Monday, January 30, 2017

Rules of success inspirations - interview footages

Click on the video above or link to watch the full interview

Robert Kiyosaki is a Japanese American investor and author of the popular book 'Rich Dad Poor Dad' where he wrote of his two dads. His rich dad taught him to think differently, inspired and helped him get rich on his own.

Sunday, January 22, 2017

How to be a real estate investor and succeed

Many people want to be successful real estate investors. The problem is that the average person starts at the last step of the investment cycle rather than at the beginning. Because of this, they often fail.

What is the last step? The property.

It seems counterintuitive, but the property is actually the least important part of becoming a successful real estate investor. In fact, you could have one of the best properties in the world, but if you don't complete three crucial steps prior to buying that property, chances are that, for you, the property will be a huge disappointment.

Here are the four essential steps needed for being a successful at real estate investing.

Step 1: Establish your personal investment philosophy
As my friends Robert Helms and Russell Gray, the Real Estate Radio Guys, often say, "There are no problem properties; there are only problem owners."

There is always a right owner for any property, which is why it's key to determine what kind of owner you are before you ever invest any of your hard earned (or your investor's hard earned) dollars into an investment property.

Investing is a lifestyle, and you have to determine what kind of lifestyle you're looking for.

Some important questions to ask:
    What do you want real estate to do for you?
    Where do you want to go in your investing journey?
    Who do you want to work with?
    What do you want to spend your time doing?

The Real Estate Radio Guys share a story about a C class apartment investor that netted $1 million a year. They were excited to meet him because many of their students aspired to have that kind of income from a property. But when they met him, their whole paradigm changed because he was working 16-hour days, 7 days a week, and he hated his life. Money wasn't the problem. His personal investment philosophy did not match the reality of the property and location he picked.

There are other investors, however, who live to work on and invest in C class apartments. It's all about what you're looking for in life. Your mission as a real estate investor is to make sure you understand clearly who you are, what you want out of real estate, and then make sure that what you acquire fits that mold.

Step 2: Determine what market you want to be in
Another saying I like from The Real Estate Radio Guys is, "Live where you want to live; invest where it makes sense."

Many people think they need to invest in their own backyards. While that may be a good idea, it's not a necessary one. Rather, you should find a market that meets the needs of your personal investment philosophy.

For instance, if your personal investment philosophy were to invest for monthly cash flow, it would make no sense invest in a number of properties with an aggressive, highly leveraged debt ratio that allowed for no cash flow. Nor would it make sense to invest in a high appreciation market where prices didn't pencil out for positive cash flow.

Rather, you would need to find the right market that provided affordability and cash flow, even if it didn't appreciate much. For cash flow investors, that's a great market. For flippers or appreciation investors, it's a nightmare market. But you only know that if you understand what kind of investor you want to be.

Step 3: Assemble your team
As rich dad said, "Business and investing are team sports." In order to be successful in any market, especially ones that you don't live in, you need to have the right team.

This team should include an attorney, a CPA, a bookkeeper, and a real estate agent and/or broker, and you should rely on them heavily to give you expert advice about your market and the properties you'll be looking at.

Without a team in place to give you expert advice, the chances of you making a huge mistake are high.

Step 4: Purchase the right property
Finally, and only after determining your personal investment philosophy, finding the right market, and assembling your team, should you start looking at properties.

And if you do steps 1-3, it won't be are to find the right one.

Monday, January 9, 2017

I wanted to be rich since I was 5 years old

[Watch the video above or click here]

Robert Kiyosaki is a Japanese American investor and author of the popular book 'Rich Dad Poor Dad' where he wrote of his two dads. His rich dad taught him to think differently, inspired and helped him get rich on his own.

Wednesday, January 4, 2017

New Years Resolution for 2017

Here we are in 2017. I hope you and yours had a good New Years celebration. As you know, this is the time of year when everyone does some looking within. If you're like most people, you've either made or are thinking through some resolutions for the New Year.

Did you know that most resolutions revolve around three things?
-    Health
-    Money
-    Experiences

Think through the resolutions you've made in the past, and most likely they will fall into one of those three categories. And these are also the most commonly broken resolutions as well. You can probably relate.

Personally, I don't do resolutions. I think it is much better to have a mindset that is always growing and evolving. I don't need a new year to make change in my life. I need to continually be examining where I am and where I want to go, all through out the year.

To do this, I build habits into my life that help me grow personally and financially each and every day. Here are five of them that you can put into practice starting today.

1) Keep up with the news
There is no substitute for knowing what is happening in the world and the markets. Each morning I get up and read a number of financial papers, blogs, newsletters and more. I also watch the news throughout the day.

As I've written before, knowledge is the new money, and if you want to be wealthy, you need to constantly be filling your knowledge bucket.

What you'll find is that the more you read, the more you'll start to understand. You'll then begin to notice patterns, and sooner than you think, you'll know what moves to make with your money well before most other people.

2) Read one book a month, at least
News is important to keep up on, but some ideas require much deeper exploration. Throughout my career, my success has come because I've chosen to read books that educate me about history, business, and money. While most people are content to watch TV or play video games, the person who commits to reading books will be light years ahead in the game of life.

Personally, I read multiple books each month. If you're just starting out, however, commit yourself to at least one book a month. That's much more than the average reader, and the knowledge you gain will be priceless. Don't know where to start? Here are two books I recently recommended.

3) Play more games
Head knowledge is important, but studies have shown that the best way to learn is to do. Games-or simulations-are proven to be great ways to learn by doing. Not only are they fun, but the applied knowledge also helps you retain more and understand how money and investing work in real life.

We stated Rich Dad as a game company focused on teaching financial truths through games. Thousands of people around the world get together to play CASHFLOW, our board game that teaches you how to get out of the rat race. You can either purchase a copy of the game for yourself, or you can play online for free.

4) Get fit
It's cliché to say you're going to hit the gym in the New Year, but it underlies a fundamental truth-when you are in shape you feel better, and as a result, things in your life are better.

Rather than preach a certain method or way to get in shape, I simply like to encourage people to find something they enjoy and do it until they don't enjoy it any longer. That could be the stair machine at your local gym, but it could also be something as simple as taking a nightly walk after dinner with your partner.

If you focus on your physical health, your mental health will be sharper, you'll have more energy, and you will be more successful.

5) Give back
Kim and I have shared our 10/10/10 plan before. In short, you invest 10 percent of your income, save 10 percent of your income for emergencies and special opportunities, and give 10 percent of your income to charity or your church.

Most people do well at saving their money, though probably not 10 percent of it. Some people do well at investing their money, though again probably not at 10 percent. But very few people do well at giving their money away.

Kim and I believe that in order to receive you must give. You cannot have a healthy and wealthy mindset if you are stingy and greedy. We also believe that what goes around also comes around. Call it karma or whatever you want, but if you are generous with the world, the world will be generous with you.

Monday, January 2, 2017

Dont rest on your laurels

We live in interesting times. A while back, I wrote about the possibility of the Fed raising rates... At the time, many people disagreed that the Fed would raise rates. They were wrong. 

I also wrote about how the average investor always gets hurt in times like these because they do not know how to read the signs of the times. The rich, on the other hand, know how to read them and move their money accordingly. As Jakab predicted back in August, the bond market is getting wasted after the Fed announcement.

As Min Zeng and Christopher Whittall write for "Morningstar," "Between the election day and this past Wednesday, the global bond selloff has wiped out $1.45 trillion in market value from the Bloomberg Barclays Global Treasury index, which tracks government bonds in both developed and developing countries…The Fed announced Wednesday afternoon it is raising short-term interest rates for the second time since 2006. While the decision is widely expected, what spooked bond investors is that the Fed had previously projected three rate increases for 2017, compared with two from its September policy meeting. Higher interest rates from the central bank tend to shrink the value of outstanding bonds."

Translation: a lot of average investors are getting decimated.

It's a good time to write a reminder on something that can change the way you look at the world of money.

Money is no longer money

Most people think of dollars as money, but the reality is that it is not. An amusing way of looking at this is to realize you can buy $10,000 in cash from The US Bureau of Engraving and Printing for only $45. The catch is that they're shredded.

More seriously, since Nixon took the dollar off the gold standard in 1971, it is no longer money. Before 1971, there was a relationship between a dollar and how much gold was backing that dollar in the US treasury. After 1971, that dollar was not backed by anything other than the full faith and credit of the United States government.

Dollars as currencies

Today, the dollar is a currency. It can go up and down in value depending on how other currencies are performing and based on many economic conditions. It is tied to nothing and can move in either direction very quickly. And right now, the dollar is rising and expected to continue doing so.

So, what does it mean that the dollar is a currency? I find it helpful to talk about electrical currencies. An electric currency carries electricity from one place to another. In order to survive, a currency must be moving. Once it stops, it dies.

Similarly, the dollar as a currency is simply a vehicle to move wealth from one area to another. For instance, smart investors who saw the rout in the bond marketing coming most likely moved their wealth from bonds to another sector that stood to benefit from higher interest rates and a rising dollar.

The secret to building wealth

And that is the secret the rich know about building wealth. You can never get comfortable and you can never park your wealth and forget about it. You must always be learning and always be moving your wealth to where it will grow. Once you see that area is in danger of falling, you look at the trends, determine the next area of growth in the economy, and move your money there.

An example of this is Ken McElroy and I investing in apartment buildings during the high point of the great recession. Though it was difficult to get people to move their wealth into these investments (the fear made them want to sit on their cash), the smart people saw a ripe opportunity to pick up cash-flowing properties at rock-bottom prices. Seven years later, we're selling those investments at multiples of what we paid for them, and all the while we enjoyed positive cash flow from their operations.
Increase your financial intelligence, continually

Of course, this takes a high level of financial intelligence. It means reading about money, how it works, and what is happening to it in the global economy-on a daily basis.

As an investor and entrepreneur, I never rest on my laurels. Like an athlete, I'm always in training. In fact, if I don't keep training, when it comes time to take the playing field, I stand a significant chance of getting injured or getting beat.