Before I take advantage of a high return private opportunity I want to answer YES to all these questions … they are explained in detail below:

• Key #1 – Have I put 10% or less of my net worth into the wealth creation opportunity?
• Key #1 – Have I put 10% or less of my net worth into the wealth creation opportunity?
• Key #2 – Does the business owner/s have control of my money?
• Key #3 – Has the business owner ever built a successful business?
• Key #4 – Do I know what my annual return will be, when it will be paid, who is paying it, if there is a performance bonus
• and when the capital will be repaid?
• Key #5 – Will this opportunity give me a passive return?
• Key #6 – Is the term at least 3-5 years?
• Key #7 – Do I know who is responsible for providing quarterly reports?

Plus two bonus Keys!

• Key #8 – Is there a proper legally binding loan agreement or contract?
• Key #9 – The person behind the private opportunity is not a close friend?

I get about one joint venture or capital raising request per week across my desk.  I could ignore all of them… but I don’t!  I know that some of these ventures are incredible passive income opportunities.  I have even done some of these ventures myself in the past and have experienced both the good and the not so good.  The question is:

“Should you take advantage of these types of higher risk, higher return opportunities?”

“Absolutely!”

Why miss out on passive returns which are often 20% plus per annum just because of ignorance!  Risk is always minimized with the correct knowledge.

Like all wealth creation opportunities friends, work colleges, accountants and even government departments will try to discourage you from any opportunity that could actually create wealth!  For nearly 30 years I have created wealth from the stock market yet many people are so fearful they will never look at that opportunity… and their fears are always based on false information. Their own paradigms do not allow them to accept that people can actually get rich so they try to prevent others from doing so!

Just like investing in the stock market there are rules and guidelines I always follow when taking advantage of these types of opportunities.

Here is my checklist:

Key #1. NEVER put more than 10% of your net worth into speculative ventures!

Very often people make the mistake of looking at an opportunity and because it appears so good and so certain, they put most or all their life savings into it.  This is plain stupidity and greed… yet I have seen many intelligent people do this.  90% of your wealth creation should be in quality real estate and blue chip shares, a maximum of 10% should be in speculation such as start up business ventures, inventions, speculative shares and high leveraged trading.  People get greedy and ignore this basic rule and sadly, when they lose they blame everybody else except themselves!

Key #2. Who has control of your money?

This is an extremely important question because very often people will put their hard earned cash with someone they don’t even know.  The biggest money scams have third parties doing the capital raising so that it is harder to trace your money.  ALWAYS make sure that your money is going directly to the business owner and that you know and trust the business owner.

Key #3. Is your money secure?

People always assumed that their money was safe in a bank or even in property.  We have  sayings such as “As safe as money in the bank” and “As safe as houses!” In recent times in the US we have seen neither is true.

The most important component of taking part in private opportunities is that you know and trust the business owner.  A person you know and trust and have even done business dealings with before is far more likely to care about you and your money than a bank where you are just a number and a profit centre!

One of the best guarantees is that the business owner has started and built successful businesses before.  If the person has never run a business before but has a great idea, chances are the business will fail and you will lose your money.  If the person wants to develop a property but has never done a successful property development before, stick your money in your pocket and run regardless of how good it sounds!  Remember, a person cannot outperform their self-image.

Key #4. Am I going to get a return?

We all know there is no such thing as an absolute guarantee of return … history shows us all investments have failed at some point whether it be banks, government bonds, property or shares.  It is knowledge and wisdom that allows us to avoid the losses and make the profits!  In private opportunities we must know what the potential return is.

If you are buying equity (owning a percentage of the business) you must do thorough due diligence.  Ask for both best case and worse case cash flow projections, go through each cash flow projection and make sure they have allowed for their own wages, legal and accountancy fees, computer software and hardware, taxes, office expenses, marketing and have at least a 10% contingency buffer per annum.  Check out the validity of their market research.  Don’t be afraid to ask the hard questions … it’s your money!

Being a lender is much simpler. Find out exactly what your annual return will be, when it will be paid, who is paying it, if there is a performance bonus and when the capital will be repaid.  The returns may appear to be lower than many equity opportunities promise; however they won’t be pie-in-the-sky returns either.

Key #5. Is it a passive return?

When comparing returns you must always consider the value of time.  When you are putting in your time and effort to achieve a return on your money you always want a higher return than you get from passive investments.  Why?  Because your time is something you cannot get back!

A passive income is income you get without any of your effort.  Remember Robert Kiyosaki’s game CashFlow? The rat race is working for a living, to exit the rat race you have to build your passive income to beyond your living and lifestyle expenses.  A fifteen percent passive annual return is better than a thirty percent aggressive (or active) annual return if you have to spend hours (your life) each week and only obtain the thirty percent return sometimes.  Always make sure the return with private opportunities is passive and does not require any input on your behalf.

Key #6. What is the term of the private opportunity?

For passive opportunities you want it long term not short term.  You have probably seen My Money Tree calculator … For many years I have shown it in my stock market seminars to explain the power of compounding … Wealth Rule #3 in my “7 Steps To Unlimited Wealth” CD & Workbook program says ‘Use the Power of Compounding’.

If you invested a single amount of $100,000 at 25% return over 10 years and simply reinvested the return you would have almost $1,000,000 at the end of the 10th year!  If you are seeking to take advantage of higher return opportunities make sure you have the option of leaving your money in there for at least five years.  Remember … Passive income gets you out of the Rat Race!!

Key #7. Ensure that proper reporting and accountability is in place!

One of the most challenging aspects of private opportunities is not being informed of what is happening.  I experienced this first hand as a business owner when I delegated the responsibly of writing and sending reports to my General Manager.  They failed to send out the reports when they were supposed to.  People who had purchased profit share units started to get concerned about what was happening.

Even though the business was on track to exceed profit expectations this allowed the then sacked General Manager to sow discord amongst the unit holders and eventually ruin the business opportunity for everyone, costing each person their hard earned dollars.  In hind sight I should have dismissed the employee much earlier and taken responsibility for the reporting.  Proper reporting and accountability is imperative and vital.

You must make sure you know how often the reports will be given (I suggest at least quarterly) and you must know who is accountable for providing those reports BEFORE you take part in the opportunity.  If the reports are not forthcoming on time, demand them.

Ok, I said there were 7 keys To creating wealth with Private Opportunities … there are two more I have to share with you!

Key #8 Is there an equity contract or loan agreement between the two parties? You MUST ensure the contract has in it everything you agree on and that you have a signed and witnessed copy by both parties.  Don’t ever enter an equity or loan agreement without having a legally binding contract.

Key #9 DO NOT EVER hand over your hard earned dollars to a friend to invest in a great idea they have heard about! You will lose two things … your money and your friend!  ALWAYS remember that a person can never outperform their own self-image about money!

I trust you find my checklist helpful and that as you build your wealth, it guides you to make wise decisions.

If you have any questions or comments about creating wealth with private opportunities please send those to me via the comments section below.

Your Words Can Wound Others or Heal Them.

Our words should be like a silver box with a bow on top

“Thoughtless words can wound as deeply as any sword, but wisely spoken words can heal.” – Prov 12:18

I wrote the above 2 lines on my Facebook profile, here is a comment I got back from a friend: Define “thoughtless words” & “wisely spoken words” it depends on how someone recieves the information or whether they are actually listening. It is all perception after all.

Here is my response:

I think every single human being knows in their heart when they are speaking thoughtless words or wise words to another – its not perception, you know it in your spirit. If you don’t know then pray to God for wisdom! There is so much BS piled up these days about “its not good or evil, it just is” or “its just their perception.” Its time to get real and stop blaming others and shovel away the BS we have piled around our lives to protect us from truth!

The King James version of the bible writes it this way – “There is that speaketh like the piercings of a sword: but the tongue of the wise is health.” The word piercing (thoughtless) is translated from the Hebrew word “madqârâh” which is a wound. So thoughtless words are words you say to another which cut or hurt them … no perception it that!!

Wise comes from the Hebrew word “châkâm” which is translated wise, wise hearted, to teach wisdom. So ‘wisely spoken words’ are what we say to another which will build them up, imparts wisdom to them.

A child translated it this way: “Don’t say bad words to others which will tear them down, but let every word that comes out of your mouth be like building blocks to each other. Our words should be like little silver boxes with a bow on top!” (Read ‘Silver Boxes’ by Florence Littauer)

Of course some will want to argue, mainly because they have the attitude that if something needs to be said then say it, regardless of how it affects others.  I challenge them to get wisdom.  What I have written above is taken from the Book of Proverbs, written by the wisest and richest man ever to live – the only trillionaire we know of in history!  Solomon said “Wisdom is the principle thing, above all else get wisdom!”

David Schirmer’s Preparing for Great Wealth and Abundance

This is a webinar I did for my Complete Stock Market Course Students on prepare to receive prosperity over the next decade.  We can have all the knowledge and even be at the right place at the right time and still miss out on wonderful opportunities.

This video explains why we do that and how to get ready to receive abundance and prosperity in 2011 and beyond!  Enjoy.

Get the latest Flash Player to see this player.

For a complete FREE audio recording of my 3-day Science of Getting Rich seminar valued at $997.00 go to www.SignpostsToFreedom.com

Ted Williams Shows Your Circumstances Don’t Control Your Outcome!

Ted Williams knows what ‘doing it tough’ means, after a decade of drugs, alcohol, homeless and penniless.  Are you going through some crap in your life right now?

Sometimes in life we find ourselves in circumstances which overwhelm us to the point we can’t see a way out.  There seems to be no light at the end of the tunnel, no hope of a better future.  Before I share my insights watch this video, an interview on MSNBC’s Today Show with a homeless man Ted Williams, The Voice:

Some things to ponder:

Homeless man Ted Williams holding sign

Ted Williams is the epitome of what I have been sharing for years and what The Secret DVD and The Secret book are based on.  If you apply the lessons learned from the short interview with Ted Williams it will change your life forever.

1. Never look at your circumstances as being the truth, or all that is possible.
   Ted Williams was homeless, hungry, penniless, a beggar, an alcoholic, a drug addict, a ‘reject’ in society; in fact his circumstances where probably far worse than yours … yet he knew he had a great voice; he knew that if he got the right person to listen he would get a job.

   Your circumstances don’t decide your outcome, you do! Only focus on what you desire, not on the present appearance of things.  Wallace D Wattles said over and over again in his book ‘The Science of Getting Rich’ that in order to achieve any degree of success we must ‘Think the TRUTH regardless of appearances.’ If you haven’t listened to my seminar you should, it’s free!: www.SignpostsToFreedom.com

2. Be thankful to God for everything you have and all that you are.
   Sometimes we feel so low that it seems we have nothing to be grateful for!  Ted Williams is grateful for life every day, he is grateful for his voice, grateful for the food and shelter he had, grateful for his Mum and his family.  Having gratitude is only part of the equation, this homeless man gave vocal thanks to the Lord!  Something many ‘spiritual’ people miss out of the equation.

   David in the bible knew the power of praise … he said many times in Psalms (Songs) to praise God.  Ps. 66:1-3 “Make a joyful noise unto God, all the earth.  Sing forth the honor and glory of His name; make His praise glorious! Say to God, How awesome and fearfully glorious are Your works!”
   Ps. 67:5 “Let the people praise You, turn away from their idols and give thanks to You O God.” Ps 144-150 is just full of praise to God.  As Ted Williams said, he now acknowledges God everyday in all his ways: Success without God is failure.

3. Believe that you have a God given gift … believe God.  
   I’ll be straight down the line here … I don’t know how people get by without a real relationship with God.  I don’t mean a religious knowledge of God and sin but a ‘father/son’ relationship.  We live in a world of doubt and fear and disbelief and it leads to so much stress and anxiety.  God says ‘fear not for I am with you … I will not leave you or forsake you.’

   If you are going through some ‘Ted Williams’ type experiences I urge you to call on God, even if you don’t yet believe He exists!  Is 59:1 says it so well: “Look! Listen!  God’s arm is not amputated – he can still save you.  God’s ears are not clogged up – he can still hear you.  There is nothing wrong with God; the wrong is in you.  Your wrongheaded lives caused the split between you and God.  Your sins got between you so that he doesn’t hear.” WOW … God doesn’t move away from us, we simply ignore Him and then he cannot help us.

4. Have a 5-year Vision!
   Ted Williams knows what he wants in five years from now … to be a Program Director and to have his own apartment.  What’s your vision for your life five years from now?

   “Where there is no vision, people perish.” - Proverbs 29:18  Without a vision for our future we slip back into hopelessness and despair when faced with life’s challenges.  Make sure you have an empowering vision.  For Ted Williams to have a home is very empowering for Ted!  What will empowering and excite you for the next 5 years and beyond?

5. Take Action!

   
   

   

   Sign Ted Williams was holding

   Ted Williams may have ‘the golden voice” but nobody would know unless he took some action.  Too many people think all they have to do is mediate or pray or have faith and they will achieve their dreams … then they get disheartened and disillusioned when it doesn’t seem to work, often blaming other people for their failure.  The Law of Attraction is biblical, it’s a universal law … it works all the time whether a person believes it or not.  “Faith without action is dead!”

When you live this way you will be misunderstood by the many, you will even be laughed at, despised and even mocked by those closest to you.  Those ignorant of the Law of Attraction will try to drag you back into their world in which they call ‘Reality’, often accusing you of ‘taking on too much’, ‘daydreaming’, ‘having your head in the clouds’ or straight out ‘lying’ about your situation.  Yet, once truly understood, it is the only way to live.

I want to leave you with these couple more pearls of wisdom:

• Speak only what you want, not what you don’t want.  “Death and life are in the power of the tongue: and they who indulge in it shall eat the fruit of it, for death or life.” – Proverbs 18:21
• God’s decree regarding your future: “I know what I am doing.  I have it all planned out – plans to take care of you, not abandon you, plans to give you the future you hope for.  When you come looking for me, you’ll find me.  Yes, when you get serious about finding me and want it more than anything else, I’ll make sure you won’t be disappointed.” – Jeremiah 29:11-13

Get In The Right Place To Receive

I was born in Mackay, Queensland, Australia at 5:26am on December 23, 1962 … that made me 48 yesterday.  (If you’re an astrologer then that information could give you a few insights!)

Yes, December 23 was my birthday so yesterday I decided to have a ‘do nothing’ day!  Well, not really a do nothing day but a day in which I just did something different … something just for me!

I thought I would share with my friends just how I spent the day:

1. I started my birthday by sleeping in! If you know me well you will know that I normally go to bed well after midnight almost every night (yes, some nights I forget what time it is and I realize that the sun is rising and I should get some sleep!!)  I normally have between 4-6 hours sleep … yesterday I had 9!
2. After having a late breakfast together with my darling wife Lorna I sat down at the computer and read my emails and Facebook messages.  I was humbled and felt very blessed by all birthday messages from my friends around the world.
3. My wife gave me a gift voucher for a massage for my birthday so we heading out to Doncaster Shoppingtown and I went straight for my massage.  I had just completed four seminars in as many weeks and standing speaking for 8-13 hours a day takes its toll on the body.
4. Lorna went off to finish some Christmas shopping for our boys.
5. When I finished my massage I did my most favourite thing in the world … I sat down at a good coffee shop, I ordered an extra hot latte and read my favourite book. 
   I guess you are wondering what my favourite book is?
   If you know me well you will be able to guess!  It’s not Think & Grow Rich or The Science of Getting Rich or even The Secret, though they all rate highly.  The most amazing book ever printed is the Bible, and within that book my most loved book is Paul’s letter to the church in the city of Ephesus. 
   As I read Ephesians through yet again I received even more revelation.  I wondered how many people had actually read this book.  Regardless of your spiritual beliefs or convictions there is so much wisdom and truth that can be gained from this book. 
   Sometimes in our own little world when things don’t work out how we would have liked we can feel isolated, alone and lonely.  Even as I read the first few paragraphs (verses) I reflected how truly blessed I am … Did you know that God had you in mind even before He laid the foundations of the earth?   Did you know that God’s love for you surpasses any human comprehension?

As I read Ephesians I felt compelled to share my birthday with you, not to boast or puff myself up in any way, but rather to give you hope in a sometimes seemingly hopeless world.  Here is some of what I read:

“How blessed is God! And what a blessing he is! He’s the Father of our Master, Jesus Christ, and takes us to the high places of blessing in him.

“Long before he laid down earth’s foundations, he had us in mind, had settled on us as the focus of his love, to be made whole and holy by his love. Long, long ago he decided to adopt us into his family through Jesus Christ. (What pleasure he took in planning this!) He wanted us to enter into the celebration of his lavish gift-giving by the hand of his beloved Son.

“Because of the sacrifice of the Messiah, his blood poured out on the altar of the Cross, we’re a free people—free of penalties and punishments chalked up by all our misdeeds. And not just barely free, either. Abundantly free!

“He thought of everything, provided for everything we could possibly need, letting us in on the plans he took such delight in making. He set it all out before us in Christ, a long-range plan in which everything would be brought together and summed up in him, everything in deepest heaven, everything on planet earth.

“It’s in Christ that we find out who we are and what we are living for. Long before we first heard of Christ and got our hopes up, he had his eye on us, had designs on us for glorious living, part of the overall purpose he is working out in everything and everyone.

“It’s in Christ that you, once you heard the truth and believed it (this Message of your salvation), found yourselves home free—signed, sealed, and delivered by the Holy Spirit. This signet from God is the first installment on what’s coming, a reminder that we’ll get everything God has planned for us, a praising and glorious life.“ (Ephesians 1:3-14 The Message Bible)

Even if you don’t realise it or understand it or even believe it, the creator of the universe loves you and thinks more about you then anything else He has ever created.  You and I are so special to God that He desires to give us the very best that creation has.  Further on in Ephesians Paul wrote: “God can do anything you know – far more than you could ever imagine or guess or request in your wildest dreams!” (Eph 3:20)  WOW!  That’s huge!!!

God doesn’t care where we have been, what we have done, how messed up we are, what our beliefs are or how much we have screwed up our lives … all God wants is for mankind to accept Him as their spiritual father and accept Jesus Christ as His son and acknowledge that He has done everything there is to be done, the price is paid … God just wants to pour out His abundance and generosity to us.  We are the ones who prevent God’s goodness flowing to us.

Of course, I went to bed last night reflecting on all the gifts and blessings God has poured out to me and my family.  I couldn’t help wonder how I could help others experience the same in the fullest measure possible.

Thank you for your birthday wishes and may you have a wonderful Christmas season and an abundantly blessed 2011.