We all need to have mentors if we have to reach some goals. Mentors are there to guide us along the way. They have achieved success in their endeavors and so they can teach us the do’s and don’ts that we should accomplish in order to mimic their success.
Now that you’ve chosen your business, it’s time to choose your business mentors and your team. If you were planning to climb Mount Everest next year, wouldn’t you want to speak with someone who had survived the journey to the top? You’d be surprised how many people, starting to climb up their own financial mountains, ask the advice of people who are languishing below sea level. It doesn’t occur to these climbers that their advisors have little or no firsthand experience.
Kiyosaki said that the world is full of S- Self Employed quadrant types trying to tell others how to enter the B or I quadrant. Seek out a mentor who “walks the talk”—someone who has already achieved what you would like to achieve. For instance, you would not want someone who achieved his or her success in real estate to necessarily become your mentor for building a business to sell car supplies.
As you begin, you’ll also need a team of business mentors and advisors. You should not risk the ordeals of building or investing in businesses without the expert help of others.
Rich Dad Tip:
“You don’t need to know every answer, but you do need to know who to call for the answer.”
Find a Business Mentor
Amateurs might not have mentors, but professionals do. One of the most important steps you can take upon entering the B- Big Business Owner quadrant is to set aside any discomfort you might have about asking for help. Seek out role models and learn from them.
Fishing for prospects isn’t all that difficult. It’s a matter of swallowing your pride, working up your courage, and approaching people. Business people are busy but they are generally willing to share their success stories. Many talented folks in the B and I quadrants are willing to lend a helping hand. You can find them out through the following avenues:
- Successful business people that you know. They may know someone who has succeeded in the business you have chosen and be willing to introduce you.
- Your local civic and volunteer organizations. Join several organizations and you will meet others who may have experienced success in the very business you are starting.
- Your local newspaper and local TV news station. Start by looking for successful people in your own backyard. Which of them do you admire and would you like to approach?
- Your local chamber of commerce. Your chamber of commerce and other local business organizations sponsor classes, seminars, and social events for you to meet potential mentors.
- The business department of a community college near you. Community colleges often offer mentoring programs in association with local businesses.
Perhaps the easiest way to convince someone to mentor you is the direct approach. Don’t hesitate to call or write. Be polite. State clearly what you want and why you’ve thought of this person. You may be surprised at the response. Chances are your candidate mentor will be flattered by your interest and, like most people, will enjoy talking about what he or she knows best. You might suggest having lunch together. If this pans out, go prepared, and pay the bill. You’re conducting an interview of sorts. Do what the professionals do and write your questions out beforehand.
Once you’ve found a business mentor. . .
You probably won’t get all the information you need after a single meeting. What you want to do is establish an ongoing relationship. You want a business mentor who will teach you everything, then be available for support once you’re on your own. The problem is, what’s in it for the mentor? Why should this person bother to take you under his or her wing? While it may be true that at this time your resources are limited, that doesn’t mean you have nothing to offer.
Rich Dad Tip:
“What are you willing to give in exchange for receiving guidance? Your relationship with your mentor is based on the simple concept of exchange.”
Find out what your mentor needs. Fortunately for you, it’s unlikely to be money, since this person is already financially successful. Feel out your mentor. In exchange for information and training, offer whatever you can in the way of help. The possibilities are endless, and of course depend on the nature of the business and your own field of expertise.
Money is a Handicap
Most people assume that one needs money in order to invest. Robert Kiyosaki and Wayne Palmer know that money can be a handicap because it limits your thinking.
When money is involved, people focus on how much money something is worth. Without money in the equation, the entire focus moves to value. When we focus on value we can create exchanges where all parties come away feeling like they got more than they gave.
The convenience of using money can also stop you from thinking creatively. Training your mind to solve problems without money is a skill that is truly priceless.
Watch this video and be inspire by how one creative young man turned an ordinary red paperclip into a house:
Source:
Turning One Red Paper Clip into A House
I remember a lot of comments from readers and also from people I meet in person who tell me that they are just looking for a place to live and are not really looking for a real estate investment.
My default answer is “Why not treat your first home as an investment?”
In reality, once you buy a property, you become a real estate investor. Buying a home is often considered to be the biggest investment one can make so it’s best to treat it as a real investment — one which will give you reasonable returns if you do decide to turn it into a rental property or if you sell it further down the road.
What are reasonable returns?
Normally, when a person buys a house which he intends to live in, he does not consider how much rent he would earn if he decides to rent the property out, and whether the possible rental income would be more than his monthly amortization. It is not uncommon for a homeowner who moves up the corporate ladder or improves his situation to move to a better home but keep his first home for sentimental reasons.
Thus, if in the future, the homeowner decides to move to another house and converts his first house into a rental property, the rentals are often not enough to cover the monthly amortizations, thereby producing a negative cashflow situation.
Had the homeowner considered his first house as a real investment, he could have dedicated more time to finding a property that would fetch better rental rates which could cover the monthly amortizations, thus giving the owner a nice positive cashflow.
More often than not, factors that may affect market values and appreciation are not given too much attention by a home buyer as the primary goal is just to have a place to live in. When the time comes to sell the property, it is very likely that there is little or no room for significant profits.
At times, the homeowner may even have to sell at a loss. This situation could have been avoided had the home owner considered buying a property that was way below market value*.
*-”Market Value” is the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently, and without compulsion.
Buying a property below market value would be in alignment with what Robert Kiyosaki often says, which is “You should make money when you buy, not when you sell”.
Money is made in the form of equity* at the time the property is bought and the profit is realized when the property is sold. Robert Kiyosaki is the bestselling author of Rich Dad Poor Dad.
*- Equity is the difference between a property’s current appraised value or market value and the loan principal balance
The opportunity is there so don’t waste it
Everyone at one point or another will really have to buy his or her own home so why not make the most out of the opportunity? If done well, one could gain passive income in the form of positive cashflow, or a significant profit, or both. At the very least, the education one can gain from treating his first home as a real estate investment is priceless.
It is virtually risk-free
Since initially the goal of the home buyer is to have a place to live in, he would not really be concerned with holding costs associated with properties that take time to lease or sell. He/she lives in the place anyway so this makes it virtually risk-free in my opinion.
In fact, I apply the same strategy to all of the deals that I have done this year as my last fallback would be to live in the property just in case I am unable to sell or rent it quickly.
The challenge in deciding to live in one’s investment property
If one decides to live in his/her own investment property, chances are one will have the tendency to fall in love with the property and over-improve it. I guess that’s the only risk that one should manage. Falling in love with a property can cloud one’s judgment and introduce costly improvements that one might no longer be able to recover.
If your first home is good investment, it can lead to more investment properties
If one buys his first home as an investment and not just as a place of residence, it can help ensure that more real estate investments would follow or at least it won’t prevent the homebuyer from buying more investment properties. Believe me when I say that buying a home that costs too much and is considered to be a liability can really hinder one’s ability to build enough capital to buy the next investment property. This is based on first-hand experience.
Ready to buy your first home? I wish you successful investing!
Go here to read the rest:
Treat your first home as a real estate investment?
SEARCH ENGINE KEYWORD RESULTS :
Have you realized that NOW is a GREAT time to invest in real estate, but you just don’t have the money to do it? Here are several ways you can generate cash for your next investment to make sure you can cash on the great opportunity that this market is providing.
One big Detroit Area investor, Darrick Scruggs, the owner of My First Michigan Homeand many other companies, said, “Most of your problems will disappear if you become world-class at raising money.”
Most people will read this and think that I am stating the obvious. Many of these same people will say that they don’t have any money. If they had money, they say, THEY would be raking in millions, too.
I’m here to tell you that you NEED money, but nobody said it had to be your own. I know! Many of us have heard that, too. So how do you use “other people’s” money?
Besides using your own cash, have you considered….
1. Make Money as a Middleman: You can wholesale properties until you get enough cash to do bigger, more profitable deals.
2. Borrow from a Lending Institution: Today this is not always so easy, but can be done, still. Use the money for your investments. Don’t get distracted using that borrowed money for other things.
3. Refinance Your Home: You can (a) get more money to invest, or (b) use the reduced monthly payment to make it easier to create a positive monthly cash flow from the property or other investment that you will buy.
4. Use Credit Cards: Obviously, you have to be careful with this since most credit cards charge a high interest rate. However, if you can make a quick $20,000 profit within six (6) months, would you be willing to pay around $4,000 in interest payments? (This figure comes form borrowing $30,000 @ 30% for 6 months. Most people can get better terms on their credit cards than this.)
5. Obtain a Second Mortgage: Tap into your home equity, and use that money for a killer investment.
6. Borrow from Your Retirement (401K, 403b, Roth, SEP, etc.) Account: You can use this as collateral for a loan and use this money for investments.
7. Solicit Other Active Investors: These people are always looking for ways either to have their money work for them harder or make good money without them having to do any work.
8. Use Money from Passive Investors: How many people do you know complain about their 401K shrinking? They have less control over the bigwigs at the companies overseeing mutual funds than they do you. If you know how to make them money and can show them how you are going to make them money, many of these people will feel safer investing with you. Many of these people would be delighted if you could promise them a return of 8% – 10%.
9. Team with Other Investors: Sometimes, there will be a project where you have some expertise but missing another piece of it. Other times, you might have the idea but not the money or vice versa. Find a another person who has your “missing piece.”
10. Friends and Family: This is a possible source, but be careful with this one! Really!!!
11. Borrow from a Hard Money Lender: This is similar to a credit card, but while they are expensive, they often are cheaper than a credit card; however, the repayment terms are usually shorter. This is suggested more for quick turning than it is for rentals. You can use their money to gain quick chunks of money for only a small price compared to your quick profit.
12. Buy on Land Contract: Usually the price will be higher, but you do not have to use as much of your own money. Run the numbers to make sure it works for you, but several investors got started this way.
Use these techniques responsibly. These are great ideas, but if they are used improperly, you can create some tough situations for yourself. Do your due diligence on the investment opportunity. Make sure that you have a backup plan in case your main plan backfires. These are the two (2) most common investing mistakes.
Make sure that you have a plan and that you thoroughly thought out that plan. You do not want to make a habit of using borrowed money just to lose it. We all make mistakes, but make sure you do your due diligence to reduce your chance of making them. Calculate your risk.
No matter your investment, remember this! NEVER “invest” more than you can afford to lose. That’s called GAMBLING on the Hope-n-Pray method. Save this for your fun money. Feel free to ask me more questions about that.
SEARCH ENGINE KEYWORD RESULTS :
- how to raise capital robert kiyosaki
- which of the following is not one of the suggested ways to find money to invest
- robert kiyosaki what are the 10 things to look for when raising capital?
- which of the following is not one of the recommended solution if you are having trouble making payment on your consumer credit
- which of that 1 of the suggested ways to find money to invest
- what are some suggested ways to find money to invest
- suggested ways to use money
- robert kiyosaki raising capital
- robert kiyosaki how to raise capital
- 25) which of the following is not one of the suggested ways to find money to invest?
In my pursuit for further educating myself when it comes to achieving financial freedom, I enrolled myself in a free online coaching in the Rich Dad Poor Dad lessons of Robert Kiyosaki.
In one of the chapters of the e-learning that I’ve been reading, Robert Kiyosaki suggested the Rich Dads Get Rich Strategies in which he used to get out of the rat race and become a business owner and investor.
I would like to share it all to you my readers so we can also use it to achieve financial freedom just like what Robert Kiyosaki did:
STRATEGY 1: Become financially literate.
The number 1 strategy to get rich is to become financially literate. Financial literacy is not always taught in schools. It requires proficiency in several areas: economic history, accounting, taxes, investing and building businesses. These are difficult subjects but don’t let the difficulty scare you.
Becoming financially literate has nothing to do with how far you got in school. It doesn’t matter whether you’re a failure in school, a jeepney driver, a janitor, or an executive of the company. What matters most is that you’re willing to educate yourself.
One of the things that I learned about financial literacy is on cash flow patterns. Based on these cashflow patterns, you would be able to determine if you belong to poor, middle class or rich persons.
Kiyosaki compared people with average financial intelligence vs. people with advanced financial intelligence:
People with average financial intelligence know only:
- Bad debt, which is they try to pay it off.
- Bad losses, which is why they think losing money is bad.
- Bad expenses, which is why they hate paying bills.
- Taxes they pay, which is why they say that taxes are unfair.
- Climbing the corporate ladder instead of owning the ladder.
- Buying shares of a company rather than selling shares of a company they own
- Investing only in mutual funds or picking only blue-chip stocks
People with advanced financial intelligence know the difference between:
- Good debt and bad debt
- Good losses and bad losses
- Good expenses and bad expenses
- Tax payments and tax incentives
- Corporations you work for and corporations you own
- How to build a business, how to fix a business, and how to take a business public
- The advantages and disadvantages of various investment vehicles: paper securities, real estate properties, and businesses
STRATEGY 2: Work to Learn
Most people focus on working for pay that rewards them in the short term; over the long term, this strategy can be disastrous because it doesn’t build up enough assets for a stress-free retirement. You’re not sure if your employer will be there for the next 10 years. What if you were laid off? Or what if the company closed?
If you want to be financially free, you need to seek work for what you’ll learn, not for what you’ll earn. This is one of the main reasons why I left my previous company. With my tasks, I am no longer learning and in that way, I feel rusty. It’s not always the pay that matters. It’s the satisfaction and the amount of learning that you get. The skills you learn when you work for someone else can be invaluable when you begin to work for yourself—and if you want to be financially free, you’ll have to work for yourself.
Kiyosaki said that there are three essential skills that we need to learn from our job while we are working for somebody else. These are Leadership, Management, and Sales & Marketing.
STRATEGY 3: Find Mentors, Build a Team
They say that no man is an island and that two heads are better than one. The same applies when you want to get rich and achieve financial freedom. You need to seek out mentors and advisors who can teach you the valuable skills you’ll need to become a business owner and investor. No one climbs Mount Everest alone, and you shouldn’t try to climb your personal financial mountain without the aid of others. Without support, you’ll never reach the top.
Kiyosaki said that “business is a team sport.” One thing is certain: When you want to get rich, you need to set out to work for yourself. In doing so, you’ll need more than just friends and family—you’ll need a team of professional advisors. According to Kiyosaki, one secret of the rich is their humility. They surround themselves with people who know more than they do. They surround themselves with experts.
STRATEGY 4: Work For Yourself
Kiyosaki said that most people work first for the owners of the companies that employ them, then for the government through taxes, and finally for the banks that own their mortgages. No wonder they have little left at the end of their working days! To escape the rat race, you need to work for yourself.
You should think like Rich Dad. Instead of saying, “but the odds of a start-up succeeding are against me—nine out of ten companies fail within five years,” say to yourself, “one out of every ten businesses succeeds within five years, and mine will be one!”
STRATEGY 5: Create Money
Kiyosaki said that “Money isn’t real. It’s just an idea!” Today, we are now living in the information age. The information age allows some individuals to get ridiculously rich from nothing more than ideas and agreements. There are people who makes a lot of money in the internet either by maintaining a website or by trading stocks and forex online. Today, it’s not at all out of the ordinary for millions to be made instantaneously out of nothing.
How do you create money?
Finding an opportunity that everyone else has missed.
Learning how to raise money through investments and assets.
Working with knowledgeable people to help you reach your financial goals.
STRATEGY 6: Give Back
Kiyosaki believe on charitable giving. Personally, I also believe on the universal law of nature and that’s Karma: “Do unto others what you want others to do unto you.”
Also, we should not forget Newton’s Law that states: “For every action, there’s an equal reaction.” If you’re a greedy Scrooge, people will respond to you in kind. You have to give money to get it back. Remember, give and you shall receive.
The rest is here:
6 Strategies To Get Rich
SEARCH ENGINE KEYWORD RESULTS :
- financial strategies of the rich
- 9 Strategies to Become Rich
- rich dad strategies that work
- rich dad strategy
- robert kiyosaki believe in giving
- robert kiyosaki tax strategies
- saving strategy get rich
- strategy to become rich
