Friday, May 27, 2011
When one say "Laway lang ang puhunan", it means leverage. What do you leverage on? You leverage on OPM, OPT, and OPE. Here's a more detailed discussion:
OPM - means, Other People's Money. A lot of businesses today would have been impossible without OPM. Businesses leverage on OPM all the time. They borrow money to buy capital or build buildings. They get money from investors who become partners in the business. They get the money through selling shares of stocks in the stock market. Using your saliva as your only capital, you can talk and convince investors or lenders to give you money that you can use to start your own business.
OPT - means Other People's Time. You cannot have a business working at it alone. Otherwise, it becomes a job. You need partners, contractors and eventually employees who are willing to work in your business while you work on it. Henry Ford, the inventor of the assembly line and one of the richest men who ever lived really got OPT when he said "I would rather have 10% of a thousand men's efforts than 100% of my own."
OPE - means Other People's Expertise. You can leverage on experts so they will do the job you need to get done. You can leverage on entire company's not just on individuals. Their expertise can be in the form of technology, not necessarily effort or time.
One of my students, Bobet Cabuang utilized all the above in starting his very first business. Bobet started a lending company. He utilized OPM by borrowing the money from his friends and family at 12% per year and then he lends it out at 4% per month. He leveraged on his mom - and his mom worked the business doing the leg work. This is OPT. Lastly, he worked with HR departments of different companies so he can set up salary deduction as the way for his loan to get paid. He leveraged on their expertise or OPE.
The more leverage you utilize, the richer you can become.
If you're broke and have no business, you can leverage on OPM so you will have the capital to start one.
If you don't have any experience, you can seek out people with experience and expertise (OPE).
If you're busy with your current job, can you leverage on OPT?
There are so many opportunities to make money and generate lasting wealth through businesses. Master the art of leverage and you're on your way to owning and growing your own business.
dedicated to your success,
Trace "The Millionaire-Maker" Trajano
P.S. If you're too busy to start a business, investing is the next best thing. If you want to earn 10% on your money, visit BuyFirstDeal.com and look for the Passive Income Program I just created. Even if you have only $300, you can start with the program and you can start earning passive income NOW.
Sunday, April 24, 2011
It's cool that they teach kids about money. A lot of the wrong things we do about money comes from our wrong conditioning when we were kids. Look at your own life. Chances are, if you're having financial struggles, you can trace the reasons why - in the things that happened and things you've learned in your childhood.
Your behavior now about money stems from three things in your childhood:
1. What you've been taught
My parents taught me that there is no opportunity here in the Philippines. "You have to go abroad to make money. Only the politicians and the actors make money in the Philippines" - is what my dad always said to me (not only when I was a child but even up to today). And because of this, this is exactly what I did. I went to the USA to seek greener pastures and worked there for 10 long years. Even after earning a lot of money from real estate investing, it took me a while to leave my job and go back to the Philippines because I was clinging to a deeply embedded belief that there are no opportunities in the Philippines.
But here's the truth: opportunities to make money is everywhere and all you need to do is open your mind to them. Once your mind is opened, you will spot these opportunities everyday and you will never run out of money - wherever you are!
Think about it: if opportunities to make money only exist abroad, how do you explain the Chinese millionaires and billionaires in the Philippines? They immigrated here without even knowing how to speak Tagalog, with only their shirts on their backs and they managed to earn millions, sometimes billions - right here in our poor country, the Philippines. If they can do it, why can't every Filipino?
2. What you've observed and modeled
I observed my dad was "rich" every time he comes back home. He puts on lavish parties for his friends and "barkadas". But two weeks later, the money is all gone and he needed to borrow money for his family - us - to even survive, until he can go back abroad to work. He borrowed money from his mother - my grandmother - we call her "Nanay". He borrowed money from everyone., even the loan sharks.
Little did I know that this behavior which I observed is something that I would also do in my adult life. I observed this from dad and it became embedded in my subconscious mind as something that was normal and expected. So guess what happened to me when I grew up as an adult? Despite earning a lot of money when I was a yuppie (young professional), I became deeply in debt through credit cards. I modeled the behavior of my dad and I struggled tremendously.
If you're in debt up to your eyeballs, Sha Nacino's book "Think Rich Yuppies" will be able to help you. Go to http://ThinkRichYuppies.com to get the book (it's not in National Bookstore). You can also get it cheaper in my "Think Rich Quick" seminar here: http://TRQGold.com.
3. What you've experienced
Let me share with you a very emotional story that happened to me. I love books - even as a young child. I always read. I love reading this children's encyclopedia (I forgot the name now) - 24 volumes in all and I loved the smell of its pages as I browsed through it.
One day, I was so shocked to find out that my mom sold my encyclopedia because we did not have any money for food. I was so disappointed. I cried. I ran out of the house crying. It was difficult for a young child to accept that the thing he valued most was now gone. I was angry at my mom for betraying me - not even telling me of her plans. I was angry at the rich person who bought my encyclopedia and stole them away from me.
As a result of this traumatic experience, I hated the rich. For me, the rich were bad and greedy and they stole things from poor people, even kids. Because of this hatred for the rich, I struggled for money for a very long time. Even today, from time to time, this "shadow" rears it ugly head and I lose money every time I hesitate to take advantage of a financial opportunity because I was afraid it would make me rich (and a bad person who steals from the poor and from kids).
It's Time for a little Introspection
What about you? What are the things you were taught when you were a child that are not helping you to become rich? What are the things you've observed in your parents and the people around you when you were growing up? Are there bad financial habits you've seen from your parents you are modeling today that are causing you to struggle with money? Have you experienced something traumatic that is now causing you to be afraid to become rich? Do you harbor envy and hatred towards the rich? If so, you need to release this envy and hatred because you will never become rich until you get rid of these poisons in your head.
SO here is my plea to you my friend. Teach your kids the right things about money so you will stop the cycle of poverty that has plagued your family. Here's the video about Sesame Street's advocacy for teaching money to kids. Start them young while you can still influence and teach them.
I will go watch Sesame Street when I get the chance because I might learn a thing or two about money :-) and you should too.
dedicated to your success,
P.S. My highly anticipated "Think Rich Quick" seminar is on April 29-30. It will change your life. Here's the link to register: http://TRQGold.com
Saturday, March 26, 2011
Sunday, March 20, 2011
Are you sick and tired of your job but you can’t quit because you can’t afford it? If you want to quit your job soon, you have to have an alternative source of income and I am here to tell you that real estate investing can be that new income source for you.
The “Why” That Makes You Cry
Before I show you how the income you will generate from real estate investing can replace your income, let me ask you a very important question. Why do you want to quit your job? Do not gloss over this question.
Jay Castillo used to work as an IT Manager and although the income was good, management decided to give Jay the jobs of 3 people while not increasing his pay check. The stress level was so high because of the additional work load, so much so that even though Jay is quite young, he developed hypertension. In addition to being away from his young child, his job was literally ‘killing’ him. Jay decided enough is enough and he developed passive income streams from real estate and internet marketing. More than a year ago, Jay quit his job and he never looked back. He is making more money NOW with a lot less stress while having all the time in the world to take care of his son and enjoy life with his wife.
Endangering his health while not seeing his child, is Jay’s “Why that makes one cry” – and are enough motivation for Jay to successfully quit his job.
What about you? What is your “Why that makes you cry?” Reflect on this. Write down the answer. If your “Why” is strong enough, you will figure out the “What” and the “How’s” in quitting your job.
Why Real Estate?
One attendee of my “Think Rich Quick” seminar, Lyn Syluancia, quit her high paying job as a design engineer for a top technology company in the Philippines. When I asked her what made her quit, she calmly told me “I quit my job when my income from real estate in one month became the same as my income from my job in one year.” You can easily do this in real estate because we are dealing with millions and so we literally make hundreds of thousands of pesos every deal or even millions of pesos. For example, one of my students, Kristine Aganon made P1.5 Million on just one deal.
What NOT To Do
Let me first tell you what NOT to do: You should NOT buy real estate and rent it out (and expect it will help you quit your job in 90 days).
Even though you may have read that you should buy real estate for passive income, the last thing you want that will enable you to quit your job in 90 days or less is a tenant. Why is this? Being a landlord will not make you BIG money in 90 days. In fact, if you do it the wrong way, you might even lose money. For example, as a beginner, chances are you do NOT know how to pre-screen tenants. What if you get a “tenant from hell” who will not pay you and even destroy your property? Can you afford to pay the monthly amortization out of your pocket? How much cash reserve do you have? If you are broke and have very little savings, DO NOT BECOME A LANDLORD!!!
If a Rental Property is Wrong, What Should I Do in Real Estate?
You should buy and sell houses for quick cash. A member of my website – BuyFirstDeal.com – RG Gonzales, bought and sold a house and made P100,000 cash in just a few days. He did this while working a full-time job and he was just a beginner. Later on, when you have a lot of cash in the bank and have quit your job, you can acquire some rental properties for cashflow.
So Tell Us Trace: How do I Quit my Job in 90 Days?
Here are the steps to quitting your job in 90 days or less:
- Find out exactly how much money you need to quit your job. Let’s say P30,000 is your monthly expenses. I suggest you can quit your job if you have at least P180,000 in cash or at least the equivalent of 6 months of your expenses.
- Learn before you leap. Read books, attend seminars, seek out mentors and mastermind with like-minded people about real estate investing. Also, decide which part of town you will buy and sell houses in and learn the values of the houses being sold there. Talk to the neighbours and real estate agents.
- Line up your buyers. You can post generic ads like “Nice houses for sale. Tell me what you’re looking for and I will get you your ideal home.” Put your phone number and talk with potential buyers. Pre-screen them and identify the ones who are qualified to buy.
- Look for the right properties that fit your buyers’ needs. Foreclosures can be a good source…or you can check out BuyFirstDeal.com for properties for sale.
- Sell enough properties for your qualified buyers and you can quit your job sooner than you expect. For example, if you need P180,000 cash, you can literally meet that target with just one real estate deal.
dedicated to your success,
P.S. I have invited the Philippines' Youngest Abundance Coach to give an ONLINE seminar with me entitled "How to Quit your Job in 90 Days or less". It's a F.REE online seminar or webinar and you can register by cl.icking this L,INK. There are only 100 slots available so register NOW.