Income for Life

Income for Life Member Spotlight...

Mike Jovic signed up as an Income for Life member in July of 2008 to learn more about real estate investing and he was intrigued about having a coach assist him in his real estate education. Mike is pictured to the left with his beautiful daughter Macie!

Mike had a very nice, completely remodeled home that he had bought of a rehabber prior to his Income for Life membership. Even though the house was gorgeous, he was unable to sell the home for anything near what he had sunk into the property for over two years!

Mike had not dealt with renters, and he felt that Income for Life could be the organization to help him learn the Rent to Own investing approach. He met with Alex Carney, an experienced Wealth Coach, and quickly had a game plan for his property. Here is what Mike had to say:

"I utilized the marketing techniques recommended by Income for Life and my Wealth Coach. They gave advice on the do's and don'ts, what works and what typically does not work. In December 2008, the property was rented to a hard-working couple on a two year Rent to Own program.

The initial down payment collected from the tenants was $2,300. The rent on the property is $800 (positive cash flow per month of about $150). Alex Carney walked me through the process from start to finish...

In the beginning I remember Alex's words...'Don't worry man, we'll find a quality tenant for your property, we'll getcha a down payment and we'll get this elephant off your back.' Alex and Income for Life delivered on their words.

This was quite a learning experience for me. Being a new investor in an extremely tough market brough many challenges to overcome. When asked if I will continue to acquire additional investment proerties I say with enthusiasm... Most Definitely! In this challenging market, it is a great asset to have Income for Life not just working for you... but with you."

Update on my 9 year old daugthers first "real" investment

Post written by Rob Minton
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This post is a follow up post to:

My 9 Year Old Daughters First "Real" Investment

I received great news yesterday on my daughter's investment. Now, I realize you probably don't care very much about this investment. On the surface it might not seem like this update could benefit you. However, it would be a big mistake to think like this. I'm actually including this follow up post because I believe it offers many valuable lessons for you. 

First the update - then the lessons. Sound good?

In late December 2008, we used my daughter's self-directed IRA to buy a used mobile home. Her IRA invested $5,000 to buy a 1979, 3 bedroom mobile home. This same mobile home sold on this past Monday for $13,190. The buyer paid $710 as a down payment and will make 72 monthly payments of $275.33. All combined, this one investment (with interest), will generate $19,824.03 of income.

This investment has a total return on investment of 296%. Divide this total return on investment by 6 years and you'll see that the annual return on investment is 49.3%.

I need to stop and give credit where credit is due. This investment was identified and sold by Brian Beck, our Income for Life mobile home guru. My dauther's IRA wouldn't have achieved these investment results without Brian's help and guidance. In fact, he really did everything for her IRA.We are very grateful for his help.

During this same time frame, the stock market here in the States has dropped again and is testing out new lows. In fact, yesterday was very ugly in the stock market. Her little investment locked in 6 years of 49% returns. 

What can we learn from this?

First off, think about how her self-directed IRA will grow over the next 6 years as payments are collected from the mobile home buyer. If she doesn't make any additional contributions between now and then, her IRA will be worth over $!9,000. She will be 15 years old at this time. Imagine what this could compound into when she hits 50 or 60. It's scary, but many adults don't even have this much saved for their retirement.

Within 2 years from now, she might have enough accumulated inside her IRA to buy a second used mobile home investment. Her IRA would then collect two monthly checks. This process could continue on for years to come. 

Would she need to save a lot of money as an adult? Probably not. This is assuming that she continues to snowball this first investment within her IRA. My goal was to give her a head start to financial independence. I think the goal has been accomplished.

Couldn't you do the same thing for yourself or for your kids? Most definitely. Contact your local Income for Life group for more information on these mobile home investments. You can apply online at: http://www.IFLApplication.com

Here are a few other lessons for you to consider....

1. Anyone can invest with the right help and guidance.
2. You can still make very attractive returns in the middle of a recession.
3. You don't need a lot of money to get started.
4. You can design your investments so that the economy doesn't have any impact on them. 
5. The power of investing through a self-directed IRA.

Now it's your turn. Please do something with the information I just shared with you. Knowledge is useless unless it's acted upon. Give your kids head start on financial independence!

2009: The Year of Passion

Here are some thoughts I had during my latest vacation...

I am sitting on the patio of my room in Punta Cana, Dominican Republic as I write this. It’s a beautiful morning with the ocean breeze providing an orchestra of rustling palm leaves.

Before I left I was debating whether or not to bring my laptop. There were things I wanted to get done but people that know me were telling me that I was crazy,to just go, relax, and don’t think about the work that lies ahead.

But it didn’t feel right, a conversation with my wife while packing pointed me in the right direction. She knew that I am a much more satisfied (and happier!) person if I am able to get things accomplished during the day.

You can see from this picture which point of view won!

It doesn't matter if I am on vacation or sick at home I always want to get things done, or be reading more, just progressing in some way.

It made me start to wonder if I was hooked on work. Did I really fall into the 'workaholic' category? I always prided myself on realizing there is more to life than that.

Whenever I am on vacation I always stack my luggage with books to read. I love thinking about new ideas while sitting on a beach, to me there is no better way to do it.

I was reading "Tribes" by Seth Godin when it all came together for me. Here is an excerpt from Page 100 that made it all click.

"It’s four a.m. and I can’t sleep. So I’m sitting I the lobby of a hotel in Jamaica, checking my email.

A couple walks by, obviously on their way to bed, having pushed the idea of vacation a little too hard. The woman looks over to me and, in a harsh whisper a little quieter than a yell says to her friend “Isn’t that sad? That guy comes here on vacation and he’s stuck checking his email He can’t even enjoy his two weeks off.”

I think the real question –the one they probably wouldn’t want to answer-was, “Isn’t it sad that we have a job where we spend two weeks avoiding the stuff we have to do fifty weeks a year?”

THAT WAS IT!!!

I am not hooked on work, but I love what I get up to do every single morning.

I know you might be shaking your head, but it's true. I was able to take 5 weeks of vacation last year, 4 were out of the country, most without my laptop :-), I always make time for friends and family, I have hobbies, these aren't characteristics of a workaholic.

Is business on my mind often? Guilty as charged, try all the time!

But that is because I am passionate about it. What we are doing is helping people realize dreams. Who couldn't be excited about that?

I don't go on vacation to get away from work, I go to spend time with my wife and explore the world. I am on the lookout for opportunities to bring back to the people I work with. (Like the Time Share story I will tell you another time)

It is an incredible feeling, one that no person should be allowed to keep to themselves. Yes I know that sounds a bit cheesy but it's not. This is what 2009 is about. Let's get some emotions into our lives.

Awake with a purpose! Don't be one of the zombies that reads a couple doom and gloom headlines and goes into work to complain about life.

Put some passion into every area of your life. If you need to sit on a beach to do it then so be it.......just let me know so I can meet you there.

My next available time for meetings is Jan 27th. That is a week and half away. So you can be crazy busy and love it or at least like it.

Alright that is my rant and that was my big discovery for the New Year.

I recommend the book "Tribes" by Seth Godin to everyone. It was a PHENOMENAL read.

Here is a picture of the other books I got through on vacation. Yes I read them all in one week (although a couple were already half read before I got there).

My goal was to read or finish a book and day and I managed to do it.

You can see I like business books.....but not because I am a workaholic!!! :-)

So with the New Year comes new plans for everyone. Plan to add some passion into your life.

Make it the theme of the year - 2009: The Year of Passion.

- Nick Karadza
Income For Life Toronto

P.S. Check out our FREE weekly newsletter for 'current day, on the streets' investment information or you can watch me at Rock Star TV

The marathon and a lesson about life

Last Sunday, I ran in the Disney Marathon. When I started training for this marathon in 2008, my goal was to finish in 4 hours. This meant that I would have to average about 9 minutes per mile. In 1995 (when I was 25 years old), I ran in the Cleveland marathon. I finished this marathon in 4 hours and 47 minutes. A lady pushing a jogger stroller with two kids inside beat me by an hour. Really, she did.

I enjoy running, but wouldn't be considered a "real" runner. I didn't compete in high school. I simply run for exercise and stress relief. I wanted to set a challenging goal that I could accomplish right in the beginning of 2009 to give me momentum for the rest of the New Year.

A marathon seemed like the perfect choice.

Throughout my training, I struggled with knee problems. I found a great podiatrist and learned that my knee problems were caused because I pronate my feet as they strike the ground. He suggested many things to help correct the problem. He recommended special running shoes and orthotics. I found his recommended shoes and they made a big difference. My knee pain began to disappear. I was fitted for special orthotics and they finally arrived the week before the marathon. (I wasn't able to use them during the race...)

According to my running logs, here are my training numbers:

26 weeks of preparation

62.3 hours of running

524 miles covered

72,836 calories burned

All of this to run one 4 hour race....

I ended up missing my goal time, but I finished the marathon in 4 hours and 35 minutes. This was a little faster than my time from 13 years ago. I hit the "wall" at mile 18 and suffered through mile 26.
I must have been dehydrated at the end of the marathon because I felt nauseous for several hours after the race. I was also extremely sore and hobbled around for two days. Stairs were definitely my enemy.

In the midst of the pain after the race, I made the following statement to my wife:

"I'm never running another marathon again."

I've now recovered, for the most part, and feel pretty good. I actually kicked out a few miles yesterday. Guess what I realized?

I realized that it would be a big mistake to "never run another marathon again." I thought about everything I went through to prepare for this marathon. All of the long training runs, the podiatrist appointments, the new special shoes, the orthotics and the actual experience of the race itself.

What is the purpose of running a marathon, if you don't use what you learn again in the future? What I should have said was:

"Boy my next marathon is going to be a piece of cake"

Think about it. I now have the right shoes. I also have special orthotics. These two items will eliminate my knee pain. I won't have to deal with any of this for my next marathon. I also have a great running base from all of my training. I have my high tech running watch which tracks my pace and heart rate. I have a special running belt that allows me to carry water as I run. I have everything I need, plus experience.

I finally realized that the next marathon would be a lot easier than the one I just ran. I also realized that I would probably be able to shave more time off of the next marathon because of my previous training.

Ok, you're probably saying to yourself:

"Great, you're going to run another marathon. Good for you! How does this relate to me?"

Investors make the exact same mistake with their investments. Several years ago a really good friend of mine invested in used mobile home. The plan was to sell the used mobile home to a buyer with financing and create a nice monthly cash-flow. This investment was similar to my daughter's first investment. The problem was he bought this mobile home in the wrong park. He had a hell of a time selling this mobile home because the park had a bad reputation. He boldly stated that he would never make another mobile home investment again. Sound familiar?

Back in 2000, I lost a great deal of money in the stock market crash. I boldly stated that I would never invest in the stock market again. Sound familiar?

Investing can be a painful process, especially if you have a problem or two with one of your first investments.

Wouldn't you make the same mistake I almost made if you decide not to invest again because of these problems? You see, you probably learned a great deal making the original investment. You invested a lot of time, made some mistakes and finally figured everything out. These experiences would allow you to do a better job on your second investment. Would my friend have bought another used mobile home in the same mobile home park? No. He would have avoided this park in all future investments. 

The pain or problems you encounter aren't important. They are only temporary. What is important is the knowledge we accumulate along the way. It would be a complete waste to accumulate this knowledge and not apply it again. 

So I've decided to run in the Cleveland Marathon in May 2009. I hope you decide to put your investing shoes back on, too! Oh and deep within this post there is another buried lesson about preparation. Do you see it?

Also see my related post titled "Short Term Thinking Destroys Long Term Results."

A challenging physical journey ends on Sunday!

Many of our Income for Life members know that I've been training for several months to run in the the Disney Marathon, which is on Sunday. This has been a challenge lately due to the weather here in Cleveland, Ohio and significant pain in my knees. However, I pushed forward one step at a time.

Two days ago, my doctor told me not to run because of knee problems. He indicated that I could potentially cause long-term damage to my knees.

I've decided to run anyway based upon two very powerful quotes. Here is the first one from Joe Louis:

"You only live once, but if you work it right, once is enough."

And here is the second one which I in one of Dean Karnaze's books:

"Life is a not a journey to the grave with the intention of arriving safely in a pretty and well preserved body, but rather to skid in broadside, thoroughly used up, totally worn out, and loudly proclaiming: "WOW!! What a ride!"

I've decided to have a wild ride. If that means a walker for me, then so be it. I'm going to give it my all on Sunday because I promised myself that I would. You can't win in life when you quit halfway through your journey.

Are you living your life so that you'll end up at the end in a pretty well preserved body? I hope not. Life is too short. Work it right the first time!

The marathon starts at 6:00 am on Sunday. From what I understand, you get some kind of computer chip that tracks you throughout the race. You can track the race live at one of Disney's websites. Here is the link:

http://www.doitsports.com/results/MSG-signup.tcl?sub_event_id=4447

You should be able to find me by searching "Rob Minton". Hopefully I'll keep a 9 minute mile pace!

Have a great weekend!

Rob Minton

My 9 Year Old Daughters First "Real" Investment

Over the holidays, I played Robert Kiyosaki's "Cashflow" game with my 9 year old daughter. It's a great game and I highly recommend it. The game teaches kids the importance of passive income. To win the game, you must create more passive income than you make from your job.

I'm happy to report that she beat me! 

This was a big break through because I was able to see that she really understood the importance of investing. I decided that it was probably time for her to play the Cashflow game in real life. Here were the challenges we faced with this big step:

1. She doesn't have a credit score and cannot qualify for a loan.

2. She only works part-time and doesn't make very much money.

3. She only had $5,000 to invest.

Actually, she works for me. I use her in marketing and pay her accordingly. She has decided (didn't really have a choice) to contribute 100% of her earnings into a Self Directed Roth IRA. Over the last two or three years, she has accumulated $5,000 in this Self Directed IRA.

What could she possibly invest in with these challenges that would create monthly positive cash-flow? I'm glad you asked. Here is a picture of her 1st investment:

We just finished processing the paperwork with the IRA company to buy this mobile home. Our plan is to sell this mobile home to a buyer with financing. We will offer this mobile home for sale at $9,975. The buyer, if approved, will pay a small down payment and then will make monthly payments until the loan is paid in full. We will charge interest on the loan, which will create additional income. We estimate that this investment will generate a monthly cash-flow of $250 for 4 years.

When we went to walk through this investment opportunity, she was really excited. She asked a lot of questions. We brought a calculator and ran several different "What If" scenarios. We finally locked on to the numbers I shared above. She totaled these numbers on the calculator and then asked:

Can I buy another one?

This was music to my ears! Another investor in the family!!!

I explained that we can save up again inside her IRA and maybe buy another mobile home when she has accumulated enough money. We still have a long way to go with this first investment, but I'm very excited in what we have accomplished so far. She has learned:

1) How important it is to save.

2) How to generate monthly income as an investor.

3) That she must know what she will get back before she invests any of her money. This lesson was taught through the "What If" scenarios.

4) How to leverage one investment into additional investments. I think she learned to use the income generated from this investment to save for future investments.

On a big picture, these lessons are more valuable to her than any profit made on the actual investment. I don't think she would have learned any of this in school. It's sad, but true.
If you're a parent, you cannot rely on someone else to teach your children how to invest and manage their money. Their future financial well being is in your hands. Don't take this responsibility lightly.

Earlier in the year, I gave a presentation about teaching children to become financially independent. The presentation was recorded. The recording quality wasn't the best, but the content delivered was very good. You can watch this video for free right now at:

What I'm trying to teach my kids about money

If you would like to learn how to invest in mobile homes like we did with this investment, you should consider applying for membership in Income for Life. As a new member you'll receive a special guide on how to create monthly income through mobile home investments. You'll also have access to different mobile home investment opportunities.

Rob Minton