Boy, do I feel stupid...

I woke up a little earlier than usual this morning due to a big thunderstorm. As I was flipping through the channels, I saw an infomercial for John Alexander’s 14 days to riches course.

It looks so good: sitting on a yacht; riding in a limo; living in a mansion; getting in a Learjet. That must be the life, absolutely nothing to do in the morning but trying to decide whether to spend the day on your yacht or fly in your jet to Paris for lunch.

I’ve been working for a little over 2 years and am still not rich! Now, to find out that I could have ordered a $39 course and been rich in only 2 weeks - well it makes me feel a little stupid! One of his students said that it was so easy that it made him feel guilty. Another earned over $100K CASH in a very short period of time PART TIME. Very little work - get rich in 14 days - WHY DIDN’T I THINK OF THAT??? Sign me up John!


Hey mike can I get the number for that place? I have my credit card ready.

yeah, if its so easy then why is the guy spending his time on his marketing scheme instead of trying to conquer earth with his program? Sure he has the learjet, but has he bought an island yet, no instead he’s pushin his program. HMMM!

Gotta question for you pros. How are you getting into all those houses without jammin up your credit? I don’t get it. Do you have big salaries or sth? Don’t the banks think you’re a little risky?

Gotta question for you pros. How are you getting into all those houses without jammin up your credit? I don't get it. Do you have big salaries or sth?

Salary? I haven’t had a job in 15 years. As you buy each property, your income should go UP and therefore you should be able to borrow more. However, that’s just my opinion (which may be suspect because I haven’t taken the 14 days to riches course yet). Anyway, why worry about getting loans when you can get rich in 2 weeks with John’s course. I wonder if I will have to work hard for that 2 weeks? Does anyone have a beautiful yacht for sale? I’ll be able to pay cash in two weeks.


If a 17 Coleman Canoe qualifies I am there!LOL


roll 'em off to LLCs to free up your personal credit. as long as your ratios and scores are good, credit is not a problem.

See Propertymanager here is something we agree on!

I think they should change that to 14 years to richies!!

You should be able to buy at least the leer jet or the yacht after 14 years…

I been invest over 2 years, I am not rich yet. but my networth diid went up almost 500k. It that good enought? I had nerver bought any real estate courses. Did read a few good books. You got to love this business. I still got a lots to learn. That is why I am here.


am i right in assuming then that banks are gonna trust a business more than an individual and that’s why LLC’s work best? Also, here’s a huge question I have. I actually have money that could pay off a house completely. I understand that you give up the tax bennies doing, its not diversified, etc. But this whole talk about cash flows. It seems to me that whether a house generates cash flow is the basis upon which you decide whether to buy it or not, BUT, CF is determined by how much $$$ you plop down? How do you decide whether to plop down a little money or a lot? The less you plop down the less CF, the more you plop down the more CF…


crap, 7 years of college and 10 years of workin’ for da Man and I’m still not rich.

I could have had it all in two weeks for $39. Do I have to pay shipping also? ;D


You need to calculate your annual ROIC. If you put $100k down get $200/mo that’s a bad investment. You’re at a whopping 2.4% ROIC. Now if you put $10k down to earn $200/mo you’re at 24% ROIC. (I’m keeping the math simple and not discounting monthly cash flows.)

They key is to look at your montly cash flow, sum it up to a year, then divide by how much capital you have invested. That’s your ROIC.

Now, if you want to talk calculations longer than a year, then you should start discounting future cash flows for inflation. I’d still stick with calculated on a yearly basis though. It’s no going to be that different from a monthly calculation and it’ll save you a lot of time.

by definintion, your return on incremental increase of the downpayment is the interest rate of the mortgage. In simple terms, you get the money would have paid to the bank in interest

some of these guys are rich because they sell all there courses


First, LLC. Banks don’t “trust” anybody. This is a business decision. If the property underlying the mortgage generates sufficient cash flow to support the mortgage, then they can make the loan. Having an individual of sufficient net worth or cashflow to personally guarantee the loan is even better for them.

For you, having the LLC is an asset protection decision. If the bank will finance directly to the LLC, then it has the additional benefit of getting the mortgage off of your personal credit file.

So, if you can give them what they need with same or lower risk, and you can gain from having more personal credit available, that sounds like a win/win.

Second, payoff. Why not use that cash as down payments on a few more properties that will each generate positive cashflow and increase your net worth? That’s called “leverage”.

Would you buy your own home in the LLC or does it really matter? Seems like it wouldn’t matter unless you wanted to build up your personal credit history.

Also, are there ways to dodge PMI with “very little down”, i.e. less than 20% on a house that you’ll rent out? Also taxes take a chunk out of cash flow. Any trick there like searching for certain zones etc.?

thanks for the patience…


how you buy it does not matter too much; how you hold title after you close is different question. Using an LLC has some advanatages in the area of asset protect. There are other technqiues like family limited partnerships and title holding trust that can also be used.

as for PMI, just a 80% first note and the balance (say 15%) ins 2nd note. However, expect to pay at least 8-9% (or more) in terest rate on the 2nd. PMI is an outdated concept (IMHO); just avoid it as its a pain to get rid of (a whole another discussion).

as for taxes, some areas have multiple layers of taxes with separate county and city taxes. The same house just outisde the city limits might have a lower tax bill, but pull in the same rent. Be careful, but it my also mean you are in a different scholl district; less of an issue for rentals, but many home buyers care about this. Its hard to quantify how much the impact might be, but selling a home is a beauty contest. If you home is the same price/grade, etc as some home 2 miles way in a better school distrcit, it will look less desireable to some buyers. the message is even with rentals, think out about the exit strategy! as well as day to day cash flow.

You should NOT buy your personal residence in an LLC. Buying your personal residence in an LLC voids your Capital Gains exemption for the sale of your personal residence.


in many cases, a LLC is a disregarded tax entity. This does not change its standing as holder of the title to a property

I’ve been overseas for awhile and will move back this summer. I have free housing for one year through work, however am thinking of buying a home anyway this summer so I have a place in one year. I may also rent it out for the year while i’m living in the sponsored housing deal. I’m planning on doing FHA route as I’m a first time homebuyer. You guys are the pros so do you see any flaws in my plan. It’s financial war out there. Part of my logic to buy now is that rates are rising and in this particular market 8-10% prop apprec. is forecasted as well. I can also afford to not even have a renter if I choose but will probably take the risk, put it under management, be conservative since i’m getting started etc. Gotta cut my teeth somewhere. Any problems you guys see with this plan?

AAK said:

in many cases, a LLC is a disregarded tax entity. This does not change its standing as holder of the title to a property

If your’re saying that a LLC is usually a pass-through entity for tax purposes, that is correct. However, if you take title to your personal residence in an LLC, you lose your capital gains exemption when you sell the house. Therefore, never take title to your personal residence in a LLC.