On The Beach Education Corporation

Key #1: You must learn how to master frustration
A negative attitude wipes out self-discipline. In order to succeed in life, it’s about getting massive frustration. The more frustration you get, the more successful you get to be. Use frustration to motivate you. The other side of frustration is success. So few people learn how to manage frustration. Learn to turn frustration into fascination.

Key #2: You must learn how to manage rejection.
The key to success is receiving massive amounts of rejection. It’s part of the numbers game. Developing rapport can decrease the number of rejections. Until you learn to thrive on rejection, you won’t experience the level of success you could. The law of averages is if you do it enough, you’re going to develop an average rate of success. How many no’s does it take to get a yes? Superstars handle frustration and rejection.

Key #3: You must learn how to handle financial pressure.
Learn to manage the money that you have. Money becomes a tool for you instead of you being the tool of money. It’s not working hard that makes the difference. You got to change what’s in your head. Focus on not what you can get, but on what you can give.

In the book “The Richest Man in Babylon” by George Clason:
(a) take 10% of your money and immediately give it away
a. your unconscious believes there is more than enough
(b) take 10% and use it to reduce your debts
(c) take 10% and use it to invest, or save it to invest
The remaining 70% is to live on.

Key #4: You must learn how to handle or manage complacency.
This is a real killer - comfort zone gets involved. It sets in when you learn how to manage frustration, rejection, financial pressure. The only way you become happy is not what you get, it’s who you become.

Here’s the solution:
1. learn to judge yourself by your goals and not by your peers
2. pay careful attention to who you associate with

Key #5: Always give much more than you expect to receive.

This is the formula for wealth and happiness.

The secret to living is giving.

Notes taken by July Ono

Ever since I wrote my first book Your Million Dollar Network, I’ve been getting queries from people who have written a book or are thinking of writing a book.

Here’s the scoop on becoming an author. There is no money in selling books. Your book is a marketing tool. You must start marketing your book before you begin writing it, not after it’s written.

Successful authors such as JK Rowling, Tom Clancy, John Grisham are paid the big bucks because they’ve paid their dues, have been writing for years, they have a niche market that sells lots of books. This status applies to about 3% of all published authors. The remaining authors write books because they are experts in their field. Their works become a resource for other people who find value in it. The more people who value your work, you will have more sales of the book, and this depends largely on marketing.

Publishers take the lion’s share of the profit leaving the author with pennies per book sale in residuals. This is why the majority of authors choose to be self-published. 100% of the profits go directly back to you. When the momentum builds to the point you have too many book orders to handle, this is when you switch to a publishing house or a distribution hub.

Publishers publish books. They do not market your book. That is your responsibility as the author. You are responsible for the book tours, book signings, media interviews with radio, television and print.

You must start your marketing before you begin writing your book. Host complimentary evening seminars on the topic of your book or tele-seminars or webinars. At the end of the presentation, offer a special pre-sale discount on the book you are about to write. Collect as many orders as you can while you are writing your book. By the time you have finished writing it, editing it and ready for print, you will have raised the cash for the first print run. At the very least, have the cost of your print run covered.

There are authors who end up losing thousands of dollars from writing a book. There are authors who end up with their books in their garage. There are authors who misjudge the saleability of their book. There are authors who write vanity books that appeal to no one else. If-you-write-it-they-will-come does not happen in the real world. Writing a book is an investment in your company, your business plan, whatever brand you are creating. Make sure you have a target audience that is willing to pay you with actual money, not empty promises to buy. Make sure you have a business plan that outlines what you plan to do with the book before you write, during your writing and after it’s written. Plan your successful book launch a year in advance. Writing a book is easy. Selling books requires a multi-pronged marketing strategy to ensure you get a return on your investment.

I was recently contacted by someone in my network who shared that they have been watching real estate from the sidelines. They now have an opportunity to pursue a couple deals on single family dwellings and asked me about coaching them through writing the offer. Coaching isn’t going to help them. Writing an offer is just one small step in a multi-step process, and before you can even write the offer, you have to get clear on some other things.

The majority of people who get involved in real estate investing (or for that matter, any business endeavour from network marketing to starting a business) do not have a plan. Are you really clear on the who, what, why, when, where and how. Is it written out?

I’m not talking about a forty page document. A simple one page plan is a great start to getting clear on your goals, your intention, your mission, your vision, your plan. A great resource for real estate investors is joining Don Campbell’s Real Estate Investment Network. Their website is at albertarein.com or realestateinvestingincanada.com.

So before you get coaching from anybody, you need to identify your Why to your coach. Otherwise, how are they going to help you with an offer if it doesn’t align with your goals? Sure I can help you get the houses but for what purpose. Will it ultimately serve you or not? I don’t know. Only you have the answers.

So here are some questions that I ask my students when they call or email me with a question like this:
(1) what is your purpose for investing
(2) why do you want these particular houses
(3) what are the comparables in the neighborhood over the past 2, 5, 10 years
(4) what is your exit strategy
(5) what is your entry strategy
(6) what is your contingency plan if your Plan A does not work out
(7) can you sustain these properties if the worst case scenario occurs
(8) how many cash flow scenarios have you completed on these deals (your minimum should be 10 to 18 forecasts from worst case to best case)
(9) how are you planning to manage the properties? Self or professional?
(10) are you a competent property manager and do you have systems in place to manage the property adequately
(11) is the professional company a competent property manager and do they have systems in place to manage the property well
(12) what is the demographic that you are marketing to
(13) what is your current financial position
(14) do you have a great relationship with your bank
(15) how do you plan to get financing in this climate when banks have red flagged real estate investors as undesirable customers
(16) do you have joint venture partners and if so, do you have your primary investor and your backup investor (in case the primary fails)
(17) do you have their paperwork ready to go (driver’s license, birth certificate, passport, Notice of Assessment, net worth statement, SIN number, residence, work address, etc)
(18) for that matter, is yours ready to submit at a moment’s notice
(19) do you have a bio prepared for submission with your proforma
(20) have you created a proforma on these deals, and if you haven’t, then get started on it right now

Without providing any benchmarks or milestones, your coach is operating blind in helping you acquire any properties. Helping you get the houses may not be the highest and best purpose for you. Helping you get educated and get clear on what you want and why you want it is a higher priority. Then you’ll know what you want and target specific properties that fill that desire.

These questions should be answered in detail and in writing as part of your due diligence on yourself. A coach or mentor will simply ask these questions and charge you for it.

I have three Number One Rules. Rule #1: Never be in a hurry to buy. Rule #1: Always buy equity day one. Rule #1: Never go negative cash flow. Otherwise you walk from the deal.

When it looks like other investors can make a decision in less than 2 minutes, it’s because they’ve spent the last 100 hours becoming educated with their goals, values, purpose, research, ideal investment and when the right deal comes along, they can see it like a beacon in the haystack of overpriced and undesirable deals.

My recommendation: if you’ve been spending years watching real estate from the sidelines, then you need to spend a few months studying real estate investing. My advice to you is DO NOT BUY anything until you know what you are doing. Buying real estate for the sake of buying real estate shows incompetence and ignorance. I’ve seen far too many people go into bankruptcy and foreclosure because they haven’t thought it through. Become an educated and well informed investor. Spend 100 hours to 160 hours conducting due diligence before you make any decision to buy. Spend the time to invest in yourself, then you’ll know what kind of offer to make and when to make it.

Hey, if it’s too good to be true, then it’s time to do your due diligence, not hand over your money.

I am outraged and disappointed that people continue to commit fraud by representing themselves as legitimate investments. I’m talking about the recent $400,000,000 (four hundred million) Ponzi scam in Calgary that took investigators six years to stop.

Interestingly enough, back in 2003 Steve and I saw Milow presenting his Capital Alternatives offshore investment opportunity and we immediately knew there was something wrong. You simply cannot guarantee or promise unusually high gains over a consistent period of time. It may be possible but you cannot advertise it or promote it. If you do, you are in contravention of securities law and misrepresenting your investors.

There just aren’t enough enforcement personnel that are able to keep up with these shady deals. That’s why it takes about four to seven years before these scams are shut down. In the mean time, they are still out there taking money from innocent investors with no intention of providing investment returns. So here are some due diligence tips when your antennae signals a red flag:

1. If it sounds too good to be true, then conduct extra due diligence. Legitimate investments do not have limited time, tonight only, rush offer deals to pressure you in to signing over your money immediately. You need time to do your due diligence before you hand over your money.

2. Do they have a proforma, offering memorandum or prospectus? They’d better and you had better read through every page. Read the fine print.

3. If a company has an offering memorandum or prospectus, what country is it in? There are many such documents created in other countries. They are not allowed to raise capital in your country unless they have followed securities regulation protocols. If the company has a proforma, this means they are raising private equity. Private equity are only allowed to solicit capital from three sources: (a) close family, (b) close friends, (c) accredited investors. Soliciting funds from the general public is in contravention to securities law.

4. What is the exit strategy of the investment? This is one of the first things I look for in the document. I know I can get my money in. How can I get my money out? It must be clearly explained in the document.

5. If the investment is offshore, what is your legal recourse if you want out? Do you have to go to the foreign country in order to sue and get your money back? Are you willing to take that risk?

6. Have you Googled the principles involved in the investment? Don’t just read the rhetoric on their own websites. They’re only going to say good things about themselves. Find out from third party sources. Their feedback will confirm if they are legitimate or people to avoid.

And the 7th tip: do not buy any investments on short notice unless you have consulted with your Mentor first. Emotional euphoria is the primary cause of financial disappointment, financial distress and financial ruin. People get caught up in the feel-good of a potential investment that has been made to sound better than it really is. Create the habit of Googling before you buy. A few minutes of due diligence is a great investment.

One thing became very clear during one of the presentations at Wealth Mastery. The U.S. market is headed for a major crash the likes of which we have never seen or experienced. Over the last four hundred years, every period of inflation and hyperinflation have always been followed by periods of deflation. This means that currency and real estate devalues.The U.S. market has another five years of downward trending asset valuations. If you think you’re buying cheap real estate now, wait another year or two or three. Luxury oceanfront condos in South Carolina that were selling for $750,000 a couple years ago were selling at $375,000 ten months ago, have now dropped to below $300,000. And it’s going to continue going down. I hope you get the message. Whatever you buy today is going to be worth less tomorrow. So be very smart and make sure you buy properties at well below current market value because you’re going to see ridiculous values in a few months.

The problem is there’s no cash. Everything’s in debt. Over 82% of all banks’ assets are embedded in real estate mortgages. Of the approximately $7 Trillion in U.S. checking accounts, this is really an illusion. These are really IOU’s for money, not actual cash.

Now take into consideration there is only $7 Billion in the FDIC (Federal Deposit Insurance Corporation). There isn’t enough insurance in place to cover all the money that is on deposit.

Despite all this, I see opportunity. The opportunity is to preserve the assets you currently have in your portfolio and reposition your portfolio to take advantage of the coming deflation. Some of the richest people made their money throughout the Great Depression. They had foresight and strategy which I am now focusing my attention on. My strategy is a four part plan to preserve equity, hedge equity, invest in unleveraged currencies and unleveraged real estate.

Read my July News in September issue for the link to Don R. Campbell’s report on the coming U.S. crisis. Preparation and timing are the foundation for successful outcomes.

Wealth Mastery
September 2-5, 2009
Newport Beach, CA
Frank Kern

In 2001, Frank was striving to earn $300 a day. He grew up in Macon, Georgia. Went through several business ventures that failed spectacularly. He was in the underground dog fence business and ran that into the ground. He then went into selling credit card machines door-to-door in the summer in Macon, Georgia. He listened to Tony Robbins’ tapes while living in a single wide trailer on a used car lot. He went into the internet and tried to be a spammer. He wasn’t successful and not much money in the spamming business. In the 1990’s, he heard Jeff Hall talk about how to have a successful mail order business. He heard this guy on the tape teaching you how to get parrots to talk. Frank went on the internet and used WordTracker.com and discovered that 70,000 people were using “parrots” as a key word search. Frank then set out developing the system to teach parrots to talk. He interviewed an expert, transcribed the notes and created an internet product on how to teach your parrot to talk. He generated $3,500 per month.

Encouraged and astounded by his success with parrots, his next venture was creating dog breed websites. He created a website for every breed of dog. He made millions and later sold those sites for millions.

Frank has 2 Golden Rules:

1. Thou shalt not fuck around
2. Thou shalt not be a pussy.

When he says it in person, it comes out really funny. Transcribed notes really don’t do Frank justice.

He went on to say that a 10% close ratio is a smash hit in the internet world. He has partnered with Tony Robbins on the New Money Masters series. On the first promotion, they converted 8% of Tony’s database.

PEOPLE MAKE YOU MONEY ……. Not a product.

Today’s selling is through kindness, compassion and connectedness.

#1. Give people free stuff. Capture the names of people who are interested in you. Make them happy and make them feel good.

#2. Deliver results in advance.

Every business has prospects and an end goal.
It’s all about Desire + Trust.

These are the top 3 reasons people don’t buy:

1. DWI Don’t Want It
2. DBY Don’t Believe You
3. AGNM Aint Got No Money

To make them want it, you must deliver results in advance.

It’s a wonder why so many people create a product for people who can’t afford it. Market to the affluent. They have money.

As an example, he explained how he made his first $1,000,000 on the internet. He used the serializer method on a $10,000 product. It sold out in 54 minutes. Prior to that, he was trying to sell the same product for $49. (That’s a whoa in my book.)

Remember that everything you have is given to you by your customers. Be grateful.

Notes taken by July Ono

Wealth Mastery
September 2-5, 2009
Newport Beach, CA
Brendon Burchard

Millionaire Experts Academy
Brendan built a $6 Million business in the last 18 months.

Experts At work: 4 Key Areas (snapshot of your business)

 
#1 BUSINESS CREATOR
This role is to generate revenue.
The challenge is lack of clarity, lack of connection with customer.

#2 BUSINESS OPERATOR
This role is execute and efficiency.
The challenge is competence, consistency and cash flow.

#3 BUSINESS INNOVATOR
This role is to be different, discover new values.
The challenge is comfort, creativity and competition.

#4 PEOPLE DEVELOPER
This role is to lead others to grow and contribute.
The challenge is to be courageous, compassionate and collaborate.

Now rate each of the 4 key areas out of 10.
Your business needs to be a minimum 7 out of 10 in any of these bubbles to have a productive and profitable business.

The Expert Lifestyle:
Creating and relating
Passion and knowledge
Anytime anywhere
Promotions are based on promotions
Pay equals the value you deliver
Don’t need a large team (3 to 5 people)
Inexpensive tools

The Expert Money Funnel: From the top of the funnel down …
Newsletter, eBook, Report
Book, Audio, Video, Membership
Speeches
Training / Consulting
Seminar, Event, Conference, Retreat
Certification
Coaching

The main thing is to keep the main thing the main thing.

Your wealth is built on your story of struggle.

Marketing = Power
Positioning = Success
Results = Credibility
Campaigning makes you rich, not the media.

#1. Right Positioning
Focused audience
Story of struggle
Story of finding solution
Solution framework
Proven results

#2. Right Promotions
Promote story and struggle
Fresh, content-driven
Strategic sequencing (campaigns)
Promo partners
Shopping cart
Client management system

#3. Right Package/Price
Easily consumable
Easily implementable
High quality
High $ margin
Awesome fulfillment

8 Things Highly Paid Experts Do
1. Choose mastery.
2. study their subject and interview other experts, intensely looking for patterns and best practices.
3. Create arguments on what to pay attention to, what things mean, how things work and how things might turn out.
4. Simplify complex ideas by building frameworks.
5. Write, speak, record and package knowledge.
6. Campaign (not promote) their expertise. A campaign is a strategic set of promotions that train customers. How are you going to train them to use your system #1 thru $10.
7. Charge expert fees. (more than you would think)
8. Distinction, Excellence, Service

Brendon recited an Elisabeth Kubler Ross quote (beautiful)

Notes taken by July Ono

I have been asked by several people how I plan to achieve my $2.224 Trillion Dollar goal. Here is my response:Our money blueprint shifted on November 25, 2001 thanks to T. Harv Eker of Peak Potentials Training. We attended his 3-day Millionaire Mind Intensive and we’ve been going forward ever since. The story of our success is posted on our website at OnTheBeachEducation.com. On June 25, 2003 I was challenged by a mentor to think even bigger. If money were no barrier, what would I be do have? What would be my BHAG? Big Hairy Audacious Goal. And that goal happens to be world peace and prosperity.

Step one towards world peace and prosperity, is to work on me first; to bring peace and prosperity into my life first before I can bring this to other people. My message and inspiration have reached a few thousand people so far. My mission is to inspire and empower the world to live in hope and victory in order to create a global community based on collaboration, contribution and cooperation. My vision is to elevate the enlightenment and consciousness of the planet. My purpose is to be a catalyst for the creation and realization of world peace where all nations of the world co-exist in harmony and mutual understanding.

Part of Step One was to bring about financial independence. (We are currently working on absolute financial freedom.) This was accomplished through developing a competency in buying real estate with other people’s money. We chose real estate because it does not require any specialized education or accreditation. We are investors, not real estate agents. There is a big difference. As a licensed agent, there are restrictions on what kind of real estate I can purchase. Otherwise there is a conflict of interest that occurs.

Between November 25, 2001 to December 31, 2001, Steve and I mapped out a plan to achieve our financial freedom day. We started “investing” on January 1, 2002. At this time we both had large credit card balances. I was $40,000 in debt and Steve’s was more. I spent 6 weeks studying and then it was time to put all that study into action. I felt like quitting every day but I got up every day and kept going. Learning a new way of being, developing a new skill-set out of my current competency was frustrating. And guess what? I was able to turn my frustration into fascination. I made a breakthrough six months later and was able to purchase my first deal, a 4-plex, with $3000 per month cash flow. After expenses and debt service, there was $2000 per month positive cash flow. I retired on December 31, 2003 and became a full-time real estate investor.

Mind you, I was spending an additional 6 to 8 hours a day on top of my full-time job doing real estate investing. My friends corralled me and thought I was part of a cult because I never went out with them. Every time they called, I was going to a seminar, an open house, taking a Realtor out for lunch or dinner, networking with mortgage brokers, hosting my own mastermind meetings, going to breakfast networking events, lunch events, and dinner events. I canceled cable so there was no television. I didn’t listen to the radio. I listened to personal development CD’s. Every spare moment of my time was spent in complete immersion. I emerged a net millionaire in less than 2 years.

On February 7, 2007, my husband chose retirement from his profession as a third generation baker. He was making more money from our real estate investments than his bakery business. We became a full-time real estate investing team. We just completed the purchase of 7 apartment buildings in Ontario, Canada bringing our total portfolio to 10 apartments (440 doors). We are now embarking on creating a private REIT (real estate investment trust) in order to achieve my November 25, 2010 goal of owning a $100 Million Dollar Real Estate Portfolio. This is a stepping stone towards my $1 Billion goal, towards my $100 Billion goal, towards my $1 Trillion goal, towards my ultimate goal of $2.224 Trillion Dollars.

My flowchart of the July Empire is comprised of thousands of contractors and affiliates spread across a range of profit centers known as IBO’s (independent business operators). It takes a lot of time and energy in the beginning to get the flywheel started (read the book Good to Great by Jim Collins). Once the team is in place and the business is running smoothly, this is when another business model can be added. I know that Keith Cunningham has 7 businesses. Brian Tracy has something like 35 businesses. It all started with one business in the beginning. I have factored in 80 years (2 more lifetimes) to accomplish my mission, vision and purpose. If it took 40 years for me to achieve financial independence, I feel that the next 40 years will be spent in creating and building the infrastructure and the 40 years after that in stabilizing the business and making it sustainable. All of the IBO’s are designed to support a much needed charity or non-profit in a sustainable model. Part of my flowchart includes: supporting women in politics so that we have female world leaders in positions of power, creating assisted living facilities for the elderly in partnership with an apprenticeship program for Covenant House (runaway youth), creating a July Bank for micro-lending in developing countries, creating an Academy for Enlightened Entrepreneurs (sort of like a Keith Cunningham’s 4 day MBA), creating an education model for gifted children (all children are gifted) that incorporates the 9 intelligences instead of the 2 that is the foundation of the current school system, repurposing our medical system so that it is in partnership with holistic medicine and bring prevention into our western culture, creating a media and publishing division for cartoons and comics (teach children about financial independence), enlightened movies that shift people into empowerment, and a host of other items that is too long to list here. I think you get the idea that I am manifesting a huge intention. And God has promised me that if I can think it, then I am responsible to see it through.

My exit strategy is August 8, 2088, 14 days past my 126th birthday. I think that would be a good day to go home and be with my heavenly Father. Or I can always re-negotiate another exit strategy depending on what’s going on at that time.

I started off with these humble goals that I wrote down on November 25, 2001:
I earn $2,000 per month passive income on or before November 25, 2010. (I now refer to passive income as leveraged income, per Keith Cunningham’s reframe.)
I own a $1,000,000 real estate portfolio on or before November 25, 2010.
I have zero balance forwards on my credit cards by November 25, 2010.
I own my primary residence outright by November 25, 2010.

Please note that because I was vague with my original intention, we finally bought our home with cash in 2005. It could have been sooner had I been more specific with the location, size, price. So every time I accomplish my new goals, I re-negotiate the amount and I leave the exit date the same. I completely underestimated my ability to achieve the $1,000,000 portfolio in 9 years having accomplished that in less than 2 years. Once I achieve the $100,000,000 goal, this translates into a minimum $1,000,000 per year leveraged income.

Remember this. There are no unrealistic goals; only unrealistic time frames.

Yours in abundance,
July Ono

First of all, this is the wrong question to ask me. My question back to you is: what are you planning to do with the Foreclosure knowledge. Knowledge in and of itself is useless unless you plan to take action with it. So what is your strategy? What is your intention with this knowledge? If you are serious about getting into Foreclosure investing, are you prepared for the learning curve? Are you prepared for the leg work? Have you Googled the industry to glean as much information about Foreclosures that you can? Are you aware that the mortgage default rate in Canada is less than 0.25% nationwide?

Or are you getting into Foreclosures because it sounds like easy money? There is no investment strategy out there that is easy money. They all take work and effort. They all require an initial 2 to 3 year learning curve.

Lease Options, Lease To Own, Lease To Purchase or more commonly known as Rent To Own strategies is the same. It takes at least 2 years to become competent with this strategy.

The thing is to find out what your investing style is and match it up with the type of investment that suits your personality and disposition. And stick to one thing for at least 5 years before you move on to another investing strategy.

The great investors stick to one investing strategy their entire lives. They focus and maximize their efforts in one arena of knowledge. They become the expert. This is how you model successful people. Follow their strategy. Running after guru after guru who will teach you their tricks of the trade serves only to disperse your energy and focus. Get focused. Create your 5-year plan. Stick with the plan.

I was talking about multiple streams of income with a gentleman that I met in Chicago at the James Ray Harmonic Wealth event in July 17-18, and he asked me to share my plan with him. I am sharing my response to him below:

When embarking on creating multiple streams of income, you must start with one single-minded focus to get you started. The mistake most people who start their personal development journey make is starting several businesses at the same time because there are so many opportunities. My husband and I chose real estate. We started with our first investment in 2002 and worked our way from condo, townhouse, SFD, 4-plex to apartment buildings. We just finished acquiring our 9^th apartment building last Friday and closing on our 10^th building on Monday. These investments provide active income (from our hands on management), and also provide passive income (we invest alongside our investors). So within our real estate portfolio, we have multiple streams of passive income from over 440 units.

In the process of becoming real estate investors, I was approached by students who wished to be mentored and coached. It got to be so many that we created an education company to help other people learn how to buy real estate with other people’s money. This is an entirely new business model. The seminar industry has its quirks to deal with and you learn fast what makes money and what doesn’t. This level of business requires Train The Trainer training if you want to make lots of money. The investment of $14,000 is a starting point to get the basics of how to create a seminar business. There is also the 10 years of training as a professional actor and voice training which helped.

In the education business, everything can be made into a product and re-purposed several ways. You can record a live seminar/workshop and you have a DVD, audio CD, transcript, material for a book, material for a teleseminar/webinar, home-study course, e-reports, articles for publication and material for press releases.

All this requires a business plan with a strategic action plan with specific and measurable milestones so you can measure your results.

So there you have your MSI’s in real estate, seminars, workshops, books, DVD’s, CD’s, home-study courses, online courses.

Basically anything and everything you do can be made into a product.

Now it’s time for you to write out your plan, with your exit strategy, with specific and measurable results to be achieved by a certain time frame.

And remember, there are no unrealistic goals; only unrealistic time frames.