Tag Archiv: passive income

Time is your biggest asset, you need to maximize it. | Dave O’Hara

Tempus Fugit! as the saying goes. Time truly does fly, and frustratingly seems to speed up the older you get. I think there’s a name for that effect, but i’m not sure we need to really know it here. However, time is a finite resource for everybody and is thus the most precious in The World. Some of you out there have more of it left than others, but you can never be sure. The man with the big scythe always pops up uninvited.

We don’t make best use of our time though, and a good deal is wasted watching rubbish TV programmes or arguing on internet forums and Facebook about unimportant subjects. Time is the fourth dimension, and despite the best efforts of Einstein and Brian Cox, we can’t turn it back. It flows inexorably on, but each person has only a tiny snippet of it, then we’re gone.

The average life expectancy of a human in Britain today is about 80yrs (how many hours is that?). I know it varies by gender and by area of the country, but that’s roughly how long we have to make our mark on this Earth. That seems a long time, but let’s examine it in closer detail.

A 3rd of our life is spent asleep. That’s 56 hours of every week, or 27 years of our lifetime! That’s an incredible length of time just recharging our batteries. While we are asleep of course, we can’t do anything else. We can’t work or earn money in that time.

We don’t start work until 18 years old, and we stop when we are 65. That leaves us with a working window of 47 years. Still plenty of time to earn money though, right?

Now, let’s look at the week. Only 168hrs in each week, with 48hrs in a weekend. Most people only work on 5 days, so that leaves 120 hours. As we’ve already said, a third of our time is spent asleep, so that leaves us with 80 hours. Most jobs are 35-40hrs/week, so that means that during the week, we work for roughly 50% of our waking hours. No-one wants to work weekends, that’s family time (but plenty do).

Wages are typically between £8 and £12 per hour. So, doing a quick calculation, that limits earnings to between 35×8 = £280 and 40×12 = £480 per week. That’s roughly £1,100 to £2,000 per month. Tax will take a sizeable chunk out of that for most people. Indeed, mortgages or rent could easily consume 75%-all of this in certain areas of the country. It’s easy to see how most people have nothing much left at the end of the month.

So, what can we do about it? Conventionally, there are only two choices, we work longer or we get a payrise. We are already working for 50% of our waking hours, so increasing that will only lead to burnout and exhaustion. A pay rise? Most people only get 1-2% each year, and traditionally that is mostly eaten up by inflation. We are stuck! The answer is seemingly that most people can do little about it.

What is the answer? Is there an answer? Well, people like the Kardashians and David Beckham have stumbled on a way by being famous. The have multiple sources of income (perfume, endorsements, branding, media, public appearances, sponsorship) and the money rolls in 24 hours a day, 7 days a week. They appear to have multiple personas, all earning for 168 hours per week, 52 weeks of the year. They are money making machines! Can mere mortals do this too?

Well, to do it you have to think outside of the box. This is primarily a property blog and as most of you know, property is the way to a passive income. You do the work once (buy the house, rent it out) and are paid for it every month in rent. By rinsing and repeating this scenario, you can build up a nice little portfolio and a good income. But, remember what Grandma used to say about putting all your eggs in one basket? Rules change, markets crash and tenants leave. You need another secondary income stream to sit alongside your property business.

The Internet has made information the biggest product in the World. Everybody needs it and people will pay for it. This is where the opportunity lies to make limitless passive income. You don’t need a product or even a website, you can make really good money promoting other people’s products. Then, when you get good at it, you can start promoting your own products. What can you promote? Basically anything!

This is the way to earn money like the Kardashians and Beckham. It’s the ONLY way to break free from the hours/pay rate trap, because multiple income streams allow you to earn like there are 5 or 6 ‘you’s, all bringing in money 24 hours a day, 365 days a year. I’m enrolled with Wealthy Affiliate because I believe in multiple streams/diversity of income. You should seriously consider it yourself to both continue your education and maximize your potential.

 

Yellow envelopes take over the World | Dave O’Hara

Well, maybe not the whole World, but a very small part of it. Yellow envelopes are our secret weapon though. How many letters do you get every day in yellow envelopes? That’s right. None! If someone sent you a bright yellow letter, would you be intrigued by it’s uniqueness and be compelled to open it? We think so!

The whole point of writing to someone by conventional means is to have your letter read. If you can get them to do that, you are in a perfect position to get your offer across. Stats indicate that for every 100 letters you send, 10 will result in a call back, 3 of those will be seriously interested in the offer and one will actually sign up to your offer. So it’s a numbers game. If you want 10 sign ups, you need to send 1,000 letters. That sounds a lot, but you don’t need to send them all at once! Spread them out so you can take the phone calls, otherwise you’ll be deluged. One deal a month is fine, so send out 100 letters every month. In this particular type of property deal, each sign up should be worth £3,000 per annum, so after 10 deals in a year you’ll be receiving £30k of passive income! Awesome or what?!

Getting started is the hardest part. What should I ask? How do I ask the questions? What if they are hostile, or turn me down flat? Well, i’m no expert, i’ve only been doing this for a few weeks, but i’m getting more confident by the day and, believe it or not, people are usually nice. The fact that they’ve rung the number on your letter means they’re already interested in what you have to say, so don’t be afraid.

My advice, for what it’s worth is, try to strike up a natural conversation. Work your questions into the conversation so they don’t really feel like questions at all. I now say “Tell me about your house”, and folks will generally let you know all there is to know about the property they are selling. To find out if there is a deal to be had, you need to know the details of their mortgage (type, monthly payment, amount remaining) and you also need to find out how motivated they are as a seller.

Once you have gathered all your info (always have a proforma sheet available to fill in the blanks as you talk), thank them for their time and schedule a call back after you’ve crunched the numbers. Always ring them back at the agreed time, it builds trust and let’s them know you’re professional and value their time.

Crunching the numbers is all about working out if there is any money in the deal for you both. It needs to benefit both the seller and you the buyer otherwise there’s no point in making a deal. I’ve learned quickly what sort of nett rent I need for a particular purchase price to make a deal viable. Get used to that too. If you need to cover a £600/month mortgage but local rental income is only £500/month then it makes little sense. Aim for a minimum of £250/month nett positive cashflow (£3,000 per annum) if possible.

Comedy Call

Want to hear about a comedy call from a guy in Middlesbrough? This actually happened recently when we ‘yellow lettered’ the Teesside metropolis. You need to imagine the caller speaking in broad smoggie.

Me: “Hello, Dave O’Hara speaking, how can I help”?

Caller: “Alright mate, i’ve ‘ad a letter off yers”

Me: “Ah yes, we’ve sent a few letters to houses we’re interested in buying, can I ask the address please so I’m certain which house we’re talking about”?

Caller: “Aye, it’s number 10 mate”

Me: “And can you tell me the street name as well?”

Caller: “Aye mate” (long pause)

Me: (quickly realising this might not be straightforward) “OK, tell me about your house”

Caller: “It’s not my house mate, know what am sayin’ ?”

Me: “Are you the tenant?”

Caller: “No mate, it’s me mam and dad’s house like, know what i’m sayin’? ”

Me: “Ah right, well I think it’s them I need to speak to”

Caller: “Aye, probly”

Me: “Can I speak to them please?”

Caller: “Nah, ther in Benidorm mate, know what am sayin’ “?

Me: (knowing what he was saying) “OK”

Caller: “I’ve just split up with me girlfriend like, know what am sayin’ “?

Me: “Sorry to hear that, do you know when I can speak to your parents”?

Caller: “Problys aye. D’yer wanna buy the house like”?

Me: “Yes, I am interested”

Caller: “Me an me mates can buy this house like, know what am sayin’ “?

Me: “When can I speak to your parents please?”

Caller: “After August like”

Me: (with no intention of ever ringing back) “OK, i’ll ring back then”

Caller: “Alright mate, mint”

Thankfully, not all phone calls are like this, but sometimes you get them (know what i’m saying?)

New Advert Board for Property Services

After joining multiple Facebook groups to see what property people are dealing in, it became clear that the different types of investments are scattered into many different places, so I decided to open a free property services directory section on the site to allow people to post their own property services.

If you are a seller, a property you’d like to buy but need sources of finance to allow you to buy, or if you have a lease option you’d like to pass on, then post your service details on the board. You can then link it to Facebook or Twitter and this will help spread the word and hopefully make your property services and your advert visible to many more people.

As we all know, THE most important thing to do in property is to Network and make connections. This becomes easy when like minded people gather in the same place. That’s what i’d like the Property services section to achieve if possible.

Please give it a go. Like I said, it’s free to use and hopefully will help you get your word out and make us all more money 🙂

Advert Board : https://dkohara.com/directory/


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Review : Samuel Leeds Deal Finding Extravaganza / Never Use Your Own Money Again | Dave O’Hara

picture of Hilton Hall near Walsall

Hilton Hall, nr. Walsall

After waiting for what seemed like an age since we first went on the Samuel Leeds Property Investors Crash Course in Manchester in February, we rocked up to Hilton Hall just outside of Walsall for the next stage on our property journey. What a place to have a training session! It’s set in it’s own grounds with lakes and untold prettiness (squirrels and other furry critters abound). I bet working there is an absolute treat.

One of the first things we noticed was how many familiar faces we recognised from the earlier course. Everyone looked just that little bit more confident than some of the slightly timid characters we first met in the cold days at Salford. Maybe it was just the fact that summer had rolled into town this week that did it, but we got the impression that the crowd were very up for it.

This course was over three days. Everyone had paid a premium for these sessions; they’re more in-depth than the free Crash Course days. You can tell that the people are more committed and convinced that property investing is their future and everyone wanted to learn as much as possible from Samuel. The first day was the Deal Finding Extravaganza and day 2 and 3 were dedicated to Never Use Your Own Money Again, or as it’s catchily abbreviated, ‘NUYOMA’ (sounds like the Japanese teacup guy off Britain’s Got Talent). We all overloaded the Hall’s Wifi connection as the mass of electronic wizardry tried to log on to get access to RightMove, MousePrice and Zoopla.

Now, i’m not going to give away any information that Samuel taught us because that would undermine the integrity and point of the whole thing, but we watched as he found deals live from his computer at the front of the room and then worked out the yields and returns on investment. Very rarely did he turn up anything lower than 25% ROI. Then he set us all off to find our own deals in the lunch break.

The afternoon consisted of people revealing their ‘deals’, and then we all piled out to visit a couple of Samuel’s HMOs in Wolverhampton, followed by a visit to Cosmos Asian Fusion Buffet where I’m sorry to admit we rather stuffed our faces (but Samuel was picking up the bill). It seemed straightforward. We agreed to give a lift to Rob, who was in his camper van, and the idea was that we’d take him to his camp site, drop the van off, then take him to the HMOs, but we lost him in the outskirts of deepest, darkest Walsall and by the time we found him again, we’d missed the first HMO completely, and only got to the second one as everyone else was coming out! The day had been great though, and everyone was still buzzing in Cosmos even after 12 hours of intense property hunting.

NUYOMA

Day 2 opened with the brightest and bushiest tailed people in the room by 8:15am for the nine o’clock start. We were in the Travelodge Southbound on the M6, so frustratingly had to head south to the next junction, then do a U turn and come back again (about 10 miles in total). It was only after we’d done this a couple of times that Zach, a sprightly young student of accountancy, who unknown to us was also at our hotel, revealed a secret service road he’d been walking in on. It was only a mile and a half! We had to go through a no-entry sign, but it saved us loads of time. The second and third days are dedicated to No-Money-Deals. Basically, buying property with other people’s money. Sounds good doesn’t it?

Samuel taught us several ways to do this (a couple of which we’d already successfully done in ‘real life’) and there was a very interesting and valuable presentation by Sarah Poynton-Ryan who took us through Compliance, Bribery and Data Protection Laws amongst others, as well as introducing Deal Sourcing, Deal Packaging, R2R and Serviced Accommodation. (MEGA profits to be made on Serviced Accommodation, must look into that closer to home). The pace remained high until the slightly earlier finish time, with the usual role playing things to get everyone out of their comfort zone and thinking laterally. Thank God for the sandwich van is my only other comment.

On day 3, Zach took us on our little short cut, but the weather had turned foul and it was tipping it down as we got to Hilton Hall. Rob, who’d cycled in on day 2 had resorted back to the camper van. Sensible chap Rob. We again got stuck into some great exercises, real fun stuff, to show us how easy it is to network in a room full of similar minded individuals (and get deals). There was a question and answer session with a very loveable mortgage expert who managed to answer EVERY question thrown at him by the baying hordes (Stop it! – Ed) and by the time the lovely sandwich van came again the punters were salivating for more. Our working lunch was to go away and raise ‘virtual finance’ by thinking of how we could use our friends and countrymen to slip us a quid or two to invest in our property empires. Samuel set a target of £1m. Zach got the job of counting the money.

picture of myself, samuel leeds and deb

Myself, Samuel Leeds and Deb

Going round the room, it was clear that we were going to absolutely smash the target and when the final total was computed it was around the £4.5 million mark. FOUR AND A HALF MILLION POUNDS !! Granted, that was a fantasy fundraising exercise, but it just showed the power of networking and collaborating within a common goal. Summing up the successes and learnings were at the end of it all. When we all broke up I felt like I was leaving old friends. However, I think we’ll be meeting some of you again, maybe in a Joint Venture or maybe we can source a property or two for you ‘up north’.

Altogether, the 3 day course was well worth the money. We filled the gaps in out knowledge that we wanted to fill, and learned a whole lot more as well. Many thanks to Samuel Leeds and his team, the sandwich van, Cosmos and the staff at the Travelodge, as well as Walsall chippy that stopped us eating each other at the end of day3.


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5 Must Read Books To Start Earning Passive Income | Dave O’Hara

Getting yourself out of the rat race and earning passive income through various investment channels is a dream of many. It is also a good side income to look forward to every month. This article will suggest good books to equip you the reader with relevant knowledge to get started on your passive income journey. Read on to find out how to make money work for you while you sleep!

1. “Four Hour Work Week” by Timothy Ferriss

Highly regarded, what this book lays out may seem a tad unachievable and overly ambitious. However, exposing yourself to such ideals can provide perspective on what to work towards. Look forward to learning about Parkinson’s Law, the importance of outsourcing work, investing in the right people, finding a niche that you love and is in demand, as well as what goes behind a seemingly ‘effortless’ income stream. Behind the successful façade lies a lot of sleepless nights producing blueprints, developing your system, analyzing the business environment and more. This book is sure to motivate you to start working hard now in order to reap the rewards in due course.

2. “Virtual Freedom: How to Work with Virtual Staff to Buy More Time, Become More Productive, and Build Your Dream Business” by Chris Ducker

Often times, our attention is drawn towards new and brilliant business ideas. However, even unexciting business solutions can be profitable if executed well. As such, the team running a company can directly determine how successful the business will be. This book addresses just that by focusing on how to spend resources on building and improving a virtual team. If you need tangible examples and applications for business strategies, look no further. With a virtual support team, you can channel your energy on high level tasks. You can also be assured that your company will function 24/7 at a relatively low cost. Automation as a secret to a successful venture is made understandable through this read.

3. “Invisible Selling Machine” by Ryan Deiss

E-mail marketing takes the spot light in this book. A comprehensive read, Invisible Selling Machine provides you with a step-by-step guide for you to get started quickly. Doing your business right from the very beginning can build a solid foundation that will prove to be handy in future. Topics covered are not limited to consumer engagement, valuable content creation, reputation, buyer segmentation, consumer re-engagement and more.

For those with shorter attention span, you will be relieved to know that this is a short read with a great mix of stories, information and case studies to keep you going for more. Regardless of which stage you are at in your business, and regardless of your focus being e-mails, landing page or auto-responders, this book will prove to be helpful in improving your business to better your passive income stream. Having basic computer knowledge will also allow you to make full use of the content.

4. “KaChing: How to Run an Online Business that Pays and Pays” by Joel Comm

The catchy title has an equally catchy content. KaChing: How to Run an Online Business that Pays and Pays is a beginner’s guide to starting your own online business through a blog. If you prefer to feel as though you are speaking to the writer directly, this book is perfect for you. Hear him narrate and motivate through personal experience and learn about pitfalls to avoid, and how to translate your idea into an actual product. Business opportunities, uniqueness of product, content monetization, knowledge selling, affiliate programmes, membership sites, coaching and more are just some of the new media marketing tactics explored in this book.

 

5. “The Power of Passive Investing: More Wealth with Less Work” by Richard A. Ferri

Instead of actively picking stocks, Ferri proposes low cost index funds and exchange-traded funds (ETFs) as easy and accessible alternatives to allocate funds to stocks, bonds, and other asset classes. By providing exposure to selected broad markets, you reduce the risk of loss from individual securities.

This book is not just for investors, but also for brokers, consultants, people from trust departments, people overseeing endowments and pension funds as well as investment advisors. If you are confident of making passive income a full-time endeavor in the comfort of your home, give this book a read.

If you would like to know how to select and create a portfolio using low-cost index funds and ETFs, you can read his co-authored book, “The Bogleheads’ Guide to Retirement Planning“.

At the end of the day, passive investment is not the same as easy or mindless investment. While you play a less active role, there is still a need to research extensively and to monitor the market. The effort that goes behind the sustainable and income stream should not be forgotten.


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Active versus Passive Income | Dave O’Hara

 

scientists lab coat graphicI’m a Scientist!

I started work in 1979 as a lab technician with BIP (British Industrial Plastics, a monicker that is long gone). They kitted me out in a white lab coat and I got to call myself a scientist. That was pretty cool in those days. Being a lab technician was a bit like being a bakery worker. The principles of baking and making pvc are very similar, involving the mixing of ingredients in strict, controlled quantities. Believe it or not, Baking Soda is also used in PVC, but that’s another story!

Active Income

I was only 19 when I started work and there was no problem with the physical side of the job. We were all full of vim and vigour back then. It was hard work at times, lumping 25kg bags about, but when I got my pay packet it was all worth it. I got only £60 a week in those days, but beer was only about 35p a pint back then, so that was ok. I was no different from most people in the uk. We did 38 hrs a week and were paid a fixed rate per hour. We were earning ‘active’ income.

Some years later, as I became interested in the Internet and people were making obscene sums of money in the tech bubble, I came across the concept of ‘passive income’. Unlike my days as a lab technician where I was paid once and if I wanted another week’s wage i’d have to turn up for work for another 38 hours, this seemed unbelievable. Passive income means working only once, but getting paid for it over and over. “Surely that’s the future of work!”, I thought. That’s the way that entrepreneurs do it. I wanted to be an entrepreneur.

Google Adsense

Whilst still making plastic, i started investigating websites and monetizing them with Google Adsense advertising. Back in the day, Adsense became a good earner for me, around £4k in fact, back in 2006. It was true Passive Income. But, it became more difficult as Google changed it’s algorithms to weed out what they regarded as spammy websites. Unintentionally, it affected all website owners. Websites completely disappeared from Google overnight. Incomes were slashed. Reward became too low for the effort involved. I was back to Active Income for a while longer. Since then, i’ve dabbled with building websites for people, and still have active clients who pay me, but it was still ‘Active’ (except those paying hosting fees, who are ‘Passive’).

Zoom forward to 2014 when I rented out my house to move to Durham. I became an accidental landlord. But without really thinking about it, i’d started earning true Passive Income. The rent basically pays the mortgage. That’s when the penny dropped. We could earn passive income from property! But I didn’t really want to be a proper landlord and didn’t have money for the deposits anyway.

Passive Income

passive income graphic

Suddenly and out of the blue, I was made redundant in 2016. This meant I got a payment which after considering options we invested in more property and last year it started to generate ££££ in passive income through rent. This means we now have multiple properties and all our mortgages are paid for from their Passive Income. The house we live in is paid for by two of the others. How good is that ??????

Passive Income is truly what will set us free. The next stage is to find more quality properties to invest in. This time, we’ll be targetting other strategies to maximise the income.


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Samuel Leeds Property Crash Course Review | Dave O’Hara

If you’ve been following me since I jacked in the day job you’ll know that I’ve been hanging my hat on property as a sure-fire way of trumping the banks for making an income.

samuel leeds pictureOne thing you can never do too much of is research. The interweb is a dream for this, but sometimes it’s difficult to see the wood from the trees. Of course we watch all the property programmes on the telly as well, but realise they paint a rosy and very simplistic picture of what it takes to buy a house and make it work for you business-wise. There was a programme on last year where landlords and tenants would swap places, finding out what it was really like to live in the properties they were renting out.

Samuel Leeds

One of the landlords appearing on the programme was a guy called Samuel Leeds. He was a really humble guy and did his very best on the programme to help out his tenant, a lady who was worried about being evicted because she was struggling a bit. It turned out when he visited that she had a big hole in her roof, but didn’t report it because she thought he would put her rent up! I was impressed with the sympathetic way he treated her. In the end she had to leave for another reason, but only after Samuel bent over backwards to try to help her.

He turned up later in a Google search when we started looking for authorities on the subject of buying property. We recognised him from the programme and found out he had a good samuel leeds and sir richard branson picturebusiness going, mentoring and teaching other people how to make a living from property. He’s a Property multi-millionaire in fact, at less than half my age! Samuel Leeds rubs shoulders with the likes of Sir Alan Sugar, Sir Richard Branson and Arnold Schwarzenegger. He’s a little bit ‘evangelical’ at times in his presentation, not surprising considering he started as a church person, but his huge enthusiasm comes through loud and clear and he clearly knows his stuff. He’s also very ethical; ten per cent of his business profits go to charity.

Samuel has an excellent book published ‘Buy Low Rent High’, in which he outlines his strategy for property investment.

So, we’re booked on a two day property crash course with him in February in Salford, Manchester to educate ourselves further about property investment.


Samuel Leeds on Twitter

[custom-twitter-feeds screenname=samuel_leeds num=3]

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