Net Worth Network

To incorporate or not, that is the question

Date: 18 May 2008 | Comments Off
Category: Real estate, Building your business, Entrepreneurs, Taxes

I have recently been taking steps to start on my path of financial freedom through real estate. My goal is to own several positive cash flow properties within B.C. and to also branch out of province too (Winnipeg is looking very attractive right now). The question that I really have unanswered is to whether to incorporate a company dedicated to acquiring rental properties. Using a property management company to manage those properties is also part of the plan. The flipside of the coin would be to personally acquire the properties while still using a property management company to take care of them for me.

There’s many reasons to choose either option. Tax considerations are the most important, but also the most complicated. I know of investors that do it all on their own, as well as investors that incorporate and run these properties through their businesses. Those who choose not to incorporate have had an easier time acquiring financing and since they have full time careers, have used the write offs to reduce their income. Others who have chosen to start a business tell me that their tax rate is much lower.

As an aspiring investor who still has not found the accountant that really specializes in real estate investments, this seems like a very important yet difficult question to answer. I will continue to educate myself as well as seek out advice in this area and will make my decision soon, as I want to keep making baby steps towards my goal of substantially increasing my net worth.

“Free Money” update

Date: 20 April 2008 | No Comments »
Category: Real estate, Building your business, Entrepreneurs, Personal Growth

A while back I took a leap of faith and parted with a tidy sum of money with the hopes that Chris Johnson’s “Free Money From The Government” course would help me come up with a down payment on an income producing property. I had already sat through a 90 min sales pitch at the Learning Annex’s Real Estate and Wealth Expo in December, so I thought that I had a good idea of what I was ordering. When the program was delivered, I quickly got right at it and started reading the manuals and I listened to the audio cd’s. The problem was that all of the information on the programs didn’t make a lot of sense to me without the explanation as to how I could use it as a novice real estate investor.

Enter Free Money University

After a couple of weeks debating as how to move forward, I received an invitation in the mail for Chris Johnson’s Free Money University. This was included in the price of the program, so I was looking forward to attending and finally figuring out how to get my hands on that free money. This was a two day seminar put on in a swanky downtown Vancouver hotel. When I arrived I noticed how diverse the crowd was. It appears that the lure of free money brings all types. Anyways I quickly realized that this seminar was as much as a marketing event as it was an informative event. There were some disappointed faces when our explanation of what government grants would most apply to us was interrupted (on six occasions over the two days) by other experts selling their programs for wealth creation. I did, however, find some of the opportunities quite interesting. Most notable was Dr. Al Lowry and his explanation of using leveraging to purchase undervalued properties. Again, it made me believe that if I follow a system, I could accumulate a portfolio of positive income properties. As far as the content that I was really there for, I did pick up many important tidbits of information. Chris walked us through the main programs available, the sites to investigate, and how to submit a winning proposal. This was all information that was available in his home study course, but it was easier to digest, as he was to relate it to how we could use it for our investing.

Where to from here

I walked away from this experience with more confidence and an action plan. I was given many tools, such as government websites and forms, to get started applying for grants and financing for my start-up real estate investing company. I also was able to network with investors that have used some of these processes to invest in income producing properties. As much as the education, I believe the opportunity to network and intermingle with successful entrepreneurs was invaluable.

I am now able to move forward to incorporate my company and expand my real estate portfolio. For those who believe that there’s no such thing as free money, I believe that I will be able to prove you wrong.

Government sites that help guide new entrepreneurs

Date: 25 January 2008 | No Comments »
Category: Building your business, Entrepreneurs

I have recently spent many hours pouring over the resources that the federal government has developed to help start-up business get off the ground. I felt a little overwhelmed trying to educate myself on the nuances of creating a business. Since I am starting this process while working full time, I wanted to find resources that could quickly point me in the right direction. Not many people would think that with all of the bureaucracy that the government entails that their websites would be fairly easy to navigate, but I found them to be quite user friendly. So these are the sites that I hope will make my entrepreneurial dreams become reality, and maybe give your business hopes more direction.

Industry Canada

The Industry Canada site, formerly known as Strategis, has many useful resources for the entrepreneur. When I first logged on I used the Resources for Business button. Next I navigated to the Business Tools and Resources page which unlocked a virtual vault of information such as business name searches, developing a business plan, market research, etc. As I move forward, I know that this site will prove to be invaluable to me.

Canada Business

The Canada Business website also provides a wealth of information to the aspiring entrepreneur. It uses fact sheets and guides for references to pass along information such as ideas for home based businesses, franchise information, legal issues related to start-up, financing options and feasibility checklists. Again this site has many avenues to gain insight into the world of business.

Business Development Bank of Canada

The BDC offers a multitude of financing options for both existing and start-up businesses. This site is geared mainly towards providing funding through loans and grants for new and established businesses. On top of funding, they also offer many consulting options for businesses. The site also has a very useful link section where you can access more financing options as well as e-training for start-up businesses.

Canada Benefits

I stumbled across the Canada Benefits website after doing a search for government grants for start-ups. This site will be useful only to E.I. recipients looking to become self-employed. Certain criteria must be met, but grants could be offered up to get your business much needed capital.

So, as you can see, there are many opportunities on the web to educate yourself and become a savvy entrepreneur. I will be visiting these sites many times in the future as I follow my business plan.

Taking a Chance on “Free Money”

Date: 7 January 2008 | No Comments »
Category: Building your business, Entrepreneurs

I wrote recently on my day at The Learning Annex’s Wealth and Real Estate Expo. There was one program offered that day that I felt was the most actionable out of the lot — Chris Johnson’s “Free Money” program. After his 90 min. pitch I really felt that there was a chance of being able to get my hands on some of the $17 billion in government grants available to Canadian citizens. So, I’ve taken the leap and parted with a tidy sum of money ($725 taxes in) in the hopes that the ROI is well worth the risk.

Researching on My Own

The day after the Expo, I sat down at the computer and logged on to the 6 federal government sites that Mr. Johnson had referenced as his sources and spent hours navigating through, trying to find a program that would best suit my needs. I can tell you that it was a brain-numbing task. When you think that you may be eligible, you read the fine print and notice that you live in the wrong area, or you make too much money, or you are not of Aboriginal background. So, I gave up and decided to give it a shot with this program. In future blogs, however, I will discuss the business resources that I did stumble onto while doing this research.

The Wait is On

So I ordered the 5 step book/audio cd program today and will be waiting patiently by the door until that friendly delivery guy shows up with my chance at “Free Money”. I will enlighten all readers in a future post as to whether this $725 investment in my future was worth it or not.

The Learning Annex Wealth and Real Estate Expo

Date: 28 December 2007 | No Comments »
Category: Real estate, Entrepreneurs

On 2 December, I attended a one day event staged by The Learning Annex Wealth and Real Estate Expo in Vancouver, British Columbia with fairly low expectations. Donald Trump was the marketing engine that pulled this train into town. The advertising for this event in my area consisted of newspaper ads and mailers that were offering the tickets for free, so if I picked up even one small tidbit of information, my return on investment was looking good. When I mentioned to friends and family that I was attending, I got the usual response that it would be a wasted day. I decided to attend regardless. I’m glad I did.

The Agenda

Raymond Aaron. The morning started off with a presentation from Raymond Aaron who was selling his “Monthly Mentor” program. He told his story of his life achievements, conquering the business world and accomplishing many personal goals along the way. He believes that one would only become wealthy by surrounding himself with wealthy people. This is the premise of the “Monthly Mentor”. One would subscribe to the program to have a guiding light in the world of finance. Of course, this comes to you for a price.
Lee Brower. Next came Lee Brower, star of “The Secret”. His 90 min’s was spent by informing and enlightening rather than selling. The main point that he was trying to convey is that without a system for your prosperity you will fail. In other words, develop a plan, think it, see it, do it, and celebrate it. One must keep it in motion even if it is just small steps at a time. Do not procrastinate!!
Dr. Al Lowry. Dr. Al Lowry was the next speaker. He bombarded us with info on strategies to buy real estate at 30-50% below market value. What I really liked about his approach is that he really opened up my eyes to the multitude of ways to make money in this game. The problem was that he only touched on those techniques. To fully grasp the “how to” he was offering a 3 day training program for thousands of dollars. Now if his program works, your investment would be returned on your first deal.
James Smith. The next speaker was the most entertaining but the least informative — James Smith. Again he was selling a 3 day training program on how to make money off of real estate, but he did it in such a way that you did not feel like you were being pressured to buy anything. His special brand of in your face humour kept us laughing in our seats but did nothing to inform me on how to make the money that he said his clients have.
Chris Johnson. Our last live speaker was Chris Johnson. He is a local Canadian who has spent years figuring out how to get “free money” from the municpal, provincial, and federal governments to promote economic prosperity. This “free money” comes in many forms but the most common are government grants for real estate investing, start-up businesses and for education. Chris’ strategy in his 90 min presentation was to provide as many testimonials a possible to convince us that this is a very viable option to using our own money for investing. His program was a CD and book based system to guide you through the steps for applying for these grants. This seemed to me to be the most actionable program that we were offered.
Donald Trump. Finally, the opportunity to hear from Donald Trump himself (taped from an earlier Expo in New York). Now after sitting for approximately 9 hrs, I was expecting to be blown away with his enthousiasm and energy. Frankly, I wasn’t. He told a few funny anecdotes but again did nothing to inform me on how to create my own fortune—huge let down. But by that point my brain and my butt were swollen so it was time to go.

Personal Motivation

I viewed this day as an opportunity to motivate myself even further along my path in increasing my net worth. Since this Expo was, in general, an all day live infomercial I knew that even without a large cash investment, I would walk out the door with some ideas and a large amount of personal motivation. The Expo made me realize that all of these speakers have one thing in common — they are all just people. People that have had great ideas, have worked very hard and have become successful doing so.

Would I Recommend this Program?

I’ve been asked this question a fews times now. My response has been that I would attend another only if the tickets were free. I have noticed on other advertising for Expos in other cities pricing up to $299. I would not feel comfortable giving a thumbs up at that kind of price.

Did I feel motivated to take action after the seminars? Yes. Did I feel it was necessary to spend more money for that motivation? No.

The Birth of Net Worth Network

Date: 20 December 2007 | 1 Comment »
Category: Building your business, Entrepreneurs

The idea for Net Worth Network came to me on one of those sleepless nights where my brain simply would not turn off. It was just a few days after I, along with a friend, attended an exciting 1 day seminar put on by the Learning Annex. I came out of that experience with a huge amount of self confidence that I too could conquer the world. So over the next few days I had this growing need to get started on a project with the hope that it could benefit not only myself but also inspire friends and family to create financial net worth. So the name popped into my brain — Net Worth Network. It’s a bit of a mouthful but it conveys the point exactly- a group of like minded individuals who will share their experiences of building their own financial net worth.

Be a “doer”

My wife has told me on more than 1 occasion that I had good ideas but needed a kick in the rump to bring them to fruition. So when I presented this idea to her she asked me what I was prepared to do about it. Well, this is what I did. I e-mailed my cousin Cory, who is a fantastic web designer, and presented the idea to him. This site is the result of our partnership.

Where to from here?

Cory and I plan on making regular contributions to this site and both of us will be writing about our own ideas and experiences and in the future hope that you join our network of entrepreneurs. We can all help each other in attaining our goals, and hopefully share a laugh or two while doing so.

Cory’s origin story: starting the network

Date: 20 December 2007 | No Comments »
Category: Working from home, Building your business, Entrepreneurs

In early December, my cousin Derek called me up with a number of questions about a web-based business.

He told me about an idea, where he’d develop an internet resource for Canadian entrepreneurs. He needed some input from a web guy, which happened to be me since I do freelance website development. Derek was looking for a partner to help him along and complement what he brings to the table.

A preliminary agreement and some baby steps

After some thought, I agreed to work with him even though I’ve had some interesting business partnerships in the past. Of course, those past partnerships provided me with plenty of food for thought and gave me lots of ideas about working for yourself. Derek and I discussed a number of key points of agreement (which we’ll explore in future posts) and felt that a multi-phase rollout for the website was a good idea.

I immediately suggested a weblog as a starting point since it was something we could set up and grow without spending any money. I’ve got some experience writing for other blogs and feel it’s an essential component for any small business. After explaining the basics of the system to Derek, we registered a domain name and installed the software on my current server using MediaTemple’s alternate domain system.

An eye to the future

In the coming weeks, Derek and I are going to write about our business experiences, how we’re coping with full time jobs and specific business goals, provide money saving tips for entrepreneurs, and what we’re learning as we follow our business plan. In addition, I’ll be writing a bit about my background and some of the things I’ve learned as a freelance web designer working from home (with a young child), and Derek will be making his own contributions, but I’ll let him speak for himself in another post.

Also, we’d like to contribute to the great (and growing) body of work out there by sites like Get Rich Slowly, No Credit Needed, Blueprint for Financial Prosperity, and all the others.

For now, though, we’ll take our baby steps and with some hard work and careful thought we’ll see this thing blossom and turn into the resource we know it can be.

Bigger isn’t always better when it comes to small business

Date: 19 December 2007 | No Comments »
Category: Working from home, Building your business, Entrepreneurs

There’s an excellent guest spot on Get Rich Slowly that describes an entrepreneurial journey from a low-paying job to economic self-sufficiency over the course of a decade.

To me, the most striking part of the story is the way that the author and her husband turned their backs on growing the company, knowing that they’d made sound financial decisions in the past and that they could maintain their current lifestyle by realistically assessing their needs and wants and making a decision based on those criteria. In the end, the couple ended up working less than when they had a bag full of clients that was ready to burst at the seams.

The entry from Millionaire Mommy Next Door provided me with a couple of good ideas that I’ll integrate into my own plans. I like that MMND made a decision that didn’t necessarily confirm with popular thinking — so many people would have chosen to expand. I also like the fact that these people made it on their own, and they were smart about it, and you know they’re going to be smart about it moving forward.

Anyways it’s inspiring stuff and well worth the read.

Archive: Entrepreneurs