JohnStruggledork - 7/30 - John Struggledork

Momentum, when added to compounding, can increase mass and speed, thus creating huge INTERGENERATIONAL WEALTH.

“IS DEBT THE GREATEST OF All WEALTH CREATORS?”

I asked the above question last week. To me “debt” is not the greatest wealth creator of them all. Ask a bank owner and I think you may get a difference answer ……our circumstances are totally different.

In my opinion, the greatest wealth creator is the human design and the abilities to know the difference between ENERGY and TIME and the ability to deploy ENERGY and TIME to create money.

In the last 20 years, the rules around MONEY in North America and Europe have changed at huge speeds, giving both societies huge advantages over the rest of the world in terms of creating MONEY WEALTH.

It has been the ability of the mass societies to borrow MONEY against Real Estate and the illusion that Real Estate will only continue to increase in Money Value, thus allowing more MONEY to be borrowed to buy stocks, bonds, gold and silver. Hooray…. more debt to create more wealth!!!

The bankers rub theirs hand together thinking, “I have more humans working for me to pay off the debt”.

The Human think, “wow… we will all be rich because we are borrowing MONEY against investments/assets that only increase in value”.

How good is this!?!?

Enter…… Enron and………. Burnie, the guy who made off with all his Investors’ MONEY.

The REAL value of Real Estate for a human is the shelter value …… keeping our bodies healthy against the elements of this planet.

The MONEY Value increases by illusions or perceived worth, which is created by an idea of supply and demand and the Desire to have more features, making the home or business look and feel better.

Like:

1. Shortage of water views on a planet that is made up of 1/3 land mass and 2/3 water mass or even more

2. This property has city views, or…. I like this one the best …

3. Only 10 kilometres from the city centre (Hello… who goes to the city centre these days?)

4. Indoor toilets…. 2 ½

5. Hot and cold water through-out the shelter

Humans!!!! GO FIGURE

My real point is that any human can train themselves to understand MONEY and MONEY CYCLES. How?? By taking the time to understand MONEY and the rules around MONEY. If you want MONEY to work for YOU, it is now TIME to pay attention.

This is very real and it is what SIPHO and I do all the time when we are dealing with the MONEY.

Circumstance: We always look at where we are right now…. Our NPP (Net Present Position). Sipho does not like risk and SABEF Struggledork is ready to take on risk.

This creates a great environment of understanding between parties, knowing where we each come from.

Both of us want to live the rest of our lives at our current standard of living and be responsible enough to Create INTERGENERATIONAL WEALTH at all levels…. ENERGY, TIME and MONEY for our families. We do not want our family working for MONEY…. we demand MONEY works for US.

Enter…. Risk and Risk Management

Idea: SIPHO and I wanted to buy a house, so we planned what we wanted. I dare say, we may not think like everyone else when it comes to buying the house.

Here is what we consider:

1. Where does each of us spend most of our working days? I refuse to spend my life in traffic…. I will not live more than 15 minutes from my working business location!!

2. How much cash do we have for a down payment?

3. What is the best deal we can get when we borrow MONEY?

4. We do not buy new houses… we like houses that are well located and been lived in. We always know that we will need spare cash to make the house a SABEF STRUGGLEDORK HOME!

5. How much of our money-flow are we willing to spend on shelter?

6. In other words…. what is the deal and how do we make it work for the SABEF STRUGGLEDORKS!

SIPHO and I go to what agreements need to be in place to make sure they match our idea of is in our minds.

We get out a map and look to see the best area to live that is closest to our business. Best to us means…. what area will hold and increase in its value in a very near future. We like the illusion of others and know how to play the game. To do this we study for weeks by:

· driving around and looking,

· reading all the ads in newspapers and magazines,

· looking at every online web-site on real estate and associated topics

· talking to real estate agents

· looking at schools in the area

· looking for graffiti (We will not move into areas that has graffiti)

· talking with people who live where we are thinking of living…. Eg: Knock on doors and speak with people on either side of a house we are thinking of buying

We do a lot more than the above….these are the basics.

So why do we take the Time and Energy?

Because then we make well-informed and thought-out decisions.

Creating money and training the MONEY takes discipline and a high quality of thinking. Over the years, SIPHO and I have bought and sold many houses and have very strict rules in the way in which we make the purchase.

#1 Rule: When we buy……. If we can’t sell the house the very next day (!!!!!!!) for more than we paid for it…………… we do not buy that house!!!!!!!!! There are always deals to match your circumstance, if you are willing to wait and take the ENERGY and TIME to CREATE your outcomes.

#2 Rule: Never, not ever, lose your credibility… This is linked to your credit worthiness.

Your greatest Asset is who you are!!

If you have been reading SABEF STRUGGLEDORK, you will start to notice repeating patterns.

I always want to know:

- What is our NET…. PRESENT….POSITION?

- What is the IDEA (in this case, buying a house)?

- What agreements need to be put into place?

- What do I have to exchange for the idea? (ENERGY…TIME….MONEY)

- Will the IDEA REPEAT? This is the GOLDEN RULE OF INTERGENERATIONAL WEALTH

I will go deeper into the first house SIPHO and I bought next week. I will say this…. we started with a set amount of MONEY that has been reapplied on many housing deals. Over the years, we have been able to make our money increase by 10 fold+……. This has proven to:

· Be a very tax-effective way to increase our wealth (and follow the millions of tax rules!)

· Decrease the amount of MONEY we spend on the shelter we live in, which is in one of the best areas in our city. (NB: Illusion value and the real estate.com web-sites….Must be true!), and as a bonus;

· Have access to millions of dollars of available lending to us, at great interest rates.

Debt can be great if you can manage the beast….. Sipho, being a great business woman, is great at managing debt. SABEF Struggledork has to manage PSYCHOTIC OPTIMISM ……this makes for a fun life!!

(Note from Sipho: Somewhere between SABEF Struggledork’s risk seeking and embracing and my risk adversity, we find a place where we can both manage our concerns. And for me, the best way to find this place where things work for a couple is just to get on and do it and manage it along the way. As SABEF Struggledork said, we have bought and sold many houses. And it gets easier each time. The other thing for me? I have never been emotionally attached to buying a certain house. If the deal does not crack up, we walk away. There is no shortage of houses to buy and being attached can lead to dumb decisions. We have walked away from many house deals. We only want to live in one house and from an investing point of view, we are very particular about what we buy. The other thing we do is draw up a list of ESSENTIAL CRITERIA and DESIRABLE CRITERIA for a house. We then e-mail it to all the real estate agents in the area… and good houses always pop up).

Until next week, where we will continue the SABEF STRUGGLEDORK’S first house.

SABEF STRUGGLEDORK