Posted by: Dexter and Pamela Montgomery | April 23, 2013

New Website for The Book On Investing and The Savvy Investor Program™

Thank you for following our blog posts on this website.  We have created a new and improved website to serve you better.  Join us today at The Book On Investing for the latest information on The Savvy Investor Program™ !!   

Let us know what you think about the new website: The  Book On Investing

You can contact us dexter@thebookoninvesting.com.

One of my wealthy business coaches taught me a four part formula for creating generational wealth. He said first, you need to build a business. Second, reinvest in your business. Third, invest in real estate. Fourth, buy luxuries.

The fourth part in the formula is what I am writing about today… using your real estate investments to buy your luxuries. Luxuries or “toys,” include cars, boats, trips or any non-asset that costs a considerable amount of money. I emphasize non-asset because if it’s not making you money, it is a non-asset.

Did you know that the average term of a new car note stretches out more than five years to 65 months? This is the longest average term ever reported. Seventeen percent of all new car loans in the fourth quarter of 2012 were actually between 73 and 84 months, and some notes stretched as long as 97 months. Just four years ago, only 11 percent of loans were in the 73-to-84 month category. Experts warned that long term car loans seriously present a heightened risk for consumers because it takes so long for consumers to reach a point where they owe less on the car than it is worth. Although “underwater” cars are pretty common and generally do not come with the emotional issues that underwater houses do, they still are extremely hard to trade or sell when you can no longer afford the payments.

Today, most mid-size sedans cost in the range of $20,000 to $30,000. The higher end luxury cars cost $40,000 and up to $80,000 or more. Now I know that there is nothing like driving a brand new car. The automobile is embedded into the American culture. Like most men my age, I like high end luxury sports automobiles. However, using the formula taught to me by my coach, I have learned to use my assets to purchase the “toys” that I want.

Instead of paying cash or financing a car like most people, just imagine taking your money and buying a house or commercial property either with cash or using the money as a down payment. You can then rent the house or lease the property and use the positive cash flow from the rent to finance your dream car. This way, you use the asset to pay for your “toy” while preserving your capital in the property. In addition, you get all the benefits of depreciation, appreciation, and tax savings on your real estate investment.

This is how wealthy people create and maintain wealth while living a life filled with luxurious “toys.” You too can let your business or your asset pay for your “toys”.

Conclusion
In The Savvy Investor Program™ we teach you how to create your own economy. We help you get off the treadmill. Remember that with real estate investing as one part of your financial plan, you can create the life of your dreams by following a few time-proven strategies and techniques. Today, buy your copy of The Book on Investing.

Share this post and link with your friends so that they can buy a copy of the book also. Let us know about other topics that you would like for us to discuss.

Posted by: Dexter and Pamela Montgomery | April 2, 2013

From Coffee Cans and Mattresses to 401Ks: Where Do You Stash your Cash?

Where do you stash your cash? Are you one of the millions of Americans who is giving your hard earned money over to money managers charging exorbitant fees to invest in the stock market? Or, are you blindly pouring money into your 401K plan hoping that it keeps going up? Do you know what you are getting as a return on investment on your cash? Well, a recent article in CNN Money (http://economy.money.cnn.com/2013/03/22/american-householdwealth/) suggests that people are getting poorer while the investment companies and money managers who direct your 401K accounts are getting richer investing your money.

According to the article, which was based on recently released Census Bureau statistics, the median net worth of American households was $68,828 in 2011, down from $81,821 in 2000 (adjusting for inflation). Overall, median household net worth fell by $12,993, or 16 percent, between 2000 and 2011. Median household net worth showed no statistically significant change between 2010 and 2011.That means no growth for you.

The Census Bureau report also indicated that Americans are pouring money into retirement investment vehicles such as 401Ks in record amounts. In 2000, 30 percent of all wealth was held in the form of home equity. By 2011, this percentage had declined to 25 percent. At the same time, the share of wealth held in retirement accounts increased from 18 percent to 30 percent over the same period.

What does all of this mean? It means that the lack of financial education is costing you dearly. Are you like so many other Americans throwing all of their money into retirement accounts hoping that when you retire there will be enough there to cover your expenses? Meanwhile, the profits of the companies that you invest in are relativity flat. This sounds more like gambling than investing. It also means that we are way too dependent on the advice of others when it comes to our money. We need to take charge and learn how to manage our own financial destiny by investing in ourselves with good education and trusted investment coaches and mentors. We need to diversify our investments and know more about using self-directed IRA’s to invest in real estate, cash flowing entities, and financial instruments such as notes and liens.

Conclusion
In The Savvy Investor Program™, we teach you how to create your own economy. We help you get off the treadmill. Remember that with real estate investing as one part of your financial plan, you can create the life of your dreams by following a few time-proven strategies and techniques. Today, buy your copy of The Book on Investing.

Share this post and link with your friends so that they can buy a copy of the book also. Let us know about other topics that you would like for us to discuss.

Posted by: Dexter and Pamela Montgomery | March 20, 2013

Real Estate Investing for The Savvy Investor™

Knowing Your Numbers – The Rule Of 72

Do you know your numbers? If you plan to do any type of investing you must know your numbers. Your numbers tells the story of (1) where you have been; (2) where you are; and (3) where you are going. Your numbers represent the scorecard of how well you are doing with your investment. In real estate investing, knowing your numbers can mean the difference between profit and loss.

One of the most important numerical concepts for any investor is the Rule of 72. The Rule of 72 is a simple way to determine how long it will take for an an investment to double in value, given a fixed annual rate of interest. It is useful when trying to determine how hard your money has to work in order to duplicate itself.

No one really knows how this rule developed but historians say that the oldest known reference to it is in the “Summa de Arithmetica” by Luca Pacioli dated to 1494 AD. The formula for the Rule of 72 works like this, take the rate of growth and divide it as a whole number into the number 72.

For example, you purchase a piece of property for $50,000 in an area where the property value has grown for 4% annually. If this growth rate continues, it would take 18 years for that property to double in value (72/4=18).

This is important information for real estate investors because you want to invest in an area that you know will have a reasonable appreciation or growth rate. This will help you minimize your risk and maximize your return.

Conclusion
You have a choice to make. Do you stay on the treadmill of life hoping for wages to increase or by finding another job? Or, do you decide to take the steps to make life better for you and your family and never look back?

In The Savvy Investor Program™, we teach you how to create your own economy. We help you get off the treadmill. Remember that with real estate investing as one part of your financial plan, you can create the life of your dreams by following a few time-proven strategies and techniques. Today, take the first step in creating the life of your dreams and buy your copy of The Book on Investing.

Share this post with your friends if you think they are interested in creating the life of their of dreams.

Leave a comment and let us know about other topics that you would like for us to discuss.

Posted by: Dexter and Pamela Montgomery | March 11, 2013

Personal Finances: Are You Taking One Step Forward and Two Steps Backward?

Do you feel like you are losing ground financially? Do you feel like you just can’t get ahead? You work hard and try to be wise with your spending and savings, but your standard of living seems to keep going down. You just can’t seem to put your finger (or in this case foot) on the problem. Well, if you are in the middle class there are economic forces working against your interest that are keeping you from living the kind of life that you have worked so hard to build. And the bad news is that it may be getting worse.

You see, the price of everything is going up. We have all seen the increases in the prices of gas, housing, food, health care and the other basics that you need to survive. The prices are increasing faster than wages are growing. A recent story in the news indicates that “America’s median household income has dropped by more than $4,000 since 2000, after adjusting for inflation. The typical trappings of middle-class life are slipping out of financial reach for many families”.

On the other hand (again foot), what’s really interesting in all of this, is that the top 1% earners are getting wealthier. It’s estimated that between 1993 and 2011, the top 1% of America’s earners saw their income soar by 58%, while everyone else only got a 6% bump. This means that the top 1% earners are doing something that middle income earners need to follow just to keep up.

The wealthy follow a simple formula that keeps them in the higher income categories. They understand the value of building businesses, investing in real estate, and in educating themselves through coaching and mentoring.

Conclusion

You have a choice to make. Do you stay on the treadmill of life hoping for wages to increase or by finding another job? Or, do you decide to take the steps to make life better for you and your family to never look back?

In The Savvy Investor Program™, we teach you how to create your own economy. We help you get off the treadmill. Remember that with real estate investing as one part of your financial plan, you can create the life of your dreams by following a few time-proven strategies and techniques. Today, buy your copy of The Book on Investing at: http.//tinyurl.com/TheBookOnInvesting2.

Share this post and link with your friends so that they can buy a copy of the book also.

Let us know about other topics that you would like for us to discuss.

Posted by: Dexter and Pamela Montgomery | March 3, 2013

Real Estate Investing: Knowing Your Numbers

Do you know your numbers? In any real estate investment you must know your numbers. Your numbers tells the story of (1) where you have been; (2) where you are currently; and (3) where you are going. Your numbers represent the scorecard of how well you are doing with your investment. In real estate investing, knowing your numbers can mean the difference between profit and loss.

In real estate investment the key number concepts that you should understand include cash on cash return, cash flow, appreciation, depreciation, tax service and debt service. Having the knowledge of these terms will give The Savvy Investor™ the confidence to know when you are making a good deal. Knowing your numbers helps you minimize your risk and maximize your returns.

Measuring the return on a real estate investment is one of the keys to becoming a successful real estate investor. In this post, we will talk about one of the key measurements in assessing your prospective investment.

Cash On Cash Return

The cash on cash return is the ratio between a property’s cash flow in a particular year (before taxes) and the amount of the initial capital investment. It is expressed as a percentage. The cash on cash return tool is used as a quick read on an income property because it can be easily compared to other types of investments such as stocks. For example, one can easily compare the investment in a rental house that has a 10% cash return in the first year versus a CD or paper instrument that has a 2% cash on cash return during that same year.

How to calculate Cash on Cash Return

The formula calculating for cash on cash return is

    Annual Cash Flow / Cash Invested.

For example, you buy a property for $50,000 in cash. The property can rent for $1,000 per month. So the annual cash flow is $12,000($1,000 X 12 months). You divide the $12,000 in annual cash flow by the $50,000 in cash you invested. The Cash on Cash Return is 24%. Although there are other factors to consider in deciding whether to invest in a particular property (e.g. taxes, debt service, repairs), an analysis of cash on cash return is one extremely help way of assessing the strength of one prospective investment as compared to another.

Conclusion

In The Savvy Investor Program™, we teach you real estate investing concepts that take you from being a novice to being an experienced investor. One key component of your success is to know your numbers. Remember that with real estate investing as one part of your financial plan, you can create the life of your dreams by following a few time-proven strategies and techniques. Today, get your free copy of The Book on Investing at: http://tinyurl.com/TheBookOnInvesting. Share this post and link with your friends so that they can get a free copy of the book also.
Let us know about other topics that you would like for us to discuss.

Posted by: Dexter and Pamela Montgomery | February 18, 2013

Tithe, Save, Invest : Are They Part of Your Formula for Success?

Running a successful business takes massive effort and the right

mindset. We have found that one key part of the proper mindset for

success is establishing a solid financial foundation. We are often

asked, “How do you achieve a solid financial foundation?” It’s

actually very simple. Tithe. Save. Invest. That’s the formula that

has worked for us. Perhaps you might want to try it.

Tithing-

For us, the principle of tithing is based on our Christian faith.

However it is a universal principle no matter your faith. We

believe that you should give God a share of what He has given you.

Tithing is more than just money. It includes your time, your

talents, your gifts and anything else that you have been blessed

with. In my previous blog, “Sometimes it’s not about the Money,” I

mentioned that tithing includes giving of you to make other peoples’

lives better. Tithing allows you to show just how appreciative you

are for the blessings that have been bestowed upon you.

Saving-

The second part of the formula is saving. Saving allows you to put

aside some of the fruits of your labor for when you need it most. It

allows you to accumulate capital and have instant access to these

resources. Savings can help you achieve some of your financial

goals. Whether it’s a comfortable retirement, a down payment for a

house, or a new car, or stereo, you can get there by setting money

aside. And best of all, you can have what you want without getting

bogged down in debt. The unfortunate part of saving is that it does

not allow for much growth. Saving should lead to investing in some

of the instruments or types of property that I mention below.

Investing-

This third principle is based on the fact that you need to invest in

something that will allow you an adequate return on investment

(ROI). Investing means that you believe in a something so much, that

you expect it to pay dividends in the future. Investing can take

many forms. You can invest in paper instruments such as stocks,

bonds or notes. Or like us, you can invest in real property such

as, houses, apartments, commercial buildings, and land. Or you can

invest in businesses. One of the most important investments you can

make is to invest in yourself through education, coaching and

mentoring. The key to successful investing is to know why you are

investing and to understand every aspect of your investment.

Conclusion

To learn more about these principles and for your free copy of our

recent report on how you can develop the mindset and habits needed

to become a successful real estate investor click here:

www.thebookoninvesting.com.

Posted by: Dexter and Pamela Montgomery | February 12, 2013

You Can Get It Done!!

Dexter Montgomery with James Malincheck, host of ABC television network, Secret Millionaire.

Dexter Montgomery with James Malincheck, host of ABC television network, Secret Millionaire.

What’s your motivation? What drives you to get up in the morning

and do what you do? The answer to this question will determine

whether you are focused on your goals or just procrastinating and

putting thing off until the next time.

Many people often ask, how do I find the time to run a business,

invest in real estate, take care of family, write books and blogs,

stay active in my church and civic responsibilities and do all the

other things that I do. I simply tell them that I stay focused on

the task at hand and minimize my distractions.

Have you heard the old cliché, an idle mind is the playground of the

devil? Well, I think that the idle mind keeps us from doing the

things we need to do to live the kind of life we want to live. In

our society, there are so many things that distract us from being

the best that we can be.

You see most successful people value productivity. They like to get

things done. They choose the things that they do well, which make

that thing more pleasurable. They never expect work to be as fun as

say a vacation, but they feel it’s a worthwhile tradeoff. So they

work, not as little as they can, but as much as possible without

hurting their health, relationships or the quality of their work.

They put their heads on their pillows each night feeling good about

themselves that they got something accomplished which will be them

closer to their goals.

Below are five steps to help you turn procrastination into

productivity.

1. Understand why you procrastinate

Procrastination often is a way for you to put off change or the

unknown for a little while longer or to hold back from doing

something that can be scary. I’ve also found that people

procrastinate because they’re not ready to do something. Until

they’re ready, they’ll put off their next steps, whatever those may

be. Understanding the reason behind your procrastination can be the

first step to realizing how to move forward.

2. Know what things are distractions

A recent study found that procrastination is on the rise and it is

making people poorer, fatter and unhappier. Even with the best

intentions, being productive can be challenging. With technology all

around, distractions are often effortless and unnoticeable.

Particularly for those of us who have iPhones, iPads, Droids,

computers, and TV. These distractions can derail all productivity.

Try to avoid distractions by turning off these devices. Also resist

the urge to check Facebook, Tweeter or other social media during

your most productive time.

3. Master Productive Procrastination.

Sometime even with no distractions it’s sometimes difficult to

suddenly stop procrastinating. That’s why you should begin by

listing the tasks you have to do, in order of importance from the

most urgent to the least important. With your tendency to

procrastinate, you’ll avoid items on your list by completing others,

and actually become productive in the process.

4. Manage the Details

When you have managed to complete the smaller, less important tasks

on your “to do” list, facing the bigger, more important projects can

be challenging.

In the Savvy Investor Program™ I often develop a list of five things

clients can do to break past the procrastination. Then we help them

decide on one action for the week from this list of five that they

commit to taking that week.

I believe that by taking larger goals and breaking them down into

smaller steps makes the process more manageable. For example, if you

have a report that’s due, you can break down the project into

smaller pieces: brainstorm topic, create outline, write

introduction, etc. Once you have completed these smaller tasks, you

can commit to one action item to focus on until they’re all complete.

5. Get Coaching

No matter how you plan out the details, sometimes the one thing you

need to be productive is coaching. Coaching helps you to be

accountable. All successful people have coaching as part of their

formula for success. Coaching allows you to create accountability in

a number of ways. It keeps you focused and helps you strategize the

goals that you have set for yourself.

With these five strategies to use, you’ve got all the tools you need

to be productive. So what are you waiting for? Get to work! Join us

at The Book On Investing (http://www.thebookoninvesting.com) to learn more on what you

need to help you create the life of your dreams.

Posted by: Dexter and Pamela Montgomery | February 7, 2013

Real Estate Investing: Are You Achieving Your Business Goals?

Goals are important for every aspect of your life, but they are

especially crucial when it comes to starting your own business.

They will be at the heart of all your plans and instrumental in

making strategic decisions about where and what in which to invest.

Determining your goals at the beginning of the process is

essential. One of the biggest reasons investors fail is that they

don’t have a game plan laid out. Investing based just on how much

you have at hand or in something that just comes up, is the surest

way to lose money rather than make it. Plus, without knowing where

you’re going, you’ll never know whether you are on track or whether

your projects and investments really are in line with your

long-term needs.

Goals are not to be set aside and stored for an end of year review.

We’ve found that the edge you’ll need to succeed comes from

formalizing your goals and tracking your achievements against those

goals on a regular basis. We diligently write ours monthly and

“find ourselves effortlessly achieving them” (to quote our favorite

coach Raymond Aaron, www.theultimateauthorbootcamp.com).


Once you write out your goals, post them somewhere you can see them

on a regular basis to constantly remind you of all you are working

towards. Dexter keeps his goals in his office near the

computer so he can see them daily. If you do the same for both your

business and personal goals, you will see how focusing on those

every day will help you design the life that you want to live.

Conclusion

Now you need to work on establishing your business goals, beginning

with the big picture and working your way backwards. After that,

you need to walk through the actual process of determining exactly

what financial goals will create the lifestyle about which you are

dreaming.

Remember that with real estate investing as one part of your

financial plan, you can create the life of your dreams by following

a few time-proven strategies and techniques. Download your free

article on real estate investing at: http://www.thebookoninvesting.com.

Let us know if you found this post helpful!

Posted by: Dexter and Pamela Montgomery | February 4, 2013

The Time for Investing Is Now!

The HUD score card for December 2012, released in January 2013

shows that mortgage rates continue to be at record lows while

homes remain highly affordable. This information from Freddie Mac

and the National Association of Realtors is good news for

investors.

Now is the time to invest. The more stabilized and encouraging

situation being predicted by both the US Government and the private

sector shows that there will be potential for healthy competition

among real estate investors but, clearly, savvy investors will be

the ones to get a significant part of the pie. They will know how

to analyze each opportunity appropriately and make the best deals

on both ends of the process.

The wave of foreclosures may have ebbed, but there is still a huge

opportunity to buy at rock bottom prices. (We haven’t seen this

sort of chaos in the housing market since the Great Depression.)

Naive investors are running scared. They see lower home values or

slow sales, and they choose to sit on the sidelines and mumble

things like, “I’m playing it safe. I’ll jump in once things have

settled down.” Savvy investors laugh at this “poor man’s mindset.”

Savvy investors realize that they’re not investing in an entire

market, just in one great deal at a time. They know that the best

time to invest is when there is the most opportunity. And clearly,

that time is now. Warren Buffet explained it perfectly, “I will

tell you how to become rich. Close the doors. Be fearful when

others are greedy. Be greedy when others are fearful.”

In today’s market, others are fearful. What will you choose to be?

We recommend you choose to be rich.

Project:

Based on your goals, decide if there is a particular geographical

area you in which you would like to invest first. We found it best

to begin in our own backyard, so to speak. You probably will too,

but do your own research. Learn as much as you can about all types

of real estate investment opportunities and start thinking about

which might hold the most interest for you.

Conclusion

Remember that with real estate investing as one part of your

financial plan, you can create the life of your dreams by following

a few time-proven strategies and techniques. Download a free

article on real estate investing at: www.thebookoninvesting.com

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