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DeletedUser2

Guest
Some one pinged me recently and here is my reply, I thought I would share it since I had a blast writing it.
Enjoy


Background a 17 yr old asked if I could mentor him....
here is my response.




so, your in high school. great. you want some real quick advice? dont got to collage. that's just my experienced opinion. Go start a business instead. You will learn more, faster.

your young yet, so to be honest, I usually wait until someone is in their mid 20's to begin mentoring them.

why?

because at your age, you dont even know what you dont know. and I have tried mentoring younger guys, but really, they are so busy trying to tell me how the world works, they they dont seem to have time to listen to what I have done, and what I know.

So, I let them talk, and several years later they apologize and ask again.

what you need at your age is a coach. someone who can kick your a$$ a little bit, and can help you focus. not really a mentor.

a coach can say, you want to do biz? go do this and this and this. let me know how it goes.

mentoring is a whole nother level.

the people I mentor are people who

1. are ready for a mentor,
2. have a burning desire to succeed, (and will probably succeed even with out my help)
3. are in the industry or sector that I am already in.
4. have a symbiotic relationship, with what ever I am doing at the time, adding value to me and my time. (example, if im buying apartments, then the people I mentor are usually in real estate, if im selling shit online, then they are online focused, if i am investing in companies then they have the resources to do so as well, or know others who can)


now, good on you for contacting me. most people are just to chicken shit to reach out to someone they want to meet with. dont know why. but there ya have it.


so what I'm going to do for you is give you some advice. then, you can come back to me and let me know what advice you took, and more importantly what advice you didn't take, and why.

if there is a synergy, well, maybe we can chat from time to time. but to be honest, I get alot of people pinging me asking for the short cut.

so here is the short cuts. funny part is, few people actually believe it, or use it. :)


short cut.

Skip collage. go start a business. any business. fail at it. start another.

if you want to learn, (and you need to on a damm near daily basis) look up classes, or weekend workshops for what ever skill or info you are looking for

learn to be discerning about people who you learn from. find them. track them down, ask high quality questions and then act on it.

DO IT. what ever needs to be done, dont think about it, dont worry forever about it. just do it. regardless what others say. failure is the best lesson, and 1 good failure is worth 10,000 opinions from other people. f*ck em. they are not you, so get over what ever they say. they just dont know.

Take action. every day, towards your goals. get out of the chair get off the couch. get it done.

if you have an xbox, a ps3 or if you do pc games. Kill it for the next few years. seriously give that shit away. and read instead.

Discover your why. why the hell do you want to work that hard to make money? its 2-10x harder than a job. why work so hard? if you dont have a good why. your f*cked. find it. and use it as leverage on yourself to get shit done.

if you need someone to kick your a$$ to get shit done. pay them.
Give 10 checks for 100 bucks each to someone, and then promise to get it done, or they get to cash the check. believe me, that has worked for years.

Do it. get shit done.

dont be a pussy. stop being afraid. quit dicking around. what the hell are you afraid of? GO. DO IT.

Do things that scare the shit out of yourself. do massive things. make big plans and then push past them.

you will learn on the way. you dont need to know everything right now. you just need to find someone who needs something, and go get it for them.

you are seriously not too good to make coffee, fetch things, or do shit work. that's part of the price you pay of not having money get over yourself.

Help people for free. help those that are in a position to pay you well, and do it for free. it will come back to you in ways you never would have imagined. seriously.

leap, and the net will appear. sometimes the net will look alot like the ground. that's ok, its there to break your fall. :)

you will fail, you will suck, and it will take a while for that shit to stop happening on a regular basis. TRUST THAT THIS IS TRUE and life will be easier for you. (the upside is, at some point you stop sucking, and start really shining! )

ignore your friends. they will go out and get jobs, get nicer cars. go out partying, and shit like that. the parties they do now, will be epic for them later, when all they have is the memory of the parties, and the mortgages they pay. while you will be able to party for the rest of your life, with no mortgage, if you just learn to not suck :)

they say it takes 10,000 hrs
to really master something. focus on that, and f*cking master something. and no, its not call of duty or the latest assassins creed.

learn to network with the best and brightest people in the world, and you will have all the resources you ever need only a phone call away.

Hire people smarter than you, and fire yourself as fast as possible

make your "list" of must have skills then focus on getting them. take a class, take a weekend seminar, watch youtube vids on the topic, look up open source education, and learn stuff. Learn how to learn. you will never be behind if you do that.

ok, good luck, and have at it. when you get out of school ping me again, see where your at, and we may chat then.

Z
 
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DeletedUser2

Guest
NOTE: I originally was going to post this on another thread, but after writing it, I decided it needed to live in this thread, and a link to the other post was a better Idea.



Here is the orginal qoute by sean
I've been doing a ton of reading on successful real estate investors (mainly Sam Zell). It seems as though there is a correlation between the mega-successful leaders in this industry. They took advantage of distressed markets and when everything went back to normal(or better) they profited on a massive scale. With the economy the way it is I have the belief that an amazing opportunity to invest in real estate is upon us. What are your comments on this belief?
Sean

look, there are dozens of strategies in real estate, Im going to list a couple below.
the most successful guys usually pick 1 or 2 maybe 3 strategies and employ them relentlessly, over and over.

the secret is to not do every type of deal out there. its to pick your deal style, and goal, and go after that.

each one requires different skill sets, focus and temperament.

an example Rickson buys and holds for pretty much forever. I am WAY to ADHD to do that. (the forever bit)
but I will lay out some of the ones I know, and ones I have Done, as well as ones I have not done.

basically there are 2 main schools of thought.

cashflow
and capital gains (there are others but for now, let me speak to these)

1. in the cash flow model, you buy with the focus of keeping properties bringing in cash flow over and over for a long period of time.
2. capital gains, you buy with the intention to creating as much mass cash as possible

as for timing the markets, well that's one way, but it may mean if you use that strategy exclusively, then you may have to wait a decade or more for another crash. so while it sounds great, its a 1 legged stool. best to not rely on it.

so about cashflow.
1. in 1996 I started buying apartment complexes. I would buy 15-50 units at a time. the goal was to get at least 100/month per apartment in net take home profit. (im not going to explain the financial mechanics here im going over the concept first)
if i bought a 15 unit apt complex.

I would sometime get to take home between 1,000 and 2,000 a month. if you look at it that way, doesn't seem very attractive at first. lots of work, risk ect for just 1000. ugh.

HOWEVER after a year, it was closer to 2000 consistently (kicking out bad tenets ect helps.) but 24K a year in income, not really able to retire on. I know people do 300-500 a month on some houses they buy but apartments are different.

after getting 1 under control I went shopping for more. I bought another 16 unit 6 months after teh first on. suddenly I added another 1500 a moth to my income. 6 months later I bought a 44 unit apartment, adding another 3500-4500 to My income.
fast forward to 2 1/2 yrs later I had 250 apartments and I was doing between 30-40K a month. NOW it seemed worth it.

The income was also used to improve the apartments, increasing the rent, over time, and to pay down debt. so eventually they could be debt free, and if done right, you could be pretty close to debt free in about 8-12 yrs depending on your strategy.

this is an example of a cashflow model. other cash flow models include
buying mobile homes, renting them
buying and selling mobile homes on contract (notes) and keeping the cash flow with no landlord issues
buying land, renting it to ranchers, or farmers,
buying mobile home pads renting them to mobile home owners
renting commercial buildings to businesses
lending money on real estate
buying notes, or holding notes (installment contracts for sale) on real estate
these are just some examples. there are alot more.

The Advantages:
keeps money coming for Years or even decades after your initial transaction.
disadvantages: it can require money up front to start (not always) it can take a couple years to build it to the point of making enough money to kill off a job.


Capital Gains

many people believe you need cash to buy the properties (you dont) but if you wanted to make money fast to be able to buy cash flow properties, then it requires a different type of thinking.
you become transaction focused. buying and selling a property (flip) or wholesale ect, are examples of this. the whole idea is to acquire something at a lower price and sell it for a higher price in a short period of time. since you mentioned the crash, i will just say, this can work in any market. what alot of people dont realize is the market crash happens every day, someplace.

let me say that 1 more time. markets crash every day. it may not be the wider market, it may just be someones personal market.

here is an example of what I mean.

Death,
Divorce
Debt
Distress (the 4 horseman of personal crashes) or the 4D's

these are when people may have an asset but loses its value TO THEM. time becomes their enemy and you can make money in the "crash" that happens. an example is someone came to me with a house that was worth 170K.
they only owed about 90K on it. BUT the 4 horseman came calling, in the form of a divorce. the wife owned the house, and she was devastated when her husband asked for a divorce.

she sold it to me for 5K in cash (provided I could pay that day. She then moved out, and left.) a personal housing crash, left me with an 70K+ profit because of a market crash (it was in 2005 when the markets were still booming) and yet crashes can still happen

examples of transaction based capital gains strategies
1. buy fix sell (flip)
2. Whole Sale to other investors
3. subject to, then sell,
4. develop land build house and sell
5. foreclosure and sell.
ect ect ect.

This is all about the act of buying for the purpose of selling.
advantages? big chunks of cash all at once
the disadvantages? the cash stops the moment you stop doing transactions.

Skills, Focus and temperament needed
as you pick and work your fastlane you will find that you either have the skills, and temperament for it. or you dont. lacking the skills can be fixed, (see below) by skill acquisition. lacking the temperament, is much much harder, and more likely to end in failure.

Ask rickson to start flipping properties, evaluate hundreds of properties a month, buy and flip them.

You will most likely find him to abandon the whole project before breakfast. ask someone who is highly active, and believes that they are not really working unless they put in 18 hrs a day. So the idea of sitting, buy 1 property at a time, and then sit on it for years? "
You will find that person failing in that particular strategy, before they even get started.



for cashflow
Skills,
understand the time value of money, TVM calculations, and TVM evaluation
I picked up a book called calculator power, and after spending 2 weeks with a financial calculator, and the book I had a good understanding of how TVM worked. how it affected buying decisions, valuation and profit of cashflow property. once you have acquired this skill (about 2 weeks +/-) then you can confidently asses your options, and decisions, and make money here.

Temperament:
more patient, analytical, willing to put in the time on the computer to asses a property, or deal, slower to act. willing to revisit the deal several times before its structured the way you want. willing to put in the work, understanding that its 6 months to 6 yrs before you realize your goals. can see the future, and understand it a process. not in a hurry. typically will take time to aim to shoot 1 good bullet to get 1 good deal rather than spray and pray.

Focus activity: They scan the landscape understanding the market as a whole. and look for the right deal that "pops up" from time to time.
consistent actions in small amounts every day. say 1 hr in the morning looking over deals, waiting for the right ones.

for Capital Gains
Skills: They have a understanding of the current market. what others are willing to pay for the product, what others are willing to do to buy. constant updating of market information. finding out what others are doing, what the market speed is (how fast things are selling) what the market pitch is, (uptrend or down trend) how fevered is the pitch, how market pressures are affecting prices in in the next 30-90-180 days. mostly ignores the market past 180 days.
can BUY quickly, asses the property quickly due to market knowledge, sell quickly because they network with other buyers. or future buyers.
Sales Skills, People Skills, Networking Skills. a hustler. making it happen.

Temperament: this person is usually high activity. Right now is barely soon enough, a hustler. kinda pushy. which is perfect for this market.
always looking for a deal.

Focus activity: while scanning for deals, instead of looking for 1 perfect deal right now, they want to do 10 ok deals right now.willing to settle for smaller profit margins on larger volume. 10 deals at 10K a profit each per month is better than waiting 3 months to find a 100K profit deal. churn and burn activities.


depending on where you are at in your life, you will tend to gravitate towards one or the other. once you master 1 you will see that while markets go up and down, you can do what Sam Zell Does if you have that temperament and focus. or, you can still achieve huge wealth regardless what the market does. if your strategy is not market dependent, then the market fluctuation are just gravy on a otherwise solid strategy.

so picking your strategy is more about deciding where you are on the temperament scale, adding the skills needed and training your focus for the most effective and profitable process. NOT what the markets may be doing.

so while there are LOTS of strategies out there. they still focus on 1 of the 2 basics. cashflow or capital gains.

so if you hear about;
mobile homes,
paper buying
notes,
flipping
renting
rehabbing
subject to
lease options
commercial
shortsales
land
development
tax liens
storage units
land contracts
land trusts
apartments
hardmoney lending
rent to own
ect,

you will know these are all strategies that follow one of the 2 basic formats, and are usually responses to where the larger markets are in the cycle of ups and downs.
Hope this helps

Z
 
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DeletedUser2

Guest
been a serial entrepreneur since 1991 (when I was 21)
Started and run 14 diff businesses, online and off line. (not all successful)
Bought over 250 apartments in 2.5 yrs starting with no money
Started a company, took it public, built it for 5 yrs. Raised 90M in money for it and other businesses of mine,
Was up to buying over 300 houses a week in 2007,
sold out 2007, Started online business in 2008,
buying up businesses, mostly websites now
hard money lender,
Angel Investor,
Coach for executives,
Do consulting for companies that want to raise money or go public,
Sit on a few boards of directors in a strategic capacity.
Deal Maker, and Strategic Connector.

so.... been around a bit. that's all.
 
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DeletedUser2

Guest
ANOTHER NUGGET TODAY

Your competitors can be your best friends...

So, I was recently sitting with a young man the other day, and he was laying out his plans for making money. WASTE OIL. right? like from restaurants. FRY oil ect...

and he was telling me the numbers on it, and how it can be used to make soap, bio diesel ect. (apparent there is a pretty active secondary market for that stuff)

in any case there was someone already in the market, and had a monopoly on the market, and they had setup a great barrier to entry.

restaurants need to have their grease traps cleaned out. so this guy, had offered to do it for free, in exchange for hauling away thier fry oil.

wow what a great barrier. anyone new in the market, would have to overcome the FREE cleaning to get the oil.

in any case this young man wanted to do it because it was "sustainable and green" his model of the world.

after doing alot of market research he was stuck on how to overcome the free. if he paid for the oil, (some do) he would have a pretty thin margin to operate with. so I suggested he go to the guy who owned the other company and make a deal.

here is what he found out.
1. the guy is older (nearing 70 now) and none of his kids want to do the oil thing, they are all grown and moved onto their careers.
2. the old guy just keeps plugging along with his 5 employees like he has for 20+ yrs.
3. the guy has the the town sewn up, has all the equipment, and has all the buildings and land set up for a pretty smooth operation (20 yrs of optimization)
4. there are 3 other towns in driving distance that could be included in a growth strategty, but the guy is just to old, and makes more money than he can spend anyway...
4. the guy has zero exit plans. because he doesn't know what to do. or how to sell.

here is what I suggested to the young man. I am posting this so you can get some other ideas of how to approach business rather than startup....

1. go to the owner, offer to buy it from him.
2. offer to jv or partner with him by expanding to the other cities FOR him, using his processes, his trucks, and his land.
3. offer to buy it from him in parts, (20% now, with an option on all the rest over time. some now, some every year, at a fixed price)
while you go out and increase the business, letting the growth pay for the aquistion.
4. get a partner
5. offer to work for him at a reduced rate for x period of time, with him teaching you the biz, or work for him, buying his equipment for work.

the whole point was solve this guys need. what does he need to do? not work 40+ hrs a week at 70. give him an exit plan, that works for both parties,
give him the future growth, with out having to hire a bunch of young sales people to do it for him.

there was so many ways to solve a need, provide massive value to the owner, and still step into a healthy profitable business, with growth potential, and income from day 1.

what did the old guy say? HE LOVED IT! now he is motivated to find an exit, where he never had one. they are working out the details now.

I just thought I would share that. it can be faster, and less work than a startup.


Z
 
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DeletedUser2

Guest
I get PM's from time to time. and sometimes I need to share them.

I dont share WHO, I just share WHAT.

here is one I got the other day, and then MY RESPONSE (see below)


THE PM
Hello Mr. zen*******. I'm writing this message in hopes to actually have it read by you. One of the leading members on the site. I know you might get tens or hundreds of messages a day, but I would really like you to read my situation and my plea. I'll first start by who I am. I'm a nobody, I recently wasn't able to attend my spring semester of college because of my financial problems. I'm also someone that's lucky enough to have a supportive girlfriend that is with through all of this. I currently live at her off-campus apartment with two of her roommates. That's how I have internet connection and that's how I came to be on this site. I also left my parents' house because they have pounded my head with ideas of becoming a doctor, getting a 3 figure salary, and marrying into another Korean family. I've had many scars, emotionally and physically, because my family is a traditional family. So this left me in the most depressing and confusing part of my life so far. I can't attend college anymore, all I have is 300 dollars in my bank account, and I have a girlfriend that supports me with food, internet, and a roof over my head. Recently my mom tried to contact me through the phone that I have, but I left it off for about 1 month now. The reason being is that I know 100% that my family will inhibit me from following my dreams and pursuing roads that she does not even know about.


Recently, my girlfriend and I were extremely worried that I won't have a place to go for 2 weeks because the apartment will go to another person during the summer. But luckily things worked out. We found a place where both of us can live for two weeks and move in after that to her apartment for next year.


I'm really happy and glad to say that I have a place to stay for the next year. But at the same time, I'm really unhappy over the fact that my girlfriend is giving me all of this support and I have nothing to show for it. Every time she swipes her debit card, it breaks my heart that I can't return the favor. She always says it's not a big deal. She always says that it's okay. But to me it's not okay. It always pains me to see her spend so much money just for two people. I would really like to pay her back and show her that my dreams aren't just dreams, but a reality at the same time.


I recently lost interest in cars, games, and money flying in the air. Those were just fantasies that everyone has. Few can actually make it happen, but even fewer know that they don't need those things. Not saying that one should buy those things like cars and games, but for me in my situation, those things aren't necessary. I ultimately want to marry my girlfriend and live in the city close to her parents. I just dream about how I can live in the city, be a business owner, and at the same time return the kindness that my girlfriend provided me with. I don't even know what to do or where to start.


Mr. zen*******, I really thank you for your posts that you've posted, and I was truly inspired when you said that you had real estate all over the country. It showed me how wide your network of real estate was. Honestly speaking, I wished that was me. I wished I knew how to get there. I wished I can just have money to be a man and provide for my girlfriend.


I'm saying this again, but you probably get 10's or 100's of people message you and ask you to mentor them. You might be asking yourself what the difference is between what I'm sending you and what they sent you. The difference, in my opinion, is that I've hit rock bottom, I'm not lazy, and if you tell me to go read 1000 books in order gain the knowledge I will do that. Thank you for reading this if you have, and I ask you for your consideration to learn under you. Thank you and enjoy the rest of your evening.


MY RESPONSE
get a job. don't go to school, GET A JOB. one that is a shit job, but gives you a few bucks. don't be a leach to your girlfriend. get a job now.

THEN when you have one, THEN you start thinking, what next, what skills, what focus do you need.

f*ck being a doctor. they give me money to invest, because they don't know how.

just because you hit rock bottom doesn't mean shit. we all do it. it strengthens your character. if your not dead, yet, then it isn't as bad as it could be.

Go get a job. wait tables, be a janitor, be something besides a f*cking leach dreaming of hitting it big in a lottery fashion. your going to have to suffer alot for YEARS to make it big.
even a small biz is usually not very or profitable at all in the first 4-5 yrs.

the fact that you have to sponge off your girlfriend and beg me for magical mentor help is just indicative that your not ready yet, to even be a biz owner.

first problem to solve? yours.


PS> pick up the phone and call your parents.
tell them you fine, your growing and you have to figure this out on your own. if and if they try to tell you what to do, remind them, that pushing you right now, results in no phone calls.
letting you figure it out, will mean you will keep in touch, even if to just let them know your ok.

that's BEING A MAN. right now. your a boy.

GROW A PAIR and help your girlfriend, your parents, and then yourself. when you have a job. take every other hour that they are not sucking up, and use it to explore businesses, opportunities, and pain points of those around you.

when you can do that, business will become easier, and more apparent to you.
till then. you will f*ck up anything I could hand your or you could touch anyway.

you have a long way to go. don't drag everyone along in a muddy mess, while you figure this shit out. becoming a man, is what your doing, THEN it all makes sense. also, the whole Asian parent thing... ya, I know it sucks. but its your choice on how to deal with it. becoming a man is part of that process (here is the secret) all our parents do the same things. and we all have to find our way.

your not ready for mentorship. I would blow you outta the water. and it would be a waste of my time.

get your shit together and in a couple years. MAYBE.

good luck. don't waste time, go get it done

Z
 
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DeletedUser2

Guest
More Golden Nuggets

I wrote this a couple yrs ago and just found it again, So I thought I would add this.


8 proven business models that work on the internet (plus one more that you can build into a massive company)

1. Selling space
a. Provide free content,
b. Lots of SEO
c. Low PPC usage
d. Time vs money
i. More time less costs ($)
e. Focus is on SEO and Content Creation.
f. Pros- can do with little money.
g. Cons- takes lots of time.


2. Affiliate marketing
a. 2 sides
i. Be an affiliate for someone else
ii. Provide products to people who are affiliates
b. Provide other peoples content/ products
c. Lots of SEO
d. Moderate to high PPC
e. Pros-Allows for focus on traffic generation only
f. Cons- Less money and little or no back end
g. Advanced Model of affiliate marketing is PPC arbitrage


3. Underachiever
a. Create small “mini sites” sells 1 product
b. Small traffic, the goal is to make 20-100 bucks per day per site
c. Fast creation
d. Some ppc usage
e. Good SEO
f. Front end only.
g. Usually sold to affiliate marketers
h. Pros- fast quick creation, and setup. Then your done
i. Cons- must keep making new ones, and you keep selling to different customers.

4. Overachiever (funnel)
a. Create front end product
b. Create subsequent products in increasing price.
c. All products are more advanced level of the first.
d. Some PPC
e. GOOD SEO
f. Front end products and back end, and coaching, and continuity.
g. Pros- great for deep markets, and can make as much or more on front end product more stable business.
h. Cons-must be main focus. deep marketing techniques needed, and lots of product creation

5. Membership model
a. Provide either a “library of products” for members or a consistent service for monthly billing
b. Med PPC
c. Pros- constant revenue
d. Cons-constant Product creation unless service.

6. MLM
a. Multilevel marketing companies
b. Create front end product and either give away or sell. that will Introduce MLM program
c. Usually membership based.
d. Pro- usually high quality product,
e. Cons- may be difficult to sell MLM to people if they perceived it wrong.

7. Offline
a. Create product to deliver online, capture off line addresses, send sales letters, and direct mail letters to address
b. Pros- can be very profitable people respond differently to real offline letters
c. Cons- you MUST know direct mail, costs and profit model before doing this. Very easy to lose money this way if you don’t use an expert.

8. Ascension, or Social Ladder
a. Socially driven marketing. Providing increasing levels of product, or information tied to a socially recognized tiered system (they want to belong)
b. Gold level
c. Gold level plus
d. Platinum level
e. Platinum level plus
f. Diamond level.
g. The goal is to provide more content at each level, and by offering specials and discounts ect.
h. People are paying more to have more direct access to you.
i. Pros- People will naturally want to reach next level,
j. Cons- it is very character driven. Best for someone who has charisma

9. Publisher model ( mine)
a. Create a single deep funnel
i. Over achiever method
b. Create additional funnel in similar but different space with different expert.
c. Create additional products to cross sell between funnels
d. Seek out and find top experts in their field, as it relates to you.
e. Pros- multiple deep funnels can provide deep profits
f. Cons-must be able to handle manage larger organization, must be able to provide clear goals and directions to group. Must know how to best integrate various funnels
 
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DeletedUser2

Guest
zen*******, I'm quite interested in your background prior to becoming an entrepreneur. Did you study anything related to economics? How did you acquire all the necessary skills and knowledge needed for entrepreneurship? Books, courses, did you have a mentor?


I became an entrepreneur when I was 21.


when I was 18, the house moved out from under me, and I went to school for a couple semesters. Found that school was too slow for my learning style. I took off, and spent time hitchhiking around the US for a while. (about 18 months ish) stopped and worked where ever. asked a lot of questions. I was totally curious about life, and how people were. I found that we all had a lot in common. I hitched rides with truckers, and people in BMW's I didn't see allot of difference in people with money vs. without money, except in how they thought. it was ALL in the head. I met guys in wheelchairs who ran multimillion dollar empires, and people in great health, slaving away as a dishwasher.


once I understood the only difference between rich and poor, was what was in their head, I embarked on living my life the way I wanted to. I hitchhiked up to Alaska, and started working on boats up there.

I managed to have lots of time to read, on long boat runs. I read everything I could get my hands on. economics, macro theory, interpersonal communication, philosophy, biographies. anything. I realized school didn't do it for me, BUT I was hungry for information. back then, you couldn't Google anything, there was no Google. you had to go to a library, and THINK about how or what you wanted to learn about, and then do research. it was harder to do, BUT that meant you had to be more focused to do it.


after I started doing business, I hit wall after wall, I had 2 things. I was curious, and I didn't quit. being curious meant I was always asking other people what they knew, what I needed to know, I asked everyone who was doing what I did. I wasn't afraid of asking questions. or, If I was afraid, I didn't quit, because I was more curious that scared.


I had several mentors, and I can say, that mentors shaved between 10 to 15 yrs off my learning curve.

they kicked my a$$, they questioned me, they pushed me, they held me accountable, they scoffed until I was fed up enough to show them, and they complimented me when I succeeded beyond their expectations.


I have had several mentors over the years. if you were to make an investment, in education, get it on YouTube. if you were to make an investment in people. find a mentor you can bring value to and then bring them so much value that they can't afford to let you get away.


some mentors I have had, never knew they were mentors. one of the things I did was take people out to lunch. if they ran a business, if they had a cool job I liked, if they did something I thought was interesting, I would pay for lunch, and I would ask them a ton of questions TONS OF QUESTIONS.


most people loved it, because I was paying attention to them, and I asked a question about them. and I SHUT UP, and listened.


by the way, I was one of those,10 yr to overnight success types. it's a long hard road sometimes. mostly what slows us down are excuses, and other lame reasons. (to many to list) knowing what I know now, I can build a business faster and larger than ever before.


. I can answer the "What's in it for me?" question easily. The "what comes next"-part is what's usually giving me a headache


"What's in it for me" answering that. in someone else's head. your trying to figure out what THEY want. what do THEY get what benefit is in it for them, interacting with you.


once you answer that question, then the answer is yes or no.


the what comes next is goal, vision, process, execution


Hope this helped


Z
 
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DeletedUser2

Guest
Todays Nugget

WARNING... this requires a TON of work. and is NOT easy.


one of the fastest business deals we ever made.


we attended a conference recently, where we put together a spectacular deal, Ill outline it below, but more importantly I will outline HOW we did it. the PROCESS.

we went to AD-Tech. one of the biggest online conferences for all the bigger boys in the industry. (want to advertise on line? you need to be here)

1 month before ad tech, we spent 2 hrs looking through all the lists of people going. and made a short list of people we wanted to see.
not a big deal, but that was only step 1

Next we contacted all of them. confirming ad tech, and stating we wanted a face to face meeting. outside their booth, outside the crowds.

then, we followed up with them. confirming, and moving appointments at things arose, but since our team kept a calendar, we could see what each person was doing, and we were making sure to move thing's around to keep everyone happy. we also kept pinging them. and kept them abreast of our impending meeting. as well as asking them about their business, and how things were going for them ( just good communication)

Now, at this point we were only doing business with a very few of them. most of them were only people we had not yet met.

when we got to NY at the conference it was meeting after meeting. and we were pretty clear on what we wanted from them directly.
we then went home, and followed up directly with them both with email, phone call, or txt.

here is what good planing, clear vision, great face to face meetings, awesome followup can do.

we got:
money to fund a new company, all the product and traffic we can buy.
a company to provide us with a super high quality product we can sell
a company to do the entire website process, setting up, ect
a company to bring us all the traffic we need
a bank to provide us with difficult processing
several experts who can improve our already good conversions

so in short. we can launch a whole new company, fund it, and put out a great product with all the traffic we need in just under 2 weeks.

if you KNOW EXACTLY what you are trying to do, the parameters of your success, and what elements you need to get it done. it can be done pretty quickly. if all goes well, we will launch another biz by Jan 1st, with a profit almost immediately.

the Key was to plan ahead for meeting the team that will help with your success. it only took a month of hard planning.

hope that helps



Z
 
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DeletedUser2

Guest
Ok, So I get alot of questions on how I do some of the things I do.
I am starting this thread mostly for me to dump my brain out every now and then

and to add some of the processes I do, some of the tips, and from time to time HOW TO's

This Is a thread for me to dump stuff, but feel free to Add things. All I ask is that you put it in a process format. so someone could pick it up, understand what it is, and go do it.

This thread is for action takers, who just needs the punch list to go

Over the Years I have come up with mini systems, or micro processes I will be sharing them here.
 
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DeletedUser2

Guest
WHAT TO DO IF YOU HAD TO START OVER

Someone emailed me recently and asked this question.

I slapped this out as a reply but thought it would make a good post, on starting over :)
Z

If you had to start all over again from day one with very little money in your account but knowing what you know now how would you start? Real estate, online business? Service business? and then roll things over into investments?
I hope to hear back from you soon.


knowing what I know now.

I would do 1 of 2 things.

if real estate, I would get a night job, as a janitor, to pay my own food etc.

Then I would hustle during the day for a big real estate guy, for FREE. for about 2-3 months. then I would go to him and say, Have I proved enough value that I can be included in your next couple of deals as a partner or small owner?
I would spend the next year working my a$$ off for him, and get in on 6-10 deals, with an nice little cash flow, and now have all his contacts. I would then launch my own deals, using his money sources, and donate back to him a 10-15% per deal equity piece for the next 2 deals.

then I would be on more or less equal footing as him in about 1.5 yrs. and have a couple million in real estate. and enough cash flow to not work a job (janitor job would have only lasted 3 months)

Then, I would grow a real estate empire to about 20-50M over the next 5 yrs. as a general partner/manager. I should be up to just under 1M a year in income then. and then I would hire great real estate guys to run the firm. and 1 guy to go to wall st, and raise 100M in lines of credit and equity share. build to 200M in just under 10 yrs. and either retire on the income or turn it into a reit or sell it off.

OR

I would do the online thing.
I would get 10 people to pitch in money, at a high rate of return, Go to all my affiliates, have them make me pages that convert well. rip them for me. and launch a supplement. run straight sale, and trials till I hit 1M a month. I would outsource every thing I could except accounting, run super lean

I would expand into multiple countries, to reduce the risk of FTC backlash, expand into multiple product verticals, all that do well via Direct response, tie down my core processes, and build additional companies around them. (all the companies we use now, would become in house owned. fulfillment, call center, processing/ISO Traffic, affiliate networks) then slowly extract myself out of the US while We grow the company.

eventually I would have a whole ecosystem that supported my core business in a way, that reduced costs, and became a profit center for others who were seeking to use our highly effective services (because I hired expert specialists to run each) then I would take it public in 1 or 2 markets, (us and Canada) so I could create a competitive environment for both companies, as they each sought to soak up market share but flowing up to me as the primary owner of both.

as profit flowed to the company, I would seek to mentor other individuals who I could retain 15-35% of their company, as I mentor them, and become their first investor check. thus growing a steady stable of promising companies, that have learned my lessons, much faster. and as they grow to profitability, taking home mail box money for decades after helping young guns, launch their business.

Oh, wait. we are already doing the 2nd one....
:)

then I would go back to Belize and buy islands again. and build out high end private estates, and sell them fractional ownership style.
:)

Hope this helps.

Z
 
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DeletedUser2

Guest
Just another Nugget

So here is another question I get.
How do i know if the product will be successful.

While it was talked about in the 4 hr workweek, some people needed to see it in action.

This is an actual test we ran on a product Idea a friend of mine had. While I said, it may not be worth it, she vehemently disagreed, so I showed her how to run this test, and we did it pretty quick

in the end she saved months of work, for a product that would not have made her enough money.

she ended up focusing on something that would and that's why you test. To kill bad ideas fast.
so you can really work on ones that are truly great.

The Test...
2011-05-19_2157 - xendolphin's library
 
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DeletedUser2

Guest
I assume you were buying bulk portfolio properties from distressed lenders/REITS? Otherwise 300 houses a week is 42 houses A DAY, or nearly 2 houses an hour if you are working with no sleep, or 4 houses an hour if you are working 12 hour days.

That means you closed a house every 15 minutes. Care to elaborate?

BTW, thanks for some great info! :urock2:

Yep Yep, we buying bulk REO, and bulk non performing notes.

We had built a whole network of RE investors around the country that we sold the Notes or the REO's too. With the Notes we often kept the servicing for the investors since we were geared for it, with a whole loan servicing platform.

Since we were able buy in bulk we were averaging a 25-30% on the dollar price point, (some as low as .09 cents on the dollar, some as high as .80 cents on the dollar) we could then turn and sell to investors at .50-.65 cents on the dollar if they closed quickly.

as an example, we would buy 100 houses on Monday in 15 diff states and have the bulk of it sold before Friday (maybe 60%) with the following Monday receiving funds from investors.

since we were bulk buyers, we would often purchase with a single contract, (if notes) or with separate deeds, or a master deed with the bank acting as a title insurer. (so not 100 single closings, because that would have been too much work)

it was very fast. if we found issues with title later (up to 2 yrs later in some cases) the bank would buy it back from us. since we had that guarantee, we often just passed that back down to the individual investors, speeding sales even faster.

Many of our local investors were repeat buyers we developed a reputation of buying back, or paying for, or discounting if there were issues.
since we were often in the buying banks problems and solving them, our local buyers were often in a similar market of solving problems, so they understood the model and it worked well.

the speed of the markets at those levels were amazing. we would get a new pool to look at Monday by wed we had our due diligence done, and a bid submitted, and we could close that Friday.

we built a pretty good reputation with the banks for fast closings. we often geared up for end of quarter or end of year pools. by doing that, we could get default managers (who were sweating bullets) and we would price as low as possible providing close before EOQ or EOY

We had a 75M LOC for closing pools fast, we would close a pool, sell off part of it, to reduce our cost basis in the pool then bring in joint venture partners in deals, who would fund the purchase of the pool from us, (replenishing the credit line) and moving the pool a longer term, maximization of the asset style of management.

We managed to outsource some of the elements of the process, by using many of the same networks that banks already use.

since we were private investors, and bought at a discount, our goals, and drivers of our business were much different than banks, who had restrictive regulations regarding bad debt, and non performing assets.

this company came about when I got tired of trying to compete with the sharks on the foreclosure court house steps. So i started going up stream.


Hope that helped illuminate how to buy 300 houses a week :)
 
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DeletedUser2

Guest
Here is another process I came up with for my Virtual Assistant.

It was very quick for her to do each day, and it yielded me about 1-2 interviews a month, PER topic as seen below.

This is one of the best, free ways to get PR with out paying for it. and from some trusted credible sources.
if you want to promote your website.


The Haro Process
1. Sign up for HARO, (help a reporter out) at petershankmen.com (aka Haro.com)
2. You will get 3 emails a day from this site. You should only take between 2- 5min each time to do this.
3. When receiving and email read through the list of requests looking for the following topics. Any of these topics will work. As you go, you may add to the list. Over time, I may also email you additional topics

1. Topic: startup/ Raising money, Raising capital,

a. Startup business

b. How to start a business

c. How to raise money,

d. How to raise capital,

e. Dealing with investors

f. Making good investments

g. Needing interviews for business, investments, or startups
4. Next look for the following Real Estate

a. Real estate,

b. Foreclosures

c. Banking crisis
5. Next looking for subjects with Online business/Marketing

a. Online business

b. Make Money online.

c. Internet business startup.
6. Then look for subjects on Chiropractic

a. Chiropractic health,

b. Chiropractic processes

c. (body) Core strengthening

d. (body ) Core Exercises

e. Anything with chiropractic
7. Solar, Wind, Alternitive Energy

When you see the above you will then send them an email as they direct, (often times they may wish you to put something specific in the subject box)

Send them an email, and cut and past one of the below paragraphs into the email. Depending the on the subject.
And example is :
Real estate
Cut and paste from the real estate section,
Send email with that paragraph.
Blind CC me (BCC:) so that I can see what you are sending out. Make sure to send out so that the return email is (MyEMAIL)

Startup topics Raise money, Raise Capital topics


Hi, I saw your post on Haro, and wanted to let you know I am available for Interviews, Here are some of the areas of expertise that I could be interviewed for.
Startups, How to boot strap, how to start a business, how to raise money, how to raise a lot of money from angel investors, Dealing with investors, Management, Executive Management/CEO, private investment, both as an entrepreneur, and as an investor.

Please feel free to contact me if you are interested or need an interview
My contact information

NAME
Cell PHONE
WWW.DOMAIN.COM (DOMAIN RELATED TO TOPIC)
MYEMAIL


Real Estate

Hi, I saw your post on Haro, and wanted to let you know I am available for Interviews, Here are some of the areas of expertise that I could be interviewed for.
Startups, How to boot strap, how to buy apartment complexes how to start a real estate business, how to raise money for real estate, Dealing with investors, dealing with tenets, dealing with landlord Management, different types of investment in real estate as an entrepreneur/landlord, and as an investor.

Please feel free to contact me if you are interested or need an interview
My contact information

NAME
Cell PHONE
WWW.DOMAIN.COM (DOMAIN RELATED TO TOPIC)
MYEMAIL


Online Business

Hi, I saw your post on Haro, and wanted to let you know I am available for Interviews, Here are some of the areas of expertise that I could be interviewed for.
Startups, How to boot strap, how to start an online business, quick ways to fail to success in online business, outsourcing, PPC, SEO, Local SEO for brick and mortar business, copywriting for online success, good experiences/Bad experiences in online world
Please feel free to contact me if you are interested or need an interview
My contact information

NAME
Cell PHONE
WWW.DOMAIN.COM (DOMAIN RELATED TO TOPIC)
MYEMAIL

Chiropractic

Hi, I saw your post on Haro, and wanted to let you know I am available for Interviews, Here are some of the areas of expertise that I could be interviewed for.
Subluxation and treatment, Allergies and Chiropractic care, Innate intelligence of the body, Chiropractic and insulin, Chiropractic and whole body care, Chiropractic and core strengthening
Please feel free to contact me if you are interested or need an interview
My contact information

NAME
Cell PHONE
WWW.DOMAIN.COM (DOMAIN RELATED TO TOPIC)
MYEMAIL

Credit Repair

Hi, I saw your post on Haro, and wanted to let you know I am available for Interviews, Here are some of the areas of expertise that I could be interviewed for.

Credit Repair
Credit counseling
Bad Debt
How to recover from Bad Debt
Collection companies


Please feel free to contact me if you are interested or need an interview
My contact information

NAME
Cell PHONE
WWW.DOMAIN.COM (DOMAIN RELATED TO TOPIC)
MYEMAIL

Alternative energy, solar energy, wind energy,

Hi, I saw your post on Haro, and wanted to let you know I am available for Interviews, Here are some of the areas of expertise that I could be interviewed for.

wind energy
solar energy
energy saving tips
off grid living
DIY electric cars


Please feel free to contact me if you are interested or need an interview
My contact information

NAME
Cell PHONE
WWW.DOMAIN.COM (DOMAIN RELATED TO TOPIC)
MYEMAIL
 
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DeletedUser2

Guest
Ok, guys, here is a freebie
This is a process I started to think up a while back, I decided to formalize it in one of my mini processes.

I posted something like this in another thread, but I don't remember where. I am putting this here, as part of my semi random collection of golden nuggets


How to get 2K in google adwords fast and almost free.
First you have to find about 20 $100 coupons not that hard you could go to fiver at
http://fiverr.com/users/affiliatehelper/gigs/give-you-one-of-my-75usd-google-adwords-coupons
to get these. If you look around, you can find 100 dollar ones, easy too. But for arguments sake, it costs you 5 bucks.
you need to setup 20 google accounts. About 20 hrs worth
and 20 phone numbers (yahoo voice or Kall8)
2 bucks per number.
Kall8 800 Numbers & Toll Free Number Services
or
Yahoo number.
and you need 20 credit cards, with 5 bucks each on them. So 100 bucks

Totals
20 cards $5 each $100
20 numbers $2 each $40
20 hrs setup $4 each $80 (offshore)
20 coupons $5 each $100
Setup 1 keyword set 1 campaign 3 hrs $12

For 1 account its $5+ $2 + $4+ $5 =$16
10 accounts = $160
20 accounts = $320
Setup up accounts,
Install credit card
Install phone number
Pick a niche to advertise in, or if you have a product, use that.
Setup 1 adword campaign, download it, copy it, and upload to other accounts
Setup excel sheet with all info centralized
since you now have 20 accounts and 2K of nearly free google ad spend. Start spending
Goal: to get as close to break even as possible on the money. I.e. spend a dollar make a dollar. You now have 2k to go and try something else.
If you can make it profitable, like a 2-1 ratio, spend 2K make 4K.
Should be able to be done in about 2 days setup time, and run for a month. Or a week.
Even if you are close to “break even” you have made a profit.
Since you have spent about $320 to get 2K you would have to spend 1 dollar and make only .16 cents! To just break even.
This also assumes you pay someone to do all this work at 4 bucks per hr, overseas. (odesk.com)
Essentially you could get about 10K in advertising for a mere $1600 bucks. What a return on investment if you did this. You now have your grub stake to go out and try almost anything after that.

Z
 
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DeletedUser2

Guest
Here is a process around marketing.
for creating quick impact full videos.

I just Love the google/youtube tool


Here is how to make a quick video with some punch

I made 1 quick video,

then I sat back and thought if I only had 7 Lines to express my "message"
what basic rules could I create

so any one of my outsourcers can crank these out.


Here is what I Came up with.

1. Your Target markets BIG QUESTION

2. Your target markets REFINED question (when the big one doesn't
answer it)

3. BIGGEST BENEFIT you can give them (if they had the answer now)

4. Next Biggest Benefit you can give them

5. Emotional Hook (or heightened emotional state they are experiencing
or seeking out)

6. Decision that you want them to make

7. Fast forward to their dream as if it already happened.



By structuring your 7 lines like this, you can walk someone through a
sequence that ends with emotion, and a call to action and the benefit of
doing it. For short videos, that you can make, this is a huge marketing
tool Google handed us.


I just thought I would share the micro process I came up with for some of my SEO outsourced employees.


As an example of one I did (not the best one)

www.gardenologyshop.com - YouTube


for the funny one I did for fun

Google is big brother - YouTube

To create your own, go to
https://searchstories-intl.appspot.com/en-us/creator/

More to come.
Enjoy
 
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DeletedUser2

Guest
my 500th post.

I thought I would do a post for my 500th post, on some deep insight or great process ect. but instead, I'm posting here because of the simple golden rule. one that has served me well over the years.

and unfortunately someone I know, recently ignored and is now going to prison, more on that in a second.

the golden rule, applies in business and in life. here it is

Dont Lie,
Dont Cheat
Dont Steal

pretty simple. really.

the unfortunate part is some people really never learn this. they play in the gray areas, long enough that it becomes second nature to them, they shave the line, enough times, or even go over the line and never get caught, that they then think that its ok.

its not OK.
not even close.

this person promised to NOT do certain things, was even paid to not to do them, and then promptly broke that promise. thinking no one would notice, or if they did notice, no one would care, or even if they did care, no one could do anything about it.

How wrong he was.
although I hate to spend money going to court, (only the attys ever win it seems) we recently dropped 10K on taking him to court,

Oh, and the FBI were notified also.

you see, when people think its a LITTLE OK, to lie cheat or steal, pretty soon they think its MORE OK, to do it. and eventually, it leads them to the point where their brain is justifying some mighty whoppers, and even some bold ILLEGAL actions. and he did it with the same ease as if he was just sending an email.

when you do these things, you don't create value, (the foundation of wealth) you steal value, you destroy value, you destroy part of yourself.

This person will be serving up to 10 yrs in prison now. unfortunately. and at the ripe old age of 24, that's going to take a terrible chunk of his life. and forever destroy his credibility, and trust with most people.

The point is this. its HARD to stay truthful. its HARD to not take short cuts even when you know they are wrong.
BUT

learning to do so is a process. and its WORTH IT. it took me years and one kick a$$ mentor to get there.
but I never have to look over my shoulder and wonder if the cops are coming. I never have to worry about losing sleep over something I did.

This guy, is going to be worrying for a long, long time, and it will never go away. I hope he learns his lesson, and I hope I shared something of value here for you.

It really is that simple.

Z
 
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DeletedUser2

Guest
how to filter out bullshit interactions from people who waste your time.
Context: someone asked me how to stop getting so many crappy emails, from people who cant write their way out of a paper bag.

INTERACTION FILTERS:

HERE is what I did.

I used to have a bunch of sales people run up to me and say Hey I got this guy who wants to buy a property. and they would launch into the details of the deal...

now I was a CEO of a public company at the time, and was constantly bombarded by accounting, the attys, operations, sales ect.

So I created a series of interaction filters for each and enforced it.

for sales
1. if you bring me a deal and you want a yes/no on the spot, bring me 4 things. A. how much we bought the property for B, how much are they offering C our profit D the speed at which they could close
And I would give them a yes no on the spot

for the attys.

A. what is the JV deal and with who
B. is it outside the normal parameters of our deals
C. If yes, HOw much and what are they offering to offset us for a parameter change
D. Do we fund or do they fund
they would get a yes/no or a full answer on the spot

for the accounting

A. was it approved, by whom
B. Is this the final price
C. paid by when

For the tech/software guys
1. if there is a problem come with a high level Problem
2. Come with a solution
3. does your current solution violate any other parameters we already have (software limits, speed limits ect) if so, how badly
4. How much will the solution cost
5. how fast will the solution be ready to go
6. Does this need a full head on meeting

if they did this I could answer simple questions and they could move forward.
I enforced this. and went from a super busy CEO to one who had control of hte information flowing to me, to only the essential information. cutting down on the INFO clutter 1000%

we would schedule regular meeting to discuss in depth stuff. but if people came to me while i was walking around, or at lunch, i said, give it to me in that format or the answer was a no.

by training people how to bring you information in a strict criteria based interaction you create a filter that trains people

For someone who asked me recently how to cut down on the amount of junky poorly written emails, I suggested this as a start

Emailing me? Fill this form.
1. is this your opinion?
2. Is this time sensitive and critical?
3. Is this a major change to what we already agreed upon, if so , see above question 1 and 2.
4.Do i really need to apply the things you just wrote me, as an off the top of your head thought, and trash all the carefully planed out road maps we have already agreed upon? or can I just ignore your random bits of mental flotsam?



This is about building criteria based filters
The model for building criteria based interaction filters is actually pretty simple really
you boil it down to what criteria do I need to make a on the spot decision,
Then you lay it out in a priority list.
Then you communicate it, and the importance for following it, to the people who keep dropping random stuff in you lap, and you give a reward for bringing information to you in the right format. Like giving a fast yes/no.

also, increase the pain for someone who brings it to you in the wrong format.

It will train the people you interact with, very very quickly.


Z
 
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DeletedUser2

Guest
What's in it for me?

learn to answer this one question, and your are on your way to becoming great at pitching.

its what every ceo, customer, angel investor, boss, girlfriend./boyfriend, ever asks. its the fundamental question in EVERY persons mind.

learn solve that question for them. and your already rich.

:)
Z
 
Last edited by a moderator:

AndrewNC

Limitless
Read Millionaire Fastlane
I've Read UNSCRIPTED
Speedway Pass
Nov 14, 2011
2,486
10,388
2,556
Boulder, Colorado
Do you create specific rules to keep everyone accountable and maintain the quality of the group?
I am part of a mastermind/accountability group of 4 people that was formed 11 months ago. In October, we all moved in and entrepreneur house together in Scottsdale, AZ. Life changing event

Yes, you form accountability rules. Every Sunday night, we met on Skype (and now we go out for dinner since we are all in the same city). If you missed or were late to a meeting, you faced a punishment. If you make a habit of it, you are out of the group.

Every week, each member sets their goals for each week. If you do not meet your goals that week, you face a pre-determined punishment (donating $XXX.xx to an anti-charity, clean the apartment for week straight, etc.). The punishments have to hurt to the point where everyone pushes themselves.

If you don't push yourself, you are out.

There are different kinds of masterminds. This model works for us. Aside from that main group, I have a Skype chat with everyone involved in publishing (my current business). I have a Skype chat of people I met through my Crowdfunding research for my book. If I have a publishing or crowdfunding question, I ask it in the chat, despite going days or weeks without interaction.

Hope that helps.
 
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DeletedUser2

Guest
I have a question, can you lay down the pros and cons of buying property vs being the lender for property?

Could you as well talk specifically on the liability side of buying vs lending and why you chose to stop buying and start lending.

Buying property
Pro, Long term appreciation, Value add by improving the property, increasing cashflow over time, can get leverage to buy multiple properties, or use little cash to buy. better ROI via value added activities.

cons, Management. until you have enough cashflow to pay someone else, its usually you who is doing it. Most people dont have the developed skill set with management, so it typically leaves a bad taste in peoples mouths, ( you hear all the BS bellyaching about how hard it is to deal with tenets ect...) do it long enough tho, and you will develop the skill set or go broke. :)

Lending.
Pros, more passive, nice place to park excess cash, decent returns if done right, less management, less hassel unless they don't pay, then only minor hassle. MUCH more liquid (if you needed cash tomorrow, and had to sell your house your stuck until it sells, where as I can sell 1 loan or multiple loans in about 3 days, regardless of the economy) , very cheap to outsource the management, Can make almost as much as a rehabber, with no working on the house :) , a default can either damage your principal position, or it can double or triple your profit.
Cons, less leverage, takes more cash, takes a higher level of understanding the rules/laws around lending, debt collections, and how to handle default. maybe slower than buying and fixing, no appreciation, (what you lend is what you get back, plus fees and int rate)

short and sweet, hope that helps
Z
 

snowbank

Platinum Contributor
Speedway Pass
Aug 10, 2007
1,381
3,113
880
Austin, TX
left my parents' house because they have pounded my head with ideas of becoming a doctor, getting a 3 figure salary

a $100 doctor! i'd want to leave too

your not ready for mentorship. I would blow you outta the water. and it would be a waste of my time

this is a big lesson i've learned. i took on someone in the past who wanted to do calls about nothing and just wanted handholding/cuddling to do the work. Instead of working on things that would have made them a lot of money, they spent their time debating whether or not what i suggested would work, and when they could tell i thought i was wasting my time would always send me lots of "im the hardest worker ever", "this will be the best decision you've ever made" messages— month or two later they were out, having done nothing, and wasted a lot of my time. i'm too much of a softie. it should have ended right away.

"hire slow, fire fast"

jumping into mentee or mentor relationship unless both parties have the time, and are on the same exact page are the biggest time waste ever. a mentee who attempts to be a mentee too early and says they're up for it, actually hurts themselves more than helping themselves unless they actually are ready. they burn connections, and they don't really understand what those are worth at all.
 
D

DeletedUser2

Guest
Another Tidbit.

While cleaning out my folder of random processes and Biz plans, I ran across a couple I wrote a few years ago. I know some people have a hard time writing biz plans but I can crank out a good first draft in about 2 hrs. I will be posting some That I did as 1st edits, and maybe later the final versions.

I wrote this one in sitting (about 2 hrs)

I know most fastlane concepts are Anti Biz plan, but I have found them to be invaluable for a couple reasons.
1. it forces me to think through what I am doing and want to do.
2. it highlights what I have not thought through yet.
3. it allows me to solicit feedback in a few minuets by giving the plan to someone and then letting them ask me questions I had not thought up yet.
4. its like exercise, it forces me into the discipline of actually thinking through the whole process and the whole business, giving me basic insights i might have missed if i was in to much of a hurry.

The point is, for me these biz plans, help me organize my thoughts enough to make me more efficient when I am executing the business.

and in some cases, they have helped me raise money. (alot of money) by showing someone that I have thought through the process.

I will post some of the biz plans I have written for the next few posts, as I find them in my store of random files. as I am cleaning and organizing them, I will put them here.

That is if its of any help to anyone. for fastlaners who shun Biz plans, this may not help at all. as a fast execution guy myself, I would not spend more than a day or so on a biz plan, because the more time on the bplan, the less time on execution.

I will also edit these to remove the "players" or management as well.

Feel free to use the plan as you like, provided I don't see them in some ebook someplace.


So, with that brief explanation, here is a Business plan I found today.
(this was the first draft, about 2 hrs to write. the finished one with proforma I doubt I will post, because I still use that to run that biz)

Business Plan
Doing It the HARD Way
A hard money lending company
A development stage company



Executive Summary

Our company was formed around targeted niche opportunities in local real estate markets, specifically the emerging market of foreclosures, rehabs and real estate investment from a lender perspective. This is a hard money lending company primarily focused on lending to real estate investors on properties at below market prices. Our company focuses on getting the real estate investor the money he needs to purchase and rehab the houses. Charging higher interest rates, with points and lower-than-average loan to values, we are able to reduce risk, create income streams, and liquidity to a market with high demand and high returns.

Objectives

• Create a constant stream of repeat customers who consistently borrow
• Create cash flow through monthly payments and yield spread
• Reduce risk by using a strict criteria, i.e. making loans at 65% of value
• Provide a source of loans that private investors can purchase with these characteristics
• To periodically sell to the secondary market to recapitalize our line of credit when necessary
• To create a workflow that automates the entire process, keeping tight controls on the money and lending criteria
• Create a recapitalization process for quick turn around of defaults
• Create yields in excess of 30% per yr



Overview of investment strategy

Our goal is to create multiple loans to real estate investors. The focus is chiefly investors who deal in rehab, resale, rental and foreclosure bailout of single family residences. A small portion of the investment loans we make will cover commercial real estate, or new home building. This can be done by:

• Creating strict lending guidelines that develop very consistent cash flows from lending activities
• Reducing risk by good loan to value guidelines
• Reduce risk by creating loans that may be sold to the secondary market at any time
• Keep costs low by outsourcing non-core operations to other companies including appraisal, servicing, and collections


Keys to success

The top keys to success of this venture are
:

• The right managers and key personal
• Knowing the market or being able to determine the market quickly
• Deep real estate knowledge
• Good default management
• Good relations with investor/borrowers
• Effective servicing tools
• Good underwriting
• Quality deal flow
• Multiple exits including secondary market sales



Company Summary

The company has two primary executives, xxxxxx and xxxxxx. A Virtual Office is used to keep costs low, and provides for a fully digital environment. This allows information to flow quickly and response to loans to be just as quick. Virtual Assistants and a Virtual CFO provide quality reports to investors, and automated workflow. With this program, we are able to provide additional services to other hard money lenders, giving them the leverage of an automated workflow and back end services (including placing loans with other service’s, and secondary market sales.)

Industry

Lending takes many forms for the owner occupied properties. However with the rise of foreclosures will come the inevitable rise of additional real estate investors. Real estate is typically a capital intensive venture with few real estate investors able to really borrow from the banks. Most banks have an upper limit on how many loans they will give a borrower as well as how much they will loan. There is a considerable opportunity to supply the residential and commercial real estate investor with financing to purchase residential real estate. The industry is typically fractured and a very cottage industry. This allows our company to step in and consistently provide services.

The types of loans we will be making:

• Hard money non-owner occupied residential loans
o The largest segment that we will focus on comprising 90% of the loans we expect to make

• Commercial loans
o Commercial property comprising about 5% of the loans we will make

• 2nd loans for bridge or foreclosure loans
o Quickly placed 2nds for the benefit of keeping the house from foreclosure. Highest return, higher risk, and comprising 5% of the loans we make
Market

The first year, we will be making loans largely in two states: Texas and Utah. After the first year we will expand to a few other markets with our focus on states based on

• States that have acceptably short foreclosure laws
• States that have acceptable rates on usury laws
• States that the principals feel that they have enough market knowledge to determine the validity of property valuations
• States that have experienced investors with whom we have a personal relationship who and represent a good risk


Sourcing strategy


Our principals have a deep knowledge and experience in real estate investing. We also currently have a number of investors to whom we deem to be an acceptable risk to make loans. These investors are experienced, have systems in place, and have criteria of buying that match our own criteria for lending.
We will also be developing these sources:

• Web based marketing-- (limited) form based website that will allow user to upload information directly into our database
• Mortgage brokers-- there are a number of brokers that have been unable to get a loan approved via the normal channels or just have to short a window. We expect to see deal flow from this source
• Hard money brokers-- there are a number of HM brokers that already have more deal flow than some of the their lenders can fund. Subsequently they are looking for more lenders.
• REI Groups-- there are a number of REI groups, (real estate investors) where we may look for the investors. We believe that we will have more investors looking for cash than we may provide.

Outsourcing


In order to keep our costs low, with out a lot of extra bulk in our operation we will be outsourcing a number of our operations including:

• Due Diligence
o We will be using BPO (Broker Price Options) in some cases. These range in the 100-150 per unit costs.
o Full Appraisals. These are done by professionals, used by the banks as well. We will use appraisers that are familiar with rehabs.
• Loan Doc preparation
o This is typically done by the title company but we will have a number of specific documents that we will send to the title company
• Servicing and Collections.
o We will be using an outsourced servicing company that will cost approximately $9.00 per month, per loan with a $25.00 boarding fee.
o We will have an in house “relationship manager” who will deal with the investors directly, if and when communication stops. We will hand the file over to a collection company that is familiar with our approach to collections and business.
o Foreclosures are done by outside attorneys
• Virtual Assistants
o We have a number of Virtual Assistants and Virtual Underwriters who can handle the calls, take the applications through the process of Due Diligence, and provide the recommendations. With a digital network and a paperless office, we can create many automated non-local workflow processes, reducing our overhead costs
• Virtual CFO
o Bookkeeping and CFO duties are also outsourced. Reports will be generated for the investors, and automated through custom software that combines servicing, collection and investment info into a comprehensive report.
Software

In order to expedite the whole process, we are developing software that will
• Accept information from multiple sources and standardize it
• Accept preliminary investor information and qualify the data for a possible loan
• Price the loan if outside the “box”
• Create the paperwork and send the instructions to accounting and to the title company
• Create a “coordination time sheet” based on the timeline for the loan to occur
• Create an “investment analysis” for matching to criteria
• Follow and control workflow process front to back
• Create “summary page” to be sent with original documents to loan boarding process for loan servicer
• Create “tape” for electronic boarding to servicer
• Create tickler to “relationship manager” for future calls and put on a “to call list and time frames”
• Create drill down capability for the managers to look from a top down perspective on portfolio, down to loan level information
• Make coffee

We are expecting this software development to take 3-6 months total, and cost in the range of $10,000-$15,000. With the experienced team we have on board, we expect this project to only take a small portion of the managers’ time.

Competition


The hard money lending space is very fractured. Typically, hard money lenders are a cottage industry and there are few “nationwide” lenders. Larger lenders are typically focused on either larger transaction dollars per loan than local lenders. Many have 250-500k lending minimums. Due to the complexity of underwriting “investment deals” there are few standards to the industry.

The Secondary Market

The secondary market is a large “unofficial” market place whereby buyers and sellers of various debt instruments go to complete transactions. It is a large, invisible market that almost any kind of debt imaginable is sellable. Typically a well written hard money loan can be sold in 1-3 weeks for at or near par. In some cases, if the paper is written with prepayment penalties, or structured correctly it can even be sold for above par. Our management team has over 4 years experience selling and purchasing debt in the secondary market. Experience has produced a number of contacts that can facilitate sales through this channel. Investors seeking higher than average returns, with lower risk through lower LTV, often turn to hard money loans for their portfolio. As a result there is often a high demand for hard money loans in the secondary market.

There are a number of buyers in the secondary market for hard money loans. Most prefer bulk sales of notes as opposed to single sale or one-of-a-kind transactions. Professional loan servicing also enhances the purchase price and attractiveness of the loan. Other features that enhance the note sale are credit score, job length, and collateral. The secondary market is a huge liquid market, which can purchase portfolios of mobile home notes, quickly, adding a large dimension of liquidity should cash be needed.


Exit strategy

One of the keys that our company has in place is familiarity with the secondary market and its advantages of multiple sales via this pipeline. To provide liquidity for our investors or to increase the volume of turns that are possible in a year, we may turn to secondary market sales. As investors rehab a property, the property usually increases in value, and increases in possibility of sale. This turns into payoffs of the loan, which are then re-loaned out to new projects. If the real estate investor is not willing to pay off the loan, or is unable to, then we will foreclose on the property. At the LTV that these loans are made, it increases the chance that a full payoff will occur at the foreclosure sale. If we accept the property, our management team has experience in disposing of the property in a number of ways including direct sale, sale via owner finance, in which we carry the paper, then resell the paper, or refinance through a more traditional source, thus returning liquidity to the lending process.

The Players
xxxxx
 
D

DeletedUser2

Guest
Masterminds, and small like minded groups.

a true fast track to growing a business is a mastermind. How to find one or in some cases creating one, is a great skill.

using Skype is great, but here is a model I crafted when I needed something more specific,

here is a video I did to lay out a HOW to use online tools, like skype, and mindmeister, to create a kick butt mastermind.

MInd Mapping Video

this was from 2009.

if you would like more of this, I have more videos I can post later.
Z

PS> I made this video as part this site. Mike had approached me for some help. what we ended up doing was epic.

http://www.mindmappingmasters.com/ I dont belive you can buy it anymore.
Z
 
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tincho1492

Bronze Contributor
Speedway Pass
Aug 7, 2011
597
445
196
Uruguay
How To Find People Talking About Your Niche

Cool a$$ tip I just learned for finding people ACTIVELY talking about your niche/product/whatev:

1.) Google a word or subject. Like “wantrepreneur”.
2.) Under “More” in Google search bar, select “Discussions”.
3.) Under “search tools” select “past 24 hours”.

BAM. List of everyone talking about wantrepreneurs in last 24 hours.

You can chime into these discussions, see what they’re saying, use their language for your marketing, get ideas. Whatever.

Source: http://www.nevblog.com/cool-a$$-trick-to-find-people-talking-about-your-niche
 

TheUltimateWarrior

Contributor
Speedway Pass
May 17, 2014
32
91
119
Some one pinged me recently and here is my reply, I thought I would share it since I had a blast writing it.
Enjoy


Background a 17 yr old asked if I could mentor him....
here is my response.




so, your in high school. great. you want some real quick advice? dont got to collage. that's just my experienced opinion. Go start a business instead. You will learn more, faster.

your young yet, so to be honest, I usually wait until someone is in their mid 20's to begin mentoring them.

why?

because at your age, you dont even know what you dont know. and I have tried mentoring younger guys, but really, they are so busy trying to tell me how the world works, they they dont seem to have time to listen to what I have done, and what I know.

So, I let them talk, and several years later they apologize and ask again.

what you need at your age is a coach. someone who can kick your a$$ a little bit, and can help you focus. not really a mentor.

a coach can say, you want to do biz? go do this and this and this. let me know how it goes.

mentoring is a whole nother level.
the people I mentor are people who
1. are ready for a mentor,
2. have a burning desire to succeed, (and will probably succeed even with out my help)
3. are in the industry or sector that I am already in.
4. have a symbiotic relationship, with what ever I am doing at the time, adding value to me and my time. (example, if im buying apartments, then the people I mentor are usually in real estate, if im selling shit online, then they are online focused, if i am investing in companies then they have the resources to do so as well, or know others who can)


now, good on you for contacting me. most people are just to chicken shit to reach out to someone they want to meet with. dont know why. but there ya have it.


so what I'm going to do for you is give you some advice. then, you can come back to me and let me know what advice you took, and more importantly what advice you didn't take, and why.

if there is a synergy, well, maybe we can chat from time to time. but to be honest, I get alot of people pinging me asking for the short cut.

so here is the short cuts. funny part is, few people actually believe it, or use it. :)


short cut.

Skip collage. go start a business. any business. fail at it. start another.

if you want to learn, (and you need to on a damm near daily basis) look up classes, or weekend workshops for what ever skill or info you are looking for

learn to be discerning about people who you learn from. find them. track them down, ask high quality questions and then act on it.

DO IT. what ever needs to be done, dont think about it, dont worry forever about it. just do it. regardless what others say. failure is the best lesson, and 1 good failure is worth 10,000 opinions from other people. f*ck em. they are not you, so get over what ever they say. they just dont know.

Take action. every day, towards your goals. get out of the chair get off the couch. get it done.

if you have an xbox, a ps3 or if you do pc games. Kill it for the next few years. seriously give that shit away. and read instead.

Discover your why. why the hell do you want to work that hard to make money? its 2-10x harder than a job. why work so hard? if you dont have a good why. your f*cked. find it. and use it as leverage on yourself to get shit done.

if you need someone to kick your a$$ to get shit done. pay them.
Give 10 checks for 100 bucks each to someone, and then promise to get it done, or they get to cash the check. believe me, that has worked for years.

Do it. get shit done.

dont be a pussy. stop being afraid. quit dicking around. what the hell are you afraid of? GO. DO IT.

Do things that scare the shit out of yourself. do massive things. make big plans and then push past them.

you will learn on the way. you dont need to know everything right now. you just need to find someone who needs something, and go get it for them.

you are seriously not too good to make coffee, fetch things, or do shit work. that's part of the price you pay of not having money get over yourself.

Help people for free. help those that are in a position to pay you well, and do it for free. it will come back to you in ways you never would have imagined. seriously.

leap, and the net will appear. sometimes the net will look alot like the ground. that's ok, its there to break your fall. :)

you will fail, you will suck, and it will take a while for that shit to stop happening on a regular basis. TRUST THAT THIS IS TRUE and life will be easier for you. (the upside is, at some point you stop sucking, and start really shining! )

ignore your friends. they will go out and get jobs, get nicer cars. go out partying, and shit like that. the parties they do now, will be epic for them later, when all they have is the memory of the parties, and the mortgages they pay. while you will be able to party for the rest of your life, with no mortgage, if you just learn to not suck :)
they say it takes 10,000 hrs to really master something. focus on that, and f*cking master something. and no, its not call of duty or the latest assassins creed.

learn to network with the best and brightest people in the world, and you will have all the resources you ever need only a phone call away.

Hire people smarter than you, and fire yourself as fast as possible

make your "list" of must have skills then focus on getting them. take a class, take a weekend seminar, watch youtube vids on the topic, look up open source education, and learn stuff. Learn how to learn. you will never be behind if you do that.

ok, good luck, and have at it. when you get out of school ping me again, see where your at, and we may chat then.

Z

I'm 18 years old, and after completing my freshman year, I have quit college. The above post was incredibly inspirational. Leaving is something I have been thinking about for months, but until this post I was not 100% certain. I was raised by my parents that a college degree is one of the most important steps to take, however I am thankful that I will not waste another three years of my life chasing down a single piece of paper. Life is too short. Instead, I will chase down a lot of paper ($$).

What skills do I want need to acquire (and how will I go about achieving this)?
1. Copywriting + marketing (following the 30 day copywriting challenge)
2. Weight training (gym... daily - physical activity leads to mental clarity)
3. Social media (interviewing 100 experts)

Most importantly, what are my potential income streams?
1. Starting a business in social media management
2. Starting a website that will turn into a business (credit to @IceCreamKid... interviewing 100 experts)
3. Buying items on eBay and reselling them for a higher price.
4. Buying tickets and reselling them for a higher price.
5. Paid job as a freelance writer for local publications.

Eventually the goal is to start cutting out 3-5, and focus primarily on 1 & 2.

I'm not writing this because I want you to mentor me or to brag. I'm hoping that at least one person reading this is inspired enough - as I was by this thread - to get off their a$$ and start working. It's never too early... it's never too late. Now is the right time.

Thank you @zen******* for your contributions to this forum and to my life. I only recently found this forum, but I have a tremendous drive to spread love in this world. I'm hoping quitting college will allow me to do this.
 
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TedM

Gold Contributor
FASTLANE INSIDER
Read Millionaire Fastlane
Speedway Pass
May 21, 2013
910
1,250
389
Israel
Anyone who is looking to build a business with licensing products, or bringing new products to market...

Here is a source for ENDLESS amazing products...

Your local industrial design college.

They have so many fantastic ideas, that were projects....that the student/designers never really thought of making into a business - of selling.

Go in, review their old projects, talk to the lecturers...dig in some....offer the school a good % for the IP. And start working.

I'm focused on another project right now, and I have a couple of my own things I want to do after that [i.e., i haven't done this yet] ....but, having worked for a bit with a lecturer at the local design school in my city...I'm sure this is viable.
 

Nadia

Silver Contributor
Speedway Pass
Jan 23, 2014
289
805
287
London, United Kingdom
I've jumped in and out of this thread and literally taken pics of Zen's posts on my phone, printed them out and highlighted the stuff relevant to me in the next 3 years. People keep asking people for direct mentorship not realising this FREE WISDOM IS mentorship.

Thank you! :D
 

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