Friday 30 October 2015

My journey to the millions

As a young kid, I hated school. I felt lost from having to wake up to go to school which I did not feel a need to go since I didn't understand what joy there is from going to school for 12 years, just so I could graduate to get a job until I'm 65. That thought didn't excite me at all, and it made me hate school. Once I hit high school, I dropped out instantly on the first day and didn't make it back until 2 years from that day. I started at an alternative school, and shortly after, I started buying and selling random items such as bikes, games, gaming systems, etc to make a profit. To boost my money to play around with, I got a job at Mcdonalds. I didn't like the job, but I did like the people I worked with. I had started to finally find meaning in life as I watched my small part time business rack in more profits as I had more money to play with. After about 9 months, I had to quit my job to focus on my small business that was earning more income than the job by twice as much at some periods of time. I slowly started to get bored of this business and was introduced to multi level marketing. I joined instantly and started to learn, and grow as a person. My business did very terrible, I lasted 3 months before I quit but this opportunity was what made me realize is I am meant to be an entrepreneur. I used the time after this to start studying investments such as commodities, and the economy. I worked on learning how to position myself with the profits I made from my small business that I gave up to start to pursue something new, and what I started with was buying gold and silver. I bought the majority silver at $25 an oz, which hurt me since it is currently at $21 today which is 3 years later roughly. For my second investment, I wanted to get in the stock market but I was only 18 and had to be 19 to open an account. I found a trusted person to open an account that I could have control over, and I bought a solar panel company, stock symbol YGE for 3.50 a share and sold it at 5.75 a share three months later. At the time, I had no idea what I was doing, but I got pretty lucky with this trade. I would had held on to this but I transferred the funds into my name as I was finally 19, and my stock broker took over from there. My stock broker has made a few killing stock trades in the past couple years. He focus's on penny stocks, which most are garbage in my opinion, but I believe my first trade was AIX.V and I flipped it from 3.5 to 5.5 cents. Another great trade was DIDG at 5.5 cents, sold at 9.9 cents. That was a nice trade, and still is in my top two trades to date. My next venture was starting my own small junk clean up business. I bought myself a truck and starting using people I know in the construction business as leverage to find work. I was renting a Dump trailer for a monthly fee and made a few decent jobs that were nice profit. This came to an end when I lost my drivers license from having to many tickets as a new driver. I wasn't the brightest kid growing up. I gave up on that business and started to focus again on investments. I found an investment in a small construction business that was offering around 4x my investment to fund them. It was initially going to take about a year to receive my return, it ended up taking a period of two years and the returned amount 3x my investment, since it was not a locked in number. Still a great investment though of course. One thing I also tried was binary options. Short story, I lost all my funding I put in within the first day. After this I continued to look for ways to get rich and make it big. I decided to do day trading, since I loved the stock market already so much. I did make a few good trades, including one that I made a 50% return on in a matter of 4 minutes, but I parked all my money into a pump and dump failure, when I thought it was a great discount to buy. I lost it all. This was a big set back in my investing since my silver was at an all time low at this point and I lost all the money I put in the pump and dump, and was using my other investment income to live off.

I have made many mistakes, and have made a few really good investments. Today, I look back and go what the hell was I thinking. I have been focusing hugely on education and if I new what I knew back when I was 17, I probably would have made it by now. What I am focusing on now is using other peoples money and other peoples time to create income now. My investments now are being aimed for cash flowing assets. I am now focusing my money on cash flowing stocks while I get educated in the real estate market to learn how to make money there. I have made enough mistakes to instantly jump into any more get rich quick schemes, so now I take the time to get educated on the subject before throwing money at it. One investment right now I have is using other peoples money, and other peoples time to create a return of roughly 30% percent minimum (could be as high as 100%) to create money that I can use to purchase some cash flowing assets with. All I want to focus on is growing my monthly cash flow income from investments to $3000-5000 so I can spend my time however and continue growing my investments with that money. I have learned that true wealth is time and freedom. It does not matter what my net worth is from these assets, all that matters is I continue to grow my assets and have the freedom to spend my time however I would like. I am now 21 and the goal is to be rich by the age of 25, with 10,000 cash flow income coming in every month from assets.


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Tuesday 27 October 2015

How to build true wealth

Hey everyone, welcome to another blog from My Journey To The millions! Today's blog, We will be talking about creating wealth. We will be going through cash flowing assets and creating money to build time freedom.  We hope to educate you more financially so you know the other options out there other than getting a job. 

If you want to be truly wealthy, with time and money, your going to need to start building assets. The definition of an asset is something that puts money in your pocket. It does not matter what you choose to use to get to this goal, but I highly suggest you look to create cash flowing assets rather than assets you hope to go up in value. It makes so much more sense to get paid to take the risk while you wait for the appreciation of that asset. One example of an investment I am doing right now is using other peoples money and other peoples time to create a small amount of money that I plan on using to acquire a positive cash flowing stock from its dividend. I have high hopes for this stock, and I will be paid to take on the risk.

You too can do similar investments like this through wholesaling real estate and using the gains from it to buy cash flowing assets of your choice. The rich create money and have their money work for them. If you want to be truly rich, you must create money. You can do this by starting a business, and taking it to the stock market. When you sell a portion of your company, your creating money. Your like a bank, printing money out of thin air. You can do this by adding value to a property, or wholesaling real estate or doing rent to own real estate deals. You must open your mind so you can begin to see how you too can do this. It does not need to be just real estate.

So if you want to be truly rich, the two things you must do are learn to create your own money, and start acquiring cash flowing assets. These are the true secrets to building wealth. Wealth is Time and Freedom. Money gives you the freedom to do whatever you want, and Time is everything. Do not say time is money because it will be pretty sad if all the banks started writing checks for everyone and said your life is now mine, thank you. Time is everything.




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Friday 23 October 2015

good debt vs bad debt

Hey everyone, welcome to another blog from My Journey To The millions! Today's blog, we will be teaching the difference about good debt and bad debt. We hope to educate you more to help you benefit from debt with this knowledge.

If you have never heard of the term good debt, you may be wondering how can debt be good? We are generally taught to stay away from debt, pay off your credit cards, and pay off your mortgage as fast as possible. Its a good strategy for the average person of course, but for those of you who want to take your financial IQ to the next level, and use OPM ( other peoples money) like the 1% do, than your going to need to get educated. First of all, lets get the basics over with. Good debt is something that puts money in your pocket. Bad debt is something that takes money out of your pocket.Lets say you can borrow $1000 at 5% and use it to make 6%, that is good debt that puts positive income in your pocket. This is normally done with real estate. An investor can purchase a $170,000 dollar house, for a mortgage payment of $700 monthly (at 3%), and the seller is willing to do seller financing for the 10 percent down payment, with lets say a payment for $400 a month. Expenses for tax's and insurance cost $250. In total, all expenses are $1,350. If this house rents at $1,700, it cash flows positive income of $350 a month. That's not bad for using 100% other peoples money. This is what an infinite return comes from. These are just practice numbers though, for a real example, you can check a real life example, in the expensive real estate of Canada, here: Cashflowing property example. This is a cash flowing asset. This same example would be considered a liability if the rent was only $1,300 a month causing your income to be negative $50 a month. That would be an example of bad debt. Same with buying a T.V on your visa. That is bad debt, unless your renting it out, and the rent income is higher than your monthly payment for it.

Lets use another example. Lets say you manage to use your credit cards to buy shares of a company, or you take a mortgage from the equity of your house, or whatever the case is. Does that make it good debt or bad debt? If you borrow the money at 4% and the stock pays a dividend at 5%, then this would be good debt. If the stock shares you own do not pay a dividend, it is a liability. It can only become an asset the second you sell it for more than you bought it for, and the cost of borrowing the money. This is similar to gambling. You do not know 100% if it will go up in value. Until you sell it, you still pay the monthly payment for borrowing the money, and still have the expense for holding it. I do not recommend getting into stocks that way though of course. This is what most people in the lower mainland in british columbia, canada are doing with Real estate. They are buying property for the hopes of capital gains, which is crazy for the average person. The educated business person with a good plan I'm sure can do it well and lower their risk. People buying for capital gains, are gamblers for the most part. 

Good debt can also be used to create an asset, such as a business. You will need to be very educated and have a really good strategy and team, to pursue an investor to give you money though. Lets say you have a wonderful business plan of producing this product, which doesn't matter to much what the product is. You have a team that has experience in successful business and they know how to market, increase sales, how to take a company public on the stock exchange, and all that other good stuff you need for a company to succeed. You take your business plan to an investor asking for $250,000 with a return of whatever amount you agree on, you show them your team, they are happy and agree to do financing with you. Awesome, you now have the debt. Now its your turn to make this debt good debt or bad debt. In a few years, your business is doing extremely well, you pay off the debt, and the agreement for borrowing the debt, and now you , and your partners are left with a dividend paying you from the company an agreed upon amount. This is now good debt. This example is very difficult to do, considering most company's fail in there first 5 years. If you are educated though, this is the highest return investment you can build though of course. Another way you can use debt to become a cash flowing asset is by using OPM to invest in oil wells! This is also a high risk investment, which you will need to be highly financially educated to do but it can pay off big as well. 

I am not saying their is anything wrong with that beautiful new car that costs you $500 a month roughly. What I am saying is consider buying an asset with debt first so you can have your asset pay your bad debt. A $500 dollar rental property can pay off your car payments.The best thing is when your car is paid for in a few years, your asset is still bringing income in your pocket, and might even have equity in it you can use to purchase your next investment.



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Tuesday 20 October 2015

Cash flowing Stock option trade example

Hey everyone, welcome to another blog from My Journey To The millions! Today's blog will be an example of a current trade I am placing on a demo account that is cash flowing from a dividend, as well as lasts months example of a cashflowing stock option trade. 

Recently, I started trading with a demo account to gain experience with stock options. So far, my account is up in its first month 5%- .03% for expenses. A total of 4.7%, which is pretty good compared to any mutual fund I know of. The first month, I sold options of $DIS and $GORO which both had options used on the expiration date. As of today, I have put in a bid for $GORO at limit of $3, which last trade was at 2.91 so I will probably get in a bit lower. I have bought put options for 15 cents a share, with a safety net at 2.5. My prediction is this could go up higher. I am a big silver fan and this company produces silver and other metals. I also like the big dividend on this company as well. These are my trades I am doing to start learning to cash flow on the stock market. Remember, cashflow is king. Capital gains is not as important as cashflow. Cash flow allows you to buy your time back. Time is everything, remember that. Capital gains is also taxed higher. I will do an update when the expiration date on november 15th comes to talk about the process I've made on this trade. Ill have one of two outcomes no matter what though. I will win, or i will win, by learning.

Update: The first months cashflow from stock options was made by risking money to sell an option for instant cash. If you do end up having to buy the stock, you can continue renting out these stocks by selling options for monthly cashflow. The second months strategy for cashflow is by buying a high dividend stock and paying for a safety net to reduce risk. Of course the value can go up and down but the cash flow is what is important. Just wanted to provide a bit more information to help others understand how its cashflow.

Update: The trade I used on GORO was terrible. I exercised my option, limited my loss which is good atleast, but it was a big loser. To make up for a bit of the loss, I bought call options of apple at 115 for I believe 5 dollars a share, So I now have the option to buy apple at that price and It is currently in a positive position at the moment. I am going sell put options for SLV to hopefully gain some percentage back. SLV is looking like its getting ready to hit its bottom or break through it perhaps, so I am waiting to decide when to sell the option depending if it breaks its support. A better, cheaper way to had profit on GORO could had been to buy call options which would have lost all of its value, but perhaps could had saved money. I will not be buying one month contracts anymore, 2-3 months will be the minimum I will buy for stock options after this lesson.

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Monday 19 October 2015

Cashflowing property example

Hey everyone, welcome to another blog from My Journey To The millions! Today's blog, we will be going through the expense's and income of a property. The big question is, DOES IT CASHFLOW?

Recently I have found a Duplex property for sale. We will be dicussing if it is an opportunity or not, and helping your mind take a look at some of the numbers.

The first thing we are going to take a look at are the numbers to see if it works

The Sq Ft of these units are 650 ea, with one bedroom one bathroom. 4 units of course are in the duplex.

Appraised value $ 474,000
Initial purchase price $435,000
Intiial down payment $87,000
Traditional invester mortgage $348,000
Mortgage 2.7%
closing cost- legal fees $950
Inspection $500
Property tax transfer $4900
Total cash out $93,350

Rent $3200
Vacancy 1%
Vanancy amount $32
Net Rent $3,168

Strata expense $520
rental expense/ Management $200
Property tax expense $388
Utililities $0
Mortgage payments $1,408 (2.7% 5 yr fixed 30 yr am)
Total $2,516

Cashflow $652
Annual cashflow $7,824

As you can see, the house is $39,000 below the assessed value. Assuming this is number is true, that means your networth instantly goes up that much. The cashflow  would be an estimate as you can only hope you don't lose your tenants but the rent levels would be quick to replace another tenant as they are average for the area.  The building is fairly new, built in 2008. To make the best of this deal, we would need to add value to the property. Overall it looks like a nice property with positive cashflow, but you still need to add in repairs that may be needed in the future, as well as property insurance. Repairs will be good in a way considering you can use a line of credit against the equity of the house, Then the property will also go up in value from the improvements made to the property. Equity is great for a source of money you can use for another investment in the future.

These are my thoughts on a current deal I am looking at. The two ways of income I am looking for to do this deal is a JV partner, or to wholesale this deal. With this deal, you could also whole sale it with sellers financing closer to the appraised value for interest income witch is another good idea for this property. I have
an opportunity to get in at it for 428,000 myself.



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Monday 5 October 2015

Penny stocks opportunity

Hey everyone, welcome to another blog from My Journey To The millions! We will be going through penny stocks and how to learn to profit from them. We have a few different strategy's you can learn to profit if you choose to use this as an extra source of income


Is there opportunity in penny stocks? A lot of people have lost quite a bit of money in this type of investment, but is their still opportunity? Of course. 90% of stock traders are loser, which is a similar statistic as anything else that you can be successful at. Penny stocks have big risk, but have huge reward, so how can you be one of the top 10% that get that huge reward? Education. One way I have made some successful trades is by technical trading. By learning this technique, you can learn when to buy and sell for a quick flip. If you know what your doing, this reduces quite a bit of risk. Another way you can see potential reward in a company is by learning how to read financial statements. If you can do this properly, which is an education I have yet to learn, you can find earning winners and power growth companies and hold on to them for a few months, or year. If you can read the financial's, and know the management is good, you can profit greatly. Another way is learning how to predict trends. You can find up trending stocks that you can hold for a few days, weeks or even months using technical trading skills. You can also use trends to track what industry's will be starting to turn around. For example, right now, silver is in more demand each year from different types of industry use having to do with technology. If the demand keeps going up, than prices will continue going up. I would not suspect 2011 was the last time we will see $50 silver. I can predict, we could hit that level again in 2-3 years. If the economy booms, silver demand goes up. If the economy crashes, its like gold. It becomes an investor safe haven. Price once again, goes up. My favourite thing about where the price of silver topped is its same high as back in the early 80's. That's a double top, so it offers a lot of potential when the dam comes it breaks that high. That is a trend you can use to predict what industry's will go up. Silver prices will bring up all company's mining silver, or perhaps even company's that do some sort of business with silver company's, or own silver mines. To start profiting from penny stocks, I suggest you begin educating yourself on one or more of these strategy's. Don't put all your money at risk at first, you want to be educated before you put it all at risk. Reduce your risk first by learning as much as possible but still take action by perhaps using a small amount or demo account. You can also find a stock broker who is professional at this. Not all stock brokers are going to be a professional at this though! Ask them if they invest in stock themselves or is that nice car they are driving paid by your commission. Ask to speak to other satisfied clients so you can learn what to expect. The more educated you are, the more you know if they are good at what they do when you ask questions. Using a stock broker as leverage to save you time is smart, even if you are educated and know how to choose your stocks yourself. Stock brokers may know of stocks being pumped up for whatever reason. The book rampaging bull is a book that you can learn a bit about pump and dumps. Timothy syke's is where you can learn about technical trading, he has a lot of free youtube video's and you can learn lots of the web about technical trading for free. 



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Thursday 1 October 2015

Steps to success

Hey everyone, welcome to another blog from My Journey To The millions! We will be talking a little bit about some basic steps to helping you accomplish your goals and becoming successful at whatever it is you may choose to be successful at. Enjoy! 

No matter what it is you want to be successful at, you must have a perfect picture painted of where you want to be in life. You must know exactly what you want, and start to write a plan of how you can get to that goal. You may not know all the steps,but you have to start writing a plan of action. You can never give up on your goal, you must always push further to get to where you want to be. The first thing I suggest you do is write your goal on paper. Be very detailed. Put this somewhere in your room where you will see if daily and read it every day. You need to become obsessed with this goal in order to keep your mind motivated and working to accomplish what you would like to accomplish. You must put your plan of action close to this as well. you need to make sure you do everything on your plan of action. Its okay if you change it, not everything will work out how you hope it would. You will run into problems just don't let that stop you. If it was easy, everyone would do it. You must be committed to learning everything in your field that can help you accomplish you goal. You have to be obsessed with it. A good idea would be to have small goals that will slowly help you get closer to your main goal. Set a date for every goal for the time you wish to have it accomplished. A great book you can read is think and grow rich that will help you learn the secrets to success. These are basic first steps you can take to start your journey if your truly serious about wanting to make a change, and create your dreams into reality.

Check out our other blogs everyone on the link below! Hope you enjoyed our steps to success starter blog. We have plenty of other great blogs you can view, for free, any time you want. Feel free to like out facebook page to get access to every blog we post and motivational quotes! Have a good day everyone!

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