March 09, 2009

New Internet Venture - Make Extra Money

A month or so ago, I offered an opportunity to become involved in a new internet venture; I look foward to working with the group of people who have joined me on this wonderful ride.   This new spin on an old idea will be LIVE by the summer.   Although there is no longer an opportunity to become involved with the venture, you can still register now to receive our Free Gift when we go Live on the Net!
It's free to register, you'll receive a free gift in the early summer, and you'll learn how to barter goods and services to reduce your cash outflow and get stuff you want or need.  If I haven't convinced you to register at, you might do so after seeing what I've received with no cash outlay over the last few weeks only!
  • a couch reupholstered
  • fitness classes for my students
  • large dents on my car repaired
  • driveway resurfacing
  • carpet replacement at my cottage
  • plumbing repairs
Regsiter with today and save thousands tomorrow with this innovative approach to a time-tested concept.  

March 07, 2009

Your New Part-Time Job


During the last few meetings, I was esposing the virtues of a weekly time you could allocate/dedicate to your new part-time job.   This part-time job is about securing your future or attaining your financial goals.   The idea is that you would set aside 2-4 hours per week to dedicate to your financial future.   You spend that time (come hell or high water) at the computer doing 'real estate homework', meeting with a mentor, or reading a Rich Dad book (or checking out the CFF website, or doing whatever you need to do to make your financial future better.    I've picked one night per week from 11:00 pm to 1:30 am because it's the only time I have and it works for my life style:  I know nothing will come in the way of it.  
Over the last few years, when I have employed this strategy, it has worked.   When I have not, (although I still have all the past financial improvement to enjoy), I gain nothing new.   
What's the moral of the story?    Get yourself a new part time job!
One for which you receive no money, just a much more promising financial future.   And one that's for you....only you....and your retirement, or the financing of your dream, or for your family; one that's for whatever you want it to be.   You just have to do it.

Barter - The Recessionary Economy


Has anyone heard about barter exchanges?   I've been using BNL (Barter Network Ltd.) and Itex Canada for sales and purchases for several years, and it's worked really well.   What is a barter exchange?   The simple version of a barter exchange is that it works on the old fashioned idea of trading services or goods.    It's a great system if you're short of cash, or want to produce extra disposable income with little effort to a dedicated market.   The barter exchanges I have used are "Barter Network Limited" and Itex Canada, ( as well as Trade Business Exchange:   There's also some internet websites and  
In effect, you barter (trade) your services or goods in exchange for a credit, which then you can spend with any of the other people in the barter exchange system.   The bonus to this system is that it is cashless (you don't need money), and it is a dedicated market:  people will look to you because you are a barter exchange member.   It's a great idea!  (P.S.   The exchanges charge a small fee to join, then a percentage of sales, but it's worth it.)    Tell them I referred you - you never know I might get a kickback or referral fee, and instead of donuts and juice at the next meeting, we might just have champagne and caviar!  LOL....

The Richest Man In Babylon - Rewire Your Thinking

I  thought I'd get a little historical and philosophical for a moment.  Here are some gems from Clason's 1926 book called The Richest Man in Babylon:
  1. "I decided that if I was to achieve what I desired, time and study would be required."  (p.11)
  2. "I found the road to wealth when I decided that a part of all I earned was mine to keep."  (p. 13)
  3. "Every gold piece you save is a slave to work for you.   Every copper it earns is its child that can also earn for you."  (p.14)
  4. "Each time I was paid I took one from each ten pieces of copper and hid it away.  And strange as it may seem, I was no shorter of funds than before." (p.15)
  5. "A man's wealth is not in the coins he carries in his purse; it is the income he buildeth, the golden stream that continually floweth into his purse and keepeth it always bulging."  (p.32)
  6. "Study carefully before parting with thy treasure...(money) be not misled by thine own romantic desires to make wealth rapidly."  (p.34)
  7. "Be not too confident of thine own wisdom in entrusting thy treasures to the possible pitfalls of investments.   Better by far to consult those experienced in handling money for profit...such advice is freely given for the asking and may readily possess a value equal in gold to the sum thou considerest investing." (p.34)
  8. "I do recommend that every man own the roof that sheltereth him and his." (p.36)
  9. "Provide in advance for the needs of thy growing age and the protection of thy family."  (p.39)
  10. "Preceding accomplishment must be desire.  Thy desires must be strong and definite."  (p.41)

If you get a chance to read this little book written after World War I, you'll be happy you did.  

Wasn't that an amazing group of gems?    They're exactly the same suggestions for attaining wealth offered by today's top financial gurus:
1.   Learning about financial wealth.
2.   Pay yourself first.
3.   Make your money work for you.
4.   Save a little from each paycheque and you won't even miss it.
5.   Think Cash Flow!
6.   Don't go for any of the get rich quick schemes.
7.   Ask for and follow the advice of financially independent people.
8.   Own your own home.
9.   Plan for your retirement.
10. You can do anything you want if you so desire. 
Some of these gems of advice seem a lot easier to do than they really are.  For example, how many of us can say we have adequately provided for our retirement - or for that matter, how many of us actually pay ourselves first? There's always a lot to learn, but better late than never!

January 15, 2009

Making Money Through Generating Additional Income

There are so many ways to make money, it's unbelievable!   As this global economy turns more and more to entreprenuerial rhythms and moves further and further away from the long-term loyal employee/employer relationship, we will need to look at alternative forms of generating income.

Obviously one such way is to ensure our real estate purchases can 'pay us monthly'.   If they do, we have just learned to generate additional income.  In more advanced real estate circles, these are called cashflow purchases.

Another way is to find a real estate property that can generate seasonal cashflow income, such as a recreational property in Muskoka, Collingwood (Blue Mountain), or Wasaga Beach.   These properties can be rented on a seasonal basis and generate some income - at least enough to subsidize their money extraction from your pocket.   All the while, these properties that will NEVER REALLY go down in value (they're not making any waterfront property anymore  - but they are making some new city properties by encroaching into rural land bases!), continue to go up, up, and way up.

A third way is to create a secondary business on the side from your regular day job (notice that I didn't include your day job as a way to generate income, as most of us who have a day job generate only enough income to live paycheck to paycheck.   You can even get your name out there for free these days!  (

A fourth way is to create an internet business that will add passive income to your cash base.

A fifth way to generate income, which is often overlooked, is the reduction of expenses - without having to change your lifestyle and comfort level.   It's incredible once we actually spend one full day going through everything, how much we can save by making simple changes, all of which have little or no impact in our lives. 

Making changes in your life to generate additional income on your road to financial freedom is the way to go!   Do it today!    Take Action!   Generate Wealth!

December 30, 2008

The Benefits of Lease To Own

One of the best ways to get great cash flow and reduce tenant problems on a small home is by using the Lease-to-Own option.

At first, it seems a little scary - so most people are leery of it. But, if you delve a little further, you’ll realize that leasing properties to ‘owners to be’ is a great idea for everyone.

Let’s say you buy a ‘fixer upper’ for $80k. It takes you about $15k to fix it up. You get it reappraised, and now it’s worth $120k - that’s an equity increase of almost $25k for just a little bit of work and creative thinking. You just made yourself instant equity of $25k. But, what do you do now?

Let’s think about the facts. Now you have a property that’s worth $120k, you’ve invested $15k, plus your original 25% of $80 (let’s assume you did this traditionally). Why not re-finance and pull out the equity increase of $25k to purchase another property which in turn will also cashflow.

But, what do you do with the property? It may not sell quickly, or you may want to hold on to the equity in the home. So you decide to rent. Then, the inevitable happens: your tenants don’t pay, they wreck the house, the cat stains the wooden floor with that horrible stench, the kids have a fight and now you have a load of drywall repairs, and they leave garbage in the garage to build up instead of throw out. These are all the concerns most people have that block them from getting into rental investment, right? Haven’t you heard all the people with different versions of the same line: "I don’t want to fix toilets in the middle of the night?" or "I don’t want to deal with tenant problems."

Let’s look at how the Lease-to-Own ideas answers many of these concerns:

• My tenants will call me to fix the toilet in the middle of the night.

With lease to own, they are ‘practising’ owning the home during their lease contract, so the problems are theirs to deal with.

• The Landlord and Tenant Act gives tenants all the chips in the card game.

With lease to own, you and the lessee are partners in a contract, not landlord and tenant, so the same rules do not apply.

• I need cash flow to survive, as I am struggling myself in my own business and cannot afford to add cash when necessary.

You’ll get more cashflow monthly, instead of less, as you’ll be receiving monthly the market value rental amount, PLUS their monthly contribution to their downpayment. You can use the extra cash monthly to throw at another investment (perhaps a capital gains one that is losing a little each month) or to pay for a toy you just bought.

• I’m worried that I can’t recoup the money on equity lost at the end of the lease.

you’ve included in your contract a small reasonable amount of equity buildup (asset appreciation), for example 4%,

• What happens if, at the end of the lease, the lessee has had credit problems or doesn’t qualify to buy the house, even with the down payment accumulation?

Actually, this is not a bad situation at all, except for that fact that you’ve lost the chance to help someone who couldn’t have otherwise, buy their own home. You still have the house, you get to keep the extra accumulated downpayment, and your house is in much better physical shape than it would have been otherwise.

There are many other bonuses to lease-to-own:

  1. Generally speaking, if a lessee realizes that the house will be theirs at the end of the lease, they will likely take a lot better care of it than they would have otherwise.
  2. You get to help someone buy a home. This is a great way to feel good, help someone out, and;
  3. If they fail to qualify to buy the home at the end of the lease, but otherwise things have gone well, you could offer to renew the lease for a further period of time.
  4. You’ll have few, if any problems with property maintenance.
  5. Since the only other expense you’ll be paying (other than your mortgage on it) will be the taxes (you don’t want to fall behind with those), your cash outlay will be low.
  6. There will be virtually no bookkeeping, as you will receive no other bills, like the hydro or water bill.
  7. You can have the lessee deposit directly into your account by direct deposit (so you have nothing else to do) and you can have an automatic debit transfer of the mortgage amount to the mortgage account, and an automatic transfer of the remainder into whatever you want, e.g. purchase dividend producing stocks, your real estate investment down payment account.
  8. You won’t have tenants who leave easily, making you search for new ones yearly.
  9. The lessees may add value to your property by upgrading the home or adding a garage. This will add value to your property and allow you to ‘pull more equity out’ during the lease term. This in turn could allow you to purchase another cashflow property and replicate the process.

You might now be convinced that a Lease-to-own program might be one of the best ways to get great cash flow and reduce tenant problems on a small home. Don’t be afraid because other people are leery of it. More often than not, the one who does well is the one who is not afraid to go beyond their comfort zone. Lease-to-own is the positive cashflow property of the future!