I have just started to watch your episodes after I where reading something on 4HWW’s blog and it is great stuff using video to teach your business ventures and experiences. It’s a good reference to check out if what’s written on “Rich Dad, Poor Dad” series does really apply for today’s market conditions. Of course, the big aim is the 4HWW passive-income MUSEs which I’m creating with my team of due dilligence, attorneys, CPAs, real state agents, etc. To succeed on any game you need always to setup your “dream team”…

Unfortunately it is really difficult to apply your model using foreclosures in my area, but as you stated on one of your episodes: never give up, look for other regions, as gold miners do… Maybe I will find a property where I may apply your refinancing model after a foreclosure acquisition. I keep you informed by then if it happens.

I do also invest on rental property in Germany though I use zero down payment (usually condo flat units, 1-to-2Br/1Ba layout, 30-to-40m^2 around ~2,0k-2,5kEUR/m^2 sales price w/ cold rent around ~10EUR/m^2/month), however I do amortize only 1% a.a. with and interest rate around 3.3% a.a. (the interest is higher once the ECB does not print so much money as Fed does), with the option to pay down up to 5% of the full-mortage value every year during the next 10 years of mortage contract. As you may calculate, after 10 years I still have a mortage of around 90% of initial value to pay. Fortunately, after 10 years someone may sell a real state property without taxes on capital gains in Germany, so I’m counting on some inflation (it could be also deflation) and some real state valorization on my model. At the moment, my monthly liquid cash-flow is around 50-to-100EUR/month, which gives me a ROI of ~10%-to-20% over the cost amount with attorney fees, property acquisition taxes and real state agent’s commission which is around 10% over the sales price paid for the object.

I would like to know your opinion about such model?
Have you used such investiment model before?
Where do you see advantages and drawbacks?

Servus,
DCKW

Vagabonding
Number crunching

Another great show – Definitely one of my favorites. I thought it was cool that Alan is reading “Vagabonding” by Rolf Potts. I had mentioned this author in an early submission when you were trying to reach Gary Vaynerchuk. I had emailed Rolf Potts after stumbling across a signed copy of his latest release, “Marco Polo Didn’t Go There” and he emailed a very nice message back to me the very next day – Outstanding! I enjoyed both of his books and found that “Vagabonding” was an easy read, contained great quotes, and it gets you thinking about the time when you no longer have to worry about working. He also represents someone who maintains a pretty simple lifestyle and he talks about living on your own terms, a concept that I have subscribed to for a long time. Great choice Alan!

Next, I dug the fact that you “broke down” your costing approach. It’s neat to see it simplified for those of us who haven’t lived it for the past few years like you have. Thanks!

Keep up the good work – I’ll tune in next time.

Matt

Just an idea
Rich

Thanks for the info though. Very interesting to see how you break down your numbers. Can’t wait till the next episode…

I was happy to see Pay Flynn in a previous video. He does a really nice job on his blog of explaining his income. The transparency not only makes him more credible, but brings readers back over and over to see how he’s doing.

As for a VA referral, you might look into JonasBlog.com or ReplaceMyself.com (same guy runs both). He does a lot of work with Fillipino VAs and offers a service to help people with outsourcing. It’s worth a look.