A few years ago, I hired a full time mechanic to work on my jet to reduce the maintenance costs and improve its reliability. He was sitting in my office with my pilot, my CFO and myself and we carefully and slowly pointed out to him all the reasons he should incorporate to save money and provide more asset protection.
I told him I’d put him on a salary if he insisted, but it’d cost him a lot of money in lost deductions and other benefits and there was really no reason not to incorporate. Of course, that would mean he’d have to make tax deposits and file one more tax return each year to save at least $10,000 in taxes he’s currently paying. I even volunteered my CFO to handle the tax deposits for him.
The next morning, my mechanic called and said he decided he’d rather be an employee. This corporation stuff was just too much to handle and it kept him awake at night. He just couldn’t deal with the idea of doing anything new or different to improve his financial position in life, which obviously sucked.
Actually, it didn’t surprise me at all and I expected his answer to be exactly what it was. When he gets too old to work and applies for social security, his net worth will be approximately what it was the day he was born.
Because He Won’t Accept Responsibility For His Own Actions and Do What It Takes To Effect Positive Change.
Unfortunately, that’s exactly how 95% of the population reacts and why only 5% are in the high income, high wealth bracket. I hope you’re one of the 5%.
The opposite of this story was my pilot then, Don, whom I accidentally found because his wife worked at Global Publishing. He works for Delta and has several thousand hours in the cockpit.
You see, he had one big problem – he’s a thinker brains. I’m glad he is. All pilots should be. The world needs thinker brains to keep us reptile brains in check. But his analytical personality tends to make him over analyze and spend more time on what can go wrong than what can go right. It takes him five times more facts and time to make a decision than it does me.
In spite of this handicap, he bought his first investment house with no money and over $50,000 in equity. He simply got the deed after a seller called him on an Ad. The house needed $15,000 in work which he finally got completed about 3 ½ months after buying the house. That’s right, 3 ½ months for a job that should take two weeks max.
But hey, it was his first deal and first experience with contractors so, I’ll cut him some slack. He still did well because he bought right. No money down, no personal liability, and a lot of equity on a well-located house. Give him a round of applause.
I’ll keep you posted when he sells the house…which will probably be about a year from now.
Just kidding Don. I know it won’t take a day over six months to move that house. (Actually, he did sell it in a few months and netted about $35,000 as I recall.)
I’m told there’s two people you shouldn’t insult – your cook and your pilot, who has your life in his hands.
Seriously, kudos to Don for being bold enough to make that first move. In his world of thinker brain pilots he gets criticized for even trying. In spite of that, he’s slowly overcoming his fears and pushing forward to his first real estate success, then his second and his third until one day, not too far off, he’ll be making more money than the CEO of Delta and maybe even hiring his own pilot.
The difference between Don and the mechanic is Don is moving forward and the mechanic has his head in the sand.
Don has accepted the responsibility and the reality that everything that happens to him, good or bad, is his fault.
I’m presently twenty pounds overweight. I don’t like it. My pants don’t fit right. My belt’s too tight. It drains my energy and causes back pain sometimes if I stay in bed too long – not to mention it distorts my manly physique and puts a strain on my heart.
Then, you might ask, why are you overweight?
I Eat Too Much Crap And Won’t Exercise My Fat Ass.
Actually, I think I should sue the fast food restaurants for serving me that crap. They should know that food makes people fat and the harm they’re causing to society. It’s all their fault…or not!
I know why I’m fat and how to fix it. Its simple…eat less, move more. When I want to bad enough, you may consider me skinny.
I also know that every business problem I incur is also my fault and if I contract a disease of some sort, it’s also my fault, most likely from the crap I eat. No one to blame but myself.
I had a quadruple bypass a few years ago, but of course I had nothing to do with clogging up my arteries.
Ok Ron, what’s the point?
If your business is not going the way you like, there’s a reason.
It Ain’t Lack Of Opportunity and It’s All Your Fault.
If you are not in the financial position you’d like to be, it is NOT because of a shortage of opportunity.
You need to get that out of your head.
Opportunity is all around you, and my world is fully populated with people who started from scratch, from zero, or worse than zero, and quickly created large income, successful businesses and wealth in a dizzying short time to real estate investing to sales to speaking to direct marketing to you name it. In fact, there are so many ways to start from zero and do well financially, the only real reasons to stay poor are ignorance, laziness, or habit.
That’ll sound harsh to anyone reading this who is poor.
I mean it too.
This is not to suggest I have no empathy for people in financial trouble or who are poor. I’ve been both. And I recognize there are people who legitimately have never had exposure to the very idea of possibilities to do better, and that is a societal problem we ought to address differently than we do. But I doubt you’re in that category. If you’re reading this article, odds are, you aren’t that deprived and ignorant. You aren’t an illiterate third generation welfare dependent who has never been outside the ghetto. You know better. And if you know it, it is possible to do well, then doing poorly and being disappointed about it, demands action. Not acceptance of failure.
If you’re not doing well in real estate, or any business, here’s a list of reasons why. Of course, you may be saying, “I couldn’t possibly know why you’re not doing well and it’s none of my business.”
You’d be wrong on both accounts – your problems are no different than those I’ve helped students solve for 25 years now and helping you get rich – is my business.
You wanna know a secret?
It’s not really that hard!
You’re half way there now because you’ve already cracked the code to success.
If You Want To Get Rich, You Must First Put Yourself In A Position To Do So.
You’ve done that. You’re a real estate entrepreneur, or about to be. You’ve found your vehicle. Now all you have to do is put it in drive and give it gas and let no S.O.B. stop you.
See you next week.