5 Biggest Mistakes People Make When Investing in Real Estate

Would you like to avoid the 5 Biggest Mistakes People Make When Investing in Real Estate?

Well, pay close attention to today’s training and learn what I’ve learned from multiple millionaires who are successful real estate investors, including Tom Wheelwright from his book Tax-Free Wealth, and Robert Kiyosaki from his book Rich Dad Poor Dad.


5 Biggest Mistakes:

1) Thinking that buying a home to live in is an investment

-People end up using all of their savings as a down payment

-They stop saving when they realize how big their mortgage is

-end up paying money to the bank in mortgage interest

-they spend all their time improving and maintaining their house

-they don’t get experience as an investor

-Property taxes might increase at any time, causing some home owners to have to sell their homes

– Consolidating debt with home equity loans often causes increased spending, which leads to further debt

2) Not properly looking at the cash flow of an investment property

-Property Taxes

-Insurance (mortgage insurance, hazzard insurance, flood insurance, etc)

-Maintenance (plumbers, handy men, roof repair, leaks, etc)

-Management (handle rental laws, and evictions, filling vacancies, screening renters)

-Tenancy Vacancies

-Cost of down payment

-Cost of mortgage fees, points, interest

-Fixed interest mortgages vs adjustable rate

-Legal fees

-Accounting fees

-Tax prep fees

3) Buying your first rental property out of state, or out of your country

-Paying more for maintenance (not being able to check work)

-Management will be less likely to service you (as you are farther away)

-Cost to visit your property

-Lacking experience to run your own property and not gaining it as the property is out of state or out of the country

4) Not Claiming Depreciation for the building

According to Chapter 7 of Tax-Free Wealth, by Tom Wheelwright, one of the biggest mistakes people make, is that they do not claim depreciation of their real estate investment property.

Why, it’s because they are lazy, or their CPA is lazy, or they are ignorant of this important deduction.

In his example, he shows what would happen if you have an investor who buys an $800,000.00 apartment building that cash flows $12,000/yr, or $1,000/mo.

$800,000 (cost of home)
-$200,000 (cost of land)
$600,000 (cost of building and contents)
-$100,000 (cost of contents)
=$500,000 (cost of building)

x 3.6% (depreciation for building)
=$18,000 (depreciation deduction)

Without claiming depreciation for the building, you would have to pay taxes on the $12,000 earned from the rental property.

When you claim the $18,000 in depreciation, the rental income is completely tax free, because your business claims a loss of -$6,000!

Not only that, if you structured it properly, the -$6,000 will pass through to your ordinary income tax, reducing your taxable income by $6,000!

5) Not Claiming Depreciation for the contents of your rental property

Tom Wheelwright points out that separating the contents from the value of the building alone is the proper way to file your taxes.

There must be a study conducted by either a CPA or an engineer to evaluate which parts of the investment property are considered contents, and which parts are considered the building structure.

The good thing for an investor, is that contents depreciate at a much faster rate than the building, which leads to a higher percentage used to calculate the depreciation of contents vs. the building structure.

In his example which I showed above, the contents of the building were valued at $100,000.

$100,000 (contents of the apartment building)
x 20% (depreciation for contents)
=$20,000 (depreciation deduction)

So, with the building depreciation, you can reduce not only the taxes on the rental income (you pay no taxes), you also reduce your personal taxable income even more!

$12,000 (rental income)
-$18,000 (building depreciation)
-$20,000 (contents depreciation)


Examples of How To Keep Your Money & Pay Less Taxes – from Tax-Free Wealth by Tom Wheelwright

In this video training we discuss Examples of How To Keep Your Money & Pay Less Taxes – from Tax-Free Wealth by Tom Wheelwright.

How much did you pay in taxes in 2016?

Can you guess how much my friend worth $24 Million Dollars paid?

I recently hosted a private training with a local real estate investor/developer on June 7, 2017, and the shocking truth of his tax bill was revealed…

In 2016 he paid in taxes only $5,000!!!!!!!!!!!!!!!

How did he do it?

How is it he pays less in taxes than most people working pay check to pay check, and he is a multi millionaire?

The key to wealth is in the details…the tax details!

BUT how can a working class person learn to understand taxes like the ultra rich?

Well, that’s why I’m here, to make the secrets easy to understand for everyday people, just like you and me.

Watch this video training and be ready to finally understand how to use the tax laws to create more money in your pocket.

The First 3 Wealth Files – Are You Programmed To Be Rich?

Did you know that, according to T Harv Eker in the book Secrets of the Millionaire Mind, we have wealth files in our brain?

These wealth files determine whether we are going to be rich, middle class or poor.

We can change our wealth files too if we put in the work!

This blog will focus on the first 3 Wealth Files, and the exercises you can do to reprogram your wealth files to create a rich life!

Wealth File #1

Rich people believe “I create my life.”

Poor people believe “Life happens to me.”

DECLARATION “I create the exact level of my financial success!”

Touch your head and say “I have a millionaire mind!”

1. Every time you catch yourself blaming, justifying, or complaining, slide your index finger across your neck, as a trigger to remind yourself that you are slitting your financial throat.

2. Do a “debrief.”  At the end of each day, write down one thing that went well and one thing that didn’t.  Then write the answer to the following question: “How did I create each of these situations?”  If others were involved, ask yourself, “What was my part in creating each of these situations?”

Wealth File #2

Rich people play the money game to win.

Poor people play the money game not to lose.

DECLARATION “My goal is to become a millionaire and more!”

Touch your head and say “I have a millionaire mind!”

1. Write down two financial objectives that demonstrate your intention to create abundance, not mediocrity or poverty.  Write “play to win” goals for your:

a. Annual Income

b. Net Worth

Make these goals achievable with a realistic time frame, yet at the same time remember to “shoot for the stars.”

2. Go to an upscale restaurant and order a meal at “market price” without asking how much it costs. (If funds are tight, sharing is acceptable.)

P.S. No chicken!

Wealth File #3

Rich people are committed to being rich.

Poor people want to be rich.

DECLARATION “I commit to being rich.”

Touch your head and say “I have a millionaire mind!”

1. Write a short paragraph on exactly why creating wealth is important to you.  Be specific.

2. Meet with a friend or family member who is willing to support you.  Tell that person you want to evoke the power of communication for the purpose of creating greater success.  Put your hand on your heart, look that person in the eye, and repeat the following statement: “I, _________[your name], do hereby commit to becoming a millionaire or more by _________[date].”

Tell your partner “I believe in you.”

Then you say, “Thank you.”


Follow the exercises, and see your wealth files change to be set for wealth!

Please put your experiences and your answers to the exercises in the comments below!

11 Key Steps to Finance Your FREEDOM

Would you like 11 key steps to get you on the path to financing your freedom?

I’m talking about time freedom, the freedom to choose your lifestyle, the freedom to work on your own projects, take a day to meditate and work out, go to matinees with your spouse…whatever you want.

Do you want real freedom in your life, so that you have time time to really explore what you were meant to achieve, bring forth and accomplish on this planet?

That’s what today’s video training is all about, the 11 Key Steps to Finance Your FREEDOM.

Freedom is a lot closer than you think!

P.S. I left my bank job on Dec 23, 2017 and have since been helping become financially free faster, CLICK HERE to see how I can help you spend more time with your families, and doing what you love!

Tax Strategies That The Middle Class Miss Out On

Ever wonder what tax strategies that the middle class miss out on…and the wealthy seem to be using all the time?

Well, this blog will open your eyes to the possibilities that you may have not considered for yourself.

I learned entrance into a smarter way to live my life and do my taxes back in 2009, and haven’t looked back since.

Yet I’ve seen so many members of the middle class who never heard of these strategies.

Some of them have heard, however, still have not implemented them, paying thousands more to the IRS every year than they are required to by law.

Why is this?

In this live webinar starting at 6:30am HST / 11:30am EST, Joe Stauffacher and I will be showing you exactly what tax strategies that we are referring to, and how to implement them in your life today.

Be sure to get a pen and paper, or your tablet of choice, or just make time to pay close attention, as this webinar will have a positive impact on your life and the money you get to keep for yourself and your family.

P.S. I love blogging, researching and sharing what I learn and do to create financial freedom in my life and for others.  If you have a passion, and you want to learn how to use it to create your own online business, then CLICK HERE, watch the free video and get started!


One Millionaire’s 15 Minute Ritual To Obtain Financial Success

Have you ever wondered how millionaires make the massive wealth that they do?

Ever see someone who is ultra successful who always seems to have great energy and is very productive in so many projects?

How do the mega-rich read so many books, and stay so educated and on top of the market?

Well, from the words of one successful millionaire, it’s important to follow certain rituals to create balanced energy throughout your day…

First, it’s important to always get at least 8 hours of sleep…

Second, if you have family, schedule time to be with your family, so that you don’t feel like you’re neglecting them…

Third, do your most important work at the beginning of the day…

Fourth, break up your work into 90 minute sessions

Fifth, follow a 15 minute ritual to re-energize and refocus…

This 15 minute ritual includes 5 minutes of physical activity, like kung fu, or dancing or singing…

…then doing some meditative chanting…

CLICK HERE to see a video from one millionaire as he explains his 15 minute ritual that takes him to the next level in his entrepreneurial online business…

The Working Parent’s Guide to Financial Freedom

Are you a working parent who wants to become financially free?

I have created The Working Parent’s Guide to Financial Freedom, which is designed specifically to help extremely busy working parents…

Benefits of Financial Freedom for Parents

In the past, many couples had the wife stay home and take care of the kids. That’s what my Mom did anyway…

In this day and age, most parents both work to bring home enough money to support their family.

In addition, we also have a lot of single moms and single dads who have to find a way to make the money and raise a family all at the same time!

Financial freedom means that money comes into your life without you having to spend time to work…this happens through multiple streams of income depending on how you invest your Financial Freedom money…

Becoming financially free is very beneficial to parents!

The parent or parents who want to spend more time with their children can now choose to stay home and raise the kids.

You can do home schooling…

travel with your whole family…

spend quality time together out in nature…

This doesn’t mean you don’t work anymore, as you may have a career that you do enjoy…

However, if you choose, you can be at home to take care of a sick child, and you can rotate with your wife or husband, allowing you both to follow your passions or career and still be there for your kids…

How Parents Can Become Financially Free

There is a strategy taught by pretty much all books written on financial success and planning that will lead to financial freedom…

These books often do not address the specific needs of working parents, and that’s why I create the Working Parent’s Guide to Financial Freedom…

This book addresses the following obstacles faced by working parents:

1) How to set up an AUTOMATED savings and investing strategy

2) How to schedule Investing Research into a very tight working and parenting schedule

3) Where to allocate your money for maximum passive income, while working and being with your kids

Claim Your Free Copy

As a free gift for signing up for the Yes Financially Free newsletter, I will be sending you a free copy of this Working Parent’s Guide to Financial Freedom…

The weekly newsletter will give you information on money management, investing, saving and other advanced financial freedom techniques…

To sign up, just fill in your name and your best e-mail address in the form below, and it will be sent to you instantly.

You can start creating wealth and financial freedom for yourself and your family as soon as you put the steps in the guide use…

So act now, enter your name and e-mail, and get your free copy of The Working Parent’s Guide to Financial Freedom!


Mey here on a beautiful Tuesday morning blogging about one of the biggest concepts I’ve ever come across: MORE

What does MORE mean to you?

When you hear the word MORE do you think positive or negative thoughts?

Honestly, when I used to hear the word more, I thought negative thoughts…

…I used to equate MORE with selfishness, and that if I always wanted more than I would always be chasing happiness or wealth or whatever it was I wanted MORE of, and that I would never be satisfied…

…that is what I thought MORE was all about…

Well, I recently have been taking a class called “Bringing on More” which is about becoming a better presenter, and be able to articulate and also let people know about and have the opportunity to register and attend the PSI Basic Seminar

Which is often called the MORE seminar…

My Story of Wanting MORE

…back in January of 2012, a friend named Bob asked me to lunch and when he asked me how I was doing, I started crying!  (really weird response yes?)

…the reason I started crying was because I had overdrafted in my checking account that morning…

…and that was the 2nd time I had overdrafted in a week…

…and I worked at a Bank and I had heard that people who overdraft often are put on a list that goes up to Senior Management…

…and if you overdraft over a certain amount of times, you get fired…

Makes sense right?

Do you want someone working at a bank who doesn’t know how to handle their finances?

I was frustrated, embarrassed and felt like a failure…

Well, Bob was real nice, gave me all of these tissues to wipe my tears and he told me about the PSI Basic Seminar…

He told me he learned tools and techniques there that he’s used to create more money in his life…

…in fact, his finances were great!

I ended up going to the seminar that month, and have used tools such as Screen of the Mind and Intention Mechanism to completely change my financial life…

From January 2012 to now, my Networth has increased over $100,000…

…and so far this year guess how many times I’ve overdrafted?

You got it right!  NONE.

Why Wanting More and Becoming More is Crucial to Life

If you are like me, you might not think that wanting more and becoming more is actually crucial to life…

…I used to think that wanting more means taking from others…that’s simply not true…

…think about a tree…

Quote from Plato on Life and Growth
Quote from Plato on Life and Growth

…a tree will grow as long as it’s connected to it’s roots…

…it will grow higher, create more leaves, it will become thicker…

…that is a tree and that is what life is…

…as soon as you cut the tree from it’s roots, and it stops growing…

…let’s say you cut the tree down and made it into a chair…

…that chair looks pretty stable, and may last a long time, however, everyone knows that it is in the state of decay…

…the wood is not growing anymore, and now it is decaying…

There is no point where a tree reaches a stable state, where it just stays the same…

…there are just 2 states, growth or decay…

…and this is true for all of life…

…so, if I’m looking to be stable, or looking to be comfortable then I am basically giving up on life and wanting to decay…

…when I realized this it was like I was pulled awake…

…so that’s why I always want to grow and learn new things…

…that’s why once I master a job I need to move on to bigger and better things…

…because I’m alive and in order to continue living, I need to grow…

How To Get More of Anything You Want

Is there something in your life that you want to get more of?

I know a lot of people including myself, who want more money…

..and I’ve finally come to realize that it’s a good thing…

wanting more money is a good thing…

…so the next question you probably have is how?

…how do I get more money in my life, and get it now?

…I think we all know if we go out and start working we can earn money and then have more money…

…the big question is, how can I have more money now?

…how can I make it happen faster?

That’s what the MORE seminar, or PSI Basic Seminar, is about…

In 3 days they teach over 80 different tools and techniques that help students get more of whatever it is that they want in their lives…

…and once you take it, you can re-audit as many times as you want, and relearn the tools, for the rest of your life for free…

…and if you don’t get everything you want out of the seminar, you can tell them in writing and they will refund all your money back minus a $50 processing fee…

So, if you do want more in your life, I invite you to attend the PSI Basic Seminar…

…You can find the city closest to you and the best time to take it, as well as register for the next PSI Basic by clicking here

The PSI community has been changing lives for over 43 years!

It’s time to make a change in your life, and CLICK HERE to register for the next PSI Basic Seminar near you, and make more money, and have more of what it is that you truly want sooner.


I do not make any money or affiliate income from promoting or from you registering for the PSI Basic Seminar…

…I do volunteer staff, and also get tremendous value from the courses that I have taken with PSI…

…I won’t even know if you registered through this blog, so I won’t even know you are taking this class unless you contact me and let me know…

…my income for my internet business comes from blogging and helping others learn to blog about what they love, and if you want to learn how to make money online then CLICK HERE

A special thanks goes to Mark Tajiri, a truly inspiring PSI instructor, teacher and friend who always says the most positive and inspiring things…

…he helped me have a better understanding of the concept of more

I’m truly grateful for the time he took to teach us how to Bring on More, and his care and service to the community =)

Thank you Mark!







It’s a windy evening in Honolulu Hawaii, and I’m in a cafe with my Mom blogging a review of a potentially high dividend yielding stock ETP – Energy Transfer Partners LP...

If you are interested in Financial Freedom, you might be like me and are interested in creating more and more passive income for yourself…

…well, I’ve been investing for dividends for over 5 years now and it’s been a bit of trial and error, and also has motivated to research all of the best higher yielding stocks available…

…so let’s dive into today’s pick, ETP – Energy Transfer Partners LP!

ETP is earning 12.81% so should you invest in this company?

Read on to find out more…

Energy Transfer Partners LP (Tickler Symbol: ETP)

Let’s get straight to the point, as of today 4-11-16 ETP is yielding 12.81% on a quarterly basis, and the last dividend earnings date was on 2/16/16.

The price per share at close of trading was $32.37, and it’s lowest price in the last 52 weeks occurred on 2/9/16 at $18.62, which was 5 days after the ex-dividend date on 2/4/16.

The highest price in the last 52 weeks was $59.37 on 5/1/15, so over the last year the price has decreased by roughly 50%.

From 1997 to 2000 the price averaged at $10/share, after which it steadily increased as high as $64.79/share on 1/1/2015.

Financials for the company can be accessed here

Etrade describes ETP as follows:

“Energy Transfer Partners, L.P. is a master limited partnership. The Company’s operating segments include Intrastate Transportation and Storage segment; Interstate Transportation and Storage segment; Midstream segment; Liquids Transportation and Services segment; Investment in Sunoco Logistics segment; Retail Marketing segment and All Other segment. It is engaged in natural gas operations, including natural gas midstream and intrastate transportation and storage, and interstate natural gas transportation and storage; Liquids operations, including NGL transportation, storage and fractionation services; product and crude oil operations, including product and crude oil transportation, terminalling services and acquisition and marketing activities and retail marketing of gasoline and middle distillates. It is managed by its general partner Energy Transfer Partners GP, L.P. Its brands include Sunoco, Stripes, Aplus, Aloha Island Mart, Exxon, Valero, Mobil, Shell and Chevron, among others.”

J.P. Morgan’s Review of ETP

Per TheStreet J.P. Morgan put out the following favorable review of ETP: “Double digit distribution secure, market underappreciates ETE support. We believe ETP has outlined a clear path to funding needed through YE16, after which ETP should start to realize the benefit of the ~$10bn of projects under construction. The ~$2.2bn drop down to SUN announced at the recent Analyst Day pre-funds nearly 70% of planned 2016 equity needs, with the potential for non-core asset sales and/or IDR waivers on future equity issuance to cover the balance. ETE’s growth depends upon a strong ETP, and we believe ETE will do what it takes to defend ETP.”

I looked up information on (ETE) ENERGY TRANSFER EQUITY L P COM UT LTD PTN and here is what Etrade has to say about it:

“Energy Transfer Equity, L.P. (ETE) is a limited partnership company. The Company, directly and indirectly, owns equity interests in Energy Transfer Partners, L.P. (ETP) and Regency Energy Partners LP (Regency), both of which are master limited partnerships engaged in diversified energy-related services. Its segments include Investment in ETP, including the consolidated operations of ETP and Regency; Investment in Lake Charles LNG, including the operations of Lake Charles LNG Company, LLC (Lake Charles LNG), and Corporate and Other, including the activities of ETE. The Company’s Lake Charles LNG provides terminal services for shippers by receiving liquefied natural gas (LNG) at the facility for storage and delivering such liquefied natural gas (LNG) to shippers. It, through ETP, operates various brands, such as Sunoco, Stripes, Aplus, Aloha Island Mart, Exxon, Mobil, Valero, Shell and Chevron. In March 2015, ETE transferred its 45% interest in the Bakken Pipeline project to ETP.”

Upon further research, I found that in early April a lawsuit was filed against ETE, by it’s potential merging partner Williams Cos.  The dispute is over the offering of preferred shares of ETE to ETE’s stockholder’s, without including Williams’ stockholders.

It is unclear how to lawsuit will pan out and whether their merger will be successful.

TheStreet’s review pointed up some valid points regarding the strengths and weaknesses of ETP.

  • Net operating cash flow has significantly increased by 104.27% to $860.00 million when compared to the same quarter last year. In addition, ENERGY TRANSFER PARTNERS -LP has also vastly surpassed the industry average cash flow growth rate of -26.50%.
  • Along with the very weak revenue results, ETP underperformed when compared to the industry average of 36.8%. Since the same quarter one year prior, revenues plummeted by 55.8%. Weakness in the company’s revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock’s performance over the last year: it has tumbled by 46.65%, worse than the S&P 500’s performance. Consistent with the plunge in the stock price, the company’s earnings per share are down 77.27% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, ETP is still more expensive than most of the other companies in its industry.
  • The debt-to-equity ratio of 1.30 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with the unfavorable debt-to-equity ratio, ETP maintains a poor quick ratio of 0.86, which illustrates the inability to avoid short-term cash problems.

Conclusion – Reasons I’m Not Going To Recommend Investing in ETP

After this review of the current conditions surrounding ETP, I personally would not invest in this company.

My reasons are that the litigation against it’s parent company ETE show ineffective communication between potential business partner Williams Cos.

Also, the revenues for the company dropped substantially in the past year, perhaps due to the drop in the price of gasoline.

In general, the energy market seems to be a little too uncertain for me to invest in at this point.

There could be a large shift away from fossil fuels in the near future that could almost wipe out the profits of this type of fossil fuel company.

What are your thoughts? Want to invest in ETE? Let us know by writing in a comment!