Your Life SolutionIf you read this website from start to finish, it will change your life! It explains how we can help you get everything you want and help others while doing so. Many people, especially in today's economy, are concerned about their family incomes, or more importantly, the potential for loss of their family incomes. We want to talk about how you can address this issue. First we want you to start by picturing a situation most people think of as retirement. When you are retired, you have money coming in called a pension. You don't have to work for it any more. You put in the work in the past, and you are getting paid now. This money comes in whether you are working or not. This is a form of income called 'passive income'. A pension is only one form of passive income. If you put money in the bank, each month you are paid interest. This is another form of passive income, but of course from your experience, you can't live off this type of passive income unless you have a LOT of money in the bank. A third example of passive income would be residual income from royalties. For example if you write a book, you put in a lot of time and effort up front, usually without getting paid, but you have money coming in from that work for many years to come. It is a critical point here to realize that you are effectively working for free with the expectation of long term gain. The fact is there are many ways you can have passive income coming in. We believe that if you have enough passive income coming in to cover all the expenses for your desired lifestyle, this will address your concern regarding loss of your family income. Simply put, if you have enough money coming in to cover all your expenses, whether you're able to work or not, you not only don't need to worry about losing your job, you won't even need a job! The challenge then is to find a way to get enough money coming in so that you can reach that point. When you have increased your passive income to a point that it covers all your expenses, that is typically called financial freedom. Generally speaking, passive income comes from two sources:
The example of the pension was kind of a special case. You are actually saving up part of your work earnings over time so that when you retire, your nest egg can pay you. It's kind of like your money working for you, but with one huge exception. In the case of the bank interest, the interest is the passive income. As long as you don't touch the deposit amount (the principle), your money will keep working for you. With a pension, you are actually withdrawing from principle and interest so your nest egg is diminishing over time. You have less and less money to work for you as time goes on. If you live long enough, you will run out of money. So how do you increase your passive income enough so that you are financially free? The balance of this website will tell you how. 1) The TheoryWe'll layout the concepts or guiding principles that form the foundation of the business models of EH Investments and its subsidiary businesses. The first concept is: "If you don't have what you need, find someone who does." EH Investments is first and foremost a business that focuses on real estate as the vehicle for revenue generation. The principle used for financing ventures is simple. If you have the time, knowledge and ability, but you don't have the money, find someone who has the money but not the time. Partner with them, and split the profits 50/50. We use this principle not only to raise funds for our projects, but also to build our teams. There are many people who have the time, desire and will power to be real estate investors, but they don't have the money. We have them provide their time and expertise for equity positions in our projects. This means they have a vested interest in the success of the project. The best part of this concept is there are many time consuming tasks that NEED to be performed, but don't require a great skill level so literally anyone can do them. The investors who put forth a financial contribution to a project get a prorated share in half the equity. The people who put in a time contribution have their time converted into a monetary value, and prorated against the other time contributions to determine their share of the other half of the equity. One might think this leads to only a small income or prorated profit, but that leads to the second guiding principe that is: "Think Big!" If you were to buy a house with the intent of renting it out, you may do well, or you may lose money on a continual basis. There are several reasons for this. Lets first focus on vacancy. If the house is vacant, you have 100% vacancy. If you have a 100 unit apartment building and you have a vacancy, you only have a 1% vacancy. Next, if you have a team of 10 people managing the operations of the 100 unit apartment building, each person can specialize. The tasks are performed better with fewer errors. If one person is managing all the operations of 10 houses, some tasks won't be performed well as the operator will be spread too thin and will be doing tasks for which they're not ideally suited. In addition, apartment buildings are designed for cash flow. You will get a higher cash flow per unit with an apartment building than you normally would with a single family residence. The same concepts would aply if you are flipping a house. If you try to renovate it yourself, it will take a LONG time, and chances are it won't be done as well as it would have been had you worked with professionals. If instead you team up and flip 10 to 40 houses, you do a better job in less time and can likely flip more volume. Furthermore, if there's a hold up on one house, you can move to another house to do your work so you're always working, and don't have a lot of idle non-productive time. These examples have both clearly outlined the next concept that is: "Systemize" Systems make it possible for ordinary people to do extraordinary things with predictable and repeatable results. If you don't believe this, think about some of the larger projects that have been performed by ordinary people over time. Pyramids, large ships, the Empire State Building, sending a man to the moon. Even building the rocket in the first place. If you've ever seen a Saturn 5 rocket up close, you'll really have a feeling for how monumental a task this was. The point is if you break everything down into it's simplest parts, and have different people doing each part, you can get a lot more done than you would if you tried to do it all yourself. "Specialize" Everyone is good at something, but no one is good at everything. You need to do what you're good at. If you're really good with numbers, you should do the books, not plaster walls. If you're good at designing websites, you may not be the best person to do the books. "Don't be a Do It Yourselfer" We actually discussed this already, but most people have the 'Do-It-Yourself' mind set, and it's really difficult to change a person's beliefs. How many times have you tried to save money because you can do it yourself? The more time you waste doing tasks you're not good at, the more time and money you waste. Once you get better at giving up control, the team will do better and will earn more money. 2) The StructureIt's easy for a person to buy a house and rent it out. It's not as easy for a person to buy and rent out a 200 unit apartment building. We invest other people's time and other people's money so we can do these big deals. Profits from the deals are distributed to the investors 50/50 (financial investors get half the profit and time investors get the other half). Financial shares are prorated based on how much money each participant invests. If they put in 10% of the money, they get 10% of half of the profit (5% of the total profit). In some cases, projects may be eligible for RRSP, IRA or 401k investment funds. Time investors also get their share based on proration, but it's based on the reported value of the time. The 50% share is broken into a fixed 10% for the business owner and the remaining 40% to the other time investors based on the reported value of their time contribution. For example, if a person is doing basic entry level work such as making phone calls, dropping off flyers, processing mail, etc, their work may be valued at $10 / hour. If they are doing the bookkeeping, their value may be percieved as being $25 / hour. An additional person may have been contracted to perform a task for a flat rate of $175 independant of the amount of time required to perform it. Each person would submit time sheets or the completed contract to document their input. The result for a group of 4 investors may look as follows:
An investor may invest both time and money and qualify for a prorated portion of the profit on both sides of the equation. There are two types of projects: Long Term Hold and Short Term Investments. Long term hold projects would be cash flow projects like purchasing large apartment buildings. Once the cash flow is establised and stabalized, the property would be refinanced to pay back the investors. This would be considered the pay out date. After that point, the property would continue to provide a cash flow to all investors. The life of the project is expected to be several years. Short term investments would be like flipping houses where the cycle of each house would be a sub-project and would have it's own life cycle and start and end time frame. Each cycle would be completed in a relatively short time and the sale would constitute the pay out date. At the pay out date of a project, after all expenses have been paid out, the initial investment of financial investors would be returned. After that, the time investors will be paid the reported value of their time. At this point the project is deamed to have broken even as all investors have been paid back. From this point, we will donate 10% of the gross profit to charity as an expense prior to calculating the net profit that will be distributed to the investors. The principle charity for US projects will be DonorsChoose.Org. The principle charity for Canadian projects will be micro loans. (If the collective investors for a project decide a different charity should benefit from the project, a different charitable recipient can be selected.) Once the charitable donation has been made, the balance of the Net Profit will be disbursed as outlined above. Even though profit will be distributed among the investing members, control and operational decisions of the project will be up to the owner and management team based on the project guidelines and business plan. In the above project flow, the financial investers were paid a return on their investment based on the performance of the project. If instead they choose to have a fixed return, that option is available. Terms of the investment are negotiable. 3) The Goals"Do what you're good at and get paid residual income for the rest of your life!" "Secure your family's income through multiple streams of passive income." "Help others while helping yourself." 4) Types of Projects / Big DealsOpportunities are everywhere. There are several types of projects we are incorporating into our portfolio. A simple list would be:
As our teams grow and our investor pool grows, we'll be able to not only finance some of the large projects (like the purchase of 100 to 1,000 unit apartment buildings), we'll also be able to finance several small projects like the purchase of homes for our members. There are many people who don't qualify for conventional financing for any one of many possible reasons, and many of them will be Time Investors who are on our teams. As we start to finance home purchases for people, we will start with helping our own team members before we start helping our clients (tenants in our big projects). Purchasing a 900 unit apartment complex is no different than purchasing a 20 unit building in principle. There are just more numbers and they are bigger. We currently have access to several properties we are intending to buy. We need to expand out team and our investor pool to make the projects happen. There are distinct advantages to buying mobile home parks and self storage facilities rather than large apartment complexes and there are creative financing techniques that work better with them than they do with apartments. When it comes to flipping houses, you need to know what the market is like. Some markets like Detroit, Michigan are buyers markets. You just can't sell in them. Even though you can get a real deal there, you don't want to buy there unless you have a buyer lined up. Other markets, on the other hand, are still seller's markets, even though the economy is soft. These are typically the markets you want to choose for flipping as you can unload the house quickly and move on to the next. Places like Winnipeg, Manitoba are strong enough to make flipping a viable option. There are ways to control a house and make money on it even though you don't own it. One way is commonly called a Sandwich Lease Option. For a process like this, a buyer's market like Detroit is ideally suited. When it comes to a business' success or failure, marketing is a key factor, and the internet is a primary tool for communicating a message with many people in a short time. We will need a specialized team we can tap into for marketing each of our other projects. This also dovetails nicely with continuity programs. Continuity programs are things like newsletters, CD of the Month Clubs, Membership Sites and so on. Once the marketing engine builds a list of prospects, it gives us a potential customer base to provide additional ongoing resources for which we can charge. Another part of the marketing engine is public speaking engagements. We can not only provide free public services, we can arrange speaking engagements that are paid, and that bring in an income stream for the team. They make it possible for us to build our team by sending our message out to many more people. 5) The ImplementationStep one is team building. We are expanding our team to make it possible to do the Big Deals. We are looking for both Time Investors and Financial Investors. To expand our team the first team members we need are Recruiters. They'll help us get the other team members such as more Recruiters, Financial Investors, and all the other more specialized team members. Since there are a number of different types of Big Deals or Projects we are working on, we have a widely varied list of people we are recruiting. They include but are not limited to:
Details of each position would be outlined as people are recruited and job descriptions are released. If you want to take part, but don't see a particular position for which you feel you would be qualified, just contact us and tell us what your strengths are. If we have a project where your skills would fit, we'll offer you an opportunity to take part. 6) SummaryThis is not a get rich quick scheme so don't quit your day job! This is the start of a backup plan to protect your family. As your passive income from working with us builds up, it will eventually get to the point where you don't need to keep your day job and you can choose to quit at that point if you want. If you wanted to do any of this on your own, you could do it on a small scale and you'd get 100% of the profit, but as we pointed out, it will take longer, have a MUCH higher risk, and would likely cost you a LOT more money. The goal is to work with a successfull team to build your success and your wealth. income for the rest of your life. This is how you Get Paid to Work for Free. Financial Freedom
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