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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!

The Confidence Game

If you have owned your own business, you have probably struggled with self-confidence from time to time. You may even relate to and have suggestions for one of our listeners.

We received an e-mail from Beth, who is in the process of starting her own consulting company. She says her problem is that there’s a little voice in her head that keeps pointing out what she doesn’t know. It’s paralyzing her progress, and she would like some advice on how to get past this.

Don’t feel alone, this is a common problem. We congratulate Beth for having the courage to make this move. George has a theory that, as an entrepreneur, the highs are higher and the lows are lower when own your own business. So welcome to the roller coaster!

Here are some tips on how to get past the lows by giving yourself a boost in confidence:

Don’t expect perfection
Allow yourself to be human, by setting achievable goals. For instance, many people feel they don’t know the financial side of business. Read books, take a class, or find someone you can team up with. Do what you do well and let others help you so that you can get started and tackle your challenges.

Rebut the cruel inner critic
Counter your negatives with positives. For example, when that little tells you what you don’t know, tell it what you do know. When it tells you why you shouldn’t take a risk, tell it why you should. Focus on what you can do and what you know you will do.

Be Your Best Friend
Friends tell you what you need to hear, but when they do, it’s in a caring way. We help our friends get through tough situations in encouraging ways. So why not offer yourself suggestions in the same manner? Don’t get down on yourself and be critical just because you didn’t do something right or because you don’t know something.

Meditate
It’s important to practice thinking positive. Take a break, think about a task you completed that made you feel confident, and remember how good it felt. When you go to bed, focus on three good things that you did well that day. It’s a great way to end the day, by focusing on what you have accomplished.

Our quote today is by Stan Smith.

“Experience tells you what to do; confidence allows you to do it.”

Get out of your own way…you’ve got places to go! Tomorrow we’ll discuss getting the money off your back. We’ll share some recent research on monkeys that you’ll find interesting.

Stretch Yourself Anew

Yesterday, we discussed how to live without being perfect. We told you to practice the
“75% solution” so you have more time to enjoy life. Today we’ll discuss how to stretch yourself anew.

Let’s face it – we’re all busy. As we age, our careers get more demanding. We have more family responsibilities. Real life gets in the way of stretching ourselves in new ways. We want to give you four questions to ask yourself to rediscover joy in your life.

Question 1: What’s something you used to love to do?
There are things you used to do that got pushed aside – not intentionally, but accidentally. Something had to give. We have a friend who loved music when he was younger. Recently, he bought a guitar and started playing again. He loved it! Now he’s in a band and has an amazing collection of valuable guitars!

Question 2: What class, outside your major, did you really enjoy?
Or another way to think about it – was there a class you always wanted to take? Another friend’s job involves a lot of analysis. In college, he took a creative writing class as an elective. Now he’s taking another writing class at his local community college. He loves it! He says it’s a complete escape.

Question 3: What do you have sitting around the house?
You may have to dig deep, but there are probably remnants of old hobbies somewhere in your house. Why not break out the tools of your craft? Mary-Lynn says she has rediscovered paint-by-number. She’s learned to keep her brushes clean and in plain sight. That’s her reminder to enjoy this favorite activity from the past.

Question 4: What did you used to read?
Take a trip to your local library or bookstore. Browse the magazine section. What strikes you? George used to subscribe to a couple of fishing magazines. Now, he’s rediscovered fishing with a new twist – it’s a great time to relax and reflect, even if he doesn’t catch anything!

Stretching yourself by recalling those things that used to bring you joy rounds you out. You’ll find it helps your career and your family life. You’re more interesting. You’ll have new energy. You may even find a clue that will take your career and your life in an exciting new direction.

Our quote today is by the great writer and poet, Oliver Wendell Holmes.

“Man’s mind, once stretched by a new idea,
never regains its original dimensions.”

Take an old idea and make it new again. Stretch yourself and expand your mind. Tomorrow, we’ll discuss building self-confidence. Until then, here’s to your bigg success!

The Role Of Role Playing

In our last blog, we told the story on storytelling. We discussed finding the right yarn and offered tips on telling your tall tale well. Hear the story.

Today, we’ll discuss how to use role playing, both professionally and personally.

We’re not pretending to be the have all and be all of role play discussions here. We’re talking about a specific use of it. So let’s define what we mean when we say role play:

Practicing human interaction before you actually do it.

Rehearsing in your mirror is better than nothing, but it’s not role playing. With role playing, you’re going to have a mentor, a peer, or a buddy. When done right, it’s a much richer experience than simply rehearsing.

Practice makes perfect.
Imagine an athlete who never practiced. Or an actor who never rehearsed. Would you expect them to rise to the top of their profession?

So why do we think it’s any different for us? It’s not. By role playing, you’ll enter situations with more confidence, because you’ve been there before. You’ll face less stress and perform better. You’ve made the unfamiliar familiar.

Simulate the situation.
Create the exact same environment. Come as close as you possibly can to setting up the same circumstances you will face in the actual situation. This really needs to be done with you and another person face-to-face. You can role play over the phone (especially a phone call), but it’s much better in person. Let’s look at some examples of situations that you might want to role play.

Annual review / ask for a raise
Are you going to be sitting or standing? How about your boss? Most likely, you’ll both be seated around a desk. So when you role play, sit around a desk (or something you can pretend is a desk).

Sales call
You’ll probably be standing, at least at first. Practice your greeting while standing. Practice down to the handshake. You want a handshake Goldilocks would like – not too hard, not too soft.

Service call at homeowner’s residence
Practice ringing the door bell. What if the door bell doesn’t work? Practice knocking. Where will you stand as the homeowner opens the door? What will you say?

You can use these same techniques personally. For example, if you’re a parent, you may want to role play an important conversation with one of your kids. Personally or professionally, role playing is a great preparation method. Practice it, then do it.

Our quote today is by the great tennis player, Arthur Ashe.

“One important key to success is self-confidence.
An important key to self-confidence is preparation.”

Willingness to prepare helps you succeed. Role play your way to a great day.

Tomorrow’s the day before Thanksgiving here in the U.S. So we’re going to talk about ‘taters. We’ll ask, “What kind of ‘tater are you?”

Until then, here’s to your bigg success!

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