Negotiating a Get Rich Slow Scheme


by Dave Miller

The easiest way to get rich quick is to accumulate wealth slowly. Well then, how does one accumulate wealth slowly?

First you need a plan. A solid, well thought-out, practically applicable plan.

This requires a solid plan, to preserve your precious capital, as you do not want to go backward. The retaining of capital is a key element of moving toward your goal. If you lose your initial capital you must not only gain it back but also recoup the lost time.

It must be well thought-out; you do not want to be jumping on some quick get rich band wagon that is ready to go bust.

The plan must be feasible. Over the ages three areas have proven successful; real estate, gold, and businesses. Most wealthy people own one of these three.

Don’t put all your eggs in one basket, just like your Daddy told you. But nevertheless get some baskets and fill them with eggs. Many people use that line to delay saving and investing.

The real estate basket is the topic of discussion today.

Enter John Schaub and his book Building Wealth One House at a Time.

Building Wealth One House at a Time – John Schaub

This book focuses on strategies for creating wealth through real estate by starting small – and making the right moves. Nationally known real estate expert and speaker, John Schaub, learned his craft in the best way possible–on the job, and through every kind of market. He published a great book titled Building your Wealth one House at a Time. In it he shows you how to buy homes with little money down using private or owner financing. By doing this he eliminates the whims of the banking world. The lender he says, is more concerned about getting his money back than earning high interest. In Chapter 6 he tells you to do what it takes to make the lender happy, over secure if you must.

Click this link to read an article I also wrote on keeping the your lender happy.

He recommends only single family dwellings, no fancy shmancy highfalutin projects. Just solid homes the typical family desires and can afford to live in.

The part that hit home for me was that he says buy one home a year. No more. He warns of the dangers of diving headfirst. By waiting a year to purchase your second investment property you will learn innumerable lessons before plunging in.

John uses two people to accumulate wealth; his renters and his lender or investor. His lenders allow him to buy the home and the renters pay for it. In the meantime he is accumulating wealth. Renting to long-term tenants, with financial incentives to pay on time.

By using leverage, i.e. owner financing, investors or the bank, he can purchase a home that otherwise he would have needed to walk away from. This then allows him to have a renter paying down on the mortgage. But remember, leverage is a two-edged sword. It can help you accumulate faster and it can take you down even faster. You must carefully consider the amount of leverage you are comfortable with and what makes sense in your situation.

Building Your Wealth One House at a Time is very concise yet an easy to read book. It lays out a blueprint that is easy to follow using graphs and figures.

Unique is his approach to focusing on buying houses in good-quality neighborhoods while simultaneously creating positive cash flow properties. John uses the Goldilocks theory when choosing a neighborhood: not too expensive and not too cheap. Go with a neighborhood where prices are just right.

Buy his book today. Read it. Implement a plan. Take the first (I know this is the hardest one but do it anyway) step. You will not get rich quickly but you will most definitely be headed in the right direction.

Now for the good news! John Schaub is coming to town. Well, rather to a town in New Jersey. Iselin.

John is presenting a one day class called “negotiating secrets of a Professional Buyer”. Saturday June 23 2012 from 9:00 to 4:00pm. You can register here: http://www.eventbrite.com/event/3199047437 I plan on being there so I hope see a few of you there. If anyone is interested in carpooling from Lancaster County just call me. Cell number 717-656-0749. Currently four of us are heading there. Join us.

A quote from John’s site:

John has survived, prospered, and helped his students to make money in every market since 1975. Come learn how to recognize which opportunities are right for you today and for the next five years at this most interesting time in our history. Get ready for an exciting and profitable future!

You can subscribe to my blog on the right side bar for farther updates. If you do so, you will receive a copy of my blog as soon as I post it thus saving you time by not needing to check back.

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Profiting by thinking of long term


John Schaub recently did an interview for the Herald-Tribune in Sarasota FL. I have previously blogged about John Schaub and his book Building Wealth One House at a Time. Here is a link to the blog I posted a year and a half ago. Click here.

John is a residential real estate investor that has my respect and admiration. He’s low-key but effective. I’ve talked to him on the phone and you’d have thought I was talking to my uncle. He freely shared his advice.

Follow his advice and you are bound to succeed.

Here is a link to the interview. Click here

The Club


 

by Dave Miller

The Club House Meeting Room

Every two weeks we meet, the clan and I, for our book club. The topic of discussion is the latest book that we are reviewing. Our motivation is to invoke discussion and thought. And successful we are. The discussions run deep and are extremely thought provoking. It is up building and educational for the most part, even though some of us shoot an occasional fiery dart. 

We fellow contrarians meet at either my house or the Kingsway Realty office depending on the weather. If it’s too hot and air-conditioning is needed we head to Kingsway. They allow us to use one of their conference rooms thanks to Curvin Horning, one of their agents and a member of our group. Otherwise the meeting place is at my house with a few cool summer evenings spent on the deck with the tiki lamps burning.

As time goes on the bond between members grows stronger. The camaraderie has grown to the point that I feel I’m really going to miss a good evening if I can’t make it. So attendance is high. Everyone enjoys seeing the others as we arrive. And we always leave in peace. Okay, my mind is usually still spinning but I depart holding no grudges.

Here is a list of topics we have covered thus far

  • Theology and economics; Calvin and Commerce
  • Building a master plan for life; The Pledge by Michael Masterson
  • I Pencil  by Leonard E Read
  • How an Economy Grows and Why it Crashes  by Peter D. Schiff
  • The Politically Incorrect Guide to American History by Thomas E Woods, Jr., Ph.D 

Our group is well versed on debate and if the point you present is weak you will get shot down. So making a good case is essential to survival. That or asking questions to tap into the knowledge of the group is a great way to sharpen your awareness on a particular subject.

If a question is presented, someone in the group will usually have good response. Whether or not the view is accurate the rest will critique it to verify its validity or to uncover the errors.

 It was a dream of mine, to create a group like this, for years. In 2008 I talked with a few people and in March of 2009 we got together. We discussed Gary North’s book Mises on Money. It was a great book for the time, being about monetary cycles and we were experiencing the beginning of this recession.

The group was not interested in continuing. So it came to a screeching halt. I was disappointed but not ready to give up. I picked away at creating this group, talking to more friends of like mind. Now in 2011 we have a group that looks fit to last.

If this is something you have interest in doing I encourage you to create a group of your own. With the reactions I have gotten from people it seems you could easily to start another group. Don’t let it take four years like it did me. If you have even a small urge, then start talking to people. You will soon have a group formed.

Related post: Intellectual Exercise Machine

 

Pay Yourself First


by Dave Miller

Every month we chose who we will pay. The gas man. Rent. Groceries. Yet we forget about ourselves. There never seems to be any left for me. Why do we lower ourselves to such a degrading standard?

As a business owner if I were to decide to pay my employees last, only if there is money left, I would be jeopardizing my business. The employees would not be motivated. They would probably vacate. So in order to keep employees motivated, I pay them first. I would rather have a creditor calling than lose my employee’s loyalty.

So how can I avoid this lack of motivation in my life? I say set up a savings account and on every pay day put 10% in to the account. Before you pay the bills. This is your pay. I suggest you make this your investment account. A fund for your later use.

If you are saying you can’t afford to do this then change something. Cut spending. Increase your income. Whatever you do, do not say it’s not possible. Do you want to work for nothing all your life? I’m guessing your answer is no. Then stop the madness and get your act together. Adjust, adapt and move forward.

Your motivation will increase as you realize you are building something. It’s not about only surviving the day. There is a bigger picture out there. Pay yourself and you will find it.

To accumulate wealth you need to invest. Many times we look to outside methods to get rich quick. We are grasping for the big break. We heard of a product or method that promised big returns and we are intrigued. Be careful.

Invest in yourself. Every pay-check you get, look at it, decide who you are going to pay.
Hold yourself to a higher standard. Are you last?

Make yourself first by starting to invest yourself

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Published in: on June 15, 2011 at 2:20 pm  Leave a Comment  
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Legal Profiling


by Dave Miller

Lately we read about profiling in a negative sense.  Police officers are getting a bad rap for doing their job.

Cops concentrate on the most likely suspects, narrowing their focus. The world calls this profiling. If a group of people have a history of crime they watch them closer. The reason they profile is obvious. It works. They do what gets results. Why wouldn’t they? Well, some agency decided it’s discrimination.

As an investor you are not regulated on profiling. Not yet, thankfully. So be discriminatory.

Create a profile of the type of property you a searching for. Base your criteria for the most likely profit making enterprises. Focus on this profile. Don’t waste time and energy on avenues that do not meet your criteria.

In real estate you hear of many ways to make money. National speakers make a lot of money telling you of a hundred different ways to capitalize on real estate deals. They open your mind to new ideas by getting you to think outside the box. This is good. You need to be open-minded. But select a strategy that fits you.

Your goal should be to narrow down your search and methods to a few options that fit your personality. Don’t try to be someone or something you aren’t. If you base your strategy on the results of others only, you are likely to burn out. And probably be unsuccessful.

Nevertheless, I do believe in following the lead of successful people. But do so only after you analyze yourself. Figure out what motivates you. What makes you tick? After you have found your niche, and only then, get the best mentor, with experience in that field, you can find.

Now start profiling. Narrow your search and let it rip.

This applies to not only to real estate. Business and charity are among many other areas of life in which this should be applied.

You will be much more successful once you have found your sweet spot in life.

Find it.

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Working or Networking, It’s Your Choice


by Dave Miller

Is networking worth your time? I made $5000 last week with my network. I’ve done it before and I’ll do it again.

I continue to be highly impressed with the power of networking. In many ways networking is more than just looking out for my best interest. It means reaching out to other people.  If they have needs you can help them with, then do so. You will create a relationship.

Networking is more than a list of people. It is people with whom you have a mutually beneficial relationship. Other business people, potential clients and/or customers. The better your relationship with these people, the stronger your network.

Everyone has a network. It is simply the people you know. Everyone one from your nearest and dearest to your neighbors’ plumber’s cousin who surely has a phone number you could track down if you cared to.

Not everyone puts a cognitive effort into building their network. This is a mistake.

Here is a list of ways to build a bigger better network.

Start an email list

Begin building an email list of people you know have interest in your product or service. For me this has been a huge eye-opener and success.

I send out an email when I have an investment opportunity to share. This results in about a dozen or more emails a year. I do not bombard my network, only the stuff that matters get sent out.

To be added to my email list just click here

Add tag lines to your emails and correspondences

Last fall I added the words, “Financial and Real Estate Solutions” to my email. The first email I sent to my email network resulted in a call from a fellow asking if I do hard money loans. I do. I set him up. He made over six thousand and I made over twenty-eight hundred in two weeks’ time. Needless to say we were both happy, all from a mere tag line.

Social networks

Facebook, LinkedIn, et al. Any way to let people know what you are doing. Telling them every juicy nugget of gossip fodder about your personal life is not necessary.  But by filling them in on your business dealings you will be amazed by how many people you know have similar interests.

Help  others

Step out and help people. By helping others you will blessed. Okay, here is the plug: My brother has a house in Bird-In-Hand he is trying to sell. I told him I would get him some exposure by mentioning it here.

Quaint and Quiet

It is a quaint 3 bedroom rancher with a horse barn. It is an ideal starter home or investment property. Here is the link. He is asking $149,000 and the previous renter paid $940 a month. It has the potential to get $1000 rent per month. This is an excellent John Schaub style home. You can call Allen directly at 717-295-0662. If you find Allen a buyer I’ll see that you pocket $500

Start a blog.

Every marketing guru says so, so I will too. Start a blog.

Newsletter

Write a newsletter. Keep your network informed. This could be your blog.

Referrals

People know people. If you are in the market to buy a rental property, then call people. Ask. Call your real estate attorney and tell him what you are looking for and ask him if he knows anybody that could help you. Call your banker. Call your investor friends. If you are selling, ask for referrals. Tell your people you will reward them if they give you a successful referral. Note the $500 reward mentioned above.

Quotable Quote: The secret of my success is a two word answer: Know people.– Harvey S. Firestone

Get Rich Slow Scheme


by Dave Miller

The easiest way to get rich quick is to accumulate wealth slowly. Well then, how does one accumulate wealth slowly?

First you need a plan. A solid, well thought-out, practically applicable plan.

This plan must be solid, to preserve your precious capital, as you do not want to go backward. The retaining of capital is a key element of moving toward your goal. If you lose your initial capital you must not only gain it back but also recoup the lost time.

It must be well thought-out; you do not want to be jumping on some quick get rich band wagon that is ready to go bust.

The plan must be feasible. Over the ages three areas have proven successful; real estate, gold, and businesses. Most wealthy people own one of these three.

Don’t put all your eggs in one basket, just like your Daddy told you. But nevertheless get some baskets and fill them with eggs. Many people use that line to delay saving and investing. Procrastination kills.

The real estate basket is the topic of discussion today.

Enter John Schaub and his book Building Wealth One House at a Time.

John Schaub

Building Wealth One House at a Time - John Schaub

This book focuses on strategies for creating wealth through real estate by starting small – and making the right moves. Nationally known real estate expert and speaker, John Schaub, learned his craft in the best way possible–on the job, and through every kind of market. He published a great book titled Building your Wealth one House at a Time. In it he shows you how to buy homes with little money down using private or owner financing. By doing this he eliminates the whims of the banking world. The lender he says, is more concerned about getting his money back than earning high interest. In Chapter 6 he tells you to do what it takes to make the lender happy, over secure if you must.

Click this link to read an article I also wrote on keeping the your lender happy.

He recommends only single family dwellings, no fancy shmancy highfalutin projects. Just solid homes the typical family desires and can afford to live in.

The part that hit home for me was that he says buy one home a year. No more. He warns of the dangers of diving headfirst. By waiting a year to purchase your second investment property you will learn innumerable lessons before plunging in.

John uses two people to accumulate wealth; his renters and his lender or investor. His lenders allow him to purchase the home and the renters pay for it. In the meantime he is accumulating wealth. Renting to long-term tenants, with financial incentives to pay on time.

By using leverage, i.e. owner financing, investors or the bank, he can purchase a home that otherwise he would have needed to walk away from. This then allows him to have a renter paying down on the mortgage. But remember, leverage is a two-edged sword. It can help you accumulate faster and it can take you down even faster. You must carefully consider the amount of leverage you are comfortable with and what makes sense in your situation.

Building Your Wealth One House at a Time is very concise yet an easy to read book. It lays out a blueprint that is easy to follow using graphs and figures.

Unique is his approach to focusing on buying houses in good-quality neighborhoods while simultaneously creating positive cash flow properties. John uses the Goldilocks theory when choosing a neighborhood: not too expensive and not too cheap. Go with a neighborhood where prices are just right.

Buy his book today. Read it. Implement a plan. Take the first (I know this is the hardest one but do it anyway) step. You will not get rich quickly but you will most definitely be headed in the right direction.

Quotable Quote: It is hard to fail, but it is worse never to have tried to succeed. – Theodore Roosevelt

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