Financial Freedom Planner - Part 4

Welcome back to lesson 4 of the Financial Freedom Planner.

Ok, so now we are going to look at the Property pro-investment program. And I want to show you how incredible property is. If you`ve got R1000 and you can invest it.

And can invest in the right property. Like with anything in life, there is a right and a wrong way. If you are going to try to do it the normal way, you are going to ?nd that property is not going to be a great investment.

But if you do it the right way, and you know how to do an analysis and know-how to evaluate each and every property.

You are going to ?nd properties like these, and even better. Simply because you`ve got the tools and the competencies to discover these properties and sometimes a little twist to them.

So if we look at this property for R800K.

And the one thing that I want you to look at is the interest rate option; So I`m going to give you a little tip here.

I`m always working on the 10-year moving averages, simply because by smoothing the averages out. You are going to ?nd that you are going to eliminate a lot of risks.

So the interest rate for the last 11 years has just been over 11% it`s actually 11.3%

I`m going to take it at 11%

When I evaluate this property, you`ll see that there are 27 variables in the Property. Each and every variable can and will have a massive impact on the growth that you are going to get, as well as the risk.

And the risk is the amount of money that you invest per month. Then also of course, what is the growth that you are going to get on that investment?

And property is just the vehicle that we use. It is not the growth of the property that is going to make you rich. It is the growth of your investment in the property that is going to make you rich.

So let me show this to you.

The income per month, you are going to have a negative cash ?ow. It is the same as if you are investing in Unit trusts or endowment policy,

or a pension fund of R957/ month.

And I am always looking at the 5-year IRR which is 120%.

So let's go back to the property itself. I want to show you that the Capital Growth rate on this speci?c property I only took at 9%.

So here we can see something, the capital growth on that property is 9% but because of the competencies that we`ve got and the way that we structure this property.

We say that the growth of our investment in this property is 120%. So do not fall for what other people are telling you, it is location, location, location.

Because there are 27 variables and because we can leverage these variables against each other. Because of that, the property can give you incredible growth on the condition that you can measure it and manage it and take full control over it.

Now, what does this mean...I`m going to compare this quickly so let's call it a normal investment of an R1000 where you can get let's say a 12% over a 5-year term.

So if we invest an R1000 at 12% compounded over 5 years. You are going to ?nd that your future value will be; R82,486.37

That`s basically the equity that you`ll have at that point in time.

However, if you can invest R957, that is the shortfall in the month at 120.33% over 5 years.

You`ll have R3,235,100.97.

That is a massive, massive difference.

But now, let's change 1 of the variables. Let's say that you can get a half percent better than the prime rate.

Remember we are working on a 5,10 & 20-year moving average.

So I`m going to change this to 10.5%

I`m going to press apply, and we can see it's changed.

Now we can see two things have happened. First of all my risk came down, to the amount of money that I spend per month out of my own pocket. Is now R687.04

First of all my risk came down, to the amount of money that I spend per month out of my own pocket. Is now R687.04

And the growth went up to 149%. And this is what I said.. this was the breakthrough that I had in 1987 when I developed this program.

I could literally see, that the more I know and the more competencies I`ve got.

The more skills I`ve got, the more experience I`ve got. The more applied knowledge I`ve got. The lower the risk is going to become. And the lower the risk is going to become, the higher the growth.

And it is the growth of my investment that is going to make me rich. And this is what I wanted to Illustrate by using, an Excel spreadsheet.

So if we go back to this scenario with our investment of R1000 on the same property.

We are going to ?nd that suddenly my investment comes down to R687 / pm and my growth goes up to 149.80% and over 5 years that is R7,188,382.49

Now, what is the risk? You see a lot of people don't understand risk.

Risk is per month to month?

Can I afford this, or can't I afford this?

If I`ve got an R1000, then for that month. And we call this a surplus. That I can go and invest. That is actually not a risk that I take. Because I can do anything with that R1000, I`ll still be able to survive.

So when it is going to count, will be at retirement age in let's say 5 Years time or say 10 years time that I want to retire?

Now by following this strategy, the ?rst one is above 12% that other people will give for me...like the ?nancial institutions

I`m going to have R82,486.37

by doing it myself and by understanding and learning the competencies I`m going to have R7,188,382.49.

So the risk that I`m taking is R7,105,896 when we take it in 5 years' time simply because we did not learn how to become a wealth creator. It is mind-boggling, yet the majority of people will never think of it this way.

And they will never do it, simply because we are so conditioned by the system that this is what we can get.

Now here is a trick that I want to tell you. Because it is possible to get the R7M As we have done it, and literally thousands of my students have done it.

Because that is possible. By not doing this, in 5 years time. Someone is going to make the R7M but it won't be you. If you follow this strategy, where you hand your money over to someone else.

So that money will vaporize, disappear.. unless you take control and apply the formula for Riches to it. And in essence, the shortcut for the Formula for Riches is:

Is it possible?

Can I make it happen? Do I have control over it?

And there are 27 variables that I`ve got full control over it.

And by changing 1 variable by a half percent (0.5%) which is possible through the right negotiations. I`m going to be in a position... perhaps let me do that calculation for you.

I`m going to be in a position that is a half percent (0.5%) over a period of time of 5 years.

Is going to make a difference of R3, 953, 281.52

And this is the reason that I stress that you must have competency.

You must know what it is that you do. And you must follow a system because otherwise, it is simply not possible to measure the results.

In business, when you start a business. It is a lot easier to get a 149% growth, I`ve shown you. You can get millions of % growth, but the moment that you tell this to normal people they are not willing to take the responsibility because they are conditioned.

They will immediately tell you that it can not be done.

Now please be careful, I do not want you to think that I am going to do it for you.

I want you to learn how to do it yourself. Because the moment that you think someone else will help you to achieve that.

You are going to fall short because you are going to break the formula.

And the formula simply says...

Is it possible?

Can I make it happen?

not someone else…and

Do I have full control over it?

In other words, we need to take the responsibility to learn how to do it ourselves.

And by the way...If you`ve followed me over a period of time you`ll know that what I`m showing you here is what I`ve done, and I`ve done a heck of a lot more than this.

For example in 2005, I took on a challenge…I turned 79 cents...my total investment of 79 cents.

I turned into more than 10 Million in 2 years and 3 months. With independent ?nancial auditors that veri?ed that information.

So please do not listen to people, opportunity seekers, and the gurus out there that it is not possible.

So let's quickly go back, and here we`ve got 149% growth.

Hope you are enjoying this so far.

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