

The Brain and Robot Tennis

March 4, 2016 by  
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Sometime ago I read a book about The Secret Lives of the Brain which was actually the subtitle of the great book entitled Incognito by David Eagleman. The part of the book that really grabbed my attention was what he said about the part of the brain that you can teach exactly how to hit a tennis ball almost perfectly every time without even thinking about it.

Being an avid tennis fan and sometimes tournament player myself, and with my own experience pretty much backing up and proving what he was saying, he had my undivided attention. Many times while playing, I’ve surprised myself when I am running full speed to get to a tennis ball coming at me at 65 or 75 miles an hour, then to arrive at the exact right spot and hit the ball back to the place I was aiming. Wow, I’m thinking … how did I ever do that?

Eagleman, a neuroscientist, makes the case that tennis shots are made almost entirely without using the conscious mind. Of course, to get to the point of great non-thinking tennis shots, anyone who wants to be that good needs to use the other part of the brain–the conscious part that is the part that thinks through what goals a person wants to achieve. So with the conscious brain a tennis champion wannabe sets the goals to fulfill their dream tennis performance.

The author of this book is not just talking about these two parts of the brain being used to be a great tennis player either. You can use both parts of the brain to become very good in many areas of our lives, whether it’s to become a great public speaker, great writer of books, making a fortune, or creating super health for yourself and others. It will work for whatever you really want to do and be.

But that’s just the first part, because after you use the conscious part of your mind to set your goals, you then need to practice and drill over and over again. If you do that for many, many hours over a good length of time you will begin to program your unconscious mind so eventually it will perform for you without your thinking about it. It will be automatic. It might take thousands of hours but studies have shown that anyone that spends 10,000 hours doing one thing they most likely will become one of the best in the world at that one thing.

Under the chapter subheading “The Robot that Won Wimbledon”, David Eagleman concludes that, “The competitors at Wimbledon are rapid, efficient machines that play tennis shockingly well. They can track a ball traveling ninety miles per hour, move toward it rapidly, and orient a small surface to intersect its trajectory. And these professional tennis players do almost none of this consciously. In exactly the same way that you read letters on a page or change lanes, they rely entirely on their unconscious machinery. They are, for all practical purposes, robots. Indeed, when Ilie Nastase lost the Wimbledon final in 1976, he sullenly said of his winning opponent, Bjorn Borg, ‘He’s a robot from outer space.’”

Today I would say the same thing about Roger Federer and Novak Djokovic. But remember folks these two parts of our brain can be used for many more things than tennis! Let’s all work on that.