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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!

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.

 

The Energy Generating Brain

October 19, 2018 by  
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I am pretty sure there’s not many people that wouldn’t like a bit more energy. Okay, maybe an 8-year-old kid has plenty, but most of us, especially as we age, really want and need more energy. The amazing thing about humans is that we can actually create more energy with our minds.

The mind can be one of the strongest and most powerful force that you possess. A overly simple example of the mind creating energy is if you were dead tired at the end of a mountain hike and could hardly take another step, but suddenly you were confronted by a grizzly bear, your brain would immediately send a signal that would produce a huge amount of adrenaline and give you plenty of energy to move very quickly to save yourself. Although that is chemical physiology, even quantum physics has proven that your thoughts can be vibrations of energy.

How about this? You are lying in bed, totally worn out with seemingly no physical or mental energy, and suddenly you think of some incredible new invention. You can visualize how this idea could very possibly make you a quick few million dollars. Suddenly, your brain creates a ton of new energy and you jump out of bed, rush to your desk, and begin putting your great new idea on paper.

Your brain really can create energy. I totally believe that your brain is the key to your financial fortune and my experience backs up this belief. Some say that you can obtain wealth by training your subconscious mind to attract wealth, and I totally agree. If you put those money-making thoughts and plans deeply in your mind and then push very hard to turn those thoughts into action, you can and will be successful.

Quoting from one-mind-one-energy.com, “The most potent form of energy is thought because thought waves are cosmic waves penetrating all time and space.”  The 5 steps below, found on that website, make so much sense and are so very true. We really need to watch our brains like these 5 steps advise.

  1. “Watch your thoughts, they become words.”
  2. “Watch your words, they become actions.”
  3. Watch your actions, they become habits.”
  4. Watch your habits, they become your character.”
  5. Watch your character, it becomes your destiny.”

Good ole Mahatma Gandhi said something similar: “A man is but the product of his thoughts–what he thinks, he becomes.”

Wow, there’s a bunch of good stuff to pound into our brains that can greatly enhance and improve our lives, whether it’s to make millions of dollars or become whatever we’ve always wanted to become and maybe have fallen short. Plus, who among us doesn’t want to have a ton more energy?

The Power of Repeated Thoughts

September 28, 2018 by  
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People commonly remark to themselves, or to other people, things like “I’m a real good people person,” or “You know, I’m not good with people. I guess I’m kind of anti-social.” Others say, “Hey, I’m really good at fixing things,” or “I sure am a poor public speaker, but I’m a very good writer.” How about you? What do you tell yourself and others that you are good at and things that you are not so good at?

This self-talk is a very powerful thing and it tends to make you much better at some things, but it also can reinforce negative ideas about your life and habits which can hurt you.

I’ve said for many years that I’m very good with numbers and that I am a good wordsmith but, when it comes to repairing or fixing things, ugh… I’m terrible. And for many years now I’ve said to myself and to others, “I’m really, really not physically flexible.” In fact, I can’t even touch the floor without bending my knees big time. But, a few weeks ago, I started thinking about the huge connection between the brain and the body and how my comments about my lack of flexibility was totally reinforcing that weakness. You see, by telling myself over and over again that I was not at all flexible, my body believed it, which wasn’t hard because I wasn’t doing anything to change it either. So, my body was just following the brain’s instructions.

It does surprise me that I didn’t have this wakeup call years ago. I just accepted having a stiff body as an unchangeable fact and by always saying that I was not flexible, I reinforced what my brain was telling my body.

So, having had my little epiphany, I decided to do something about it. I started a simple daily stretching routine and within just a few days I was delighted to see a slow but consistent improvement in my flexibility. Before my stretching program, if I had dropped something on the floor, I would ask my wonderful wife, Kimberly, it she’d pick it up and she always would. But now she doesn’t have to. Even though I’ve got a long way to go to be super flexible, I can see that it is going to happen, just a little bit at a time.

I’m not saying that we don’t each have some very natural talents and abilities but there is also a very strong connection between the brain and the body that can also affect our abilities. We need to remember that we can direct our thoughts to make changes and improvements in our body and in our life, changes that we may have thought were not possible. The bottom line is that our thoughts can reinforce good stuff in our lives as well as some bad stuff so we should pay attention to which kind of thoughts we keep repeating to ourselves and others.

Think about this and maybe experiment with ways to direct you and your body to change or improve. You might surprise yourself.

 

A List to Start the Day

September 14, 2018 by  
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A few weeks ago, I talked about how important that first hour of your day can be as the book, The Miracle Morning, talks about. I would add one critical thing that you can do to make that first 60 minutes of your day so much more productive and beneficial to your life – write down, the night before, the items and tasks that you want to address the next morning. Write what you want to concentrate on for those first 60 minutes. You can break it down to six 10 minute items or four 15 minutes tasks, but no matter how you do it, making a list can, and will, greatly increase the odds of you following through on what you want to accomplish.

There is something magic that happens in your brain when you reduce your desires to a list. When you write those items down, it’s like your brain pushes you to act on them and won’t let you go until you do it.

In my book, How to Ignite Your Passion for Living, I have a chapter entitled “Clone Yourself with the Amazing ‘L’ Factor”.  Show me any super-successful person who has accomplished big things and I’ll show you an accomplished list maker. Yes, you can clone yourself by the wise use of list making, plus some good old-fashion delegation.

Of the many specific techniques that have huge value in helping catapult a person to the top of whatever they’re going after, I have to say that list making is at, or near, the top of that list. For some reason most people tend to put a much higher value on just about anything that is on a written list. It’s just flat-out amazing how much more enhanced your life will become and how many more dreams and goals you will be able to achieve by using lists. In addition, daily task lists or to-do lists are the key to keeping track of accomplishing all the bite-size components into which you’ve broken down your big picture goals.

So, if you have gotten away from that ole list making habit, it’s probably a good time to start making lists in order to drive yourself to get lots of stuff done. And I don’t mean just for that first hour of the day, but make lists for your big, huge goals and read over your list often, checking off those items that you’ve accomplished. Then you can give yourself a nice pat on the back for getting the job done!

Prioritizing Your Lists

September 7, 2018 by  
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Last week’s blog challenged you to become the next Richard Branson. I’m still waiting for that invitation to jump in your hot air balloon and travel over the Atlantic Ocean! But, more importantly, I hope my words got you thinking about list making.

I ended my previous blog, which was all about how successful you can be when you make lists, by asking the question, “How important is it to prioritize your list?”

Of course, the answer is that prioritizing your lists are absolutely critical, that is, if you want to do much bigger and better things!  However, most of us humans after we’ve made a list, will often make the mistake of NOT prioritizing the items on them. You may be thinking, “Hey, everybody knows you should prioritize!” And that may be true, but most people simply don’t do it, even if they know it’s very important!

I’m acquainted with many bright and intelligent people who treat virtually situation – every business deal, and every contact – equally. Ok, I’ve been guilty of doing that myself from time to time. People will even let a very low priority phone call or even a walk-in salesperson interrupt a high priority project or meeting that they are involved in. They have no sense of priority. They often move from one small, easy item to another small, easy item on their “to do list”, simply because they are easy and to get them out of the way.

Once in a while, if there is still time in the day, they’ll finally get to some important items, or even a top priority item. I’m sure most of us have done this, on occasion, but we need to realize that leaving our top priority items until later will hurt our progress and productivity to a large degree.

If we give it some advance thought and plan our day, we are more likely to stop ourselves from “taking the easy way” and not be oblivious to the great power of doing the top priority items first. Probably the biggest reason all of us can, and do, too often leave the top priority items until later is that those are usually very challenging and very difficult, and people just don’t want to push themselves. They do the easier, lower priority and only moderately important items first so they can check them off the list. I guess it makes them feel good or feel like they’re getting more done that way.

Have I taken the easy road myself?  Yes, of course I have. Most of us are very human in that way and we slip up once in a while. Sometimes we slip up more often than that. But by knowing that’s the wrong way to approach my list, I can concentrate on giving the top priority items a top priority position on my list which will help me reach great heights in my life.

If you dwell on this idea and acknowledge the fact that doing the easy things on your list first can keep you from accomplishing great things, you are much more likely to prioritize properly. And when you do slip up, and am totally aware of that slip up, you need to admit that to yourself and take corrective action. I am sure you can do this because I can and I’m pretty sure, you and I are not that different.

A Billionaire and a Popstar

August 31, 2018 by  
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I’m sure you’ve taken note of certain people whose lives seem packed full of many marvelous activities, adventures, and experiences. Have you ever wondered how they do it all? Well, a big part of their success is that they are good at making, keeping, and working off of lists.

A good example is British billionaire Sir Richard Branson, who credits his lists of things he wants to accomplish as the key to his getting so much done. He takes the time to go down that list often, adding to it and checking off each item as it is completed.

Here’s a guy who, at the tender age of 25, had the nerve to make a $100,000 offer to buy the Caribbean island of Necker that was listed for sale at $6 million dollars. No, the seller didn’t accept that low ball offer but, later, Branson did buy the entire island for a mere $180,000 which ended up being one of his favorite paradise getaways. And get this … his super luxury cabin rents out for $65,000 a night! Wow. That’s my kind of real estate investment – a place you can rent out, when not using it for yourself, that provides a super great cash flow.

Today, his Virgin group of businesses owns more than 200 different companies. Among these companies are businesses that specialize in air travel, finance, retail sales, music, cell phones, internet, hotels, and even a railroad. In 1999, Branson attempted, and broke, world records in hot air balloon travel and in a transatlantic small boat crossing.

Pop star, Madonna, also has a reputation as a big list maker. Although her accomplishments are in different areas than Branson’s, she attributes her list-making to keeping track of her priorities and getting so much done.

Lists are one of the secrets used by the rich and famous every day of their lives. They help them to run their businesses and to expand their ventures. List making is a common trait of millions of successful people regardless of race, sex, nationality, or occupation. Lists are used to lift their lives and propel them toward fulfillment. And lists can do the same for you and me!

Once again, as I write about this, it truly motivates me to make more lists and be more consistent in doing just that. But here’s a good question to end on: How important is it to “Prioritize” your lists?  We’ll talk about that next week.

In the meantime, how about you or your son or granddaughter become the next Branson? Hey, it could happen, and then maybe you will invite me to a hot air balloon ride across the Atlantic!

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