Wayne’s World Blog

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Is there Anything to be Thankful for on Thanksgiving?

I was watching a series on TV that depicted how Columbus was able to lineout funding from the Queen of Spain and set sail on a vision to find a shortcut to the Asia. Little did he know he would be about a half a world short of his destination!

I was shocked how Europe, had eradicated the natural resources (mostly forests) for buildings, fuel and especially the construction of castles. Since the forests were almost gone, the ground was eroded which led to poorer yields in crops and eventually brought them to the brink of starvation throughout the known world. This also brought on unemployment as well as many soldiers being no longer needed due to lack of wars at that time.

When Columbus discovered America (Bahamas) October 12, 1492 he was greeted by people that he’d never seen before as well as endless forests, food, resources and yes, gold from the tribes. Once he returned to Spain he reported to the Queen the vast riches that were available in this new land. It wasn’t just about gold.

The letter he sent to the Queen was copied and passed throughout the land. The next landing that followed was 17-ships with over 1200 men aboard. They also used an animal that had never been seen on that side of the continent; that was the Horse! With the use of the horse and superior weapons, it only took 40-years to plunder and eradicate the people! They also were chopping down thousands of acres of forest and shipping it back to Spain.

Let us step forward 128-years…

He Destroyed his Wife’s Entire Retirement out of Stupidity and Ignorance!

I had a client that was 78-years old and his wife was 63-years old.  Not being in the best of health and much older, he feared his wife would have to work the rest of her life once he was gone!  His other goal was making sure to protect principle of any investment so it could be passed on to their heirs.

They owned a home that was free and clear.  While restructuring their finances so creditors could not attach their assets, I also made sure they waited the required 2-years so they could qualify for the two-year $500,000 capital gain exclusion (250,000 if you are single).  The IRS requires that you must live in the home at least two of the last 5-years and it must be your ‘primary place of residence.’  This means that when they sold their home, as long as the net capital gain is $500,000 or less, there are no federal taxes owed.

They sold their home for around $500,000 which meant all that money was totally tax free!  The original plan was they were going to take around $200,000 and purchase a smaller home or condo so she would have a place to live with no debt, keep $100,000 in reserve and invest $200,000 with my firm.

Since I have bought and sold tens of millions of dollars of real estate over the last 23-years, I would have put them as part owner into a 2.5-million dollar piece of real estate generating $500,000 to $700,000 in annual revenues.  This means his wife would receive $50,000 to $70,000 (from the $200,000 investment) per year in revenue and have it secured by a multimillion dollar piece of real estate.  The real estate would be appreciating at 3% to 5% per year as well and being transferrable to their heirs!  And yes, real estate can quickly make you very wealthy if you know how to do it! Just ask Donald Trump!

But…you won’t believe how and what he decided to invest their money…?

Wait for it…!  Wait for it…!  CLICK HEAR for the “Rest of the Story!”

The Flying Carpet

Another one of my real estate projects a few years back was a project called Purple Sage in Austin Texas.  We named the project after the street it was located.  This was an array of 17-duplexes on this street that had been repossessed and boarded up for several years by the bank.  The bank was having a “Blue Light” special so I picked up 7 of the largest duplexes for $23,000 apiece; the dirt was worth that!  Four of these properties were two-story 3-bedroom 2-bath, 1200-sq ft (per side) with a garage!  This is rare for any duplex.

What also made this a great deal was whatever we did not purchase, the bank was going to have crews do the rehab, and between the two of us we were bringing this entire neighborhood back to life! So I sent a contractor friend of mine down from Reno to begin the rehab on the project which was extensive.

One of our first duplexes completed with brand new everything was a smaller single story 2-bedroom 1-bath unit.  Which was immediately was rented because of demand.  Since my company had just under 50-rental doors already located in Austin, I had already hired my own corporate manager to handle our properties; she and her husband were very good at what they did since they had lived in Austin for many years.  She would handle all the background checks, leasing and evictions while her husband handled all the repairs and maintenance before, during and after a tenant moved in or out.  This kept our costs low and the money coming into our bank account unlike if you hire a property management company; that is another story!

A month after we had leased to our new tenant, I get a call at my corporate office in Reno from my manager. She says, “I hope you are sitting down; I have news!”  Isn’t it interesting when someone is about to drop a ‘bomb’ on you, they tell you to sit down.  She goes on to say, “You’re not going to believe this…!”  THE REST OF THE STORY

Hidden Laws of Money Leads to Financial Success

They say get a good education, make sure you are top in your class, graduate high school, go to college, get a degree or two with top honors, get a good job and you will be successful! Is that true? In today’s world, not so much.

During all the years we invested in school, what were you taught about money and finances?

“If like me, absolutely nothing!”

Even if you went to college majoring in business, you have only learned a basic financial foundation, but not what it takes to begin and succeed in business. I know because I have discussed business and finance with Master degree and PHDs in business. Before you take the advice or instruction of anyone teaching a business or financial class, make sure he or she is “in business!” Always make sure the person(s) instructing you is someone you would want to emulate.

Unfortunately, most people are living breathing financial disasters in the making! Buy a home and finance it for 30 to 40-years! Buy two cars with a down payment or trade-in and finance those loans from 60-months to 96-months at $300 to $600 per month. Be up to your neck in credit card debt and don’t forget to pay the highest tax bracket possible in state, federal and FICA (or Self Employment) taxes. READ FULL ARTICLE STRING HERE

“I Hate My Boss!”

He never pays me enough and the only time I get recognition is when I screw things up.  I have to work overtime almost every day with no breaks and when I want time off for a few days or begging to schedule my vacation, the answer is always NO!

He schedules me five, six and sometimes seven days a week where my family is disappointed because I sometimes can’t keep the promises I have made to them. He has inundated me with so much responsibility that I cannot even get a good night’s sleep.  This has required me investing into Starbucks at the rate of $20.00 a day; I wish I could buy stock if they were a public company.  “I think my hands are starting to shake!”  “I think I need a hug!”  “I’M GOING TO QUIT!”

“OH YEAH!  I FORGOT!  I’M THE BOSS!”… CONTINUED

The Greatest Tragedy High Schools and Colleges Pass on to our Children is Financial Ignorance!

You will find that most millionaires train-up their children to become millionaires, not the schools.  This education ‘must’ begin at an early age and continue through their young and formable years.  This way when children become adults, they will not be devastated by life nor intimidated by money, finances and knowing the value of retirement; they have been prepared and trained.  Then after graduation, they will not be crushed attempting to swim in a sea of estate and financial ignorance.  They must: PLEASE READ ON

Three Prong Model to Entrepreneurship

Prong #1 Rewriting the Rules of Business

a) You must first be open to change. Law #7, Growth is Only Caused by Change but—Not All Change Leads to Growth (40 Unbreakable Laws of Money)   My first questions is, “change to what?”  You cannot think the same way as others.  The “Mindset” must be open to doing something different FIRST!

b) STOP paying for… GREAT TEACHING INSIDE

Be willing to Create Your Own Market to Sell Your Property

As an investor, one of my projects was a home in Orlando, Florida that needed extensive rehab repairs bringing the property back into “like new” condition.  It was a great looking home with a beautiful screened-in pool area on a large corner lot in a nice neighborhood.

During construction, several neighbors came by commenting how I would never get the price ($360,000) I was asking because homes had not sold even close to that amount (about $200,000) for a long time.  When doing my research… TRADE CRAFT

“What’s the #1 mistake’ small businesses make when it comes to finances and money?”

You will hear the standard answer almost every-time: Being undercapitalized (not starting out with enough funds)! If that were true, most fortune 500-companies would have never gotten out of the garage like Apple, Microsoft, or even Edison himself.

The number one mistake is getting into a business without the proper knowledge and experience to run that business. For example, I continually warn people about getting into the ‘Restaurant Business.’ Keep your cookie, salsa or soup recipe for your family and do not venture into a business you know nothing about and has the highest failure rate in the US! “Wealth and business success has very little to do with money and finances; it is about ‘applied knowledge’ and your mindset!” You can have all the money in the world but, if you do not follow and understand this simple Law, money and success will always elude you.

If it is your dream to own your own business as I did, then find a business you love and have a passion for, learn and study everything you can about that business and then start part-time. You do not need to jeopardize your fulltime income. Once your part-time income ‘consistently’ matches or exceeds your fulltime income, then and only then, fire your boss as I did 30-years ago. But that is just the beginning…

Is It Still a Man’s World?

I was watching a study where women still are not making what a man makes.  In fact, Louisiana is the worst state in the country where 68% of the women still are not paid on an equal basis (62% of them are black).  They went on to give testimonies where this unequal culture begins during a woman’s childhood. Even though much has improved over the last 100-years, our culture generally trains young girls to take a more passive role when it comes to decision making as well as being left out of the process of effectually solving a problem.

My message ladies, is that starting your own business “Levels the playing field!”  Yes, owning your own business has it challenges as well as rewards but… DON’T GET MAD, READ ON!