Integrated Financial Planning?

Hi all,
I’m meeting with a financial planner at the end of next week. I’m told that he takes a “holistic” approach in his advisory. I’m also told he is not a “product guy”, meaning he isn’t simply pushing a mutual fund company or such. However, he is attached to a broker/dealer. If I decide to do business with him, he will charge a flat fee for the year and likely be compensated if we invest through that broker/dealer. We’ll be talking about goals, legal structures, tax implications, insurance etc. He works in conjunction with and was referred to me by my CPA. I’m curious about what experiences people on this board have had when using the services of an individual like this. What questions should I ask or what problems might I encounter? I value the expertise on this board and would like opinions/input. Thanks.


When I sold my engineering business at the end of 2005 I interviewed 4 financial planners on what to do with over 7 figures in cash that was coming my way. They all said approximately the same thing: a well diversified portfolio of stock and bond funds. They all charged around the same; about 1.5% of the portfolio value PER YEAR. If I had listened to them I would have lost over $2M in the crash. They would have lost nothing.

I would be VERY VERY careful in selecting a planner and even more careful in following any advice they may offer.

I agree 100%

HOLISTIC is a bullsh-- sales tool term…It’s a SOFT SELL…It’s slick…He plays it like it’s something DIFFERENT, low key…It isn’t…The game is the same…His COMMERCIAL is different!!!

How would this guy get the type of returns you’re getting from your REI??? I’d SHOW HIM what you’ve already accomplished with YOUR investing and ask him how he plans on BEATING those returns???

Here’s a hint…


After you lay out what YOU’VE DONE with your money…just SIT THERE, don’t say another WORD.

In my experience these guys are like PSYCHICS…They LISTEN to your concerns and then build their PITCH around YOUR provided concerns.

I like BLUEMOON’s interview of a financial advisor while on a plane…


He had NO answer for that question.

Remember this…

REAL ESTATE right now is at levels not seen in DECADES…Put your money in what you UNDERSTAND…If you need some diversity…Look for some dividend paying BORING stocks in industries that are steady regardless of the economy. Buy a few in different industries and collect the dividends.

But remember this…

If you have $1,000,000 to invest…Would you rather put that money into 10 mutual funds, or 10 bond funds, or 10 stocks and HOPE your timing is good???

Or…Could you rest EASIER, get BETTER Returns, and have INSURANCE in the event of losses by simply buying 10 properties with that money at prices YOU KNOW are CHEAP…Instead of prices you HOPE are cheap!!!


LEGENDARY STOCK TRADER Jimmy Rogers said this…

DIVERSIFICATION is for people that don’t know what they’re doing. Bill Gates wasn’t diversified, Steve Jobs wasn’t diversified, Henry Ford wasn’t diversified…They INVESTED the vast majority of their wealth in what they UNDERSTOOD…Diversification is a WALL ST. Term used to SCARE people that don’t know what they’re doing.

Donald Trump HATES stocks…He has the bulk of his personal fortune in REAL ESTATE because he UNDERSTANDS IT.

Even if one of your buildings BURNS TO THE GROUND…Your DIRT still has value.
Ask all the ENRON investors how much THEIR DIRT was worth…And NONE of them had a homeowners policy that would REBUILD their investments after the disaster.

HOLISTIC is a bullshit sales tool term.....

Straight Shooting FDJAKE!!!



I’ll give you a much BETTER alternative to the stock market.

I will assume you have at LEAST a mid 6 figure amount you were planning on investing. If you DON’T have that much then FORGET the stock market completely and just keep buying and selling real estate.

But…I’ll assume you have well OVER $750K to invest.

With a million dollars in Cash (or close to it) Your problem CHANGES from having TOO MANY deals and not enough CASH, to having EXCESS CASH and not enough deals to put it all to work.

So…Instead of handing that money, and more importantly that CONTROL over to someone you meet with for a hour…You do what you KNOW.


This is a BEAUTIFUL BUSINESS…Here’s how it works.

You have your attorney draw up agreements for each deal/project…They include an UPFRONT FEE from the person you loan the money to…Say 7%…So at the CLOSING you RECEIVE $7000 from your borrower for MAKING THE LOAN (on a $100,000 loan)…You are in the 1st position on the deed (just like a bank), you include dates for completion of certain phases of the project…Once a phase is completed the builder/borrower can take a draw of money loaned based on pre-determined phased increments. You not only fund the purchase but the rehab too…The MORE they borrow, the MORE you make. These are SHORT TERM loans, because the builder never occupies the property, he doesn’t have the rights that people do when they LIVE in a home with a private mortgage.
If your builder/borrower MISSES these deadlines…HE’s DONE…Unless YOU decide to give him a break due to something unforseen…But he should know going in that this isn’t a freakin game and YOU WILL walk away with his money, his deal, and his profit if he even THINKS he’s going to play games with you. The agreement also contains a PROFIT SHARING CLAUSE on the back end for you.

Here’s the bottom line…Once word gets out that you are looking to LOAN MONEY to builders that have rehab properties…The DEALS will find YOU…You know enough about this business where you can look at a deal, know right away if there’s a profit to be made there and decide if you want to OWN IT for a very short period of time while SOMEONE ELSE does all the ball breaking rehab work. Check out the builders estimates, his subs, and his reputation…The KEY here…Is to PROTECT yourself by retaining 1st position ownership rights. Make sure you’re leaving money on the table for the builder, because if he makes money…HE’LL COME BACK TO YOU AGAIN!!!
Basically…It’s No DIFFERENT than what YOU DO on every rehab project. You make sure the NUMBERS WORK!!!

Why would a BUILDER do a deal like this???

Because DEALS come in GROUPS…He might have HIS MONEY tied up in numerous projects and doesn’t want to LOSE this one because he’s stretched too thin…So he does the deal with you, he puts up just $7000 of HIS MONEY (which earns you an IMMEDIATE 7% return) and you both split the back end of the deal along with INTEREST payments made to you on the draws. He makes money on the back end (with very little of his money laid out) …It’s GREAT for him…and YOU made a sweet return on SECURED MONEY and the entire TURN took maybe 6 months.

As for the draws…You handle them just like a bank does with a construction loan…Your borrower calls you when a certain phase of the project is complete…You go out to the site and check to make sure it is complete, then you release funds for that phase. I also keep in contact with suppliers to make sure they are receiving payments for materials. These are the same suppliers I use on my projects so it’s very easy to do.

I do a LOT of these deals…I do them with contractors I’ve known for YEARS. They make money and I make money…All from DEALS I would have never known about!!!

This is done everyday. And guess WHO’s doing a TON of these loans???


Those dirt bags make SURE these deals are LOCKED DOWN so they can’t get screwed.

Screw the stock market man…THIS is filling a niche the BANKS have RUN AWAY FROM!!!

And the risk/reward ratio is UNBEATABLE!!! You can EASILY earn 20% on your money with almost TOTAL control and very limited risk.

I just got finished with the meeting. It went exactly as you predicted!! It was a smooth soft sell!!! Thanks for taking the time to answer my question so thoroughly! I’ll PM you with the details. Thanks again,