How to Create Wealth in ANY Economy!
“There are ways to create value regardless of your financial position provided you are learning how to create value for individuals who are seeking it”
J. Massey, Real estate entrepreneur/ investor, Author and Speaker
J Massey, has amassed a ton of property in the US. He is known as a ‘master facilitator’ of Robert Kiyosaki’s Cash Flow Quadrant. He has built an empire of real estate education, online videos and courses. However, this success didn’t come easily to him, J shares how he got into real estate investing, and a few lessons to create wealth in any type of economy, irrespective of the business vertical.
About Jay:
- Jay originally moved to California to pursue acting and ended up in customer services.
- He currently runs an empire of real estate education, videos and courses.
- Jay has published a book on his cash flow quadrant called Cash Flow Diary.
- He also has a podcast of the same name.
Something unrelated to real estate investing:
- Jay performs rap songs at church!
What I learned
Create value for those who want to buy from you:
J explains, it’s important to add value to whatever we sell. Applied to real estate, he explains, it’s not a question if someone needs a roof over their head (they definitely want it). It’s more important to understand at what cost do they want it and then provide them at the same cost. As we progress and learn, it’s not really buyers who decide the price but us, who control the production and ultimately the value in what we sell.
10 steps to prosper in any economy
J says, for anybody to prosper, it’s important that they have the desire to grow and be open to learning new skills by utilizing their time. It takes the correct perspective; Identify opportunities where people will value a product you have created!
At its core the steps 10 to prosper in any economy, as quoted by J are:
1. Desire: Desire to change your current situation, you are fed up with the norm.
2. Time: What you do with your time? It’s our greatest assets
3. Skills: We need to be using our time to gain new skills and talents, how to build an asset!
4. Building Relationships: Looking for new skills you develop new relationships
5. Credibility: You will need to develop credibility
6. Money: Once you have credibility can you ask people for capital (money) to fund your business
7. Cash flow: Once you have the capital you create cashflow for people/investors in your business
8. Think outside the box: Create value by thinking outside the box
9. Think Creatively: Create something that someone will value
10. Be Courageous and take action! Getting to this point is incredible, but remember you have to continuously be taking action.
Four Ways to Create Wealth: PAQ (Profit Analysis Quadrant)
1st quadrant – Appreciation
2nd quadrant – Depreciation
3rd quadrant – Amortization
4th quadrant – cash flow- expanses= returns
5 types of Appreciation:
J explains the 5 types of Appreciation as:
–Found, where an investor negotiates a highly discounted deal and instinctively knows the bought property is worth more than what he paid.
– Forced, where one buys a property in a bad shape and invests in renovation, which increases its value.
– Phased, Coupling services together to make things convenient for the end buyer. For instance, providing laundry services to the inhabitants with free pick up and drop, and increasing the rent slightly.
– Inflated, increase in the price of the property because there’s more circulating in the country, it doesn’t help you buy more.
– Passive, When real estate developers decide to, just price a particular area higher than earlier.
Top investing tips:
Most successful habit? The 40 points worksheet where you get points for every activity that results in business.
Most influential tool – Jay’s CFO
Most exciting project– An upcoming field trip for Cash Flow Diary students.
Most influential person – Jesus
Best US deal completed to date – The first deal because it opened the door to real estate investment.
Contact – cashflowdiarypodcast.com
More about the cash flow quadrant at richdad.com/the-cashflow-quadrant
Happy Investing!