Rich How To

I just wanted to quickly follow up with my last post.  These times aren’t too shabby for getting great deals if you have the time to do it!!  But what about getting around to starting that business you have always talked about? If you buy a new house you won’t have any money to start that new business right?  Ha!  We never fail with great tips here. 

It’s a bird..It’s a plane…No, it’s “Bill HR 3221 and the First Time Home Buyer Tax Credit” to the rescue. 

First time homebuyers are eligible to claim the $7,500 tax credit until July 1, 2009.  The $7,500 is interest free, tax free and doesn’t have to be repaid for 15 years or until you sell your new home.  Talk about an excellent way to leverage some money. 

Following our last post, about FHA loans, you only have to pay %3 down on your new home.  So if you are sensible and buy a $200,000 home you would only need to come up with $6,000. That is $1,500 less than the tax credit you would receive for buying the dang thing!  Buy a house and get $1,500 extra to sit in the bank or better yet start a business on the side. 

In future postings I will show you how to start a very profitable business with far less than $1,500 in only one month’s time.

Until next time,

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Hello everyone! Today I wanted to talk to everyone about the possibility of buying your first home. With this downturn in our economy many people are hesitant to even think about buying a home especially if it is their first home. However, this may be the perfect time for you first time home buyers to act! When I was recently pulling up comps in my hometown, I found homes going for 40% less than they were selling for just 2years ago! With this downturn it is possible for you to fit into a much larger home than you would normally be able to afford! There is a loan called the “FHA loan” and here at How to Rich, we did some research and thought you might find this interesting!

FHA is Back and Better than Ever

Federal Housing Administration (FHA) loans have become an extremely popular choice recently for Americans looking to buy a new home, or refinance an existing home. In fact, according to the FHA, the total volume of FHA loans has reportedly tripled in the last year alone - but why?

Here at How to Rich we were very intrigued. So we did some more research and in recent years, the FHA has made some important policy changes in order to be more competitive. These changes, along with the effects of the subprime collapse and the subsequent credit crunch on the mortgage and financial markets, have combined to make FHA a valuable option for many Americans, especially first-time home buyers, borrowers with less-than-perfect credit, and borrowers with adjustable rate mortgages.

The FHA loans have, in the past, been in a slump, but when Congress passed the Stimulus Act of 2008, which did more than just provide rebate checks. It also temporarily increased FHA loan limits in many regions of the U.S. and with that, FHA loans were back in business.

But what about those other policies that made FHA loans less attractive in the past? Well, the FHA drastically changed its appraisal and fee negotiating policies, making it much more competitive, and much better for both buyers and sellers. The FHA also made other changes that allowed 1) sellers to finance all of the buyer’s costs to close, 2) homeowners to take cash out up to 95% of the home’s value, and 3) homeowners to consolidate a 1st and 2nd loan up to 97% of the home’s value.

Because of these and other features, FHA loans in many cases are actually a little bit cheaper for the borrower. Also, because FHA loans are federally insured, they tend to trade at a higher premium in the secondary market, and consequently, lenders can often charge a lower rate.

Most importantly, FHA loans are not FICO-score driven. borrowers can have a lower score than other products and still qualify for a good rate. FHA loans also require as little as 3% down and, at the time that this article is being written, FHA loans allow down payment assistance programs, which allow the seller to cover the buyer’s down payment and closing costs. This means borrowers, especially first-time buyers, or move-up buyers with limited funds, have a real opportunity to get into a home with little or no cash closing. For sellers, this means you can offer concessions that make marketing your home much more attractive without having to lower the price of your home again.

In many regions of the U.S., FHA loans have not been utilized for years, so a lot of real estate agents and mortgage originators aren’t familiar with this great resource. But, if you or someone you know is thinking about buying or refinancing a home, don’t miss out on this temporary opportunity.

One quick warning. I wanted to personally test out this loan process and they did a dummy run for me just to see what I would qualify for. Not only did I qualify for the amount I wanted, but I actually qualified for nearly $1,000 more than I thought actually possible for me to pay. The FHA loan is extremely generous and it is in YOUR best interest if you do not lie to the mortgage broker you are working with, and more importantly you do not lie to yourself! With the FHA loan you may find yourself over leveraging yourself. Sit down and work out your budget ahead of time. Figure out what you can afford before you start seeing big numbers and seeing that house you can just almost afford!

We also do not recommend buying a house for those who are not in a stable work environment. If your place of business or hopefully your own business is showing signs of a slow down due to this downturn in our economy, then maybe now is not the time to acquire a large amount of debt.

If you want to know more about FHA loans, head over to the contact us page and shoot us an email. We will get you all the information you need! Here at How to Rich, it’s all about bringing you the information you need!

Mike Roberts

How to Rich

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1. Start a business. There is tons of service business with low to zero start up costs. Most people would be surprised how quickly you can get something going. I started my first company with only $125 worth of investments, and was working full time at it in only one month. I helped a friend, who is also a stay at home mom, start an errand running business. She was able to bring in $1,000 a month in only 3 months after the launch of the company. She did all this with a $245 investment and a kid on her hip. I also started a vending machine business for $400. Within the first month I was making $200 a month with only 2 hours of work. The following month I invested in more machines and had a total of $600 worth of investment that I sold for $2,000 by the fourth month. The whole project only took 8 hours worth of work. There is literally thousands of different business you could start. In a few days I will post an article on business ideas and give tips on how you can start your very own business!

2. If you have no money, no desire to start a business and are in need of some fast cash then you can always sell your body parts. Hair, Blood and Sperm! In larger cities, there are clinics that will pay you up to $35 for some of your plasma (blood), which you can donate twice a week. Sales for generous lengths of tresses can net you several hundreds to over a thousand dollars. You can also donate your sperm. Donation rates vary from $1 to $200 per week; (I am not sure why it varies so much? $1 means your ugly I guess?) most donors can expect somewhere around $40 per donation. Between donating your blood and sperm you could be raking in as much as $275 per week!

3. Be a bum. Don’t have a problem with being a burden on society and being lazy? Well you’re in luck because it can pay big! According to a study of Toronto panhandlers conducted by Robit Bose and Stephen Hwang, panhandlers reported an average of $100 a day. Now those who are better at looking pathetic, ones with kids, dogs, want to be veterans and women had better results. A few bums were even found making up to $300 a day! We do not recommend that here at How To Rich, but if you truly can’t find a job and can’t even eat, well then being a bum for a few afternoons sure couldn’t hurt. (Please note; I know there is hard economic times and people can lose their homes, jobs, etc. There is nothing wrong with being poor, but there is something wrong with panhandling as a job.)

4. One way you can make some extra bucks that don’t require any upfront money and you can do it while you watch TV is by taking online surveys. Just type paid surveys into Google and presto’ you have an unlimited source of mind numbing clicking that actually can pay decent wages.

5. How about getting a paycheck just by moving your car around campus? There are over 700,000 contacts for marketing and promotions for a company called Free Car Media. The company matches advertising clients with drivers across the country to promote the company’s products. Drivers are given free samples of the product they are promoting to pass out along the road to interested consumers.

6. Human Guinea Pig. How about participating in a little research study? Compensation for clinical research study volunteers runs the gamut from $20 for answering a few questions on lifestyle habits to a couple of thousand dollars for participating in a longer term study with an in pateint stay. (Don’t worry, I’m sure they pay extra if you turn all green and grow bolts out the side of your kneck!)

Check your local universities to see if they have a med school. National clinical listing services include www.clinicaltrials.gov and www.centerwatch.com

There are a lot of ways to make fast cash, but what people really need to do is to build their financial IQ so they are not in positions that they need cash in a hurry. I have been there my self and it is a sick feeling. You are stressed irritable and can’t sleep. You would probably drown your sorrows in drinks or food but you can’t even afford to do that. It’s miserable. When I was 18 I was dirt poor. I was only making $500 a month and was making less each month than my monthly bills. Every month I would sell something of value. First little things, rc cars, paint ball guns, ski’s then eventually I had to sell my dirt bike, TV, etc. The book that helped me turn the light on in my head was Rich Dad Poor Dad. This book helped me realize where I was at and where I wanted to go. I owe a lot to Robert Kiyosaki and I recommend this book to everyone. It’s time you take control of your financial freedom!

How To Rich will be starting an entire course on how to start your own company. This course will be all inclusive and will teach you how to do everything from; forming the company, hiring employees, insurance, taxes, managing inventory and more! The course will also have several freebies including our very own financial calculator, never before seen anywhere, contact software, purchasing programs, several E-books and more! If you are interested in this course and would like to have the first chance to join then please use the form below to sign up! The course will be launching in a few months and will have a limited number of spots available.

I hope this has given you some ideas on how to get that fast cash you are looking for!

Good Luck,

Mike Roberts

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Can’t say it any better than the big guy himself. here is a interview Warren Buffet just gave to PBS. This interview is Warren’s opinion on the economy.

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Hey gang, Mike Roberts here again.  Today’s, how to rich guide, I am going to talk about starting a business.  In a few short minutes you will have discovered how to unlock your mind and raise your financial IQ.   

How to Rich: If you are interested in making money then you need to do one of four things.  Win the lottery, Inherit a bunch of money, Invest (real-estate, stocks, etc.) or start your own business.  Though inheriting money sounds easier than the latter, it’s unlikely that will happen.  This reminds me of a story I once heard.  One day a reporter came to this wealthy man and asked him how he had made such a large fortune and how he had managed to make it through the great depression.  His reply was, I only had 10cents to my name and so I bought an apple.  I spent all day polishing that apple and then I sold it for 20cents.  The next day I bought two apples and polished them and again doubled my money.  By the end of the month I had made a small fortune of $1.50.  Then the following month my father died and I inherited millions.  So, I guess inheriting money would be a much easier route to go but probably won’t work for most of us.  Anyway, tangent over, let me get back to today’s How to rich guide. 

Really pay attention to these words and let them sink in.  There are four types of people; the Employee, Self-employed, Business Owner and Investor.  Each category has very distinct mindsets and once you learn about these categories you will begin to notice right away what category your friends, coworkers, boss, etc. are in. 

One of my many brothers is very smart.  He can read and write better than I can, most likely is better at math and has some pretty amazing accomplishments, such as a master’s degree just to name one.  Despite all of this he has a limit on his income because he has an Employee mind set.  Now I am not saying that he is poor or that you can’t make money in anyone of these categories but the Employee category and Small Business owner category have by far the most obstacles and you just aren’t going to buy that 100’ yacht that you want.  Though, my brother makes a decent salary, he cannot come up with creative ways to increase his income.  It is fixed and his income is completely dependent on his boss.  He must always keep his boss happy and perform his best to insure slow steady raises.  Also as an employee, he does not have true financial security.  If the economy drops he could lose his position tomorrow.  His boss has the ultimate decision over his financial future.  Now if this sounds like the situation you are in please continue reading. 

The Self-Employed mind set or small business owner is the second tear.  This is the person who is head strong, generally does not like working for someone and has a very specific skill.  Self-Employed people have some more freedoms that an employee doesn’t have because they are their own boss, and typically can make more money.  But the problem with a self employed person is, well, the statistics.  Around 68% of businesses fail in their first year and 90-95% fails in the first five years.  Also, a self employed person, think dentist, fairer, layer, etc., generally is the heart of their business.  They have a specific skill they can provide and if they don’t show up to work they don’t make money.  Now besides these two categories not making as much money or having true financial security they also pay much much more in taxes.  I just watched a clip on You Tube the other day about Warren Buffet.  He was showing the reporter how he pays less in taxes than his receptionist.  His receptionist was paying an average of 31% a year in taxes while Warren only paid near 16%.  Wouldn’t you like to pay half as less in taxes and make twice as much?  Have you noticed yet that the Employee and Self Employed are hindered?  Do you know these people?  Are you one of them?  Now, as you become aware of these people you can open your mind and begin to change your thought patterns.

When I was 19 I had an employee mindset.  I was struggling to pay the bills, buy groceries, put gas in my truck or take my girl friend out on a date.   I eventually got a decent job with full benefits, but as I grew my financial education I eventually wound up quitting my job and made the leap from Employee to Self-Employed.  I thought I had made the leap to Big Business owner mind set or Investor mind set but I hadn’t.  I started a cleaning company. Got a good client base and eventually had 12 employees working for me.  I thought I had made it into the big leagues.  I mean I was only 22 at the time, give me a break!  The thing was, I was paying less in taxes as I did as an employee but my tax rate was still high.  If I wanted to take a day off, I generally paid a huge consequence (I didn’t have anyone trained to replace my specific job role in the company), and I was working more than I ever did before.  I was getting up at 6am and would get home at around 9pm with the occasional midnight or 2am panic cleanings to get a house ready to be showed.  It was a hard business.  I eventually fell into the pit fall that most self employed people run into.  I started to become lazy.  I was so busy working in my company I had no time to work on my company.  I stopped growing my financial IQ and I stopped thinking of creative ways to grow my business.  In the end I wasn’t even as secure as I thought.  I eventually lost a major account as the housing market in the area crashed.  Believe me I am glad this happened.  Often times we can let the day to day stress kill our desire for more, and wear us out, but as hard as it is, you must persevere. 

Growing your financial IQ is the only way that you will make more money.  So you can get out of the rat race and work on your terms doing the things you enjoy.  Plus affording a yacht is just a perk!  The last two mind sets are the Big Business owner and the Investor.  My definition of a Big Business owner is someone who can leave their company for an entire year, and still have the company run smoothly and grow in sales.  The personal way I have achieved this category is through websites.  I have a few various websites out there that I haven’t touched in months, but they have actually increased in size and my monthly revenue from them have slightly increased as well.  There are several ways to achieve this category! 

The last category is the Investor.  The investor has his money work for him!  The Investor generally has real estate (or stocks) going up in value.  He uses a little bit of money to leverage large assets, and can creatively generate income out of thin air.  Sound hard to believe?  Let me give you a quick example.  Let’s say this super creative Investor, not going to name any names, purchased a commercial building.  The down payment drained his bank account but he wanted to buy another commercial building.  The average person might say, well the first one is making you enough money you greedy bastard or say something like “looks like you are going to have to pass the second building up and just save your money and buy something else in the future.”  Right?  WRONG!  What the “I” person does is thinks creatively and creates money out of nothing.  This particular Investor went down to his new commercial building and met with his renters.  During his visit he noticed two things, one, the renters had a pile of stacked up boxes (not enough storage), and two, there was a small to mid-size parking lot behind the building that was not being used by any of his tenets.  So he saw an opportunity.  He kicked off the cars that didn’t belong in the back and went to work building a few storage units.  He got a few bids and used what money he had left to have them built.  After they were finished he let his tenants rent a few of them and the rest he filled up by running an ad in the paper.  Once all of these units were full he had the bank come back through and re-evaluate the properties worth now that the cash flow was even higher.  The bank allowed him to take an additional $50,000 of equity against the property.  He only used $10,000 cash to have the storage units built, so in essence he created 40,000 dollars out of thin air.  (This allowed him to buy the second building he wanted.)

Just picture this for a moment…You have an opportunity to travel the world but you don’t have enough money.  As an employee or Self-Employer you have little to no options, but as a Business Owner and Investor you can create opportunities that generate substantial wages in as little as one month! 

Be creative, raise your financial IQ, read books, subscribe to financial RSS feed and stay up to date, don’t settle for low wages!  You can have the financial freedoms that you desire!  You deserve more, you just have to reach out and get it. 

Starting your own Self-Employed business is a start.  Once you learn the techniques on how to transform a small business into a big business you will have more financial success than you can dream.

If you’re like me then you won’t settle for an average income any longer.  The How to rich blog will be offering a course in the very near future on starting up your own business.  If you are interested please visit our site and click the “Contact Us” button on the left.  We want to help raise your financial IQ so you can be just as free as we are. 

Until I the course is up why not jump start your financial IQ now?  Here is a great book by the second richest man in the world, Warren Buffet.

Monopoly is actually a great tool as well for beginners.  Great basic concepts on how to invest.

Thank you,

Mike Roberts

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How to Rich: Imagine yourself out of the rat race in a year from now! Uncover more secrets of the trade and learn the tricks that billionaire Warren Buffet Used. Buy your copy today and begin your financial journey. How To Rich.

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With all the news of banks going under, companies getting bought out, and the government bailing out huge companies it began to really weigh on me. It made me think of a book I had read over a year ago. Why We Want You to Be Rich, was a book I purchased mainly because two men I respect very much came together and wrote the book (Robert Kiyosaki and Donald Trump). When I read the book it was at the height of the economy and my business was booming. The financial philosophy that the book teaches was somewhat of an afterthought at the time. I was young, eager, and in a booming economy. I didn’t want a book giving me doom and gloom statistics and informing of what is to come. I was more interested in a book that would aid me in growing my financial success immediately. What I didn’t realize at the time as I do now is that financial success is a long journey and seldom comes over night. Without realizing it this book planted a seed in my head one that has long term effects. During future How to Rich articles I will be covering many of the materials that I learned in this very book.

People expect to visit a site or read a book and become millionaires or billionaires, but unfortunately unless you’re going to strike it big winning the lottery this is not the case, and to tell you the truth I am glad. I enjoy working and striving to be even more successful. I would hate to lounge around all day every day. Becoming rich takes time, and the best thing a person can do is to educate themselves. The type of education I am talking about is financial education. Build a base! Read financial books, join real estate clubs, talk about finances with friends or even use this very own How to Rich forum! I hate to sound like an old librarian (not that anything is wrong with that) but KNOWLEDGE IS POWER!

Why We Want You to Be Rich, is a definitely recommended book by the How to Rich guide. This book is not going to teach you how to flip a house build your own business or win the lottery but it will plant deep financial wisdom in your head and raise your financial IQ. I think more Americans need this message. Especially when I see the state our economy is in and the decisions people are making.

Discover the secrets that this amazing book has to offer!

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Hello everyone,

Today’s How to rich guide will talk about saving. This is something that has been bothering me for the last few days. I grew up in a house where we were taught to Save Money! But this theory on finances is absurd. My parents have lived a life where they have socked away money for retirement. Now as they enter retirement I find it funny that they didn’t save enough money. They can’t afford to retire off their savings alone. Before you think I am a heartless SOB please read on. My dad hated investing and I was taught growing up how bad rental houses are. I was taught investing is risky and for the super rich. Yet, as my parents have reached retirement they turn not to their savings account but to the two financial investments they made along the way. The first is a large where house in prime real estate area. They receive a huge monthly income from this building and it alone subsidizes their monthly needs. The second is a large business they left behind that still pays them royalties. So even though my parents were savers it is not saving money that saved them…it is their investments. My parent’s saying was investing is risky, but I have come to realize now more than ever that not investing is what is risky. I do not want to be in my 50’s or 60’s and have to worry about finances. I want financial freedom to live the life I want. So, today’s how to rich guide is on savings. Below are a few more of my thoughts.

Most people think savings is smart. But savers can be losers. I know that this can go against the grain about what most people tell you, “save money, save money, save money!” But the reason savers are losers began back in 1971 when president Nixon took the US off the gold standard and made the US dollar the reserve currency of the world. One of the reasons we have so much economic volatility in our economy, high gas prices, high food prices, stock market booms and busts, house prices going down, all can be attributed back to 1971 plus other changes. How to rich does not subscribe to the idea of being a saver. How to rich subscribes to the idea of being an investor. If you invested in oil 10 years ago you would be a rich person today. The same is true if you invested in gold or real estate 10 years ago. Even with the economic down turn you would still be way ahead of where the saver would be. A person who stock piles money away and plans to retire off of interest rates really doesn’t have a realistic goal. Between the money you make off interest being taxed and having your saved money battle inflation it truly is an unrealistic goal to live off of savings. Why not use financial leverage to be an investor. When a person saves $10,000 they will have $10,000 in the bank. They will receive a low interest rate gain and that’s that. But if you take the investor who has made $10,000 he can take that money and leverage $10,000 to control a $100,000-200,000 dollar home. Now in 10 years who do you think will be ahead? How to rich recomends a great tool by Dolfe De Roose a investing genious!

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How To Rich Preface: Hello, I just wanted you to really pay attention to the post below. This is the product that finally got to me. When my father-in-law bought this game for me I was truly able to understand what I needed to do. This game is amazing. This financial tool is a great way to teach your kids/teenagers about money, fun to play with friends and teaches you how to approach financing. I seriously recommend this game to everyone who is seeking to make a new start and unlock the secrets to financial success. How to Rich Recommendation!

What’s your dream? Freedom of time? Unlimited resources to travel the world? Whatever it may be, CASHFLOW® 101 the Board Game teaches you how to get out of the Rat Race and onto the Fast Track, where your money works for you instead of you working hard for your money.

Use this game to practice real world investing with play money!

Plan your strategy with Opportunity Cards that include Big and Small Deals!

Choose your dream, learn the secrets of the rich, and get on the financial fast track!

CASHFLOW® 101 is an educational board game that teaches accounting, finance, and investing at the same time - and makes learning fun!

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“…It’s become even clearer to me that what Robert talks about and teaches is more important than ever. Financial education is crucial to this country at this point, and Robert’s acumen in this area cannot be disputed.”

- Donald J. Trump

Unlock the how to rich secrets to financial success and take charge of your future. Today could be the day that changes your life. Buy your copy of Rich Dad Poor Dad and get the inside scoop of how Billionaires think!

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