I’ve been following technology news lately because of my sudden curiosity in online business opportunities.  Another reason is because I didn’t want to feel left behind in today’s fast pace where it seems there’s a new invention or a development of some sort every month.  But of course, “the real reason” is because I’ve been wanting to follow the reviews of “the gadgets” like the iPad or the new iPhone 4.

It seems Apple is just so good at making products that is so beautifully crafted and designed.  What makes it even more popular is that fact that  their products could  remarkably and surprisingly improve consumers’ experience like no other products.  Of course a little bit of clever marketing in creating the buzz also helps (remember the news about the iPhone4 prototype that was “accidentally” being left behind by an Apple employee?)

At the heart of Apple invention is an oddly, geekly looking billionaire name Steve Jobs.  And what I’d love to share with you today is a story (or three) as told by the man himself back in 2005 at the Stanford where he shared it with the new graduates.  Please take a few minutes of your time to watch the following vdo and perhaps give some time to reflect on the story and how you are living your life.   I can guarantee it’s definitely worth watching.

That’s it for today.  Remeber to have faith moving forward that all the dots will be connected when looking back in the future.  Live life as if there is no tomorrow.  And to stay hungry, and stay foolish.

Have a blast,

Chayot Ing-aram
BBS (Hons) M(Fin)
Property Finder
http://www.wealthpropertygroup.co.nz

PS  If you are interested in online business opportunites, be sure not to miss the most amazing 2 days internet marketing event this weekend 7-8 August, 2010 in Auckland.  Tickets are almost sold out.  For more details please click here.

In my previous blog, I’ve posted a question that requires you to put your creative thinking hat on.  If you have not read it, please click here to read it before proceeding to the answer below.

The candidate who was hired (out of 200 applicants) had no trouble coming up with his answer.
He simply answered: “I would give the car keys to my old friend, and let him take the lady to the hospital. I would stay behind and wait for the bus with the woman of my dreams.”
Never forget to “Think Outside of the Box.”

Happy Investing,

Chayot Ing-aram
BBS (Hons)  MFin
Real Estate Professional
www.wealthpropertygroup.co.nz

It’s been exactly 1 year and 2 weeks that I last blogged.  I’ve done, expereience and learned so much in this period that looking back and reflecting on what I’ve acheived will be another few blogs in itself (more to come).

Anyhow, thanks to Dean Letfus who has inspired me over the weekend to get my blog up and running again.

So for today, I’ve came across the following from a website and found it to be very interesting and so I thought I should share this with someone.

Have a read below and think what you’d be doing before checking out the answer.

Job Interview Question

You are driving along in your car on a wild, stormy night. You pass by a bus stop, and you see three people waiting for the bus:

1. An old lady who looks as if she is about to die.
2. An old friend who once saved your life.
3. The perfect man (or) woman you have been dreaming about.

Which one would you choose to offer a ride to, knowing that there could only be one passenger in your car?

Think before you continue reading. This is a moral/ethical dilemma that was once actually used as part of a job application.

You could pick up the old lady, because she is going to die, and thus you should save her first; or you could take the old friend because he once saved your life, and this would be the perfect chance to pay him back. However, you may never be able to find your perfect dream lover again.

So, what would you do?  Who would you save?  Let me know your thought.

I will post the answer that the candidate, who was hired (out of 200 applicants) had no trouble coming up with his answer, in my next blog.

Happy Investing,

Chayot Ing-aram
BBS(Hons)  MFin
Real Estate Professional
http://www.wealthpropertygroup.co.nz

PS.  2 good events coming up this week that you shouldn’t miss. The Snipr Event with Dean Letfus and world famous internet marketer, Shuan Stenning is being held in Chch, Wellington and Auckland this week will teach you how to create an automated cash flow machine from your computer.  Also Steve Goodey is speaking at the local property investor association in Palmerston North this Wed night at 7.30.  If you are interested, please check out MPIA’s Facebook fan page or click here.

I’ve been very busy doing reno on 2 properties that I’ve recently purchased.

Now I know some of you’d say to me something along the line of, if you are so busy then why don’t you just get someone else to do it for you (aka Other People’s Time).

An honest answer is I’m cheap.

Another honest answer (and one that’s better than the above) would be because I want to learn as much as I could about doing renovations in the first few projects.

I’ve never done it before and my skill as a handyman is very close to being useless. But now that I am learning the in and out of renovations, I’d be a much better judge of what work to be expected from the people I hire in the future. Sure I can just hire professionals to do all the jobs now, but I’d not learn as much as I have by getting my hand dirty (with paint stain of course) .

Unfortunately, there are things in life (many things actually) that you have got to do it to learn it. Having said that, I have read a book titled “Massive Profits in Real Estate by Adding Value & Renovations” written by Ron Hoy Fong and Phil Jones and I highly recommended as a must read for anybody thinking about doing reno, whether a beginner or a pro or want to make sure you get more out of it than you put in.

The reno works are nearly completed (at least the interiors are) and I’m trying to line up the tenants so by next week money’ll start flowing in (hoo ray!)

Chayot

BBS (Hons)

Property Investor & Finder

 

PS Robert Kiyosaki will be in Wellington on Monday 8th June 2009 and if you want to volunteer to be ushers for an event with 1500 players. 9:00 a.m. – 12:00 p.m. let me know. All ushers will have a party and meet Robert 1:30- 2:30 pm before Robert leave to fly out back to the USA. Let me know if you are interested.

 

 

Have you ever wonder why, when it comes to money, we get so emotional? People do crazy things for money. Wall street is always full of controversies, so it seems. property investors are blamed for being greedy and caused “bubble” in the property price.

I like to read. So when I was staying at Quest apartment in Rotorua, I flipped through its magazine and there’s one article which intrigued me and I think it’s very appropriate to share a small part of it with you here. It’s not very short, but read it and the next time you come across a decision that will impact your financial life, this will remind you to make the right decision.

Subject: Riding the waves of IRRATIONAL economics

“Why do people panic when the property market starts soaring and despite higher prices and greater personal financial risk, rush out and buy? Normally you would expect us to buy less when prices rise and more when they fall.

There is a growing movement in economics that is challenging some of the basic assumptions about our supposedly rational behaviour. Called behavoural economics or socio-economics, the asumtpion of rationality is thrown aside.

Take some simple examples:

You wish to buy a ball-point pen but the shop you enter is charging $10.  You know you can get the same pen in the next block for $1. Most people would walk down the block. But if it came to buying a new car and the difference in price was $9, most people wouldn’t walk across the street. The economic decision is the same – a potential saving of $9.

Most investors are also loss averse. A $1000 loss on an investment hurts more than a $1000 gain gives pleasure. For this reason many investors refuse to sell an asset because it crystallises a loss even if it could mean the loss getting larger or they could reinvest the proceeds and make a gain elsewhere.

Another take on our irrationality comes from those who believe in the Elliot Wave theory.  Developed by Ralph Nelson ELliott, the Wave Theory postulates that markets swing in huge cycles and that these cycles are driven by the emotional mood of the population. The mood can be optimisitc or pessimistic and can override our rational judgements. Thus when we are optimistic, we buy shares and houses and the price does not seem to matter much. If anything, the more the price rises, the more attractive the asset. When we are pessimistic, we do not buy even if prices have fallen sharply. Prices stay low until, well, people get sick of being depressed. Then they start to buy and the cycle starts again.

Proponents of this idea, such as US economist Robert Prechter, say these moods only seem to affect asset markets such as shares and property. When it comes to bread and butter issues such as groceries and consumables, we are much more rational. If the price of these everyday products drops, we tend ot buy more.

Why the difference? Apparently the reason is that asset markets are uncertain and difficult to judge rationally. As a result, a herding instinct comes to dominate our rational thinking. It is deemed too dangerous to be out on our own so we do what everyone else is doing.”

Robert Kiyosaki, in one of his books, tells us a lesson that is closely related to this subject. Rich dad told the young Robert that both him and his poor dad are doing the same thing, but from a different mindset. Robert asked what Rich Dad meant by that. Rich dad asked Robert what his parents spend most of their time on, when not at work. Robert told him that his family spent a lot of time going to different groceries stores and supermerkets buying foods and grocery items. His parents said they could save a lot of money this way. Everytime there’s a sales, his poor dad would buy as many of the sales item as they could. Once there’s a special sales on hamburger patties, his dad bought home so many hamburgers and kept them in the freezer that the family could eat them for months. Rich dad chuckles when he heard about the hamburger story. And after a slight pause, he began telling Robert that he also does the same thing when there are “sales”. But with the mindset of the rich, he does not buy groceries from supermarkets at a discounted price to keep them in a freezer like the poor dad. Instead, he buys shares through his broker when the market has crashed, or buy Real Estate when the yields are high, and keep them in his investment portfolios. I hope the stories above will help you with your financial decision.

All the best,

Chayot Ing-aram

PS Congratulations to Tina Chen for your success and thank you for sharing your story with the reader of the latest NZ property Investor Magazine (Cover story: $2.5 million portfolio at age 24).

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Chayot lives at

http://www.wealthpropertygroup.co.nz

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I had a meeting with the rest of the Manawatu Insiders’ Edge Group today.  And there are many exciting news from the group.  It was great to see everyone in the group all fired up.  There are a lot of motivation, drive, and enthusiasm.  The great thing is, these things are contagious.  You hang out with these people and you cannot help but feeling so determined.

 

Unfortunately, it might not always be like that to everyone.  Many times the environment that we are in can hinder our us.  So, what I would like to do today is show you examples of some of the deals that I or someone I know have worked on and hopefully encourage you to go out and look at an even better deal.

 

Deal 1:

 

	As Is
rent	$               8,060
vacancy	$                      -
mngmnt	$                      -
rates	$               1,500
maintenance	$                   500
insurance	$                   500
total exp	$               2,500
EBIT	$               5,560
mortgage int	$               7,875
Net CF	-$              2,315
PP	$          175,000
Gross Yield	4.61%
Net Yield	3.18%
Cash on Cash Return	-5.29%

So far, the numbers do not look too good.  After all, who wants to buy a pre-tax negative cash flow in this market.

 

But here are the twists …

 

1.  The tenant has been living there for 9 years.  He never missed a single week of rental payment.  And in the last couple of years, he only ever rang up the landlord twice!  Both time to report of a small maintenance issue.  Hence, there’s really no need for a hassel of management or any problem with vacancy.

 

2.  Because of the above reason, the rent has not been increased in almost 3 years.  This spells incredible upside by simply adjusting the rent to a market level

 

3.  It is located in a prime location, quiet street that is less than 2 minutes walk to New World, the Warehouse, and a hosts of other local Businesses and 10 minutes walk to the Square, downtown of Palmerston North.

 

4.  And the most important of all, it comes with a one year INTEREST FREE 80% vendor finance.

 

So you get to keep the first year rent to yourself.  Thus you can afford to wait and pick the best time to fix the Interest, right at the bottom of the Interest rate curve for as long as you can, whether that is 5 or 7 years.  And with the way the Interest rate is moving there’s a real possibility that it could go to the low 4%.  That’s got to be good for your cash flow.

In all cases, the numbers’ll actually look more like this

 

	Could Be
rent	$             10,140
vacancy	$                      -
mngmnt	$                      -
rates	$               1,500
maintenance	$                   500
insurance	$                   500
total exp	$               2,500
EBIT	$               7,640
mortgage int	$               5,250
Net CF	$               2,390
PP	$          175,001
Gross Yield	5.79%
Net Yield	4.37%
Cash on Cash Return	5.46%

 

So what appears at first glance to be a negative $2,300 pre-tax cash flow p.a. turns into a positive 2,400 pre-tax cash flow p.a.

 

 

Deal 2:

 

This is the ugliest house I’ve ever seen in my life.  I’ve heard of all the complaints, negativities, criticisms, etc from people that came through the property.  In fact, some of the builders as soon as they saw the place, told me that this is a bull-dozer job.  Even though they have yet to done any checking on the house!

 

But as you probably suspect by now, a great deal is not seen by the naked eyes, but rather through what is in between your ears.

 

Many running back and forth between the local council, builders, project manager, etc and I am able to secure a group of competent people that will turn this nightmare into a real gem by a matter of less than $50,000 and a couple of weeks time

 

And here’s what it’ll look like after completion

 

	Conservative ($100 a week)
rental income	$                                              36,400
vacancy (conservative 6%)	$                                                2,184
rates	$                                                1,677
mngmnt (conservative 10%)	$                                                3,422
maintenance	$                                                1,000
insurance	$                                                1,000
total exp	$                                                9,283
EBIT	$                                              27,117
mortgage int payment	$                                              10,780
Net CF	$                                              16,337
PP (incl Reno)	$                                            245,000
Gross Yield	14.86%
Net Yield	11.07%
Cash on Cash Return	33.34%

 

 

Note that this is a very conservative, and realistic figure.  Because I reckon, there’s a real chance that we could get a better return, but it’s better to be safe than sorry, especially when it comes to a do-up.  And so whatever we can get more than we plan for will be a bonus.

 

In any case, this property will return over $300 a week in pre-tax cash flow positive.  If you itemise all the chattels, you will get even more out of the after-tax cash flow.

 

Now, I only show you two of these deals, not to brag about them, but to show you that these deals are out there.  And that right now is probably the best time, in a very long time, for a real investor to be buying.  So if you are serious about building your wealth, and creating your very own financial security, go out there, buy cash flows, and make your own financial independence.

 

I’ve written in my previous blog about if you want something enough, you’ll find a reason to do it.  However, if you do not want it bad enough, you’ll instead find an excuse not to do it.

 

If your excuse is you don’t have enough money, remember the purchase price of the first deal is only $175K, and it comes with Interest free vendor finance.   If your excuse is the lack of time, then use the service of property finders, for a start log on to the bluepeak website and see what’s out there.  If you cannot get lending, then assembles a great deal and attracts the right people in your team to help you get finance.  The bottom line is, if you cannot profit from this current property market, which is an opportunity of a life time in disguise, then there’s really no one to blame but yourself.

 

Again, go out there and make it happen.  I wish you best of luck with your investment.

 

Regards,

 

Chayot

picked up enthusiasm from the people around me 

 

PS  Principles of property Investing on the 12th Feb and Investors Network Breakfast on the 13th Feb in Palmerston North.  It’s free to attend.  Click here and here to book.  I’d love to see you there.

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Chayot lives at

http://www.wealthpropertygroup.co.nz

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We all want to be successful in life, career, finance, family, or whatever it is that we are in.  Same thing goes to many good things in life, like being wealthy, and or healthy.

But how bad do you want it?  wealth, and health, like success, should be achievable by anyone and everyone, at least in theory. But what they say about theory is that ...

“In theory there is no difference between theory and practice.
But, in practice, there is.”

To talk more about this subject, I will share with you a great blog that I’ve came across as posted by Leisa Watkins.

We’ve all experienced times in our life where we felt that we really wanted something. Perhaps it was a job promotion, or a new house. Maybe it was something that would contribute to our enjoyment in life. Something like learning to paint or playing the guitar.

The question is…

How bad do you want to succeed?

What are you willing to do yourself to make your dreams a reality?

Are you willing to get rid of your excuses?

My Mentor, Robert G. Allen said, “When you really want something you’ll find a way. When you really don’t you’ll find an excuse.”There are all sorts of excuses:

• I don’t have enough time.
• I don’t have enough money. (One I used to use a lot, and one I still fine myself thinking far to often.)
• I just don’t have the right personality to… speak in front of people, to lead people, to sale products, to do that kind of work…etc… you fill in the blank.
• My health isn’t good enough.
• I don’t know enough about this…or that…
• I don’t know how to set-up a website.
• I’m just to tired after working a full day to do much else.

What’s the excuse you typically use?

What is the typical response that you tend to fall-back to time and time again?

Take a hard look at yourself. The decide how you can remedy that problem.

• I don’t have enough money. How could you get the money? Could you partner with someone else? Could you joint venture with someone else? Could you start out smaller, and with less money, that you originally thought? Could you do much of the work yourself and save money?
• I just don’t have the right personality to… speak in front of people, to lead people, to sale products, to do that kind of work…etc… you fill in the blank. Your personality is simply your point of view. Decide to change your view of yourself. Act like you already have the trait that you want and it will come. Get training if you need it.
  
• My health isn’t good enough. I basically have one thing to say to this. People can accomplish a lot more than they think they can. I’ve had plenty of health problems and still accomplished a lot in the same amount of time, than the average healthy person does. I’ve seen people accomplish more in the last three months of their life than the entire ten year before, all because they were dying and they had a definite deadline.
• I don’t know enough about this…or that… So learn. It really is that simple. Read a book, get a Mentor. Attend a class. Become self-taught.
• I don’t know how to set-up a website. Again, learn. It’s a learning curve, but certainly an easy task.
• I’m just to tired after working a full day to do much else. I’m just going to unwind in front of the TV. This is simply a cop-out. Fill your day with meaningful and life changing activities. Sure you can have some days to simply relax, but don’t let this excuse rule your life.
  

Robert Allen also told us that he wanted to propose co-authoring a book with Mark Victor Hansen. Mark had been traveling a lot. So was Robert. They are both extremely busy men.

Robert was having a difficult time arranging an appointment to go over his book idea. Now you have to understand that Robert G. Allen is the type of person that doesn’t let circumstances stop him from accomplishing his goals . So this is what he did…

Robert called Mark’s administrative assistant and found out his travel schedule. Mark was booked for a trip to Canada. So Robert proceeded to find out Mark’s flight number and the seat he would be sitting in. Then he called and made reservations for the same flight and arranged for a seat next to Mark.

He boarded the plane and was able to pitch his book idea to Mark Victor Hansen on their flight to Canada. He then turned around and flew back home. And they went on to write the book. Now that is doing what it takes to make things happen.

So again I ask you:

• How willing are you to make your dreams a reality?
• How bad do you want success?
• Are you going to make your dreams a reality?

Chayot
learning new thing everyday

Shared by a friend on Facebook and and now would like to share it with all of you here

Tips for Better Life

1. Take a 10-30 minutes walk every day. And while you walk, smile.
2. Sit in silence for at least 10 minutes each day.
3. Sleep for 7 hours.
4. Live with the 3 E’s — Energy, Enthusiasm, and Empathy.
5. Play more games.
6. Read more books than you did the previous year.
7. Make time to practice meditation, yoga, and prayer. They provide us with daily fuel for our busy lives.
8. Spend time with people over the age of 70 & under the age of 6.
9. Dream more while you are awake.
10. Eat more foods that grow on trees and plants and eat less food that is manufactured in plants.
11. Drink plenty of water.
12. Try to make at least three people smile each day.
13. Don’t waste your precious energy on gossip.
14. Forget issues of the past. Don’t remind your partner with his/her mistakes of the past. That will ruin your present happiness.
15. Don’t have negative thoughts or things you cannot control. Instead invest your energy in the positive present moment.
16. Realize that life is a school and you are here to learn. Problems are simply part of the curriculum that appear and fade away like algebra class but the lessons you learn will last a lifetime.
17. Eat breakfast like a king, lunch like a prince and dinner like a beggar.
18. Smile and laugh more.
19. Life is too short to waste time hating anyone. Don’t hate others.
20. Don’t take yourself so seriously. No one else does.
21. You don’t have to win every argument. Agree to disagree.
22. Make peace with your past so it won’t spoil the present.
23. Don’t compare your life to others’. You have no idea what their journey is all about. Don’t compare your partner with others.
24. No one is in charge of your happiness except you.
25. Forgive everyone for everything.
26. What other people think of you is none of your Business.
27. However good or bad a situation is, it will change.
28. Your job won’t take care of you when you are sick. Your friends will. Stay in touch.
29. Get rid of anything that isn’t useful, beautiful or joyful.
30. Envy is a waste of time. You already have all you need.
31. The best is yet to come.
32. No matter how you feel, get up, dress up and show up.
33. Do the right thing!
34. Call your family often.
35. Your inner most is always happy. So be happy.
36. Each day give something good to others.
37. Don’t over do. Keep your limits.
38. Share this with someone you care about

Chayot
Taking a time off after a crazy Sunday

I had a chance to meet one of NZ’s property Legends yesterday.  His story is featured in Graeme Fowler’s book the NZ Real Estate Investors’ Secrets:  How 10 New Zealanders Became Millionaires from Reidential property & how YOU can too!

I picked up a few things from him, main ones being; focus, take action, don’t listen to naysayer, and get out of your comfortzone.

He even offered me a tour of his properties, which I quickly accepted.  And it was inspiring to see how much one can accumulate such portfolio in a relatively short period of time by simply sticking to the basics, coupled with common senses and guts.

One of this best investment came from the deal that was initially out of his leauge.  It was just too big for him and he didn’t think he would be able to afford it.   But he gave it a go, and somehow he got it.  It was way above his head at that moment and was far out from his comfort zone.  But in the end he was rewarded handsomely for making the deal happen and it was these big deals that got him to where he is quicker than otherwise.

The place where it all started

I am also in the process of negotiating on a few property deals, and if things progress in a next few days should be going unconditional on 2 of them in the next 2 weeks.  Also hoping to secure another one or two by the end of next month to really take advantage of the momentum, but will see how things go.

Chayot
being careful not to break any rules

I checked my inbox and saw a message from a friend of mine.  And after finished reading it, I think that it’s appropriate to share with you here since it should help some of you with your goal planning for 2009.

 

I woke up this morning to set some new goals for the New Year and I used Anthony Robbin’s to help me set them. Thought it may help you too.

Ok so below are the main headings and all you have to do is sit, think and fill in the answers for your self.

1) What is disturbing you about your current situation in this area (Be honest don’t be kind. You want to create lots of pain in this area because pain moves humans more then pleasure, if it hurts you and saddens you in a positive way this is good, because it shows this is obviously very important to you) Don’t rationalise by saying things like, ‘it’s ok, or it’s not that bad – That’s being kind, GET REAL, FEEL THE PAIN!

2) Now don’t stay in pain, lets go to Pleasure. What do you REALLY want? (BE SPECIFIC! Have a date, when by, how much if money or weight, looks or personality if love etc. Be as specific as possible add emotions that you will feel and write the goal as if you have already achieved it)

3) Why do you want this in your life? REASONS move human’s not just goals, what will change in your life when you achieve these goals

4) What MUST I do to achieve my goal? (Not SHOULD, MUST!!! i.e – I should go to the gym twice a week, I should save $500 per month etc. There is NO power in should. Write I MUST GO GYM…… I MUST SAVE…… have at least between 5-10 points of what you MUST do to achieve these goals and then choose the main important ones that you can and will stick to everyday.

5) What are the beliefs you have held, that have stopped you achieving these goals in the past? (Again BE HONEST and really think about it, most beliefs are sub-conscious so you must sit in silence and really listen to your inner voice, what do you say to yourself when it comes to achieving this goal?) i’e – I don’t have the time, I can’t afford it, she/ he does not exist, exercise is boring, if I become successful people won’t love me etc…..

6) What are the new belief’s I must hold to help me achieve my goal? (It doesn’t matter if you don’t believe your new Belief’s for the moment, just write them down and then repeat them to yourself every morning and every night 10 times until your sub conscious starts to believe it with out you even knowing consciously) Did you know if you repeat anything to yourself a number of times for a length of time you will start to believe it even if its not true, that’s how your belief’s work. Repetition is the mother of all skill.

7) What can you add/ variety to achieving my goal? (Like if you want to get fit but find exercising boring maybe you need to add a friend to train with or add music etc) The more fun you find your goal the more likely you will achieve it.

8) Take action now; right now do something small to start building the habit. (Send an e-mail, go to the fridge and chuck all the fatty food away, crush your cigarette box, cut up your clothes, look at your bank balance etc)

9) Write down what is a small action and a big action you can take right now and then DO IT!

10) TAKE Massive ACTION! Nothing comes in life from taking small action.

By the way RPM stands for Rapid Planning Method (RPM)

Let me know how you get on and BE BOTHERED this is your life, if you can not spend a couple of hours doing this then really how important are your goals to you?!

I really do hope this helps.  Remember, failure to plan is planning to fail.  Best of luck to you in 2009.  Dream big; start with baby-steps, and take Massive actions.

 

 

Chayot

Getting back to Business

 

 

 

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Chayot Lives At

www.wealthpropertygroup.co.nz

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