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.

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.

It Is God Who Gives You The Power To Get Wealth

My Sunday Special

As I have mentioned before, we are a three part being: A Spiritual being, with a Soul, living in a Physical body.

We must understand that there are laws governing every single thing, seen and unseen.  There are laws of the spirit world, there are laws of the soul world, and there are laws of the physical world.

A law is “a rule or collection of rules imposed by authority.” In this case, the authority is the Creator of the spirit, soul and body … I call Him God.  A law, its operation and consequence or penalty for disobedience, does not change because of our belief in it or our knowledge of it.  A three month old baby does not know about the law of gravity and if not supervised or protected, could crawl off a balcony 10 stories up; the law of gravity will still work.

As we study these laws we learn that the laws of the soul realm (the soul being the conscious mind, the will and the subconscious mind) are more powerful then the physical world and the laws of the physical realm; and the laws of the spirit realm are more powerful than the soul world and the laws of the soul realm.

Now that means, whether money is part of the spiritual realm, soul realm, physical realm or all realms, there are laws which govern its acquisition and disposal!  That means …

… there are exact laws which govern poverty and exact laws which govern financial wealth.

We can talk about the different laws which govern the creation of wealth, and we will over time.  I want to draw your attention to one law which I believe is vitally important! Disobeying this law won’t stop you from acquiring wealth, however it will cause you to be unfulfilled with any amount of wealth and even lose whatever you create!!

It appears this law was first recorded between 1446 BC and 1406 BC by Moses in the Torah. It can be read in the bible in Deuteronomy 8:17-20:

17And beware lest you say in your mind and heart, “My power and the might of my hand have gotten me this wealth.”

18But you shall [earnestly] remember the Lord your God, for it is He Who gives you power to get wealth, that He may establish His covenant which He swore to your fathers, as it is this day.

19And if you forget the Lord your God and walk after other gods and serve them and worship them, I testify against you this day that you shall surely perish.

20Like the nations which the Lord makes to perish before you, so shall you perish, because you would not obey the voice of the Lord your God.

This is worthwhile a considerable amount of your time to mediate and ponder on.

This does NOT say that God will punish you.  What it does say is if you puff yourself up, or believe you are God and that you alone created the wealth and do not give gratitude and praise to the source of all wealth and prosperity, you will suffer the penalty of not obeying the law.

This is a law, and the consequence of being ignorant to it or disobeying it is not altered by your belief whether it exists or works or not!

From $16.2 million To Living On Food Stamp In 12 Months

So far I have shared about the spiritual side of money.  We will get on to some strategies for building wealth soon.

In fact, I will give you a step-by-step process of how to make money and create financial abundance regardless of your present circumstance, age, country, race, colour, situation, skill, education or ability. However, the reason I have spent time on the non-physical aspect of money is because it is the root cause of poverty and lack in people’s lives.

You cannot have abundance and prosperity while you think or focus on lack.  Even if you are given or win a large amount of money, you will dispose of it rapidly down to your own self-image of what you believe you are worth.

Some say that 96% of all lotto winners are worst off within five years than before they won the money.  I don’t know the exact statistics but I do know it is extremely high.  I have spoken to at least three people who have won over a million dollars and each one said that it made their life a mess and they wished they had never won!

Here is just one story I found on MSN.com:

Living On Food Stamps

William “Bud” Post won $16.2 million in the Pennsylvania lottery in 1988 but now lives on his Social Security.

“I wish it never happened. It was totally a nightmare,” says Post.

A former girlfriend successfully sued him for a share of his winnings. It wasn’t his only lawsuit. A brother was arrested for hiring a hit man to kill him, hoping to inherit a share of the winnings. Other siblings pestered him until he agreed to invest in a car business and a restaurant in Sarasota, Fla., — two ventures that brought no money back and further strained his relationship with his siblings.

Post even spent time in jail for firing a gun over the head of a bill collector. Within a year, he was $1 million in debt.

Post admitted he was both careless and foolish, trying to please his family. He eventually declared bankruptcy.

Now he lives quietly on $450 a month and food stamps.

“I’m tired, I’m over 65 years old, and I just had a serious operation for a heart aneurysm. Lotteries don’t mean (anything) to me,” says Post.

So what I am trying to get you to understand is that the acquiring and accumulation of money is not about hard work or the right job or winning lotto.  In fact, I believe that trying to acquire wealth through any form of gambling is in direct opposition to the natural laws of the universe.

Getting money and keeping it is always dependant on your mindset.

Napoleon Hill in his book “Think and Grow Rich” states that you much work yourself into a white hot burning desire for the money you want.  You must first decide the exact amount of money you desire and why you want it.

Tomorrow I will share with you the exercise which changed my life and my back account.  I’ll show you how I started to get checks in the mail instead of just bills!  I went from making less than $5,000 per year to creating over $1,000,000 in one day using the principles I’ll show you.

Are You Worth More Than 9 cents Per Day??

In Part 1 of this series I suggested that there were two key concepts you must accept:

1. That money is an energy which flows according to your thoughts; and
2. The source of money is NOT other people.

We have been brought up to look at the world as a world of visible things such as people, machines, buildings, computers and so on.  We very much focus on the physical realm and take little thought of other realms or even if they exist.  Many people even say, “I have to see it before I believe it.”

Let me prove it to you … In the United States alone:

1. Physical – Over $450 billion is spent per year on diet foods, supplements and gym memberships, 22 billion on fashion, $65 billion on cosmetics, food at $785 billion, health care of $1.2 trillion … that’s not counting research on the body and a myriad of other things … total of $2.5 trillion;
2. Mental - Around $110 billion is spent per year on education, most of that is before you leave school, little is spent from age 25 to death;
3. Spiritual - Less than $11 billion is spent per year on self-help and personal development which includes spiritual development!

Courtesy of http://www.visualeconomics.com/how-the-average-us-consumer-spends-their-paycheck

My guess is that more money is spent per year studying the physical part of a human being than what has been spent since the beginning of time studying the spiritual part of a human being!!

Want the math?

The average American spends about 7 and a half hours a day eating and watching TV and over $21.40 per day feeding, developing, learning about and looking after there body; they spend less than a buck a day developing their mind; and spend only seconds a day meditating, praying or visualizing and just 9 cents per day feeding, looking after, learning about and developing their spiritual being!!!  Yet the more we learn and understand about the process of creation the more we realise that ALL physical manifestation is first created on the spiritual plane and processed on the mental plane.

Isn’t it interesting that long before the ‘New Age’ or ‘New Thought’ or ‘I’m spiritual’ movements that Paul (in the bible) wrote to the Thessalonians about being Spirit, Soul AND Body (Thess 5:23)  and that if we want to change our outside world we had to change or renew our mind (Romans 10:2).  We are a spiritual being with a soul (mind, will and emotions) living in a physical body.

I will prove to you that EVERYTHING that appears on the physical plane, whether it be money or poverty or health or sickness or happiness or sadness or success in business or failure, is ALWAYS created first in the spiritual plane. If we understand that, we then know the source of money and it is not other people.

History has it that the Creator of the universe and of man said to a bloke called Moses a few thousand years ago, “I give you the power to get wealth for the establishment of my covenant on earth.”

So where DOES money come from?