Hello Friend,

If this is your first visit to SoSuave, I would advise you to START HERE.

It will be the most efficient use of your time.

And you will learn everything you need to know to become a huge success with women.

Thank you for visiting and have a great day!

Beginners guide to becoming WEALTHY

STR8UP

Master Don Juan
Joined
Aug 10, 2002
Messages
6,937
Reaction score
125
I started to write this post and it got too deep into more advanced stuff. So here is the revised version. If I get a chance I will clean up the other one and put it up as well.
_____________________________________

How do I become wealthy? The answer to this question has most certainly eluded all but a select few individuals. Those few people have developed a talent for amassing riches. Others are content to live their lives in the middle class, supporting the poor by earning a reasonable sum of money just to give it up in the form of taxes. And the poor....I hate to say.....bring it upon themselves. They lack the motivation to make positive changes in their life.

The first thing you must do to begin your journey toward success is study. I'm not talking about signing up for a course at your local community college. I'm talking about purchasing books and tapes by people who know success. Your first purchase should be Rich Dad, Poor Dad, by Robert Kiyosaki. This will teach you the fundamental differences between the minset of the rich versus the mindset of the poor and middle class. Be forewarned; the information you will be reading is likely CONTRARY to everything you THINK you know about acquiring wealth. If you are able to keep an open mind you will eventually be able to comprehend what he is saying. If you understand immediately, congratulations. You are well on you way to becoming successful. Once you understand the wealthy mindset, it's time to learn the nuts and bolts.

Your next purchase should be Building Wealth, by Russ Whitney. In his book Russ outlines the steps you need to take in order to achieve financial independence (make enough money from your investments to be able to quit your job and concentrate on making REAL money). If you put his ideas into action you will be well on your way to immeasurable wealth.

His methods revolve mainly around real estate. There are other ways to acquire wealth, but none as quick and safe as purchasing real estate with no money down. The stock market is another vehicle used by many, but requires an initial capital investment. Sure, you can start with a couple hundred dollars. But the rate of return you would have to earn to make it compare to real estate, over a given period of time, would be astronomical. Business has certainly created a multitude of millionaires, but it is tough to get started in and takes much trial and error.

I have been fortunate enough to have experienced all three. And despite the fact that I started a business last year that looks to have the potential to eventually make me millions, I would still recommend real estate. It took me 6 years to make any money in business. It took less than a year to make money in real estate.

Think of it this way. Lets say you are able to purchase your first piece of income producing property using a no money down technique. Lets say you were able to buy a $100,000 house for $90,000. It happens everyday. You just earned a paper profit of $10,000, without ANY initial investment.

Small effort, large return. That's the name of the game.

I can hear the naysayers now. "But you may not be able to turn around and sell it immediately....real estate commissions would eat up the profit....blah, blah, blah". What they don't realize is that you have already done your homework, and the property you just purchased will be leased to tenants for $1200 per month, while your mortgage payment and other expenses total only $900. You have a POSITIVE CASH FLOW of $300 every month, to do with as you choose (Think FINANCIAL INDEPENDENCE).

They don't realize that you are going to HOLD this property for at least several years. While your tenants pay all of the expenses. You should be able to increase the rent every couple of years (which means that $300 turns into $400 turns into $600 per month and on, and on...). Meanwhile, the VALUE of the property has increased. Instead of being worth $100,000, after a few years it may be worth $120,000, or $140,000.

Another consideration is TAX BENEFITS. Since I started purchasing real estate and have become self employed, I have paid VERY little in the way of income taxes. I paid MORE taxes when I worked as a bartender.

I collect dividends from my corporation, so I pay NO social security tax! This is why the middle class end up supporting the poor. The don't purchase income producing assets that provide a tax shelter. Could you think of a few things you would rather do with your hard earned money than support deadbeats? I can. And do.

So you have purchased one income producing asset. Your confidence is through the roof! What do you do next? BUY ANOTHER ONE! And keep buying them. If one property increases your net worth by $40,000 over five years, what could TEN properties do? You get the picture.

I purposely did not go into detail regarding the mechanics of purchasing real estate for no money down. Building Wealth will teach you several methods. I would also recommend courses by Carleton Sheets and Robert Allen, two more legends in the real estate game. Read, read, and read some more. I couldn't possibly include the volume of information necessary to get started in this post. That's what the books are for.

But remember, all of this knowledge will do you no good unless you take action. Start by driving through neighborhoods you might be interested in. Make some calls to owners of for sale by owner properties. You aren't committed to anything until you sign a contract. You will learn much by simply talking to people.

A few things to remember:

1) Ignore anyone who says it can't be done. Your well meaning parents don't know everything.

2) Protect your credit score as you would protect your life. Wealth cannot be obtained without debt. Your ability to borrow large amounts of money is KEY to retiring wealthy. A million in debt is a million in net. Investment debt is GOOD!

3) Network! Meet as many influential people as possible. I will guarantee you that most successful people would be more than happy to suggest a few pointers to a seriously interested newbie.

4) Persistence is a must! If you think that you will become super wealthy overnight, don't even waste your time trying. In the beginning it will seem as if you are doing a lot of work for little pay. Give it time. Time is your best friend.

5) Take action! This is the toughest step in the entire process. This is where most people fail before they even begin. The law of inertia will take over after your first successful deal.

I hope this information helps. If you have any questions I'll do my best to answer.
 

Demon

Master Don Juan
Joined
Oct 14, 2001
Messages
3,025
Reaction score
7
Another key to getting wealthy is to know the right people. Remember: it's not what you know but it is who you know that counts.
 

Levex

Master Don Juan
Joined
Oct 31, 2002
Messages
1,088
Reaction score
8
Location
LA
are you...selling these tapes and books or someting?
 

oreo_renegade

Master Don Juan
Joined
Aug 18, 2002
Messages
1,020
Reaction score
0
Location
ash nc US
Of course you could become a smuggler of Cocaine from Cuba, if all of that seems like hard work.

Because i mean , DAMN, if I dont have a 20 rooms house, and 50 cars, i kno I would just DIE from mild discomfort.

I loathe how you use the words "succesful" and "wealthy" as synonyms.

Succes is not measured by the ounces of gold you have in your teeth, you seem to be forgetting that.
 

Demon

Master Don Juan
Joined
Oct 14, 2001
Messages
3,025
Reaction score
7
Stupidity is measured by the amount of grammar, spelling, and general errors in your posts though, oreo.

Aside from oreo's practically inane comment, hey DIESEL where could I buy more of Tanter's stuff? Or is there anymore political literature I could buy that you would recommend to me?
 

darkhorse

Senior Don Juan
Joined
Sep 27, 2001
Messages
439
Reaction score
1
What they don't realize is that you have already done your homework, and the property you just purchased will be leased to tenants for $1200 per month, while your mortgage payment and other expenses total only $900. You have a POSITIVE CASH FLOW of $300 every month, to do with as you choose (Think FINANCIAL INDEPENDENCE).

A catch here (a big one) is the tenants. Bad tenants can make your life hell, even if you don't live in the same building. Late rent, complete disregard for your property, etc. Evicting a bad tenant can take over a year with them paying no rent and you not getting any money (even if you sue them - you can't get water from a rock). Thorough background checks and references are key, but even then you can never take the "crapshoot" element out of accepting a tenant. And if you're going to have a collection of 10+ moneymaking houses it's almost inevitable that you'll hit craps at some point.

Also, don't forget the upkeep of these 10+ houses. If you have that many houses there will be almost a constant need for repairs, improvements, maintenance, etc. Factor in lots of planning and either sweat (if you're handy and do the work yourself) or payments (if you contract out the work).

You can definitely make money by being a landlord, but it's definitely not a "sit back and watch the money roll in while you do nothing" situation.
 

STR8UP

Master Don Juan
Joined
Aug 10, 2002
Messages
6,937
Reaction score
125
Originally posted by Demon
Another key to getting wealthy is to know the right people. Remember: it's not what you know but it is who you know that counts.
It is both. You will never become wealthy without being able to interact with others to some degree. That's why now that I have the mechanics of investing down I am studying social psychology to learn how to better deal with people.
 

STR8UP

Master Don Juan
Joined
Aug 10, 2002
Messages
6,937
Reaction score
125
Originally posted by Levex
are you...selling these tapes and books or someting?
I'm sure that eventually I will.

The problem is when you sell something of this nature you MUST sell the sizzle, not the steak. People need to see that the person selling them something has reached the magical "million dollar" landmark. They want to see the huge house with the F360 Spyder in front.

You can't sell them on the intangible concept of wealth itself. You gotta make them salivate over the flashy stuff. Until my net worth hits a million I would rather not subject myself to any investigation, cause thats what would happen. Remember McCorkle?
 

STR8UP

Master Don Juan
Joined
Aug 10, 2002
Messages
6,937
Reaction score
125
Originally posted by DIESEL
Golden advice. Can you get the Russ Whitney joints on Amazon?

D
Yep. Anyone with $11.20 + s&h can get started on the road to wealth.

I use Amazon all the time. You can read reviews and they recommend books by other authors. I went to the site last week intending to buy three books and they sold me on six. Aren't they one of the few web based companies that are making money? If so I can see why.
 

STR8UP

Master Don Juan
Joined
Aug 10, 2002
Messages
6,937
Reaction score
125
Originally posted by oreo_renegade
Because i mean , DAMN, if I dont have a 20 rooms house, and 50 cars, i kno I would just DIE from mild discomfort.
You can go live in a cardboard box for all I care. I aspire for a bit more.

I loathe how you use the words "succesful" and "wealthy" as synonyms.

Succes is not measured by the ounces of gold you have in your teeth, you seem to be forgetting that.
You have a point. Success is however you define it. My thread, my definition.

I sense a condescending tone. Could it be because you have been taught that wealth is 'bad' or 'dirty'? I see this all to often. Poor parents teaching their children that in order to become wealthy you have to be an evil greedmonger. That is far from true. And tv shows like The Simpsons do a great job of reflecting and perpetuating this attitude. I believe Rich Dad, Poor Dad touches on this subject. Read it and learn.
 

STR8UP

Master Don Juan
Joined
Aug 10, 2002
Messages
6,937
Reaction score
125
Originally posted by StuartScott x 2
If you listen to my gambling tips, you can become wealthy justlikethat.
I wish it were that easy.
 

STR8UP

Master Don Juan
Joined
Aug 10, 2002
Messages
6,937
Reaction score
125
Originally posted by darkhorse
A catch here (a big one) is the tenants. Bad tenants can make your life hell, even if you don't live in the same building. Late rent, complete disregard for your property, etc. Evicting a bad tenant can take over a year with them paying no rent and you not getting any money (even if you sue them - you can't get water from a rock). Thorough background checks and references are key, but even then you can never take the "crapshoot" element out of accepting a tenant. And if you're going to have a collection of 10+ moneymaking houses it's almost inevitable that you'll hit craps at some point.

Also, don't forget the upkeep of these 10+ houses. If you have that many houses there will be almost a constant need for repairs, improvements, maintenance, etc. Factor in lots of planning and either sweat (if you're handy and do the work yourself) or payments (if you contract out the work).

You can definitely make money by being a landlord, but it's definitely not a "sit back and watch the money roll in while you do nothing" situation.
You are correct. That is why you must do your homework by reading books and researching the properties carefully. And DEFINITELY choose you tenants wisely.

I have had tenants drag out an eviction up to three months. When we went into the unit once he was out we discovered that he had emptied his waterbed on the floor and poured a gallon of bleach on the carpet. He also happened to be a disgruntled crack addict employee of mine, but that's a lesson for a thread on business. I have my share of horror stories, believe me. The point is though that you can't let things discourage you. It will be rough in the beginning but things get much better as time goes on.

You should be factoring in the vacancy and collection loss and repair expenses in before you purchase the property. That's why positive cash flow is called POSITIVE.

And about it being 'sit back and do nothing'....of course you will have to work harder in the beginning. At first I thought the way to do it was to get in and do it all myself. But after awhile you will realize that you are better off paying other people to do the fixing and cleaning and such. As the rent increases it will leave more money to do such.
 

Aztec

Master Don Juan
Joined
May 20, 2001
Messages
1,384
Reaction score
1
Location
New Jersey
Books

I purchased Cashflow Quadrant and almost halfway through reading it. Should I read Rich Dad, Poor Dad first then go back to CQ?
 

STR8UP

Master Don Juan
Joined
Aug 10, 2002
Messages
6,937
Reaction score
125
Re: Books

Originally posted by Aztec
I purchased Cashflow Quadrant and almost halfway through reading it. Should I read Rich Dad, Poor Dad first then go back to CQ?
I would.

I haven't anything by him but Rich Dad, Poor Dad (the first book in the series), but judging by his knowledge in that book I need to get off my ass and purchase his more detailed materials.

Let me know your thoughts on any of his other books, should anyone read them.
 

Aztec

Master Don Juan
Joined
May 20, 2001
Messages
1,384
Reaction score
1
Location
New Jersey
Re: Re: Books

Originally posted by STR8UP
I would.

I haven't anything by him but Rich Dad, Poor Dad (the first book in the series), but judging by his knowledge in that book I need to get off my ass and purchase his more detailed materials.

Let me know your thoughts on any of his other books, should anyone read them.
Basically what Robert Kiyosaki is telling in the Cashflow Quadrant is having four ways in earning, thus quadrant: Being an employee, self-employed, business owner and an investor.

He tells readers that to be able reaching financial freedom, one should learn and utilize at least two quadrants at a time.

DJs, don't get frustrated with the simplicity of my explanation. That's just a quick recap. Of course, it's more detailed than that.
 

DIESEL

Master Don Juan
Joined
Jan 21, 2002
Messages
2,443
Reaction score
9
Location
miami, fl, usa
Originally posted by STR8UP
Remember McCorkle?
Damn, that name's a blast from the past!

What was his infomercial gimmick again? and what happened to him?
 

Aztec

Master Don Juan
Joined
May 20, 2001
Messages
1,384
Reaction score
1
Location
New Jersey
Hey STR8UP!

Gotta a scenario and questions for you.

I have Roth IRA that I have contributing for 5 years. Since I just started being interested in personal finance, I called that company (a Citibank group) doing the investment and found out that I'm actually losing money (ex. I've given approx 8K and it's only worth let's say 6K). I got in touch with the advisor (a family friend) who started me with Roth. He said that since we are going through a bad economy, people are losing money. BUT hold on to it. Also he said that as investors, we want to have the market to go "up and down."

I don't have any intentions of doing anything to it anyway.

1. I'm not quite sure about what he meant about "up and down." Any ideas?

2. Should I rollover it to a different company like vanguard.com? Although I don't know how would that benefit me.

3. Should I reconsider how I allocate my funds?
 
Top