Welcome back. You will know How To Invest In Alternative Investments insurance? Now this lesson is different from most of the other episodes. insurance. Today I’m going to answer your question about how to invest in alternative assets? Now, what are alternative assets? Well, they could be gold, they could be bitcoins, they could be precious metal, they actually could even be real estate. Most people think of gold and silver, they think of precious stones and of course, nowadays they’re thinking a lot about bitcoin so, there’s just a lot of ways to make money so we should all be grateful that we’re living in a place where there’s plenty of alternatives. Now the alternative investments require some skill. You need to understand what those investments are all about.
Some about Alternative Investments insurance
You don’t want to just buy them and hope and pray that they’re going to go up so you’ll have to study those and you’ll have to spend a little time understanding each of those markets. Now, I’m not qualified to talk about bitcoins or precious gems, or even the gold market. I’m not qualified because I picked a different alternative investment which I’ll tell you about as we go along. Now the Wall Street firms have instruction on that, brokerage companies have instruction on all that. You need to learn and spend some time doing that. All right if you want to make profits in the future, I see some of them that do very, very well but I don’t know enough to tell you about which ones are the best and which ones aren’t so hot. So, I picked a business that I knew always worked and I just copycatted the insurance companies and the conservative investors, and what did they do?
Many of them bought real estate where there was a commercial building or an apartment property and then they held it, they kept making the payments on it and they slowly increased the rent and as they increased the rent, they increased the value. So, I always thought that was a pretty good business, okay? It took time, it certainly wasn’t a get-rich-quick, it wasn’t a sprint, it was really a marathon but the challenge is that you have to wait a long time to make your money.
All right you always can’t do it in your hometown, you’re going to have to do it in many different areas. So, if you’re going to do real estate in different communities, somehow, you’re going to have to manage it, especially if you’re holding it long-term. Now if you’re buying it and selling it quickly, that’s a different ballgame. You don’t need a lot of employees but you do need a lot of employees if you had 30 major buildings in 30 major cities. Now, what are you going to do? Well now you’ve got people traveling, you’re paying airfares, you’re paying car rentals, you’re paying hotel rooms for them to stay in. And so before you know it you’ve got a large group of people all working in different states and commuting back to the home office to give reports and whatever or you can do a lot of that online today but the problem is you’ve got a lot of people that are collecting payroll. All right now the government has a whole bunch of requirements if you’re going to do that.
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They have requirements on how you’re going to take care of those people, what’s the pension plan going to be? What’s the health plan going to be? What’s the vacation plan going to be? I mean they everybody has to be treated equally so you got the point that’s going to require management for managers. All right so now all along the way what you’re trying to do is you’re trying to have an investment, maybe it’s an alternative one because you don’t want all that management, all right, so will precious stones do that? Will gold do that? Will bitcoin do that? I think so, those are good alternatives.
I don’t know enough to say which one’s the best so I picked one that was different and what was that? The alternative was to do defaulted real estate. By that, I mean tax-defaulted properties or tax lien certificates. It was a good business, had been around for 200 years, all I needed was skill, I need very little money to start this business. I did not need hundreds of employees. Now the hundreds of employees, that doesn’t mean they’re bad people, it just means those are going to contribute to your overhead. You’re gone have to have a building to house them in, you’re gone have to have communication, you’re gone have to have massive airfares and rental cars and the rest of it. It’s an expensive business. All right if you’re holding on for a long term, I think that’s a good idea but you might have to wait 20 years before you get your money. Most investors don’t want to wait all that time. So, let me show you a perfect business for entrepreneurs.
Get profit from Alternative Investments insurance
So, in the next few minutes, I’ll show you how with a little money you can make a lot of money as a solo entrepreneur. Does that mean I’m against any of these alternatives? I’m not against them. I just found one that was good for me and I didn’t need a lot of employees. Is that important? To me, that was important because I grew all the way to having 200 employees but there were only one or two rainmakers. So, 200 employees are going to take a lot of the money away that the rainmaker makes and so you’ve got to really think about that. All right so let’s learn about the skills. I’ll kind of show you some demonstrations as we go along. Everything we’re going to do is going to be honorable, it’s going to be ethical, it’s going to be to not only your advantage but to the advantage of in this case the county or the buyer from you. Everybody’s going to benefit from the business that I’m into. So, I know where you are right now. Where you are right now is you want to make money, you want to make money quickly so you don’t know what you don’t know. So, who’s an expert and is going to teach you? Well first of all you better make sure you get an expert.
Now there’s a joke that says an expert is an ordinary man in a strange town. All right so that’s it happens to a lot of people. Someone comes from a different city and they’re saying something in a different way, suddenly they’re an expert. I think you’re going to have to go in a little bit more depth than that because your money is hard to get and when you get it, you don’t want to lose it so if you have ever been in a situation whether it was in a social situation or in the office and two people start talking and then pretty quick they get emotional about it and the next thing you know they’re giving their opinions on things they don’t even know about and they have no expertise. Well, you know that conversation isn’t going to end well. They might not even have a continued relationship because people get so mad because they talk about what they don’t know.
So, you’re in a situation, you don’t know what you don’t know so you’re gone have to learn it. It doesn’t matter whether it’s the alternative investment that I like or the one that you’re going to pick doing it somewhere else, okay? So, some people, think their opinions are always right so I don’t know whether they’re right or wrong but I’m not going to argue with someone about different investments that I don’t know about. All right so who is giving you the advice? You need to think about first of all doing an alternative investment but you think about doing things differently and you better pick who you’re going to choose from. All right successful people always leave a trail. In other words, the footsteps in the sand that you’re seeing, if you follow them, they’ll take you to wherever the people are going. So, if someone’s successful, you need to learn to follow in their footsteps. All right so you want to get involved with successful people, people that can show your track records. All right are these people all extraordinary?
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No, but if they know how to make money, just use that one quality and follow that. You don’t have to take on their lifestyles or any other thing. All right so this is an investment that always works. It’s been around for 200 years so that’s what drew me to it and I found out I could start very small and I could grow quickly. You can do the exact same thing Why? Because real estate generally keeps up with inflation. When it keeps having inflation, it’s going to rise. All right if you don’t have to wait 20 years and you could buy it today for a very good price and then you could sell it tomorrow and make a profit, well that’s my kind of business. Now you know what you’re doing so I’m going to warn you in advance, this is not a sprint, it’s going to be a marathon so you’re going to have to think that way.
You’re not going to get all this done in a day and a half no matter what late-night television tells you or what they tell you going to a hotel seminar, it’s not going to happen quickly. This is going to take time, you’re going to have to learn it, you’re going to have to pay attention but once you do it, it’s a cookie-cutter. You can do it again, you can do it again, so kind of rinse and repeat, rinse and repeat. So, 30 years ago I discovered that I didn’t want to just do things with a computer, I wanted to do things that I could put my hands on and I wanted to be able to not have a big management team. So, I figured out it wasn’t going to get rich quick, it was going to be a marathon and that’s what I’m going to show you now.
Life make simple by Alternative Investments insurance
Now this is very simple and I’ll explain it very simply but you’ve got to understand what I’m trying to do is I’m trying to buy rock bottom prices at the county auction. They’re going to sell for 10 and 20 cents on the dollar, then what I simply want to do is everybody says sell it for retail. Well no, I’m not going to do that, I’m going to sell it for less than that. Why? Because I’m going to buy it low, I’m going to sell it low because I want it all to happen fast. I don’t want to get out and compete with all the brokerage community, I don’t want to spend months doing newspaper ads, I want to buy it low and I want to sell it low. So, a perfect example of that would be here’s a valuable house at an auction. All right now this one’s a little on the clean side. They’re usually a little bit more used and abused. In other words, the lawn isn’t going to be cut like this, the shrubs are not going to be so good, the paint might not be so good but basically, it’ll have a starting bid of only 10 cents on the dollar. So, look at the value, look at the starting bid.
Well, what if I paid 50,000 for that? Well, you’d say whoa, 50,000. Well, I’m still only paying 25 cents on the value, what if I sold it for 80? Well, look at my profit on the bottom line. So, I put up 50 and now I make a quick $30,000. What if I could do that in 90 or 120 days? What if I could do that three or four times a year? What if I could do it 10 times a year? The idea is there are 3,000 counties, there are 1,400 municipalities, look at all those little lines those are all different counties. Okay, the property owners are failing in all those counties to pay taxes. Those are probably going to come up for sale, you could buy them. So, what did the legislature say? The legislature said look, you have to pay taxes. If you don’t pay taxes, we’re going to call the supervisors, the county commissioners, and the treasurer is going to levy the tax then they’re going to try and collect it.
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If you don’t pay it, they’re going to confiscate your property so I’m just buying confiscated property. I’m just going to help the treasurer, I’m going to buy that confiscated property for 10, 20, 30 cents on the dollar. Okay, I’m going to buy it at the auction. Why doesn’t the county keep it? They don’t want the property. They’ve already got all the office buildings, they want the schools, the roads so they’re just going to get rid of it. They just want the tax money so the tax-defaulted property is probably the best deal on the street. So, it’s an alternative investment, that’s what we’re talking about. All right now the county took that money, what did they do with it?
They paid the police, they paid the fire department, pay for the school teachers, they build the roads, you get the idea. So, when you see a tax-defaulted auction, they’re selling properties at 60, 70, 80% discounts. There are 3,000 of those auctions every year, actually, it turns out there are 5,000 of those auctions every year but what about this house? I don’t know what you’re going to have to pay for but it doesn’t matter what you’re going to pay if you can get a 60 or 70 or 80% discount because could you sell it quickly and do something. Well, let’s go back to my original example. 200,000dollar house paid 20,000, the county pays their bills. If I could buy it for 50, all right, now if I can sell it for 80, I’m in great check. Now maybe you’re going to sell for a hundred, maybe you’ll sell for more than that.
Process of Alternative Investments insurance
The point is I just want to show you I want to buy it low, sell it low and go do it again. Why do I want to go do it again? Because there are 5,000 auctions. The next one might be better. Now all the auctions are going to be public, which means it’s going to be a public auction in an open room or the courthouse steps where anybody can show up, anybody can qualify for the auction. They don’t know whether you got money or not now. Of course, they’re going to find out if you got money when you go to buy and you better have money. So, what do I do? I buy at what I call my Walmart strategy.
I want to buy it low and, I want to sell it low. Now the best stores in your county are going to be Walmart, Target, and Costco if you want a great deal. What do those stores do? They all have the same strategy however they’re all doing the same thing, buy low, sell low. All right if you can just copy that which is all I did. I just said if they can buy it low and I can sell it low, I can move it quickly. There’s a big market if I’ll sell quickly. All right there’s a smaller market than the real estate people are working in. What are they doing? They’re trying to get retail and sometimes 10 percent above retail. I’m going to be way under the retail.
Alternative Investments insurances example
I’m going to buy it low, maybe 30 cents on the dollar, maybe I sell it for 50 cents on the dollar, that’s going to work because I’m going to make a profit. 25,000, 50,000, that’s good enough for me because I can do it whenever I want to do it. So, buy low, sell low, let the other guy have a little profit when he starts out. Will your property sell quickly? Yes, because there’s a lot of people looking for a bargain. So, at ten cents on the dollar, I’m getting properties at great prices. If I sell it for 20, 30, or 40 cents on the dollar, I’m selling it at a great price and I made a profit. The idea is to make a profit on the margin between the two. All right now the problem isn’t a problem.
It’s really just you getting used to a different strategy. So, who’s going to buy these? Well, I can tell you who’s going to buy them. They’re people that have credit challenges. About 25% of the market is completely rejected by the banks. They got poor fico scores, which means the banks will not finance them. What does that mean? The banks just refused them because their fico score is down around 500. You want people with six or seven hundred fico scores. A lot of these people have difficult parts of their life. They have had a few curveballs. They’ve been sick, all right, they got a divorce, they went through bankruptcy but if they got a good job, can pay you, what you really care about is the down payment, number one, and number two, you care about those installment payments. Now I didn’t say sell them the property and give them the title,
I said sell them the property and give them a contract. That way you haven’t given them the title and if they don’t pay you, just take the profit back. Now, these people have been rejected so what do they want? They want a roof over their head. Will they sometimes accept a property that’s not pristine and in the country club? Absolutely. What have they been through? They’ve been through bankruptcy, they’ve been through sickness, they’ve been through a divorce. They’ve got to get started again. They don’t want to rent; they want to buy a house and start over again. The seller gets to enjoy a nice profit on the sale and a nice profit on the installment. All right so here’s a good example you go back and look at it later but basically, we’re going to start off this assessed value of 200,000. So, we’re not going to sell it for that.
Result of Alternative Investments insurance
Find out we bought this property for $40,000. All right so that was 20 percent of the value. All right now let’s get it sold. So, we don’t have to sell it for retail but we could sell it for 140,000, which would be 30 percent under retail. We could sell it and get a 10,000 dollar down payment and what if we got 1,200 dollars or a thousand dollars a month, whatever? All right we can do an installment sale. It looks like this in a simple form. The value is 200, we sold it under the market, we do an installment sale, get money down, and get monthly payments. Well folks those monthly payments are going to add up. 1,200dollars every single month is going to turn out to be a lot of money.
1,200 dollars is going to be close to 14,000 at the end of the year, multiply that by 10 years, you’re going to get 140,000 on a $40,000 investment. Folks, I’m running out of time so below me is a free video and you’ll learn- if you follow along here for another minute or two, the two biggest mistakes and you’re going to play those. Now I want to tell you two mistakes. The big mistake people make at the auction is one, they buy property they haven’t seen. Don’t do it. You wouldn’t marry the woman if you hadn’t seen her. Why? Well you can figure that one out but I’ll tell you with real estate, what if it’s next to a chicken farm, that’s not going to smell very good? What if it’s got had a fire?
What if there’s been a windstorm and damage it? So, you don’t want to get one of these properties that you haven’t looked at. Number two, don’t buy any property at the auction unless you have already figured out what you’re going to sell it for. You don’t want to get an auction start bidding and bidding and then win and then I’ve spent too much money so you don’t want to do that. So right below me, there’s a free gift for you. Take advantage of it right now, the free gift is below me.