I use the term investing loosely here, because real estate wholesaling is a form of flipping assets to create a capital gain. You may have seen shows on television of accredited investors flipping houses on the market. The shows cover some of the highlights of the process involved in flipping a real estate investment for a retail profit, including the impressive before/after photos and all the contractors needed to get the job done. Wholesaling is not so glamorous or exciting, but there is far less risk involved. This is the ideal real estate investment strategy for earning experience in the market and building investment capital that could be used towards other types of real estate deals, like flipping homes (which can come with many unforeseen overhead costs).
The game of poker brings out some interesting characteristics in players, and if you pay attention you get an illustrative demonstration of the subconscious money managing habits of those players (except money is represented by chips in this context). Of course this is certainly a bold statement when taking into consideration the boundaries in which these “financial” decisions are made, in regard to the rules of Poker, but there’s empirical evidence to support this risk reward theory. I believe what you get a glimpse of at the tables, is a reflection of an individual’s subconscious process of managing risk and reward. You get a firsthand look at the monetary emotional consciousness (m.e.c.) and financial thinking cap, in action. There are essentially two types of financial personalities battling it out in the game of poker. There are the gamblers ranging from degenerates to casual/social, and then there are the various levels of investor/business minds at the table.
In “How to Offer a Service without Giving up Your Time”, I explained the importance of avoiding a situation where you are stuck wearing many hats. This is common among d.e.m. (do everything myself) business individuals, and is fine as long as you value the time you invest in your business. For the majority of us entrepreneurs, who like to enjoy life on our own terms, we want to retain as much of our free time as possible. This is a job for the players that make up an entrepreneur’s entourage and personal power team (p.p.t). Consider them a band of heroes, each equipped with their own skills/power, that save your time. An intelligent entrepreneur may bust their ass bootstrapping their business during its early start-up phase, but as business grows, the entrepreneur’s team must also grow. It’s like a plant that out grows the pot it was planted in, when it was just a seed. The entourage or the p.p.t. is a natural byproduct of a successful business and/or an intelligent entrepreneur scaling to a new level. All the players of this power team have their purpose, and there will be a time and place in which you will utilize each, and prosper together.
Many of you have the opportunity to change your lifestyle, and start building momentum towards your financial goals just by making changes to your income/expenses. I am not talking about getting a second job, or even starting a business. I talk a lot about ways to create income streams, but what about increasing cash flow? Creating income can be a daunting task, that requires investment risk of one’s resources, and increasing cash flow requires discipline. Tuning your income streams and cash flow to the right frequency can make all the difference in receiving a clear signal to reaching your financial/lifestyle goals. Too much adjustment of one over the other can lead to that signal becoming fuzzy or distorted.
I feel a big part of Bitcoin's success derives from more of a political standpoint rather than a viable investment option. With garnered support from celebrity leftists, on top of mainstream libertarians, the media has turned investing in Bitcoins and other crypto currencies, into a kind of “Don’t Tread on Me” political statement. With all the tribulations the global economy is facing today, thanks to central banks, it’s no wonder why so many people are eating up the political hype surrounding the Bitcoin and how it represents a revolutionary movement. Movements can bring great changes, but they can also flop, and as an investor, I have to ask myself, is Bitcoin an investment trend that is here to stay and revolutionize the marketplace, or is it just a maturing fad fueled by the ongoing hype that promotes it?
One man’s trash (junk) is another man’s treasure. This is the sentiment behind the idea of turning junk metal into precious metal or value. This concept of creating value is good for the environment and good for your wallet. In part one I explained how to identify this valuable junk and shared some resources I use to scale their value. Now, I want to share some methods you can put into action today that will help you get your hands on some of this valuable junk metal. Using your scrap/junk metal earnings and reinvesting in precious metals (Platinum, Gold, Silver), is what I call turning junk metal into precious metal. The reason why I think this is a good strategy to incorporating precious metal commodities into your asset portfolio is due to the amount of hands on experience/knowledge you gain as a result of seeking junk metal. Not only will you gain the ability to see/calculate an estimated value of any “junk” you find, but also an appreciation for the intrinsic value these metals have obtained throughout the industrial age onward.
Precious metals are a commodity that acts as a hedge against cycles of economic inflation (when currency is depreciated). They are fine metals like gold and silver that are stamped .999 or .9999 pure. The value of these precious metals fluctuates with the market, and their going rate in the market is called “spot” price. Now if you trade shares of the paper asset form of these metals you will pay “spot” price per share. If you want to physically own your own precious metals, than you will be paying spot price plus a premium.
This isn’t the good ‘ol days of the 1950’s where an ounce of gold would set you back about thirty five dollars (yes, I said $35)! People were also only making about $1.50 an hour for labor back then, but I’ll weigh in on that topic in another post. Investing in precious metals today can quickly eat away at your hard earned income, especially if you are trying to stack the physical asset form and are paying those dealer premiums (which this is the most recommended form of investing in metal commodities). If you are interested in adding precious metal commodities to your asset portfolio, but don’t have a lot of money to invest, I suggest you start looking for junk metal!
Understanding the differences between capital gains and residual income should be common knowledge for anyone, let alone an entrepreneur. Unfortunately, from elementary to high school, we are conditioned to accept capital gains as the most realistic means for making a living. Each have their pros and cons, but I want to make it very clear that it is a matter of choice as to how you make your living. I think people tend to lean towards capital gains for reasons I explained in “If Money is Too Taboo then Try Adding a Dash of Value”, where I was talking about how money is stigmatized as the root of all evil and how it should be “earned”. If you are self-employed and making a living at what you are passionate about, then I can see how that mentality could work for you. In “Entrepreneurs Create Options to Gain Control” I explain why entrepreneurs are interested in opportunities that create residual income. Residual income is about gaining control, and attaining control is about gaining freedom, but the best way to make that happen is to create options that offer value.
An entrepreneur is an individual who generates ideas or acts upon the ideas of others. One of the most important skills of any entrepreneur is their ability to raise the necessary capital to bring life to those ideas. Whether they’re trying to close a real estate deal, launching a new product, or starting a new business, there are several creative ways of financing a venture that can help the entrepreneur avoid having to put an idea on hold or miss an opportunity. OPM (other people’s money) is a cornerstone of creative financing, and plays an integral role for a healthy economy; as ideas & capital are the two factors that drive it.
All businessmen double as salesmen, but not all salesmen double as businessmen. If you aren’t able to sell then it is going to be very difficult to go into business for yourself. Selling in this context doesn’t just mean making money through direct exchange of tangible value, but also through the ability to sell ideas. The businessman is the individual who will create a system that can deliver that tangible value, and can bring ideas that were once only thoughts of one’s imagination, into reality. The following are some characteristics I have noticed, since becoming an entrepreneur, that help me identify a salesman from a businessman. The reason why I believe this is important is because each are driven by different agendas and if you are trying to work with others to reach certain goals, than it is imperative for the success of said goal(s) to make sure you are aligning with the right individuals that will help you reach those goals.
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