The Powers of Two

So how do you make your world bigger and really live ‘large’? Probably the very biggest key to living large is through other people. Unfortunately there is a big misconception when it comes to seeing other people that seem to be living very large and have achieved super success. When we see someone who has come up with a great new invention, a super creative piece of artwork or, for that matter, a new and very successful business, most people think it came from a single person’s mind who has been working alone and has had a mental breakthrough. I certainly used to believe and think that, but if you and I take a closer look, we’ll see that it just ain’t so.

Recently I heard Joshua Shenk on NPR radio talking about some very famous people and world changing technological breakthroughs along with great works of art all of which came not from one brilliant person working alone but from 2 or more people joining their brains and forces to come up with heretofore unheard of successes. Shenk has written a book called Powers of Two and what a great book it is! He talks about great people like Paul McCartney, Steve Jobs, George Lucas and Vincent Van Gogh along with a number of others. It turns out that the key to their super success was hooking up with another person and the power of what those 2 brains could come up with equaled genius and huge breakthroughs.

Those breakthroughs Joshua talks about may never have happened if those people had not met the right person at the right time. For Paul McCartney the breakthrough came when he met and worked with John Lennon which later spawned the Beatles. For Steve Jobs it was hooking up with Steve Wozniak when one was a teenager and the other was only 20 years old. And for filmmaker George Lucas, it was his wife Marcia Lucas who was his secret weapon. Lastly, there’s a very good chance that you and I would probably never have known the name Vincent Van Gogh if it were not for a guy named Theo, Vincent’s brother.

The author goes on to make an undeniable case that most great and important breakthroughs that we think came from one genius working alone came from the ‘Powers of Two’. Later Joshua Shenk talks about how critical it is for you and I to go out and find our “tribe” and to hook up with others that we truly connect with. Sometimes it’s people like ourselves and sometimes people that are very different from us but they hit certain of our hot buttons that lift us to a much higher level and push us to fulfill our great potential. Next week I’ll talk about ways to find our “tribe”, those people that we really connect with and where to go to hook up with those than can help us create and benefit from the ‘Powers of Two’.

 

The Risk and Reward of Living Large

Mitt Romney, former GOP candidate for President recently made some powerful comments to graduating students at Utah Valley University. He advised the students “to experience a fulfilling, purposeful life. One thing you’re going to have to do is live a ‘Large Life’”. What great advice. That is something all of us need to pay attention to. We need to go out and do it and do it our entire lives.  So many times we hesitate to ‘Live Large’. Why? Because most of the time we fear that we will fail.

“Failures don’t have to define who you are,” Romney had gone on to say, and of course we all have had failures.  He further stated, “Through all my occupations, I have experienced successes and failures. I am asked what it felt like to lose to President Obama. Well, not as good as winning. Failures aren’t fun, but they are inevitable.”

How about you, the reader?  Have you racked up a lot of failures or just a few?  It seems to me, from my experience, that the number of failures I’ve had is in direct proportion to how large I’ve tried to live.  So, yes, I’ve had a ton of failures but some of those have led to some huge successes. And the reason for those successes was that I learned so much from my failures.

I remember one huge loss that I learned a valuable lesson from which lead me to some very, very large successes.  What happened was I decided to lend a large amount of money with a restaurant as collateral.  Big mistake on my part! Why? Because I don’t know much about that kind of business so if it failed I certainly wouldn’t know how to run it. And guess what? It did fail and I lost almost all of what I had loaned.

What did I learn?  Well first I found out that restaurants have a very high rate of failure and second, I learned that I shouldn’t stray from what I know best.  Not that I shouldn’t ever loan money but if I do, I should loan it on assets that I understand as well as being on improved real estate which, ideally, would also be income producing.

I forged ahead and made many millions of dollars’ worth of loans that were backed up by real estate and was very successful.  Later I discovered that I could do even better by owning the right kind of income producing properties. I also, very successfully ventured into the development of condos and warehouses, where the profits were even bigger although they did come with increased risks but in that case, those were risks I was willing to take.  And much, if not most of that success, came from lessons learned from my failures and my trying to ‘Live Large’.

Next week, I want to address something else Mitt Romney said at Utah Valley: “Your life will be larger if you value and nourish friendships.”  Those are also some very poignant words.

How to Live to be 142!

You no doubt have heard the rumor that all of us humans will die someday. Of course, I don’t believe every rumor I hear and this one sucks. I just don’t want to believe it! So maybe I’ll call for a huge boycott. You know, get a bunch of us older people together with big signs saying “We are boycotting death!” or “We refuse to die!” or “Death sucks and we won’t participate!” Well, it’s a nice thought but it probably won’t work. Oh yes, if we did it in front of a TV station they might put us on the news so everyone could get a big laugh out of it, but I don’t think that will help us avoid death or even prolong our lives by much.

However, there are things we can do to postpone the inevitable and live longer, stronger and in great health. In fact, there are some researchers that are “inching toward the seemingly impossible: a cure for aging,” according to the February 23, 2015 Time Magazine article. Maybe you saw that issue. On the cover was a picture of a cute baby with the headline “This Baby could Live to be 142 Years Old”. That headline certainly grabbed my attention and yes, I read every word of the several stories covering what the researchers have discovered and what we can do right now to postpone our own demise.

The main story was about “Mouse UT2598″ and the discovery of a compound called Rapamycin which seems to dramatically slow aging, at least in certain cells. If this compound works for humans it could increase lifespan to around 142 years. The research going on at the Jackson Laboratory and the University of Texas Health Science Center in San Antonio, is in its early stages and researchers don’t recommend that humans start popping Rapamycin pills just yet says David Harrison because there are some down sides they have discovered at this point in their research. But the good news for me at age 71 is that they have seen that, “Rapamycin is also neat because it works even when you start quite late in life”.

So if this compound isn’t for humans just yet what can we do about it now? The obvious answer, at least to me, is to do everything in my power to stay healthy, in hopes that science figures out how humans can safely take Rapamycin. And the most effective and proven ways to do that is by eating the best foods which, according to the researchers in the Time magazine article include fish, fruits, veggies and extra virgin olive oil as well as calorie restriction, periodic fasting and consistent exercise with maybe a bit of yoga and meditation.

Do all that and you will have a significantly better chance to live longer and maybe hang in there until they perfect Rapamycin for humans. If doing all those things that you can do and should do sounds like a tough challenge, then listen to the words of William James. What he said many years ago has helped me to better my life when I could see that I needed to make changes and knew that it was going to be a big challenge. “If you change your mind, you can change your life”. I have that burned into my brain and hope you do the same.

 

 

 

Sweet Sweat Equity

When I first learned, from my mentor and friend Larry Rosenberg, how I could actually make a 50%, 60%, 70% and even 100% return on my money, I was blown away because I knew exactly what those kind of returns could do to a small amount of money over time. And believe me back then, a small amount of money was all I had.

I remember vividly the first dirt bag property I bought.  It was a little house that was ugly on the outside and a mess on the inside. But this little ugly and messy house didn’t really need anything more than a major clean up, new carpet and a fresh coat of paint inside and out. The problem was I used almost all of my cash for the down payment.  So, I knew I couldn’t afford what contractors wanted to charge for the work and the materials that were needed to turn this dirt bag property into a beautiful cottage.

So what did that leave me? Sure, I probably could have borrowed enough to cover the contractor’s bids from relatives, friends or a bank but that would cut into my overall profits on the deal. So what did I do?  I just rolled up my sleeves and went to work.  Yes, it was some dirty, hard work but wow did it ever pay off!

I’m not a professional painter and I really didn’t have experience laying carpet but I quickly figured it out.  I can’t say that it was fun but when the project was done and I looked at that dolled up house it gave me quite a bit of satisfaction and a huge a sense of accomplishment.  But I also must say that my satisfaction soared to new heights when I sold the doll house for a big fat return on my investment and that, my friends, is what your own sweat efforts, or ‘sweat equity’, is all about. Wow. Can it ever pay some very handsome returns! And don’t ever forget how those returns of 50, 60 and even 100% can turn a small amount of money into millions over time.

I will admit that a bit later in my investing career, as things were speeding up, I finally got to the point when I figured that my time spent doing all that physical work was robbing me of time that could be much better spent with much larger rewards.  What I mean is that I realized at that point I could make more money by spending more time finding good deals and getting others to do the physical work, than doing the work myself. I could put in more time to make more offers, negotiate more deals and do the paper work needed to figure out what deals to buy and how to finance them. I traded sweat effort for brain effort.

This mental part really is also sweat equity. It’s actually the brain sweat that will give you the biggest returns on your money.  Both physical and mental sweat equity are critical and necessary and you can do both. You need to get to the right point in your growth so you can delegate the physical jobs to speed up your efforts and really grow those returns!

 

 

 

 

 

After 37 years the same FINANCIAL FORMULA STILL WORKS

I was going through a bunch of old documents, notes, and papers the other day and came across the very first article ever written about me in the local newspaper.  The headline read “So Here’s How to Go About Making that First Million”. That was in the Salt Lake Tribune clear back on January 18, 1978

They quoted me as saying “…the best way to get rich with someone else’s money is through loans–mortgage and real estate loans.”

Now we fast forward 37 years and guess what?, That old method of getting rich, for most people, is still the best and most reliable way to make your first or second or fifth million. I did however get a big kick out of reading my example and some of the numbers of how you make a 100% return on a simple investment, such as a small house.  It was the small numbers that made me smile.  I had been quoted as saying:

“If you have $5,000 to put down on a $50,000 house and you borrow the other $45,000 to purchase the house, you can compound your investment by 100% if that house increases in value by $5,000 over one year”.

Most casual readers would quickly say or think, “Wait a minute, where can you find a house that you can buy for 50k?  They don’t exist anymore.” If you say that, of course you are right about finding a 50k house but that doesn’t mean the same formula used back then won’t work today.

That financial formula for great wealth is still the same today, but you do need to add something–simply a zero to each of the dollar numbers.  It’s the ratios that give you the 100% return on your money.  You are right if you are thinking that 10% increase in value won’t just happen by itself though. That is unless you are really lucky and we have 10% inflation in one year. But don’t count on that. However, you might be able to buy a house at a real bargain price then make cosmetic improvements which costs money and or your time and efforts but that may well increase the value by 10%.  Of course with the additional money you put to fix it, it may reduce your overall return to 50% or 75%.  But still, those kinds of returns will almost certainly make you a million or multi-millions over time.

Go ahead and google “compound table calculator” and see how quickly 50% or 75% returns increases $5,000 dollars into a million dollars! You may be shocked; especially what it turns into in 15 or 20 years.

 

 

 

 

The One ‘Dead’ Thing That Makes You LIVE More LIFE!

Most of us when we hear the word “dead” we automatically think it’s something real bad, and many if not most of the time it is just that. But there is one use of the word “dead” when applied to your life that can and does add much more ‘life to living’; that is when it’s linked with the word ‘line’, as in the word ‘deadline’.

The origin of the word deadline is very interesting. It came about during the civil war when prisoners were surrounded by barriers or sometimes just simple lines drawn in the dirt. If a prisoner crossed over these, the guards we under orders to shoot them dead! These boundaries were called deadlines.

Now deadlines are used to make the world a more organized and efficient place. They force us to push ourselves a little bit harder to do more and be more. Think about this: If none of us ever died then we probably  would not even have a clue why anyone would want to set time limits or deadlines on themselves, since time would not be much of a consideration or may not even seem to exist, at least when wanting to get things done.  Why? Because we’d never run out of it.

But, of course we all have a limited amount of this thing we call time (remember, the average person lives less than 30,000 days or 720,000 hours) so it’s important to use it wisely and efficiently. Deadlines help us do just that.

Think what the world would be without deadlines. What if we didn’t have deadlines for any or all of the following?

1. Time to start or finish work.
2. Time for school to start or end.
3. Response time on business deals or real estate offers to sell, buy or close a deal.
4. Court deadlines for filing document.
5. Departure or arrival times for airlines, trains or buses.
6. Times or dates by which we want to accomplish goals that we’ve set for ourselves.

So my message for this week, and really a message for a productive and more satisfying life, is this—Always set goals for yourself and be sure to set those deadlines as well so as to push yourself to use your time wisely and more efficiently.   But don’t shoot yourself if you step over the ‘deadline’ a bit. Just re-boot and try again.

 

 

 

The Principles of Stick-To-It

As mentioned in the last two posts, the comments made by Jeff Rahill in this little “book report” he sent me has really had me thinking about what I wrote in How to Ignite Your Passion for Living. Even the author can use a little reminder here and there! Here are two more sections he pulled out and comments he made about them that highlight two areas particularly important to keep you on task:

In regards to the chapter “Clone Yourself with the Amazing “L” Factor”, Jeff noted that he uses lists himself and has for a while. He wrote, “Yes, I’ve been a prodigious list maker for decades. I switched from the little scraps of paper to my Day-Timer in 1972. ‘The strongest memory is weaker than the palest ink.’ (Write it down!) I update my to-do list every morning (if not the night before).”

And that is the way to do it. Keep creating lists and you will stay on task and succeed.

In regards to the chapter “The Greatest Lesson in Life. Get Going”, Jeff said, “The journey begins with the first step. Nothing happens until you take action. You mentioned the story of Alive, the plane crash survivors in the Andes. What an incredible story. I have seen that movie and still think about it. Nando Parrado took action and his incredible journey saved his friends. ‘When the morning light comes streamin’ in, I’ll get up and do it again.’ (Jackson Brown) Amen.”

This “get going” advice is something that we need to remember and do at every age and stage of our lives. No matter what you want to do, whether it’s goals you have set for your business, family, or personal health, the bottom line is, you just have to GET GOING!

If you’ve follow my blogs for very long you know that I am also a big time fan of counter acting aging by “keeping moving”.  I am 71 in less than two weeks and my “keeping moving” philosophy—as in work outs, tennis and walking—make me feel like I’m 50. (My Fit Bit measured me taking 22,707 steps yesterday–btw that’s 10.54 miles). Bottom line here is we all need to “get going” and keep going which will improve every part of our lives without question! That attitude and well-kept lists will help you Stick-To-It until those goals and dreams are yours.

Small Bites of Motivation

I want to continue with some of the comments made by Jeff Rahill of Kauai that I shared in last week’s post. These were from a letter to me that we jokingly called a “book report” dealing with specific parts of my book, How to Ignite Your Passion for Living, that he thought were particularly helpful.

Here’s some of what he wrote from different sections of the book:

On the subject of “The Bite-Size Miracle” Jeff said, “I definitely believe in achieving your goals, be it long range or the immediate task at hand, by taking it one bite at a time. I remember in the last half of the marathon at Ironman, telling myself that I just had to make it to the next aid station, which were one mile apart. Then I saw the handmade signs on the side of the road: ‘They that wait upon the Lord shall renew their strength; they shall mount up with wings as eagles; they shall run, and not be weary; and they shall walk, and not faint.’ Like you said, ‘Action is the key … keep moving.’”

That section of the book dealt with how to accomplish a goal by breaking it down into small goals so that, step by step, you would get accomplish that end goal. This can be used in almost any circumstances where the accomplishment seems too huge to tackle. In the book I used an example of a man who survived and literally dragged himself back from certain death by seeing each few feet he needed to cover to get to his base camp as one small goal. If you can just block out that overwhelming, seemingly impossible picture of the big goal by putting all your focus on the small goal, you can, one tiny goal after another, get yourself to that finish line.

I also really enjoyed Jeff’s comments on ‘The Surefire Way to Stick with Every Goal’ The secret is to know your benefits, reasons and motivations, and write them down.  Jeff adds a bit about his experience in how this relates to keeping fit. He wrote “I’m with you on the subject of fasting.  I’ve been fasting one day a week for over 40 years. It’s part of my health plan. Another part is being a vegetarian for that same period.”  By the way, Jeff looked to be in terrific physical shape and certainly seemed well aware of the benefits and reasons for his fasting choice.

Jeff had a few more choice comments I want to share and reflect on with you but we’ll save them for next time. These two lessons are big ideas that can make all the difference in reaching your goals. If you can just take and apply these to the things you are working towards right now, I bet you’ll see a big difference in just the one week between this post and the next one. Let’s see if that’s true!

A Passionate Book Report

Last week I had lunch at Duke’s on Kalapaki beach in Kauai.  If you have been to Kauai you probably know the place. A friend of mine in Salt Lake City, Tom Roughton, told his cousin, Jeff Rahill, that I was on the island and suggested we have lunch since we both had done extremely well by buying beat up properties and fixing them up.  At the end of our delightful lunch I gave Jeff a copy of my latest book How to Ignite Your Passion for Living and jokingly told him there was a  book report, double-spaced and graded on a curve, due in 2 weeks.  We both laughed but then would you believe, two weeks later there it was a 5 page, single-spaced, book report on my computer screen!

I was very surprised how well it was written and how it was spot on in commenting on the most important points of the book.  Reading Jeff’s comments reignited my own passion.  Of course part of it may have been the fact that he loved my book and that stroked my ego but it also motivated me to refocus on the book’s lessons—to do more, be more and stick with my big goals and even add more goals to my list.

So I thought I’d share with you some of Jeff’s comments and wisdom and see if it stirs you up as well:

“I wanted to tell you that I just finished reading your book and will at least give you my comments–even though it’s not exactly a book report.”

“I’ve believed for many years that goal setting is the key to getting what you want, so your book resonated with me in its premise and in many of the details.”

“’Return to Exuberance.’ Yes, I would like to get back the exuberance I felt at a young age, probably sixth grade, or in my twenties, for me. I agree that the dreams or goals have to be big.”

“’Short Life Needs Big Passion.’ The older we get, the more we realize how short life is.  We are here, and gone, in a speck of time.  I didn’t have a goal as a young person to have a million dollars or anything like that. It wasn’t until I was 25 that I even started to keep track of what I had, and at that point it was more ‘keeping track’ than setting a monetary goal. I kept track of my net worth every year, but didn’t hit one million until I was 50.”

“…..we all need a dream list.  I’ve often put pictures up on my bulletin board, in front of me all day, of the things I like. It keeps me dreaming, and that’s the first step toward it becoming reality.”

Next week I want to share some more of Jeff’s thinking and wisdom from his ‘book report’. Think on these initial comments in the meantime and see if it starts a spark of motivation in you. You can order the book as well right here on our website. Just click!

A Kindness in Flight

A few weeks ago I clicked on my dear friend Richard Paul Evan’s blog and read the story of a flight he was on where he observed a random act of kindness. His story brought tears to my eyes and I wanted to share it with my readers as well. So please click here to read the story. You will be so very glad that you did.

 

« Previous Page — Next Page »