Get Real Estate

Last time, we talked about how to get started in your own business or franchise. Today we want to discuss how to jump start your passive income by investing in rental property.

You may ask why you should think about investing in real estate now. The daily news is ripe with horror stories of houses in foreclosure, people getting slammed by increases in their adjustable-rate mortgages, and others struggling to sell their houses in this down market.

Believe it or not, that’s why we think now is a great time to buy! Relative to historical norms, things are not as bad now as they were good a little while ago. We’re comparing now to one of the most lucrative markets for sellers in history! Take time to note the word “sellers” in the prior sentence.

There’s less competition for property today. It’s a buyer’s market.
That’s why we think you should buy now.

We’ll assume you’re convinced – where should you start?

Start by buying your own home.
In the past, financial planners often recommended renting and investing in other assets, such as stocks. Historically, stocks have outperformed real estate. The problem – the investing part was voluntary.

Buying a home is a commitment. It forces you to save. And if you’re like most of us, you need that “forced” part. So as you pay your mortgage, month after month, you’re reducing your outstanding debt. That’s why, on average …

… homeowners are significantly wealthier than renters.

So owning your own home is the foundation for creating wealth. Now you’re almost ready for the next big step. Remember our discussion of getting aggressively passive? You’ve found money from watching your spending and paying off debt. Keep piling that money up to prepare for your next move.

Buy your first investment property.
Your next real estate purchase may be your first rental property. Or it may be your next home. Consider moving up to a nicer place and renting out your first one.

Either way, be sure you have more money coming in than going out. Hook up with a good realtor who can help you determine what your rent should be. Now, estimate your bills – property taxes, insurance, mortgage payment, and all the others. If you don’t project having money left over, don’t buy that property – find another one!

Don’t start without a cash stash.
Owning real estate comes with its risks. For example, what if your property suddenly requires major repairs? As with any business, don’t invest in real estate unless you have a cash stash. If you don’t have one, find a partner who does. Otherwise, you may lose everything.

Our quote today comes from the Australian author, Noel Whittaker.

“Becoming wealthy is like playing Monopoly …
… the person who can accumulate the most assets wins the game.”

So roll the dice, take a chance, pass GO, and collect more than $200! It’s not just play money!

Next time, we’ll look at some of the things that can go wrong – lessons from a bankrupt business owner, who happened to be a real estate speculator. Until then, here’s to your bigg success!

Start a Franchise or Business to Create Passive Income

Today we want to look at two ways you can jump start your passive income by starting your own business.

Let’s not kid ourselves. Starting a business can be risky. You’ve worked hard to build a nest egg. You have bills to pay. Kids to put through college. A retirement to fund. You don’t want to lose what you’ve worked so hard to gain.

If we can talk you out of starting your own business – so you avoid the financial and emotional turmoil that comes with it – we’ve done a good deed. Alternatively, if after reading this, you’re more determined than ever to go for it – you’ve got a big knot in the pit of your stomach – we’ve served you well. Either way, we want to get you off the fence.

Owning a business is not for everyone. You have to be willing and able to take risk. Numerous studies show that wealthy people accept more risk than the average person. You either have to accept some risk or accept a lower net worth.

Let’s look at two scenarios that allow you to start your own franchise or business, yet minimize your risk:

  • You have the money, but no time.
  • You have a job you love. You want to keep it. That doesn’t mean you can’t enjoy the benefits of passive income from business ownership. Find someone with talent to manage the business for you. But you want to be sure they are careful with your money. How do you do that? Structure your deal so they have more to lose than you do. Keep them up at night, so you can sleep. By aligning their interest with yours, you’ll be likely to develop that passive income you want..

  • You have the time, but no money.
  • You have that burning desire to own your own franchise or business, but you’re missing one key piece – money. Find a partner with money. But beware – you’ll be the one staying up at night! If you can replace your current salary and share in some of the profit, you’ll be jump starting your net worth.

Accepting risk is one thing. Learning to manage it is another. Successful business owners are good at controlling their risk. You need to develop this ability before you start out on your own, no matter which scenario you choose.

We encourage you to sign up for our free newsletter, “Bigg Success Weekly.” It’s published every Friday. This coming Friday, in our Home Office article, you’ll learn about a solopreneur who has built a business worth over $3 million in sales. Check it out!

Our quote today is by Dale Carnegie.

“The person who gets the furthest is generally the one who is willing
to do and dare. The sure-thing boat never gets far from shore.”

Next time, we’ll look at how to build a passive income through income-producing real estate. Until then, here’s to your bigg success!

Getting Aggressively Passive: Creating A Passive Income That Sets You Free

Last time, we offered some tips for networking your way through your upcoming holiday parties. Today, we want to talk about one of the most important gifts you can give yourself – a passive income.

Not along ago, we asked you to visualize your dream life – a life where time and money were not an issue. You may think that’s just for fun. It’s not! We’re serious. You can spend your time the way you want. You can be free!

You’re free when your passive income equals the costs of your desired lifestyle.

For the sake of clarity, we define passive income as your money making you money. If you have enough passive income, you can spend your time however you want. You don’t have to work at all, if you don’t want. Or, you can work on your passion.

So, let’s look at the four steps you can take to get aggressively passive and create a passive income that sets you free. The key is to constantly keep your goals in mind so you make the best choices each and every day. For example, if you want to be free sooner, rather than later, you may choose to spend your money differently. Now you have a reason to do so – that dream life you visualize.

Step 1: Purchase with purpose
What if buying that awesome plasma television that you just saw advertised on sale in today’s paper means you have to postpone your new life by a year? That status car may not mean as much as getting to spend your time how you want.

Step 2: Look at the cumulative effect of your decisions
Review your daily routine. $5 here, $5 there soon adds up to a lot of money. Do you eat out every day? Buy a cup of coffee? In his excellent book The Automatic Millionaire, David Bach calls this your “Latte Factor”.  Find one thing that you’re willing to give up now to get to the future you want sooner.

 Step 3: Pay off debt
The reason for the first two steps is to get the money to pay off your debt. Pick one account – ideally it’s your debt on which you’re paying the highest interest rate. Take the money you’re no longer spending from Steps 1 and 2 and use it to pay off your debt.

Don’t stop now … take the money you were using to pay off your first debt, plus the extra money you have from Steps 1 and 2, and use it to pay off your next debt. Repeat until all your debt is paid off.

Step 4: Jump start your passive income
Historically, the two best ways to do this are through owning your own business and investing in income-producing real estate. We’ll look at each of this, respectively, in our next two blogs.

Our quote today is by Groucho Marx.

“It frees you from doing things you dislike.
Since I dislike doing nearly everything, money is handy.”

Next time, we’ll look at how to build a passive income through your own business. Until then, here’s to your bigg success!

Mingle Bells: Tips For Networking At Your Holiday Party

Yesterday, we discussed a recent study on monkeys and what you can learn from them about rationalizing.

Today, you’ll learn four tips to network your way through your holiday parties.

Mingle bell #1:  Break the ice.
Ideally, someone introduces you. In fact, look for people you know talking to people you don’t know. That’s the easiest way to get introduced to someone new.

If that option is not available, just think of an interesting opener. You might comment on something they’re wearing. Or discuss the food, the drink, or the place that you’re at. If all else fails, talk about the weather! 

Mingle bell #2:  Find something in common.
Find out how they know the host. Obvious, isn’t it? But with that information, you may get a clue to other people, places or things that you have in common with the person you just met.

When all else fails, fall back on our humanity. Check up on current events before the party, particularly lifestyle news. You can always make fun of the celebrity du jour!

Mingle bell #3:  Take a genuine interest in them.
Some people network solely to do more business. They’re looking for money with every contact. In our opinion, this is a mistake for two reasons. First, you don’t get to know some of the best people you’ll ever meet. Second, people see through it quickly.

Listen intently. Remember two ears, one mouth? You’ll learn more than you ever imagined, simply by letting others talk about themselves.

Mingle bell #4:  Make a lasting impact.
We live in a society hell-bent on moving fast. Speed dating came first. Now we have speed interviewing and speed networking. An article recently suggested that if you spend more than two minutes talking to someone you just met, you’re wasting your time. We think this is bull caca. Yeah, we checked the spelling … according to Webster, we got it right!

You shouldn’t force it. If there’s a lull in the conversation, find a graceful way to exit. But keep your goal in mind – to find new people with whom you connect. You’ll be more effective thinking quality, rather than quantity.

Use these four tips to take a sleigh-ride to successful networking!

Our quote today is by an unknown author.   

“How far we travel in life matters far less than those we meet along the way.”

So mingle your way through the holiday. You’ll make spirits bright!

Next time, we’ll get aggressively passive when we talk about how to build a passive income that sets you free.

Until then, here’s to your bigg success!

Get The Monkey Off Your Back

Yesterday, we discussed how to build your self-confidence. Today we’ll talk about a recent study on monkeys and what you can learn from it.

Yale University recently released the results of a study on the behavior of some monkeys when given a choice of M&Ms. The researchers broke their experiment into the following four steps:

Step 1 – The researchers gave each monkey an assortment of M&Ms.

Step 2 – They let each monkey choose their three favorite colors. Let’s say that “Spanky” chose red, blue and green. From all appearances, Spanky liked all three colors equally.

Step 3 – Then, Spanky was only shown the red and green M&Ms. Spanky chose the green one.

Step 4 – They showed Spanky the previously-rejected red  M&M and the blue M&M. Spanky chose blue; he rejected the red one again. In a disproportionate number of cases, the monkeys rejected the M&M they had discarded in Step 3. The researchers conclude that this reinforces the monkey’s previous decision. This, in spite of the fact, that he had no preference between the three initially. It turns out that monkeys rationalize their decisions!

Here are three things we take away from this:

  • You’re prone to rationalize. It’s comes naturally!
  • Think about this as you’re making decisions today. Don’t let past decisions unreasonably cloud current choices. You may be factoring in a bias from your prior selections. You’ll make better decisions today, if you’re aware of this inclination.

    For example, we have a friend who failed in business when he was younger. Now, even though he is extremely bright and has gained relevant experience, he won’t even consider going into business again. He (and his family and many friends) are letting his prior experience cloud his current judgment.

  • If you can, rationalize and move on!
  • Time and energy are often wasted second-guessing ourselves. Take a lesson from the monkeys at Yale. Focus on what’s important now, not on what happened yesterday. Time is precious – spend it productively.

    As humans, though, our decisions are often more complex than demonstrated by this study. What do you do when a past decision is affecting your life today?

  • If you must, take action immediately!
  • If a decision from your past is haunting your present, change course. You may need to do some research; do it now – the sooner, the better. Do what’s necessary today to create your dream future.

    Take someone who has racked up a huge credit card debt. He or she should stop using credit cards immediately, find ways to save money, and get a temporary, part-time job if necessary. Rationalizing will only make it worse. Do something about it now!

That’s what we can learn from this barrel of monkeys. Rationalize it if you can. Change it if you must. Either way, move on!

Our quote today is by pastor and speaker, Ralph Washington Sockman.

“Let us not bankrupt our todays by paying interest on the regrets of
yesterday and by borrowing in advance the troubles of tomorrow.”

Get past the monkey business of the past. Make today your day! Tomorrow, we’ll look at some tips for networking your way through the holiday season … and every season. Until then, here’s to your bigg success!