Entretools 2: Internet Business Mastery Podcast

I don't care who you are or what business you are looking to pursue, you absolutely MUST have a web presence. And no, a "web presence" does not mean some cheap, unprofessional web site that you set up with Frontpage 2000. If you truly want to understand how to set up, run, and drive traffic to a top notch web site this podcast is a great starting point.

Sterling and Jay, who moderate the podcast, are the perfect pair to guide you down your path to web domination. Both are inspirational in that they left their old (and successful!) careers behind to pursue their dreams of Internet Business Mastery. Podcast number 1 was launched very shortly after their internet careers started, and as the show has progressed their knowledge of the internet world has grown. Through their witty delivery, they share their experiences and help us avoid making the same mistakes that they did.

Unfortunately, they've chosen to pull many of their old episodes off Itunes and charge customers for access to them (BOOOOOO!). While I was really disappointed to see this, it is a testament to their business savvy. If you are willing to pay for them, I would recommend picking up the old episodes. If you are a cheapskate like me, the last 20 or so episodes are still available for free on their website, www.internet-based-business-mastery.com. And of course, they still regularly release new updates that share the latest technologies and trends to help improve your internet business mastery.

This Podcast is great for one reason, the breadth of topics discussed. Every week they give a quick update on their personal business activities and then move into some topic related to internet entrepreneurship. While their personal goal was creating a web based business, they share a ton of information that is applicable to any business that needs a web presence, whether you're managing real estate or running a restaurant. They teach you how to set up a professional web page, track your statistics, optimize your site for search, and build long term relationships with your customers.

The beauty of a podcast is that you can listen in your spare time. I listen in the car or when I'm working on the computer. They keep me motivated and up to speed with the latest web technology. The best part about this site is that the hosts are a little nerdy (just like me!), so they come across really well. I don't feel like I'm getting lectured by some arrogant Donald Trump wannabe. These guys admit their flaws and errors and use them to educate listeners.

No matter what your entrepreneurial passion, Sterling and Jay will help you enhance your web IQ, which is key to any successful business venture. They've taught me a ton and can do the same for you, so get listening!

Path 16: Slumlord Millionaire: Part 2

Resources on the Topic:

Rich Dad Poor Dad by Robert Kiyosaki
Landlording: A Handymanual for Scrupulous Landlords and ....by Leigh Robinson
Every Landlord's Tax Deduction Guide by Stephen Fishman
SmartMoney.com's "So You Want To Be a Landlord"

For those of you who missed it, make sure you start with the first post on this topic: Slumlord Millionaire: Part 1.

For the rest of you, let's get right into the details of managing your real estate rentals for cash. We are going to move through 3 main topics, tax benefits, managing your rental, and when to sell. Do it all right, and you'll earn the title of Slumlord, which puts you in some pretty great company!

Let's start with taxes because they ARE the primary reason that real estate success is a near guarantee of long term wealth. There are 3 main tax deductions that owning rental properties will open up for you:

1) Mortgage Interest and Real Estate Taxes: Just like a primary residence, you can deduct all interest and taxes on your rental properties.

2) Operating Expenses: Includes utilities, maintenance, condo fees, yard care and any other fees that you spend maintaining your property.

3) Depreciation: This is the true jackpot! Even though real estate tends to appreciate in value, the government allows you to deduct the "estimated" depreciation of your residential building over a 27.5 year period. For example, on a $100,000 property, you can deduct $3,636 per year, which allows you to collect a decent amount of rent without paying any taxes.

Just add all that up. If done right, your total tax deductions on a $100,000 rental could easily top $10,000. Amazing huh? You can quickly see how people who acquire 5-6 rental units never pay a penny in taxes. That's why we call them SLUMLORDS......

Now that you're a tax master, let's move on to managing your rental. For starters, you will need an air tight rental contract. You can start with a standard contract online. If you simply google "rental contract" you will get plenty of results. These can act as starting points, but I strongly advise paying a real estate lawyer to look over the contract, especially if you plan on having multiple units. It is worth the money.........

Next comes finding tenants for your rental. With the explosion of the internet, their are a ton of free sites such as Craigslist to find your tenants. In today's market, this process should be a breeze. People are struggling to get financed for homes, so they are entering the rental market. I don't believe in paying to find tenants. Use all the free resources available to you first, and only then can you move onto the pay sites.

Don't hesitate to be selective. While the fair housing act prevents you from discriminating against tenants, this is YOUR property, so don't just open the doors to anyone. If Homer Simpson or Cosmo Kramer came marching up to my property, I would turn them away in a heartbeat (And then take them out for a beer of course!).

Once the tenants are in, your life should get a lot easier. You will certainly have some maintenance issues to handle, and personally I believe in paying someone else to do the job professionally. Not only does it look good to your tenants, but it will simplify your life and let you focus on finding your next rental.

Finally, we must discuss the sale of your property. When should you sell???

NEVER!

As a real estate mogul, your goal should always be growing your portfolio of properties. If you have too many to manage, hire help. My personal belief is that you should only sell in case of emergency or to help fund a better retirement. Beyond that, those properties should be yours for life!

So now that you know the basics, get out there and start looking for that first property!

Good Luck!

Keys To Success:

Educate Yourself. Managing real estate for a career is complex, but fortunately there are a ton of great resources on the topic. Start with the books above and never stop learning!

Be Frugal. If you can knock out simple jobs on your own, do it. When renovating, look to garage sales and clearance warehouses. You will find a lot of the things you need.

Be Patient! I know this is a theme on every topic, but especially here. Don't over-leverage yourself, and don't rush into the wrong properties.

Sidebar 5: Shameless Site Promotion

Budding entrepreneurs, this post is for you!

Have you gotten a business website, podcast, or blog up and running in the past few years? Do you have something to offer my readers? This is the chance for you! As motivation for my readers to get up and start working, I would like to highlight the sites of some other entrepreneurs.

In the comment section below, answer a few quick questions, then post a link to your site. It's that easy! More viewers for your site and some motivation and informative sites (hopefully!) for my readers.

Here are the questions:

1) When did you launch your site?

2) What is your site about?

3) What is your one biggest tip for new entrepreneurs?

4) What is your biggest mistake since starting?

5) What is your favorite Entretool? (Book/Website/Podcast/Blog/Magazine/etc.)

6) Now just add your site Homepage!

Thanks for reading!

Entretools 1: The Dip

Have you found your path to prosperity yet? If not, look at the list of topics on the right! If you HAVE found your path, then it's time to start refining it and learning more about the fundamentals of becoming a successful entrepreneur. To that end, we have added a new type of posting that we call Entretools, short for entrepreneur tools. These are all the resources that you'll need to perfect your trade, whether it's podcasting, flipping houses, or counting cards.

These tools include:
Books
Websites
Podcasts
Magazines

Enough introduction, let's move on to Entretool number 1, The Dip: A Little Book That Teaches You When to Quit (And When To Stick). At under 100 pages, it is the perfect length for those entrepreneurs afflicted with ADD. The premise is simple, in life we have a limited amount of time and resources. Sometimes quitting one endeavor is the only way to free up enough resources to allow success in another endeavor.

The book's author, Seth Godin, has made a living off of short, concise, and extremely well written books such as Tribes: We Need You To Lead Us, and Purple Cow: Transform Your Business By Being Remarkable. This book is no exception. For once, an author has enough respect for his readers to not waste our time with fillers and fluff. The material is delivered clearly, straight from the start.

If you are anything like me, you tend to start a LOT of projects. Some get finished, and some don't. While The Dip won't discourage this behavior, it will help you make sure you're quitting for the right reasons. Quitting because things are too hard is simply unacceptable and will likely lead to regrets and missed opportunities. But the key is that realizing a project is a dead end and quitting early on can really save time and wasted resources. This book will help you tell the difference between that dead end project and a potential home run in a difficult phase.

In addition, The Dip will help you realize that you've gotten lazy on some projects just because things became too difficult. With a little different perspective, you'll be motivated to restart some of those and fight through the hard times to the pending success ahead.

So get on over to Amazon, pick the book up and make sure that you're using your time and resources wisely!

Path 16: Slumlord Millionaire: Part 1

Resources On The Topic:

Rich Dad Poor Dad by Robert Kiyosaki
Landlording: A Handymanual for Scrupulous Landlords and ....by Leigh Robinson
Every Landlord's Tax Deduction Guide by Stephen Fishman

Donald Trump. Need I say more? If there is anything in this world that can be considered a guarantee, it is that owning rental properties WILL lead to wealth. That is, of course, if it's done properly. This article will run you through the basics of buying and managing properties for income.

Let's start with WHY? Why is it such a guaranteed path to wealth? 4 Reasons:

1. Renters pay your mortgage (And if done right, they pay even more!)
2. Phenomenal tax deductions
3. Historically, real estate values increase with time.
4. Unlike stocks, you can use leverage(borrowed money), to purchase and own real estate.

Robert Kiyosaki does a fantastic job describing the reasons for entering the world of real estate in his best selling book Rich Dad Poor Dad. If you are just getting started down your path to prosperity it is a must read.

Now let's talk about the process. It starts with the pre-planning. Before you even consider buying a property, you need to do 3 things:

1. SAVE for a down payment. All of these "No Money Down" programs are recipes for disaster. I would highly recommend a minimum 25% down payment before you even consider purchasing a place. (Lenders will require 25% down if this is your second property).

2. SAVE in case you are without renters for a while. Notice a theme here? One of my key themes is risk mitigation. You must prepare for having your property vacant for at least 6 months.

3. Get a great realtor. This is a HUGE investment and you do not want to go it alone. Find a great realtor and depend on their experience to find you great properties.

For your first building, my personal preference is a low cost, multi-unit tenement. Your realtor should be able to find you several of these. The beauty of having multiple units is that having 1 or 2 vacant isn't the end of the world. If you go for a more expensive single unit rental, there will be less work involved, but if you struggle to fill the rental for a few months, you can quickly end up in financial trouble. In addition, if you purchase a multi-unit as your first property, you can live in one of the units, which will allow you to keep a closer eye on the ruffians renting and destroying your other units!

In today's market, patience is key. There are a ton of properties on the market, and many that have fallen greatly in price. This IS the time to buy if you are looking for long term properties. Be selective, and trust your instinct. In addition, consider your fix-it up capabilities. If you can't hit a nail to save your life, you may have to pay a little more for a unit that is in great shape.

Once you have found that perfect property, call around a LOT of banks to find financing. A small difference in your interest rate can save you thousands over the life of the loan. Consider both local credit unions and also larger institutions. Depending on the economic climate, one option may be better than the other. Insist on no points or origination fees and ask for the FULL closing cost.

After shopping around for the best lender, it is time for a full and thorough cost analysis to make sure that you can afford the property. Consider your mortgage, insurance, taxes, water, sewage, trash, and maintenance as expenses, and ask your realtor about average rents in the area to get an idea of the income you can expect. In today's market, rents are high and property values are falling so you should not buy a property unless you can have a POSITIVE cash flow every month.

If the numbers work out, go for it! In the next post, we will discuss the keys to successful property management, the tax advantages of renting, and finally, your long term path to prosperity from renting.

Check out the THRILLING conclusion to this post at Slumlord Millionaire: Part 2.

Motivation 8: Others Who Have KISS'd

The old saying is famous in the engineering world: KEEP IT SIMPLE STUPID. And for good reason, simple inventions are easy to design, produce, and sell. I've already discussed the Sham-Wow, Snuggie, and Perfect Pushup, so today's post presents 5 of my favorite lesser-known KISS inventions created by people just like us. If you are looking for inspiration to follow these inventors, I recommend my two favorite books on innovation, Medici Effect, and JUICE.

1) Next Gen Pizza Box. Who needs plates? This eco-friendly design that turns a standard pizza box into 4 plates and a storage container should be standard at every pizza joint in the country soon.












2) Evolve Showerheads. How about a showerhead that automatically shuts down to a trickle once the desired temperature is reached? All that wasted water while you search for the perfect tie is a thing of the past.




















3) Under-Stair Shoe Drawers. Everyone is looking for better ways to utilize the empty space in their home. It doesn't get much more efficient than this. No more shoe closets, let the stairs do the work!











4) Instant Beverage Cooler. How many times have you been frustrated by this. You purchase a case of your favorite beverage, let's say Cherry Coke to keep things politically correct, and you want one instantly but it's still too warm to drink. Problem solved, simply drop this cool little invention in and the drink is ready immediately.













5) Pot in a Pot; Using Sand and Pots To Cool Food. Now if this story doesn't inspire you, then I don't know what will. A simple story about a Nigerian inventor who changed the world for many of his native Africans and other societies lacking electricity. Take two pots, one slightly larger than the other. In between the two, place some sand. The invention works because the water in the sand migrates towards the outer pot, which causes a temperature drop in the inner pot, thereby keeping the food inside fresher for longer. Simple, and yet an amazing life changing invention.











So what is your contribution to society going to be? Start looking around your home, think of small things that irritate you and FIX them.

Good Luck!