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The 100% Return Goal

January 18, 2019 by  
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As we begin a new year it’s a very good time to remember the basics, specifically the basics of financial independence through which you make and keep your own fortune.  It’s so easy to forget the basics, especially when we are all caught up in the details of our daily lives, even those details that are involved with building our wealth. For example, if you have a big problem with the plumbing at a rental property or the property taxes just got bumped up, it’s easy to focus on just that, but that can get you frustrated or make you kind of space out on your overall plan.

What you should not forget is that you have to continue to look at the big picture, looking for ways to take advantage of leverage whereby you could earn as much as 100% of your money due to compounding. I’ve certainly been there and done that. Even on the very property that is giving me fits, I many times have failed to step back and realize that my equity on that very property has already exceeded a 100% return on my money and I should be motivated and reminded to keep doing that.

There is a simple example that I used in my fist book, How to Wake Up the Financial Genius Inside You, where I showed how 1 single penny a day compounded at 100% a day turns into just over $339 million on the 35th day alone. Now I know there is no way you can compound your money at 100% per day, but it is possible to compound your money at 100% per year, especially in the first few years. The key to those huge numbers is using other people’s money (your leverage). So, maybe only 10, 20 or 30% of the price you pay is with your own money and then the rest is in a loan from the bank or the seller for the balance. It’s not only possible but many people are doing just that, every day, including myself and many people that I know and have helped.

I do know that finding beat up properties these days can be a bit more difficult, depending on where your market is, but things change and prices go up and down and you and I need to always be looking for those bargains, especially those properties that need fixing up, the ones I like to call “dirt bag properties”. Then, always remember that good ole leverage formula:
If your down payment is only 10%, and you improve the property enough to increase the value by 10% you have made a 100% return on your money. That formula is a little simplistic since it doesn’t take into account your expenses, but you can keep those pretty darn low if you do most of the work yourself. Just don’t let the goal of a 100% return on your investment scare you away because it seems too difficult. If you can get even part way there, say just a 30% return on your money per year on only $10,000, that fraction of the big goal will still add up to over $1,124,000 in just 18 years.

My big point here is that we must keep the big picture in mind and remember that those potential returns are there. If you do, it becomes easier to not be deterred or discouraged by those plumbing issues, property tax increases, or other relatively minor problems.  Keep your eye and your dreams focused on the big prize, because it is all together very possible to achieve that big goal.

My Words Out Loud

January 11, 2019 by  
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I have something very special for you today. Please take a listen to this pod cast I was on recently. There are a few things I share on it that I think can be very helpful to most people. I hope you like it and, if so, please share with others. Thank you so much for taking time to listen. This kind of thing is part of what I am doing to really try to be of help to others. Maybe it’s my age but I am all about sharing and helping these days!

 

The interviewer is Michelle Brown, a fellow Salt Lake City resident who teaches Life Story writing workshops. Get a nice warm beverage and sit back for a really interesting conversation. I hope you find it helpful and motivating!

 

The Time to Start is Now, Again

December 28, 2018 by  
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I hope you are all enjoying your holiday time with family and friends. I sure am! It has kept me very busy. So this week, let’s look back at some wise words that are always good to hear again. This is my post from way back in December of 2009, updated a touch for today:

This coming week is when you start getting asked, “What are you New Year’s resolutions?” Hopefully you have a detailed, clear, and measurable set of resolutions to answer that question with. If you’ve got that–fantastic. But now, when do you start on it? Without a start date and the first few actionable steps planned out, what chance do your dreams have of becoming real?

My first suggestion is that you make your start date TODAY. That’s right – start now. There is no reason in the world that you can’t take those first, maybe very small but necessary steps, towards your goals. If you haven’t clearly defined your goal, then that is your first step. If you know what your goal is but you haven’t written out the first steps, then your first actionable step is to make that list. And the first thing on that list should be the next step you’ll take, scheduled, if not for the same day, the very next day. You should always know what the next step is and exactly when you will take action on it. A lack of specific planning is the death knell for most dreams.

Now as I mention in my book, How to Ignite Your Passion for Living, you don’t need to know every details of every step you will need to take to reach your dreams. Much of what you’ll need to do will only become obvious as you progress. The important thing is to keep moving forward. There will be times that you will have to take two steps back and head in another direction but the fact that you are continuously working towards your goal guarantees you will reach it! The only way you’ll fail is if you stop working towards it.

So, whatever your New Year’s resolutions are, whatever goals and dreams you want to realize in 2019, don’t just talk about them, get them done. Start now, keep it going, and look forward to an amazing year.

The Eve of a New Year List

December 21, 2018 by  
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As you may have noticed, especially if you followed my advice from my blog post about the subject matter a couple months ago, it can be very helpful and profitable to set your daily goals the night before. Sometimes this list making even influences your dreams in a very positive way. You see, by setting your next day’s goals the night before, you will notice that, most of the time, you wake up thinking about those goals and are so much more likely to act on them and make them happen. Of course, I’m talking primarily about your small daily goals or tasks. These are usually the kind of things you expect to, or hope to, accomplish that day. However, this can be applied to bigger goals as well.

Being that we are so very close to the end of the year, it can be, and usually is, the best time to begin to set your big yearly goals for what you are going to do, achieve, accomplish, or earn, in the new year. It is certainly a good time to set your mind on the direction of your new year, and so why not write them down? You would be writing them down at the end of the year rather than at the end of the night but it’s the same kind of list – preparing you to get going on your goals once the new day – or new year – starts.

As you know, when you set those goals and write them down, your brain can, and usually does, take over and persuade, coax, cajole, and even force you to get to work to accomplish those objectives that you have set for yourself. So, take time in the next few days to thoroughly think through what you want 2019 to be for you and what you are going to get done. Include both financial and nonfinancial objectives like helping others, spending more time with family, world travel, etc. Do it! You won’t be sorry!

So, what are my personal goals for my 2019 year? Yes, I have some financial goals, but for me I would like to do more writing and get my autobiography done. Also, on my list is the giving of time and assistance as well as money. I have already started in on this list. Just in the last few weeks I’ve given my time at an elementary school, assisting a 3rd grade teacher and, oh wow, what a great feeling that gives me!

Physically, for my 75th year on this planet, I want to get in, and stay in, super physical shape. I want to look like, act like, and have the energy of a 35-year-old. I know that is not going to be easy, but I do believe it to be possible and, besides, the rewards that I have heard about through other people are fantastic. Those who do aim for super physical fitness, and stick with it, are shown to have a much longer life. And I have to tell you, I do love beating those much younger people on the tennis court, something which happened a lot in 2018 and I plan to repeat in the coming years!

Give Big, Live Big

December 14, 2018 by  
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Have you ever noticed that with my blog I am never really trying to sell you a product? Well, I guess I’m selling something, or more accurately I’m trying to give you something and hoping that you’ll snap it up. What I’m “selling” is information and ideas and, hopefully, inspiration and motivation. It’s not that I’m against selling stuff such as books, seminars and, oh yes, an old beat up piece of real estate that I’ve fixed up and increased the price – and value! – substantially. But at this point in my life, I feel so much more like giving rather than selling.  As I’ve said before, “If you want to live big, give big.” And, of course, we are now in that wonderful giving time of year and I think you will agree with me that it feels so very good to give.

What’s amazing about giving is that it can be somewhat selfish. That may sound odd but when I give a lot it makes me feel so very good inside so wanting to feel that good is kind of selfish but in a very positive way. I love to share with others what I’ve learned about making tons of money and expanding the possibilities and experiences of one’s life and most of us need help and assistance to lift up our lives to higher levels. I mean who among us has a perfect life and doesn’t need some motivation and help in at least in at least a couple parts of our lives? Every single person that I’ve ever met that have been super successful, whether it was with money matters, business, sports, family, or love, have been helped by someone. Sometimes it is in person through work, networking, friends, people met at clubs, etc. Sometimes it is more indirect such as the things we learn from someone through books, seminars, or even blogs. We all have others to thank and appreciate.

I certainly have lots of great books, friends, coaches, and leaders who have lifted so many parts of my life. At this juncture of my life, I feel stronger than ever and so it’s time for me to give back – it’s time to pay it forward. I want to be of great help to others and not just through my books and lectures. I love to give my time and money to charities. And no, I am not talking about those huge charities that pay their CEOs or presidents one or $2 million a year. Ugh. I’m pretty sure they could find an equally qualified person that is retired or semi-retired that would do the same job for free or a small salary. It’s just not going to be me.

So, in the spirit of the season, I’d like to challenge you, my readers, to give, give, give! And, yes, even though it feels a bit selfish, you will see, as I’m sure you have in the past, that when you give BIG, you really do begin to live BIG!

Secrets to Authentic Happiness

November 30, 2018 by  
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I think I came across the best reason for keeping a journal of your life or, as my good friend Rich Harvey used to call it, a reason for people to “Journal Their Journey”.

Just the other day I picked up one of my journals dated 10-26-2003 to 6-12-2004. My comments about what was going on in my life at that time quoted a great book that I had totally forgotten about entitled Authentic Happiness, by Martin E. P. Seligman, Ph.D.

In his book, Dr. Seligman talks about what real authentic happiness is and how we can capture it and keep it. Finding and enjoying real happiness is not done through seeking and finding pleasure and the same goes for seeking happiness through just staying busy – it just doesn’t work. Great and authentic happiness is experienced from gratification. So how do we become gratified?

Much of gratification comes from “production”.  When we produce something of great value to others and/or ourselves, we end up with a great feeling of satisfaction. Here are Dr. Seligman’s 8 common ingredients and psychological components of gratification:

  1. The task is challenging and requires skill.
  2. We have to concentrate.
  3. There are clear goals.
  4. We get immediate feedback.
  5. We have deep effortless involvement.
  6. There is a sense of control.
  7. Sense of self vanishes.
  8. Time seem to stop.

Dr. Seligman goes on to talk about depression in today’s world and how widespread it is. It has increased by a huge amount in the last 40 years and the average age of depressed people is much younger today. That certainly gives more credence to the importance of setting big, tough goals. If your mind is firmly set on your goals, it’s more likely that your mind will not be spending time reflecting how you feel in the moment. Plus, there is the big extra benefit that setting big goals does energize us both physically and mentally because of the chemicals released by our brains, as I talked about in last week’s blog.

But why is depression so high in wealthy and healthy countries? The author’ s theory is “that an ethos that builds unwarranted self-esteem, espouses victimology, and encourages rampant individualism has contributed to that epidemic.” Another reason is our huge reliance on shortcuts to happiness. Every nation builds more and more shortcuts to pleasure … TV, drugs, shopping, spectator sports and high sugar food and drink. Gaining these and many other things take very little effort on our part these days.

A major symptom of depression is self-absorption. The depressed person thinks about how he feels a great deal of the time – excessively so. When a depressed person detects sadness, he ruminates about it, projecting it into the future, this in turn increases his sadness in his life and across all his activities. In contrast, gratification is the absence of feeling sorry for yourself.

What we all need to do more of is realize that there are no shortcuts to the kind of fulfilling gratification we all crave, and realize we need to focus more and more on our goals, big tasks, and our production as well as giving up the constant self-worry and self-absorption. You may have noticed that really happy people, for the most part, spend the least amount of time home alone – they tend to have a rich and fulfilling social life, which really is the opposite of being self-absorbed.

Next week I’m going to talk more about this great thing called “Authentic Happiness” that Martin’s book gives us such super insight into as well as talking about how understanding where it comes from can bump up our happiness factor and enhance our lives.

 

Boosting the Brain with Thanks

November 23, 2018 by  
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Here’s a good question for you: Did you find yourself giving a lot of thanks yesterday? Or were you distracted by all the turkey, dressing and pumpkin pie? I hope you were taking time to give a ton of thanks! Isn’t that what we all should do on that day? After all it is called “Thanksgiving”! But that isn’t the only reason to give thanks this holiday season and throughout the year.

I recently heard on a broadcast that there is one big benefit we all can receive from saying “thanks” or “thank you”. Research into the human brain has shown that saying thank you, or otherwise giving verbal appreciation or gratitude, signals the brain to release the feel good, feel happy brain chemical dopamine.

Sometime ago, I wrote about how when a person smiles, even if it is a forced smile, the brain releases three of the four feel good brain chemicals – dopamine, serotonin, and endorphins (the forth brain chemical is oxytocin). These four chemicals, produced by the brain, not only make you feel more relaxed, they also could lower your blood pressure and your heart rate. Some studies even suggest that if they are released often enough, they can even help you live longer.

Another big benefit from giving thanks to others is that, if accompanied by a big sincere smile, your gesture will cause the other person to smile right back at you and then they are more likely to smile at the next person they encounter. So, you see, you are spreading some good stuff and helping others just by being thankful and letting other people know it.

And here’s another thing that has been shown to lift people’s spirits and that is simply to keep a journal in which you make note of the things you are thankful for. By writing down what, and who, you are grateful for, you are giving your brain more determination. This helps improve and lift your attention, enthusiasm and even lifts your energy.

So, during this holiday season, and beyond, we all need to focus on giving thanks, showing and expressing our gratitude, and, yes, even thinking about our positive qualities and of happy memories in order to boost our serotonin levels.

One last thought… don’t forget that laughing and social interaction both cause the brain to release those great feel good chemicals as well! So, this holiday season, be sure you have plenty of opportunities to boost those feel good chemicals and show your thanks and appreciation.

 

Challenge Yourself, Challenge Your Mind

November 9, 2018 by  
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Erik Weihenmayer on Everest

Imagine a blind man who made it all the way to the summit of Mt. Everest. Let me introduce you to Erik Weihenmayer, the first blind man to climb Everest. How do you think his satisfaction levels are? Wow, I’ll bet his intense satisfaction lasted a long time, maybe even a lifetime. But Erik did not only just climb Everest, as amazing as that accomplishment is just by itself, but he is one of just a handful of human beings, and the only blind man, to scale the world’s seven highest peaks on each of the seven continents. Talk about taking on a tough challenge! His so-called disability has completely taken a back seat to his passion to live his life well!

Erik’s award winning film, Farther Than the Eye Can See, was ranked in the top 20 adventure films of all time by Men’s Journal, and brought home first prize at 19 film festivals. It was also nominated for two Emmy’s. The film beautifully captures the emotion, humor, and drama of Erik’s historic ascent on Everest, as well as his three other remarkable “firsts” – he was one half of the first American father/son team to summit Everest, the oldest man to summit, and the most people from one team (19) to reach the top of Everest in a single day!

For Erik and his team, having met the challenge of Everest head on and having pushed past their fear, obstacles, adversity, age, and even disability, to succeed, they know that for the rest of their lives they can tackle the “hard” stuff of life really do it well because they have already proven to themselves that they can.

Did Erik Weihenmayer put his feet up after the triumphs and bask in the glow of his accomplishment? Perhaps he did for a while, but this former middle school teacher and coach never stops challenging himself.

“There are summits everywhere,” Erik often tells his audiences when he lectures. “Just because you lose your sight, doesn’t mean you have to lose your vision.”

Three years after he did it the first time, Eric went back to the Himalayas and tackled Everest again, but this time with an even greater vision. On that second trip, he took six Tibetan teenagers with him – a dangerous and challenging accomplishment made all the more remarkable by the fact that these six teenagers were blind as well. Wow!

You can challenge yourself in meaningful and lasting ways as well. The key is to continually challenge your thinking. If you work on changing that gray matter enough, I believe you can avoid the slowdown and letdown trap that snares so many people today, especially as they get older. Challenge yourself big time and you’ll be more than ready to go for your big dreams and accomplish them.

Let’s take a trip inside our minds right now.

First of all, do you believe you can change the way you think about life? Or are there new ways to think about your capacities and your potentials and what you can and can’t do?

So, I am now sending you a big challenge to really push yourself big time and, yes, I am going to challenge myself big time too!

Invest in a Basic Need

October 26, 2018 by  
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Just yesterday, I was on a conference call discussing options for doing a 1031 exchange as a big property that I’m a part owner of was recently sold for many, many millions of dollars. We did make a huge profit on this property and it had a great cash flow during the time we owned it, just like most of the income properties I’ve invested in, but it was time to sell. So, we were looking at our options to buy into other properties which would allow us to avoid paying a huge capital gains tax. We discussed several properties that looked quite promising when one of the partners—a guy much smarter than me—talked about the possible softening of the real estate market due to rising interest rates. Whereas he and others agreed that we are probably due for a pull-back of property values, the new acquisitions looked so promising that a pull-back in prices in the area would not likely have much effect on our possible purchase but it was still a risk.

I was faced with a similar dilemma many years ago and just recently happened to come across something I wrote back then when everyone was worried about a down turn in the economy and a pull-back of real estate prices. My headline was “A Basic Need”. In this piece I wrote, “Why is real estate such a good investment? Why do experts predict that the real estate market may slow down but will probably never fail?”

My answer to those questions is the reason why real estate is such a super great investment – real estate is an answer to a basic need. People always need a place to live, a place to work, a place to shop, a place to stay when on a vacation, and even a place to farm. Improved real estate is especially in demand and it is in demand most of the time. These include apartment units, single family houses, duplexes, etc. And, of course, one of the huge benefits of this kind of real estate is that even if the market softens and price come down, you still have someone else increasing your net worth since their rent payments are paying down your mortgage. Is that a great deal or what?

Even when the market softens a bit, eventually, these properties regain their value as the supply of units shrink and rents begin to climb again. I’ve seen this happen many, many times but investing in small rental houses, duplexes and apartment buildings, through all kinds of market conditions, was how I made my first million. I would keep buying as the market softened and prices and rents began to drop, but I was pretty darn sure the drop would eventually be over and, sure enough, the slump would end and put more millions in my pocket.

Bottom line here is yes, the economy will probably pull back a bit in the next year or so, but this can open up many opportunities for you and can bring you big profits in the long run. So, keep an eye out for good income properties and make offers to buy, whether the economy softens or it keeps on growing.

 

All the Love out There

October 12, 2018 by  
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Last week I ended my blog by writing about the great tears of joy I experienced shortly after posting a picture of me at my daughter’s grave site, a moment that itself was filled with tears of pain and sorrow! So, you may ask, what brought on the great tears of joy?

Shortly after posting the picture of my daughter Kristin’s grave site, I began to receive these wonderful messages of love with many kind words of sympathy, love and support. Wow, did those words of love, coming from several dozen friends, family and even total strangers, ever get to me, bringing on those tears of joy!

That got me thinking about how powerful love is in our lives and how much of it is out there. Even though it’s all around  us you sure don’t hear or see much of that on the news, so, I’m guessing that some people don’t really fully realize how much love there is in the world. But, the opposite of love—that thing called hate—makes the news pretty much every day. Why is that? I think the main reason is because it can be, and usually is, so very sensational, so it really stands out and grabs our attention. Like the mass shooting last year in Las Vegas or the kidnapping of a kid or the rape of a woman and, of course, lately, the terrible things we are hearing about due to the MeToo movement.

The news certainly doesn’t spend much, if any time, on how much love a parent shows his or her kids. Once in a great while the news might have a short story on the great love of a couple on their 50th or 75th wedding anniversary, but the divorce of a couple, especially if they are famous, certainly makes the front page and the top of the hour TV news.

I think we all need to pay more attention to that great thing called “love” and give more of it to those around us and, yes, even people we have just met. We need to Encourage our kids and those around us to share more and more love each day, through words and deeds. And I want to publicly send out a HUGE THANK YOU AND LOVE BACK to those wonderful people who sent words of love, great sympathy, and support to me on what have would have been my daughter’s birthday!

 

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