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!

 

 

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/

 

The Difference Every Day Makes

One day doesn’t seem like very much time and if we get a lot of good stuff done or we do nothing but watch TV all day it may not seem to make much difference in our world let alone the rest of the world.  Hey, it’s only one day. No big deal. I’ve got lots and lots of days ahead of me—like maybe 50 or 100 thousand more of those days before being blasted off this planet. But those single goof-off days can add up quickly and none of us have near as many days as we might figure to accomplish what we want, especially if we set our eyes and minds on big and lofty goals.

Yesterday as I was driving home from a great doubles tennis match I did some quick figuring in my head and was somewhat shocked at the number of days I had left in my life or I should I say the lack of number of days. Even if I made it to age 100 my remaining number of days, with me being almost 71, was only a little over 10,000, and that was IF I make it to age 100!

Even if you are only a mere 25 years of age, that still only gives you just over 27,000 days to age 100.  Now to some people that might seem like a lot of days but to me it’s a pretty small number, therefore I am inclined to think that to waste even one day is a very serious matter, unless of course you don’t have any big and lofty plans and goals.

The good news however, is that I am totally convinced from my experience in life that if you are keenly aware of your hours and days as you experience those days of your life then you will be much more likely to not only set good, worthwhile and important goals but you will be many times more likely to reach those goals.  And because we all have a limited number of days–whether it’s 10, 20 or 27,000–we need to put strict time deadlines on those goals, because if we do that then we are much less likely to waste those precious days and more likely to reach your goals.

Recently I came across an article about me that appeared on the front page of the Sunday Register Star of Rockford, Illinois and I was quite stunned at some of the things they quoted me as saying way back on November 1^st of 1981.

I was only 37 back when the paper ran the story entitled “He Quit Bragging after his First Million”.  As I re-read the story that they wrote about me, I must admit that I was a bit surprised that in talking about my beginnings as a construction worker 16 years earlier, there in Rockford, making only $4.50 an hour, that I had already set my sights on becoming a millionaire.  Plus, even at the young age of 21, I was acutely aware of this thing called “time”.

I had figured that even working as hard as I was, making just $4.50 an hour would only bring me a mere $9360 in a year and even after 50 years, I would only have made $468,000. Of course, when I considered that I would have to spend money to live, I quickly figured out that there had to be some formula or secret to becoming a millionaire because just working an hourly job wasn’t going to do it. I was to find out later, using each precious day to look for the answer, that there was, in fact, a formula to making millions and one that doesn’t require a person to invent Facebook or Amazon or some hi-tech computer program.

If I hadn’t realized how critically important each and every day was and how few days are in a person’s life, I’m pretty sure I wouldn’t have spent my days searching for the “financial formula”.  So please never forget the great and precious value of a single day in your life and use it accordingly.

Next week I want to share more of the newspaper article and more specifics of the “financial formula”.

 

v

Lesson from the Life of Billy Crystal

I want to continue discussing the theme we had last week on writing your thoughts, ideas and life into a journal. I have strong and passionate feelings about this process of making a record of your life, about having the ability to read over all those ups and downs and the lessons we learn along the way.

This past week, I read about the fascinating life and thoughts of Billy Crystal in his incredible autobiography Still Foolin’ ‘Em. He wrote the book when he was turning 65 and it’s really a great read. It’s packed full of very funny stuff but I was quite a bit more impressed by his deep thoughts and feelings on everything from his family including his wonderful wife, kids and grand-kids plus the big impact his father, mother and grandmother had on him, to his numerous famous friends and not so famous friends and business associates.  I’ll tell you, if you read his book you will quickly grow to love and admire this man. He inspires you and gives you some great insights into the human mind and behavior.

He and his famous friends certainly lived the philosophy of “feel the fear and do it anyway”. That is something we all need to remind ourselves to believe in and practice. I think most of us look at famous and really successful people and think that they don’t have great fears like us but nothing could be further from the truth. Everyone has fears, but the key to success and a great life is to plow right through those fears and “do it anyway”.

The other great lesson I learned from Billy Crystal, or I should say I re-learned and reminded myself to do more of, was the huge value of people networking. I was astounded at how many friends and business contacts Billy had. Even though Billy is super talented I don’t believe he would have soared nearly as high as he did without his people networking. I’m talking hundreds of incredibly influential people he got to know who helped him on his path to such tremendous success. And did he ever soar! His success was not only as a stand-up comedian but as an actor in all those wonderful movies, TV shows and even on the Broadway stage. He made us laugh which is so very good for our minds and souls plus he gave us so many hours of movie and TV entertainment. Now through his book, he is giving even more.

I certainly don’t think Billy is even close to being finished as he approaches his 67th birthday on March 14^th of this year. The biggest lesson I think we should take away from Mr. Billy Chrystal is that all of us need to record our life, our activities and, most importantly, our thinking. This can be not only helpful to ourselves when we re-read what our thoughts were at different stages of our lives but also that your autobiography will be equally helpful to others. So keep making those journal entries and leave a legacy for your family, friends and everyone to enjoy as well as learning some great lessons from your own life.

The Six Wealthiest Letters

I just got back from Las Vegas where I gave a speech on financial matters; this was mainly what formulas and so-called secrets I’ve learned over the years on how to make a fortune in today’s world. I gave this presentation to a great new little company that I am pretty sure will not stay small for long–it’s called LyfeStart. I think it will grow at a very rapid pace, for two main reasons: The super sharp and experienced founders and the great product they’ve developed that helps people’s health and longevity as well as putting money in their pockets.

In my speech, I presented the financial lessons I’ve learned from a few millionaires and a couple of billionaires. Specifically, guys like Paul J. Meyer, Larry Rosenberg, Curt Carlson and Aristotle Onassis. There are two formulas that most super financially successful people have discovered and used. They can be summed up with 6 letters: OPM and OPE. OPM is “Other People’s Money” in the form of loans from banks or individuals used to purchase the right assets. OPE is “Other Peoples Efforts” which we talked about in recent posts. How do either or both of these help insure that you will make a fortune? They help you leverage yourself. As all of know with a long enough lever we can lift almost any heavy object that we want to. And believe me the same is true if you use the right lever to lift the financial part of your life. Just about every wealthy person I’ve ever met or read about has used either OPM or OPE or a combination of both.

You see what you are doing is multiplying yourself since there is not enough time in your life to do really big things financially by yourself. Believe me, billionaires know what they’re talking about. They’ve done it. Salary, commission and other income just doesn’t cut it; you don’t make a billion dollars that way and, in most cases, not even a million. There are just not enough hours in your life to make those huge numbers happen. The average person lives only about 700,000 hours. So, if you made $200,000 dollars a year and didn’t spend one penny of that, do you know how long it would take you to be a billionaire? The answer: a whopping 5,000 years!

To make it big financially you just have to use OPM or OPE or both. When it comes to OPE, what I hear the most is that “there’s just not many good people out there anymore” to which I say that’s a bunch of bunk! There are many super people out there that can and will assist you. You just need to go out there and find them. Then give them enough incentive, sell them on your dream and provide them with good direction. I’ve associated and hired so many great people that many times do a much, much better job at certain tasks, than I do. This has greatly enhanced my life and my net worth.

One of the secrets that my wealthy mentors also taught me is to be sure to study what talents and natural abilities people have and then put them in the positions that best use those very talents. That makes them happy and fulfilled while moving you faster and closer to your goals.

 

The Difference Between Being Wealthy or Not

Last week I said basically that having a ton of money does not make for a perfect life and I’m pretty sure that most of my readers would agree with that. However there are lots of great things and big benefits that large amounts of money can do for you and those around you.  If that’s the case why don’t more people have more money and why are so few people super wealthy?

I’m pretty darn sure I know the answer to that question and it’s not the answer most people think. It’s not …

1. Having a very high IQ.

2. A college degree from a top school

3. Winning the lottery

4. A stunning new invention

5. Working 100 times harder and longer.

6. A big inheritance

Okay, if it’s not any of those things what the heck is it, you ask? It’s actually several things, but the biggest factor is following or using a proven formula or plan.  And believe it or not, it’s pretty darn simple.  I didn’t say easy–you really have to work hard and it does take time.  Yes, there are a lucky few that make fortunes almost overnight–with an inheritance, new invention or winning the lottery but those cases are very, very rare indeed.  Most fortunes are made over many, many years by following a solid and time tested and proven financial formula.

It’s rather sad that so many people still think and dream of the day they are going to suddenly “strike it rich” and of course that myth is constantly fed by the rare occasions when someone does strike it rich and it’s all over the news.  Those very exceptional cases are magnified and perpetuated by the media and it keeps people keep holding on to “the dream”.

Many years ago after hitting my first million dollar net worth goal, I wrote a book about it. The sub headline that I used in my advertisements was possibly that best and most accurate part of the ad–an actual fact that I’ve proved over and over again: “Millionaires are NOT 10, 50 or 100 smarter than you.” Nor, I might add, do they work 10, 50, or 100 times harder than you but they do know and follow a simple and proven financial formula.

Stop and think about the 10, 50 and 100 times smarter and harder statement. You know that it’s impossible for anyone to be that much smarter or work that much harder than you! And yet, they do have 10, 50 or 100 times more money. That doesn’t seem right, does it?

So exactly what is that “financial formula” and how does it work?

Next week I am going to lay out exactly what that formula is and how you can follow it, step by step, to make millions.  You can use this wealth for yourself and those you love, and for those deserving worthy causes you may want to support.

For many of my readers this formula is already known and is being used. For others, it’s known and it will be a good review and or act as a motivator to begin or continue.  For still others it’s a formula that they’ll want to pass on to their kids and grandkids so they can build their own fortunes in the years to come. It’s an example of that old wise saying, “Give a man a fish and feed him for a day; teach a man to fish and feed him for a lifetime”. Let’s get you feed for life.

Be Sure To Have Joy In The Journey to Being Rich & Famous

Would you agree with me that most of us at one time or another, especially when we were young, had thoughts that of being rich and or famous? And maybe those thoughts were followed by “If I was rich and famous, my life would be perfect or darn near perfect.”

If you were at all like me, you certainly had those thoughts. Most people I’ve talked with over the years had those thoughts run through their minds at some point.  But I’m here to tell you that “a near perfect” life does not necessarily follow fame or wealth.   Yes, wealth can make a lot of things in your life a lot easier, but if you think that tons of money and fame will automatically bring you happiness and contentment, you’re dead wrong.  (In fact, speaking of “dead”, I think you will find a higher early death rate and more addictions in the rich and famous than the middle class. That is saying something about how imperfect a life with wealth and fame can be.)

Riches and fame can give you a lot more choices but you do need to be extremely careful of what choices you make. For example, gifting your wealth to charitable causes can bring far greater and longer lasting satisfaction than feeding a cocaine or alcohol addiction with all that money.

Please don’t misunderstand me; I’m not dissing money and fame or going after great and lofty financial and glory goals. Those are energizing, lots of fun and can be very satisfying but be sure you enjoy each hour and day of your pursuit and be aware that whatever the end results of your journey, it won’t make your life perfect. Nobody’s life is perfect and when you realize that and accept that fact, your satisfaction and contentment can begin to really soar. Trust me on that; I’ve been there and done that and learned it.  I have to remind myself of that on almost a daily basis and concentrate on the big multi-year goals but at the same time “live in the now” and have tons of “joy in the journey”.

After saying all that about what money is not, it doesn’t mean that money is not important. It is and it can do good things for you and your life. So I think next week I am going to talk about how I see the market right now and what you can do about it to make some pretty big financial gains.

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