How to Start a Blog

As you probably know, I’m a huge fan of Bluehost. If your looking to start a cheap WordPress blog I highly recommend Bluehost. Bluehost is a great web host and I personally have had a great experience with them. Bluehost is definitely one of the biggest and easiest companies that can literally take you from nothing to a WordPress blog in less than 5 minutes. However, they have changed their process lately, which made it even EASIER for people to sign up and create a WordPress blog.

Since I have started blogging it has opened up new door for me that I never thought possible. I am able to work from home, I can travel whenever I want, I have a flexible schedule and more. I am absolutely loving life and I can’t believe how much my life has improved. Bluehost is one of the top web hosting companies in 2018 and you can start and you can start your own blog with them for as low as $2.75 a month (this low price is through my link only)! Also, if you sign up using my link, then you will get your domain for free if you purchase a 12 month or longer hosting plan (a $15 value). I highly recommend signing up for the 12 month hosting plan through Bluehost. It’s affordable and you can save a lot of money by signing up for at least 12 months. If you want a better deal, the best value would be purchasing a 36 month plan, as your monthly rate is much lower over the long run.

How to start a WordPress Blog on Bluehost

  1.  Register your Domain Name

The very first thing you will need to do when starting a WordPress blog on Bluehost is to think about what you want your domain name to be. This can be tough, and I would give some serious thought to this.

You can get your domain name directly through Bluehost. Like I said earlier they make it fairly easier for you. If you do this, you can get a FREE domain for the first year as long as you buy 12 months worth of Bluehost web hosting. This makes it well worth it to sign up for at least 12 months of hosting as you will be saving a good amount of money this way. You also get a cheaper monthly price when you buy at least 12 months of hosting, so the free domain just makes it even better. If you want an even better deal, the best value would be purchasing a 36 month plan, as your monthly rate is much lower over the long run.

2. Buy hosting for your blog

When you are ready to create your blog, follow the steps below to buy hosting for your blog.

  • Go to Bluehost and click the “Get Started Now” button.
  • Click on the package you are interested in.
  • Enter your domain name you registered with earlier, or sign up for a new domain name here.
  • Enter your personal and payment information.
  • Next you will be asked to enter a password. Make sure it’s secure as this information is very important.

3.  Install WordPress on Bluehost.

This part isn’t hard at all. Bluehost makes it very easy to create a WordPress blog and it is FREE.

  1. After you create your password, Bluehost guides you through exactly what you need to do in order to start a blog.
  2. First, Bluehost will ask you to pick a theme. You can just pick a random one here or find one that you actually like. You can change it later so it’s not a big deal or just scroll to the bottom and skip this step. Remember, there are many free ones too!
  3. Click on “Start Building”
  4. On the next screen, you can choose “Business” or “Personal” – it’s up to you. Or, you can click the “I don’t need help.”

Thats its you’ve officially completed the process of creating your first blog. Although, you will have to work on the design and producing high-quality content, of course. Congrats!!!

The Most Profitable Home Renovations

The Most Profitable Home Renovations:

First: Kitchen. This is often the first thing people look at when checking out a new property. Opening the kitchen and creating an open floor plan is often the easiest “bang for the buck,” but renovating a kitchen doesn’t need to be expensive. Oftentimes painting existing cabinetry and changing the hardware can be sufficient.

Second: Flooring. Luxury Laminate Flooring is essential, especially in a rental. When flipping real estate, it’s OK to go higher end with real hardwood floors depending on the area – but for a rental, most laminate flooring is just as good, cheaper, and more durable.

Laminate Flooring

Third: Bathrooms. Again, this doesn’t need to be overly expensive. New vanities are fairly inexpensive. You can often keep existing tile and re-glaze it a different color to make it more modern.

Fourth: Lighting. Add recessed lighting – It makes a massive difference. If you have popcorn / acoustic ceilings, scrape them and add recessed lighting at the same time to save on labor. Dimmable lights also go a long way.

Recessed Lighting w/Dimmers

Fifth: Landscape. This is frequently overlooked but it’s an easy way to add to the curb appeal on your home and stand out from everything else. For a rental property, DO NOT plant intricate landscape that tenants could neglect. Instead, chose tenant-proof landscape options: gravel, mulch, and low-maintenance greenery. Succulents are great.

Succlents

Sixth Bonus Tip: Baseboard. 4” baseboard around the new floors and around windows/doors adds a sophisticated, upscale vibe to the home for an extremely inexpensive price.

Baseboards

 

How to Create Financial, Time, and Location Freedom

An article published by BusinessInsider found that 65% of self made millionaires have 3 sources of income, 45% have 4 sources, and 29% have 5 or more sources of income. That’s a far difference from the person who’s pulling in their entire paycheck from a single job, and this small difference could end up making you a lot of money over your career if you use it to your advantage.

It really comes down to creating value with your time and doing things that lead you to what you want to achieve.

It usually begins like this:

1. Main job – this is your priority

2. Investments – the things you place your money in

3. Side job – what else you can do with your time

Doing this spreads out your risk. You don’t have 100% of your money coming in from one source. If something happens to your main job, you’re out. This allows you something to fall back on. It also allows you to focus on passive sources of income, or income that doesn’t require 100% of your attention, which is money you can make in addition to your main job. If you ever want to scale back or have more free time, this is easier to achieve. It also allows you to better leverage your time.

The most successful people I see all have these income streams. Some of them have products they sell, some invest in real estate, some invest in stocks, and some own their own side businesses. It’s less important about what they’re doing, and more important to realize that this is one of the best things to do.

So what can you do? Figure out what you want – do you want something that’s entirely passive? Do you want something that’ll make you more where you’re actively involved in? How much time do you have to dedicate to this? What do you like doing? There are also plenty of other passive income sources, like affiliate marketing, writing e-books, building apps, YouTube, website ad revenue, p2p lending…

I’m a believer that more and more opportunity is shifting to online and mobile, so anything you can setup online will likely do well long term. I also like businesses that don’t require 100% of your attention where you can leverage your time for something that works around the clock, so I’d highly recommend doing more research into these types of opportunities.

Overall, there are huge advantages to setting yourself up with multiple income streams. It generally makes you more money, spreads out your risk, and allows you to diversify.

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How to Sell Anything

The first, and simplest way to do this is just to be passionate and believe in what you’re talking about. You could absolutely awful at just about every other aspect, but if you’re really excited about whatever it is, you’ll still come out ahead. Think of it like this – people pick up on how you feel. If you feel bad about something, it’ll come through in the subtleties of how you act, the way you speak, and the words you use – at a subconscious level, this is very, very difficult to fake.

Just this one small change could make all the difference – being excited and passionate about what you’re talking about. You really, really need to believe it…and not a fake believing, either. If you fake it, it doesn’t quite work – you actually need to be excited about it and you actually need to believe it, otherwise it’s not going to work and people are going to see through it.

Having this excitement and enthusiasm is often what leads people to do really, really well at something in the beginning, only to have their excitement and sales ability dwindle as they settle down and get complacent. I see it all the time. People go into something and have a ton of excitement and enthusiasm because it’s new…and then they slowly do worse over time, even though their knowledge and technical ability go up. You need to maintain that level of excitement and passion while also increasing your technical knowledge, and this is where things really take off.

And keep in mind that anytime you’re selling something, it needs to solve a problem. We primarily buy things that make our lives easier and bring enjoyment to us. It’s much more difficult to sell something by really convincing someone they need it than to figure out the problems that person has and provide a solution.

This is why I believe the best things really tend to sell themselves, without really any convincing. It should be easy. Think of it this way, if you need to convince someone to do something, it’s much less effective than figuring out what that person needs and providing it to them, while really believing in it at the same time.

Ideally, everything you should do should be a win-win. It should actually benefit the other person MORE than you, and that’s how it’s sustainable. The way I see it, if you sell anything, it should be sustainable long term…if you ever take advantage of someone, you’ll never get their trust back. And honestly, that’s a lose-lose.  Everything needs to benefit the other person MORE than what you’re getting…and in return, more people will come back, that ends up with more money for you, and more value for them. Win win.

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Fastest Way to Build Wealth in Real Estate

The BRRRR Method: This basically uses the equity and profit from one property to fund the next property through strategic leverage. And then the next property can fund the next one…and so on, until after a few years you’ve amassed an army of homes that just throw cash at your every month.

1. The first step is to buy a property, obviously. But the difference here is that you can’t just buy anything – the property not only needs to cash flow, but there needs to be some opportunity for equity. Your equity is basically just the amount of “worth” tied up in the property, minus your loan balance. So you either need to buy into equity by buying something BELOW what its market value is, or buying something where you can add equity with strategic renovations. Most deals won’t work – you need to be better than the average here and really become an expert in your area to spot the best deals, and the patience to wait around until that happens.

2. Renovate. Once you buy something, you’ll fix it up. Generally this is the best and easiest way to add value to a property. Most places that need work price themselves accordingly. Doing the work yourself saves you from paying someone else’s profit in managing a renovation, and often times you can renovate a property much cheaper than someone else will charge for doing the same thing.

3. The third step is rent…in that you now rent out the property. You should have had an idea of what price you’d get from the beginning when you bought the property, so it shouldn’t be a surprise what you can rent the property for. The property should rent high enough to pay off all of your expenses AND cash flow on top of it. Like I said, not every property will do this – you will need to find the 1/30 where it makes sense to buy, at the right price, that’ll rent for high enough, with enough equity to add to the deal.

4. NOW WE REFINANCE! This is where the bank pays off your previous loan, and gives you a NEW loan based off the new, higher value of the property. This means that you’ll have some “Cash at closing,” as it’s called. Now you pretty much got some money back, you have a cash flowing house, and you can do this entire process over again.

5. And then…you repeat the process and start over again with the next one! The advantage here is that every time you buy something under market value, you increase your net worth. By fixing it up, you increase your net worth and cash flow at the same time. The higher your net worth and the more equity in a property, the more banks are willing to lend you to do it again and continue to increase your cashflow. This is by far my favorite strategy, and you’ll finish this up with a trail of cash flowing properties behind you. Yes, it takes some work to identify and fix up a property – but it’s worth it.

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How to Invest

Here’s how you can go about investing to a million dollars and some of the methods I’m using for you to begin to replicate. I’ll start with some specific investments, move on to where I get the most value, and then discuss how you can accelerate that growth.

For me, my biggest investment has been in real estate. Here’s exactly what my strategy is: I buy an undervalued property that needs to be fixed up, I fix it up – increasing the value of the home – and I rent it out. I make my biggest profits my doing this. The monthly cashflow of rental property is also fantastic for hitting a fairly substantial rate of return.

I then invest in Index Funds. Usually, an SP500 index fund that’s fairly passive. I invest in this fund through a Roth IRA and SEP 401K. There are a ton of different fund out there for you to look into with fairly decent historic returns.

Investing in individual stocks could also be an option. I don’t do this because the stock market isn’t really my specialty, I don’t want to spend my time following companies and trading, but many people make a decent return if you put in the research. This is another risk vs reward scenario – the risk is higher, but the returns can be higher if you pick the right stock at the right time.

f you have any other discretionary income you want to invest with, you could always look into peer-to-peer lending like LendingClub or Prosper. I’m not sure I’d call this a long term strategy, but it could be profitable in the short term.

You could also look into cryptocurrencies – again, I wouldn’t necessarily call this a long term investment strategy – but hey, if you have money you can afford to risk and you really believe in it, I’m not going to stop you. I definitely wouldn’t replace a proven long term investment strategy with crypto, but if you want to play around with it, sure – maybe Bitcoin hits 100k. Who knows.

From here, we can speed up the investment process dramatically by investing in a tax advantaged account. The two big ones to check out are a Roth IRA and 401k. These are just accounts you can set up where you can buy investments within them. So you can still own all of your stocks you want, but you can do it within Roth IRA or 401k account for better tax treatment, which will help sped up the process to a million.

Lastly, accelerate your growth by living under your means and saving / investing as much as you can. I say this all too frequently but that’s because it’s the truth. The more you invest, the quicker this will all pay off.

I’d also make sure to pay off any debt, if you have any – especially if it’s something with a stupid high interest rate. If you have a large credit card bill, make sure to pay that off. If you have stupid high student loans at a crazy high interest rate, make sure you pay those off as well. Debt is great if you leverage it to make more money, but debt is awful if it’s holding you down and costing you money. So make sure to pay off debts – sounds obvious, but you’d be surprised.

The basics to this don’t really change, and neither do the specifics – it’s fairly boring. The difference here is consistency and discipline to invest over a long period of time. Otherwise the math behind it is surprisingly simple.

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Tax Advantages Investing in Real Estate

Owning real estate is much more than just owning a cash producing property that provides monthly profits, what makes it really unique against almost every other investment is the tax write offs associated with it. In real estate, a return could be calculated in so many different ways besides “I get $1000 per month in rent.” What makes real estate really special is that you could often make money every month, but on paper show a loss…and this cancels out your tax obligation. Here are some of the tax write offs that make real estate a phenomenal investment.

1. Mortgage interest write off – On an investment property, the interest that you pay on your mortgage is a write off against your rental income. On a primary residence, the mortgage interest on the first $750,000 could also be a write off, potentially saving thousands in owed taxes.

2. Property taxes – This is another deduction you can write off against your rental and personal income. As a primary residence, you’re allowed to deduct the first $10,000 of your property tax against your personal income As an investment property, you can still deduct 100% of your property taxes against your rental income.

3. Depreciation – This is what often leads you to be positive in your bank account each month, but on paper you could show a loss, lowering the amount you’d pay taxes on. With rental property, you’re allowed to depreciate the asset over a certain period of time. Cost segregation analysis can sometimes speed this dramatically. However, keep in mind that because you’re depreciating a property, eventually the tax you depreciate will need to be paid at the time of sale if you DON’T 1031 it, so it’s not a tax avoidance entirely, but this works great if you plan to keep the home as a rental or eventually do a 1031 exchange later on.

4. 1031 exchange. This is a very popular real estate tax benefit that almost every real estate investor uses. This means that you can sell your property and “Exchange” it for a like property of similar or greater value without paying taxes at the time of the same sale. This is how many people can buy and sell millions without ever paying capital gains taxes, as long as they don’t sell and continue 1031 exchanging properties.

5. Capital gains exclusion on a primary residence: As long as you’ve lived in the home for 2 of the last 5 years, you can sell a your primary residence up to $250,000 HIGHER than you bought it for if you’re single, or $500,000 if you’re married, without owning capital gains tax.

6. Cash out refinance – When used against a rental property, you can refinance the extra equity in the property and pull out the profits tax free. Even though this is technically a loan you have to pay back, you’re borrowing from the existing equity and using that money without paying taxes on the money that hit your account. This gets a little more complicated as a primary residence, but on a rental, this is a huge advantage because the new mortgage you pay on the amount pulled out counts against your rental income…so you can use this money for pretty much whatever you want, hopefully just to re-invest.

7. Finally, rental property income is not taxed as self employment income, which carries a 15.3% self employment tax (not fun). But keep in mind this is also dependent on how you hold the property and specific ways you’re treating your income.

Check with your own accountant or CPA because every situation is going to be unique.

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The Complete Tax Guide for Real Estate Investors: https://amzn.to/2McSGkN

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House Hacking: Live for Free

House hack: Forget having to make a rent payment or come out of pocket for a mortgage every month. This is exactly how you can essentially live for free by investing in multifamily real estate as a primary residence. Plus – if do it right, you can literally GET PAID to live for free. Here’s how.

When you already have some savings and want to make the jump to becoming a home owner, one thing most people overlook is multi-family properties. These include duplexes, triplexes, and fourplexes. What makes this unique is that in addition to your unit, you have other units that you can freely rent out which can cover your entire ownership cost of the property. When you buy these properties correctly, your rental income from the other units will cover your entire mortgage, property taxes, insurance and repairs, essentially letting you live in one of the units for free. Not only that, but you can apply the rental income towards your loan, meaning you can often qualify for a much larger loan than normal. You’re also paying down your loan and building equity at the same time.

My biggest recommendation to maximize the rental income is to look for vacant multi-family buildings that need cosmetic upgrades. This means you can immediately begin updating the property when you buy it – new floors, paint, bathrooms, landscaping are all cheap and make a significant improvement for rental income.

Now of course, there are downsides of doing this. First of all, you will have to manage tenants and that can be a part time job in and of itself. You will also have some shared common areas – it’s not any worse than an apartment, but you will be in close proximity with your tenants. It’s not for everyone.

But the good news is that when you’re ready to buy a house or upgrade, you can rent out your unit and you have a great cash-flowing rental property for you to keep long term. Essentially when this is paid off, it could be your retirement money that keeps cash flowing month after month. Or, you can live there long term and bank as much money as you can knowing that you don’t have be out of pocket every month for housing payments.

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The Book on Real Estate Investing with No Money Down: https://amzn.to/2MAHhbk

Things to Know Before Becoming a Landlord

First, I wished I had treated it more like a business rather than a hobby. All of a sudden you have a hard time thinking objectively, you throw your own emotions into the mix, you have self doubt, you worry if what you’re doing is right, and there’s a blurred line between running this like a business vs a hobby…and when I started, I ran it like a hobby. Don’t do that.

This brings me to my second point…keep things professional, and STICK TO THE CONTRACT. In the beginning, I treated the contract more like a guide…as long as you roughly followed it, that was fine. No, NO, NO. Do NOT do this. Enforce the contract word for word. The contract is written for a reason – there should be no misinterpretation from what’s allowed and what’s agreed on. This clarifies everyone’s expectations for not only the tenant, but also for the landlord. When that contract is signed, all parties must abide by it.

The third thing I wish I knew was that I’d need to be on call 24/7. If there’s ever an emergency, I have my phone on me to handle anything as it comes up. Most situations that come up, even though I’m technically “on call 24/7,” just aren’t that urgent; usually little minor things that are usually sent over email and you can handle them when you have the time.

The fourth thing I wish I knew is that anything that can possibly break, will break. As a landlord, you walk into the brutal reality that most people simply don’t care about how they live or how delicate something is. Just like you baby proof a house, you will need to renter-proof your house. This means making things indestructible. If something is likely to break, make sure you don’t spend too much money on it. Just buy good quality DURABLE, not high end BREAKABLE. This will prevent you from fixing and buying new things after every tenant.

The fifth thing is that the biggest learning experience of all of them is simply dealing with people. On a bigger picture, deeper down, you really have to learn to communicate effectively, be ok with saying no, be okay with standing your ground, while still being able to hear the other person out. You need to learn how to explain yourself in a way that makes sense to the other person, without coming off as insensitive or inattentive. The other person needs to be heard and their thoughts validated before you can say what you want. Just like anything else, people skills are incredibly important and can make a huge difference in whatever business your in.

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Why You Shouldn’t Flip Houses

Disclosure: People can make a lot of money flipping. This isn’t to say that it’s not very, very lucrative – I know and have represented people that have made hundreds of thousands per deal. It can be a great business to be in and there’s absolutely nothing wrong with it. Everyone’s goals are different and many people prefer the immediate profit of a flip – But here are my own personal reasons why I prefer to keep my properties as rentals.

1. It’s a lot of work to flip a property, especially in a competitive market. Inventory is low and finding a deal worth flipping could take months. While it can generate a lot of profit immediately, it requires your constant work to keep the momentum to continue flipping.

2. When you sell it, you pay taxes as ordinary income – not long term capital gains, which is taxed much less.

3. Market timing. Finding a good deal could take months in Los Angeles…add another 2-3 months of renovation, and another 30-60 days of having the house on the market before closing, and you’re looking at 5-9 months from start to finish per deal.

4. Profit. Given the amount of work and time I’d dedicate to flip a property, it doesn’t make sense for me when it takes my time away from my main focus, which is working toward passive income.

5. If the property has that much equity in it that you can flip it for a profit, chances are you can charge much higher rents than before, improving your cash flow.

For me, I’ll take passive rents without doing much – it just requires some upfront work and an initial upfront investment, but once you get it going, it can run for a very long time. Having this type of passive income really allows you the freedom to do what you want, when you want – and focus on what really brings you the most joy. For this reason, I prefer rental properties over flipping.

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Buying vs. Leasing a Car

The short answer is that it really depends on your situation and how long you plan to keep the car, but I’ll describe the pros and cons of each and what might work best with you.

Lets start with owning and buying a car. First of all, you can buy pretty much whatever car you want, unlike leasing where it’s almost always a new or newer car. Generally, unless you just buy your car outright in cash, you’ll end up financing the car. This is when you take the cost of the car, minus your down payment, and get a loan which you’ll pay off over a specific period of time – the most common being 48-72 months. And then you’ll also pay whatever state sales tax is on top of your purchase. Factor all that in…and then once you pay off your loan, congratulations – you own the car free and clear. And then when you go to sell it, you’ll get whatever price the car is worth – minus whatever you might still owe on the car. However, a few drawbacks of this – unless under warranty, you’ll generally be responsible for maintenance and wear and tear items during your ownership, especially on an older car, and this can add to the cost…you’ll also need to pay sales tax on the purchase price upfront…and totally separate from that, your monthly payments tend to be higher with owning than with leasing.

Leasing generally works best if you’re the type of person who always wants to have a newer car every few years. If you plan to get one car and drive it forever to the ground… don’t lease your car. But depending on how long you plan to keep the car, leasing could actually save you money. With leasing, you’ll generally be leasing a brand new or newer car. You’ll usually have a down payment and then generally you’ll have a 24-36 month term where you have a fixed monthly payment, along with a set number of miles you can drive each year. You’ll need to return the car with your set amount of miles or less or risk paying fees and penalties.

Now when you lease a car, you’re not paying the full amount of sales tax upfront – which can save you a TON of money. The lease price is determined but the depreciation the car is going to see during ownership, plus some finance charges. You’re basically just paying a monthly amount of the depreciation, rather than the entire cost of the car. Therefore, with leases, you’ll generally pay LESS per month to drive the car because your financing only the deprecation…not the entire thing like when owning a car. With a lot of leases, too, maintenance is often covered…so you can pretty much just pay a set monthly price and not have to worry about normal wear and tear/maintenance costs that come up. And when the lease is done, you don’t have the hassle of needing to sell it…you just turn it back and you’re done.

So here’s my thoughts. Both leasing and owning have their own advantages and disadvantages, and what makes one better than the other is dependent on your situation. If you plan to keep your car more than 5 years or so…it’s almost always better to buy the car. Whether you buy a brand new car or an old used one, the longer you plan to keep the car, the more it starts making sense to buy it.

But if you’re like me and you want the privilege of owning a new car every few years… it’s cheaper just to lease it – it means I pay less per month since I’m only paying for the depreciation, I don’t need to pay sales tax on the entire cost of the car – only on my monthly payment, and I can simply swap it out when the lease is done to get a new one.

Ideally, for most people out there who just need a car to get from A to B…the BEST option is to buy a car that’s 3-5 years old and has already hit most of its depreciation. After about 5 years, most cars depreciate at a much, much slower pace – so buying a car like this and keeping it forever would be the most financially “sane” thing to do. Then just finance it at a low interest rate, re-invest whatever money you would’ve spent on the car, and hold it. Then when the car falls apart and you can’t drive it anymore, do it again.

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Worst Mistakes to Make if the Real Estate Market Drops

I think we all know that, AT SOME POINT IN THE FUTURE – whenever that may be, the real estate market will inevitably drop in price. The fact remains prices won’t always continue going upward, all the time. Given that, it’s what you do in these times where the market DOESN’T increase in price that really matters the most.

The first, and BIGGEST mistake people can make if the market drops is to panic and make emotionally-driven decisions. This is, by FAR, the worst thing you could possibly do. The reality is that accurately timing the market is nearly impossible – even the BEST people won’t be able to predict when the markets will drop, how long they’ll drop, or when they’ll recover. I personally believe, and many studies have confirmed, that the best investment strategy out there is to simply buy on long term fundamentals, stick with it, and hold long term.

The second mistake people make is to over-leverage and go in too heavy on an investment they cannot afford, especially if it’s a volatile investment. I think it goes without saying: don’t over extend yourself if you cannot afford to weather the storm. Anytime you’re investing in real estate, MAKE SURE YOU CAN AFFORD IT. This means that the property doesn’t consume all of your income. It means you already have a safety fund in place in the event you need it. It means that you’re able to buy the property and still save/invest a portion of your income.

The third mistake people make is buying purely for the short term. Some may disagree with me on this, but I think there’s a big difference between investing and speculating – if you’re buying something with the intention of selling in a year because it’ll be worth more, I’d say that’s a little more akin to speculation. The longer you own real estate for, the more likely you are to come out ahead.

The fourth mistake people make is play it too safe. These are the people who have been saying “Real estate is a bubble” since 2013. These are the people who said the stock market is over valued since 2014. These are the people who typically just never invest because they’re constantly waiting for things to drop…oddly enough, those same people never invested at the bottom of the market because they were convinced it was going to drop further. And they’ll wait a lifetime for that opportunity, meanwhile their cash simply loses purchasing power to inflation every year.

The fifth mistake you can make is not to have enough cash on hand to take advantage of deals that come up. One of the biggest advantages I’ve had in my investing career is that I’ve always saved as much money as I could. I’d save, save save…and when I found a deal, I’d buy it. I’d then go right back to saving…and when another deal would come up, I’d buy it. I didn’t care about market timing, I didn’t care what prices would be a year from now…I simply saw a good deal, I knew I could add value, I knew it would make money, I knew I could comfortably afford it, and that was that. Having cash on hand has allowed me invest in properties that have, combined, made me over a million dollars in profit.

Moral of the story is reall just: Buy on fundamentals. Buy a deal that still makes money in a worst case scenario. Don’t over extend yourself, and make sure you keep some cash to cover anything unexpected. Don’t worry about short term real estate prices, buy on a long term outlook. And don’t bother trying to time the market…just wait until you find the right deal and go for it.

 

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Survival Investing: https://amzn.to/2AJSzIW

Turn a Porfit from a Bubble Burst: https://amzn.to/2ncr9Sf

Never Work Again

First, lets define “financially independent,” because this term means different things to different people. To me, it’s having enough money to support your current lifestyle without you ever needing to earn another dollar. It’s knowing that you’ll have a certain amount of money at your disposal every single month that covers your daily expenses without ever running out.

For each of us, that number is different. For someone in rural Kentucky, maybe it takes $35,000 per year to cover all of your expenses…food, housing, entertainment, health insurance, just everything you’d ordinarily spend in a given year. For someone in New York City, maybe that number is closer to $90,000 per year…or maybe for a family of 5 in Southern California, it’s $125,000 per year. But what’s unique is that even though each of us will have a different level to what we’d consider financially independent, the math behind it stays exactly the same.

For most situations, how much you need invested in order to retire is as simple as this: 25x your annual expenses. This means if you want to spend $50,000 per year, you’ll need 25 times that…or $1,250,000. You want to spend $80,000 a year? You’ll need 25x that, or $2,000,000 invested. Spend $100,000 per year = invest $2,500,000.

In order to accurately do this, it requires you to really sit down and think about the lifestyle you want, how much it’s going to cost, and what you currently spend. By first going over your current expenses…and literally counting every cent that goes in and out of your account, you’ll get a great baseline as to how much you regularly spend on a monthly basis. From there, determine if there’s anything else you’d want and how much that will cost. Once you add everything up…multiply that number over 12 months…then multiply that by 25, and that’s how much you’ll realistically need to have saved.

So how does this work exactly when it comes to financial independence? Well, that’s what’s known as the “Safe Withdrawal Rule” or “The Trinity Study.” This study suggests that you can withdrawal 4% of your total investment annually – which is usually studied as an investment portfolio consisting of 80% equities and 20% bonds, with a fairly high success rate of never running out of money. This means that for every $100 you invest, you can safely spend $4 of that each and every year for basically the rest of your life. .

This study takes into account that you’re invested in 75%-80% in equities, like stocks of a corporation, and 20-25% of bonds, which represent a more stable, secure return. On average, a portfolio like this should return an average of about 7% annually adjusted for inflation over a 30+ year period. This means that your investment MAKES YOU 7% after inflation…you then spend 4%…leaving you with an extra 3% left over as a buffer for safety. And this is the basics of how this study is calculated. This takes about 100 years of historic data and market returns into account to determine a number that should be safe in the majority of market situations.

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How to make Passive Income 101

The first myth is that you need money to make passive income. When it comes to making passive income, there are two strategies behind it: The first option is to BUY your passive income The second option is to spend your TIME creating passive income If you want to buy your passive income, consider that every $100 you invest buys you anywhere from $3-$7 of passive income annually. But what most people HERE are interested in is spending their TIME, not MONEY, creating passive income. This could be creating and selling a digital product, drop shipping, amazon FBA, affiliate marketing, making YouTube videos, renting out parts of your house that you don’t use, the list goes on. If you don’t have money to invest, THIS is the best way to start. But keep in mind, when making passive income, you are paid in DIRECT relation to the value you provide – you cannot just get something for nothing.

The second myth is that passive income lasts forever: you set it up once, and you’re good for life. I’d like to say that in 95% of situations, this is not the case – it will not last forever, at least not without a fairly sizable amount of risk that it disappears. From the way I see it, most passive income streams will be set up to run for a few months to maybe a decade – and then they need to be re adjusted and modified, or maybe they simply become obsolete and they don’t work anymore.

The third myth is that passive income is doing nothing. And this is true. Kidding. So whatever income stream you take on, chances are it will require SOME level of work…even though it might not be much, in 99% of situations, it will be something. Some more than others, but regardless, by leveraging your time, you’ll likely make WAY more per hour of your time than you could in any other business.

The fourth, and final myth is that passive income is easy. And to be honest, it can be easy…once it’s already set up. But setting it up is hard and time consuming, otherwise everyone would be doing it. Earning passive income, in most cases, is really just like delayed compensation…you put in a lot of time and effort now with no pay, under the expectation that you’ll get paid all of it back plus interest in the future. Most people will not have the discipline to do this, most people want the immediate results and get frustrated when its been a week and they haven’t earned any money yet. Then they complain, they quit, and then try something else with similar results. And the same thing happens. But if you have the persistence to make it work, I have no doubt you’ll make it work…just do me a favor and have quality. There is always a market for quality, no matter what it is. Quality gets people coming back, quality makes you stand out, and quality gets happy repeat customers.

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Why You Need a Roth IRA

A Roth IRA is a type of investment account that you can set up where you invest your money today – up to $5500 per year with no immediate tax deductions – and can pull out your profits and earnings tax free when you’re 59.5. That means you pay NO TAX on YEARS of compounded interest and earnings. Your tax free profits just makes you MORE tax free profits. And it snowballs into a LOT of money.

This is best done when you’re young for a few reasons…the money you invest in a Roth IRA is done post tax, which means taxes are already taken out of the money that you earn at the time you invest it. So if you make $20,000 from a job, you might be left with only $17,000 after paying taxes…so this $17,000 is now “post tax” money. The reason this is best when you’re young is that chances are, you’re not earning a ton of money compared to what you WILL be earning. When you’re earning a lot of money, it’s about reducing what you owe in taxes because the more money you make, the more money you’re generally taxed. When you’re not earning a lot of money, you’re already in a lower tax bracket, so it’s advantageous to take advantage of that and pay the taxes now to invest – because in the future, you’ll hopefully earn a lot more money. Especially if you’re 18-30 and not earning a lot of money, this is PERFECT for you. When you start earning more money, there are other accounts that might make more sense for your situation.

So here’s what I would do: If you’re under the age of 18 and have a job that you’re making money with, you can ask your parents to open a Roth IRA account for you. From there, you contribute money you’re making from your job – keep in mind you cannot contribute more than you earn, so if you earn $1000 that year, you can only contribute $1000.

You can contribute up to $5500 of earned income every year – if you make too much money, you can look into doing a backdoor Roth IRA contribution. I recommend putting in as much as you can afford and forgetting about it. The advantage is that since there’s compounded interest, the sooner you put your money in, on average, the more you’ll have by the time you retire.

Is this a boring investment strategy? Yes. But it’s effective. I recommend just doing this on the side with what you can afford, while continuing to invest elsewhere or investing in yourself.

Just to give you some ideas, if you invest $1000 per year at 18 and retire at 60, you’ll have $264,000…of that, you only contributed $43,000 over 42 years, meaning you just made $221,000 of tax free money.

If you invest $2000 per year at 18, same situation as above, you’ll have invested $86,000 and made $444,000 of tax free money. If you invest the maximum right now of $5500 per year at 18 years old, you’ll have invested $231,000 and made over $1,200,000 in tax free money. If you just do $5500 per year at 18 years old, you can retire a millionaire without doing anything else. This average figure includes inflation, by the way.

I hope this helps and that this sets you up for future financial independence.

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Awaken the Giant Within: https://amzn.to/2mMmrdP

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Kylie Jenner 101: How to be a “Self Made” Billionaire

Kylie Jenner was first brought into the spotlight in 2007 when “Keeping up with the Kardashians” began airing. It’s no surprise, obviously, that Kylie came from an extremely affluent family. The popularity of their Reality TV show, combined with the emergence of social media, proved to be a winning combination…Kylie is now one of the most followed people on Instagram at 111 MILLION followers…but it’s how she was able to leverage that that really gets interesting, and that’s what I want to focus this video around.

In 2014, she took $250,000 of that and began producing her own lip kits. She leveraged her social media following for a few months, hyping up her lip kits…and when she launched, she sold out of her 15,000 kits. Within one minute. At that point, she expanded with Shopify. In early 2016, she rebranded as “Kylie Cosmetics”…and that’s where the fun began. She’d hype up her products on social media, and day of launch – she’d sell out…to the tune of 19 MILLION DOLLARS. In just 24 hours. And the best part….it was all digital.. A partnership with SeedBeauty outsources EVERYTHING.

But, here’s the billion-dollar-question…does this actually make her “Self Made?” Honestly, “self made” is just such a loose term…Each of us has a different definition of “Self Made,” and the reality is that we will each be born with some types of advantages in life. I think it’s important to realize that all of us right now are born with an advantage that many don’t have…if you have the luxury to sit here and spend your time on the internet watching a video on YouTube, chances you’re already in a pretty good position in life, all things considered. But what does this mean for Kylie? When she invested $250,000 into her lip care company, she could afford to take risk and chose more aggressive business moves, knowing that if it failed, it’s no big deal – unlike many people who would’ve played it more safe and taken less risk.

If I were to take a position here…and people might disagree with me here…is yes, I do believe she’s self made. While she certainly started out much further than most, turning what was probably $5 million dollars of her own wealth built through the TV show into a $900,000,000 fortune is nonetheless absolutely impressive, especially by the age of 20 years old. While her family did provide her with the start of that audience, it’s what she DID with it that’s impressive.

The bigger picture of this…is to realize that ALL OF US have some type of advantage that works in our favor that other people don’t have. Be grateful for what you have, and realize that just being alive and healthy is an advantage. It’s how you decide to USE that to your advantage that really matters the most…are you going to complain that someone out there has more than you and that’s not fair or that they didn’t deserve it? Or are you going to be thankful for what you have and go out there and become the next billionaire? Because the harsh truth is that nothing is fair…we’re dealt our hand in life, and we can either bluff our way and win the hand of poker or we can fold because we think we have something bad. The choice is yours.

Kylie Matte Liquid Lip Kit (Lipstick+ Lip Liner) (Candy K)

Kylie Gloss Matte Lip Kit (Lipstick+ Lip Liner) (Dolce K)

Kylie Matte Liquid Lip Kit (Lipstick + Lip Liner) (Koko K)

Kylie Matte Liquid Lip Kit (Lipstick + Lip Liner) (Leo)

The Biggest Mistakes People Make in Their 20’s (How to Avoid Them)

1. The first, and probably biggest one is living above your means and living a lifestyle that you can’t afford. This is also probably the most common one I see – and it’s easy to get carried away. It’s also easy to fall into this if everyone around you is spending money to the point where you feel compelled to spend more than you normally would, so you’re not left out. While you shouldn’t necessarily hold yourself back for fear of spending money, you shouldn’t be worried about saying ’no’ if you really can’t afford something. Make sure you have a 3-6 month emergency fund saved up so you have a cushion in case something happens, and do your best to manage your expenses. And remember to always live within or below your means – you can always increase your spending later if you really want, but that’s easier to do once you already have a healthy savings.

2. The second mistake I see so many people making is not building up their credit score. Building up your credit as early as you can will give you a significant advantage later on if you ever decide to buy a house or invest in real estate, buy or lease a car, rent an apartment, or finance just about everything. This doesn’t mean you need to spend any more than you normally would, or you need to go in debt just to improve your credit score…just treat the credit card exactly like it’s an extension of your cash. When you’re over the age of 18, just go and get a secured credit card. Don’t get carried away, you don’t need to charge thousands on the card, just gas or food money every now and then and you’re good.

3. The third mistake is when people just wait around, expecting something to magically happen to them. The realization is that nothing will happen if you don’t take the initiative to make it happen. And it’s sad that most people aren’t taught how to actually go after what they want…in school, you’re told exactly what you need to do and when you need to do it by. But in life, no one expects you to do anything, and you won’t get handed anything. I see too many people just waiting for the right opportunities to come along, but they don’t do anything to actively seek out those opportunities. If you want something to happen, YOU will need to make it happen – YOU will need to be the one to decide what you want and how you will get there.

4. The 4th mistake I see if people being too afraid to take chances. Your 20’s are a time where you can AFFORD to take risks and be okay, because with each failure comes with the knowledge and experience of what not to do. Sometimes you’ll just need to take the leap of faith to pursue something and your 20’s is the perfect time to do that…before you’re tied down, before you’re married, before you have kids, before you have too much to lose…take the riskier career option. Start your business. Don’t be stupid, of course, but you can afford more risk in your 20’s than you can in your 50’s.

5. Stay healthy. Stay in shape. Exercise. Get enough sleep every night. Take care of yourself. When you take care of yourself, you’ll be sharper, you’ll make more money, you’ll be happier, and you’ll live longer. These are habits that are easy to start when you’re young and keep them consistent, than putting it off forever.

The Row Machine is the best investment I’ve made in my life today. 

How to Build Your Credit

This is going to be one of the most important blogs I’ve ever made: how to get a credit card, why you should care, what factors increase your credit score, and how that can ultimately help make you money. I got my first credit card at 18 years old, after banks turned me down for a loan on real estate – this is from my experiences building my own credit.

Your credit score shows banks how responsible you are with your money. The scores range from about 300-850, with the best rates being available to those who have a score above 740. It shows banks how likely you are to potentially default on a loan and they adjust their interest rate according to their risk.

They calculate your credit score based off several factors:

-Length of credit history – the longer you’ve had it, the higher the score.

-How much credit you have available to you – the more money you have available, the higher the score.

-How much of it you actually use – the less money you use, the higher the score – this is called utilization rate

-On time payments – if you’ve never had a late payment and always pay on time, the higher the score

-The diversity of loans you’ve had – if you have variety of credit cards, auto loans, home loans, the higher your score.

-Total inquiries – this means that every time you apply for a loan or credit card, it’s marked.

The more times you apply, the higher risk you’re seen, since people who apply for a lot of credit in a short amount of time might be desperate for money, so this temporarily lowers your score. But lets not worry about this since for most people just starting, it won’t make a difference.

Credit card misconceptions:

-You do NOT need to pay interest to increase your credit score. Pay it off in full, you do not need to keep a small balance each month.

-It does NOT hurt you to check your own credit score. I use CreditKarma regularly to keep track of my score and where it’s at.

-It’s also false that having too many cards will decrease your score – the opposite is true.

The more credit you have available, generally your debt-to-credit ratio will be a lot lower, which will increase your score.

-Do NOT close out a credit card, especially if it’s an old account. When you close a credit card, it also closes all that credit history – which is a huge component of a good score. Keep your credit cards open even if you don’t use them, or if you pay an annual fee, see if they can downgrade the card to a free account.

-NOT all debt is bad. There can be good debt – like a mortgage, or an auto loan where your money is better off invested somewhere else – or bad debt, which is that expensive Hawaiian vacation for $7000 that you couldn’t afford but you did it anyway because you put it on a credit card. Debt is a great way to leverage your money and have it work for you, earning MORE money in your investments than you pay off in interest.

Now keep in mind, a credit card is something to use responsibly. Just put a normal amount on the cards each month as you would cash or a debit card, and pay it off in full. That’s it. It’s really, really simple. Eventually you can take advantage of great credit card rewards that’ll get you free trips and perks. Look up credit card churning for more information.

Tips Everyone Should Know Before Buying a House

The first, and biggest mistake is not to worry about minor cosmetic issues. I’m talking about referring to walking into a home and not liking the paint color. Or not liking the carpet. Or thinking the backsplash is ugly. Too many buyers get caught up in the small, easily changed details that they overlook the bigger picture and pass up an otherwise perfect house for something that can be changed out within a day or two for minimal effort.

Anytime you’re checking out a property, look at 3 things: -The location. This is something you’re stuck with and can’t change, regardless of how much money you sink into the property. The second is the floor plan. This CAN be fixed, but it’s just a matter of money. At a certain price, things just don’t make sense to fix – if you’re buying a property for $150,000 under market value, then maybe changing the floorpan can be justified. But if you’re buying at retail level and think the floorplan sucks, then maybe the house isn’t for you. -The third, like I mentioned, are cosmetic issues. These can easily be changed for very inexpensively, all things considered. Don’t get caught up here.

The second thing to know is that when you see a property, it’s usually only during an hour in the day – sometimes a weekend afternoon, or a week day after work. But it’s important to understand wha the house is like throughout the day – sometimes what you could be a quiet weekend street is filled with back-to-back stop and go traffic during the week as everyone gets off work.

The third is to consider neighbor noise and much like the first example, go there late at night or on weekends and see what the neighbors are like. Trust me on this one…while neighbors come and go, and chances are they won’t be noisy forever, at least have an idea what you’ll be getting into.

Fourth thing to consider is commute times. Obviously this won’t matter if you’re buying an investment property, but for anyone else, figure out how long it’ll take you to get to and from work depending on traffic. Especially in Los Angeles, what could be a 15 minute drive at 2am might turn into an hour long commute at 6pm.

Fifth, is to always get the home inspected – this is a common sense – I’ve never seen a home NOT be inspected, but I can’t stress the importance of this enough. Get the home inspected, and do as many inspections as you think will be necessary. Even if not to try to get a credit, but just to know what you’re getting into.

Finally…as a 6th bonus tip for reading all the way through, because you’re the real MVP…don’t open up any lines of credit or buy anything expensive 6 months before getting your mortgage. The worst thing you can do right before getting a loan is to get yourself in debt or give the bank any reason not to give you the full amount promised. Always get the mortgage, first – then whatever you decide to do after that is on you.

How I Dropped Out of College Debt-Free

 

        Now I know this post sounds too good to be true. But its factual I indeed dropped out of college debt-free not once but twice. Over 2 million students drop out of college due to a multitude of reasons. Being student loans, depression, or even finding their own niche. In today’s market dropping out of college is a lot more common than it used to be. There are many sites out there that show ways to get rid of student loans after you graduate. But not many that show how to do it while enrolled in school full-time without scholarships, grants, help from their parents, and student loan forgiveness programs.

       Almost 40% of students dropout of college to avoid going into further debt. Those that consider dropping out have accumulated nearly $20,000 in debt. Another 15% have accumulated $10,000-$18,000 in debt. This is becoming a problem that needs to be addressed immediately.

        Not only will I show you how to make money and get out of student debt, but also create a career. This is not a Dropshipping or Amazon FBA ad to get you to spend money you don’t have. All you need for step one is $80. That’s right $80 dollars, I know you can spare $80 bucks your books are like $300 each. That’s like six 30 pack cases of Natty Light. But on a serious note thats it just to get started everything from here on out is free. Once you build your BlueHost website you need to build traffic fast. The best way to do this is through social media, forums, and blogs. Once you get traffic companies will start to reach out to you. It’s like free marketing they’ll ask to pay you to place their ads on your website. Since it has a devout following just like gaining followers on a social media platform.

       Youtube pays its creators through ad revenue generated by the views on your videos. Once you reach 10,000 views you can start to place ads on your content, which will generate revenue. Marketing companies pay to create ads for Facebook and Instagram. So companies even pay to monitor others Instagram profiles.That’s honestly it you don’t need anything but since you read that entire thing I’ll throw in a bonus step.

Step 1:  Build a website using BlueHost

– $80

– Create a Professional Logo

– Generate Traffic (Facebook, Instagram, Youtube) 

Step 2:  Create a Youtube Channel

– IT’S FREE

– Don’t need a camera use your phone

– Editing Suggestions (Imovie, Final Cut Pro, and Adobe Premiere Pro)

Bonus Step:   Headphones and Music

– Drown out the noise (Beats by Dre)

College Dropout by Kanye West