Archives For mindset

Original Article

Lifestyle businesses require a great deal of thought. This is because they have to be designed to bypass many of the issues most businesses face.

secretmoneymachineThe first time I started to think seriously about a lifestyle business was when I read an older book titled, “The  Incredible Secret Money Machine” by Don Lancaster. I bought this book used through Amazon many years ago and have read it several times. The book outlines a lifestyle business designed to be a “secret” money machine.

From this book, I outlined how I wanted my lifestyle business to operate.

Here’s what I built into my business:

1. I must have 100% control. The business shouldn’t have any partners and have a minimum of outside influences. There should be no reporting to others, no competing with others, and little time hassling others.

2. The business should have multiple income streams. The best lifestyle businesses have hundreds of smaller sources of income so that they don’t become dependent upon one or two large sources of income.

3. The business should be engineered for present and future banking. My mentor, Dan Kennedy, taught the importance of future banking and I wanted this built into my business. Present banking means you get paid now. Future banking means you get paid in the future. I wanted my business to provide income today and tomorrow. Our present effort must provide several future pay days.

4. Put nothing between me and my customers. This means no sales people and no customer service.

5. The business should not require a retail location or an office. This means no fixed overhead. No product inventory. No expensive fixtures. No copy machines. All the money typical businesses invest into these items should stay in the business’s bank account.

6. The business should have .25 employees. This employee is .25% of me. I only want to work a few hours a day at most. Most businesses require .97% of the owner. Employees are a waste of time, money and mental energy. Employees also add the hassle of paperwork, tax and other regulations.

7. The business shouldn’t require a great deal of upfront money to get started. “Money machines expand fastest and best when they bootstrap and pyramid their own output on their own terms. They key is to to keep a sense of scale and start out as simply and cheaply as possible.”

8. Cashflow is EVERYTHING. “For a viable money machine, you should accept no less than a 200-percent annual return on cashflow. For instance, in a given year, if you have a total of three thousand dollars in expenses, it should be offset by at least nine thousand dollars worth of income. This leaves you with two nickels generated for every old nickel put up. Now, a 200-percent annual return on investment seems an impossible dream to traditional financial people. But we aren’t talking about anything traditional or big business. We’re talking about your secret money machine.”

9. Use the “Black Widow Effect” to build the business.A black widow spider usually spins a web and waits for the next meal to drop by. Now way does she go out and try to sell her next meal into coming over for canasta. The same basic idea is a good tactic for your money machine. Whenever and wherever possible, let people come to you and seek you out, rather than vice versa.”

10. Keep a low profile – “secret” money machine. In building my first two large businesses, I flew way above the radar. I turned myself into a “mini” celebrity in order to generate leads for the business. You may be reading this article because of my previous “mini” celebrity marketing. Flying above the radar opens the doors for numerous problems. These problems include people stealing your intellectual property, competitors saying nasty things about you, possible legal challenges, and more.

11. No expensive or complex marketing. Any business requiring expensive marketing isn’t the ideal lifestyle business. Complex marketing funnels require a great deal of time and money. These should be avoided completely. (Yes, I know… I spent 15 plus years creating these expensive marketing funnels. I know first hand how much time and money is required. This is why I wanted to avoid them in my ideal lifestyle business.)

How does your current business rank on these rules?

If you’re breaking any of these rules, is there a way for your to redesign your business into a lifestyle business? What can you do differently to make your life easier?

NOTE: The text in italics are direct quotes from Don Lancaster’s book.

Seller Financing

In some situations, sellers are lining Lending Standards, Seller Financing. CFPB
Finalizes Loan 2013, The Consumer Financial Protection Bureau – 2012-03-15

Seller Financing May Be Worth Exploring | Realtor Magazine

In today’s stymied real estate market, lenders are more cautious about making loans and sellers are more inclined to agree to carry financing to sell their properties more quickly. Here’s a look at how installment sales could work for your clients. – 2008-12-01

Get Seller Financing to Work for You | Realtor Magazine

Seller financing has been a hot issue in recent real estate news due to the changes in regulations, specifically in the Dodd-Frank Act. Here’s what you need to know to incorporate this method into your business strategy and be the best advocate for your clients. – 2015-04-06

Seller Financing: Background

Seller financing is subject to new rules following the passage of financial reform legislation. Know these changes in order to serve sellers better. – 2012-01-17

My Account

Seller financing plays an important role in financing the sale of real estate, especially when credit is tight. This paper summarizes the impact of two federal laws that affect seller financing. Seller financing plays an important role in financing the sale of real estate, especially when credit is tight. This paper summarizes the impact of two federal laws that affect seller financing. – 2012-01-12

Sales Clinic: Expand Your Market with Seller Financing | Realtor Magazine

Are there any creative ways to sell a home that will maximize the salesperson’s value? —Timothy Baker, RE/MAX Affiliates, Naperville, Illinois If you want to be a top salesperson, you always have to be on the lookout for new and creative ideas to set yourself apart from the pack.…/feature/article/1999/12/sales-clinic-expand-your-market-seller-financing – 1999-12-01

Ways to Protect Yourself Under Seller Financing | Realtor Magazine

TIP: Instead of taking back an installment loan, per se, have the buyer purchase an annuity or some zero-coupon bonds in your name. These can often be bought at deep discounts to eventual payout, lowering the sale price, but guaranteeing you a higher future return.…/sell-your-business/article/ways-protect-yourself-under-seller-financing

NAR Submits Comments on CFPB’s Proposed Seller Financing Rules

On Oct. 15, 2012, NAR President submitted comments to the CFPB on its loan originator proposed rule. On Oct. 15, 2012, NAR President submitted comments to the CFPB on its loan originator proposed rule. – 2012-10-19

Sellers Can Fill a Void | Realtor Magazine

If you’re working with sellers who have seen offers collapse because buyers can’t get a mortgage loan, you might want to suggest they consider offering some variation of seller financing. – 2011-07-01

Seller Financing: The SAFE Act

In 2008, President Bush signed the Secure and Fair Enforcement of Mortgage Licensing Act or SAFE Act, which requires licensing and registration of loan originators. – 2012-03-15
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When you first get started in Real Estate, what do you have a lot of?  Enthusiasm!

What do you lack? Knowledge!

After about six months you have a lot of what? Knowledge!

But what is gone? The Enthusiasm!

I want to challenge you to not lose your enthusiasm for Real Estate investing. Please learn to do it the right way by starting slow and starting small. You can buy a Multi-unit Apartment Complex, Commercial Real Estate, Land Development; but it is all going to start with that first house. Sure you might be able to buy a hundred unit apartment complex to start out with, but I venture to say every Investor that ever did that started with a single family home or duplex. So please, start from where you are right now, get involved, make a commitment and go out there and start buying properties.

By Dan Lacasse, Mentor

When I was in my “searching for knowledge” days about nine or ten years ago, I went to a seminar where I met my all time favorite speaker, Jim Rohn. He was to put on an all day event right in my hometown of Edmonton, Canada.

It was called “Success in the 90’s.” I knew if I had an opportunity to attend and participate in one of his seminars and even possibly meet him, I certainly wasn’t going to miss my chance. I had something important to tell him, and an opportunity presented itself to do just that.

After the seminar was over I waited for him to come down from the stage where he was to mingle with his fans and even sign an autograph or two. He was much older and smaller in stature in real life than I’d imagined him to be. His white hair cut short and in a nice dark suit, he spoke to the crowd gathered around him. He spoke in that familiar low tone that for years pushed me further down the success track where he gave me the belief that my past does not equal my future. I just stood there in awe face to face with the man that spoke thru my dashboard for four straight years.

What made him so intriguing was that he gave good solid information with good old-fashioned humor and wit, and I loved every minute of it. I listened to his tapes everywhere I went and after a while I started to talk like him and to this day he is still my all time favorite speaker (and I’ve heard a lot of different speakers).

A gentleman in the crowd started the conversation by asking “With so much talk about making money and trying to be successful, where would you suggest I focus most of my time and effort on in the beginning stages of my new career?”

Jim slowly looked at the crowd and then at him saying in his slow, low tone;

“Watch your thoughts; they will become your beliefs.
  Watch your beliefs; they will become your words.
  Watch your words; they will become your actions.
  Watch your actions; they will become your destiny”

and with that he grabbed a glass of water and there was a silence within the crowd, all of them comprehending what was just said.

I owe you. It was after some time with him speaking to the crowd that I made my way to the front, and it was now my turn to tell him something that was long overdue.

I introduced myself and proceeded to tell him my story that was about four years in the making. Many years ago I heard about him through an acquaintance that went on to make it big in a network marketing company.

“It was all because of Jim Rohn”, the acquaintance went on to tell me, “and after listening to him for several years my business grew to the point where I now have a wonderful life with all the toys that come with it.”

And with that he handed me a set of copied tapes. He said “Dan, I’m handing these pirated tapes over to you now, so you can go onto greatness.”

He sat down and told me a story that has forever been etched into my mind. He told me he didn’t have the money to go to Jim Rohn’s seminar in the early 80’s, so he asked a friend that was going, to copy the event on tape. When he finally got them he listened every day with out fail.

Then, many years later when he was about to receive his Gold level status in his MLM Company that he was with, he wanted to personally give Jim Rohn a certified cheque in the amount of $500 for the tapes he pirated four years earlier.

He found out that the motivational speaker was to be given a ride from the seminar to the airport by friend that had a limo. He worked out a plan to come along for the ride and present the cheque in person.

When he presented the cheque and told him his story, Jim looked at him and told him these words;

“I will not accept this cheque, because if I affected your life in a positive way, it is worth it to me for you to keep it.”

Now some eight years later standing in front Mr. Rohn myself in the late 1990’s the story was about to play out again, now for the second time. Jim reached out to shake my hand, and as he did so smiled and said “How is that gentleman doing anyway?” and I said, “He’s fine, just fine.”

I heard the crowd mumble behind me as I thanked him and offered to pay for the pirated tapes myself.

He just smiled and said, “Just go out and be successful” and with that, a woman posed a question to him and then in a flash my time with him was over. I’ll never forget it.

By Bill J. Gatten

OK, you’re on an elevator headed from the parking garage to the fifth floor and you have a man standing next to you looking up at the lighted digits above the door, who casually sizes you up and asks: “So what do you do for a living?” What do you say?

“Oh, I’m in sales.” (Meaning: “None of your business, and your not going to be standing next to me long enough to get into any details anyway, so let it go at that.”)

“I’m an investor.” (Meaning: “Envy me for 45 seconds …and think of me as someone you wish you could be…whether I am or not. And always wonder what “kind” of investor I might be…as if you really gave a hoot”).

“For a living? Oh, not a whole lot these days…how about you? What do YOU do?”

(Meaning: “None of your business. If you insist on talking, fire away it’s your nickel…Me? I’ll just pretend to listen as you babble…oops, why here’s your floor.”)

I’m a teletype operator having a bit of a struggle finding a job, what with all them photo facsimile machines out there these days. If it weren’t for my taste for Spaghetti-O’s, my wife taking in laundry and clipping coupons, I’d be SOL. How about you? What do you do?” (Meaning: “Are you a loser too? Gawd, I sure hope so because it’s awfully lonely here on the corner of Out-of-Touch-with-Realty Street and Co-Dependency Boulevard.”)

“ Alrighty then…(as the door opens and closes) you go and have yourself a nice day now (you say to the back of the elevator door). Hear?” As you whisper to yourself, “Dang I wish I could afford a suit like that.”

Or maybe you’d answer the question this way:

“Well actually, I work here in the building during the day; but I also dabble in real estate.”

(Meaning: I’m unhappy with my plight in life and am trying to better myself without turning loose of my life ring. So don’t judge me by what my answer would have been, had I not added the ‘but I dabble in real
estate’ part.”

Or, how about this one:

“Who me? Oh, I’m a big time real estate investor.” (Meaning: “If you’re really interested in what I do, you’ll ask more questions and get me started, and, once on a roll, I’ll explain how you can benefit greatly from my services.‘ Otherwise…I believe this must be your floor.”)

Now, think about it…that person who was standing beside you for the ride is now gone forever, but may well have been someone you could have helped, and received value from in the process…if you’d only had exactly the right response handy. That fellow passenger may in fact have had a house to sell at a bargain price; he may have been an owner in foreclosure; he might have been a flip investor. He easily could have been a prospective buyer for that house you just rehabbed.

The fact is: that particular person was an ‘all-ears, one-man captive audience’ for that 45 seconds of your life.

Why on Earth didn’t you sell him something? Well, the reason you didn’t even try, was because you presumed he was just nosey; or maybe just looking for a 45 second buddy; or simply too unconcerned about you to really have asked a sincere question.

All of these assumptions may in fact have been absolutely on the mark. But the big question is: Why didn’t you use that time to your maximum advantage. Consider what just “might” have happened if you’d said the following instead:

“I help folks buy and sell homes and investment real estate in all price ranges without
cash or credit.”

There you go…7 seconds on the button.

Then if they say “Oh really?” you continue:

“Yup, if I’m buying, I pay full price, all cash or terms: if I’m selling I don’t require loan qualifying, a credit reports or big chunks of cash up front. Here’s my card. Call me.”

There’s another 10 seconds, and we’re not even to the third floor yet…if the prospect is not interested, you just stare blankly at each other until the door opens.

Now…if that fellow passenger just happened to have been a prospect (buyer or seller) and by chance you had titillated his fancy (as it were) with your pre-planned elevator speech: did you give him every chance to know who you were and what you can do for him, were he to fit one of the criterion for your business? Sure you did! But with those other lame answers that others use…could any of them have made the slightest difference in your financial life?

“Oh I’m an insurance agent: I make widows wealthy.” Nope!

You merely wasted your precious moments with that person.

So what’s the point of all this? Well let me see.

How about the point being: 1) We should all find a tall building and ride up and down in elevators all day giving one-minute elevator speeches? No! Um…

2) Elevators are a great place to find motivated buyers and sellers? No! OK then,

3) It’s all right to talk to strangers on an elevator? No!

4) If I ever caught between floor in an elev…No! No! No…
This point is simply this:
You must stop what you are doing right now and take an hour to work out your “perfect,”
sure-fire concise elevator speech. Once memorized and refined, have it ever at the Ready
when you get the opportunity for those 45-second presentations. You will be finding and
qualifying prospects everywhere you go with the minimum effort and maximum effect.
Your audience will let you know instantly whether they are prospects or not. The ones
who don’t need you and have nothing to offer you will say: “Oh that’s nice and begin
talking about what THEY do for a living (at which point you remember having forgotten
to turn off your coffee pot at home). The E.S. (elevator speech) is an absolute necessity
for those of un in this business (especially in THIS business), and it works everywhere: at
Church, at a Chamber of Commerce Mixer, at the grocery store, your AAA meeting,
when meeting your fiancée’s parents for the first time; when meeting your daughter’s
fiancée for the first time (…the latter being far worse, believe me…whoever invented
nose rings and tongue piercings is an idiot); standing in the Unemployment or Welfare

Line (…Ok, scratch those last two…with a good elevator speech, you’ll never need to do
THE MESSAGE: Develop at once a brief and concise Elevator Speech: memorize it and
be ready to recite it every time someone steps up and says: “What do you do for a

By: Ray Higdon

When you first start out as a real estate investor, a great way to spend your time is by asking more seasoned investors lots of questions.

Good people learn from their own mistakes, great people learn from their own and the mistakes of others.

A great question to ask these more seasoned investors is

“What was your biggest mistake when starting out in real estate” or

“Were you to start today, what would you do differently”.

After consideration, I would say my biggest mistake when I was new was being too one-dimensional in my real estate thinking.

My partner and I have focused on buying rental properties in low-moderate income areas and holding them long term. When I first started I would go to a property to look at it, see if it fit our numbers, if it didn’t, would move on. I suspect there were a lot of missed opportunities during those times.

When you are going out to look at a property, don’t just think of yourself. If you only buy houses to fix and flip you have to get them at a deep discount, well, you may know people that buy and hold long term and maybe that property would work for their numbers.

As most of you know the object in the game of blackjack is to beat the dealer, not get closest to 21. Such is so with Real Estate. Your goal is to make money, not just to buy properties.

Last week I got a call from a guy that had received one of our postcards. He had 3 duplexes he wanted to sell so I met with him and spent some time going through the duplexes and talking with him. At the end of our conversation we came to a number he would settle on for the duplexes and this number did not hit our buy numbers but the numbers were certainly below market value and I knew I could sell them to one of my investors I know so I put them under contract. Two calls later I had the three contracts sold for an $8,000 up front assignment fee.

As a bonus, I am also acting as the mortgage broker on the three deals giving me more profit.

When you go to a prospect’s property, be a Swiss army knife and try to discover if there is a way to make money on the deal.

These are the concepts you should take from this article:

1) Talk with other investors, best place to do this is at your local real estate investor club

2) Don’t think, “Is this property right for me”, instead think “How can I make money from this property”

3) From talking with other investors, build a buyers list and know what they buy so you can better be a transaction engineer

4) Don’t forget the magic questions,

“Do you have any other properties” and

“Do you know anyone else that is selling any real estate”

Happy Investing!

Ray Higdon

RLH Holdings

Author –

I have absolutely nothing against Higher Education.

I am against, however, being spoon fed that people need to go to college and get a good job in order become successful in life. All the info on this page is from credible sources.

The point of this page is not to completely doom and gloom people. Is it not meant to encourage people to go to their parents or guardians and cause a seen. What this is meant for is for people to realize that even though their mind is the most important asset they have, the way they think is equally as important. Filling a head with rubbish will entail equal results in productivity. To be successful in life, people must surround themselves with successful people and think successful thoughts. Easily said, but are most people hanging with the right crowd?

Even Bill Gates debunks the Myth that having a degree makes a difference.

Is a degree still worth having? (

Prepared remarks by Bill Gates (

Is College Worth It? (

College Vs. No College (