Interesting

High rates of Interest    Investing - partnership with me    Financial planning & Free advice  

Business Opportunities

I typically have a few exciting opportunities to "Partner" with me. In each of these cases I am an active manager/owner of the company. I am either the primary owner or one of 2 or 3 primary owners. These are not "other peoples" projects that I am "peddling." If you are interested,
click on Investing - partnership with me.

I don't have your $ minimum, but I want to be involved. What are my options?

Without suggesting that these are the only options, here are some that some people are happy with. But please note, none of these are with 'me' ... see next couple sections.

  1. Get together with some friends and invest as a pool.
  2. Borrow from the bank based on your house. The interest spread is your profit. If the spread is enough..call. If you don't understand this, don't do it! And don't bet everything on one deal. <-- only do this on my straight "Interest" opportunities. I do not recommend this for the higher return/higher risk partnership. If you don't understand why - don't do it on either account!!
  3. Provide skills/labor/labour for a percentage of ownership.
  4. Trade assets for the amount you are short. For example, do you have a motor home that you don't use? Sell it, or trade it with someone. An Apartment block that is a big hassle? Rental accomodation you don't want anymore? Hassy equipment? Anything else of value?
  5. Be innovative! Use the brain God gave you.
  6. BUT ... probably the best is: Wait. Maybe this isn't your time to invest. Maybe waiting is your best decision.

Just don't put all your eggs in one basket (see below.)

Peter, what if "this" is your failure?

I mentioned earlier that, so far at least, I have never corporately or personally missed paying back a loan on time. But I'd be a fool to suggest that every business and every venture is guaranteed successful. The possibility always exists that one of my future deals will lose.

If you are investing as a Lender (as opposed to partnership) you are even more secure. And given that a high rate of interest is still not going to double your money in a year or two, it had BETTER be more secure! Because of the security, as a Lender, a total loss for me can be a minor loss to you. Indeed, you may still make money (unlike putting money in the bank where you are guaranteed to lose) and quite possibly more than you would have from the interest. Remember that YOU have the security of the property or business. So a total loss for me still leaves you with something, and that something is in most cases not small potatoes.  *** Note: Currently I have none of this investment type available for new investors, sorry. If you want to be on my list for future projects, contact me. ***

The second comment is that. Well, yes, something could go wrong and any one deal could become a total loss. A bank can default too. That is why you shouldn't put all your eggs in one basket.

All your eggs in One basket

I am amazed and flabergasted that people have mortgaged their house to the hilt and bought shares in company X. And then they cry to the government to sue someone when they lose everything they own because of their own stupidity.

So why do they do it? Simple ... sometimes, this works out - for example if you did this several years ago and investing in Microsoft, you are a millionaire now - even though the shares dropped 50% in value in 2000. Unless you bought them in late 1999, you made a lot of money on this. (By the way, I did invest in MS years ago. I invested 10% of my net worth at that time. And I am really glad I did. Several of the other 90% of my stock investments have gone DOWN, but my 10% MS stocks easily made up for all the ones that went down - even after the 50% loss in 2000 - as well as the ones that didn't go up as much as I would have liked.)

However, most of those that invested everything in Brex, Nortel or other superstar companies on the way up (or worse, at the top) , are now destitute. So Don't ever invest everything in one venture, mine or anyones.

I don't invest all my eggs in one basket. I manage my risk by investing in several great projects instead and I suggest you make sure you don't ever have more than 25% invested in one asset. If you are like most people, you've already invested more than 25% in one "asset" - your house. And your house probably has no hope of making you money until you sell it. Be sensible with the rest of your money. I have several times invested more than 25%, but never more than 50%, and I now have enough that, other than one older investment that I would have to sell all or nothing, all my investments are capped at 10%. I have made exceptions for companies I have run.

Now, that would be a little different if you invested in a "Buffet" situation. Where Mr. Buffet put together a bunch of baskets, then put all those baskets into one basket. If you invested in Buffet 20 or more years ago, you were buying into all his present and future projects. I have had a few people ask me to do a "Buffet". Where I put ALL my investments into one big basket, and then let people invest in the growth of that basket with me. I may do this in the future. If I do, I will roll all my existing assets into one big basket and let people invest in the whole basket. In that scenario, investing everything in one basket may make more sense. But still - do you completely trust that one person? In a case like that, or if I do such a thing in the future, I am going to suggest you still not put more than 75% into even THAT type of basket even though I will be putting 100% into that basket (If I don't put 100%, I won't do it at all) - and if you think 75% is too high - no problem - you are going the correct way.

Personal Finance & Planning

High rates of Interest    Investing - partnership with me    Financial planning & Free advice

Have you ever been phoned by a "Financial Planner" and told they will help you plan your finances? If you do, always make sure they are a lot more successful than YOU are. And ask them WHY, if they are successful, they are doing it, especially if they say they give you a free financial plan.

I have been asked by people to help them plan their finances. I have to tell you. I am NOT a certified financial planner. I have provided consulting services to some in the past and if you choose to use that consulting time for planning your finances, I may be willing to assist. I will look at your finances, help you with budgeting your time, money and skills/knowledge. I will look at your investments to see if they fit with your objectives, lifestyle. I will work with you to develop ways you can achieve your objectives. But you have to be willing to want to change your mind set, your comfort zone, your education. If you are married, you should discuss this with your spouse. I will challenge you to shed old habits and ideas, both personally and financially. I will encourage you to think like the rich and not like the middle and poor class (I'm in the middle class and, because I'm thinking long term have spent years below the poverty line - but I think for the future and make long term decisions, I don't 'think' poor.) If your attitude is "but I *am* middle or poor class and I don't really want to change", then you don't want to use me to assist you in any of your planning, financial or otherwise. I was raised in a lower middle class family, but I chose a totally different mind set. At times it was difficult. So, if you want it to be easy, no work, no money, no thinking and handed to you on a silver platter, please don't even call me, it always takes one or more (usually more than one) of time, work, money to achieve anything. I will also encourage you to be balanced in your lifestye - not make money your only objective, and not make money your idol or your God. To do so would result in abject failure of life.

OK, so someone emails me and says "Not true, you could win the lottery." I said, OK, lousy odds, but you still have to buy a lottery ticket. "Not true, I could get the lottery ticket as a gift." My reply: Fine, there's always an exception (usually a stupid one.) But remember, almost everyone who wins a lottery ticket is poorer 1 to 2 years AFTER they win the lottery and you will not beat the odds if you go it alone. If you win the lottery you really need to hire myself or some other consultant or financial planner. Just make sure that the person you hire has at least a couple million dollars in assets (Whatever you win, make sure they have more.). Don't accept the free financial planner who is just starting to build their fortune -- and they want your money to help them build your forture! At a minimum, find someone who has built one fortune and wants your money to help them build their second fortune. Feel uncomfortable asking the financial planner to provide proof of their wealth and income? Why not, they are asking for yours! Would you go into a doctor in some 3rd world nation and say "go ahead" without first checking their credentials? If you don't have the self confidence to demand a financial planner show you their financial status before deciding whether to use them, then ask a friend to do it for you.

If you hire me to assist you with life/financial planning, I will never, ever offer or try to entice you to go in on business opportunities unless you ask me first. If you hire me as a consultant, I will work in that capacity and not try to "sell" you on any of my other ventures. If you ask and want to be part, then yes, I will be happy to let you help me on my way to building my next fortune, and I will do everything reasonable to ensure that it helps you on your way to building your first or next fortune. But I won't try to "sell" you on it.

Note: I restrict my total consulting (personal/finances/business/computer/educational) time to a maximum of 25% of my time. If I cannot take you on when you want, I will call you when I am able to add you. Once you have been added, you will never be dropped unless YOU ask to be dropped. (And my goal is to make you the expert on you so you stop needing me.

Before you spend with me (or any amount of time or money with any financial planner) I strongly recommend you invest some money in buying books and adult educational games from Rich Dad Poor Dad. Click here for all the details. Robert Kiyosaki is, in my opinion, one of the best authors for financial planning. His concepts make "The Wealthy Barber" seem low level. If you have already read his books, I can tell you I operate 80-90% in the B/I quadrants and 10-20% in the S quadrant. If you haven't read his books, order, at a minimum "Retire Young, Retire Rich" and if you have kids, you need to buy "Smart Kid, Rich Kid".

Free advice

One last truism. You don't have to understand this, but it is absolute truth:

When House prices are RISING your home helps you when you want to move to a SMALLER house. If you want to move to a bigger house, rising house prices HURT you. Yeah yeah, you've got more equity. Big deal. Work the numbers out on both houses, you'll see I'm right.

When House prices are FALLING, THAT is the time to move up to a BIGGER house. If you are in your retirement years...falling house prices hurt you, rising house prices help you.

So, move to bigger houses when prices have fallen a whole bunch and you can afford it if they keep dropping. Move to smaller houses when prices have risen a whole bunch. Work the math out.

As discussed at the top of the page: