our blog.

Enjoying a 6 Pack of Houses.

May 31, 2017

Last week was nuts. Not because of the three day weekend, but because we finally closed on 7 deals we had lined up. One was a plain vanilla fixer from the MLS, the others were a nice 6-pack: refreshing, abandoned, and in need of a good home.

I stumbled across this seller by accident some months go when I was looking for sources for good notes. My property manager mentioned one old house, and I decided to go to county records to see who owned it, then saved their info and forgot about it. In the middle of March my inventory of note supply was running low so I started pulling up old leads to see if I could find anymore deals.

We originally budgeted $30,000 in repairs, but after seeing some of these, we’ll be all-in for under $15K a door for most of them.

When completed we’ll have new rentals for less than 30% of market value. It took a few weeks for me to chase down the seller and get a relationship started, but in the end it was worth the time and effort considering this city is one where we already have 4 other deals in process.

The moral of the story is this, turn your local teams into your best assets by putting them to work as lead generators. You never know what that “old vacant house I drive by on the way to work” can turn into. In this case, we got 4 really REALLY nice houses for less than a new car. Two are rougher, and we may sell them off to pay for the others, but all in all a big win for Powerhouse.

Since these are not mortgage notes, we had lenders and backup-lenders ready to close. We’re already working on the exterior clean up and negotiation with the city to get some of the fees/fines/liens removed. When they know a good company will come in and fix up homes, they make accommodations.

I’ll keep you posted.

If you’d like to get your money out of the Wall Street casino, give me a ring and we’ll find a way to introduce you to real estate and what it can offer you.

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The Basics of IRA or 401k Investing Plans (Part 1 of 4).

February 24, 2017


We’re going to discuss real estate retirement secrets, and how you can use your 401(k) or IRA to supercharge your retirement. In this video series, we’ll discuss retirement account overview, outside the box thinking, and how you can supercharge your portfolio. First of all, retirement plans are not investments, but they’re more like an envelope, and inside that envelope, it’s treated a certain way. These investments, as they grow and as you add money and take money out, they’re treated a certain way based on taxation. They’re usually used just for retirement.

Part 1 – What is an IRA, 401k and how do they work. (very basic overview)


The 401(k) plan, many people have one. Most times they’re sponsored by an employer, and you’re very limited to what you can put into them. Most 401(k) plans hold mutual funds or annuities or some kind of stock market derivative, and they’re tax deferred, means you don’t pay tax now. You pay tax later.


Now the IRA is very similar to the 401(k). Usually created by a bank, a stockbroker, or an insurance company, but you set it up, and you’re in charge of putting the investments into it, like the mutual fund, bonds, stocks, etc. To review, the IRA and 401(k) are both retirement plans or envelopes to hold money. They’re designed for access when you hit retirement age, and they’re general tax deferred until you start taking the money out. Many people put bonds, stocks, CDs into them.


But the goal of these accounts is simple. Invest and grow wealth for your retirement. Simple, right? Yet, many people don’t care for Wall Street anymore. They hate earning so little on their CDs, and they want more choices, more control. Well the good news is, you can take your idle IRA money and put it to work for you and not some big fund manager in the Big Apple.


“So, how do I start?” Well, you can roll over your 401(k) or IRA, sometimes into a Roth IRA, and many services can help you with that transfer, so you can start self-directing your retirement account. So let’s take a look at some examples of how you can use your IRA to buy real estate or real estate related investments.

So let’s take a look at John. He’s got an IRA, but he wants to buy a rental property for retirement. He would take money out of his IRA. The IRA would take title to the property, and the IRA would get rental income every month that would grow in the IRA tax free or tax deferred. So let’s take a look at Sam. Sam too has an IRA, but he does not want to own a rental property. He wants to be the bank. So he finds Janice, who has a fixer upper, but needs a little bit of extra money. Sam loans her the money. They get the fixer upper repaired, and in return, Janice gives the IRA a mortgage, a monthly mortgage payment every single month until the money is repaid, and Sam simply collects it in his IRA.


So if you’re tired of low returns on CDs, or you’re tired of the Wall Street whiplash where you’d like more control, perhaps you’d like to get into the fast lane with easy to understand real estate ideas, where we can earn 10 to 15 times what a typical bank might give. Let’s have a productive conversation. We’re available to talk anytime, or simply join our newsletter, and we’ll keep in touch that way. Fill out your name and email over to the right or below, and every month we’ll put out a video and an email explaining some of the deals we’re working on. I’m Jason from Powerhouse. Call anytime. Thanks again for watching.

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Where did all the REO (Bank Owned Homes) go?.

February 19, 2017
investment property

When things change, people guess. They blame hocus-pocus, the weather, climate change or so other “higher power” on their ills. When REO’s rushed into the market by the thousands, investors went nuts buying up this “rusty-gold” and getting the houses back in shape as investment properties. A large majority of interested buyers stood on the sidelines wondering if the deals would get cheaper, if the economy would take another down turn, and some didn’t move when the market begged them to. Things have changed. REO’s are scarce and flippers and landlords are struggling to find inventory in a housing market that has licked its wounds and moved on.

One of the biggest frustrations investors know two things:

1. People are still defaulting – meaning foreclosed homes should be on the market.

2. Where the heck are the &*&# REO’s??

First, you’re correct, REO’s are still out there, but in fewer numbers and the deals that are out there, are usually overpriced for the condition of the property. Secondly, the REO’s of yesteryear are gone, and very likely never to come back. The gov’t and GSE (Gov’t Sponsored Enterprises) figured out its a really BAD idea to foreclose on every house on the market. This turns good houses into vacant blighted junk, and kicks people out when a workout would have been possible so that they could have stayed in the house.

Have a look at this article on Housing Wire:

Fannie Mae selling off $1.76 billion in non-performing loans

Ben Lane
Fannie Mae announced Tuesday that it plans to sell off $1.76 billion in non-performing loans, the latest in the government-sponsored enterprise’s efforts to rid itself of deeply delinquent mortgages.

According to details provided by Fannie Mae, this latest sale will include 10,000 delinquent loans split among four pools, totaling $1.76 billion in unpaid principal balance.

The sale also includes Fannie Mae’s latest Community Impact Pool, the GSE’s sixth such sale.

Per Fannie Mae, the Community Impact Pool is a smaller pool of loans that is geographically focused, high occupancy, and marketed to encourage participation by non-profit organizations, minority- and women-owned businesses and smaller investors.

According to Fannie Mae, the sale is being marketed in collaboration with Bank of America Merrill Lynch and The Williams Capital Group, as advisors.

“We are offering these non-performing loans and this community impact pool to diverse investors in an attempt to expand the opportunities available to borrowers who are significantly delinquent on their mortgages to avoid foreclosure,” said Joy Cianci, Fannie Mae’s senior vice president for single-family, special and distressed assets.

What does this mean to you, the investors, flippers, landlords? Simple: times change and you need to stay up with the changes if you want to be part of the REO gold-rush 2.0. Notes are where things are at, and deals are still coming from the gov’t just in different form.

Reach out to us if you’d like to discuss how you can come on board and supercharge your IRA with a different form of investment property deals. We have experts for every phase of the operation from the basic questions to tax professionals we use.

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The 25 Most Affordable Housing Markets [Link].

January 27, 2017

The U.S. housing market improved over the course of 2016. Home purchases are up, foreclosure activity is down, and in a vote of confidence for the U.S. economy, the Federal Reserve announced last year it would hike its benchmark interest rate.

Owning a home — for those who can afford the down payment — continues to be more affordable than renting in most of the United States. Despite the indications of economic strength, rents and home prices are rising faster than wages in most housing markets across the nation….

…The most affordable housing markets are not necessarily the most desirable areas. In fact, low rental costs are often the result of weak demand. Some of the areas on this list include counties such as Madison County, Tennessee, where the typical rent actually declined by 6.4%, versus the average rent increase of over 4% across the more than 500 counties reviewed. The year-over-year rent increase was above that average in only six of the 25 most affordable areas.

In an interview with 24/7 Wall St., Daren Blomquist, senior vice president with property and real estate data company ATTOM Data Solutions, described increasing rent prices as part of a vicious cycle. High home prices encourage more renting, which pushes up the demand and prices for rentals. Eventually, at high enough rental prices, buying becomes more attractive.

This means that in the relatively affordable housing markets where rental prices are increasing slowly or even declining, there is relatively little demand for rental housing. Indeed, in all of these 25 markets, buying is cheaper than renting without exception.

Nationwide, especially in the relatively unaffordable counties on this list, wages are not keeping pace with rising rents and home prices. The pattern holds even in relatively affordable markets. Rent and or home price increases are outpacing wage growth in all but four of the 25 most affordable markets. For Blomquist, this trend is unsustainable. “Eventually, [rising rents and home prices] have to be supported by incomes,” he said…

…These are the nation’s most affordable housing markets. Top 25 Rental Markets

Original Article:


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January 9, 2017




Jerry is a middle-aged progressive man from California; he has a high-paying job that gives him a good income to support him and his family of four. He has always had an interest in real estate; he has bought and resold properties in the past five years. He was at the bar with a colleague from work, blowing off steam and talking about potential money-saving strategies and Jerry’s colleague made mention of retirement IRA.

‘’What does retirement IRA mean Nick?’’ Jerry asked, adjusting his tie.

Nick explained to him how retirement IRA works. How an individual who is into real estate investing can plan towards investing with his retirement IRA.

‘’Okay, that sounds interesting but what does IRA stands for exactly?’’ Jerry asked, the bartender filled up there glasses of beer.

‘’IRA means individual retirement account’’ Nick said.

‘’And how come I haven’t heard about this?’’ Jerry asked, he was being skeptic about this.

‘’It is because it is relatively new and many people haven’t heard about it.’’ Nick replied.

Nick went on and explained to Jerry that retirement IRA is new and there are different kinds of it.

‘’I know you are into real estate investing so this shouldn’t be a new thing to you but the thing is you can actually buy and invest into real estate using your retirement account so you don’t have to just buy mutual funds. Stocks and bonds aren’t the only things you can invest your retirement in; there are a lot of different options.’’ He said and he knew he had caught Jerry’s attention because Jerry began to ask about the basics of IRA real estate investment.

‘’There are two fundamental ways to go about the process. We have the self-directed IRA and the solo 401(k)’’

‘’Okay, explain the first option’’ Jerry said.

A self-directed IRA is the very common way used by people and they are managed by custodians.

‘’Custodians, what do you mean custodians?’’

‘’Well, a custodian is basically a middleman who manages everything including the bank account, concerning your IRA. There are big custodians and there are small custodians.’’

‘’So you’re saying I will give someone access to my bank account?’’ Jerry asked.

‘’Not exactly, you have to own a retirement account – that’s how it works. To set up as self-directed IRA, money must be moved out of your current retirement account if you have one but if you don’t you can always create a new one – this will be handled by the custodians.’’

‘’So what are the functions of these custodians?’’

‘’Custodians give you a go-ahead when you wish to buy a particular property and they also send you the actual money (or checks in some cases) when you wish to buy a particular property.’’ Jerry’s friend explained to him.

‘’So you are saying with a self-directed IRA, I can buy real estate but the custodian handles the rest?’’ Jerry asked for certainty.

‘’Yes and by ‘the rest’’ I mean they handle lots of the guidelines and rules that you have to follow; they give you the green light or the red light.’’ Nick said.

A custodian’s job is mostly like real estate investor’s but only when they use a self-directed IRA. Because they are managed by a custodian, they are highly regulated.’’

‘’Okay, I’m all for rules and regulations but what is the catch of having a custodian handle my retirement IRA?’’ Jerry asked.

‘’It takes a lot of process to be a custodian and a custodian gets paid as a percentage of the total assets. This is very important by the way because you need to know how the custodian handling your bank account gets paid through you.’’

‘’How much percentage of my total assets are we talking about here Nick?’’

‘’A custodian gets paid a percentage of your total assets. Which means if you have $1 million in your retirement account, it is going to be a larger annual fee compared to you having $10000. This is what a self-directed IRA is all about and it is commonly used by people. Most of the better programs charge only a couple hundred dollars a year.’’

Jerry sighed and pushed his glass of beer aside before saying

‘’Tell me about the second option’’

‘’It is called the solo 401(K).’’ Nick said.

‘’A what?’’

‘’It is also called ‘an individual 401(k) account’’’ Nick said.

‘’Okay, tell me about it.’’

‘’A solo 401(K) is suitably ideal for real estate investors. It was set up in 2001 and it is brand new and not many people know about it. A solo 401(k) is the method in which you are the administrator of your own account’’

‘’I am in charge of my own account?’’

‘’Absolutely, the solo 401(k) is a large plan and no employee is full time. You can have them part time and you can have them 10-9 but no full-time employees. Most real estate investors such as me just hire employees as independent contractors.

‘’Solo 401(k) deals with a sole proprietorship business more or less, which means your business can be on a small scale but the important part is that an individual has some earned income activities.

‘’For a real estate investor whose aim is mostly about flipping, buying, fixing and reselling a property, the income earned here has to be more than mere passive investments which only income is from a rental property. Only then can you consider yourself a solo 401(k).

‘’I think I can handle that. I have other sources of income than my rental property. But tell me the benefits of this solo 401(k)’’ Jerry said, he was definitely getting interested.

‘’Okay first of all, there is the benefit of the checkbook power.’’

‘’The checkbook power?’’

‘’Yes, with a solo 401(k) you handle the checkbook. When you have a deal on your hands that requires a money transaction and discretion, you can handle it on your own because the checkbook power is yours – something that isn’t common with a self-directed IRA.’’

‘’Nice, what other benefits are there for me if I choose a solo 401(K)?’’

‘’You can borrow money to help purchase a property. And there are not many tax hits and penalties while borrowing money compared to a self-directed IRA.

‘’With a solo 401(k), if a mistake is made i.e. a prohibited transaction it can be fixed, whereas with a self-directed IRA, it can’t be fixed because they typically liquidate your plan.’’

‘’There is no second chance with a self-directed IRA?’’

‘’No, which is why a custodian avoids mistakes. However, with a solo 401(k) you can fix what you’ve made mistakes on.’’

‘’Wow’’ Jerry simply said.

‘’With a solo 401(k), there is a chance of borrowing up to $50000 out of your plan to do whatever you want. The catch is you have to pay yourself back in five years with interest, or in some cases where buying a personal residence in ten years, still the interest will be yours.’’

‘’That is a win-win for me I guess. All I have to do is work harder to pay back the money I owe myself or I don’t even borrow money at all, right?’’ Jerry asked.

‘’You can avoid borrowing money because having the ‘’checkbook power’’ can push people to lose willpower over their own retirement IRA because there is not a visible control over the account which is why it is advisable not to use your money for personal purposes.

Moreover, many people might be scared at the idea of having a checkbook power, so you can hire a middleman but the bad news is there will not be enough control over your account and the middleman he will charge you more money but the good news is you will not blow away your retirement.

‘’You are right Nick. It is all about balancing and taking extra care on how I spend my retirement money. Still I know there would be some drawbacks though, each option has to have one’’

You are right Jerry. With a solo 401(k) account, there are also some setbacks that can occur. So you have to set the account right at the beginning which can be debatable since most bank officers don’t always know how to set up a solo 401(k) account.

‘’Also, it takes time because as an individual you will have to coach the title company how to put the whole process together when you want to close a transaction.

Not every underwriter in the title company at their title insurer knows how to issue a title insurance. This can pose a problem as well.

‘’Exactly! All these can pose problems. However, aren’t there people who know how to set this thing up? There has to be, right?’’

‘’If you do want to set one of these up, there are very few people out there that really know how to set it up right. I can get set you up on few contacts of mine if you want’’ Nick said.

‘’That will be lovely but you also agree with me that a solo 401(k) is preferable?’’

‘’Well Jerry, the choice is up to you because it is relatively new but a solo 401(k) is an absolute slam dunk compared to the self-directed IRA.’’

‘’Alright then, we will discuss more about this retirement IRA at the office. I have to go home now and discuss it with my partner but I am so glad you told me about this. Now I can work towards my retirement.’’

‘’Excellent Jerry and you’re most welcome.’’ Said Nick.



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5 Ways the Housing Market Could Change in 2017 –

January 5, 2017

Powerhouse Notes Blog


…Despite 2016 being a year full of surprises – some good and others bad – expectations for the economy remain positive, which is positive for housing.
“Even though rates are up, which is going to choke off a little bit of housing demand, what’s upsetting that is strong job growth, strong wage growth and strong optimism,” Rick says.
Confidence is half the battle when it comes to real estate, as people don’t want to move or purchase a new property if they’re concerned values will go down.
Shtainer says she expects to see a resurgence of international investors in U.S. real estate, despite a decrease in overseas buyers in recent months caused by political uncertainty both in the U.S. and abroad.
“They see that the economy is booming, and they see a lot of optimism going into 2017,” she says…


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The Boulder-Why Struggle is good (Story).

August 11, 2016



The Boulder

This is a story of a Man and the Boulder

A long time ago, there was a man living in a cabin in the woods, one fateful night when he was fast asleep, there was a bright shining light in his cabin, he suddenly woke up. “Tinkerbell?” the sleepy-head cabin man queried, he heard a voice from the light speaking to him calmly,” No son, I am the lord your God. “Stand up, I want you to do something” out of curiosity, the man asked, “what could that be God?” and God said “Right at the front of your cabin, there is a big boulder. Every day, I want you to push and push against the boulder at the front of your cabin. After the man heard what God said, with shock on his face he responded “Can this be real? Am I dreaming?” This is an awkward idea to me, and though I didn’t see any boulder when I came out yesterday. God, why did you put the boulder there? Am I being teased? God” But he took the instructions from God very serious.

Every day for many, many weeks this man continues to push the boulder, but he couldn’t manage to push it an inch. After a short time, suddenly a thought came to his head, which he knew was the voice of the devil. The voice spoke “This have been troubling you, you have possibly done all you can, it is not possible for you to move this boulder from its position, it is useless, just accept you have failed to do it. Then just slow things down and do the little amount of work you know you can”. He thought about what he heard, however before he would take the advice conflicting in his mind, he decided to pray to God. God “I have been faithful, I have been doing what you said I should do, all day for hours, I have been pushing against the boulder, but I have not managed to move it an inch. I have failed your assignment. I thank you for bringing down my self-esteem; it’s for my own good”.

God responded to him with huge interest “I didn’t see you as a failure my son, I instructed you to push against the big rock, and you obeyed my word, I didn’t ask you to move it but push against it”. “Since you have pushed diligently and faithfully against the rock every day, have you observed how strong your arms have become? The man was happy hearing God speak, your back is tan and strong, your legs are huge and strong, you are now in a better shape than you were. You have been obedient and faithful, therefore you have learned a lot.  God continue speaking to him, “Since you have confidence in me, I am taking away the rock now”. God ways are mysterious. So push when life is getting you down. When you are having issues on your job and things are not moving smoothly, you just have to quit. Start pushing in your personal business. When the money is low and the bills are high, you have no option but push. When people tends to respond to you in such a way you don’t like and want, push. When people fail to understand you, push.

There are so many things happening around you that you don’t know about. Endeavor to have a great summer, and may every of your boulders be rolled away after learning the lessons and God’s grace be with you.



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Non-Performing Notes, What the heck are they, and why should I care?.

July 30, 2016




We all know someone who has a mortgage problem.  Think back ten years ago when they bought their house. They bought a two-hundred-thousand-dollar house. They had about twenty thousand to put down, so they took out a hundred and eighty thousand mortgage. They figured, “The market’s on fire. In a year, it’s going to be worth two-fifty, two-sixty. In a couple of years, it’s probably going to be worth three hundred. If we want, we can sell it. We can pull out eighty thousand dollars and make a nice piece of cash.”

Of course, things didn’t turn out that way. The market crashed and burned. Now, that two-hundred-thousand-dollar house is worth a hundred and seventy. They go to the bank. The bank says, “I don’t want to refinance you.” They’re stuck with it. Time moves on. Now the house is worth a hundred and forty thousand. They’ve got a hundred-and-eighty-thousand-dollar mortgage for a hundred-and-forty-thousand-dollar house. What do they do? They stop paying. The bank doesn’t have a mechanism to work with that, so they just sit there and they wait, hoping that they’re going to start paying again.

This goes on for years…along comes a hedge fund. Who has a pile of money to buy these mortgages. They go to the bank and say, “that mortgage hasn’t paid in years. Every year you write some of it off on taxes to offset your profit.  You know you’re not going to get a dime of it. You’ve written off so much of that loss, that its worth zero on your books. Why don’t we just take it from you? We’ll pay fifteen cents on the dollar Okay? Ok, ok. Fine. We’ll pay twenty two thousand.” They think about it and they say, “Twenty thousand versus nothing,” and so they sell us the note for twenty thousand.

Now we’re the bank. We now have the IOU and the ability to foreclose if we can’t get the homeowner to pay something. We go to the homeowner. He’s upside-down & he has no idea who we are, or how we have his IOU, so we introduce ourselves. We’re your new bank, and since we’re not a traditional “bank” with all the federal regulation, we can be flexible. We get that you don’t want to spend the rest of your life paying on a mortgage that is worth far less than it used to. The house is worth a hundred twenty five thousand now,  What  if we rewrite your mortgage to a Hundred-thousand dollars & we’ll do it at eight percent interest. Of course, after thinking over the numbers for ten seconds, he says, “Great. Now I only owe a hundred thousand. My mortgage has basically been cut in half.” He gets to stay in the house. He doesn’t have to worry about the big credit ding, if it hasn’t already happened, so everybody’s happy.

We repair the note, which means we take payments from him for three, four, five, six months, consistently. Then we wave our note around. We say, “Look. We’ve got a hundred-thousand-dollar note that’s making eight percent.” We’ve got all kinds of people wanting to buy those notes. Now we could sit there and take your payments. We’re in at eighteen or twenty-thousand dollars. We’re taking payments on a hundred-thousand-dollar loan. We’re making money, but if you want to keep the cash flow moving, then you’re going to sell that note off. You might take a couple points off. Maybe it will be at ninety cents on the dollar. Then you go in and use that money to buy another note. You kind of see the way the process works.


The core of this business model is that we are able to buy these “toxic” assets from the bank. They clean up their balance sheet and decrease their taxes, then sell to us for pure profit. We get a very valuable asset for cheap and it is secured by a house worth many times more than what we paid

Why the heck are banks selling something worth $180,000 for $20K, $30K, or even $40K dollars? Remember this: We are going back three to six years ago. You can’t get those kinds of prices now, but six plus years ago, what the bank’s thinking was this: the people that buy bank stocks are institutional buyers, they’re mutual funds, big buyers. They buy stocks based on ratings. The ratings are based on how much good debt they have, and they get penalized by how much bad debt that they’re holding. The worse their rating is, the less institutional buyers they get, the lower the stock price is worth. They’re very incentivized to get rid of these notes, these toxic assets, this bad debt. These hedge funds buy thousands of these at a time, so the bank has good reason to clear the junk and get cash instead.

So that’s what’s been going on for almost six years. Buying these notes at a thousand at a pool and then working these notes out with the homeowners. Of course, the workout is easy when you approach somebody that owes a hundred and eighty thousand and you offer them a loan of a hundred thousand, they’re going to take you up on it. They don’t even care about the interest rate. You just cleared up two major problems: 1) am I going to be foreclosed on, and 2) how the heck can I get out of my mortgage debt that I don’t have $80K to clean up?

You are going to get the guy who says, “Screw you, I haven’t paid the bank in years, and I don’t plan on it now”.  Fine. You call a local foreclosure attorney and he will do the work. You foreclose on them. Now you have a house for a low amount (eighteen or twenty thousand). Sure there will be other costs like taxes that might have not been paid, or part of the HOA, or condo associations. You are going to have other costs, but look at it this way, you’re getting a hundred-and-forty-thousand-dollar house for twenty thousand for your note, plus all your other costs. Maybe you’re in $40,000 with all your attorney costs, fees, taxes, liens etc, but you’re still making great money. That’s kind of in a nutshell how the note business works.

But I don’t have a 50-million dollar hedge fund. How can I get started?  That is exactly the right question. Isnt it time you called so we can find out if there is a way to work together?






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The DNA of Success.

July 28, 2016




The DNA of Success.

Don’t be confused. Its really quite simple once you put the pieces together.

OP M2 T2 E2 + N+ GB

To be successful (both spiritually and in business) you need to adapt this bit of DNA into your lifestyle and daily thought pattern.

Utilize Other Peoples…

Money-You may be broke with a great idea. Somebody will appreciate your enthusiasm, energy, or ideas and might loan you the money or partner with you to help you achieve your goals. Know the difference between an asset and a liability. Borrow money to pay for things that increase in value, increase your value, or put cash in your pocket (Assets: Real estate, personal education) Pay cash for things that depreciate in value (Liabilities: cars, clothes, gas, furniture). So many people waste money (or worse, borrow money) on things that are worth less money immediately after they purchase them.

I’d be interested to see how much money we spend on junk in the US with Credit cards. Now let this idea sink in: instead of spending all our credit cards on junk, what if we spend the same dollars on education and personal development?? Remember, the person who travels the farthest is usually not the one who traveled the furthest in miles, but the one who made the most of the 6 inches between his or her ears.


Mistakes- You will never be able to make all the mistakes that you need to succeed. Having a mentor will help you prevent disastrous mistakes that you never knew existed. People are fearful of making the wrong move so they tend stand in one place their entire life. The Term, “I cant” only translates to: I’m petrified of failing so big that I can’t ever recover. Remember, when riding a bike, you had someone there to hold you up incase you lost your balance.

Replace these words: I can’t, No, Not and won’t. In their place adapt this phrase: How do I, who can help, where can I find that solution? Find a mentor, they will make sure you have softer crash-landings and fall forward on your journey. Only with a good coach, mentor, pal, friend, can you ever hope to fall small; accept a skinned knee from time to time. The Japanese have a word: “Ganbatte” which is loosely translated to “Pick yourself up try again”. The people with the greatest advantage in life are the ones who fail, process that failure, learn the lesson needed, and move on.

Never ever be afraid of falling down and skinning your knees. Fall six times and get up seven is an old Japanese proverb (see my blog on “The Boulder“. Would anyone try riding bike if they only thought of how painful it MIGHT be. No! You focused on how much fun it WILL be when you decided to try and learn. To fall or fail is inevitable. To stay down once you’ve fallen is your choice. Remember this idea: Winners focus on the PLEASING RESULTS, the unsuccessful focus on the easy way right now.


Time- You may not have all the time in the world to accomplish your dreams, desires or goals. If you give 100% of your time for your goals you will appreciate this: what if you found 100 people to give 1% of their time to help you achieve your goals? What if you volunteered your time (internship, errand boy, etc) to learn what the successful already know? (See experience below). This concept is one of the major differences between small business owners and successful partnerships, joint-ventures or corporations. Many people give a little of their time to make the whole group successful.

Talents – You may have the great idea, but don’t have the time to learn a new trade or skill. Someone out there has the talent you need, but has no idea how to utilize it. Remember: Somebody “plays” at the things that you “work” at.


Energy– You know these people…they have an eternal bounce to their step. The see the potential when you see the problems, they have the drive to get up early and stay late. They don’t mind getting down and dirty because that’s who they are. Excitement creates energy, energy creates emotions. Emotions get things done. Most people are dead inside because they gave up on their dreams hopes and desires. God is the source for all good things and through Him all things are possible. Remember, someone spilled their blood on the Cross so you can live. My question to you is: are you living to your full potential since you’ve really got nothing to lose?


Experience- Someone out there has already walked the path you seek. Someone already knows the hidden pitfalls and the unseen treasure that waits for you based on their experience of being there already. Tap into this experience. You would be surprised at the number of highly successful people who would allow you to take them out to lunch or coffee to pick their brain and get their opinion. If that person (say a doctor for example) has already gone from where you are to where he is now, don’t you think you could ask him for a few pointers or short cuts to get to where you want to go?


Network- The power of all of us working together is exponentially more powerful than just me working for my goals. Superman, John Wayne, Rambo are all macho daydreams and are models for failure. The real strength for any business or entrepreneurs is this: Interdependence is far more effective and important than independence. Think about that: Interdependence vs. Independence. One suggests I lean on you to succeed as much as you lean on me to succeed. The other suggests that have no one to lean on when I get tripped up or have problems that I can’t solve. Thats where we come in HERE

Also realize this about networks: EVERY PERSON knows or contacts more than 100 people in their daily life on an yearly basis. Never pass up an opportunity to be part of someone else’s network. That person you take to lunch or coffee knows other successful people who could potentially change your life in a way you never imagined possible. Conversely, your network could be the one thing that helps give a hand up to that person who has no idea how to help themselves. Never underestimate your importance in changing somebody else’s situation. Your worth is not measured in the amount of money you have or the car you drive or even your reputation, but rather it is measured by the number of lives you change for the better.

GIVE BACK– Always be sure you’re in somebody else’s “Success DNA” chain. Give back your Money, share your Mistakes, give of your Time, utilize your Talents, Energy, Experience and your life will be more fruitful than anything you ever imagined. There are so many people out there who need help even if its just you saying hello and offering 10 minutes of your time. So many people will open up and ask you a question or two once you’ve offered it.

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