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đź‘‘ Become the King of Cash đź’°đź‘‘
...And How To Protect That Cash When Investing
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Unbroken Insights
Become the King of Cash
Have you ever heard the saying “Cash is King”?
It is pretty common…especially in the world of investing. Before explaining how to be the King of Cash, here is an example of why it is so important.
Seller Smith lists his house for sale for $100K (it’s just an example, don’t criticize the amount) and he gets two offers. Buyer Alan offers $100K and Buyer Bob offers $99K. Seller Smith wants to maximize his price, so he accepts the $100K, right?
Not so fast! Buyer Alan’s offer of $100K is with financing. It will close in 30-45 days (or whenever the mortgage company feels like it), but only AFTER the lender approves Alan and AFTER the appraisal makes the lender happy. Buyer Bob’s offer of $99K is a cash close that will be complete in 7 days without any “IFs”.
Now which offer does Seller Smith accept? Definitely the offer from Buyer Bob, because Cash is King!
Let me ask you a few questions…
An incredible opportunity pops up and you need $25K within 3 weeks to take advantage…could you do it? Many people could not.
You want to take 6 months off work and not have to sell any investments to cover living expenses...could you do it? Most people could not.
The majority of regular people just do not have enough cash for opportunities, emergencies, or whatever else may pop up (like the “emergency” trip to Aruba I booked for our family last week).
So the big question is this…How do YOU become the “King of Cash”?
The old-fashioned, hard way to do it is to scrimp and save. Put money into an emergency bank account for years and let it sit there until you need it. That could still work. However, money sitting in a bank account is losing value every day due to inflation. That $25,000 you saved in the bank account for a new car 5 years ago is now worth almost $29,000 thanks to interest. However, the price of that car you wanted has jumped from $25,000 to $45,000.
The smarter way to be the King of Cash is to build passive cash flow from multiple sources…especially sources that automatically adjust to inflation. Here are a few examples I take advantage of:
Real Estate: On my rental properties, I get cash every month…and the amount goes up with inflation.
Agriculture: Every year—after harvest—my produce manager direct deposits cash into my account. That amount goes up with inflation every year, because it is based on the price of food.
I could share several other examples, but you get the point.
Here are the phases that you will pass through as you build your passive cash flow:
You start getting a little passive cash flow. Great! If you don’t need it right now, then reinvest it into more passive cash flow so that it compounds.
You have enough passive cash flow to cover your monthly expenses…even if it is just for a short while. You will have amazing feelings of financial freedom when you know that you could quit your job for 6-12 months and just live off passive cash flow for a while.
You have enough passive cash flow to cover your monthly expenses AND that cash flow will increase with inflation AND the cash flow will last the rest of your life. This is TRUE financial freedom. It does not happen over night, but YOU can get there if you set your mind to it.
Appoint yourself the King of Cash. Start creating—and building—your passive cash flow. Make it compound if you do not need it. Use it if you have an emergency or opportunity. The beauty is this…next month, there will be more.
Join the Unbroken Investing community to get the education on how to become the King of Cash, the opportunities to utilize, and the community of people on the same journey as you.
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Fraud Alert: Protect Yourself When Reviewing Investment Opportunities
I almost lost $150,000 this week. I was super excited about this new opportunity. That investment would enable me to own two newer semi trucks, the company would provide the driver, maintenance, insurance, routes, and everything else. My passive cash flow would be $8,000 to $15,000 per month. That sounds great, but not too good to be true (as I have other investments generating similar cash flow).
However, during my due diligence process, I was able to catch their fraud. It turns out the current CEO had done this EXACT same type of business last year and has more than a dozen investor lawsuits against him because he did not provide as promised. That company is in bankruptcy.
So, what would any slimy fraudster do? He legally changed his name, started a new company doing the exact same thing, and resumed his scheme.
How did I catch their fraud? During my research, I found old marketing images from the defunct company. The owner changed his name, but he used the EXACT same picture of him standing in front of a semi truck in the marketing of the new scheme.
What is my point with this? There are a lot of unethical people out there. Do your due diligence on every opportunity. When I come across any opportunity, I perform my own due diligence before I mention it to any of our members. If it passes, then that company presents to our community and multiple members also perform due diligence. Since each member looks at different things, this method covers a lot of ground (financial statements, websites, technology, owner background, client results, and much more). The more sets of eyeballs inspecting something, the more likely we are to identify something fraudulent.
For our members, we rate all the opportunities we are recommending (currently over 30 are open) so they know which ones are considered the best. We also have a list of opportunities we are considering (currently more than 35 additional). Some of those are nearly ready to move to the Recommending List. Others are on the backburner for now. Members can choose which ones they want to evaluate sooner than later.
Most importantly, we have a list of opportunities we are avoiding. The goal is to protect our members as well as teach some of the “red flags” to look out for - and there are some we are avoiding because they are clearly scams or frauds (such as the trucking scheme mentioned earlier).
But, there are also others that could be legitimate, but are having issues, such as a couple opportunities that have locked up all investor funds because they are under securities investigation.
Finally, there are some opportunities we are avoiding because they are not that great when you really get into all the math. For example, one of the opportunities pays 2-3% cash flow per month. That doesn’t sound bad. But at the end of five years the cash flow stops and you do not get principal back. In other words you receive 120-180% of your investment back over 5 years (2-3% times 60 months). That is an average annual return of 4-16%. That is not terrible, but it is not high enough to justify that level of risk. We can do much better, so we avoid that one.
Bottom line…there are lots of great opportunities out there to earn amazing returns on your investment, but there are just as many fraudsters that could cause you to lose your entire investment. Do your due diligence very thoroughly…or join us and let a community of extra sets of eyes provide you with additional security.