Darren Weeks on Creating Passive Income

Darren Weeks - Canadian Rich Dad shares some insight on what it takes to build passive income.

"First of all I’d like to say that I am proud of those who are actually “doing it”... creating multiple streams of passive income, that is. It’s by creating Cashflow that you’ll get out of the rat race and on to the fast track to financial freedom.

Here are 5 simple steps to get you started creating passive income for yourself.

1. Start by creating a Wealth Accumulation Account that would allow you to begin saving cash on a monthly basis. Whether you can afford to put away $100, $500 or even $1000 every month into this WAA, you will quickly see that you’ll have a dedicated amount of money to use for investments that will create passive income.

2. Revisit your goals and put some effort into adding details to your 1 year, 3 year and 5 year plan. You have to know where you’re heading and why you’re doing it. Read the article on “SMART goals” to give you a hand with creating your plan.

3. Start networking with people and when possible with people that are richer than you! Find out where the local investors, business men/women, property owners gather and meet them – I would even suggest starting out volunteering somewhere. Remember this key phrase: Your NET WORTH equals your NETWORK!!

4. The next ACTION step is to spend a bit of money and invite a business owner, property owner or successful investor for lunch or coffee. That’s it…just lunch or coffee. When inviting someone simply explain your situation as I did in the beginning, something like this: “I am an aspiring Business Owner (or Real Estate investor, etc.), who would love to learn from your successes. And I would be honored to buy you lunch when it is convenient for you”.

5. At the lunch or coffee appointment, dress well, have polished shoes and do more listening than talking. I learned some very valuable lessons from every encounter that I will never forget…and one lesson was to always have polished shoes! If it feels right, either at the meeting or through a personal note later, consider asking to work for FREE for that person so you can learn even more. I did, and I kept in contact with one investor who owned 1000 properties by the age of 35, for many years to come and it was a great way to be mentored.

There are many different means and methods to creating passive income but the key is to FIRST GET EDUCATED!!!"

Be sure to check out Darrens blog by clicking his name above or by checking out these links. You can also find a link to his Fan Page on Face Book.

http://www.darrenweeks.com 
Darren Weeks Canadian Rich Dad

Darren Weeks


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No Money Down Real Estate

This week I have a special guest blogger Ken Beaton (Pictured left) who has taken the time to share some insight on a specific deal he put together with zero down of his own money.

First a short bio on Ken Beaton

Ken Beaton, is the father of three beautiful girls and grandfather to two beautiful little girls. "My wife and I operated a seasonal resort for eighteen years and during this time period I also tried my hand as a real estate agent. My business allowed me the opportunity to learn great people skills as well as sales skills."

"After selling my business I decided to become better educated in how to invest in real estate and after taking numerous courses through Whitney/Kiyosaki I was approached to see if I would become one of their mentors. After mentoring for Rich Dad for three years I have started to educate others on my own and through Fast Track To cash Flow with Darren weeks."

"I currently own 116 doors and I am in the process of purchasing 13 more as well as building a 48 unit seniors apartment building. Today my passion is to teach others how they can accomplish what I have managed to do over the past 6 years."

Here is a good storey about no money down on what I refer to as my "Butt Ugly building."

"I had an opportunity to purchase a 21 unit rental property for $650,000 but when I looked at the numbers I decided to pass. This same property was brought to my attention again a couple years later so I decided to throw a low ball offer at it for $400,000 which was accepted. After inspection we decided we didn't want it because of the work required and the tenant issues at the time so I threw another low ball offer of $200,000. The counter offer was $225,000. I borrowed $425,000 at 12% from a private source so that I could pay for the property and do some repairs."

"I was initially going to assign the property and make $150K cash but we ended up holding it and fixing it up. We used another $100,000 from a LOC to do all the repairs and we just refinanced the property approximately one month ago based upon a $875,000 value. In the end we have put approximately $150,000 cash into our account plus we have a cash flowing property ($25K/yr) and another $175,000 equity in the property."

"I did all this without spending 1$ of my own money."

"I am currently working on a similar deal with a smaller profit of approximately $50,000."

Ken also shared with me some information on the tax implications of borrowing money.

"On a side note: you are partly correct in saying that borrowed funds are tax free money. In reality the borrowed funds are tax deferred money and you do pay tax on an annual basis for a small part of the borrowed money. Each year you will repay a portion of the debt (principle payment) and this amount is counted as taxable income."

Check out these sites, and look for Ken Beaton at Darren Weeks - Fast Track to Cashflow events in Canada.

www.arcarealestate.ca
www.realestatefirsttimers.com

I encourage everyone who reads this to add Ken and become a fan of Darren Weeks on facebook to learn more about making passive income in real estate with "No Money Down"

Thanks for taking the time

MB

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Why Most Financial Planning Tools Don't Work - What to do about it and How to Set Goals You Want to Accomplish

For the past fifteen months I have had difficulty achieving goals that I set and finally I know why; goal setting without purpose is a waste of time. David Bach's book Smart Couples Finish Rich talks about the importance of value based goal setting. He instructs the reader to define what they value in life first and foremost; followed by goal setting around those values to bring purpose and motivation to achieve them. Thanks to a wonderful woman who purchased this book for the both of us, I have a fresh perspective and valuable tool to utilize when setting Monthly, Quarterly and Yearly Goals.

After reading through this book I realized something profound, the error I've been making while setting goals over the past year. I never sat down and took the time to define my values in life, instead I set goals based on monetary amounts or material items. Quite often after writing goals down and doing my best to outline the steps necessary to achieving them I would simply forget about them. Why would something like this happen so consistently?

Setting Goals that Matter

Goal setting had become a grueling task I didn't enjoy and almost a waste of time being that I was completely unmotivated to actually achieving them. I frequently tried several methods including:

S pecific
M easurable
A ction Orientated
R ealistic
T ime Bound

I also attempted to use Anthony Robbins goal setting system from an audio book and even some goal setting software but still the secret to caring about my goals enough to accomplish them had eluded me.

The second chapter in Smart Couples Finish Rich Titled "Determine The True Purpose of Money in Your Life" really hit me. This was the key to finally setting meaningful goals that provide the drive I was looking for.

David Bach writes "Stop for a second and really think about it" is there anything more important to you than your values? Where you live, how much you spend, what you focus your time and energy on-all are affected by your values." "This is why I can tell you with total certainty that once you have a clear picture of what you value most in life, you'll be able to create a truly meaningful Purpose-Focused Financial Plan.

Here are the steps David Bach recommends to figuring out what your top 5 specific values are:

"1.First, Relax Write down only what feels right at a gut level. Don't put down a value just because you think it "looks" good. If it doesn't reflect how you feel in your gut, it won't really mean anything to you, and you won't focus or act on it."

"2. Start with the simple question, What's really important to you? When you think about your life and the things that really matter, what value is most important to you? What's the purpose of money in your life?"

"3. Remember to stay focus on values- not goals, not things, not stuff to do or buy. If, say, you worry a lot about money, you might be tempted to list as a value "having a million dollars." But that's not a value' it's a goal. The underlying value in this case would probabaly be security or freedom." (The top two personal values of my own) "The million dollar is just a way to fulfill one of those values. Similarly, many people say they want to travel. But "Travel" is not a value; it's a thing to do. The value that travel promotes might be fun, excitement or personal growth.

"4. As they occur to you, write down values in the Value Circle until you have listed five core values that you can commit to focusing on the next 12 months. You might find out that there are more than five values that you want to focus on. Some of my clients and students have come up with as many as 10 values. There's nothing wrong with that, if you are serious about your commitment. It's just that in my experience most people find it difficult to focus on more than five at a time."




VALUES VS GOALS*
Security ---- Retire with a million dollars
Freedom ---- Pay off mortgage
Happiness ---- Be debt-free
Peace of mind ----Not worry about debt
Fun ---- Travel
Excitement ---- Ski with friends
Power ---- Be the boss
Family ---- Spend more time with kids
Marriage ---- Plan more “date nights”
Friends ---- Annual “guys” or “girls” trip
Making a difference ---- Donate to charity
Spirituality ---- Go to church or temple
Independence ---- Stop working
Growth ---- Go back to school
Creativity ---- Learn to paint
Adventure ---- Take trip to Africa
Fulfillment ---- Stay married
Confidence ---- Exercise
Balance ---- Plan life better
Love ---- Have great marriage
Health ---- Lose weight

*Reference from Smart Couples Finish Rich

I have taken the time to include a PDF copy of the entire chapter so you can read it for yourself and view what the Value Circle looks like.

Determine The True Purpose of Money in Your Life

If you would like to share your comments and experiences in goal setting and what you have found to work for you I encourage you to comment below and please follow this blog.

**(Updated with some insight from Real Estate Investing Guru Darren Weeks Canadian Rich Dad  on goal setting)**

"When it comes to setting and achieving goals, I take it very seriously. Every year, I sit down and set my new goals and review them every month to make sure I’m on the right track. My friend and colleague, Bob Molle, has one of the best ways to explain SMART goal setting and I’d like to share this valuable knowledge with all of you so you can see how I set my personal and professional goals.

First of all, a little background on Bob… His professional mission is distinctive; to inspire and guide teams and individuals to achieve peak performance. Bob is multi-faceted; husband, father, motivational speaker, performance coach, real estate developer, silver medalist at the 1984 Los Angeles Olympic Games, former captain of the Winnipeg Blue Bombers, and an inductee to numerous Sports Halls of Fame. He is passionate in his beliefs that goals create opportunities for individuals to surpass expectations and discover the potential within each and every individual.
Goal Setting Fundamentals

Personal and professional goals are built upon the following foundational pillars:

* Faith
* Fitness
* Family
* Financial
* Friends

Three Goal Questions

1. Function Goals-how do I accomplish set goals?
2. Being Goals-how do I accomplish set goals, with family and/or friends?
3. Will Goals- why am I setting set goals?

S.M.A.R.T. Goal Setting

* Specific-all goals must be clear, concise, and specific
* Measurable-all goals must be measurable, noting growth and development
* Achievable-all goals must be achievable, and attainable...they must be realistic
* Results Oriented-all goals must be focused on commitment to change
* Time Frame-all goals must include a time period to be achieved

Goal Setting Tips

It is important that goals are shared, in confidence, with family and/or friends that will support and assist you on your journey. Goal setting is a process...take the time to self reflect, revise and re-write. Your goals correspond to life; life changes, goals change. Persistence is essential - goal setting will mobilize you to take action and will energize and enlighten you!

Challenge yourself personally and professionally...dare to dream...live your dream! Each time you accomplish a set goal, make and take the time to celebrate your success! Savor your achievements and triumphs!!!"

Darren Weeks

Darren Weeks Blog
Fast Track to Cashflow Canada


Thanks for taking the time.

MB

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Tony Robbins: Why we do what we do, and how we can do it better

The CASHFLOW 101 Game - Learn about passive income while having fun.

Escaping the Rat Race

The point of the game is to get out of the "rat race" by increasing your positive cash flow or "passive income" by purchasing businesses, properties and investments to a point where your passive income exceeds your expenses.

Once you have escaped the rat race you're now on the fast track, here you will multiply your passive income earnings by 100 to calculate your new fast track earnings.

To win the game you have to either buy your dream that you selected at the beginning or achieve your target income goal ie passive income x100 + $50 000 by purchasing cash flow business opportunities.


Who created the game and why?

Robert Kiyosaki - Owner & Creator of the Richdad Company, Cashflow 101 and author of many financial education books.

Robert designed his career on sharing the financial knowledge his "Rich Dad" taught him. Kiyosaki always stresses the importance of self education on the subject of money and has many helpful insights on how to build wealth, read a financial statement, get out of the "rat race" and how to get your money working for you.

Everything about the Richdad company, Robert Kiyosaki's teachings and the CASHFLOW 101 Board game has to do with "passive income" and out of the box thinking.

CASHFLOW 101 is not only incredibly fun but also fundamentally educational as it can be played hundreds of times and will always offer something new to learn each time. I have personally chosen to focus my entire career on creatively building passive income through business, investing and the internet as a result of reading Kiyosaki's books and playing the CASHFLOW game.

The subject of passive income itself requires out of the box thinking to fully understand. CASHFLOW 101 helps make that very easy to do and even gives you ideas on how to aquire it in real life.


Some ideas on creating M.S.P.I.

Multiple Streams of Passive Income

Here are some of the ideas and strategies I have taken a look at as a result of reading "Rich Dad Poor Dad", playing CASHFLOW 101 and taking a Richdad personal coaching program.

Real Estate: There are infinite possibilities and strategies on creating passive income through buying and investing in real estate properties. If your property is yielding a positive cash flow from a renter after expenses you've got passive income! Robert owns several millions of dollars of rental properties that produce P.I. at this point but started out living in a car with his wife Kim. Kiyosaki treats every property like a business not a peice of real estate.

Self Storage Facility: This type of business if properly ran produces a high positive cash flow due to medium expenses and high income when enough units are rented on a monthly basis. If you can put a team together and capitalize your own project leveraging OPM & OPT (other peoples time and money) your ROI (return on investment) could be infinite.

Affiliate Marketing: This is one of the easiest most cost effective ways to setup residual income. Find products or services on the net to market to your database of connections through social media. I will be writing a blog about this with some helpful links by the end of October so be sure to become a follower.

Internet Business: Being in the "information age" and slowly moving into what some call the "participation age" the possibilities for producing passive income are endless. It is entirely possible to create a steady stream of income with little to no money upfront.

Business Ventures: Essentially any business that is hands off and requires no effort or time on your part is passive income as long as it produces positive cash flow. This makes business automation the most important aspect for anyone looking to create a passive income producing business venture. A taxi service, delivery/shipping service, franchise, sales & marketing firm, tax & accounting firm are only a few examples. Focusing on automation through outsourcing and leverage of OPT will enable you to create a hands free business.

This is what the CASHFLOW 101 game is all about, learning to create passive income opportunities, balancing a financial statement and creative thinking to achieve your definition of financial freedom.

Here are some helpful links:


Rich Dad World Power Pack
How to Make Passive Income Blogging
Find cash flowing Arizona properties
Find cash flowing Calgary properties


Thanks for taking the time

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MB