Wednesday, November 14, 2007

Lessons from November 10th 2007

Another great game, another big crowd. We had 12 people on two boards. Playing Cashflow 101 were Greg Aldrich, Lee Johnson, Danielle Rocheford, Mike Marques, Sue Sudhalter and first timer PJ Gauthier. Playing Cashflow 202 were James Greelish, Terry Fairley, Mark and Sean Biller, Bob Kay and returning after about 6 months was Aaron. Welcome back, Aaron!

We rapped up the night much earlier than usual, about 9 or 9:30 because a number of us had to get up early the next day.

On the Cashflow 202 board, Sean Biller got out of the Rat Race first. I'd like to point out that Sean normally gets out first or second every time he plays and he's still about 2 months shy of his 14th birthday. We're all pretty proud of him.

On the Cashflow 101 board, we saw all kinds of strategies.

Mike was a mechanic and played tighter (to borrow a poker term) than I've ever seen anyone play. He essentially did no deals except for borrowing to buy 5000 shares of stock at $1. He had to borrow more because of getting downsized and played most of the night with just over $200 cash flow per month. Mike drew small deals the entire time until the very end, hoping to flip them for cash.

Greg was the cop and played what I used to call aggressive. He bought everything essentially that came up, whether he drew it or someone else did. He watched his money well and always borrowed to have cash on hand so that he didn't go bankrupt. He had a lot of property, some businesses and over $400,000 in bank loans. Because of his willingness to finance 100% and not worry about negative cash flow, Greg was largely uninterested in partnering although I did get him to go in 50% on a shopping center that I couldn't do alone and didn't want to sell the opportunity for. Greg never drew a small deal card.

Danielle played the doctor, avoided most deals and usually partnered. She always kept at least $2000 cash flow. I believe she used her high cash flow to cover bank loans on only one deal.

I don't recall the occupation that PJ had. She played pretty tight and hid low cash flow most of the night.

Sue I think played the nurse and started out playing tight. As the night wore on, she was willing to do more deals including financing the cash flow. What was interesting is that the more she did this, the more nervous it made Mike.

I played the engineer and frequently financed deals from cash flow and also partnered with others. Tonight, every time I'd pay off the bank loans, I'd end up with another because of a good opportunity and never paid off the credit cards and retail debt. But I was fine with that. I a couple of Big Deal properties that I partnered on (a 4 Plex with Danielle and a shopping center with Greg) and controlled and i owned an automated business. I was focused on keeping my cash flow up by paying bank loans down immediately. After all, I could always take another loan and in the mean time, who on earth would I want to pay 120% annual simple interest to the bank?

Greg got out of the rat race first and he won the game. Both actions required some luck. Within a couple of player turns, a plex buyer appeared offering $35K per unit and Greg sold all of his plexes. This substantially dropped his debt. Then a house buyer appeared at $100K per house. Greg sold a number of them and he was out with a 1.14M Cashflow day! On his first roll on the Fast Track, he landed on his dream and had more than enough cash to buy it.

Foreclosure filings continue skyward

There continue to be an increase in foreclosure filings nationwide. The below link is from CNNMoney.com. Despite mispelling Worcester, it lists the Worchester (sic) area increasing by 122%, or one foreclosure filing for every 150 households. From the standpoint of homeowners (and government) this is horrible. And believe me, I feel for these people. From the standpoint of a real estate investor, this represents great opportunity. Many of these homes need work and offer the opportunity for undermarket purchases and forced appreciation (rehab). Looking for these opportunities? Look for more things such as the auction of Countrywide REOs some of us attended this past weekend.

Foreclosure Filings: No slowdown yet

Tuesday, November 6, 2007

Election Day 2007

So this post has nothing to do with this blog?


It has everything to do with the blog. I want to influence the world, just like you do or should, so that it reflects your world view, is better for you and your family and makes the world a better place. What I'm not going to do in rail against the state of politics locally, statewide or nationally. I've got a pretty clear reputation among those that know me well and those that don't commonly assume incorrectly because of my business background.

I know who I plan to vote for and who I support even in towns where I don't live or live any longer. Fitchburg is a place I'm interested in and I know who I support for mayor there. And I support the re-election of a councilor in Chelsea and Cambridge.

If you are interested, pay attention. It affects, your money, your family and your life. Even if you disagree with my politics or some of my politics, pay attention. Contribute to the candidates you support. Make a difference.

That's how we make a better world.

I'm going now.

Friday, November 2, 2007

Build your own online affiliate business

I've said periodically that I would share some of the "SpareTime Co" things for the business in the basement kind of thing for the different businesses I'm pursuing. Today, here's a little bit of affiliate type stuff. They include lots of things to get you started.

The following cost nothing to get started. You can promote through a web site, email, print, etc. and are available with one sign-up through Revenue Allies Affiliate Network. You can check out 4 of the programs below.

The various ones offered currently through Revenue Allies Affiliate Network are: LHP Home Warranties (heck, buy one yourself through your own affiliate link and get paid for it if you are selling real estate), DISH Network, DIRECTV, Comcast, ADT (just starting), and Vonage!

::LHP Home Warranty Program::
Offer the most comprehensive home warranty service plan available.
More Info: http://www.libertyhomeprotection.com?kbid=6839
Signup: https://www.libertyhomeprotection.com/resellersignup.aspx?kbid=6839

::DISH Network::
Earn up to $145 or more offering the best in satellite television entertainment.
More Info: http://www.revenue-allies.com/up.asp?id=6839

Earn up to $145 or more offering the best in satellite television entertainment.
More Info: http://www.revenue-allies.com/up.asp?id=6839

Earn up to $105 or more offering COMCAST's triple-play service bundle: Internet, Phone & Video service
More Info: http://www.revenue-allies.com/up.asp?id=6839
Because they're offering such high payment on exclusive offers, they are only allowing a select number of affiliates to join. I wanted to let you know before they stop accepting new members.

To learn more about the Revenue Allies Affiliate Program, go to:

This particular program is excellent for landlords, property managers and real tors because these services are needed by every home owner and tenant. And you can include them with your welcome package.

Another feature is that it's a two-tiered program. If people sign-up to offer these to consumers from your link, your sub-affiliate will still receive what they are supposed to and you'll receive about $20 per customer they sign-up.

One sign-up gets you into all of these programs.

More affiliate stuff soon. Try it out; try many affiliate programs out for things that make sense for you. You do have some effort to put into it but you can develop a stream of income from it. Then you can put this money to work for you to get out of the rat race.

Thursday, November 1, 2007

Google Adsense

One of the ways I'm monetizing my various online presences is through the use of Google Adsense. Okay, to date, as of November 1, 2007, I've made only a little only $30. But revenue from clicks is increasing as the search engine rankings of this site, Rat Race Escapes Beko Investments are climbing. Rat Race Escapes, Beko Investments and Worcester REI rank higher than any other real estate investor related web sites in New England according to Alexa because of search engine optimization work I've been doing and I'm pretty please by that. That translates into more traffic and more revenue. WREI has not being monetized yet and won't for my personal gain; rather it will be to bring in more money for WREI so that it can provide a better experience for members and meeting attendees.

Anyway, check out Google Adsense.

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