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.

 

 

 

It’s About Controllable Assets

I have a few more insights to share with you, hatched from Jeff’s “book report” on my book. On Addendum B–“When a Billionaire Speaks, I Listen” he commented on Curt Carlson’s advice. Jeff said, “Interesting that Fortune Magazine would say over 30 years ago that we’ve seen the last of the billionaires. But, that may be the typical thought of someone with limited thinking or a small world view.  While the oft-quoted statement by the commissioner of the US Patent Office in 1899 said ‘everything that can be invented has been invented’ may not be correctly attributed to him, it tells the same story. Carlson’s advice to get good people, then delegate is certainly right. The big wealth comes from spreading yourself around or at least by using ‘Other People’s Money’.  I always remember Aristotle Onassis, the Greek shipping magnate who married Jackie Kennedy, saying ‘borrow as much money as you can and always pay it back on time.’”

Hey Jeff, that’s some good stuff from your book report!  I think I will have to give you an A+.  I would add to Onassis’s comment about borrowing money with a very critical qualifier.  Yes, borrow as much money as you can but borrow it to purchase the “right kind of stuff” and by the right stuff I mean use it to purchase assets that appreciate in value and ideally assets that also provide you with cash flow returns as you watch and wait for their value to increase.

Yes, many stocks fit those parameters but for my money the assets that have worked by far the best for me have been income producing real estate (and that’s coming from a former successful stock broker.)  Why real estate rather than stocks?  The biggest reason is because with stocks you cannot control the company or the ups and downs and whims of the stock market. With the right kind of real estate you can at least have some degree of control over the property plus all that money you borrowed will, in the long run, be paid back by your tenants and if you have done it right, you will be collecting cash flow along the way.

So the take away here is that Onassis was partially right when he said borrow all the bucks that you can and always pay it back. But I say borrow all the money you can to buy appreciating assets that you have at least some control over, collect cash flow along the way and let your tenants pay off the money that you borrowed! I bet you can see just how smart that is!

 

 

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!

Thanks a Billion!

I’ve been talking about the great success of the young university student that started with nothing and ended up with billions of dollars worth of income producing properties but this time,  I thought I would try to tease you into reading,  or re-reading, The Next Step to Waking up the Financial Genius Inside You by posting the thank you letter that Dell Loy Hansen sent me years after reading my book and which now prefaces the Pre-forward of the revised edition. This is just one of many thank you letters I have received and shows you how putting my principles to work really can change your life. :

Dear Mr. Haroldsen:

I have wanted to thank you for many years, but like most people I have not until now. When a friend told me you were going to republish your wonderful book, How to Wake Up the Financial Genius Inside You, I saw my chance to return a favor.

You woke up my “genius” over 25 years ago when I had a $200 VW and a ten-speed bike to my name. I wanted to own real estate to gain cash flow and future value as the mortgage loans paid off, but how? Your simple, straightforward plan allowed me, at 23 years of age, with no credit history or capital beyond a 2 week paycheck, to buy my first two homes for $200 down. I owned those homesf for 12 years them sold them for a $72,000 profit plus the years of cash flow I lived on.

When people ask, “can I still do this?” I smile. I truly believe it is actually easier today with better information, computers, more cash in the economy, and obviously, a great deal more real estate to choose from. I sincerely think I could do “better” today with an average intelligence and above average desire than 25 years ago.

For 25 years, I have pursued your principles and continued to grow in economic strength and knowledge. Today, the group of friends and family that I lead as chief operating partner own over one billion in real estate in Utah, Nevada, and California. The cash flows now exceed my dreams and my friends and family are economically secure and grateful. Life is so fulfilling as my options to travel and do charitable work are part of my every day life.

Thank you a million –or more appropriately, “Thanks a Billion!”

Your grateful student,

Dell Loy Hansen

CEO Wasatch Property Management, Inc.

Okay … did I tease you enough for you to read the book?  You could also do someone a huge favor by giving or sharing the book with them–it could change their life and yours too! Get yourself or a friend a copy here.

 

Fast Track to Billion$ with Friends

I hope you saw the great wisdom of Brian Tracy’s words of advice of to surround yourself with the ‘right people’ aka RP.  (See my February 13^th blog post.)  Those ‘right people’ are, for you, the people that have excelled in an area of life that you want to be super successful in as well.

When I was young it was all about money and, yes, a little bit of fame too. I must admit that excelling in the money department and my path to multi millions couldn’t have been done without the help, coaching and direction of certain RP in my life.  Those people were a god send. Knowing them paid off really big time for me.

But my climb up the money mountain has been eclipsed by a young man who read my first book, How to Wake Up the Financial Genius Inside You.  This university student started with nothing but quickly saw the genius behind the RP idea and was smart enough to approach a his own set of people. His RP helped push him to buy income producing property now worth3 billion dollars. Whereas I mainly approached people that could coach me and direct me this young guy approached super wealthy people and brought them in as partners.  In addition to his real estate empire he paid north of 70 million dollars in cash for the professional soccer team Real Salt Lake. This young man’s name is Dell Loy Hansen.

Part of the key to Dell’s success was taking good care of his partners. He made these great deals with them and so they in turn told others about their success including people with money. Having more people willing to invest with him allowed him to buy more and bigger properties.

So whatever your dreams are, if you want to hit it big, the path is much shorter and faster if you find the RP to surround yourself with and to work with. I also want to stress that there are many, many other good reasons to seek out and associate with those RP and for reasons much more valuable than money. I’m talking about the great life-long friendships you make and the wonderful warm relationships and experiences those alone can bring.

 

The Kind of People for You

I picked up a book yesterday written back in 2003 by an old friend. The book has a one-word title: Goals! The subtitle is “How to Get Everything You Want—Faster Than You Ever Thought Possible.” I’ve always felt it a privilege to call its author, Brian Tracy, a friend. He’s not only a warm, friendly person, but he’s also smart and wise. His advice in Goals! is fantastic. I read it back in 2005, and I have reaped huge rewards from following his wonderful and sage advice.

When I picked up the book up yesterday, I took a quick look at the handwritten notes and quotes I pulled that I had scribbled in the front blank pages of the book (with the page number references, of course!) I found myself immediately pulled back into the book to my favorite parts and what I thought was Brian’s best advice and ideas. Thoughts like: “Character is the ability to follow through on a resolution after the enthusiasm with which the resolution was made has passed,” found on page 263.

But what Brian wrote about the concept that gives a person a huge advantage to be successful that really influenced me was written under the subhead, “Get Around the Right People.” Brian goes on to say that we should “make it a point to associate with the kind of people that you like, admire, respect, and want to be like sometime in the future. Associate with the kind of people that you look up to and would be proud to introduce to your friends and associates. The choice of a positive, goal-oriented reference group can do more to supercharge your career than any other factor.”

When I set my goal to be a millionaire, one of the first things I did was to set in motion a plan to meet and get to know wealthy people. On that list were two billionaires who didn’t know me from Adam but who, with persistence and a plan, I was able to meet and get to know as well as get advice and financial formulas from them. My very first “adviser”, and a man who became a good friend, was a multimillionaire by the name of Larry Rosenberg. The two billionaires were Ray Kroc, founder of McDonald’s, and Curt Carlson, founder of the TGIF restaurant chain. Later I was fortunate enough to connect with businessman Paul J. Meyer, who built a half-billion-dollar fortune starting from zero. He shared many ideas and formulas for achieving success at a quick pace.

In the margins of Brian Tracy’s book, I found this note his words inspired me to write: “In order for me to be able to associate with the right kind of people, I must work hard on myself to be that likable and right kind of person. When I think about it I know that for me and most people, we would all much rather do business with people who we really like and we tend to shun people that are unfriendly, grouchy or that are too argumentative. I don’t even like to play tennis with people I don’t like, even if I beat them.” So the bottom line here is to meet the “right” kind of people you must work on yourself to become that same “right” kind of person.

 

The Story of a Millionaire Goal

Last week I posted the front page story that was written about me and my plight when I was a poor 21 year old and how that wonderful couple Phil and Addie DiBenedetto took me into their house and let me sleep in their basement even though they had just met me.  This all happened when I was working construction in Rockford Illinois back in 1965.  I was very lucky to meet the DiBenedettos not only because they gave me a place to stay and feed me for free as well but maybe even more importantly, they seemed to really believe in me.
Re-reading that article reminded me that even as a very young man I had set my sights on becoming a millionaire.  I must admit that I had a tough time staying focused on that huge million dollar number when I was physically working myself to the bone at a measly $4.50 an hour. I do remember that I tried very hard to make every single day count by continuing to search, in what little spare time I had, for the “million dollar secret”.

I don’t think the DiBenedettos, even though they believed in me, ever really thought I could reach the “millionaire status or level”.  In fact years later as quoted in the newspaper story when they visited me in Denver, Phil and Addie said they “still remember Haroldsen and his wife lived in a broken down house. Finally, the young man ended up in Salt Lake City, where he was eventually fired from his job and on his way to making his first million.”

I loved the next part of the newspaper story. “When Addie and Phil visited Haroldsen for the first time in Salt Lake City, they had no idea he had fulfilled his dream of becoming a wealthy man.” In fact they were even worried that I couldn’t afford the long distance calls that I had been making to them prior to their arrival.  The best part was how blown away they both were when I drove them through the gate and into the long driveway of my home. It wasn’t a huge mansion but it was close, with over three tree-lined acres surrounding it.  They were so very proud of me and I had always been so very grateful to them for their willingness to reach out and help a young man who needed a place to stay but even more so for their very kind, loving and friendly support of his dream.

Those 5,840 days (16 years) between my meeting the DiBenedettos and the publishing of that article, were used to search out and discover the financial formula that can lift an ordinary person from being a meager wage earner to being a millionaire and, yes, even a multi-millionaire.  What is the secret?

Well, first it’s setting your mind firmly on your goal and never giving up on your objective and then working your tail off–or I should say, working your brain off since physical work and an hourly wage will never get you to the big numbers.  Hitting millions and multi millions is done by using financial leverage and people leverage. If you are not sure what that is, you should go back and read some of my earlier blogs that address that specifically and in detail. The secrets are all here:

http://ignitemylifenow.com/2013/01/11/the-power-of-leverage-and-compounding/

http://ignitemylifenow.com/2014/06/14/the-final-step-to-wealth/

http://ignitemylifenow.com/2014/07/25/the-simple-wealth-formula/

http://ignitemylifenow.com/2014/11/07/leverage-to-lift-your-profits/

 

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