How To Play Monopoly in Real Life DONE

HOW TO PLAY
MONOPOLY IN THE
REAL WORLD
Why the rent of a green house is better than a payroll check.
Santiago R.T
How To Play Monopoly In The Real World 2 Santiago R.T.

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Copyright to the creative design of the cover image belong to Alec

Monopoly.

Exoneration of responsibility
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This book offers information that the author considers reliable on the subject that it
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specific advice on anyone’s particular needs, nor advice on investments, nor
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as well as the laws and regulations, change over time, so that the status of
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The author and publisher decline all responsibility about the veracity of the
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Bibliography
• 1. Rich Dad’s Guide to Investing: What the Rich Invest in, That the Poor and the
Middle Class Do Not! -Robert Kiyosaki
• 2. Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the
Poor and Middle Class Do Not! -Robert Kiyosaki
• 3. Rich Dad’s Increase Your Financial IQ: Get Smarter with Your Money
-Robert Kiyosaki
• 4. Rich Dad’s CASHFLOW Quadrant: Rich Dad’s Guide to Financial Freedom
-Robert Kiyosaki
• Rich Kid Smart Kid: Giving Your Child a Financial Head Start -Robert Kiyosaki
• 6. Rich Dad’s Before You Quit Your Job: 10 Real-Life Lessons Every Entrepreneur
Should Know About Building a Million-Dollar Business.
-Robert Kiyosaki
• Rich Dad’s Conspiracy of the Rich: The 8 New Rules of Money
-Robert Kiyosaki
• The power of now. -Eckart Tolle
• The ABC of Real Estate Investing – Ken Mcelroy
• The Purchasing Power of Money: Its Determination and Relation to Credit, Interest
and Crises, Irving Fisher
• America´s Great Depression, Murray Rothbard
• The Age of Turbulence, Alan Greenspan
• The New Industrial State, John Kenneth Galbraith
• Web of Debt, Ellen Hodgson
• Tax-Free Wealth, Tom Wheelwright

“We are being robbed of
wealth through the money we
work for”.
Buckminster Fuller

“I have never let school
interfere with my education”.
–Mark Twain
This book is dedicated to you,

who doesn’t allow school to
interfere with your education.
Thank you for investing in

your financial education.

WAKE UP!
Money Heist is not about any bank robbery. It’s about how
all the central banks around the world create money out of
nowhere and split it between them.
Monopoly ISN’T a game. It was designed with a purpose. It

explains why the rich become richer meanwhile everybody
else works for a payroll check.
The educational system is a facade created by John D.

Rockefeller who purposely eliminated financial education to
ensure an endless source of obedient employees who don’t
question the authority.
THE SYSTEM IS NOT BROKEN.
IT WAS DESIGNED LIKE THIS ON

PURPOSE.

Go to work.
Send your kids to school.
Follow the fashion.
Act normal.
Walk on the streets.
Watch TV.
Save money for your old age.
Obey the law.
Repeat after me:

I’m free.
There are only two types of drugs that the

occidental civilization allows:
Caffeine from Monday to Friday so that you

can perform very well in your job and be a
part of the society.
And alcohol from Friday to Sunday so that

you stay too stupid to discover the prison in
which you’re living in.
This book will teach you how to get out of

that prison.

“Learning is hampering the education”.
–Albert Einstein.
It’s a reality, our education system prepares us for

financial disaster.
When people don’t learn anything about money, they

end up exchanging their freedom for a payroll check
and enough security to live a mediocre life chained to a
monotonous and boring job.
How can the average person understand that renting a

little green house is better than a payroll check without
financial education?
What happens when parents, that know nothing about

money, advice their children about how they should
earn it?

How are you going to drive a Ferrari learning from
someone who drives a Renault?
How are you going to buy a Rolex learning from

someone who has a Casio?
How are you going to be financially free learning from

someone who is chained to a job for 40 years in
exchange for a little bit of money?
How are you going to be a millionaire learning from

someone who is poor?
How can poverty not exist if school seems more

important to Algebra and Biology than Financial
Education?

John Taylor Gatto, teacher of the year 3 times from New
York, resigned to be the best teacher and wrote:
“Schools don’t educate, schools teach nothing except how to

obey orders. Before mandatory education, the average
literacy rate was 98%, it has never reached the 91% ever
again... I can’t keep doing this to the kids. Please, if
someone knows of some other job that isn’t this cruel, let
me know”.
It’s crazy to send kids to a place where they don’t learn

anything about money and where the only thing, they learn
is how to follow orders and to never question authority.
If you are in favor of education, then you must be against

the traditional education system.
This book is about education...but not about what schools

teach.

In the last 25 years, the workforce has multiplied four times
and still has an estimated higher growth from here to 2050.
Automatization will eliminate from here to 2030

approximately 800 millions of jobs, according to Jack Ma,
the wealthiest man of China.
The most likely thing is that your job is stolen by Mr. Robot
which means that there will be more employees people
looking for fewer jobs.
Basic economic: the greater the offer of employees the

lower the salary.
Are you living in a world that ceased to exist a long time

ago?
How can they continue to advise people in the same way as

they did one hundred years ago?

Is it that nobody realizes what’s happening?
Jobs emigrate to the east.
The Middle class decreases.
Salaries go down.
Interest rates on savings are at their lowest point in

history.
The poverty increases.
People who have to work after retirement increase.
The retirement of millions is in the air.
Young people are graduating from college but are

unable to find jobs.
Before this, what are you going to do? Is your answer

to “go back to school, get a master’s degree, look for a
job, work very hard, get out of debt and save money”?

That solution is the cause of the huge breach that exists
between wealthy people and everyone else.

It’s 2019 and…
We keep sending our kids to school, but they don’t learn anything about money
there.
People still believe that saving money is healthy, when in 1971 it stopped being
money.
Automatization is eliminating millions of jobs.
The companies look for young graduates with more than five years of
experience.
Global economy keeps unstabling for the imminent fall of the dollar, the
mortgage auctions, wall street bets, with the derivatives and the situation of mass
unemployment.
People keep believing that their house is an asset.
IT’S 2019 AND NO ONE KNOWS ANYTHING ABOUT

FINANCIAL EDUCATION!
It’s time to recover your sanity.

Chapters
Preface
Chapter 1: How wealthy people play monopoly in real life.
Chapter 2: How to become wealthy: four green houses, one red hotel.
Chapter 3: Investors vs. speculators.
Chapter 4: One of the wonders of the world.
Part 2: How you should play monopoly in real life.
Chapter 1: Why to invest in real estate?
Chapter 2: Fairy tales.
Chapter 3: Prepare to parachute yourself.
Chapter 4: Become an expert in your market.
Chapter 5: Your profit is when you buy, not when you sell.
Chapter 6: Close the deal.
Chapter 7: Do you manage or contract?
Part 3: How to keep moving forward.
Chapter 1: Advice for entrepreneurs
Chapter 2: Questions that will make you rich.

Chapter 3: Habits of millionaires.
Chapter 4: How to earn millions.
Chapter 5: Memento mori.
Epilogue.
Extra chapters.
Practical advices.
Fast guide to invest in real estate.
How to find discounted properties.
Questions to ask a salesperson.
How to invest with the bank’s money.

Preface
A beggar was sitting in a corner, he had been there for several decades watching
people come and go. “Can you give me an alms?”, he asked to a stranger that
was passing by, he automatically stretched his hand to grab some coins, “I have
nothing to give you”, answered the stranger and he immediately asked: “What is
it that you are sitting on?” , “Nothing”, answered the beggar, “It’s just an old
box I've had for a long time. I’ve been sitting on it since I have memory”. “Have
you ever looked at what’s inside that box?”, asked the stranger. “I’ve never
opened it, why would I? It has nothing inside”. “Take a look”, said the stranger
insisting, the beggar, a little confused, looked inside the box and he was amazed
when he saw that the box was filled with gold.
I’m the stranger and the book that you are about to read has nothing to give you.
The only thing that I can do is to tell you to look inside, but not inside of a box
like in the story… in a closer place, inside you.

PART 1
How wealthy people play
monopoly in real world
“If people understood how the monetary system works, there would be a
revolution tomorrow”. - Henry Ford.
How can you play something without knowing the rules? Do you know that
money stopped being money in 1971? Are you aware that banks never go
bankrupt? Have you heard that when banks go bankrupt, the government rescues
them with the money they have from taxpayers? Did someone tell you that
Rockefeller was the one who created the general education meeting? Do you
know what the purpose was in creating it? Did they teach you in school what a
central bank is? Do you understand how you’re being robbed through the
fractional reserve system? Did someone teach you that in 1971 savers became
losers? Do you understand that if you and I don't get in debt the system will
collapse? How can people say that the education system prepares them for the
real world? How can they be so naive?
It’s time to recover your sanity.
In the first part I’ll explain you how wealthy people become wealthier and
the way in which they operate in real life. It’s very important to dig deep in how
money works before even thinking about how to make more money. The first
part will be really important because there will be basic lessons about financial
education that everyone should know.
Once you learn the basic principles about financial education, we can start
digging into real estate investments but not before this.
It’s very important that you keep an open mind while you’re questioning

everything, don’t accept everything I tell you as an absolute truth. Question
everything I tell you, don’t believe anything I say, think for yourself and draw
your own conclusions. My intention with this book it’s to make you more awake
and curious not more docile and obedient. Education isn’t about training
someone to follow thoroughly a series of orders, education should be a process
of self-discovery.
It’s possible that you hate school, but you love learning, actually its common,
schools kill the spirit of millions of kids every day but in such a “beautiful way”
that no one would ever get suspicious. If only schools would teach the basic
principles exposed in the first part of this book, there would be less kids that get
out of school feeling discouraged and stupid and the poverty index would
decrease drastically.
Not all of us fit into the status quo, many of us see things differently and we
don’t accept going through that assembly line called education. If you see the
world differently, if you don’t want to spend your whole life in a cubicle, if you
feel cheated from what you’re learning in school and if you want to make the
world a better place, this book is for you. You’ll find the first part very thrilling.
Probably, when you finish reading it, you’ll realize two things:
1. You learned a lot.

2. You don’t know anything.
Don’t get discouraged. The more you learn and the more you educate yourself
will make you realize how much you don’t know yet. When you think you know
everything it’s probably because you know nothing. I hope this book inspires
you to learn for life, we live in an exciting world and at a unique time, realize
how fortunate you are. I hope you take advantage of this to the maximum level.
Take of this book what you think it can help you and what you think it doesn’t,
discard it completely. Remember there are thousands of ways to get to the
financial paradise and if the one you’re looking for doesn’t exist you can always
create a new one, that is the amazing part of the time we live in.

Chapter 1
How to be rich: four green
houses, one red hotel.
“When you find out you are on the majority side, it’s time to make a pause
and think deeply.”- Mark Twain
“Put away that stupid monopoly game and start doing your homework”. That
is probably the worst advice a parent could ever give to their children.
What did you learn in school about money? Surely not much, did you have
any classes that taught you about passive income? Did they teach you how to
pay less taxes? Did you learn how to use debt to make yourself rich? Do you
know what actives and passives are? Do you know how to read a financial
statement? At least you know what a financial statement is? It’s a tragedy that
we get out from school and find out that no one really cares if we know the
Pythagoras theorem or the perfect square trinomial. For those who didn’t go
to school I’ll show you here what you would’ve learned:
Student: What are passive incomes and how can I make money while I sleep?
School system: Don’t worry about that.

School system: mitochondria are the cell’s energy source.
Schools treat money as if it weren’t important, as if it was something

despicable but what’s really despicable is spending 40 hours or more per
week, for 54 weeks a year, for 40 years in a job that’s not yours, that’s boring,
making tons and tons of money for someone else. It doesn’t matter how hard
you work in your job, it’ll never be yours. You don’t possess anything. You
can’t sell your job, you can’t give it to your children, you can’t put it in the
stock exchange or make a franchise out of it, you have no control over it, you
could easily get fired tomorrow. I can already hear some of you saying: “That
won’t happen to me, my job is safe, and they pay very well”. Let me tell you
something, all of the jobs are safe until the day you get fired.
In the 1900’s, there were approximately 480 automobile companies in the

United States with millions of “safe jobs”, right? No! How many are there left
today? Three and in serious trouble. Chrysler was absorbed when it was
shaking and the biggest of them all, General Motors, was rescued and ended
up in the government's hands.
Kodak was the biggest photography company in the world, it owned the
photography market around the world, Where is it today? Nowhere. It ceased
to exist along with thousands of “safe jobs” they had. Blockbuster was the
giant of the market, it had millions of stores and franchises worldwide, where
is it today? You already guessed: in our memory. 30 years ago, there were
more than 40 computer manufacturers in the United States. How many are
there left? less than four.
At the time, thousands of millions of years ago, the dinosaurs also lived in
this planet. They were huge, they also seemed very strong but still, they all
disappeared. What makes you so sure your job won’t disappear? How do you
know a Chinese guy from across the world won’t steal it from you?
According to Jack Ma, Alibaba founder and the wealthiest man in China, by
2030 about 800 of jobs will be lost, all this due to globalization and to robots
that day by day are programmed with new features and functions.
Do you really believe that none of this will affect you? Don’t fool yourself

just because these people live just a few hours away by plane: all of them are
your competition. Your competition doesn’t need to live in the same city as
you, not even in the same continent, they don’t even need to be human! In
summary, you can lose your job if:
- It can be done by a robot.

- It can be done by a computer.
- If it’s only based on experience.
- If it’s monotonous and nothing creative.
- If it’s very manual.
- If it can be digitized.
- If someone else can do it for a less amount money.
Of course, not all jobs will be lost, but those that manage to survive will see
their salaries get lower and lower. Why? The income of big emergent
economies coming from Asia contributed with more than 2.500 million of
people to the global market. The law of supply and demand says: to a greater
offer, a lower salary. Those who lose their job will begin to compete for the
few lasting jobs that are left and because of this greater employee offer, the
salaries will keep getting lower and lower. It’s basic economics, I’ll give you
an example:
Imagine that the market needs 10 engineers to do work on civil constructions

and there are only 6 engineers. What happens? Salaries are high because the
offer is lower than the demand, in this case the engineers set the price.
Now imagine that the market still requires 10 engineers but there are now 20
willing to work. What do you think will happen? You guessed it, salaries will
be lower, and the market will set the price to be payed to the engineers. If one
engineer is looking for a raise, flexible hours, more vacation time, guaranteed
retirement and additional bonuses, it can end up costing him or her their job.
Someone else, who doesn’t have a job and it is desperate to work, will be
willing to do it for less.
Tomorrow, when you get to work, imagine that in the company door there are
thousands of millions of Chinese, Indian people and even robots shouting,

asking for jobs and willing to work for a tenth part of what you’re being paid.
Well, that is what is happening and what globalization means.
Does it make any sense to work so hard for something that’ll never be yours?
Does it make sense to pay more than $100,000 dollars in a college degree and
not be learning anything about money? Does it make sense to be working on
someone else’s business instead of yours? Does it make sense to spend your
life doing something you hate just because you’re being paid? Does it make
sense that our schools are the same as they were a hundred years ago when
the world is changing completely every five years? Is it that no one is aware
of what’s happening?
These are some tips that you probably got in your school or in your house:
- “Get a diploma”.
- “Get a job”.
- “Go up the corporate ladder”.
- “Work hard”.
- “Save Money”.
- “Your house is your biggest investment”.
- “Don’t become indebted”.
- “Look for a company that will look after you once you retire”.
Fairytales are pretty, especially because all of them have a happy ending.
Sadly, if you follow those fairytales to the letter, you won’t live a “happily
ever after”. If you gather all those tips, you’ll have the perfect recipe for
financial disaster.
A ROBBERY CALLED EDUCATION
The gap between wealthy, middle class and poor people has become more
and more broad and this is caused because people don’t know that there are
two types of education: traditional education and financial education.
Traditional education was implemented during the previous century and it
was created with the purpose of taking people from the agrarian era to the
industrial era. Previously in the agrarian era, people were business owners,

everyone had their own business and being financially independent was
something common. It must have been a spectacular era: words like “safe
job”, “retirement” or “unions” weren’t heard.
When magnates like Henry Ford, John D. Rockefeller and Andrew Carnegie
started to appear, mega factories were created that adapted to the needs of the
new era that was emerging. The car, petroleum and steel started to have much
demand back then. The world was entering a new era.
John D. Rockefeller created, in 1903, the General Education Board. Its

purpose was to take new generations to the industrial era. The education
system is based on the Prussian system, which is designed to teach people
how to follow orders, be docile, obey authority and punish free thought.
There are many theories about what his true purpose was by creating this
council. It’s said that he did it in order to influence the future generations and
thus be able to count on a constant supply of cheap and qualified workers.
Many believe that he intentionally omitted the matter of money in order to
enslave people into this.
It doesn’t have to be a genius to understand that if this was his actual goal, he
was successful: we go to the schools of the rich, we work hard for the rich,
we pay taxes to the rich and we invest in our retirement in the funds of the
rich. The funniest part is that people still think they are free.
G. Edward Griffin, in his famous book “The Creature From Jekyll Island”, a
book about the creation of the Federal Reserve and the General Education
Board, wrote the following:
“The purpose of the creation of the General Board of Education was to use
the power of money to influence the direction of the educational project and,
not as many people believed then, improve the education level. The goal was
to use the classrooms to teach habits that would invite people to be docile and
obedient to their superiors. They tried -and still do- to produce citizens with
the enough preparation to make a productive job under supervision, but not
as awake to question authority or to try and go up in the social scale. Real
education was limited to sons and daughters of the elites. For the rest the best

thing was to produce skilled employees without another particular aspiration
than to enjoy an average life”.
Regardless of whether you think or not that exists or used to exist a

conspiration, the truth is that in 22 years of education of an average person,
from school to university, there is not one subject about financial education.
Throwing someone into the real world without it, it’s something cruel. You
can be a doctor, engineer, driver, lawyer of whatever you want to be, and
you’ll still have to know how to use money. The only thing that we all have in
common is that all of us need to use money and this is precisely what no one
thinks it’s important to learn about.
What you’re going to learn in this book will give you a huge advantage
compared to 99% of the people. People that have no financial education have
no other choice but to exchange their freedom for a payroll check. Most of
them spend the rest of their lives afraid to be fired and afraid of not being able
to pay their debts and student loans.
Financial education isn’t economy, nor finance, nor business, nor do an MBA
or go to Harvard, Stanford or Wharton. No university will teach you financial
education. Why? Because they’re all based on the same error: they teach you
to work hard for money. Based on that, there is not much left to do, all the
other difficulties arise from that principle. If you work for money, you are
damned to pay the highest taxes, to depend on someone else to live, to save
money and see how it’s devalued each year due to inflation, and to pray that
someone from China or India, or ever a robot won’t steal your job.

HOW TO PLAY MONOPOLY?
You probably know that the formula to get rich in monopoly is: “Buying four
green houses and exchanging them for a red hotel”. The real world isn’t very
different.
Have you ever stopped to observe how rich people amass their great fortunes?
Have you ever looked at a Forbes magazine and thought about how they
make so much money? Don’t you think it’s weird that most of the wealthiest
people in the world have NEVER stepped into a classroom? Why is it that
way?
The reason why rich people get wealthier and wealthier while working less
and less is this one: Wealthy people don’t work for money, they work for
assets. That’s all you need to know to become rich. You don’t have to go to a
university, get a job or have high income if you don’t want to, all you need to
learn is how to build or buy assets.
Seems easy, right? I understand it sounds simple, but it isn’t, many even say
that it’s the hardest thing to do but I don’t agree with them. Think about this:
What seems harder for you? To work in cubicles every day, more than eight
hours, 5 days a week, for more than 54 weeks a year, for 40 years, in
something that’ll never be yours? Or learning about financial education, start
a business, learn how to invest, fail a few times and live the rest of your life
on your own terms? Entrepreneurship and investment are difficult, there’s no
doubt about it, but is it harder than being an employee?
Now, what is an asset? If you search for the definition of asset in a dictionary
or in some academic text book, and you are like me, you’ll end up dizzy and
confused. An accountant or someone who has studied those books will
understand it perfectly but someone average won’t understand it very well.
In simpler terms, an asset is something that puts money in your pocket even if
you work or you don’t. For example, if I buy a property to rent it, if with the
rent I can pay the mortgage, expenses, taxes, insurance and the
administration, and if after all of this, there’s still money left, that property is

an asset. The confusion arises because many people think that their liabilities
are assets.
Your job is not an asset for many reasons: it doesn’t belong to you and you
can’t sell it or inherit it to your children. Your house isn’t an asset either, even
if it’s valorizing. As you know your house, month after month represent
expenses: taxes, maintenance, public services, administration, etc. Not only it
isn’t an asset, but it is your biggest liability. In the financial crisis of 2008, in
the United States, people had what was called “perception of wealth”, this
phenomenon occurs when people become “millionaires on paper”, that
happens when their liabilities such as their cars or houses get valorized,
people really started to believe that they were millionaires. Most of them
started to use their houses as ATMs, asking for loans based on the liquid
value of their houses in order to pay their credit card debts or to pay
themselves a vacation in the Caribbean. Everything was okay while their
houses were valorized, no one ever realized that they were in the biggest real
estate bubble that existed in the last few years and that its explosion would
make the world’s economy stagger. When the bubble exploded people
realized in a bad way that their “assets” were actually liabilities, many found
themselves “drowning”, they owed more for their houses than what they were
worth.
If only people had known something as simple as the definition of assets and
liabilities, we wouldn’t be in a crisis that threatens to overthrow the world’s
monetary system. Someone with financial education knows perfectly that
their houses are liabilities even if its value is doubling every year.
A liability is something that takes money from your pockets even if you work
or if you don’t. For example, going back to the last property, if with the rent
you’re getting you can’t pay all the expenses you have to pay and you must
get money out of your own pockets to finish making those payments, that
property turned up to be a liability.
Next, I will show you your report card in real life: your financial statement:

The approach of the rich in the financial statement is in the assets section,
they don’t search for a well-paid job or work to get a timely profit. In less
words, they don’t care about income. Wealthy people look forward to
building or buy assets that give them residual earnings. First, they work hard
for the asset, then they relax while the asset works by itself while they sit
around enjoying their profit.
If you analyze the following financial statement, you’ll know why your house
is a liability even if the bank tells you that it is an asset.

YOUR FINANCIAL STATEMENT
Your house is a liability because you must pay the mortgage and it doesn’t
give you money. Even if you don’t have mortgage and the house is free of
debt, it would still be a liability because you’d still have to pay public
services, electricity, water, maintenance, administration and taxes. If you
don’t believe me, just stop paying the taxes and you’ll see who the owner of
your house is really.

FINANCIAL STATEMENT OF THE BANK.
When you go to a bank and they tell you that your house is an asset, they're
right indeed. The problem is they don’t tell you who owns the asset, they are
the true owners of the asset. In other words, the asset isn’t the house, the asset
is you. You are the asset because you are the one who pays monthly the
mortgage payments. Banks understand completely that an empty house is a
huge liability, therefore they auction them. If they were real assets, do you
think they would auction them? Of course not.
It’s very important that you understand the financial education basis to be
able to move forward in the real estate world with the next few chapters of the
book. If you don’t know rich people’s language and the Monopoly rules, you
won’t be able to play.

Rich people speak the same language as everyone, either English, Spanish or
mandarin, but their language is definitely very different. You can differentiate
someone rich because of the next affirmations:
- “I’m searching for a property that’ll give me positive cash flow every
month”.
- “I seek to invest in the shares of a company that pays monthly
dividends”.
- “I’m working on systematizing my business so that it keeps working
without me being present”.
As you must’ve noticed, all the affirmations above are references to assets,
for this reason their wealth grows exponentially. While a company rises their
value in the market $40 millions of dollars, a lawyer decides to rise his price
to $200 dollars an hour. You can see the difference from the moon, the abyss
of difference between working for assets and working for money is huge.
Middle class person or poor are always focused on their income, you can
recognize them based on the following affirmations:
- “I’m looking for a job that has many benefits”.

- “The government or some other company should take care of my
retirement”.
- “Why should I invest? I earn a good salary and I have a guaranteed
retirement”.
- “How fast can I ascend and obtain raises in your company?”.
- “How many disability days do I get to have every year?”.
- “I’ll go back to school to get more degrees and be able to get a raise
easier”.
It doesn’t matter if you’re a government worker or the president of Coca

Cola, the mentality and the values of the employees are always the same.

In a few words:
- Wealthy people focus on assets.

- Middle class and poor people focus on their income.
Result: rich people become richer working less and less every day.
If you only learn one thing by reading this book it must be this one: rich
people don’t work for money, they work for assets. Write this phrase down
and stick it somewhere you can see it every day. That is the base of the real
financial education. If you learn the difference in that, consider yourself in
front of 99% of the rest of the world’s population.
Monopoly isn’t a game about “going to the university, getting a job, look for
a raise and work hard”, Monopoly is a game that explains the power of assets.
In Monopoly as in real life, the person who wins is the one that has more
assets.
TWO TYPES OF MILLIONAIRES
In the world there are two types of millionaires:
1. Millionaires that work for money: Not all millionaires are the same nor
are as equally wealthy. This category is for the people that are “net
worth millionaires”, that is to say, for the people that are rich due to
their inheritance, it’s easy to recognize them, you simply take all of
their goods like cars, houses, investments, savings, pensions and
possessions and you subtract their liabilities. The result is their net
worth. There are many people that claim to be millionaires, but they’re
only millionaires on paper. Those are the people that ended up losing
more on the past financial crisis and that will lose everything on the
next one. This type of millionaires is sure that their liabilities - their
cars and houses- are assets.

These are some reasons why the net worth isn’t a trustful wealth
measurement:
- It’s based on opinions and valuations of someone else, not in facts.

- It’s supported by possessions that are usually passive with a declining
worth.
- In a casino, would you count your money while you’re still sitting in
the gambling table? Of course not, if your money is still in the game,
it’s not yours, it belongs to the game. The value of your house can
fluctuate constantly due to factors of the economic environment.
- Almost always, when people feel their net worth has increased, it’s
really because money’s value is down. As usual, the price of your
house doesn’t go up, what happens it’s that due to inflation the buyer
needs more money to buy it, this generates a false perception of wealth.
When the market collapsed in 2008 -which will happen again- millionaires
that worked for money found out in a bad way that their assets were really
liabilities inflated by the speculation from that time. When the value of their
liabilities collapsed, they lost everything, including their well-paid jobs.
Imagine that you owe $200,000 dollars for a house that’s worth $50,000. That
was what happened. It was a mortgage disaster caused by people without
financial education, bankers had to grant loans as borrowers with high risk
credits.
Many wealthy people in this category will find themselves being the new
poor people of the future. It will be this way because they’re violating the first
rule of Monopoly: rich people don’t work for money. The American dollar
died on August 15 of 1971, by unlinking it from the gold standard. Later, all
the currencies followed the same path. People’s wealth is being robbed
through the money that they work so hard for. People who measure their
wealth in money, will have a huge surprise.

Let me show you what’s happening to the wealth of the millionaires that work
for money:
What does this chart mean? It depends on who you’re asking. Someone
without financial education probably won’t make sense out of it. However,
this isn’t something good for millionaires that work for money, this chart
shows how much inflation has grown since 1910.
Let’s go back to the year 1971, on this year the dollar was unlinked from
gold. This worked for the banks because if the dollar wasn’t backed up with
any precious metal banks could print money as they wished through a system
called the fractional reserve. The fractional reserve varies according to how
much money they want to supply or extract from the economy. Assuming the
fractional reserve is of 10, and you in your bank have $100 dollars in savings,
the bank, using this mechanism, has the license to print money based on your
savings in multiples of 10, I’ll explain myself better, by this method they can
print $1,000 dollars and lend them to someone else. For you this is a bad

thing, those $100 dollars you had are now worth less because they represent
$1,000 dollars in the world’s economy. That is what we know as inflation.
Inflation is good for debtors but it’s bad for savers because they see every
time how their money is worth less and less. During the 2008 crisis in many
banks, the fractional reserve was of 40, that means that if you saved $1 dollar,
they could lend $40 which destroyed the purchasing value in multiples of 40.
Let’s be generous and say that you find a bank that’ll pay you a 4% interest
on your savings, that ends up being about 2.5% after subtracting the interests.
If inflation goes up by 5% that year, you’ll be losing money. Average people
wouldn’t stop to think that their money is losing its value day per day. Don’t
worry if you don’t understand this completely, the more honest and intelligent
that you are, the harder it will be for you to understand.
I’ll show you a simple example to help you understand a little bit better and to
show you the process:
Saver: 100 x 4% = 4 dollars per year
Debtor: 1000 x 10% = 100 dollars per year.
While the bank earns $100 dollars for money that appeared out of nowhere,
savers only gain $4 dollars for letting them use their money and devalue it.
The bank accepts to pay savers 4% of interest for their savings, which ends up
being 4 dollars per year for the 100 dollars that they saved.
I need to clarify that they’re not even 4 dollars, because, out these 4 dollars
you must subtract the interests which would make them about 2.5 or 3 dollars.
Also, remember that the interests for savings are one of the highest ones. We
also assume that the bank loans those $1,000 dollars at a 10% rate, but this
rate is usually higher.
The financial system around the world is based on inflation. The banks, the
governments and the economy wouldn’t work without it, it’s a need. One of
the reasons is because if people think that the prices of the products and
services will get higher, they’ll spend their money faster. If you suspected

that the car that you want to buy will be cheaper next year, you would save
your money and the economy would stagnate. Now, if everyone did this, the
system would simply collapse. The economy needs to keep the cash flow
going from one place to another. Because people know that the prices of
services and products are going to get higher every year, they spend their
money faster, this makes our economy full of speculators and not investors.
Speculators play with inflation to raise the value of their goods and be able to
sell them more expensive making the life of millions of people harder.
Another reason is that debtors can pay their debts with “cheaper money” in
the future. As everything in the world this coin has two sides, one is better for
debtor, it’s bad for savers.
In Venezuela, those who were millionaires a few years ago measured their
wealth in money, are now living on the streets because all the money that they
worked for lost its value. This is the result of measuring your wealth in
money.
You’ll probably say: “That only happens in Venezuela where the government
is a dictatorship and plenty other things have happened, it’s not the same”.
This is not the only case and it’s not isolated.
Last century, Germany also went in hyperinflation, the government printed so

much money that it lost all its value. Someone who was a billionaire, two
years later, was living on the streets and people who worked for money lost
everything. There’s a story that says that a lady was pushing a wheelbarrow
full of money just to buy bread, when she went out for the money to pay the
bread, she saw that someone had stolen her wheelbarrow and left all the
money behind. This is the result of toxic money.
More recently in Zimbabwe, a country that was really wealthy not so long
ago, the same thing happened, the economy was destroyed, and they had to
print bills of a trillion dollars. It’s very likely that with that amount today
you’ll only be able to buy one egg.

It’s a global reality: money stopped being money long time ago. Historically,
the money by decree, or in other terms, the money which only backup it’s a
government law instead of a precious metal goes back to its original value: 0.
How can the average person know that the base of all their financial problems
is actually the money they work so hard for? It’s impossible.
To stop backing money with gold it’s the equivalent of you getting up every
day to work very hard, while your neighbor simply turns on the printing press
and starts creating money out of nowhere. This happens at every every day, at
all times, throughout the world.
“There’s no more subtle and sure way to tear down the foundations of
society, than to corrupt the currency. The process involves all the forces of
economic law with destruction, and it does so in such a way that no man
would be able to detect it.” –John Maynard Keynes, British economist.
Now, look at what the central banks and governments are doing to the wealth
of millionaires that work for money:

What does this graph mean? That while you get up every day to work hard for
money, the banks and the government only turns on the printer and start
creating money out of nowhere that devalues your savings, raises up taxes,
increases public debt and triggers inflation.
This graph is a reference to the “Quantitative easing”, an elegant way to say,

“massive printing of money”. Look at the year 2009, when recession was
declared in the United States and the whole world went in crisis, banks
printed so much money that I’m truly surprised that we didn’t enter in a
hyperinflation state. Just look at the graph. The greatest money impression of
all times! Central banks tried (and still do) to keep up the economy system
artificially by putting billions of dollars into circulation in the economy. Who
do you think will have to pay for all the debt they created and split between
them? The taxpayers. And the children of their children.
Shortly, governments try to solve the problem that printing money out of
nowhere caused by printing more and more money out of nowhere.
Now, do you get the idea of why working for money and saving leads to
financial suicide? Do you understand why millionaires that work for money
will lose everything if the world has another economy crisis? Do you
understand why there’s a Monopoly rule that says that the bank never goes
bankrupt because they can print money whenever they want? Do you think
that Monopoly it’s just a game? Don’t you see that its rules are the same ones
that apply to all the central banks around the world? Does it make sense to
keep working for money when the government is destroying its own economy
by printing and printing money as they wish to? Don’t you think that
someone should have bothered to teach you all of this in school?
Why are countries destroying their own economy?
There are many reasons.

As you know government's fear is unemployment, if unemployment grows in
a country, poverty does too, people lose their homes, their money and even
criminality rates go up. If a country’s economy gets stronger than the
American dollar, exportations would decrease and would get slower each
time. All of this would create a slowdown in economy, and this would make
the unemployment rates get higher. If countries don’t weaken their currency it
will gain strength and value and the costs of products and services would
raise a lot in the global market, exportations would cost much more, and the
economy would implode.
Governments nowadays will do almost anything to keep people working even

if that means destroying their own currency.
What does this mean? That millionaires that work for money will have their
days numbered. If they don’t move their money into assets that give them
positive cash flow, they’ll be doomed. Just because you get paid $5 million
dollars per year it doesn’t mean that in a few years you’ll keep being rich,
actually someone in a few years could have billions in the bank and say “I’m
billionaire” and technically this would be true, but they would also be
bankrupt. Welcome to the real-life Monopoly. Everyone that works for
money will have to sit and watch how it loses its value more and more every
day. It’s like if you were working for “original Mona Lisa’s” that are getting
printed and printed every single day.
At present, the interest rates for savers are as low as they can be and as low as
they have been in history. Even in Japan, Sweden and other European
countries, it is beginning to implement negative interest rates. What does this
mean? People are starting to pay to save money. It’s just a matter of time for
the rest of the world implements this measure. If there was any doubt about
savers are losers , it’s already clear.
Why would they charge you to save money? Because those savings are an
asset of yours, but they are a liability to the bank. I’ll explain it to you using a
financial statement:

FINANCIAL STATEMENT OF THE BANK
As you can see your savings are counted as a liability for the bank because
they must pay you interests for them. In your financial statement they appear
as an asset because they “have to” pay you interests for them. Banks only win
money for debtors not savers.

YOUR FINANCIAL STATEMENT
This was before interests’ rates were as low as they are now and as I
explained before after making an analysis of how much the inflation increases
per year, the savings are transforming into liabilities and with time this will
be easier to see. The implementation of negative interest rates means that the
world is filled with fake money. As you can imagine, fake money is created
when someone asks for a loan and not when someone is saving, they don’t
even need banks anymore. Money is created in an electronic flutter, it appears
as a countable entry in the computer and it’s an act of prestidigitation. The
avowed Canadian economist, John Kenneth Galbraith, had already warned us:
“the process with which the banks create money is so simple that the mind is
repelled”.

Millionaires that work for money and measure their wealth based on their net
worth will have to take notes of the warning that Warren Buffett, the
wealthiest investor in the world, gave us: “The only thing that I can tell you is
that investing in cash is the worst thing you could possibly do”.
All of this takes us to another type of millionaire.
2. Millionaires that work for assets: These are the ones that end up being
well-off. In this category you can find the real millionaires, the ones that
don’t need a payroll check or much less a job to be rich. Steve Jobs belonged
to this category, his annual payroll check was of $1 dollar per year, he knew
the rules of Monopoly, he didn’t work for money. Bill Gates doesn’t earn that
much for someone who is the wealthiest man in the world, he makes about
$500.000 dollars per year, as you can imagine his wealth comes from his
assets, not his money. The earnings that come from their assets are equivalent
to thousands of millions, even after Steve Jobs’ death, he keeps billing a lot.
If Steve Jobs or Bill Gates earned what they do in a payroll check, they would
have to pay thousands of millions of interests. It doesn’t make any sense,
working hard for something and then having to give a big part of that share to
the government. Remember: Bill Gates isn’t the most paid man in the world,
but he is indeed the wealthiest man in it.
There are many reasons why these people are the wealthiest in the world, one
of them is that when you start focusing on your assets the government wants
to be your partner. Think about this: our economy wouldn’t survive if each
one of us were searching for jobs. The government wants someone like you to
help creating jobs, investments, low cost housing and for you by doing this, to
help the economy grow. The government doesn’t want more people asking
for jobs and subsidies, the government, through interests punishes people that
save money by charging them with high tax rates. In some countries people
spend almost 50% of what they earn paying taxes, they even decide to take
that money out of your pockets before you’re even paid.
This isn’t necessarily unfair, tax laws are for everyone, anyone could start
focusing on their assets and in that order reduce their tax burden. The
injustice is made when our education system tells us to “study hard in order to

get a good job”. Right there is where the problem begins. This innocent
phrase is the cause of the big differences that you can see nowadays, this is
the worst advice that someone can get in a tax matter. As you may know,
taxes are the biggest expense you must cover, they charge you taxes when
you earn, spend, save or even when you die. Even if you don’t have plans for
your money when you die, I can assure you the government does.
What do you have to do to make part of the millionaires who work for assets?
The first thing you need to understand and get inside your head is that money
will never make you rich, if tomorrow you get a bill for 10 million and you’re
not prepared there’s no way you’ll get excited, if you are like 90% of the
people in the world, you’ll probably end up owing ten times more than that.
We’ve all heard stories about people that won the lottery and ended up even
worse than before, singers or actors that lose all their fortunes due to a
wrongful demand or advice.
Working hard won’t make you rich either, if that was the case, people that
worked 5 to 9 hours daily would now be millionaires, everyone works hard,
and you can’t expect to be doing the right thing by doing what everyone else
does. Traditional education won’t make you rich either, it doesn’t solve
money problems, there are lots and lots of poor scholars in the world, poorly
paid teachers and big professionals that only earn a minimum wage.
Only financial education can help you with everything related to money.
Education can make you very rich but not the one that they give you in
schools or universities. You can be a very successful doctor and be poor, a
very successful engineer and be poor or a very successful lawyer and be poor,
but you can never be a successful entrepreneur and investor and still be poor.
If you are a successful entrepreneur and investor with good financial
education, then you must be rich.
A huge money transfer is currently taking place, people that work for money
are transferring their wealth to people that work for assets and because of this,
those who were rich yesterday, won’t be rich tomorrow. Sadly, most middle-
class people today, will be poor tomorrow.

With this perspective you have only two options, to be rich or to be poor, to
work for money or to work for assets. It’s very likely that if you don’t make
the choice to be rich, you’ll end up being poor.
Middle class people sees desperate as their best days vanish. The American
dream died for middle class people and, if you want to keep living in it, my
best advice is for you to move to China, India, Indonesia or Taiwan, there,
they are still entering the industrial era. Thousands of companies are moving
to those countries with emerging economies, safe jobs are a reality in the
East, not in the West. The fairytale is over.
To summarize:
Why shouldn’t you work for money?
Because money stopped being money on August 15 of 1971 when it was

dissociated from the gold standard. Money nowadays is “money by decree”
and this means it’s only back up it’s a government law. Throughout history
all money by decree has come back to its original value: cero.
What happens if I work for money?
You would be working for “original Mona Lisa’s” that you see printing every
day. The more money you earn, the more money you’ll lose to taxes, inflation
and to your money’s constant devaluation thanks to the fractional reserve
system.
Why shouldn’t I save money?
Because money has no true value, it’s only cash and saving it would be crazy,
cash shouldn’t be parked, it should be in constantly flowing from one asset to
another one. If you hold up cash it will be constantly and slowly losing all its
value.

If I shouldn’t save, what should I do then?
You should become a debtor, later in the book we will talk more thoroughly
about this. For now, you should know that governments reward debtors.
Banks and governments only want you and me to borrow money because
since 1971 the world’s economy can only grow if people get in debt. Banks
love pawnbrokers and punish the savers by devaluing their money and forcing
them to pay high tax rates. The key is to learn how to become rich by using
debt. In the next few chapters we will also talk about this more thoroughly.
In summary, how do I become rich?
First you must concentrate in your financial education, you can lose money
with almost everything, even with gold. The only real money is your financial
knowledge. When you have a high financial intelligence and when you have
invested enough in yourself, then and only then, you can get out to the real
world and start playing Monopoly. Remember, to win in Monopoly, you must
acquire or build assets.
How do I learn to acquire and build assets?
This is what this book is about. In the second part of the book, we will teach
you how to knead a big fortune with real estate investments. For now, all you
need to know is that your biggest asset is your financial education and your
biggest liability is the lack of it. It’s your choice.
So, why don’t we jump straightly to the second part of the book?
Because if you don’t know the basic financial terms, you will lose money.
The world is filled with people that search for the magic formula that will
make them instantly rich. I wish them the best of luck, they’ll need it. If
you’re looking for a magic formula or a shortcut to get to financial paradise,
this book is probably not for you. It will be better if you look for someone to
sue or someone very rich for you to marry and then divorce. But if what you
are looking for is to grow financially, to build the foundations for your future
and to become a big entrepreneur with long term visions, I’m sure you’ll find

every chapter of this book priceless.
Later, I will show you how to become a millionaire that works for assets.
Remember that the second part of this book will teach you how to
successfully invest in real estate and, with this, how to work for assets. In the
next few chapters I will teach you which are the rules of play Monopoly and
how can you use them as leverage. But first it’s very important for you to
know and understand all the basic terms and the financial education language
so that you don’t have to believe blindly in someone else's obsolete advice.
Remember that the money from the XXI century is your financial knowledge.
These chapters are very important because they teach you that there are not
good nor bad investments but there are good and bad investors. What I want
you to understand is that investing has nothing to with the investment but
everything to do with you and with your financial education.

CHAPTER SUMMARY:
- Rich people don’t work for money, they work for assets that give them
positive cash flow.
- Middle class and poor people focus on their income.
- Assets put money in your pockets whether you work or don’t.
- Liabilities take money out of your pockets whether you work or don’t.
- Cash flow determines if something is an asset or a liability. If
something puts money in your pockets, it’s an asset, if something takes
money out of your pockets then, it is a liability.
- Your house is not an asset.
- Grades matter at school; financial statements matter in real life.
- Money stopped being money on August 15 of 1971, when the dollar
got dissociated from the gold standard.
- Central banks and governments from around the world are destroying
their currencies so that they don’t get stronger and this way they can
keep people working.
- The educational system is out of phase and it doesn’t teach you
anything about money.
- Monopoly is not just a game.
- Just remember: four green houses, one red hotel. That’s it.

Chapter 2
The art of doing more, with
less
“Everything commonly accepted as true, is false”. - Oscar Wilde
How much time would it take you to save up one million dollars? How much
time would it take you to learn how to loan one million dollars? Who is
wealthier, someone who works hard trying to save one million dollars or
someone who knows how to loan a million dollars with an 8% tax rate and
invest it in a way that will give them positive cash flow? Who do the banks
prefer, someone that works hard and then saves their money or someone that
knows how to raise capital and make it work? Who do you have to be so that
banks lend you one million dollars in one hour or less? Do you get that you
have to pay for your savings the highest tax rates and debt is exempt from
them? Why do you think this happens?
This chapter is very important because it is the base for a professional

investor. The most important word in the investment world is leverage, as the
title says, leverage is the capacity to do more, with less.
Imagine a world without the wheel, internet, cell phones, cars or airplanes…
It sounds like a lot of work, right? The same happens with your finances, you

don’t just want to invest your own money but your banker’s or your
investor’s money. What you need is to leverage your finances!
How is it that rich people earn more and more money making less and less
effort and poor people make less and less money making more and more
effort? This sounds like we’re talking about people who live in two
completely different worlds.
You can bet that’s true.
The physicist George David explains it like this: “wealth is made up by small
efforts leading to big results and poverty made up by big efforts leading to
small results”.
In less words, if you’re waking up every day to go to work and you’re not
applying any type of leverage then you are falling behind.
Statistics and the speed of how the world is changing, show that you’ll
become obsolete.
LEVERAGE: LESS IS MORE.
This is a small list of the types of leverage that you could use or should be
using:
- Someone else’s time. As you may know, your time is limited. You only
have 24 hours per day. Because of this, it’s almost impossible to
become wealthy while you are selling your own time to someone else
by working for them, you can’t duplicate yourself to have a greater
income or at least not physically.
Middle class and poor people sell their time to rich people which makes them
their leverage. Meanwhile rich people buy their own time, what I mean by
this is that they hire someone else to make their daily chores.

Wealthy people know that their true asset is their time. They can always make
more money, but they know that when time passes, never returns. Middle
class and poor people think in the opposite way, as we have seen before, they
think their biggest asset is money and therefore they spend all their time
working to earn some. Look at it in this way:
Wealthy people pay for a private jet to transport themselves, why? because by
doing so, they save time, their most valuable asset.
Middle class and poor people prefer to transport themselves by bus, why?
because in this way they save more money, their most valuable “asset”.
Remember: wealthy people buy time by hiring people to have time for
themselves and enjoy life. Because of this, people fail to become rich. No one
will ever become rich by selling their own time.
Wealthy people buy time.
Middle class and poor people sell their own time.
For example, as I can’t teach every single person how to become rich by
investing in real estate, I created this book, so that I can still teach them
without it requiring me to be present. Another way for me to use leverage and
buy myself more free time would be to use YouTube. Imagine having a clone
of yourself that works for you without you having to pay him or her, that
doesn’t call in sick and makes tons and tons of money for you. This way
you’ll be able to reach more and more people with less effort and that is all
what leverage is about.
Nowadays there are many ways to free your time, there are thousands of
companies in India or China specialized in personal assistance services, after
paying a small fee to a virtual assistant, they can take care of almost
everything you can think of. The list of what this people can do it’s amazing,

it goes from making a reservation at any restaurant to making you an
investigative report of whatever you want. It’s simple and accessible to have
someone manage your personal and professional life nowadays.
The true asset is time, don’t sell it.
- Someone else’s money: this type of leverage will be the one we will
truly focus on. People seem to believe that they need to be rich to start
a business or to invest in real estate. This is false, if you ever need
money, who says it must be yours?
The more you work for money, the less money you’ll earn.
The more your money works for you, the more money you’ll earn.
The more someone else’s money works for you, the more and more money
you’ll earn.
Only lazy people and people that don’t have any kind of financial education,
invest with their own money.
Why does this happen?
Because the more you work for money, the more taxes you’ll have to pay.
I’m sure you’ve heard about the problems that soccer players in Spain are
having with their taxes. Soccer players in Spain are probably the highest paid
employees in the country, this means they are the ones that must pay the
highest taxes, therefore their consultants and their lawyers try to make
everything possible to avoid them but it’s almost impossible for them to do it.
If you work for money you are doomed to pay the highest tax rates and there
are really few options or getaways for you not to pay them. The only way to
do it is violating the law as many have done it, that is called tax evasion and it
is illegal.
On the other hand, the more your money works for you, the more money

you’ll earn, the only problem is that the money you put to work for you is the
one that’s left after paying taxes and in most of the cases it isn’t a lot, this is
why this is not the most sophisticated way of investing.
You’ve reached the highest level of financial education when you are able to
invest with someone else’s money and become rich. This is the way in which
the most sophisticated investors act and it is the fastest way to become rich.
You’ll earn more money because if you can get someone else’s money to
work for you, you’ll know how to use debt to your advantage and this will
make you rich and, as we will explain later, debt is free from taxes. The
money is free.
I want to clarify that it is only convenient to leverage from the money of the
banks or from someone else’s money if you have financial education. As you
know, debt is a double-edged sword: it can make you very rich or very poor.
You must treat all debts as a charged weapon, very carefully.
- Your financial education: This is the biggest leverage of them all, when
you have great financial intelligence, you acquire Midas touch:
everything that you touch becomes gold. Every single day banks print
more and more money, this is why the lack of it, isn’t an excuse,
money abounds!
We all get to this world being potentially rich, we are all born with unique
talents that we can offer to the world and that can help us become rich, the
problem is that no one ever focused in those aspects of each one of us. We
were always forced to study things that we didn't like, calculus, physics,
chemistry, etc. If only they’d helped us to focus on our talents, in what we
love, in what makes us unique, we would never have to worry about money.
Money is simply the result of doing what you love in an intelligent way,
helping more and more people.
In summary: you have millions of dollars inside your head, you just have to
find a way of getting them out.
- Technology: Do you take enough advantage of your phone, social

media or your computer to make money? Or do you only use them for
trivial things? We live in a great era, I’ll tell you why:
In the industrial era, if someone wanted to change the world, they’d have to
create a company and open factories.
In the digital era, if someone wants to change the world, all they must do is to
open a computer.
One person with a cell phone and social media, can now be more powerful
than Bill Clinton in his presidential moment. From your house you can relate
to anyone around the world for free and if this doesn’t sound like a lot of
money for you, I don’t know what will.
There are thousands of factories in China that have lists of products with
ridicule prices, ready to do business with you.
Take your computer and open Alibaba, find a product, then open Amazon and
look for the same product, the difference in prices will leave you with your
mouth open. You’ll ask yourself how can people in China sell the same
products at those prices and still earn money? Just by making this small
exercise you’ll understand why the massive unemployment in the west is a
problem and that it’ll increase more in the coming years. You’ll understand
also why companies are closing their doors and taking their factories to the
west. A worker in the United Stated charges $75 dollars per hour and in
China that same worker charges 75 cents, they’re practically gifting their
products and their work. The only thing that you must do is to find people
that are willing to pay for your products. Chinese people make the product,
store it and send it to the final client. You don’t have to do anything! All you
must do is to use Google, Facebook, Instagram, Alibaba and Amazon to
connect with the people and satisfy their needs. Could there be a simpler way
to get money than this one? You don’t need stores, stocks or big budgets to
pay publicity, a product design team, employees’ salaries or worry about
shipping. Never in the history of humanity it has been as easy as that to
become a millionaire. Being a successful entrepreneur is something possible
for everyone, you are very lucky to be living in this era, do something about

it.
- Knowledge and experience from others: Why would someone reinvent

the wheel? Why make the same mistakes people have made and have
already corrected? The best habit you can implement in your life is
reading.
Erasmus expressed it best: “When I have money, I buy books and if I have
some left after that, I’ll buy clothes and food”. Learn from the mistakes that
others make. There are thousands of millionaires, spiritual guides and great
leaders that share their experiences in books or social media.
Do you want to know why only 1% of the population is rich?
- Robert Kiyosaki: 757 thousands of followers on Instagram.

- Kim Kardashian: 109 million of followers on Instagram.
People in general think that there’s nothing more to learn after they graduate
from college, someone that gets out of school and stops learning will find
himself or herself living in a world that doesn’t exist.
People don’t realize that they can be an asset or a liability, less than 3% of the
people around the world read books like this one. The difference between
someone that reads, auto educates and invests in themselves or someone who
stays in bed all day and drinking beer is the same difference as flying in jets
or taking the bus.
The most intelligent people don’t go around saying or believing that they
know everything, and they often affirm everything they don’t know. On the
other hand, ignorant people, walk around thinking they know everything,
trying to show off their alleged knowledge. The more you read, the more you
learn and the more you study, the more you’ll see that you know very little.
The more awake you are toward things; the more stupid people will perceive

you as stupid. But that is okay, no one likes when someone criticizes their
beliefs and they like it even less when they know, that those beliefs are not
true or even real. Intelligent people most of the time find it hard to fit in,
people think they are irresponsible, misfits, crazy or dreamers, anyone that
doesn’t follow the masses or that doesn’t care about status quo will have to
deal with a great amount of opposition towards his or her ideas but when they
succeed in their dreams, society will brand them as unquestionable geniuses.
It’s always been like this, and it will keep being like this. You shouldn’t
worry about other people’s opinions about the opposition or the problems that
you’re faced with, get worried when people are not doing all of this
comments or when they are or treating you as if you were different, that is
when you’ll know you’re doing something wrong, when everyone is calling
you crazy that’s when you have to try and make things even better because
that’s when you’ll know you’re doing something right.
“I don’t have time”. “My job doesn’t give me the chance to read or study a
lot”. “When I graduate, I’ll start reading and educating more myself”. “I’ll
start tomorrow”. “I have children and a family, that takes up a lot of my
time”. People believe that when they graduate, things will get easier, or that
when they get a raise, they’ll have more free time, or that when their children
grow up, they'll have more time to invest in other things, or that when
economy gets better, they’ll learn how to invest. All of these are just very
well-argued and invented stories but they’re all false. I hope someone rings
the bell to wake people up from the hypnosis their living in. I’ll say it calmly:
The future doesn’t exist! Tomorrow will be the same as today! The only thing
that will have changed is that more time has passed by, you will lose another
day because the future is just an extension of the present. If you don’t start
today, what makes you think that the future will be any different from the
present? “When I have money, I’ll learn how to administer it and invest it”.
This is all false, you are seeing everything upside down! The truth is that
when you learn how to administrate, invest and protect your money, money
will rain for you! But not before this, that’s the natural order of things.
Bill Gates reads a book per week, that’s more than 50 books each year. Mark
Zuckerberg reads a book every fifteen days. When Elon Musk was young, he
spent his days in libraries. Warren Buffett recommends reading every time
that someone asks for his advice. About investing in yourself, he says: “In the

walls of my office, I don’t have university titles, I have the certificate that
was given to me at Dale Carnegie, when I finished the course about how to
speak in public because there I learnt how to stop shaking my hands and my
feet when I was at the shareholders meetings”.
How many books do you read every year? Are you investing in yourself?
Rebellion isn’t what most people think it is. Rebellion is when you turn off
the tv, take a book, and you start learning and thinking for yourself. We all
have that super power.
These are the most powerful types of leverage that we can use, but I’m sure
that you’ll come up with many others and my mission in this book is that you
learn how to use all of them.
The problem is that usually, middle class people and poor people are the rich
people’s leverage. In school they program us to be someone else’s leverage.
Rich people don’t have to be physically present in their companies for them
to be working because they have others that take care of the things, they
should be doing themselves, they don’t need to invest their own money
because banks lend them money.
“I’m the king of debt”. - Donald Trump
Why is it better to invest using money from a bank or an investor’s money?
There are many reasons.
The first one is that the less money you invest by yourself, the bigger the
return on the investment will be. The more money you put yourself into an
investment, the longer it will take to recover it and move it to another asset
and you, as the professional investor that you are, want to recover your
money as fast as possible while you keep the asset. The final challenge is to
take your money out of the investment equation and still be in the game.
From that moment on, you’ll be playing with the banks money and your
resources will become limitless, that’s how you play Monopoly.

The other reason is that if you invest your own money, the money you are left
with is the one that’s left after paying all the taxes but if you use banks
money, by this I mean using debt to your advantage, that money is free from
taxes. The government doesn’t charge you for getting in debt because this is
the only way in which economy can grow. Banks and governments want us to
get in debt and they are willing to offer tax benefits to the people that do it.
DEBT THAT MAKES YOU RICH VS. DEBT THAT MAKES

YOU POOR
In the financial world there are two types of debt: the debt that makes you
rich and the one that makes you poor.
What do you mean? Aren’t all debts bad and makes you poor?
For the average person this may apply, people without financial education
should maintain debts to the limit, actually, I wouldn’t recommend someone
like this to do what I’m about to explain. The power of leverage with debt
requires a certain level of financial sophistication and if someone is not
willing to make time and learn how to handle and administrate debt, they
should definitely not acquire any type of debt. Giving average people credit
cards is something like putting someone to drive drunk, it’s a danger to
everyone.
In simpler terms, debt that makes you rich are those that are paid by someone
else. For example, if you buy a house to rent it and pay $50,000 dollars for it
but you make a $5,000 dollar a down payment and acquire mortgage for the
other $45,000 dollars at an annual tax rate of 10% , if after paying all of the
insurances and taxes you still have money left, that debt makes you rich. It’s a
loan amortized by the tenant and it generates income, which means you don’t
end up paying it. As we saw in the last chapter this property is an asset. You
would have your first green house.
The debt that makes you poor it’s the one that you must pay by yourself. For
example, when you go shopping, when you pay your vacations with your
credit card or when you go to a bank seeking help to finance your house, all

this example are debts that make you poor because those are debts that you
have to pay with your own money.
It’s funny that middle class people and poor people find it terrifying to get in
debt to buy assets but that at the same time they run to the banks to get in debt
so that they can buy cars or houses.
If I have enough money to invest, is it really necessary for me to leverage

from the money of the banks?
No, it is not necessary, but it will take longer for you to become rich if you
only use your own money. Let me give you a simple example.
Let’s say you have $100,000 dollars and you’re thinking of investing them in
a property that’s worth that exact amount. Since you didn’t acquire mortgage,
your income from the rent is higher and because you didn’t do it with a bank,
you are not obligated to buy insurance, so you also save that expense. There’s
no doubt your income will be higher than if you had acquired a mortgage, but
your returns will be lower, what I mean by this is that it will take you longer
to recover your $100,000 dollars.
If , if on the other hand, you had choosen to use leverage from a bank you’d
still have your $100,000 dollars you had, instead turned them into a house,
you could convert them into up to ten houses for that same price, That is, pay
10 initial installments of $ 10,000 dollars, and the rest is financed by the
bank. Now you have 10 properties that together their value amounts to $ 1
million dollars. In case they do not allow you to leverage so strongly, you can
also buy more properties helping you with the bank than using your own
money. And that's not to mention that there are more types of financing that
we will deal with later.
This was a very simple example that omits many other factors but still tries to
make you understand that one of the keys to become rich in a short amount of
time is to do more with less.
Middle class people and poor people require more work and money to

become rich because they always try to use their own money to do it. If they
try to invest in assets, they do it with the money they have left after paying
taxes, rent, credit card debts, pubic services, food, car expenses and student
debts. If you want to be rich you must accomplish it by using debt as
leverage.
MONEY IS DEBT
As we mentioned in the last chapter, money became debt in 1971, before that
date it was an asset backed up by gold. Money became a liability after it was
unlinked from the gold standard and it is now backed up by a government
decree only.
Since 1971 the only way economy can grow is if people get in debt, the
financial system only works if people like you and me ask for loans. As
money can only be printed if people get in debt, banks desperately need
debtors asking for loans so that they can keep the system working.
For this reason, since 1971 credit cards became so popular that they were
even sent them by mail, mortgage loans also got very popular, even people
that didn’t have income or a way to pay those loans had the possibility of
getting one. When banks started printing money and loaning it, it became
easier to get credit and money. Properties prices raised up to the sky and
people filled with greed started buying their properties and experimenting
with them. Their failure was that they didn’t analyze the situation and simply
thought that their properties were assets and that their value would keep
getting higher and higher. There were more buyers than sellers and this
helped the market for a while. It became a trend to buy a house and become
rich by selling it one year later. Books such as “The millionaire next door”
became famous because they illustrated how people can live the American
dream based on the wealth from your net worth. Inflation had its boom and
many people became rich in paper, people’s net worth kept raising and
because most of them measured their money based on the liabilities they
possessed such as their houses or cars, they started applying for loans based
on the liquid value of their homes and also started to finance vacations, cars,
more properties and even used this to get out of their credit card debts. People

really felt rich and trusted completely the valuation of their goods.
The biggest bubble of all exploded in 2008, suddenly a new term snuck in the
people’s vocabulary: subprime borrower. A subprime borrower is someone
that has no financial capacity to pay his or her mortgage debts. Everything
was going very well while the subprime borrowers kept paying the taxes from
the mortgage loans they acquired, but when they couldn’t pay these either, the
system collapsed. The real estate business collapsed and threatened to destroy
the whole world’s economy. The biggest banks around the world went
bankrupt, but under the pretext of “being too big to fail”, governments and
central banks had to rescue them by printing huge amounts of money and
passing the invoice to the taxpayers. People found themselves owing much
more for their houses than what they paid for; banks and governments had
taken debt to another level and still do. Governments kept trying to solve their
printing money problem by printing more and more and giving it to the banks
for them to loan it. It’s like trying to extinguish a fire by throwing more
gasoline to it.
When you analyze this economic explosion, you realize that all this problem
was due to inflation and the quantity of people that were buying and buying
properties. When the trend reversed, there were more sellers than buyers and
the market collapsed. “People’s biggest asset”, their homes, lost almost all its
value and this helped some people realize that being in debt without financial
education can make you really poor and that paying one debt with another it’s
madness.
Currently everything works the same, all the money that is in circulation is
debt. Technically the money that you have in your wallet doesn’t belong to
you. It’s an IOU (I Own You) which means debt. Monopoly in real life is
THAT crazy.
As I’ve told you before, don’t worry if you don’t get everything right now or
if you don’t understand why things work like they do. The more honest and
intelligent that you are, the harder it’ll be to make sense out of all of this.
Why do banks loan money to people that can’t afford to pay it? Why do
people pay their debts getting in other debts? Why is it that banks keep

printing and printing money and devaluing it if this was the cause of the
crisis? Why did the governments rescue the banks, that caused the crisis and
left the population with huge debts to pay for generations? Why don’t they let
the monetary system collapse and the bank’s collapse? Dust off the Monopoly
of your house and read the rules of the game:
“Banks never go bankrupt, if they’re out of money they can just print more
any time they want”.
You and I can go bankrupt, but they can’t, the game must continue, and it
won’t stop just because we don’t know the rules.
This is how the actual finance system works. This chapter highlights the
importance of using debt to become rich because all money is debt. Even if
you try to get rid of debt, the truth is that the social debt is so big it’s stupid to
try to disengage from it. Technically we’re all in debt and must pay for that
debt and its taxes. It doesn’t matter what country you are from, money is debt
and unless you try to learn how to handle it and use it as leverage, you’ll stay
behind in this era. If all debts were settled all over the world, there would be
no money left in the world. All the money in the world is digital, it’s just a
countable entry on a computer, it’s made in an electronic blink of an eye and
it appears on a screen.
DEBTORS WIN AND SAVERS LOSE…
Why was money unlinked from the gold standard?
Because the United States was bankrupt. The United States Department of the
Treasury printed a lot of money to be able to cope with their debts, and the
countries that received payments in dollars began to exchange dollars for
gold. This caused that the gold reserves of the American country began to be
emptied. The countries that received their payments in dollars were
suspecting. They knew that the United States had serious problems.
In less words, United States was bankrupt because they imported more than
what they exported, and this means that they spent more than what they

earned. On top of all of this, they were also in the middle of a war with
Vietnam which means that they did not have enough liquidity, for this reason
they couldn’t keep backing up money with gold and that’s when they found a
way to pay all of their debts, with false but still legal money that was backed
up by a government's decree and other countries had to do the same if they
wanted to keep being part of the International Monetary Fund. Soon enough
all the currencies were backed up by a government’s decree instead of a
precious metal. From that moment on, the biggest monetary boom in history
took place.
The boom that we went through was due to inflation and to debt which makes
it funny because those two things are the pillars of today’s economy and for
this reason, banks don’t charge you for get in debt, but they do if you save
money, for example:
If I buy a property that’s worth $100,000 dollars and next year it’s valued in
$120,000 dollars, there are two things that I can do to obtain that profit:
- The first one is selling it, the only problem is that if I sell it and save
that money, taxes would be very high. The only option there is to
reinvest what you earned into another property and like this you can
differ the payments indefinitely. As you know, the money has to keep
moving, if I take it out of the bank, the fiscal office will make me pay
high taxes, this happens because the government needs to keep the
money flowing in order to keep the economy growing and because of
this if I take my money out of the game to save it I get punished with
high taxes. The average person would only know this way to obtain
the extra profit out of those $20,000 dollars but this would mean they
would have to incur in many expenses and would only keep $14,000
dollars approximately out of those $20,000.
- The second choice is to refinance, you go to the bank and ask for an
appraisal on your property and the bank recognizes the raise of its
value and then you can refinance with its new value by liquidating the
previous mortgage and your tenant keep paying the debt with the new
agreed value and you get to keep $20,000 dollars free of taxes in your
pockets.

As you can see, you can earn the whole $20,000 dollars without having
to pay taxes or deeds and you’d still be in the game because you’d still
have your property. Probably those $20,000 dollars were your down
payment of that property, now, your income would be limitless because
you have already gotten your money out of the equation and still
managed to keep yourself in the game. This is the definition of using
leverage to the maximum level. You should talk about this with some
of your friends to help you understand better this example.
-I can already hear you talking: “You can’t do that in this country”.
“That’s illegal”. “You don’t know what you’re talking about”. They’re
all right, if they say it can’t be done, then it’s true. It’s easier to say that
something can’t be done than to learn about it, research, practice, read
or make mistakes and correct them.
Even though I gave you this strategy in a really simplified way, I can
assure you, people all around the world do this. This is the best way of
using debt to become rich and it is the way in which monopoly is
played in real life. If you save $20,000 dollars and you get a bank
that’ll pay you 4% of annual interest, you’ll be paid in a year about
$800 dollars minus taxes. That 4% interest is taxed with the highest tax
rates, it will probably end up being about 2 or 2.5% after you subtract
the taxes, which means that your $800 dollars would be around $400
dollars. But hey, only assuming you can find a bank that would be
willing to pay “that much” for your savings.
What you can learn from this simple example is that debt is exempt
from taxes and your savings must pay the highest tax rate. The key of
this process is to do what the government wants you to do.
Governments don’t want your savings, they want you to invest in

economy by providing jobs, housing and helping your country’s
financial growth. If everybody starts saving all the countries would
simply collapse. Taxes are a way that they use to tell the people what
they want them to do and to punish them if they don’t do it.

But of course, before implementing any recommendation in this book
you must consult it with your lawyer and with your accountant. It’s
true that the world usually functions in a similar way but there are
differences or particular cases that must be consulted before taking any
action. The purpose of this book is to guide you so that you know what
to search for, where to search for, what to ask for and how to analyze
your investments, however you shouldn’t skimp on expenses and you
must search for professional and legal advice.
To conceptualize:
What happens if I don’t use any leverage and I only invest with my own
money?
It’ll take you longer to become rich, remember that the more money of
your own that you put into an investment, the lower it’ll be your ROI.
Your final goal must be to recover the money of your own that you
used for that investment and to keep the asset.
So, should I use the money from the bank as leverage?
Not necessarily, we focused our attention in the money that banks loan,
because they love doing it for people that want to invest in real estate
but there are other ways. In the second part of this book we will talk
about the many ways that exist to obtain financing besides banks. This
chapter’s purpose was to show you how to do more, with less, or in
other words, the way in which rich people use as leverage money or
other resources to keep getting richer.
What you’re saying is that we should all get in debt to become rich?
What I’m saying is that we should learn to use debt to our personal
advantage before implementing it. As I’ve said before, nowadays
money is not an asset but a liability and all the money in the world is
now debt this is why it’s so important for us to learn how to use it. But
if you don’t want to financially educate yourself, learn, take classes and

slowly start, I beg you that you never use debt as leverage and that
instead you dedicate yourself to save money. Those are the best advice
for the average person and someone like that shouldn't be reading this
book because it has sophisticated terms that can collide with the reality
of many people, if this is the case please gift this book to someone else,
this book should be for someone that thinks it’s risky to be an average
person in this times of financial uncertainty. I would definitely not
recommend this book to an average person, but I also think that if you
have already read up till this point is because you don’t want to be
average and you want to financially educate yourself., if that’s the case
then this book is for you.

CHAPTER SUMMARY
- People without leverage work for those who have it.

- Leverage is the capacity of doing more with less.
- Wealth is the result of making small efforts that generate big
results and poverty is the result of making big efforts that
generate small results.
- All the money in the world became debt in 1971. For the
economy to grow it needs you and me to get in debt.
- The tax rates that you must pay for saving are the highest ones
and debt is… exempt.
- Wealthy people use many types of leverage, middle class and
poor people are their leverage.
- Wealthy people buy time while middle class and poor people sell
theirs.
- The more you work for money, the less you will earn. The more
your money works for you, the more you will earn. The more
someone else’s money works for you, you will earn even more.
- A sophisticated and well-educated investor knows how to invest
with someone else’s money, recover his or her own money
invested faster, how to keep the asset and how to repeat this
process.
- You don’t need to have millions of dollars to invest but what you
do need to know, is how to loan millions of dollars and get
money out of it.

Chapter 3
Investors vs. speculators
“I’ve never been poor. I’ve only been without money”. - Mike Todd
Most people think that investing is risky, and it is, but only because people
are not investing but speculating. In the investment world you can invest for
two reasons:
- Cash Flow.
- Capital gain.
If you invest for cash flow, then you are really investing. If you invest for
capital gain, it’s more likely that you are betting.
When a professional gambler goes to the casino, he never counts his earnings
while he is still sitting at the table, he knows that he can lose everything with
just one wrong move. A slight change in the game, a small wind or anything
that escapes from his hands and he can end up in zeros.

So, why is it that the average investor thinks that the money in the table
belongs to him? It belongs to the game while it’s still on the table.
In the next chart, I’ll show you the differences between investing for cash
flow and investing for capital gain:
Cash Flow Capital gain

How much will my return be after the My net worth went up.
investment?
I bought a property to rent it and to The value of my house skyrocketed.
have positive cash flow.
I’m earning 72 cents per share. I bought a house; its value went up
and I sold it.
I’m going to refinance the property in I buy properties, remodel them and
order to recover my down payment sell them.
and to keep the asset.
The value of my shares went up, but I I bought shares at $5 dollars, when
would never sell them, I love to they are worth $10 dollars, I’ll sell
receive positive cash flow constantly. them.
If the market collapses, I’ll buy more If the market collapses, I’ll lose all
properties that give me positive cash my inflated goods, I need it to stay at
flow and I’ll buy them at a cheaper its peak so I can sell it them at a
price. higher price in the future hoping that
there will be someone stupid enough
to buy my assets then.
My wealth is measured by my My wealth is measured by my net
monthly cash flow. worth.
Imagine you go to Wal-Mart, you buy something and when you get home you
regret buying that and want your money back. If you go back, they will give
you your money back, but you also must give back what you bought. That’s
how the game works with capital earnings. A professional investor, one that
invests for cash flow, wants his or her money back as soon as possible but at
the same time wants to keep the asset. This is how rich people invest, it’s the

real way to knead real wealth, the one that survives in good and bad times.
If investing for cash flow is better, why do people invest for capital gain?
To invest for cash flow a certain amount of sophistication it’s required. Let’s
accept it, even a trained monkey can buy something and sell it at a higher
price. Anyone can buy Bitcoins today and sell them more expensive, a lot of
intelligence isn’t required.
As people can’t find or build an investment that gives them money today,
they invest hoping that tomorrow that investment will give them money.
Ordinary people don’t have enough financial education to find an investment

that will give them a constant and positive cash flow, they invest in things
that will have a higher value in the future hoping to sell them. The problem is
that even if this works, they will have to share this profit with the government
by paying lots of taxes from what they earned. But this will only happen after
finding someone stupid enough to buy the asset at higher price.
Why do you say that investing for capital is like gambling?
Think about it, how can you be sure that the value of your assets will raise?
How do you know that you will find someone that pays the price you’re
asking for? Even if it’s true that real estate tends to increase in its value
constantly, How do you know that we won’t enter in recession and that this
won’t last 2, 5 or 10 years? What if you have trouble making the mortgage
payments and you must sell during this recession period? Can the real estate
broker that sold you the property assure you that the price will get higher?
How do you know that the tax rates in the banks won’t get higher? How do
you know that this raising tendency isn’t due to the devaluation of the
currency? How can you control the economic conditions?
“The most stupid reason to buy shares, it’s because their value is raising”. -
Warren Buffett.

Even though if you invest for cash flow, you won’t be sure of how things will
turn out but at least with this way you can lower the risk by a 90%. If you
invest for capital gain the only thing, you’d be able to do is pray that buyers
keep appearing and that an external policy won’t change the rules of the
game.
In the subprime mortgage crisis of 2008, the ones that lost everything were
the ones that invested for capital gain. In the United States, speculators are
known as flippers, which means people that enter and exit the market quickly
in order to obtain any kind of earning. They were the most injured in the
crisis and this will stay the same if another crisis takes place.
The people that lost in the crisis were the ones who hoped that the prices of
their “assets” would get higher. These people were fools, hoping that other
fools would buy their inflated assets. Almost all markets work this way,
because they depend on fools pushing other fool’s asset prices higher.
Nowadays Bitcoin for example is also based on this “fools’ strategy”, I know
this because not so long ago, a cab driver was talking to me about it and he
was telling me to buy quick because prices were going to get high. As I’m
sure you get it, when cab drivers and amateur people are giving investment
advice, that’s when you know you must run out as fast as you can from that
market.
When the market collapsed, the wealth of people that invested for capital
gain, disappeared. As these people measured their wealth based on their net
worth, when these values turned negative, they became big losers. When the
biggest fool of all, realized that he paid a lot for an investment that all the
other fools had walked out from, that was when the market truly collapsed.
These investors found themselves under water, they owed more for the
property than its actual value. The problem is that this crisis not only affected
them but also affected families that wanting to have their own house, asked
for one of those loans that banks were practically gifting. They didn’t realize
that they didn’t have enough financial solvency to amortize this kind of debt
and that they wouldn’t be able to keep making the minimum payments. With
this, the whole world entered in recession. millions of families were left
without a home, auctions grew exponentially, and many banks closed their
doors while others were rescued with the money of taxpayers. Unemployment

got almost to the same levels as the great depression in 1929 and all this just
for playing the most stupid game of all: investing for capital.
If people that invested for capital gain lost everything, what happened to the
people that invested for cash flow?
They became richer and richer.
As we saw in the first chapter there are two types of millionaires:
- The ones that work for money.

- The ones that work for assets.
Speculators that invest for capital gain, work for money, as soon as they get
an asset, they put it in the market as fast as they can to sell it and obtain
something out of it. These people can obtain lots and lots of money, but they
belong to the first type of millionaires, the ones that work for money.
Remember that it doesn’t matter how much money they make, they will keep
belonging to this category. Why? Because they must keep working, trying to
find properties, buying them and selling them again and again. They don’t
build assets that work for them, they are not partners of the government
because they don’t add much value to the economy, the only thing they make
is that they make life much more expensive. For this reason, the governments
charge them a very high tax rate for their earnings.
On the other hand, investors that buy assets to keep them even if they are
shares, real estate, commodities, businesses or something else, they belong to
the second category: millionaires that work for assets. These are the ones that
invest searching for positive and constant cash flow, they know it’s not very
intelligent to work very hard and stay stagnant. Finding an investment that’ll
give you constant and positive cash flow is not a simple task, this is why,
when they sell it, their hands don’t shake to make the best deal of all or even
when they’re setting its price.
They are governments and banks associates, they love these types of investors
and they are willing to loan them money at the lowest tax rate when they do

get charged. These types of investors facilitate everyone's life by giving them
the possibility of living in a good place at a low cost. Bankers are always
willing to give them money even during a recession period because they've
showed that they know how to play the money game.
For this category the devaluation of assets wasn’t such a big deal, it didn’t
matter that the market collapsed, they kept receiving money. It’s really hard
to feel like a loser if you are getting money every month, if the cash flow
keeps paying the mortgage and administration payments and if even after
these expenses are paid, you still have money left, it doesn’t matter if the
property is devaluing.
Rent didn’t go down, it went up, because as auctions went up, people didn’t
have enough money to buy their own houses and the market of renting houses
went up and at the same time the value of the rent also went up. Even with the
devaluation of the properties, their rents went up. This means that resellers
were in trouble but the ones that didn’t sell and instead operated the
properties were happy.
When the bubble exploded and the market was at its peak, it was hard to find
investments that would leave a positive cash flow. As prices were inflated and
the amateurs got in the market very fast, prices kept getting higher and higher.
As soon as the tendency reverted, real estate and share prices dropped. In the
real estate market, you could find discounts up to 50%, it was the perfect
moment for cash flow investors to get in the market and take out all the
capital gain investors for prices 50% or 60% cheaper than what they were the
month before.
You need to know something, in a short period of time, people that invest for
capital gain can make much more money than people that invest for cash
flow, it is a faster and simpler way to obtain short-term profits. If the market
is at a good point, you can make lots of money but as soon as there is a
recession that good luck can turn into a nightmare.
If you want to build true wealth, that’ll last for generations and that survives

good and bad economic situations, you must invest for cash flow. By doing
this you won’t find yourself “out of the game” when the markets collapse,
instead your wealth will grow exponentially. Don't feel bad if at first that cash
flow seems insignificant, in 5, 10, 20 or 30 years you'll be wealthier than
what you ever imagined. The most important thing is that you'll sleep very
good at night, you won't have to worry about the fluctuations in the market,
you'll stop feeling like everyone else that says that investing is risky because
the risk decreases when you know what you're doing.
Then, if I invest for cash flow, there won't be any risk?
Risks will always exist, thinking that you can eliminate every single risk is
immature and childish, everything in life has a risk. When you get in a car
you suffer the risk of getting into an accident. When you cross the street, you
suffer the risk that someone distracted or someone drunk will run over you.
When you get into a plane, you suffer the risk that the plane will fall or crash.
Risks will always be part of the equation that the investor has to take into
account, you have to know that probably before winning, you’ll lose not even
one time, but probably many. It’s the natural process that we have to follow
when we’re learning something new.
However, you need to understand what those risks mean to you, the average
person when faced with analyzing a new investment, only looks at the risks
that come with it, thinks of every single way in which that investment can go
wrong, even when there are no risks, this person creates them. Their head gets
busy trying to find every single motive not to invest, this is a very common
and contagious disease called “paralysis by analysis”.
It’s necessary to analyze the investment and to try to minimize the risk, but
there’s a moment in which you have nothing left to analyze, in that moment,
you have to get in the train or watch it get far away from the station. That
decision is deciding to be rich and overcome every problem along the way or
to just simply follow a payroll check. It’s being brave or being a coward and
we all, at one point, must make this choice.

RISK VS. BENEFIT
You shouldn’t take risks just because. When I tell you to take risks and to try
new things, I’m not talking about jumping off a plane or swimming with
sharks.
In other words, you must analyze the benefits you get for taking a financial
risk. If the benefit ends up being bigger than the risk, then do it. If on the
other side of the door there is a very good reward waiting for you, you must
take a small risk, then you should do what you think it’s necessary.
When someone starts a business, they must have in mind this statistic that
rules almost every one of us: 9 out of 10 businesses fail in their first 5 years.
This means that out of one hundred new businesses only one will succeed.
People that must put up to this statistic often end up running for a payroll
check and to a safe job. They do this because they have to find something
“secure” that will protect them in some sort of way from their fear of failure
in real life. The only problem is that the more security they search for, the less
freedom they’ll have.
Another way of seeing things is that “if I start ten businesses at least one of
them will succeed, if I’m willing to fail nine times, I will feel what it is like to
succeed in my tenth try”. But you must be willing to fail several times, just
like Thomas Edison, in order to achieve the rewards that are waiting for you
on the other side of that risk. I highly recommend not to start a business if
you’re afraid of failure, because it is part of this process and a part of life.
Those people that choose to sit all day in a cubicle and work nine to ten hours
and are not willing to take risks, they will have a very boring and mediocre
life. More than facing failure, I would like you to enjoy it, fail and enjoy it. It
means that you’re doing something new, that you are exploring new borders,
it means you have a chance of living as you’ve always wanted to. Show me a
person that stopped taking risks and failing and you’ll be showing me a loser.
Don’t get me wrong, you shouldn't fail two times at the same thing and enjoy

it, this would also make you a loser, you should fail, learn from that and then
fail in something else. Failing trying to create your own business is better
than doing the “right thing” by going to college and getting a job, it is boring,
and it is what everyone else does.
If you’re going to fail, you must make it big, learn from it and correct it as
you go. This world is made for brave people, we’re all going to die, but just
some of us will know what it’s like to live life and I hope that you are one of
those people.
DON’T WASTE A RECESSION
An economic crisis is the best moment to invest. If Apple had their prices
down by 50%, I’m sure they would have people lining up in their stores but
when the real estate market collapses, people run to hide.
Average people only try to invest when they see everyone else is doing it, you
can’t expect to be doing the right thing, when you’re doing what everyone
else is doing. As Warren Buffett said: “You cannot buy what's popular and be
right”.
The worst moment to make an investment is when the market is completely

fine, this doesn’t mean that you shouldn’t invest when it is like this, all I’m
saying is that you have to be extra careful when it is. This is because when the
markets are good is very easy to make a mistake and to pay more for the
investment than what you should be paying, and it is harder to find
investments that make sense and that’ll give you cash flow.
Once market is fashionable and the amateurs are entering, it is too late.
Beginners always get in late to the market, they arrive by heaps, cause a stir,
push prices up high and end up paying more for the investment they made
and once the last amateur realizes the mistake he or she made, the market
collapses. It’s always been like this and it’ll keep being like this. At that
point, the best investors will arrive and will find the best investments in
ridiculously low prices. This applies for real estate or any other type of asset.

“Be fearful when others are greedy and greedy when others are fearful”. -
Warren Buffett.
If you wasted the last recession, you shouldn’t worry, this thing will keep
happening again and again. People will keep making the same mistakes.
When you have the opportunity, buy as much green houses as you can and
when you see that everyone wants to get out and that they are scared, that’s
when you’ll know it’ll be your turn. That’ll probably be the moment in which
you become rich or in which you’ll buy a red hotel and win the game.
Markets will eventually recover but remember that this doesn’t matter for
you. You don’t care if the market fluctuates, if it goes up, your rent gets
higher and if it goes down, you’ll buy more and more green houses. That is
how you will build your wealth.
To conceptualize:
What is the difference between an investor and a speculator?
I’ll make you a little summary in the following chart:

Investor Speculator
Buys to keep. Buys to sell.
Tries to get back his or her money as Hopes that the value of his or her
soon as possible while keeping the assets raises and, in that order, sell it
asset. more expensive.
Buys a cow to get milk and Buys a cow to kill it and sell its meat.
offsprings.
Searches for constant and positive Searches for capital gain by buying
cash flow. cheap and selling it more expensive.
Always remember that Monopoly isn’t a speculating game, Monopoly is not a

game in which you buy green houses and then sell them more expensive,
Monopoly is a game in which you must keep all your green houses in order to
buy a red hotel. You don’t sell your red hotels because you can end up in one
of them and you would lose the game, your job is to keep them, administer
them and receive profits from them. That is the way in which you have to
play Monopoly and that is the way in which you have to play in real life.
This book is about the power of cash flow and in the second part of this book,
we will talk about how you can obtain a huge amount of wealth with real
estate but always investing for cash flow. This book is for investors not for
merchants.
If you are not supposed to measure your wealth based on your net worth, then
how are you supposed to measure it?
Genuine wealth is supposed to be measured based on the amount of cash flow

that someone is receiving. Your net worth is the value that someone else in
the market gives to your assets based on the current economic or market
situation. As you know, markets fluctuate and thinking about it is crazy,
everything will collapse at one point. If you ask Newton, he’ll tell you that for
every action there is one equal or opposite force that comes with. It’s
mesmerizing to see how many investors are sure that the value of their assets
it’s going to raise as if they didn’t believe in gravity.

Your asset’s cash flow is a more certain and secure way to measure your
wealth. This is not based on someone else’s opinion but on the money that
you know you’re receiving month after month even if you work or if you
don’t.
“My heritage has increased”, “The value of my house got really high”, “My
portfolio is getting valued”. These are things that someone that is still in the
game table and counting their money would say and these people will have a
really bad surprise when the market fluctuates again as it always does.
You can consider yourself rich when your monthly cash flow from your
assets exceeds your monthly expenses. That’s when you’ll know that you
won the game, you’re financially free and you can move on to the next level:
changing your green houses for red hotels.
One reason to achieve financial freedom is to be able to join the Ultra rich
Club of people. When you stop being in a hurry and take time to analyze
investments, you’ll be part of the richest game of all times. Remember to start
slow, one green house at a time, always taking care of it and keeping it.
Why is it that the ones that invest for cash flow when the market collapses
become richer and the ones that invest for capital gain, become poorer?
People that invest for capital income are counting on their assets to raise in
value, they are counting on more people to buy their assets and that are
willing to pay more money for them than what they did. This is what causes
that prices keep getting higher and higher. When the last person that buys an
asset for a ridiculous price, realizes that no one wants to buy it again and even
worse, that no one wants to buy it more expensive, that is when the market
collapses. When there is no one left to keep inflating the value of the assets,
the tendency is reversed, and prices go down and as soon as their assets lose
their value that is when they lose all their money. They need someone else to
buy that asset at the price they set to keep the system working. That is how
every market in the world functions.
Remember:

If there are more buyers than sellers the market is up.
If there are more sellers than buyers, the market is down.
If you are going to be playing this fool game, make sure that you are not the
last fool which is the one that ends up paying for everyone else.
On the contrary, people that invest for cash flow would never waste a
recession period, it is like going to a shopping mall and everything is 50%
off, it is thrilling. People already know they made a mistake and they are
willing to sell their assets at ridiculous prices. In this condition and with those
prices, almost every investment generates positive and constant cash flow.
When the economy and the markets are at their peaks, it’s risky and
complicated to make investments, it is very simple to fall in a trap and end up
paying more money for an asset with less value. There’s a possibility that you
may find one or more that’ll give you cash flow, but they are really
complicated to find and that is why you must be extra careful.
How do I become a “cash flow investor”?
That is what the second part of this book is about, you must know and
understand all the numbers and real estate income in order to profit from them
and to make your earnings constant. Numbers will help you to analyze every
property as an independent business and the control that this will bring you in
the operations of your property will keep you calm and make you feel safe.
When someone buys something to sell it, it isn’t much what they have to
know or learn in order to do it, they just need to keep an eye into tendencies
and economic conditions. But if you want to invest for cash flow, in real
estate or in any other business you’ll need to know how to check the numbers
that are usually in the financial state of the property this is what will actually
tell you if that property will be an asset or if it will be a liability.
Later, I’ll show you how to fully analyze a property, its different types of

income, its operations, market conditions and other factors that can change
your cash flow income. You’ll be surprised when you see everything that you
don’t know about real estate, many people think that they just need financing
and that’ll be it, that the asset will manage itself, I feel sad for those people
and because I know that you are not one of them and that you really want to
learn every detail in this market, I’ll try to teach it to you in the simplest way
that I can find.
You must know, right now, that it is not simple to find a property that will
comply with the necessary conditions for this type of business, not all
properties are useful to invest in this way. You must have this in mind and
don’t be unmotivated by this because it is a good thing. It means that most of
the people do and quit before finding great properties at great prices, which
means there are more for you if you are perseverant. Here you’ll learn
techniques and ways of analyzing real estate but it’s in your hands to keep
going or to stop. You could easily go searching for a job that’ll give you a
“secure” payroll check every month just like everyone else. It’s your choice
to make, you and only you can decide if you want to be a sophisticated
investor or an average one.
You decide, I hope you choose becoming rich.

CHAPTER SUMMARY:
- If you think that buying cheap and then selling at a higher rate will
make you rich, I’m sorry for you, reality will kick you so hard that not
even Google will be able to find you.
- Sophisticated investor wants the money back in less than five years and
keeps the asset.
- “My heritage has increased, “the value of my house went up” are
phrases of people who are often counting the money that are on the
betting table. Your money does not belong to you at that time, it's from
the game.
- Don’t forget that the purpose of the game is that if you take your
money out of it, you’ll still be in it.
- An investor buys to keep, and a speculator buys to sell.
- Remember: you need to invest in order to receive cash flow and you
won’t have to worry for money ever again. If you invest for cash flow,
you’ll build a genuine and lasting wealth and you will be able to sleep
calmly at night.
- Amateur investors only know one way of becoming rich: buying cheap
and then selling more expensive.
- People that lose everything when the markets collapse are those who
invest for capital gain, those that invest for cash flow are the ones that
become rich.
- Every market is having to count on fools, when they disappear, the
market will collapse.
- Monopoly isn’t a game for speculators, it is a game for investors.
- Cash must keep flowing in order to win the game.
- Don’t try to resell your green houses, you must take care of all those
green houses so that in the future you can exchange them for red hotels.
- Not all properties are viable to invest for cash flow, you need to accept,
deal with this and keep looking until you find the perfect property.
- It doesn’t matter what the banks, the brokers or the owners tell you,
keep looking. What you’re looking for exists.

Chapter 4
One of the wonders of the
world
“Money won’t make you rich”. - Robert Kiyosaki.
How would you feel if after you woke up from a very long nap, you figured
out that you’ve been making money in your sleep? Would you like to go on
vacations and not having to worry about money? Wouldn’t you love that
while there are people running in offices, you can stay home and play with
your kids while your money works for you?
I’m sure that you get excited just by thinking about it.
I’m sure you’ll wonder: Is it possible to make money while you sleep? Of
course, it is! It is the only way in which you can be financially independent.

It’s impossible to become rich if you can’t find a way to make money while
you sleep. Remember that the real asset is your time, and this is why it should
be your priority to be able to dispose of it fully as soon as possible.
“If you can’t find a way to make money while you sleep, you’ll have to work very hard
throughout your life”. - Warren Buffett.
WHY DO YOU NEED A PAYROLL CHECK?
In the money world, there are basically three types of income:
1. Ordinary income.
2. Capital income.
3. Passive income.
I’ll explain them to you:
The ordinary income is the one you obtain by working physically, it comes
from a regular job’s salary and it is the one that about 99% of the people
have. The problem with the ordinary income is that if you want more money,
you’ll have to work more and if you get a raise, the government does to. The
tax rate for the ordinary income is one of the highest one also. It doesn’t
matter how hard you work, you’ll still have to pay the highest tax rates if you
work in order to obtain that type of income. Laws are harder for people that
work for this type of income because they’re doing the opposite of what the
government wants them to do:
- They don’t generate jobs, they look for them.

- They don’t provide housing, they look for it.
- They don’t invest, they save.
- They don’t produce, they consume.
- They don’t take care of their own retirement, they look for a pension
for life.
- They don’t work helping others, they work only for money for
themselves.

These types of persons are the ones that seek help and subsidies from the
government as soon as they are unemployed, they try to make someone else
responsible for them as soon as their working days are over. All of this means
a bigger expense for the government and the private companies; therefore
they charge them higher tax rates.
Ordinary income is the one that requires the most work, you must be present,
every single day, doing what they tell you to do in order to obtain it, because
as soon as you stop working, the money stops coming. It is also the one that
gives you less control, you don’t get to decide how much money you make,
how much you work for it or how much you keep due to taxes. The control
that you have over your life stops as soon as you decide to work for ordinary
income, all that ends up being in someone else’s hands.
They charge you with taxes when you win, spend, save or even when you die.
If you weren’t intelligent and made a plan for your money, the government
did, they can end up with everything and all of this done within the law.
Ordinary income is the one that you’re told to achieve in schools or even in
your house, they tell you to go to school, get a diploma and then get a job in
order to be successful, what they mean by this is: “be a slave your whole life
and pay the highest tax rates while you make your boss and the government
very rich”. I know it sounds a little cruel, but it is the truth, that is the worst
advice that you can give to someone in matter of taxes.
Millionaire athletes know this, remember I told you that in Spain,

professional soccer players have trouble with this, next time you hear that
they just signed a contract with a multimillion-dollar club for 20 or 30 million
of euros per year, remember that this would be before they are charged with
taxes. It would end up being about 10 to 15 million of euros per year and they
would have to invest this money very fast or they will get charged with more
and more taxes. If they can’t find the way to earn money as another type of

income, they’ll be partners of the government their entire lives.
It is not very intelligent to work that hard and to build nothing, it’s not very
intelligent to be paying the government the highest tax rates, it is not very
smart not to create a long-term residual value. As we said in the first chapter,
Steve jobs earns only $1 dollar per year, he didn’t want to have ordinary
income because this would mean that he would have to share most of it with
the government and millionaires don’t like this.
Working for ordinary income is working for the wrong type of income, it’s
the worst of them all because it doesn’t belong to you, you can never possess
a job, you have no control over anything. You can easily get fired the next
day and you can’t inherit it to your kids. It is financial suicide to depend on
this type of income.
The few people that are millionaires obtaining the ordinary income belong to
the category of millionaires that we described on the first chapter,
millionaires that work for money, it is really hard to get to that level because
the competition is fearless, everyone wants to go up the corporate ladder,
which makes it harder to do it.
Everyone is searching for secure jobs, raises and more benefits, therefore
climbing up that ladder is harder and competitive.
On the contrary no one seems to be interested in owning the corporate ladder.

Almost no one knows that there are different types of income, therefore you
shouldn't follow what other people do, success is on the other way. There
isn’t much competition, you compete against yourself.
While 99% of the people try to get 1% of the cake, 1% of the people
distribute between them 99% of the cake. The ones that try to climb up the
corporate ladder, are the ones that don’t feel safe long-term and that end up
risking everything. On the other hand, people that try to build their own
corporate ladder feel safe and have lifes full of freedom and calm. The simple

path ends up becoming hostile and dangerous meanwhile, the hardest path
turns out to be the most fun and easy at the end.
In summary:
The bigger your ordinary income is, the less freedom you'll have and the
more money you'll lose.
Capital income is also known as portfolio income and you can obtain it by
buying cheap and selling more expensive, it doesn’t matter if its properties,
Bitcoins, shares or something else, this type of income is based on this.
This is the type of income that most of the investors know. In general, when
someone invests on something, they’re hoping this will gain value for them to
have capital gain. Therefore, the average person thinks it’s very risky to make
investments, they don’t have much control over the asset. These types of
investors hope that the price of their asset will raise in order to make money.
In the last chapter we talked about the risks that come with these types of
investments and how if the market collapses people could lose everything
which is something that will always happen.
This type of income has a tax rate between 15-30% depending on the country,
between all three types of income this one is the second one with the highest
tax rates but there are some exceptions.
For example, if I buy a property for $100,000 dollars and its value raises up to
$120,000 dollars and the returns I’m getting from it, it isn’t what I expected, I
could sell it and gain something out of it, reinvesting the total value of this is
in some other property would end up being more rentable and I could differ
tax payments indefinitely, the government lets me do this only if I have my
money in an investment and if I meet some requirements.
But be careful: before doing something like this you have to consult it with a
lawyer specialized in these types of transactions and with an accountant,
because one thing is to defer taxes in a legal way and other thing is to evade
taxes. One is implemented by sophisticated investors and the other one is

implemented by people without financial education that end up paying high
sanctions or going to jail.
I want to teach you some things that’ll help you to learn how to investigate,
what to ask and how to proceed but you always must keep in mind that you
have to consult with a specialist before doing something that’s recommended
in this book. All cases are different, and every country has different
regulations, these little differences can get you in big trouble if you don’t
know about them or if you ignore them. Someone professional can give you
advice about them and help you avoid these types of trouble.
Following the example that I gave you before, anyone can avoid paying high
tax rates for capital gain indefinitely, as long as his or her money is invested
in something else.
In the past chapter, capital gain makes references to portfolio income and
cash flow refers to passive income.
Passive income is the one that comes from assets that give you a constant
cash flow. For example, when you buy a property, you rent it, and after doing
all the math and paying all its expenses, the money that you have left is your
passive income from that asset. Passive income is the key to win in
Monopoly.
The past chapter and this one are related in this way:
Cash flow. Passive income.

Capital gain. Income from capital gain or portfolio
income.
Job. Ordinary income.
It's just a different way of saying the same thing.

When I’m referring to the cash flow that’s coming from my assets I’m talking
about my passive income.
When I’m talking about the capital income that I had I’m referring to my
portfolio income.
When I’m talking about my job and how I got a raise and that banks pay me
3% annually for my savings, I’m also talking about my ordinary income.
The big difference that you see between rich people, middle class people and
poor people is due to them not knowing that they’re working for the wrong
type of income, the average person doesn’t even know that there are different
types of it. They don’t think it’s possible to make that much money and not
be paying taxes or at least not at the same rates they do. That lack of financial
education is where all poverty comes from.
Can you show me more differences between ordinary income and passive
income?

Ordinary income. Passive income.
It comes from the job you have. It comes from your assets.
It belongs to your boss. It belongs to you.
You can’t possess it, sell it, franchise You can keep it or sell it and other
it or inherit it. generations can inherit it.
Requires traditional education. Requires financial education.
You work very hard for money. Your money and everyone else’s
works very hard for you.
Pays the highest tax rates, up to 50%. Pays the lowest tax rates, up to 0%.
Only you benefit from it. You can help many other people.
It takes up your valuable time. Once you create it, it doesn’t take up
more of your time, you can lay on the
beach whenever you want.
In order to get more money, you have As it increases, it requires less and
to work more. less effort.
You have to work if you want to be You pay yourself anytime you want.
paid.
You don’t have control over it. You control it.
It makes you a slave. It sets you free.
Why do people that work and have an ordinary income have to pay the
highest tax rates?
As we’ve said before, governments have to develop certain sectors of the

economy and because of this they reward people that help them to do it.
Petroleum, food, housing and jobs are things in which the government
desperately needs help from investors. These sectors are the engines of a
country. If you want to know in which aspects the government needs more
people to invest you just have to look at where tax rates are higher.

If you want to see what the government doesn’t want you to do, you just have
to search for where they charge the highest tax rates, even if it’s true that the
governments need employees, the truth is there are many available and this is
why this is not an urgent matter for them. Savers and employees are
abundant, and this is why governments don’t think it’s necessary to give these
people benefits for doing these things.
Tax laws punish people that work hard for money and saves it because by
doing this they are slowing down the economy. If everyone did this, the
monetary system of our country would collapse. This is why governments
need entrepreneurs that invest actively in the country’s economy that generate
jobs, housing and investment opportunities. Taxes are a reward for people
that make their money and other people’s money work hard for them.
Do you think it’s fair?
I never said it was fair, life is not fair. But what is truly unfair is that schools
don’t teach us any of this.
Besides, remember that these laws are available to everyone. Anyone can
favor from these types of investments and reduce their taxes. It's just a matter
of having a good financial education.
What is the difference between being successful as an employee and being

successful as an entrepreneur?
The more success that an employee has, the more money he or she makes, the
more taxes he or she pays, the less control they have and the less free time
they have.
The more success an entrepreneur has, the more passive income he or she
gets, the less taxes he or she pays, the more control and more free time he or
she has.
In conclusion: the more success an employee has, the easier it is for it to

become a failure, it can be dangerous to be successful in this way.
In my way of seeing things, it makes no sense to become a millionaire in this

way. Does it make sense to climb up the corporate ladder but by doing it,
missing for example your sons first steps? How are you going to explain to
your kids that you can’t be with them because you have to work? Why work
so hard for something that you won’t be able to inherit to your future
generations? If you are a good worker, why not work for something of your
own?
Can you give me some examples of how to earn money in the three types of
income?
I’ll show you in the next chart to be a little bit clearer.
Renting a property. Passive income.

Shares dividends.
YouTube channel.
Licenses from books, games or
intellectual property.
Royalties.
Marketing networks.
Payments for subscriptions to a
magazine, blogs or courses.
E-books or electronic products.
App creations.
Publicity.
Speculating with a property. Capital or portfolio income.
Speculating with shares.
Re-selling goods.
Buying and selling Bitcoins.
Jobs. Ordinary income.
Self-employment.
Contract for a specific job.
Taxes for your savings.

There are many more options to win money in with any of the three different
types of income, these are just a few examples.
Pay attention to this, your savings are catalogued as ordinary income, they
charge you with the highest tax rates because banks or the government don’t
want your savings. As we saw in the past chapter, your savings are a liability
for the banks and they slow down your country’s economy, assuming that you
find a bank that’s willing to pay for your savings. As I’ve said before, in some
countries, these rates became negative, which means you have to pay to save
money and I think it won’t be long till the whole world gets to this point.
As you can also see, it is very exciting to have passive income and I’m sure
that you can think of many more ways to earn it, almost everything can turn
out to be a passive income you just need to make sure it works without you
having to be present.
When someone starts thinking in passive income terms, his or her whole
world changes. The perspective of the world changes and it becomes more
exciting, never before in history it has been this easy to have many sources of
passive income.
Fall in love with one of the many ways of having passive income, if it doesn’t
exist, create it. Knowledge stopped being the most important thing in the
world since it started changing completely every 5 years. Try with
imagination.
Which type of income should I earn to be financially free?
The 400 wealthiest people in the world earn passive or capital income, it’s
really strange that faced with this fact, not even one school teaches one of
those ways to make money.
As you know, your time is limited, time is the most precious asset that we
have. If you sell your time working for others, it’s almost impossible to
become rich and even more, that you become financially independent. You
may earn lots of money, but you’ll never have true wealth because it isn’t

measured in dollars but in time.
You must know that it is possible to earn money with the three different types
of income at the same time. For example, Donald Trump, earns in the three
different types of income, Steve Jobs, Warren Buffett and Bill Gates do too.
The difference is that their lowest income is the ordinary one, they counted
with this one thousands of dollars, and with the other ones thousands of
millions of dollars. If they earned thousands of millions of dollars, they would
also have to pay thousands of millions of dollars in taxes. That’s the problem
of being a successful employee, the more success you have, the more success
the government has.
The income that you should aim for is the passive income, this equals to
freedom. As I’ve said before, with capital income you can make a lot of
money, but it won’t give you freedom. You will only have true freedom if
you aim to earn from your assets with passive income, they will help you
sleep like a baby at night.
My definition of financial freedom is this one:
When your passive income coming from your assets exceeds your expenses
during good and bad times of the economy, you are financially free, you won
the game and that’s it.
If kids were taught a way to have more money paying less taxes, I’m sure that
there would be more people being entrepreneurs and creating more jobs,
housing and investments nowadays instead of highly studied but still
unemployed people seeking help from the government to receive subsidies. If
people were taught to think in terms of passive income instead of ordinary
income, I’m sure that the poverty rates would be drastically low compared to
what they are now.
The economy needs more capitalists to invest in it and to generate more jobs.
When a country has high poverty rates it is because employees abound, and
entrepreneurs are lacking. Employees become obsolete if they can’t find
someone who hires and pays them.

If governments really wanted poverty rates to decrease, they would teach
children in school the reasons why a green house is way better than a payroll
check. If only people knew about passive income, they wouldn’t have to sell
themselves to a job they hate for about 5, 10, 15, 30 or 40 years. I’m sure that
most of us won’t use algebra, calculus, physics, chemistry or some other
assignments that they teach us in school, but no matter what happens, money
will always be part of your life. Telling a kid to graduate and find a job is
something crazy, it’s something irresponsible from society and it should be
considered child abuse. We’re facing a crisis because schools think it is more
important to learn how to use the Pythagoras theorem than to learn how to
build passive income.
Slavery never ceased to exist, it was just modified to last 10 hours per day, six
days of the week and 54 weeks of the year and the best way of making sure
that a prisoner doesn’t escape is by not letting them know that they are in jail.
In the second part of this book, I’ll teach you how to earn passive income
with real estate, I hope that what you are learning in this book becomes part
of your life or if you are an employee that at some point your passive income
overcomes your ordinary income.
When you understand that it’s not a day more but a day less, you’ll see the
true value of passive income.

Chapter summary
- Ordinary income comes from a job.

- Capital gain comes from buying cheap and selling more expensive.
- Passive income comes from the cash flow that your assets give you.
- You achieve financial freedom when your passive income exceeds
your expenses.
- Ordinary incomes are the ones that must pay the highest tax rates.
- Passive incomes are the ones that pay the cheaper tax rates.

PART 2
How you should play
Monopoly in real life
You don’t need to be a scientist or have a diploma from Harvard to
play Monopoly in real life.
This is the part you’ve been waiting for.
In the first part of this book you learned how money works, the types of
leverage that you can use, the difference between debt that makes you rich
and debt that makes you poor, the way in which rich people invest and the
way in which amateur people invest, the different types of income, the
difference between assets and liabilities and finally you learned how to read a
financial statement. Just by understanding this first part of this book you can
get into the real world and you can succeed with any type of asset and in any
type of market.
The chapters that you’ll find in this second part of the book will teach you a
new way of analyzing real estate. Many people believe that failure or success
of investing in real estate depend on two things: money and luck.
I’ll show you how to create your own luck by operating your properties,
knowing the numbers and knowing the performance you’ll have and with this
you will know when it’s viable to invest or not, the opposite of risk is control.
However, you need to know that this business is very wide and that there are
many ways of investing, negotiating, analyzing markets, investigating

properties and planning exit strategies. You’ll see there are thousands of ways
to invest and to proceed. Don’t feel overwhelmed, find a market and a way
that you like and learn from it.
Is it possible to learn how to drive by reading a book? Of course not. Is it

possible to become rich by investing in real estate just by reading a book? Not
even joking! Reading is great and educating yourself should be something
mandatory for the rest of your life but if you don’t practice what you learn, it
won’t help at all.
I have news for you: you’ll fail, not once but many times. You’ll lose money,
it’s very likely that you’ll find people in your way that will try to take
advantage of you, some may even succeed, you’ll have to visit hundreds of
properties and still, you may find nothing, banks may refuse to hear you out,
real estate brokers will probably tell you that you’re crazy and your family
may tell you to find a safe job. All of this is normal and if you let it bring you
down, the best thing you should do then is to put your money in a bank and
look for someone willing to hire you and pay you.
You have to be perseverant and keep moving forward, what you imagine is
real and the world that you think of, when you’re about to sleep, exists. At the
beginning you’ll have to work very hard and try several times, but it becomes
easier and fun. With every “no” that you hear, you’ll be closer to hearing that
“yes” that you’re hoping for. Don’t get discouraged and if you do, at least
don’t quit.
Whenever you are about to quit, just remember this: I could quit at any time
so, why quit now? When you’re about to quit, don’t do it immediately, do it
later, or the next day, hoping that feeling you had would have passed and that
you’ll remember again why you are doing it.
You choose your own path and I believe that if you have read up until this
point it is because you don’t want a safe job or a payroll check. If you are
reading this book it is because you want something else in life, normal isn’t
for you, “only good” isn’t for you, you and I are not too different.

You are looking for the extraordinary, don’t ever quit, always reject being
part of the second class, don’t settle with anything less than extraordinary.
I have to tell you all of this before I start because you need to do it in order to
succeed investing in real estate or some other thing isn’t that hard, I’m being
honest when I tell you that it is like buying green houses when you are
playing Monopoly. The process can be learned, you just need to know how to
add, subtract, multiply, divide and read, that is everything you need to fully
know.
The challenge is to be the person that you have to be, someone that doesn’t
take no for an answer, the type of person that as soon as he or she feels
insecure about something runs to find a safe job, the type of person that tries
to live life in his or her terms without thinking about the price to pay.
If you are that type of person you have your success almost guaranteed, it
belongs to you, and life won’t have another choice than to give you what
you’re asking for.
If you are that type of person, learning what comes next won’t be a problem
for you, it’ll be easy because in the real fight, the one inside you, you already
won, and it is the only one that really exists.

Chapter 1
Why invest in real estate?
“I’m fighting for an education that teaches us how to think and not how to obey”. – Paulo
Freire
Real estate is, will be and has always been the first choice of investment for
people that have lots of money. Soccer players, multi-millionaires and many
other types of people invest in real estate and use it as a vehicle for their
money to work. Many of them have even knead their fortunes since the
beginning by investing in real estate. Even if you don’t start with much it is
simple to earn a lot of money in this business as long as you have a plan.
This book is about having a plan.
In this chapter, I’ll teach you in a simple way terms that you’ll need to know
in the real estate investing world. Starting with reasons to invest and finishing
with the different types of income that the sophisticated investor can obtain
with his or her property.

This is very important because it’ll be like if you were talking some other
language, if you arrived at a country and you didn’t know the local language,
you would be in big trouble. It would definitely be best if you learned the
local language.
The same thing happens with real estate, to play its game you need to know
the vocabulary, terms and definitions.
Throughout the second part of this book we will make references to the terms
that are explained here and later we will give you examples in which we will
explain them to you with more detail.
Next, I’ll give you some examples to try to show you why is it really a good
option to invest in real estate:
Tax laws encourage people to move their money and invest in real estate.
As we’ve said before, governments need people to invest in the country’s
economy, if people save their money, the economy slows down,
unemployment increases and trade stops. A sector that the government
encourages constantly is real estate.
People always need a place to live and because the value of properties
increases and increases almost daily, governments need professional investors
that will provide this at a more reasonable price so that people that don’t have
enough money to buy a house of their own can at least rent one. Governments
are afraid that there won’t be enough people that want to invest in real estate
and that this will cause them trouble, this is why they reward people that do
with tax laws. As you may know, people that don’t have homes end up being
thieves which means that these also helps the government with one other big
problem that they have to deal with.

Banks are willing to lend you all the money that you need, real estate
investments are a very good to find financing.
If you ask your banker if he’ll lend you money to speculate in stock exchange
or to buy Bitcoins, he’ll probably tell you no, if you have a stable job and
good income he may open you a personal line of credit but with very high tax
rates so that you can do whatever you want with that money.
On the other hand, if you tell him that you want to invest in real estate, he’ll
be happy and willing to help you financing up to 90% of the property. The
job of a banker consists in loaning money and as we’ve said before they love
debtors and hate savers, just because debtors make the bank win money while
savers make the banks lose money.
Banks are dying to lend you money, if they don’t, then you must be doing
something very wrong, it’s their job to lend you the money that you need.
Buy them lunch, figure out how they think and what they think it’s important,
don’t forget to take notes. You should definitely have a really close friend
that is a banker.
In the first part of the book we also talked about how important it is to use as
much leverage as you can, it is almost impossible to become rich without any
type of leverage. A musician leverages from uploading his or her music to
platforms like YouTube, by doing this he or she only must sing one time in
order to make thousands or even millions of people listen to his or her music.
The platform takes care of reproducing the music as much times as it is
required. If they didn’t use these types of leverage it would be harder for
people to show their music to the world and to get paid for it.
With real estate it is the same thing, you don’t want to use all your money to
become rich by making an investment, you must use as leverage the money of
a bank or some other investor in order to do it. The big advantage that
investing in real estate has is that if you have $20,000 dollars in your account,
with real estate you could get assets up to $100,000 dollars using as leverage
the money of some bank. In the stock market or in some other market, if you
have $20,000 dollars that’s all you have. Almost no one would be willing to

lend you money to buy shares, to invest in investment funds, CDT’s or in
something else that doesn’t give you enough control over it.
You need to understand how the mind of a banker works, take him or her out
for lunch, analyze them, understand how their mind work, take notes and
listen very carefully. Find out what they think it is important in a person and
apply what you researched to be someone that they want to lend their money
to.
Income coming from rent is considered passive income.
As we saw in the last chapter, this type of income is the one with the lowest
tax rates, even if you’re paying your mortgage debt, you can start profiting
from your property since day #1. If the bank loaned you 80% of the payment
for the property and after paying the mortgage, insurance, taxes and other
expenses, you still have money then you have in your possession an asset that
is giving you constant cash flow.
You should use your passive income to measure your wealth, it is your ticket
to achieve financial freedom. Even if you have lots of money if you don’t
have passive incomes, you’ll never be free and you’ll have to pay high tax
rates, By investing in real estate if you have a well thought plan, you can start
having passive income since day number one. Your goal should be that your
passive income overcomes by far your expenses, and in order to do it, you
have two options:
1. Increase your passive income.

2. Lower your expenses.
Although sometimes it’s good and healthy to stop making unnecessary

expenses, the option that I recommend the most is the first one. Let’s be
honest, we all want to live in the best house, drive the fanciest car, send our
kids to the best schools, go on vacations around the world, use the best
clothes and please ourselves occasionally. We all want a wealthy and
abundant life.

If you lower your expenses by driving a normal car and living in a normal
house, it’s possible that you get to achieve financial freedom and your goals,
if that’s what you want, it is okay. But for the majority it’s better to raise your
possibilities than to lower them. Imagine that whenever you want the best car,
the best house, the best clothes you just must go out and buy them. Visit
properties, analyze them, make deals and close them. Search by all means
how to achieve those things that you want, don’t suppress your spirit. The
problem isn’t having liabilities and debt, the problem is not having enough
assets and passive income to produce enough cash flow in order to cover the
expenses of the life that you want.
In summary: before acquiring a liability, acquire an asset that’ll cover the

expenses from that liability and make you wealthier.
If your property gets valued, your capital income can be deferred for
years, allowing you to re-invest that money that was supposed to be paid
to the government in the form of taxes.
Let’s say you bought a property that was valued in $100,000 dollars, you used
$20,000 dollars out of your own money to pay it and the bank gave you the rest.
Two years later, your property’s value raised up to $120,000 dollars. There are
many things that you could do to obtain that extra profit, let’s say that you found
somewhere else better to invest your time and money, you can sell it and make
the other investment without paying taxes over your profit. This is known in the
United States as the 1301 exchange, in different countries it has different names,
but it ends up being the same thing. This is a simplified example and before
doing anything remember to consult it with a professional that can take of your
personal case.
What I want you to understand is that the government won’t punish you with
taxes as long as you reinvest that money in real estate again. You have a certain
period from when you sell the property until you buy another one in order to
“evade” that punishment. There are conditions that you must meet but this
leverage is huge, anyone could simply defer paying taxes for ever as long as he
or she complies with the requirements that they must meet. By investing money

without having to pay taxes it’s easier to earn money and it’s easier to become
rich.
In the last example, you would be using the money of three different sources to
invest:
1. Yours, you only paid 20% of the property.

2. The banks money, they paid 80% of the property.
3. The governments money, as they didn’t charge you taxes (when you do
meet the requirements in order for them not to charge you) you would be
re-investing with their money because in some other case it was money
destined to pay them.
If you find another way in which you can re-invest with the bank’s and the
government’s money, please let me know.
At this rate it won’t take you long to achieve financial freedom. There are many
types of leverage that you can use that’s something very difficult to find when
you’re investing in some other type of assets. Remember that taxes are the
biggest expense of your life, if you invest professionally, they can be reduced
drastically. The key is to do whatever the government wants you to do.
In the United State elections there was a lot of trouble because Donald Trump
refused to say how much he paid of taxes, I think it was because that figure was
very close to zero. If the average citizen found out that their president isn’t
paying taxes, they would be really mad about it. It’s very likely that people after
knowing this wouldn’t have voted for him and they would have censured him,
they would have thought that he was breaking the law by evading taxes or
something like that. Trump knows about the types of leverage that exist and that
he can use in order to pay lower taxes, one of them, one that he uses frequently,
is the 1301 exchange. By doing so he maximizes the profitability of his
businesses and investments, and this helps him invest with the bank’s money in
a legal way. He is the king of real estate.
Anyone could do the same thing but it’s easier to say that something can’t be
done than to study, consult, practice, fail and keep trying. Things like that are
done all over the world.

The best reason to invest in real estate is this word: control.
No other asset gives you as much control as real estate investments. You have
control over your expenses, your income, your assets, your liabilities, your taxes,
your tenants and your administration. You have control over almost everything,
if you invest in an intelligent way, for cash flow, you have control over almost
all the market because you won’t care if it collapses or not.
On the other hand, if you invest in shares or Bitcoins, the control you have is
almost none. If everyone starts selling their Bitcoins, it’s value will tumble down
and there’s not much that you can do. If I had for example, millions of shares
from Amazon it would be very hard that Jeff Bezos would answer my phone
calls for me to tell him what I think about his operations, Jeff wouldn’t care what
I think about the way that he is spending the money of his company. By
investing in real estate, you can call your lawyer, your banker, your accountant,
your broker, your administrator or your tenant and they would all give you their
time, they are your “partners” and they can give you advice whenever you want.
You are in charge of your investments and almost no other investment gives you
this luxury.
I’m sure that you’ll find many more reasons to invest in real estate, these are just
the ones that I thought were the most important.
Keep in mind that this book is just about real estate investments to rent your
properties to families or other individuals. Difficulties to rent hotels, offices, or
shopping centers may vary according to the market.
For example, nowadays I wouldn’t like to invest in hotels, offices or shopping

malls because Amazon, Alibaba, Mercado Libre and other virtual stores are
making the physical ones, obsolete. Airbnb and HomeAway are leaving hotels
without clients and Starbucks around the world are becoming everyone’s offices.
I don’t know what will happen in the future, but I believe it is best to be
prepared because things can change drastically in a short amount of time.
At least for now, people will need a place to live and because having a house of
their own is becoming more expensive day by day, renting a home will keep
being something viable for a while.

Since I do not want to be a hypocrite or an enthusiast, I will also briefly name
you the biggest difficulties you will face in this business so that you are
prepared:
Real estate is not a liquid investment.
This means that if you make a mistake and buy the wrong property it may take
you a while to sell it and to get rid of it. Before you buy a property, you have to
imagine that you’re getting married, think about real estate investment as a
marriage. Divorces can be slow and painful, and separation can be, in some
cases, traumatic. You must analyze and study very well each little thing before
committing to something like that.
If on the other hand, you bought shares from a company and not so long after,
you realized that you made a mistake and that you want to sell your shares, the
problem would be smaller, in hours or even minutes you could easily sell all of
the shares you bought without any problem. Assets in paper, such as shares have
more liquidity, it is very easy to get in and to get out, they are easier from this
point of view.
Real estate requires exhaustive administration.
If you’re going to buy shares from a company, it is less what you have to
administrate. Most people follow this process: buy and pray, there is not much
left to do after that, unless you are a sophisticated investor and know how to do
business with purchase and sale options and with the short method. Shares are
very popular because they don’t require much administration or time. They are
perfect for the average investor and for this reason in the United States, Canada,
Australia and other countries, people are forced to invest in the stock market for
their retirement. In the United States, people invest in a plan called 401(k) which
is basically a diversified investment fund where people save money for their
retirement. It’s the worst investment that someone could make because the
market could collapse and this as it happened with the 2008 crisis could easily
erase all the money that people worked their entire lives for. Imagine being 65
years old and realizing that someone made you lose all the money that you saved
throughout your life, this is what happened in the United States during the last
mortgage crisis.

However, these investment vehicles continue to be used in these plans because
all the investor has to do is to is keep putting money in, it doesn’t require
administration or financial education.
In real estate you must deal with tenants, bankers, real estate brokers,
technicians, lawyers, administrators and accountants, if you buy in a private
complex, you’ll also have to deal with decisions made by the owner’s
committee. It isn’t as bad as it seems, if you’re a mess administering, you can
always hire a company or someone that’ll do it for you. Later, I’ll dedicate a
whole chapter to talk about this because administration is a very important part
of this business, it can determine if you succeed or if you fail in this business.
Problematic tenants.
At some point if you don’t check your tenants’ backgrounds very well, you
could end up hosting someone that doesn’t pay you or that may sue you.
Something else that might happen is that tenants that live in the same private
complex have trouble between them and that this makes other tenants feel
uncomfortable or make them not feel safe. The worst thing about bad tenants is
that they scare the good ones, your priority has to be to take care of your good
tenants.
All of this is something that you have to study, and I’ll help you with that later
on. You need to learn very well who to get in business with, it is better to lose
some money while you search for someone good to live in your property than to
rent it to anyone and have to go through a slow and rough eviction process.
These are, in my opinion, the biggest threats that real estate investors are up
against, no one said it would be easy, it is better that you know the two sides
than for you to tell me that I didn’t warn you. If nothing I’ve just said scared you
enough to quit, let’s continue.
In real estate, an investor needs to get these types of income:

Rent income.
This is the passive income you earn every month that comes from the rent that
your tenants pay, you need to make sure that you start receiving this income
since the first day, after making all the required payments you must have some
money left that will go straight to your pockets. If the property doesn’t give you
money since day one, I recommend not to invest in it. If you make an investment
today, it should make sense TODAY, not tomorrow. You shouldn’t invest in
something with the promise that tomorrow something will happen, you
shouldn’t invest in things that you don’t control. Remember that if you invest
this way, you’ll be gambling.
In summary, income from rent is the profit you have left after paying all
expenses.
Income from capital gains.
Capital gains are given when the value of your property raises, but if you take a
close look at the situation, you’ll see that it isn’t the value of your property that
is raising but the value of money that is going down. It’s inflation with the
appearance of capital gain. Most of the time the value of properties doesn’t go
up as people think it does what happens is that they get more expensive due to
inflation caused by the banks printing and printing money.
A way of knowing if your property is getting valorized shouldn’t be measured

by the way that the value of money drops, the low tax rates from banks, the
quantity of fools that want to get in the market or someone else’s opinion. The
best way of measuring capital gain would be to do so with the operations of the
property, by this I mean, with the raise of rent or if your expenses got lower.
Don’t measure capital gain based on a valuation that may or may not be true,
you better do it with the real value of cash flow that’s being reflected in your
financial statements.

If your income due to rent gets higher, you can go to the bank and show them,
and they immediately will see the raise in the property’s value and will let you
refinance it with a new valuation that they make. By doing this you can obtain a
loan based on that new capital gain and it would be free of taxes and your tenant
would have to pay for the amortization of the new debt. Remember that it is debt
free of taxes, I’ll give you a small example:
Let’s say you have a property valued in $100,000 dollars, the bank financed
$80,000 dollars and you invested the rest. When you bought it, you noticed that
its rent was below the market level. Your property is valued based on its
operations. Let’s say that you went from charging $1,000 dollars in rent to
charge $1,200 dollars, the bank acknowledges that raise in its value and they
make a new valuation of the property this time for $120,000 dollars, then, you
ask for a loan based on that capital gain worth ($20,000 dollars) and it is paid by
your tenant and you get to keep $20,000 dollars free of taxes. If you can
remember this is the same value that you made as down payment for the
property, from this moment on, everything you make is profit, your ROI is now
infinite, you have back your $20,000 dollars and can use them to buy another
asset and to repeat the process. You’re making money out of nowhere and your
debts are being paid by your tenants.
It is a simplified example, but it is basically how it works, I used simple

numbers for you to understand the concept, but you should know that this may
vary depending on the conditions of the market. These types of businesses exist
but you must know how to look for them, tie them up and manage them.
Amortization:
Amortization is a kind of an income for you because it means, in this case, that
your tenant pays the loan.
For example, when you ask for a loan to buy a car, or when you charge your
credit card with vacations and an Armani suit, that debt makes you poor as
we’ve seen before. That debt is toxic because no one else is amortizing it for
you, you are the one that pays it in full and it is worth so much money.

If on the contrary you acquire debt to buy a property and you have a tenant that
rents it, that debt will be amortized by your tenant. You get in debt and at the
same time you’re being paid, that’s how things work in the world of the rich.
The idea is that if you're going to acquire debt, someone else pays you for taking
that risk. Middle class people and poor people acquire debts and pay them for
themselves, that is not something intelligent to do.
From now on, if you are going to take a risk like this one, make sure that
someone else pays for it.
Depreciation income.
Even if it seems as an expense it’s actually an income that comes from a tax
shelter given by the government.
Depreciation is basically a tax reduction that the government allows you to do

because your property is losing value. It’s not common that your properties lose
value, but even then, the governments let you depreciate your properties and pay
less taxes because you are providing housing to many other people. If they give
you a deduction for depreciation and you don’t have to pay $2,000 dollars in
taxes, then those $2,000 dollars are for you, it is money that the governments
give you to keep you motivated and to keep you investing. If it wasn’t for that
deduction made by the government, that money would be for them. When you
ask for a loan to buy in the real estate market, they give you a deduction for
depreciation, even when your property is being valorized you keep receiving a
deduction for depreciation. Almost every single country in the world allows this
deduction for depreciation as long as that property generates cash flow. Personal
homes don’t apply for deductions of depreciation, they don’t count with this
advantage.
I’ll explain it to you with an example based on one of the biggest real estate
business of the world: McDonalds.
As you know, McDonald’s isn’t just a burger business it is also a real estate
business, Ray Kroc used to buy lands and then he rent them to those people that
wanted to create a franchise, his business was really a real estate business not a
fast food business.

Let’s say that McDonald’s earns one million dollars as their ordinary income, as
it is ordinary income and as we learned before, this type of income must pay the
highest tax rates. In some countries they would have to pay up to 30-35% for
that million dollars that they earned.
Now, let’s assume that the real estate business of McDonald’s obtains a tax
deduction of depreciation for one million dollars.
The million that they had as ordinary income is replaced with the income that
they had from the deduction of depreciation, the final result is that McDonald’s
ends up paying 0 taxes.
If McDonald’s only had the food business and it didn’t have the real estate
business, they would have to pay between $350,000 dollars and $500,000 dollars
of taxes for the million that they have as profit. The deduction for depreciation
that they get, reduces the tax payments that they have to do for their ordinary
income to zero ($1 million dollars of ordinary income, minus a deduction for
depreciation of $1 million dollars).
The last example shows the big difference between ordinary income and passive
income, if McDonald’s didn’t transform that ordinary income into passive
income, they would have to pay very high tax rates and they would probably
would not be the biggest real estate business of the world.
Then, we ask ourselves like crazy, why rich people become richer and why the
difference between rich and poor people becomes bigger and bigger every single
time.
The following financial statement will show you with greater detail the
differences between the four types of income:

One image can say more than a thousand words, take your time and try to
understand what this financial statement is telling you, if you’re having trouble
understanding it, talk it out with a friend or consult it with your lawyer or your
accountant. It’s very important that you understand how these types of income
work because that can determine if you fail or if you succeed in a investment.
Later, we will explain with more detail these terms, for now just try to
understand the words and terms used in this business.
These types of income are the ones that you must analyze when you want to
make an investment in real estate, you have to consult it with your banker, your
broker, your lawyer and your accountant.

You would be surprised about how many people call themselves investors and
don’t even know 2 of these types of income. Most investors only know one or
two and I’m sure you can guess which one it is, yes, you’re right, capital
income.
The average investor only knows how to buy cheap and sell more expensive,
they wouldn’t even know how to get that capital income without having to pay
high taxes.
It doesn’t require much study or administration in order to buy cheap, sell

expensive and pay many taxes, this is how many people operate. They play a
game of fools as we saw before, and everything will be okay as long as the last
one isn’t them. Therefore, people say it’s risky to invest but it shouldn’t be.
Anything you do, if you don’t know how to do, it represents a risk, control
decreases risk and knowing the four types of income significantly decreases the
risks.
Next, I’ll show you the 10 biggest advantages that you’ll find in this business if
you invest like a professional:
1. Control: The biggest advantage of all of them is control, if you invested in

some other type of asset you wouldn’t have that much control over your
income, expenses, taxes or over the investment itself. If you invest in
Microsoft, Bill Gates wouldn’t answer your calls and listen to your
recommendations, Microsoft would be a great investment, they’re one of
the biggest companies in the world but you wouldn’t have control over
anything. Others would decide the future of the company, not you.
Investing in real estate is the complete opposite, you must have at your
disposition a group of specialists available to help you maximize your
income.
2. Passive income: you have cash flow every month even if you work or if
you don’t. This type of income is the one that pays less taxes and gets you
closer to financial freedom.

3. Leverage: Investing in real estate is a very good way to easily find
financing, banks fight to loan money to people that want to invest in real
estate. Your banker won’t lend you money to speculate with shares or to
buy Crypto coins. If you have $20,000 dollars in your bank account, you
can transform them into $100,000 dollars investing in real estate using as
leverage your banker’s money. On the other hand, with shares, gold or
Crypto coins, you’d still have only $20,000 because it’s really hard that
someone lends you money for these types of investments.
4. Amortization: Your tenants take care of paying your debt. If you make a
good deal, do your homework and do the math, your debt will be
amortized, and you’ll still have money left. Risk decreases very much
when you know what you’re doing. Being in debt shouldn’t be something
risky, risk starts when you’re the one paying your own debt.
5. Depreciation: The government offers you tax deductions if you invest like
a professional in real estate, even if your property is gaining value, they
still let you depreciate it and benefit from this tax shelter. It is an extra
profit that the government gives you to keep you motivated and investing.
6. Imagination: If you try to use your imagination and creativity with shares,
bonds or CDT’s you can end up in jail or you can lose a lot of money. A
value of a property can raises due to the use of creativity, you can add one
room, change the classification of the area, remodel, build more floors,
etc.
7. Scalable: In this business you can start by owning a small apartment and
end up owning a whole building, you can move to other areas like
storages or offices. Depending on the conditions of the market you can
expand and diversify your investment portfolio.
8. Administration: Good administration can make the value of the property

get higher and could put money straight into your pockets. The good thing
is that most people don’t know how to administer their properties
properly and end up making the value of their properties go down, which

is a good thing because if you are someone that knows how to administer
properties you can end up buying their properties at very low prices and
raise their value again.
9. 1031 exchange: It has a different name in each country, but it is basically
to defer tax payments based on the capital gain that you had from selling
your properties as long as you invest that money you earned in another
one. You can defer taxes indefinitely as long as your money stays in the
game.
10. Appreciation or goodwill: It’s not common that the value of properties
gets higher, what’s really happening when that occurs is that the
currencies are losing its value because banks keep printing and printing
money as they wish to. Inflation is the one responsible for the raise of the
value of the properties, as money loses its value, you’ll need more of it to
buy a property. This last advantage is the one that you should take into
count last or you shouldn’t even count with it, investments should make
sense without having to contemplate this possibility. The problem with
this strategy is that it only makes sense if the market is at its peak, if the
market is in recession this strategy could become suicide.
Market collapses occur regularly, even if it’s in the stock market, in real estate,
in gold or in Crypto coins, markets will collapse and to predict a collapse is like
saying that someday it’ll rain again. It is better to be prepared and to invest for
cash flow, this way no one will take you out of the game.
In this chapter I tried to teach you the most important terms of this business. The
examples that I showed you are simplified but in real life you need to consider
many other factors. All that I’ve said above has strictly educational purposes and
you should always have a group of professionals to assist you with other things
you may need, later we will dedicate a whole chapter to the people that you need
to have in your team.
I hope that after reading this chapter you have a better idea about what this
business is really about, we will have more examples that show different cases,
but we will keep it simple for you to be able to understand it.
Don’t worry if you didn’t understand everything completely, it’s normal, you
didn’t learn how to ride a bike at your first try, you fell plenty of times even after

learning how to ride, is part of the learning process. Take it easy, if you’re loyal
to your process you’ll understand eventually. You need to experiment with some
things before fully understanding them, You need to know that you’ll never
know it all, just put yourself out there and keep learning on the way.
Remember that your learning process won’t be finished as soon as you finish
reading this book, on the contrary, you would’ve just started with it. Your
process will be done as soon as you put yourself out in the real world and you
start searching for properties and analyzing them.
Entrepreneurship is the art of doing not of learning to do, get out there and make
it happen.

CHAPTER SUMMARY:
- A professional investor knows there are four types of income: rents,

capital gain, amortization and depreciation.
- Real estate requires an exhaustive administration.
- The best advantage of investing in real estate can be summarized in one
word: control.
- Analyze the big challenges that you will face in this business and
choose if you want to conquer them.
- Capital gain is the last factor you should count on, you shouldn’t count
on your property getting valorized, it must be a good investment even
if the market fluctuates.
- Your investment must give you money TODAY, not tomorrow.
Investments must make sense since day 1.
- “If something doesn’t give me cash flow then I want nothing to do with
it”. This should be your business policy.

CHAPTER 2
Fairy-tales
“As soon as you learn how to read, you’ll be free forever”. - Frederick
Douglass
There are many prejudices and assumptions regarding this business, you’ve
probably heard some and these may have changed your mind to get into this
business. People seem to think that to be in this business you must have a lot
of luck, a lot of money or a lot of academic preparation but I think that isn’t
true.
Luck exists but you must be working for it to apply like people say it does,
you will have a lot of money but just when you start, you’ll gain a lot of
knowledge but only as soon as you start analyzing properties and as soon as
you close some deals. In less words, start, you’ll only get all those things by
doing it, not before. If you stop to think all the things that you’re missing to
be on this type of business you’ll never give that leap of faith, if you keep
waiting for all the traffic lights to be green, you’ll never go anywhere.
People search for excuses and some create them to explain to themselves why

they are not where they want to be right now: “I don’t have money”, “I don’t
have enough experience”, “I don’t know anyone”, “I didn’t finish school”, “I
have kids”, I could go on and on.
The point is that if you’re the type of person that is used to blame other
people or situations for the one that you’re living in, then, you don’t stand a
chance. If you’re not the one to blame for where you are in life, you’re
doomed. Who else can if not you? If you don’t face the problems that are
keeping you where you are right now, you won’t move on. If you keep saying
that you don’t have time, that you need a payroll check, that you don’t know
enough or that you’re scared, you’ll keep feeling like this for your entire life,
if not today, then when? Thinking that things will change tomorrow or that
they will change after something that you’re expecting happens is an illusion.
What you do tomorrow is determined by what you do today.
In this chapter I’ll show you some excuses that people make up to convince
themselves not to enter in this business, I want you to listen very closely to
that little voice in your head, that voice that tells you not to do it or that scares
you every single time. Be honest with yourself and see if you feel identified
with the excuses that I’ll show you. It’s very important that you know
yourself, if you don’t face your fears and limitations, you’ll get nowhere, and
they will stop you even before you begin.
EXCUSE #1: I HAVE TO BE A MILLIONAIRE IN ORDER TO

INVEST IN REAL ESTATE.
People think that investing in real estate is like buying a property to live in,
they think they must save up a lot of money and then buy the house of their
dreams, it is a false pretense that keeps people out of this business.
Your priority when entering this business must be to find very good
properties at very good prices that after renting them and doing all the math,
they give you a good profit, that’s all you must do. Where do you get the
money from? That should be the least of your problems, there are millions of
banks, financial entities and organizations that would be willing to lend you
money for these type of investments, there are also people waiting for

someone else to give them very good ideas to invest in, that would give them
money, they would also be willing to give you financing.
Money abounds in the world, as we saw in the first chapter, every single day,
banks print billions and billions which makes money limitless nowadays. If
you’re trying to come up with an excuse not to be in this business, at least
find one that is more original and creative. In the XXI century money is a
limitation would be something absolutely crazy, something from another era.
Money nowadays are ideas, if you have a good idea then you have it all,
money will come because it follows good ideas.
Of course, it’ll be hard at first, it’s not supposed to be easy and if it is, then
something is wrong. At first you know no one, you have no experience and
banks, or investors will take time to accept your offers, it’s normal.
Everything that’s hard at the beginning ends up becoming very easy at the
end if you persevere in it. Everything that you do so naturally today was very
hard at some point. Imagine a baby that says after falling many times that
walking just isn’t for him and that he’ll keep crawling his entire life.
You’d be surprised if you knew how much people would like to invest in real
estate, you need to know where to find people willing to lend you money like
in events, courses or fairs, I’m sure you’ll find them but you have to use every
single resource that you can. Go to every single bank, talk to brokers and ask
if they know someone interested, assist to mortgage judgements or talk to
your family, use as much creativity as you can. In this business imagination
reigns. It is definitely better to invest in real estate due to the volatility of the
market values, don’t let the amount of money that you have in your bank
account determine your lifestyle.
EXCUSE #2: I CAN ONLY START INVESTING IN SMALL

PROPERTIES.
It’s always best to start small, a journey of a thousand miles starts with a
small step and just like this, there’s nothing wrong by starting with properties
worth between $100,000 dollars and $200,000 dollars, by doing this you’ll
gain experience and you’ll trust yourself to raise that number of zeros in your

investments.
When I say this, I don’t mean that you should reject a property worth million,
sometimes it’s better to invest in properties worth millions than to invest in
properties worth thousands of dollars.
When you buy a property worth $100,000 the mortgage tends to endorse the
buyer’s wealth and ability to pay which means that in a small transaction such
as that one, the bank won’t look that much at the property but in the assets
and income of the buyer.
If you try to acquire a loan for a bigger property like an apartment complex
valued in millions of dollars, that loan would be guaranteed with the
mortgaged asset. The mortgage loan is backed up with the value and
operations of the property. If you acquire a property worth $100,000 dollars
all the responsibility falls in your shoulders, you have to assume everything
whether it’s good or bad, for these types of properties it’s harder to have
control over the appreciation of it, it depends mostly on the valorization of the
neighborhood. Control in this case is lower.
On the other hand, if you buy an apartment complex worth $10 million
dollars, the value of this depends almost exclusively on the operations of it,
it’s valuation it’s based on the cash flow received from rent payments, when
this cash flow raises, the property’s value does too and you have more control
over the property. If you have a good administration, you take care of your
tenants and you keep your income at the market level, your property will have
an excellent development and its value will raise. You have full control over
all these aspects.
Occupation rates also play a very important part, if you rent one of your
properties that’s worth $100,000 dollars to a family it’ll have an occupation
rate of 100% which means that everything will be working okay and you’ll
have a constant cash flow, but if no one wants to rent that property, then
you’ll have an occupation rate of 0% that could even bring you a negative
cash flow.

If the property’s worth $10 million dollars and it counts with 25 departments
and one isn’t occupied, you’d still have the other 24 that are paying rent
monthly, this will insure that your mortgage and insurance payments are
done. Risk decreases exponentially, if one tenant leaves, you have 24 more
that compensate the one that left.
Another factor that you should consider is that it may be easier to find
someone willing to help you finance big businesses than small ones, when
they analyze you to give you a loan, they know that your credit risk is much
greater than if they analyzed a large property that has more effective
operations. Even if it doesn’t seem like it, it’s easier to get $10 million dollars
than to get $100,000 dollars but just if you know what you’re doing.
Start small if you’d like but keep dreaming big. Never discard big deals and
don’t ever let that little voice in your head tell you that you can’t do it.
Convince yourself that you’re capable and a great entrepreneur and you’ll
succeed in big and small affairs.
EXCUSE #3: I CAN’T FIND PROPERTIES THAT GIVE ME

CASH FLOW, I’LL BECOME WEALTHIER IF I BUY
CHEAP AND SELL EXPENSIVE.
The only way to being wealthy is by creating or buying assets, keeping them
and obtaining the profits that they make, this way you’ll be able to sleep
calmly at night.
Many people think that by buying cheap and selling expensive they’ll become
rich, if this has worked for them it’s pure luck, nothing else. It’s a very risky
way of investing and by doing it like this, they won’t have many advantages
that professional investors do like depreciation.
People are not patient, and they seek to recover their money as fast as they
can, so they sell the property as soon as it gets valorized to recover their

money. The problem is that they’re not being intelligent, they must pay taxes
and then go looking for another property to invest in. Having to analyze a
property, do the math and then buy it requires a lot of effort to sell it that fast
as they do and having to repeat that process all over again.
You don’t need to sell your asset to recover the money that you invested, why
lose all that effort that you made buying that one? Why not keep the asset and
recover your money with the cash flow that it gives you? That’s the best way
to proceed, don’t you think so? You can get new financing for the property
and ask for a loan based on the appreciation, withdraw the allowance of
equity, not incur in high taxes and keep the asset, it is the ideal scenario, don’t
you think so? You wouldn’t have to put in more money for another
investment, you just keep it without paying taxes. I’ll give you a simple
example:
Let’s say you bought a property for $200,000 dollars and it got valorized up
to $240,000 dollars, if you sell this property, you have two options:
1. Invest that money into another property applying the 1031 exchange
and defer the taxes based on the capital gain.
2. Keep the money and pay lots of taxes.
By selling that property, you have those two options, the first one is the ideal
one as long as the one you have isn’t giving you the results you want, and you
already have another one that fits your investment portfolio better.
If what you’re looking for is to recover your down payment, not pay taxes
and keep your asset, the best thing to do is to refinance the property. The bank
will give you a loan based on the appreciation of the property ($40,000
dollars) and that money would be free of taxes because it’s debt and the new
loan is paid by your tenant as we’ve seen before. You get to keep $40,000
dollars that were your down payment for the property that was worth
$200,000 dollars, you keep the asset, you don’t pay taxes and you have your
money free again in order to make new investments. You did not cause a
fiscal event, you didn’t have to get rid of the property and you got your
money back in a short amount of time.

This is the safest way to build your wealth, as the properties valorize, you can
refinance and profit from it, everything without having to pay taxes and
having also, full control of the asset.
The numbers shown above, only work in a rising market, although markets
collapse and properties sometimes lose their value due to a bubble or a
change in the law, in the long run, 90% of the properties get valorized and
when this happens, the strategy shown in the example is the best one to profit
from all of this but still, you shouldn’t count on your property getting
valorized. Your property should be a good investment in good and bad days
in the economy and it’s getting valorized you should know how to profit from
this as a professional. With strategies that I’ll show you later, you can learn
how to valorize your property. The best way of controlling appreciation is to
improve your cash flow, but we’ll explain this later.
As you saw before, there are two ways to take advantage of valorization: as a
professional and as an amateur, which one do you want to be? Do you want to
pay taxes, lose your assets and take many risks or do you want to build a
long-term wealth, have many green houses and sleep better at night? It’s your
choice.
EXCUSE #4: I DON’T HAVE TIME TO LOOK AT

HUNDREDS OF PROPERTIES.
This is something completely false and absurd, each one of us have the same
24 hours per day, you always have time to do the things that you want. When
someone tells you that they don’t have time is because they don’t have their
priorities straight. Answer the following questions:
- What’s most important, to make your boss rich or to become rich

yourself?
- What’s most important to build passive income or to keep working for
ordinary income your entire life?
- What’s most important, having a little bit of safety or to be free and
live in your own terms?
- What’s most important, that your kids see you happy, doing what you

love to do and use you as example for their lives or that they see you
bored having to go to work every morning?
- What’s most important, watch tv and drink beer or go looking for
properties?
- What’s most important, to spend your money in a car that as soon as it
leaves the store is getting devalued day by day and it’s a liability or to
invest in real estate that gives you cash flow and that you can inherit it
to your children?
- What’s more important, going out with your friends to a party every
weekend or staying home reading about businesses and investment
opportunities?
- What’s most important, going to a mall and spending your money on
clothes that you don’t really need or signing up for a real estate
seminar?
Everything that you do every day defines you, if you say that you don’t have
time today, that you can’t do it, that you don’t know enough, that you’re
scared or that you have debts to pay, guess what: tomorrow you’ll be saying
the same thing, tomorrow won’t be different than today unless today you’re
working to change your tomorrow.
Wanting something isn’t enough. If after you finish this book you say: “I’d
like to invest in real estate in the near future”, consider your time lost.
Investing in real estate should be your priority, get out right now and start
looking and tell everybody that five years from now, you’ll own 20 properties
that are up for rent. Follow your dreams no matter the situations, quit that job
you hate, make the bank threaten to evict you if you don’t pay your debts,
force yourself to invest in real estate and make it something urgent.
Believe me, when we are between succeeding or dying, we always end up

succeeding. When the last door open before death is success, then and only
then, you’ll have it. The attitude that you must have after finishing this book
is: “I’ll try or die trying, I’ll be the best real estate investor in existence,
Donald Trump will want to ask for my advice and I’ll never need a payroll
check ever again, I’ll live in my own terms and my future generations will be
rich thanks to what I’m doing today”.

You should be obsessed, you should want to dedicate as much time as you
have to this, if you work 100 hours per week in a year, you’ll just be paid
double than someone that works 50 hours per week. We all have the same
time but not the same priorities.
Ask anyone if they want to become rich, they’ll look at you like if you were
some kind of weird and answer that of course they do. Then, ask them how
much money they are planning to have in the next five years, how will they
earn it and what are they doing today to achieve that tomorrow, they will start
to put their feet on the ground, their respiration will change and they’ll start
shaking that’s when you’ll realize that the person you just asked those
questions to, it’s just a dreamer.
We all dream about becoming rich, but just a few write down how much
money they want to have and in how much time will they achieve that.
Saying “I want to be rich” it’s just a dream and I can assure you that it won’t
happen. But when you say, “I want to have $100,000 dollars annually from
my passive income that I earn because of my properties in five years”, that is
a goal that I’m sure it’ll end up becoming true.
Stop lying to yourself, you have all the time in the world as everyone else.
Start today, invest just one hour daily to study, visit and analyze properties, in
one week you would’ve worked in it seven hours, in a year it’ll be 365 hours,
how would your life be after you’ve studied, visited and analyzed properties
for 365 hours? Without any doubt you would be a step ahead from 99% of
the people that invest their time watching tv or people that run every single
day to their office to have their ordinary income.
At first you define your habits, then, your habits define you.
EXCUSE #5: I CAN’T START BECAUSE I DON’T KNOW

ANYTHING ABOUT REAL ESTATE.
This is may be the most used excused and this misinterpretation drives people
far away from this business.

You don’t need to know much in order to start but you need to start in order to
learn very much.
How are you supposed to know a lot if you don’t even start? Do you think that
people are born knowing everything? Not even with the best book or the best
course you’ll be able to know everything or will be prepared, you must start,
believing that you know what you’re supposed to know or that you’ll learn it in
the way. That’s what life is about: acting, making mistakes and then correcting
them, but sadly or educational system doesn’t believe that that behavior is
intelligent, they believe the opposite. Schools punish students that make
mistakes by saying that they’re stupid, meanwhile, those who memorize
everything and never make mistakes are supposed to be the most intelligent
ones. I can assure you that in real life, things are completely different.
Get out, make mistakes and keep trying new things. You’ll see that there are
new frontiers and maybe you’ll come up with an idea that no one else has and if
you make mistakes it means that you’re doing something that hasn’t been done,
it means you have opportunities but if you stop making mistakes then consider
yourself dead. People that stop making mistakes, that stop learning and that stop
exploring new frontiers make part of the living dead group, they have sad and
boring life’s, they just go in straight lines, from their houses to their offices and
backwards. The worst thing that can happen to you isn’t failing, it’s accepting
mediocrity as part of your life. If you think taking risks is dangerous, try having
a routine for life, it’s mortal.
Success is a journey not a destination and your success will be the person that
you turn out to be after that journey. Your success will be measured in the
experiences that you accumulate even if they’re good or bad, your success will
be the people that you meet in the process and the people that try to bring you
down, all of this will represent a valuable lesson in your life. We all start the
same, one day we get out of bed, we yawn, we get up and start. It may seem like
a little step today but, in a few years, you’ll look back and realize it was a big
one.
There’s just one way to know about real estate and that is to make business in
real estate, remember there is no other way.

CHAPTER SUMMARY
- What excuses are keeping you from having the life that you want? Be
honest.
- Which other excuses do you use? Be honest.
- Drop every single excuse and fairytales of this business.
- We all have the same 24 hours, but we don’t have the same priorities.
- You don’t need millions in your accounts, you need millions in your
mind.
- You can’t make excuses.
- Just start.

Chapter 3
Prepare to parachute yourself.
“Live as one wishes: only that deserves to be called success”. - Christopher
Morley
I hope that by now you’re convinced that this is what you want to do, by now
you should also have an idea of what this business is about. You know your
limitations, your fears and your beliefs but you’re ready to face them. Before
you go out and buy your first property you must make some important
preparations, the next few chapters will be a guide to help you with this
process. From setting your goal to studying the market and making sure
everything with the math adds up, you’ll be new to this process, but you’ll
have to do it as a professional. You’re not choosing a property for you to live
in, you shouldn’t care if you really like it or if it’s in a neighborhood in which
you would go out on a Saturday to take a walk, you need to care about the
numbers, the actual state of the property and how you think it’ll turn out to
be. In less words it's nothing personal, it’s just business.

WHAT’S YOUR GOAL?
Before you parachute yourself, you need to have a goal in mind, that’s not
optional, if you don’t know where you’re going, how are you supposed to get
there? Most people don't know where they’re headed and then, they ask
themselves why is it that they haven’t reached the point where they want to be?
“I want to be rich”, “I want to be financially independent” or “I want to be my

own boss”, those are not goals, those are vague and senseless dreams. If you ask
a real estate broker to help you find a property that’ll make you rich, he won’t
know what they’re talking about and no one will be able to help you because
there are millions of ways to become rich.
Your goal has to be specific and you must have a plan of action and a specific
time limit to achieve it. What do you mean when you say you want to be rich?
How much money do you think a person should have to be considered rich?
When do you plan to have that money and how will you get it?
I’ll show you an example of the difference between a dream and a goal.
A dream would be something like: “I’m looking for a property to rent, I would
like to invest and change the type of income that I have in my life”.
If you tell this to brokers, administrators, agents and lawyers, you won’t get
anyone to call you, even if they wanted to, they wouldn’t know how to help you.
Many of them will probably think that you’re not serious and that you don’t
know what you’re talking about, they won’t know which properties to show you
because they won’t have any type of reference of properties that’ll fit in your
investment portfolio.
A goal would be something like this: “I’m looking forward to invest within the
next 18 months in a complex of 6 units of low-income housing, in the north of
the city that gives me $3,000 dollars of average annual income”.

Do you see the difference? Now a real estate broker would be able to help you
get what you need and what you had in mind, they’ll know that you’re serious
and what you’re talking about.
BUILD YOUR TEAM
Having a team full of specialists means that you will have less bad surprises
throughout your process. Saving money and doing it all by yourself may seem
like a good way to go at the time but I can assure you that in the long run it
isn’t, and it can end up being really expensive. Save the surprises for your
birthday or Christmas.
Having a partner in this business may be a good idea, it’s always good to
have someone by your side that complements and support, besides, if you
have someone that’s always there and you must tell everything to, it’ll be
harder for you to quit.
What to look for in a business partner? The following are my

recommendations:
● You already know what they say: “If two people agree on everything
then one of them shouldn’t be there”. There should be debate and space
in the partnership in order to give opinions and points of view and both
of them should feel comfortable doing this. At the end of the day, if
you always agree with your partner, what do you need him or her for?
● Your partner and you must have the same goal, it’s normal if you have
different opinions, it’s okay if you disagree in some details, but the
goal must keep being the same. If you’re always trying to convince him
or her of trying to get to the same goal, then maybe you should break
that relationship. If your partner wants to sell the properties as soon as
they get valorized and your goal is to keep them and build a long-term
wealth, then you have a big problem. It’s better if you talk this out
before you even think about entering in a partnership because being in
one is like being married and the only way of avoiding a divorce is not
getting married.

● Both partners must have the same commitment level, you’re looking
for someone that wants to invest in real estate just like you, not to
become a babysitter. If you have to be pushing and pushing your
partner to check out properties or to work on Friday nights, then you’ll
have difficulties. You both should have the same level of commitment
because both of you are equally involved in this business.
● You need to know very well the values of your partner, you need to
know if in a moment of need, he’ll leave you alone to face banks and
tenants or if he will stay by your side and help you through everything?
Will success make him or her ambitious and try to rob you or will he
be honest and transparent over all? It doesn’t matter his or her studies,
if they have money or who he knows, what truly matters it’s that they
are true to their beliefs, if it isn’t the case then it’s not worth it.
If you decide to team up with someone you should check the list above,
remember the advice that Warren Buffett gave us: “you can’t make a good
deal with a bad partner”.
The following list is about the people that you need to have in your team,
don’t feel discouraged by it, you don’t need to have all of them in your team
since day #1. Some of them will enter your team along the way or maybe you
won’t need them at all. Some of them are just useful for specific situations,
others you must have them always by your side like a lawyer, an accountant
or a broker.
These first ones are key for this type of business and you’ll need them to start
in it.
- Real estate broker: They must be specialized in the zone in which you
are looking forward to buying properties, they must have full
knowledge of the market and they’ll help you understand it, you’ll tell
them from the beginning the goal that you set, and they’ll help you
achieve it. It’s very important that you have a good relationship from

the beginning because they are the ones that’ll give you the best deals
as soon as they get them depending on how you treat them.
But there is something you need to know, a broker is usually a seller,

they work for commissions, they are usually not investors and their
goal is to sell as much properties as they can, because of this, you need
to be careful differentiating a sellers speech from a true investment
advice, as Warren Buffett said: “ don’t ask an insurance seller if you
need to have more insurance”.
- Accountant: This person will help you with your finances it doesn’t
matter if it’s with your personal ones or the ones from a property of
yours, you need to find the best accountant if you want to find the best
deal. The advice that they will give you in a matter of taxes is priceless
and those will help you save up millions, remember that taxes are the
biggest expense of your life.
- Administrator: I assume you’ll have thousands of properties so you’ll

need a company or someone that’ll help you manage all of them, this is
something fundamental because based on this, the value of the property
can easily drop or raise. Keeping track of all the properties, dealing
with tenants, keeping the occupation rates high and taking care of the
properties it’s a lot of work that is why the person that has to do it,
must do it in an excellent way. When you are going to buy a property,
this person will give you advice and assess you with the operations of it
and this way you’ll know what buying it implies.
- Lawyer: Contracts can be very complicated for people that know little
about them, a slight change in them can mean that you have to pay
more, that you can fail or that it can affect you long-term. You’ll need a
lawyer when you go to a bank to ask for a loan or when you’re buying
a property, counting on someone that will help you with purchase-sale
contracts it’s very important and is key in this business. They can save
you a lot of trouble and they will keep every movement of your
properties within the law.

It is possible that someday you’ll have to go through an eviction
process, these things can get ugly and you’ll learn many things about
them, for these types of things it is also very important to count with a
lawyer that will help you in the process and that makes sure that the
contract was very specific since the beginning with the eviction part.
Laws change every day and it is hard to keep track of it so unless you
are a lawyer, you should leave that part to someone else.
Those four people should be in your team since day one, I don’t recommend
that you start doing business without them and without knowing who are the
ones that will be in your team and help you in that process.
The following list is about people that you may need during certain situations,
don’t worry right now about how or why you’ll find them or need them, you
just need to have it present for when you actually do:
- Investor or mortgage agent: You need to find someone that

understands about real estate investments, this person will lend you
money and will show you the best deals in the market with properties
that adapt to your portfolio. Your mission is to close the best deals and
this person will provide you the money you need.
- Contractor: Sometimes it’s easy to get excited with the deal that
you’re making, and, in that excitement, you can forget little things that
will cost you money in the future, a contractor is someone that sees
things that we don’t. Before buying a property, I recommend that you
hire one that will help you inspecting it and telling you how much
you’ll have to invest in repairs. If the property needs big repairs, you
can ask this person to make a report with those things that need to be
fixed and you can show it to the actual owner and maybe he’ll consider
giving you a better price for it.

- Appraiser: It must be someone specialized in the market that you’re
focusing on and this person will also help you determine the value of
the property that you’re hoping to buy, this will give you certainty that
you’re not paying more money than it should be.
- Insurance agent: Your investor and your banker will need you to have
insurance for your properties in order to get better financing and even if
they didn’t it’s better if you have it in case of emergencies, you must
have the adequate coverage at the right price.
- Tax and property advisors: Taxes are something very important that
you need to have in mind, you need specialists in income taxes and in
the property that you have in order for them to give you the best
advice. What you pay them ends up being very little compared to what
you end up saving. Tax laws are complicated and change constantly,
this is why getting advice on this topic it’s fundamental.
When you have many properties and start growing as an entrepreneur

you’ll need a property advisor that helps you protect your assets,
nowadays it’s a trend to sue anyone and steal everything they have,
many lawyers help people do this and it isn’t very intelligent to study a
lot and work very hard so that someone sues you and you end up losing
everything. You need an expert to help you protect your assets.
You need to have in mind that everyone has to win, don’t try to get
discounts, do the complete opposite, pay them as good as you can,
thank them, congratulate them on their birthday, call them and
congratulate them for the good work that they are doing, give them a
little extra money if they help you close a very good deal, all of this
will make them be more honest, work harder and think of you first
every single time that they get a very good deal.

I could explain more these topics but it would make us look away from
the real topic of this book and I am not specialist in this topic, I just
wanted to show you the people that I think you may need in order to be
involved in this business, under any circumstances you should think
that all of this is something that you can do by yourself. Dedicate your
time to find very good properties and let the specialists do what they
are supposed to.
Once your goal is established and your team is organized you can
really start in this business, you will know already what is it that you
want, and you’ll have people by your side to support and advice you in
the process.
Remember that making business is a teamwork.
In school if people asked for help during an exam it’s considered to be

cheating, in real life, rich people solve their “exams” in teams. They
know that they don’t know everything or that they don’t have all the
right answers, they find people that know about what they don’t to help
them solve what they need and learn from them. Two brains are better
than one, except in school where asking for someone else’s help is
considered to be cheating.
At the end of the day it doesn’t matter which type of business you
decide to follow, shares, real estate, cryptocurrencies or whatever, your
true business will always be people.
Real estate has little to do with real estate but everything to do with
people.

CHAPTER SUMMARY:
- A written goal is just a dream.

- You need to decide what is it that you want to invest in, where, at
what price, how much money are you expecting to earn and in how
much time will you achieve that.
- You need to analyze if you want to parachute yourself alone or
with a partner.
- Set up your team and get out of there to achieve your goals.
- Real estate has very little to do with real estate but everything to do
with people.

Chapter 4
Become an expert in your
market.
“By working faithfully eight hours a day you may eventually get to be boss
and work twelve hours a day”. - Robert Frost
How well do you think you know the area you live in or the area in which you
want to invest? Every single day you pass in front of the same buildings, the
same stores, houses and neighborhoods, right? You must be an expert of the
area you live in or even in your city.
But how much of it are you actually aware of? Are there more buyers than
sellers? Do you see the same sign of “for sale or for rent” since a very long
time ago? What does this tell you? Are there safe jobs near the area in which
you want to buy? Are there any construction plans right in front of the
property that you want to buy? Do you know how will this affect you?

Everyone can find a beautiful property in a good neighborhood, it’s very easy
to see just these things, even a kid by just seeing that can tell you to invest or
not to invest based on the esthetic of the property and what it’s in sight.
Eyes are responsible for seeing that kind of things, the problem is that
investments can’t be seen with those eyes. What truly matters isn’t what you
see at first, but what you have to really observe in order to realize. True
investments can’t be seen at first sight.
It’s not what you don’t know what can cause you problems, it’s what you
think you know but ends up being false and this can cause you a bitter
surprise.
In the last chapter, you defined your goal, it had to be something specific, you
focused on a market and then on a sub market. You had to be specific in
every single detail in order for your team to be able to help you. If people
don’t know what is it that you want, then they won’t be able to help you.
In this chapter, I’ll help you to analyze the market in which you want to
invest, you need to be very observant and don’t let yourself be fooled by the
appearances and deceptions that your eyes may see at first. You’ll start seeing
“invisible” details that you didn’t see before; those details may be the
breaking point that make a property a good or a bad investment. You must be
objective and don’t let yourself be distracted by appearances when you are
investing.
When you want to buy a house for you to live in, you’re interested in the
house in general, maybe you check if it’s in a good neighborhood and if the
security it’s alright, you’ll look at its front, its finishes and if you end up
feeling that chemistry, you won’t look any more in the market, you won’t
think about nearby job offers or the quantity of buyers and sellers, the market
doesn’t matter that much, if you like it and you can pay it, there’s not much
left to think about.
But when you’re going to buy a property as an investment, the house itself
loses importance, things get reversed, now the market is more important than

the property. I’ll repeat it to you in bold letters because it’s very important
that you keep this in mind.
The market is more important than the property that you’re about to
buy.
Next, I’ll show you the four most important aspects of the market that you
must analyze when you want to invest in a property.
Supply & Demand
Economy is simple. The first thing that you have to do is analyze the supply
and the demand of the market that you’re looking to invest in, you want to
know how things work there and what to expect.
Supply is defined as the number of properties available for rent in the

corresponding submarket.
Demand is defined as the number of people that want to rent a property.
What you’re looking for is a high demand and a low supply, by this I mean
that you want many people are willing to rent a property in that area and that
there are very few properties available for rent there.
Supply is easy to calculate, you just need to talk to a real estate broker or with
your own broker that knows the area and tells you how many properties there
are available for rent, and they will give you all the available details.
But don’t be fooled, supply may vary or change, that is why you also have to
analyze the future supply, for example, future constructions or people that are
selling their properties in the area. The properties available for rent may be in
different “phases” even if it’s planning, construction or permit gathering. You
also need to check if there are properties with building permits because all of
this may mean that in the future the supply may get higher and with-it
competition may also get higher.

If in the future the supply will get very high, maybe it’s best if you don’t
invest in the area.
Demand it’s a little harder to determine but you can consider these next steps
to help you determine it at first sight.
1. Occupation rate: if the occupation rate is high then you can say that the
demand is high, if many of the properties for rent in the area are
already taken you can also say that the area has a good demand. But if
it has a low occupation rate then this means that the demand is low in
the area and that maybe it’s better not to invest there.
2. Discounts: another thing that you should look for is if in the area there
are discounts encouraging people to move in, if the demand were high
enough, there wouldn’t be any purpose for these encouragements to be
there. When the demand and occupation rates are low, they tend to give
benefits to people that move in to encourage them to rent properties
there.
Taking into consideration these factors may not give you an exact demand,
but they may help you understand it better and give yourself a better idea of
its rates.
After doing this analysis and knowing better the supply and demand of the
area that you want to invest in, I hope that you get to the conclusion that in
that area the supply is low and the demand is high, if it’s the other way right
now or in the future, it may be better for you to check for properties
somewhere else. Remember that you need to maximize your profits and make
sure that there are many tenants wanting to move into your property. As we
will see later, the operations and how you handle your property will
determine its value.
The following factors that I’ll show you are very important because they
affect directly the supply and the demand. These are three factors that every
professional investor has to take into account:

JOBS
Detroit was a desired place by entrepreneurs, and it was where Henry Ford
and many other manufacturers wanted to install their companies. Those lands
couldn’t be destined for crops and that made them cheaper and ideal to build
up their industrial factories there. Millions of people moved there which made
the demand raise exponentially.
When these factories closed their doors and moved to countries like Mexico,
China or India, those jobs disappeared, workers left, and the real estate
market collapsed.
Detroit taught us every real estate investor a valuable lesson, this one:
Properties are only worth as much as the jobs in the area, if there are no
jobs available, the market tends to collapse.
This must be the biggest indicator for you when you want to invest
somewhere, if you know that there are many people hiring around where you
want to invest, then you’ll know that there will be many people looking to be
hired for those jobs and needing a place nearby to live in.
The number of jobs in the area and the more “stable” that they are, is the
biggest booster of the demand.
It may be true that some people prefer to drive a little bit to get to work and
live in a big and beautiful complex but most of the times, properties near
those jobs are the ones that win in terms of demand even if they are not the
most wanted ones, it’s a fact: people follow jobs.
Making sure that around the property that you want to invest in there may be
many stable jobs offers is something very important, but don’t let yourself be
fooled, you must see the bigger picture. Even markets with many jobs offers
around can have many properties up for rent which ruins the balance that
exists between supply and demand.

You should also be very careful with how stable those jobs around your
property are, check if they are renowned companies and if they have a good
future or if they will collapse soon.
Always have in mind that massive job disappearance affects directly the
economy but more specifically real estate. It’s very important that you keep
this in mind and even more now, where the globalization has made massive
unemployment a reality in the west.
LOCATION
Location is the most important factor for some people, but not just the
neighborhood the property is located in but also the relationship between
supply and demand, you need to look for a property with these characteristics:
- High visibility: the idea is that people are able to see the “for rent”
sign, if it’s hard to see it’ll be harder for people to know that your
property is up for rent and you’ll have to use other methods to make
people know about this and that may cost you more money. Remember
that the more people that see your sign, the more probabilities you’ll
have of renting your property which will make your occupation rate
and your cash flow higher.
- Unique characteristics: you need to find a property that separates itself

from the others, it can be new finishes, a panoramic view, a covered
garage, that it is close to shopping malls and universities or a better
space distribution. Properties with these characteristics tend to have a
higher demand and a low supply.
- There is a phrase used by real estate investors: “Buy the ugliest

property in the best neighborhood”, it makes a lot of sense.

Don’t reject a good neighborhood just because you think it’s expensive, there
are opportunities in every market; you just need to know where to look for
them.
POPULATION
It doesn’t matter if you have the best property with the best location and at the
best price if there’s no one interested in renting it.
Once you establish the market you want to invest in, the value of your
property will be given by its operations, those depend on its income, expenses
and on its tenants. The value of a property won’t be based on a valuation that
could change or vary any second it will be based purely on its cash flow. The
more cash flow that the property produces, the higher its value will be and for
this to happen you need to make sure that your property is located in a zone
where there’s a high demand so that your occupation rates are higher.
You need to stay away from the markets that don’t attract people unless
you’re sure that this will change soon because of new jobs, universities or
investment capital, you need to look for markets with a high flow of people.
Look for a market where people are arriving and not leaving.
You can also consider the next indicators of market growth:
● The appearance of new companies: Sometimes, factories and

companies move their operations to new cities, this causes that many
employees have to move also and search for a new place to live in,
that’s when the demand gets higher. Corporate relocations increase
population rates immediately.
● The development of new roads: These projects are usually made in

order to generate new traffic patterns and turn abandoned and far areas
into fresh and new ones that attract jobs and capital investment.

● Big projects like stadiums and shopping malls: Sometimes, urban
redesign concentrates in a new stadium or a new shopping center, these
new places attract thousands of people and generate many investment
opportunities especially in real estate.
● Arrival and presence of universities: The presence of universities

enhance the real estate business, new professors and employees help
pushing the economy’s growth in the area which means that occupation
rates of properties near the universities for example, will increase.
● Airports: Real estate located near airports are very valuable, they are
growth engines and nearby businesses tend to be very successful.
Airports tend to draw many people around and governments are very
careful about its surroundings which means that it is very likely that
your property may get valorized easily.
You need to analyze very carefully everything above, take your time to do
your homework and get to know your market better than anyone else, finally,
have this in mind:
● In some countries the natality rate has gone down considerably. That
population tends to decrease instead of increasing; it isn’t such a good
indicator. In Japan and in many other countries in Europe, population
rates tend to go down which is not good for real estate. Make sure that
wherever you're looking to invest there is a considerable future raise in
the population rates.
● Analyze how accessible can housing be for an average person in a

particular market. If buying a house becomes very expensive or even
impossible for someone average, then renting a house can become a
viable option. If on the contrary, buying a house turns out to be cheap
even if it is because of the market values or the low tax rates in the
banks then many people will start buying which means that occupation
rates for investors hoping to rent will decrease and that’s not good for
them.

Look for a market where it is worth much more to buy a house
than to rent one.
As I tried to show you in this chapter, good businesses can’t be seen

with your eyes at first sight. I want you to be prepared and use
everything that I’m teaching you before you buy a property.
Many people say that investing is risky but what’s really risky it’s not
taking the time to analyze very well the market in which you want to
invest. If you don’t study very well the area and the economy of the
market in which you want to place your investment, many things could
go wrong.
Have control over your investments, control your money and control
your business, the opposite of risk is control. The best way of having
full control is to know better than anyone the market in which you
invest, become an expert in this and I can assure you that closing
excellent deals will eventually become something very easy for you.
Remember: The risky part is not the investment but the investor.

CHAPTER SUMMARY
- Look for a market to invest in which the supply is low, and the
demand is high.
- The market that you’re looking to invest in must have stable
jobs, remember that properties are only valuable if there are jobs
in the area.
- Invest in markets where people are arriving, not leaving.
- Make sure that your property has unique characteristics that
distinguishes from the rest.
- Buying a house should be much more expensive than renting one
in the sub-market that you choose to invest in, if you don’t, it’ll
make it very hard to find and keep tenants.
- Become an expert in your market and in your sub-market.

Chapter 5
Your profit is when you buy,
not when you sell.
“If algebra and calculus were necessary to be a good investor, I would have
to go back to be a newspaper delivery man”. - Warren Buffett.
You don’t need to go to Harvard or be a NASA special scientist to see the

difference between a good and a bad deal, however, the line that separates
both of them is very thin. It’s very easy to go from a good deal to a bad one.
How do you know to differentiate both of them? With numbers.
Numbers tell you stories and you need to listen, numbers tell you if you have
positive or negative cash flow and they also tell you when it is that you’ll get
your money back from an investment.
At the end of the day, numbers are everything.

This chapter is exclusively about numbers, but don’t worry as long as you
know how to add, subtract, multiply and divide, you’ll be fine. You definitely
don’t need a diploma to close a good deal, real estate deals are all about
common sense.
You should only buy a property if everything is okay with the numbers. Don’t
believe those things they say about the value getting higher or that tomorrow
they’ll start building a new shopping mall around the corner, believe only in
the numbers. You should have all this clear before negotiating a property:
● The value of the property is not the one that the salesman tells you, it’s
the one that the numbers tell you.
● The offer you make will be based only on the story that the numbers
told you, if the story doesn’t add up, then you just don’t accept.
● Make sure to analyze the property based on its actual and real
operations, not in future projections that may or may not be true.
● If you’re going to buy many units, for example an apartment complex,

the value should be based only in the actual cash flow of the property,
not in the future one.
The five steps that I’ll give you next are based on the four principles that I
just showed you, with these steps, you’ll have the certainty that your
investment will give you money since the first day. Make sure not to miss any
of them, it doesn't matter how much experience you’ve had or how many
deals you’ve closed, these steps are always going to be very important.
1. Find out the property’s income.

2. Find out the property’s expenses.
3. Subtract the expenses from the income and that’s how you’ll get the net
operating income.
4. Get the capitalization rate and the true value of the property.
5. Calculate the mortgage loan and the ROI.

Knowing the numbers and the operations of a property reduces considerably
the risk of the investment, if you don’t follow these steps you may have a
bitter surprise waiting for you. Imagine that you hope to get, based on the
numbers that the salesman gave you, $2,000 dollars of annual rent and then,
you found out that after subtracting the expenses of the property you are left
with $1,000 dollars of profit which means that your ROI was reduced in half
and this also means that if you were expecting to get your money back in six
years, now you’ll get it back in twelve.
Analyze very well each step.
Step 1: Find out the property’s income
Knowing this exactly is very important because unlike the mortgage loan that
you got for your property - that is based on your wealth - the mortgage that
the bank will give you for your investment property is based on its income.
The bank won’t use your assets as guarantee, they will use the potential
income of the property for the loan.
It doesn’t matter what the seller tells you, you always have to verify that
information, knowing that number is very important.
Every property has the following types of income:
● Current income: You get this number by adding all the previous
income that the property generated and to be more precise you just take
as reference the year before.
● Potential actual income: This is the income that the owner would’ve
had if all the units were rented in the past year.
● Potential future income: Sometimes the owner has his rent prices
below the market value, it’s important to know which the actual prices
in the market are so that you know what to expect in the future and
how will things run as soon as the property is yours. You can define
this type of income as the one you hope to achieve while renting

equally as the market values by having all the units rented and making
the most out of every single opportunity of increasing the income.
These three types of income are key, you should never forget them, they
define the success or the failure of an investment.
The owner will try to sell you the property based on the potential future
income, he’ll try to sell you the property as expensive as he can, it’s obvious.
You, on the contrary, will buy the property based on its current income, if you
buy based on future expectations then you’re toast. The property will never
have a 100% occupation rate, I can assure you.
If you buy it based on the actual income the mortgage will be lower and the
profitability will be higher.
If you buy based on the potential future income the mortgage will be higher
and the profitability will be lower.
Assume that the owner is giving you an inflated value from the beginning,
almost all of them do but it doesn’t matter. In this phase the only important
thing is that you get the numbers of the income that the property had, the ones
that it could’ve gotten if its occupation rate was of 100% and the income that
it would have with the occupation rates at the 100% with the market actual
values. Make sure you have that exact information.
Agents and brokers will provide you some charts in which you can see how
income and some other standard information interact, they show the
operational performance of the property but as I said before, these are inflated
numbers and that’s why it’s necessary that you verify them.
Let’s analyze the following example: The following are some projections that
your broker or seller will give you about the performance of the property,
shown in the following charts:

# of units # of Square Total of Rent Total Rent/
rooms meters square income amount square
meters of rent meters
income
8 1 70 560 $515 $4,120 $7.36
2 2 80 160 $615 $1,230 $7.68
10 average 72 720 (total $535 $5,350 $7.424
amount) (total
amount)
After verifying, the average actual rent is $520 dollars for units of two rooms
and $462 for units of just one room. This means that the chart above isn’t
based on the actual income and by this, I mean that those numbers are not
from the past year.
According to the information that they gave you, based on what the owner
said, the property generates $5,350 dollars monthly as the column “total
amount of rent income” says for its 10 units.
By verifying it, you found out that the actual income from rent is way lower
than what the chart says which means that the owner when doing this chart
based that information in the potential future income and not in the actual
income that he had from the past twelve months.
An amateur investor would assume the $ 5,350 dollar figure as true and work
from it. Most likely, as soon as you buy the property, take an unpleasant
surprise. Future potential income is supported by higher incomes, 100 percent
occupancy and maximum use of all available income, something that may
end up being concrete or not. I would run the risk of not being able to adjust
incomes at the market level. It would be without a lot of margin and would
not have the expected return.
After finding out the true income of the property in the last year, let’s see how
the chart changes when this value does too:

# of units # of Square Total of Rent Total Rent/
rooms meters square income amount square
meters of rent meters
income
8 1 70 560 $462 $3,696 $6.6
2 2 80 160 $520 $1,040 $6.5
10 average 72 720 (total $474 $4,736 $6.6
amount) (total
amount)
After replacing the real income that the property had in the chart, you can see
that the owner or the broker raised the monthly income by $614 ($5,350-
$4,736) and throughout a year, this “slight” change adds up to $7,368 dollars.
If you decided to buy that property before analyzing these aspects, you
would’ve gotten a yearly income about $7,000 dollars lower than expected
and you’d be in trouble. You could experience negative cash flow and for
how long do you think you can handle a negative cash flow higher than
$7,000 dollars?
Checking and verifying the numbers that the owners or the brokers give you
is free, but not doing it may turn out to be very expensive.
The last chart is based on the potential actual income, it’s a projection about
how much would you earn if you had an occupation rate of 100%.
As I’ve said before, the goal is to buy based on the current income which
means that we still need to find out the vacancy rates and other types of
income such as fines and parking lots and include them in the chart in order to
get a more exact value.
The owner will tell you the vacancy rates, but you still need to verify this
information with your broker because he must know very well that market
and he’ll know if that value is above or below the prices in it. Another way of

verifying that information could be by using the lease agreements.
Next, I’ll show you a chart given to you by the owner or the seller taking into
account the vacancy and some other additional income.
Owners projection / seller

Projected rent income $64,200
Vacancy (6%) $3,852
Net rental income $60,348
Additional income $400
Total income $60,748
They’ll give you that type of chart with that information, remember that those
are projections made by the seller or by the owner. Additional income means
fines, parking lots or some other services that were used to make some extra
income.
These numbers are based on the first chart that I showed you. It mentioned
the potential future income of the property, it had an occupation rate of 100%
and current market rents. We will make our own projection based on the
current income, we will take the rent from the past twelve months and use the
vacancy rate that the market has.

After applying to this chart our own projection, it would look a little bit like
this:
Owners projection/ Our projection

seller
Projected rent income $64,200 $56,832
Vacancy (6%) $3,852 $3,410
Net rental income $60,348 $53,422
Additional income $400 $400
Total income $60,748 $53,822
The only thing we changed was the value of the rents, the percentage of the
vacancy rates is the same and the additional incomes are the same too.
Can you see the big difference? $60,748 - $53,822 = $6,926 dollars of
difference between the numbers that the seller gave you and the real
projections that you verified.
I don’t know about you, but I think $6,926 dollars is a lot of money and this
may cause you trouble when you're paying the mortgage loan.
Now you know all the numbers:
Sellers projection: $60,748
Value obtained from the year before: $55,680
Our own projection: $53,822

The value obtained from the past year was given to you by the seller or the
broker and it represents the income that the property had the past year.
What conclusions do you get out of this? That salesmen try to trick you, it’s
normal, they all try to inflate the values assuming that the operations will get
better the next year.
The offer that you’ll make the owner or the seller for the property will be
based only in your own projection, ignore completely the numbers from the
past year that you managed to get and the numbers they gave you. Use your
own numbers and projections, they are easy to defend and justify during the
negotiation period.
Step 2: Find out the expenses of the property.
Expense information is very important because once you have it, you have to
subtract this value from the projection that you already made, that’s how you
find the net operating income.
Next, I’ll show you the information that the owner or seller gave you, the true
values from past months and your projections based on your investigation.

Each unit Sellers Values from Our
projection the past year projection
Maintenance $750 $7,500 $10,130 $10,130
and repairs
Public $390 $3,900 $3,900 $3,900
services
Taxes $410 $4,100 $4,100 $4,200
Insurance $210 $2,100 $2,100 $2,200
Emergency $260 $2,600 does not $2,600
reserve apply.
Total amount $2,020/unit $20,200 $20,230 $23,030
of expenses
Let’s analyze what these numbers are telling us:
- First, in “maintenance and repairs”, for some reason the owner or the
seller thinks that next year these expenses will be lower. We will base
our projection with the real amount destined for this expense in the past
few months.
- In “taxes”, we immediately assume that they will raise, they usually do
and that’s not something new. You can also verify this making a few
phone calls, you can find information about this in the internet or you
could ask the tax advisor from your team. Selling properties usually
cause taxes to increase that is why you need to verify it.
- In the “insurance” box, we selected a higher value because they tend to
change constantly. Remember that you must have insurance so that
banks lend you their money. The more properties you have, the lower
your insurance expenses will get, talk to several agencies and use an
average value in your projections.
Note in the total expenses the disparity of the numbers: $ 23,030 minus $
20,200. A difference of $ 2,830 dollars. An expense that you might have to
cover from your pocket.

The difference between the total amounts of expenses is $ 2,830 dollars
which I’m sure that it’s money that you will have to take out of your own
pocket to pay it.
Salesmen always try to use surreal numbers, they’ll try to make you believe
that the income is higher than the expenses of the property, this is something
normal and something everyone does, everyone tries to inflate the value of
their assets. The important thing is that you take the time to verify all these
numbers and get your own projection based on the investigation you make
trying to be as exact as possible.
It’s very easy to negotiate after doing this, numbers tell a story and there's not
much up for debate when this story is different from the one that the owner
told you.
Step 3: Subtract the expenses from the income and get the Net Operating
Income (NOI)
With the exercises we did before, you managed to calculate the income that
the property will have and the expenses that will need to be covered. The next
step is to calculate the net operating income.
You need to subtract the expenses from the income and remember that the
offer you make will be based only on your projections.
The number that this operation gives you has to be positive and hopefully
very big. However, have in mind that these number don’t include mortgage
expenses.
Let’s make a summary of all the information we have right now:
Our income projection: $53,822
Our expense projection: $23,030

Now, let’s find our NOI:
Net operating income: $53,822 - $23,030 = $30,792
I’ll show you the complete chart:
Salesman Values from the Our projection

projection past year
Income $60,748 $55,680 $53,822
Expenses $20,200 $20,230 $23,030
NOI $40,548 $35,450 $30,792
What does this chart tell you? It would probably be a very bad idea to invest
in real estate before studying, investing can be very risky when you don’t
know how to proceed. If you bought based on the salesman projection, you
could get $9,756 dollars less than expected, that is a huge amount.
You’ll see why it was so important to do all these exercises and to have
gotten the NOI.
Step 4: Get the capitalization rate and the true value of the property.
Don’t worry, it’s easier than what it seems. I’ll explain it to you in a simple
way.
Capitalization rate=NOI/Purchase price
You don’t need to buy the property to know the capitalization rate, actually,
it’s the complete opposite. You need to know the capitalization rate to know
the exact amount that you’ll be willing to pay for the property.
You can get the capitalization rate from a real estate broker or it might even

be in your projections, you don’t need to make complex math operations,
even a 10-year-old kid could do it.
You already know the operations that you can expect from the property, you
know how income and expenses interact. You know almost exactly what you
can expect from the operations of this property. What’s next is to find out
how much are you willing to pay for it, in order to do so, we will clear the
purchase price of the formula that I gave you above and it would look
something like this:
Purchase price= NOI/capitalization rate
Let’s assume that our broker gave us a capitalization rate of 8.93% but this
information depends on the market.
Purchase price: 30,792/0.0893
Purchase price= $344,815.22 dollars
This is the maximum amount that you’ll pay for that property, not a dime
more.
The seller asked for $454,065 based on his NOI and using the same
capitalization rate, that is a very high price. Depending on how much money
you put into that investment and on which tax rate will the bank loan you that
money, it’s very likely that you experience negative cash flow if you buy at
that price.
With this, I hope that you start to realize why the price that the owner or the
seller gives you is insignificant. For an investor, the true value of a property is
based on its operations not on some appraisal that may not even be true or
that could change anytime.

Step 5: Calculate the mortgage loan and the ROI
Let’s say you close the deal for $344,815 dollars.
Depending on the percentage that you want to finance, the value of the bank’s
insurance, the number of years and some other factors, mortgage loans tend to
change. In google you can find many mortgage payment simulators, it’s very
easy, you just must fill in some information and you get the value of your
payments.
Let’s say you have to make yearly payments of $23,850 dollars, we will use
this value for practical purposes and to make it easier to understand. The goal
in this book is to keep terms and operations as simple as possible. You also
need to remember that this payment depends on the tax rate that the bank is
willing to give you, the amount of time that it’ll take you to redeem the debt,
the down payment you make, the insurance that the bank tells you it’s
required and some other factors, this amount has only educational purposes.
Knowing the mortgage payment, we are able to find out the return on the
investment like this:
ROI= Profit/Down payment
The profit is the net operating income minus the mortgage payment. If we
subtract $23,850 from $30,792, we would be left with a profit of $6,942
dollars. The profit is the money that I’m left with after paying all the
expenses.
Let’s also assume that your down payment was of the 20% which is $68,963
dollars. Now, with this information we can see which the performance of
your investment will be.
ROI=6,942/68,963
ROI=0.1 or 10%

Remember that the value for mortgage loan we took was an estimated value
and that it can change depending on many factors. The purpose of these
exercises is that you get to know the terms and operations that you may need
to have more control over your investment. Values change depending on the
market, tax rates, amortization and other factors but the essence of the process
keeps being the same one.
It’ll take you approximately 10 years to recover your down payment

according to the performance of the investment. Remember that the value of
the property could get higher even if it is because of the market or because the
raise in your operations which would give you the opportunity of refinancing
with the bank based on your capital gain and this way you can recover your
money sooner.
You should also have present that the return on the investment is not based on
the total value of the property, it’s made only with the money that you
invested. What you need to know is how your money performed, not the one
from the bank.
These five steps are very important, and they will help you to evaluate
properties easily, you can even do these steps before having to visit the
property and if you get the profitability you hoped for then you can go and
check the property for yourself.
The zeros in the deals you make will keep growing and growing, the
profitability will also get higher, banks will start to lend you more money and
your risks will decrease. It doesn’t matter how much experience you have
always use these five steps and you’ll have no trouble.
Numbers lower the risks of an investment, when you get used to using
numbers during a business transaction, your emotions will disappear, and
they won’t get in your deals. You’ll see the bigger picture, with complete
transparency and you’ll be able to tell the difference between a good and a
bad business deal.
Investing isn’t risky, not having control is.

CHAPTER SUMMARY
- Use these five steps and study them with your team to evaluate
properties.
- Get the real values of the operations in the property and don’t be fooled
with what the owner or the seller tells you, always verify the
information they give you.
- Get together with your friends and talk about this exercise to
understand it better.
- Get out of there and use these five steps in your real estate businesses.
- Don’t trust the appraisal that’s given to you, only trust the numbers!

Chapter 6
Close the deal.
“When you see everyone in a hurry and running, it means is time to stop and
think”. - Unknown
Let’s review everything you have until now:
- You already set up the team that is going to help you close deals and
evaluate properties.
- You already defined your goal and told your team what you’re looking
for. You know how much you want to earn with your investment, you
know in which sub-market to look for, what type of property you’re
looking for and what it’s price should be.
- You’ve become an expert in your market, you know its supply and
demand, if there are safe jobs near it, how the population behaves in
this area and that you’re looking for a good zone.
- You evaluated the property and the numbers showed you if this was or
wasn’t a good business deal. You know how much the property is
worth and the profitability that it’ll give you.

You already know all the numbers of this property, now I’ll show you a few
contracts that you should have in mind and I’ll tell you what to look out for
before buying a property.
Regardless of what I tell you here about contracts, this information won’t ever
be as valuable as having a lawyer or a specialist in legal matters to asses you.
The idea is what you learn here, you can have a clear image of what is it that
you need to know and to apply in this business but having a lawyer, an
accountant and a broker in your team is absolutely necessary, nothing will
ever replace your team.
Let’s start with the contracts and legal issues that you should consider.
Sales contract
Once the buyer and the seller both agree to the terms, the lawyer can proceed
with the sales contract, this contract has all the details and compromises that
each part assumes. It can be a little extensive depending on the negotiation.
Key dates, operations of the property and deadline to make the closing are
explained.
Laws may change depending on the country, this is why you should hire a
lawyer that helps you with these topics and that can assess you with your
specific case. However, a sales contract should basically be composed of the
following:
- Total purchase price.

- The value of the down payment.
- The value of the payment needed in order to do a more thorough
investigation of the property.
- The moment in which the down payment stops being reimbursable and
who receives it.
- Contingency periods of time and the transfer of the property.
- Details about the title report, it’s content and it’s deadline.
- The way in which taxes, insurance deposits and more affairs between
the buyer and the seller will be split up.

- Financial contingencies related to the mortgage loan.
- The waiting period to receive all of the books, financial statements,
sales contracts, asset inventory, operative status, service contracts,
construction plans, recent appraisals, environmental studies, etc.
- Available timing to make a thorough inspection of the property.
Get together with your lawyer and make sure none of that is left out, each
case is unique, and you need to make sure that the contract has everything
you need, whatever isn’t there, it does not exist. Don’t let anything in the air,
put everything on paper.
Contingencies or circumstances
These contingencies or external circumstances must be documented in the

sales contract, they will give you the possibility of ending the contract in case
of unexpected events. If you’re having trouble with the loan or you find
something weird while making a more thorough investigation of the property,
you can end the deal and get your deposit back.
A lawyer will assess you telling you which unexpected events you should
take into account, these must be in the sales contract just in case something
happens.
You need to protect yourself from unexpected events, for example if you
don’t qualify for a loan or if you find something weird in the property, you
need to be able to end the agreement before getting yourself in trouble. You
should always have an emergency exit in case something goes wrong.
If for example you make a deposit of $100,000 dollars and you don’t get the
financing you hoped from the bank, it’s very likely you’ll lose the money if
you don’t have contingencies in your sales contract. You must anticipate
everything and have plans for the worst-case scenario.

Close the deal
Once you close the deal and make the agreed deposit, you still have plenty of
work to do. Your deposit is still reimbursable until you solve everything
related to the loan and until you make a thorough investigation of the
property. The amount of time that you must complete these things must be
stipulated in the contract.
Idelly, you should foresee everything that could go wrong: financing,

problems with the property’s title, pending fines, structural damage, lawsuits,
insurance, etc. If you don’t protect yourself from these situations, you may
end up making a bad business deal. Here is where it is very important to
choose very well your team, having a good lawyer, a good accountant,
banker, contractor and administrator is very important in this phase, you’re
about to get married. One simple mistake could mean you’ll have a long,
painful and expensive divorce and if you don’t want to find out in your
honeymoon that you married the wrong person, find out as much as you can
before saying “I do”.
Exhaustive investigation or required diligence
Most of the time they give you 20-40 days to investigate as much as possible
the property, you need to check every single detail, look in the past and check
all the available documents. Here, you need to be very careful, because if you
leave anything out, it doesn’t matter how small it is, it can end up being a real
pain in the ass.
Next, I’ll make you a list of the things you need to keep an eye out for, check
each of these with your team and make sure that everything is in order.

Verify the documents and papers of the property
- Check the contracts of each unit.

- Make sure that the rents add up with the numbers you used to calculate
the value of the property.
- Analyze the profile of the tenants, check their criminal history and
credit record. Find out if one of them owes money or has trouble with
someone.
- Check the financial statements of the last year where the income and
expenses are clarified.
- Check all the agreements and service contracts.
- Find out if there are rents below the market value, this is very
important because with this is what you’ll be able to raise the value of
the property by leveling it to the prices of the area. This should be in
your plans, it will raise your cash flow considerably. If your cash flow
gets higher, the value of your property will too, and you’ll be able to
get your money back faster by refinancing.
- Study the public services bills and find out if there will be a raise in
these soon.
- Check who works in the property, what time do they work, their
payroll, their contract and their vacations. Sit with them, find out how
they live, which are their experiences working in the property, their
current situation, make sure that they don’t have a record and run a
drug test, you need to be sure you can count with the people that are
working with you.
Verify the legal framework
- Make sure that the property satisfies all the legal requirements. From
construction permits to the fire code regulations. You need to be sure
that the property is not violating the law.
- If the property has had remodels or changes in its structure, make sure
that the permits are up to date and that the authorization was the right
one.

- Check the property’s title and its record. Close to where I live, a project
was being developed worth more than $150 millions of dollars, big
banks were involved, it was going to be a huge complex of houses,
suites, commercial premises, installations and green zones. They had
already started building and they had many sales. One house in that
complex was worth at least $600,000 dollars. Apparently, the land
where they were building belonged to a criminal that was arrested in
the United States and he had declared that he was forced, under many
threats, to give it to someone else. As you can imagine, the project
stopped and it is now in a process of expired ownership, all the
investors lost their money and the sector deteriorated because the
structure was left as it was.
Take all the precautions and check every document related to the history of
the property and its owners, you never know what you may find.
- Make sure that you’re not invading private property and the property
has no problems such as zoning violations.
Verify the agreed services
- Parking lot contracts.

- Public services.
- Administrative and cleaning staff contracts.
- Cable and air conditioning contracts.
- Advertising or leasing spaces contracts.
Check the exteriors
- Check if there are roof leaks, wear or lack of maintenance.

- Check if the gardening has any type of problem, if there are trees that
could damage the foundations or the surrounding roads.

- Check the state of the parking lots or if the roads need repairs.
- Make sure that the painting and finishes of the exterior of the building
are in good conditions, if people see that the property looks bad it’ll be
harder to get tenants.
- Make sure that the cables are up to date with the current regulations.
- Check the type of pipes, the old plumbing and if there is any type of
leak.
- Make sure you know the state of the ventilation systems, heating and
refrigerating. Check its record and how often would you have to do
maintenance.
Check the interiors
- Make sure there are no pests in the property.

- Make sure that there are no major damages.
- Make a list of all the missing elements.
- Study thoroughly how the tenants live, study their profiles, jobs,
occupations, hobbies, records and everything you can. You’ll be doing
business with these people so you should get to know them very well.
Congratulations! If everything went well, you closed the deal and became a
real estate investor. If you did your job well and paid attention while making
your projections and you studied very well the property, you will get to know
one of the wonders of the world: passive income.
The important part is that you took your time to analyze very well the
numbers and investigate the property deeply, if you missed any step or made
a mistake, it’ll be very hard to correct it along the way. Study very well the
last two chapters, get together with your team and follow the steps.

CHAPTER SUMMARY
- Meet up with your team and make a thorough investigation of the

property and all its aspects.
- Everything related to contracts and legal stuff should be revised and
approved by a lawyer that specializes in these topics.
- The idea is that you find every single problem with the property during
the investigation phase, they can make the price go down or if you
don’t feel comfortable with them, at least you’ll be on time to call off
the deal.
- Write down every single contingency to protect yourself.
- Keep an eye out for new deals: rents below the market value, excessive
maintenance expenses, advertising opportunities, vacant parking lots,
etc.

Chapter 7
Do you manage or contract?
“The success of a person is measured by the number of awkward
conversations that the person is willing to have with him or herself”. - Tim
Ferriss
Managing a property is all about raising the cash flow.
It’s not about repairing toilets, painting walls or gardening, the true purpose
of administering a property is to maximize as much as possible its income and
about keeping the tenants happy.
Administering a property is not a hobby or something you do on weekends,

it’s a full-time job. You need to know yourself and make sure that you’re
capable and have enough discipline to do it or if you should hire someone
else to do it for you.
Real estate managing is the key in this business, many people run away from
real estate because they are really bad administering their properties.

Therefore, most people like to invest in shares, gold, Bitcoins or other liquid
assets that require a minimum administration. Easy to buy, easy to handle and
easy to sell.
However, a big percentage of success in this business depends on how well is

it administered.
Advertising, marketing, income recollection, dealing with the tenants, hiring

external services, accounting, maintenance, budgets, legal procedures and a
thousand things more, make administering a property something that requires
dedication.
If you want to administrate the property by yourself, you must take care of the
following:
- Address problems daily: tenants will call you every day, because of
problems with the property and even because of fights with other
tenants. Here you’ll see how important it was to select very well the
profiles of your tenants, this way you’ll know which behaviors to
expect. However, I can assure you it’s very likely that you’ll have
problems between tenants or with the property.
- Occupying the property: The administrator needs to take care of the
advertising and marketing of the property to keep it occupied. The
better the occupation rate is, the more cash flow you’ll have.
Besides keeping the property occupied, it’s very important to be careful about
who you rent it too. The administrator has done conduct interviews, check
criminal records and credit records of the people that aspire to live in the
property. It’s better to have the property unoccupied for a while than to rent it
to the wrong person.
- Manage the employees: The administrator has to make sure that the
employees are highly trained and capable to do the work that the
property requires. They must be provided with the necessary tools to
work and keep in good shape the property, employees are very
important because they make sure that the tenants are happy. If a tenant

has a problem and it is not resolved almost instantly, they could move
out.
- Maximizing the income: A good administrator must be aware of the
area where the property is located, he or she must know the values of
rent in that specific sub-market and the characteristics of the most
wanted properties.
- Collect rent payments: There should never be an exception at the
moment of collecting the rent payments, if the administrator is
permissive, tenants won’t take him or her seriously. You are making a
big investment and you need to be sure that you’re getting the most out
of it, this is why you can’t give in. If a tenant is late you have to punish
him or her by charging them interests, you can’t afford to lower your
cash flow, if you do, it’ll be under your own responsibility. But I can
assure you that it’ll keep happening once you let it happen one time,
collecting rent payments can become a hard task if you’re permissive.
Charge as much as the law lets you and the contract lets you, this way, tenants
will think twice before being late or not paying rent at all.
- Legal affairs: The administrator has to do everything by the book, the

treatment with the tenants have to be clear and equal. Every country
has different laws, it’s important to know and respect them.
- Maintenance: The gardens, the front, the trash and the interiors of the
property require constant maintenance, the administration needs to
make sure this gets done well and constantly in the property.
- Availability: A real estate administrator has to be available for the
tenants always, they need someone who they can count on and call in
case of an emergency. The administrator needs also to make sure that
whatever the problem the tenant has, it is solved in a reasonable
amount of time.
- Evictions: This is the unpleasant part of the business; the administrator
has to take care of this in a very professional and human way. Evictions
can happen because of many things, the most common one is when
tenants refuse to pay rent. Their rights must be respected, and the
administrator has to do everything by the book. I advise to hire a
lawyer and make sure no laws are being violated in the process.

- Handle the budget: The administrator must have income and expense
records of the property, he or she needs to check them constantly to
make sure that things are going as planned. The budget must be
designed for unexpected events taking into account that they always
occur.
- Paying bills: Paying the bills on time is a very important task that the
administrator needs to take care of. If this task is done with
organization, it will prevent fines or service suspensions.
After reading everything above, it’s very likely that you don’t want anything
to do with this business and this book. If after reading that, you have a
headache, don’t worry, you can always hire someone or a company to handle
your properties and frees up your time for you to keep looking for properties.
The more properties you have, the cheaper the administration will get because
those companies will give you special prices.
Next, I’ll show you a brief summary of what you should look for and check in
a real estate company:
- Experience. At least five years administrating properties.

- Commissions for managing properties. They may vary depending on
the number of properties and the size, but they should adjust for you to
keep receiving positive cash flow.
- Reference of current and past clients. Talk to the people. They are or
were in business with and ask for their opinion on their work.
- Ideal accounting systems. Make sure that they have software’s and
many people in charge of accountability.
- Check their process and inside politics.
- Real estate license. Check how is their procedure when dealing with
evictions and if they check the criminal and credit record of the tenants.
- Trainings. Make sure that the company trains very well their
employees.
- Employees. Get to know the employees in charge of your property and
make sure they can handle the job perfectly.

A great administration is the key to success in the real estate world, if you
want the value of your property to get higher and to receive positive cash
flow, you need to make sure that your property has a good administration. If
you chose to do it yourself, have in mind that it is a full-time job, it’s not a
hobby or something you do on weekends. Remember it’s your money what is
at stake.

CHAPTER SUMMARY
- Analyze if the property will have a better administration if you do it

yourself or if you hire someone else to do it.
- Take good care of your tenants and make sure that there’s someone
always available for them, they are fundamental to this business.
- Don’t be permissive when you have to collect rent payments or fines,
the pace you show from the beginning will prevail. If you choose to be
tolerant and permissive, it’s under your own responsibility.
- Check thoroughly the profiles of your tenants, criminal, credit and
laboral records must be taken into account. Don’t let just anyone rent
your property.

PART 3
How to keep moving forward
“I’m in full control over my thoughts, so how can I have problems or fears?
What is outside of myself has no power whatsoever over my life”. - Marco
Aurelio
The worst dream that you can have in your life is a realistic one.
Everyone goes to school, graduates, looks for a job, works hard and tries to
climb the corporate ladder, everyone wants promotions and salary raises.
Every year there are millions and millions of people that graduate and start
looking for a job, how is it that people expect to find a job with that much
competition? How can they expect to have a good salary if each day there are
more people looking for less and less jobs? How do people expect to be doing
the right thing if they’re doing what everyone else is doing?
Everyone think it’s impossible to achieve big things and being ambitious,
they are used to being mediocre and to stay in a cubicle working all day long,
the level of competition between mediocre people is huge and fierce, this
makes the possibility of achieving realistic goals very unlikely. Paradoxically
by trying to be mediocre and by being in this high competition rate, makes it
very hard to succeed this way, the road that seems easy it’s actually hard and
hostile. If you want to live an average life, be mediocre and to have realistic
ambitions, guess what? You’re competing against everyone else. Everyone
tries to be 10% better than everyone else, but when you go after something
bigger, there’s no one that will compete with you, you depend merely on you,
you’re competing with the person that you see every day in the mirror.
The advantage of walking the extra mile is that usually no one does.

It’s easier to win by wide margin when everyone else is just looking to tie.
How is it that the same “recipe” keeps applying after at least a hundred years
and two completely different eras for more than 7,000 million of people
around the world? Wherever you go in the world, you’ll keep hearing the
same thing: “go to school, get good grades, get a job, work hard, get out of
debt and save money”. It doesn’t matter how good chef you are, if the recipe
is a bad one, there’s nothing left to do.
How is it possible that everyone needs exactly 8 hours per day to do their
work? Many are lucky that they’re fired, others have to stay stuck while
suffering a slow spiritual death that can last more than 40 years tolerating a
mediocre job and life.
Break the mold, be different.
Don’t follow the masses, don’t follow the status quo, go in an opposite
direction, do the exact opposite of what everyone else is doing. If everyone is
going in one direction, take the other one, you may stumble a couple of times,
but you’ll stumble across ideas that no one has ever had, you’ll get to a new
frontier, you will only succeed when you start doing what no one else is
doing. The competition for being average abounds in the world, if you find
yourself competing with everyone else, trying to get through a tiny door, I
think you’re in the wrong place.
Free yourself from the need of wanting to know everything, you don’t need to
know a specific process or to learn a special technique, forget all of that, quit
looking for certainty, you’ll only get an idea once you start.
Next, I’ll show you a small fragment of a speech Steve jobs made at a
university graduation:
“For the past 33 years, I have looked in the mirror every morning and asked
myself: “If today were the last day of my life, would I want to do what I am
about to do today?” And whenever the answer has been “No” for too many
days in a row, I know I need to change something.

Because almost everything - all external expectations, all pride, all fear of
embarrassment or failure - these things just fall away in the face of death,
leaving only what is truly important. Remembering that you are going to die
is the best way I know to avoid the trap of thinking you have something to
lose”.
If you’re left with something of this book, after reading it, I hope is this:
remember you’re going to die. Someone should tell us at the beginning of our
lives that we’re dying, that way, we’ll know it’s not a day more, but a day
less.
If you knew how fast people forget dead people, you’d stop caring about what
other people think and you would start living.
In a blink of an eye, we’ll all be gone.
One hundred years are nothing compared to infinity.
You’ll be doing good by having fun, in just one second, we could all be gone.
You’ll look back and say: “I should’ve quitted that job. I should’ve asked her
or him out. I should’ve moved to that city. I should’ve started that business. I
should’ve traveled more. I should’ve laughed more, now, I’m dying”.
In this section I’ll give you some advice and habits that you can use daily, but
none of them will work if you don’t make yourself aware that you may die
tomorrow or that maybe there won’t even be a tomorrow. When you are
aware of this, is when you’ll start living, nothing in this book or some other
book will be of any use to you if you’re not aware of this principle.
Take it one day at a time, use whatever you can, start today, start slowly, a
thousand miles trip starts with one simple step.

Chapter 1
Advice for entrepreneurs
“Always choose your passions and don’t ever ask if they’re realistic or not”. - Deepak
Chopra
9 out of 10 businesses fail in their first five years and for the ones that pass
that statistic, nothing changes: 9 of those 10 will fail in the following years,
this means that 99% of the businesses fail.
This statistic scares people and those that are looking for something safe, end
up exchanging their freedom for a payroll check.
However, with the arrival of the internet, social media and the world-wide
trade, this statistic will change for those who know how to adapt to the digital
era.
This chapter is dedicated to the entrepreneurs, we’ll talk about tips, advice,
abilities and common mistakes. For you to make part of that one percent that
succeeds you need to have very present the following pages in this book.

THE TALENTS THAT EVERY ENTREPRENEUR MUST HAVE
1. Sales: It’s nonsense to dedicate yourself to business and investment if

you don’t know how to sell, this is the number one ability that every
entrepreneur must have. It’s simple: sales=income. If you don’t sell,
you’ll be bankrupt, if you don’t know how to sell, you’ll be part of the
99% of the entrepreneurs that fail. Sales cover up almost every single
bad thing that’s going on in a business. Everyone is ready to buy, but
not everyone is ready to sell. People that don’t know how to sell ends
up selling their time for a little bit of money. You can learn how to self-
volunteering in activities, joining a network marketing, or finding a job
as a salesman or saleswoman. If you don’t know how to sell, don’t
even think about getting in business. It’s not a suggestion: you sell, or
you’re sold.
2. Marketing: What’s the use of having the best product if no one knows
it? Marketing is the capacity of awakening an authentic desire in a
market to buy your product. Every time I think about marketing, I think
about the campaign that made Apple in order to sale the iPod. All the
wonders of engineering and design that were used to create it, were
summarized in this phrase:
“One thousand songs in your pocket”.
Steve Jobs was never a computer genius, he knew only the necessary in order
to communicate with engineers and designers. His true talent was marketing;
the presentations of his products in Silicon Valley were legendary. If
someday, you want to learn how to present a product, talk in public or
provoke despair in your clients to have your product immediately, study
Steve’s presentations.
You don’t need to be Steve Jobs, marketing is an art that can be learned.
3. Oratory: “In the wall of my office, I have my university title hanged. I

have the certificate when I assisted Dale Carnegie's course of how to speak in
public because there, I learned how to stop my feet and my hands from
shaking each time I had to talk at share meetings”. That’s Warren Buffett’s

opinion.
Take oratory courses, speak every day in front of big and small audiences. If
you don’t know how to influence other people, you’ll have to walk alone.
The whole world steps aside when they see someone that knows where he or
she is going to, make sure everyone else knows where you’re going to.
4. Leadership: Leading people isn’t telling them what to do. Giving orders is
something a boss would do, not what a leader would. A leader’s mission is to
inspire everyone else to set everything aside for the group’s mission. A leader
tries to create more leaders. It doesn’t matter what you work on, your true
business is people. Set aside any type of business you think you’re leaning
towards and get into the people business. Your employees, your suppliers,
your assistants, your friends, your family, your clients… everything in this
world requires the ability of communicating with others.
5. Internet and social media: Internet and social media are here to stay, they
changed the world and keep doing it every single day. Big companies are
being left behind by entrepreneurs sitting in a garage with a computer or a
Smartphone.
In the agrarian era, you needed big terrains in order to be wealthy, in the
industrial era you needed a lot of capital. In the digital era, with a Smartphone
and a good idea, you can make business all over the world.
When someone says they need money to make money, haven’t they heard
about Dropshipping, heard about what people like Jack Ma and Jeff Bezos
has done, don’t they know about digital trade or social media? In what era are
they living?
You don’t need to be a programmer in order to be able to trade around the

world, you don’t need a lot of money or technical knowledge either. It’s very
little what you need to know to create a social media account with more than
one thousand followers, start a website and start selling to people. What are
you waiting for?

6. Education for life: How many people keep studying after they get out of
the university? Practically none, you can count with one hand the people that
after university keep reading, taking courses or seminars, it’s absolutely
ridiculous. Imagine the following: since you were 18 years old, until you
were 25, you went to the gym every single day. You got a very good trainer
and trained very hard, you had a diet, followed a special plan and were in
shape. After you became 25 years old, you stopped going, you thought that all
that you had done up until that point was enough for the rest of your life.
Stupid huh? That’s not how you stay in shape, when people get out of
college, they become obsolete for the following five years, it’s a reality.
Everything you learned becomes obsolete for the next five years, welcome to
the digital era.
Which books can you read? I recommend the following authors and all their
books:
-Tony Robbins.
-Robert Kiyosaki.
-Napoleon Hill.
-Dale Carnegie.
-Joseph Murphy.
-Miguel Ruiz.
-Wayne Dyer.
-Osho.
-Robin Sharma.
-Tim Ferriss.

-Eckhart Tolle.
-T. Harv Eker.
-Deepak Chopra.
Self-education is not a luxury, it’s a necessity. You wouldn’t want to end up

living in a world that doesn’t exists like Blockbuster and Kodak.
7. Goals: Only 1% of the people in the world has written goals, it’s not a
surprise and it is the reason that only 1% of the people in the world is rich. If
you don’t know where do you want to go, how can you get there? It’s
impossible. Many people talk about being rich when they talk about their
goals or they talk about having more free time, independence or things like
that. Those are not goals, those are dreams.
A study revealed that the difference between millionaires and billionaires is

that billionaires read their goals twice per day and millionaires only once per
day, this is how big the power of written goals can be.
8. Financial education: Being able to read financial statements, being able to

use debt, knowing what’s an asset and what’s a liability, knowing how to run
a company, knowing how to invest and knowing how to protect assets and
how to create several ways in order to have passive income it’s essential.
People don’t need to be playing the game of money in order to lose it.
These are some abilities that an entrepreneur from the twenty first century
should have but I’m sure that you can think of many more.
Even if you have all those skills and abilities, starting can be hard. All our
knowledge leads us towards the safe path, it tells us to get a job, it’s not easy
to leave behind everything you’ve learned over the years. Trying and helping
you with this, I’ll give you some tips that may help:

1. Keep your job: Unless you’re a fan of adrenaline and adventure, I can
recommend that you keep your job and start a part - time business
while you gain some experience, you can dedicate yourself to your
business at nights or during the weekends. The best business school
that you’ll find it’s your own business, as soon as your income equals
or exceeds your job’s income, you can quit without having to suffer
financially.
2. Use the internet: Use social media, Google, Amazon, Alibaba,

WordPress and many other tools that the internet has available for you
to use as leverage and save up a lot of money. Forget about
advertisement and traditional methods, learn how to build your
business with your phone, open social media accounts, create a blog
and make it be in the top 3 of Google, buy in Alibaba and sell on
Facebook or Amazon, possibilities are limitless with the internet. You
don’t need to invest a lot to communicate with millions of people
around the world, we are in the entrepreneur era and with every single
app that comes out to the market there are more entrepreneurs
becoming rich, each time investing less and less money. Be part of the
digital era!
3. Start from home: Use your garage, start in your room, go to the
Starbucks around the corner, anywhere you want but please get far
away from that sad little grey cubicle. Some of the big companies
started in garages or in bedrooms, everything you need is internet
access and a bathroom.
4. Get away from business: Every once in a while, take a step back and
see the complete picture from a different perspective. Ask yourself as
someone impartial if what you want to achieve makes sense, think
about the market you want to be in and about the people’s necessities,
talk to the people you consider potential clients and ask them what they
think and find ways to destroy your company, it’s better that you find
out yourself than if you find out from the competition. Find a way of
doing everything at a lower price but trying to get to more people with

what you’re doing. Just every now and then take a step back, see the
bigger picture and think more about the business what you work in it.
5. Wake up at 5 AM: Let’s say that someone average wakes up at 7 AM,
if you wake up at 5 AM you’ll have a two-hour advantage every day,
fourteen hours a week, 728 hours per year which adds up to be 30 days.
This means you’ll have one month of advantage from your
competition. When doing business, you need to work as if there were
you guys trying to take away every single dollar you make… because
it’s a reality!
6. Reinvest your income: The business that you start must finance itself,
it’s a mistake to take your money out of an investment as soon as you
earn something. If a business is unable to finance itself most of the
times, it’s because it isn’t working. Don’t get in debt with money from
banks to start your own business, it’s very unlikely that they give you
money for that, but if they do try to avoid them. Loans from banks are
ideal to invest in real estate but for a starting business there are better
ways to find financing, such as venture capital firms or angel investors.
However, my advice is that you start with as less money as you can,
basically, what you’re willing to lose and you need to let your business
capitalize by itself.
7. If what you’re looking for is to make money since the first day your
business starts, let me tell you, you’ll fail, you’re very confused. If you
want to get money fast, get a job, you’ll get paid every two weeks or
every month. If you want a business that works without you being
present, you’ll need to invest everything you earn from it, in it. If you
take out this money from the beginning, it’s very likely that it’ll fail.
START USING THE INTERNET
I insist a lot with the internet and social media stuff because we’re in the
digital era and there are statistics that show that if your business is not in the
internet, then it doesn’t exist. You can live in the same city as your clients but
someone from China can easily steal them, you need many sources of passive
income and without any doubt, at least some of them have to come from the
internet.
Next, I’ll show you the biggest advantages from starting an online business:

- You can enter the global market with just one click, if you limit
yourself to have a business just in your city, you’ll only be able to
access the local market. If you want to play in the big leagues, you’ll
need to do it in the global market.
- You need a small amount of money, with the money that you spend on
a weekend, going out for dinner or to a party, you could create a
website and pay advertisement in Google.
- You work 24 hours per day, seven days a week, the whole year even
when you’re on vacations. Internet doesn’t rest, your website, social
media, blog or YouTube channel won’t take a break or go on vacations,
it’ll work very hard for you and you don’t even need to worry about it
being sick the next day.
- Your office is the whole world, you’d be able to check your business
anywhere with internet access. You’d be able to work in your own
schedule while you travel around the world, you wouldn’t be tied to a
schedule or to a cubicle.
- If you’re not sure about the success that a product, service or idea could
have, you could run a test and check it immediately, without any cost.
For example, if you had an Instagram page, you would be able to make
a survey by uploading a picture of the product and asking people
whether they like it or not, you would save so much money, instead of
fabricating and storing a product that you don’t know if it’ll be
successful, you would be able to validate it directly with the market
you want it to be in and after this, you could sell it with the certainty
that there are people that may be interested.
- You could use PayPal or some other payment method for a very low
commission, to sell all your products. This tool will make you and your
client feel safe whenever they are making a money transaction.
- You could dedicate yourself to sell digital products, eBooks, courses or
online classes are excellent ideas. These don’t require shipping
expenses, tax payments and you can sell as much as you want, once
you create a digital product, you would be able to sell it forever. This
means you would only have to work once and that’s it, it’s the best
definition of asset and it doesn’t pay taxes.
- You can sell products you don’t have, Dropshipping is all about this,

let’s say you announce on Facebook that you’re selling t-shirts, people
that are interested will send you a message and with this, you’ll create a
client database, they make their orders, pay you immediately and you
go directly to Alibaba or some other page where you can buy the
product and you get in your pockets the difference between your sales
and what you paid for the product. It’s a simplified example but it
works everywhere. If you open Alibaba see the prices in which they
sell and compare them to the ones in Amazon, you would understand
why China is “stealing” every single available job.
There are many benefits that come with starting an online business, I
could write a whole book about it, actually, there are many. Consider
the internet as a place not to entertain yourself or to investigate
something but as a potential source of passive income.
QUESTIONS THAT EVERYONE AVOIDS BUT ARE STILL THERE
I’m scared to death, I’m afraid of what my parents, friends and the people
think. I feel like a clown. Does this mean I don’t have what it takes to
succeed?
If you were not afraid, I’d be worried, thinking that you did something wrong
or that you’re not thinking things through. Fear is normal and it is part of the
process. Famous people or big entrepreneurs are people that took advantage
of one or two of their talents, but they are also people filled with insecurities
and faults. If you think you are insecure, do you know what? The rest of the
world is too, don’t worry if you don’t know exactly where you want to go,
there are around 7 million people more that don’t know either. Get used to
uncertainty and try to enjoy it, uncertainty tells you that you’re on the right
path. Anything can happen, possibilities are endless, once you get used to fear
and uncertainty, you’ll see how thrilling these are. People that can’t handle
these things end up in a cubicle for the next 40 years in exchange of some
cash, that’s not living. These people may be living in a radical sense of the
word, but as I see things, they’re just vegetating. From their houses to their
cubicles and from the cubicles to their houses, what an awful way of living.
The only thing you should fear is being in the same place every day and be

doing the same thing with the same people, that should scare you!
There are two ways of parachuting yourself and to kill fear. The first one is
the kamikaze way, it consists just in jumping with a parachute from the plane,
hoping that during the fall, it’ll open. Just like that, without thinking it very
much, just jumping.
The moment you jump, the fear will fade away and maybe, what used to be
fear will turn out to be happiness. Jumping will turn out to be a unique
experience and you’ll end up asking yourself: “Why didn’t I jump sooner?”.
Very few people would choose this option.
If you don’t like adrenaline, you can always choose the second option, it’s a
more conservative way of doing things. The result will be the same, but the
process will be different, instead of jumping from a plane right now, you
could take lessons, practice in simulations, you could jump with a
professional first or things like these. Until one day, the fear is gone or at least
most of it.
One thing should always be clear: fear won’t disappear completely, it’s a
reality, you will always have some fear and uncertainty.
Stop waiting for the storm you’re feeling to pass, learn how to dance in the
rain.
What’s the worst thing that could happen? I’m sure it wouldn’t be that bad, a
few pebbles inside the shoe that life is. Have some perspective: Will you
remember this in five years? Probably not, nothing is as important as it seems
in the beginning.
I have a revolutionary and innovative idea, but I know nothing about business
or the entrepreneur world, what should I do?

You have nothing, anyone could have a great idea, the task of an entrepreneur
is to transform those ideas into millions of dollars. Don’t give up on your idea
but it’s better if you put your feet on the ground and that you understand that
unless you know how to transform your idea into a successful business that
gives you money constantly, no one will care how great your idea is.
Do I need to go to college, get an MBA, a PhD in business or something like

that in order to start a business?
Absolutely not, college degrees only serve to impress your boss, to get a
promotion or a raise. In your case, you would be your own boss, so who will
you impress? It’s better if you spend your time building from the ground up a
business in the real world than if you spend your time getting a PhD licking
boots and memorizing answers.
You don’t need any diploma to become a great entrepreneur or business

owner, but in order for you to get a job working for a great entrepreneur or
business owner, you need one, isn’t it interesting?
How can I start a business if I don’t have lots of money?
With social media, it’s the best thing that has happened to entrepreneurs.
THE WORST MISTAKE OF ENTREPRENEURS
“I know very little about business and I have very little financial education,
but I just developed an amazing product, you won’t find it anywhere else, it’s
fresh and innovative, it’ll practically sell itself.
That’s where hallucinations start.
You may to believe this, but a product is one of the less important things
when you want to start a business.
Does McDonald’s sell the best hamburger in the world? Of course not,

anyone can make a better one.
Who sells more than anyone in the world, who has the best real estate
properties in the world and earns billions of dollars every year? McDonald’s.
If McDonald’s wants to, they can change the hamburger for any other product
you can think of, they can even redesign their company and get out of the
food-processing industry. It wouldn’t matter very much, their business is not
based on the hamburgers (product), it is based on franchises and real estate
(business system).
The product is one of the less important things, if an entrepreneur knows how
to assemble the business, which means, that he or she needs to know how to
create the accounting, legal, communication, sales, marketing and internal
systems, knows how to create the mission, leadership and cash flow, then he
or she can use the product they want and exchange it as they wish.
The true challenge of an entrepreneur is to know how to assemble those

systems, that’s where most of them fail. Amateurs work IN the business
instead of working ON it. Imagine that Ray Kroc worked on making the
hamburger, drinks and its presentation better, that would be working on the
business, it would probably be successful, but it wouldn’t be McDonald’s one
of the biggest real estate business in the world. Instead of doing that, Ray
worked upon the business, which means that he worked in the franchises and
real estate part of the business, you can see the difference from the moon.
The product is just that, something that you sell or exchange, it doesn’t have
an intrinsic value.
The true asset is the business, it makes its systems and the ways in which
McDonald’s operates worth millions.
A venture capital company won’t be impressed if you just talk about your

product, there are millions of entrepreneurs that think their product will be the
next Google or something like that. The only thing this shows is how
innmature the inventor is, you can see from far away that this person has no
experience. If someday you are going to start your own company or you’re
going to save money in a venture capital company, remember this:
The true asset is the business, not the product. Work upon the business not
on the business.
If you work on your business, you will end up creating a job and the world is
full of self-employed people that consider themselves to be entrepreneurs and
owners of their own business when they truly own nothing. They are not even
close to becoming financially free entrepreneurs. They are self-employed
people that believe they are entrepreneurs.
How do you know if you built a true business or if you own a job? Answer
the following:
If you stopped working for a year, would your business keep existing and
working without your presence?
If it works without you, it’s a business.
If it needs you to be present, it’s a job.
Most “entrepreneurs” wouldn’t be able to stop working and if they did, they
would stop earning money, this clearly means that they don’t own a business,
what they own is a job. The problem with that is by owning a job you can’t
escalate, you can’t multiply yourself because no one will ever buy you that
job, and you can’t sell it in the stock market or inherit it to your children. It’s
not an asset, it’s a job and it doesn’t make sense to work very hard and build
nothing, it doesn’t make sense not to build an asset.

If you’re going to be an entrepreneur and work independently, you need to try
since day one that your business is able to work without you having to be
present, don’t become the biggest liability of the business. Allow it to grow
and expand without someone having to be present, a business should depend
only on its systems not on someone, it’s the same rule I told you at the
beginning of this book: work for assets, not for money.
Most “entrepreneurs” have spent years building the jail that they live in, they
locked themselves up in a job dressed up as a business. They can’t stop
working because they are the system, if they stop working, they stop earning
money, they are the business and that is a business failure, that is the mistake
that 99% of the entrepreneurs in the world and self-employed people make
very often.
THE BEST ADVICE FOR ENTREPRENEURS
Don’t involve yourself in something you don’t love, you’ll fail, either
financially or spiritually but one way or another, you’ll fail. If you don’t love
what you do it’s very likely that your clients and employees find out or worse,
you’ll know all along. If you don’t love what you do, you won’t have enough
motivation to keep going when things get hard.
The best advice is to do always what you love. Not what gives you money,
not what your parents want you to do, not what your friends do, just do
everything you think it’s funny and then try to create a business out of it,
never the other way around.
If you want to be an entrepreneur, you need to know it’s not a job, it’s a
lifestyle, it’s something that defines you. Forget about vacations and getting
home at 6 PM. The last thing you’ll do at night is send e-mails and the first
thing you’ll do in the morning is check them, you’ll wake up several times at
night worried and people will think you’re crazy, your parents will try to stop
you and motivate you to get a safe job, you’ll have to work weekends and
invest resources and money without any guarantee that it’ll succeed. You’ll

probably lose everything more than once but that’s the price you’ll have to
pay to be free, live in your own terms and do something that fulfills you.

Chapter 2
Questions that will make you
rich.
“I thought men in suits were successful, until I understood that they work for the man in
his pajamas”.
Tony Robbins, the biggest influencer and motivator in the world, says that the
quality of our lives is determined by the quality of our questions. The
questions we ask every day to determine what our focus is, for example:
- How can I get a well-paid job?

- What do I have to do in order to get a raise?
- How can I find a job with benefits, a retirement plan and paid
vacations?
- Which bank pays me the highest tax rate for my savings?

These are questions that most of the people make, these are questions that
poor people and middle-class people ask, the lives of these people are
determined by the type of questions they ask, for their whole lives they have
asked the same questions, why do they get surprised when they get the same
results? Life will give you exactly what you ask for, not more or less.
Rich people also have a lot of questions passing through their minds, they
search everywhere for ways of obtaining the luxury life that they deserve,
here are some of those questions:
- How can I find great employees?

- How can I find a team that helps me get my business into the stock
market?
- Which venture capital company would be the best to finance my
business?
- How can I find new sources of passive income?
- How can I get all the luxury things I want in life?
- What do I have to do to earn money without having to work and with
this be able to spend more time with my family?
In less words:
Poor questions=Poor life.
Middle class questions=Mediocre life.
Rich questions=Rich life.
This is a simple but powerful chapter, I’ll give you many questions that you
should ask yourself in different moments of your life, the approach of these
questions will make your subconscious look for ways of achieving the life
you desire.

Turn these questions into an obsession, you’re not getting the life you want to
get, you’re getting the life that you’re obsessed about getting. Start being
more conscious about internal dialogue. The most important conversation you
have every day is the one you have with yourself.
Reading a book is a very passive experience, most of the time you’re not
involved, for this chapter, I want you to grab a pen and paper where you’ll
answer the following questions that I’ll make you. Go to a calm place where
you can fully concentrate and be completely alone. Every day we interact
with many people except with ourselves, social media makes us compare our
lives to someone else’s constantly and then we ask ourselves why is so many
people depressed.
Forget about the world for a few minutes and go to somewhere far away and
alone, get to know yourself, many people fear being completely alone. Try to
understand who you really are, without your parents, friends or teachers’
opinions getting in the way. The best gift you can give to yourself is to be
alone every now and then, even if it’s just for a few minutes.
- What are you going to do in the next six months to achieve what you
had planned for the next ten years?
- Will you remember this ten years from now? Probably not, so relax,
it’s not as important as it looks.
- What did you want to be when you grew up as a kid, before someone
else’s opinion got in the way?
- What would you do to make the world a better place if you had one
billion dollars?
- What can you do right now to surprise yourself?
- Which decisions that you have made so far make you who you are right
now?
- When you had the chance, did you choose to be brave instead of
commodities?
- How would your life be if you did the exact opposite for 48 hours?
- How much money do you want to earn every month?
- What’s the worst thing that could happen if you did what you had in
mind?

- How should your business be working so that you have to work only
four hours per week?
- What do you need to do in order to be able to disappear (without a
cellphone or any other device) for eight weeks?
- What awaits you on the other side of fear?
- Which of your actions will be remembered a hundred years from now?
- What are you waiting for to happen, for you to quit your job, invite that
special someone on a date, move to that city or start that business?
- In what ways, being “responsible or realist” has prevented you from
having the life you desire?
- What are you sacrificing if you keep doing the same things for the next
5, 10 or 20 years?
- How can you escape from the jail you built?
- What would you do to survive if you got fired today?
- How much life are you missing because you keep postponing important
things that could change your life?
- What would you do if you couldn’t fail?
- Which four dreams of yours would change your life?
- Who is 20% of the people responsible for 80% of your pleasure and the
ones that propel you forward, and who is are the other 20% that cause
80% of your depressions, anger and doubts?
- Why the hell is it that you’re not doing it right now?
- How are you feeling right now, what problems do you have right now?
Not tomorrow, not in a month or in five minutes, right now. None!
right now, no one is unfortunate.
- What would you do if you didn’t have to worry for money ever again?
- Do you really think you deserve to be rich?
- Are you capable of acting when you’re not mad or scared?
- Would you bet your life that in five or ten years, you’ll be rich?
Don’t read anymore until you finish answering all these questions, if you
think it’s stupid take the time to get to know yourself and know your beliefs,
nothing you do will work, you’re hollow.

Get to know yourself! Fall in love with your purpose of life.
Don’t just live life, build one.

Chapter 3
Millionaire Habits.
“Your salary is what you’re paid to forget about your dreams”.
You are what you do every day.
It’s not a coincidence that you are where you are right now.
Think about it: failure and success are not big events, they are something that
happen all the sudden, it may seem that they appeared out of nowhere, but the
truth is that they were meant to be. No one becomes successful overnight, if
you wake up one day next to someone you don’t love, with a job you hate and
living a mediocre life it’s because your habits drove you there.
Habits define us.

In this chapter I’ll show you many habits that you can start using every day,
use the ones you like the most and ignore the rest, even if you use just one,
I’m sure you’ll see the big difference. They are very simple and some of them
very spiritual, just try them out and see the results for yourself.
Most people get very busy trying to live life that they don’t spend enough
time designing it as they would like to live it. Start immediately, you’ll thrust
your fingers and realize that ten years have passed, you’ll look back and say:
“Where did they go?” In ten years, I’m sure we will make it, the question is
where?
1. Choose two people randomly, secretly wish them all the success in the
world, you just have to repeat mentally: “I hope that this person is
happy and very successful, and I wish that this other person has a very
good day”. The purpose of this exercise is to show you that spiritual
energy is contagious, you’re supposed to transmit your positive
energies to as much people as you can and while you do this, there’s no
way that your life goes wrong because that’s not how energies work.
When you have a problem or something is going wrong in your life, try
not to focus a lot on yourself, spread the positive spiritual energies and
this will come back to you, that’s the way things work. When you
finish with this exercise, you’ll immediately notice the difference and
you feel the change.
2. The next habit is the routine that Tony Robbins has for every morning,
he is the most renowned motivator in the world, he has worked with
Leonardo DiCaprio, Michael Jordan, Bill Clinton, Nelson Mandela and
many others. People from more than 70 countries assist to his events
and say that it was a memorable experience, assisting to one cost
around $5,000 dollars, if you want to see how he changes someone’s
life, get into Netflix and search his name to “see in from the inside”. It
has three phases, the first one lasts about three minutes and it goes
something like this, in Tony’s words: “Feeling absolutely grateful
about three things. One of them has to be very simple, like the wind
that blows into my face, the sunrise or the reflection of the clouds. I let
the gratitude fill my spirit, because when you feel grateful, there is no

space for anger. You can’t feel fear and be grateful at the same time”.
The process continues with other exercises that takes about three
minutes as well: “I fully concentrate in the perception of the presence
of God or whatever you want to call it”. The routine ends up like this:
“In the next three minutes, I’ll concentrate in three things that I’ll make
happen. You need to visualize it as if you had already done those things
and you must feel the excitement of achieving them. There should be
no excuse for taking these then minutes, if you don’t have ten minutes,
you don’t have a life”. This routine is the routine of one of the most
influential people in the world, it’s certainly worth trying and if you
have the opportunity, read his books, the message they have is
inspiring.
3. Take out all the trash you have inside you, clean it all up. Take five
minutes of your time to write down your complaints, insults and
whining. This will change your life, it won’t solve your problems, but
it’ll certainly take them off your mind, so you don’t think about them
during the whole day. We spend years accumulating dust, write all you
can down on a piece of paper, don’t judge, just write. Be an impartial
witness, you’ll be surprised about how much things you’re repressing,
those subconscious thoughts that go through your head during the day
and they can end up being very heavy if you don’t unload them
somewhere.
4. Before going to sleep ask your subconscious something, be like a kid

that asks for something knowing they’ll get it, ask for anything. The
reason why you don’t have everything you want in life is because you
haven’t asked for it! Ask your subconscious for anything you want,
“On March 25th of 2024, I’ll be making $50,000 dollars of passive
income from my properties”. It’s that simple but the one thing you
can’t do is start doubting, you need to be completely sure that money
already belongs to you and that in that exact date, you’ll have it.
5. Write down ten ideas every morning, get used to thinking of new ways
to do things, it could be any type of idea: ways to save time, things
you’ve learned from your friends, different ways of doing things,

people with whom you can establish a relationship, aspects in which
you want to be better, things you did as a child and would like to do
again, there’s no limit.
6. Set a clear goal and write it down in a piece of paper every day at least
ten times as a concrete statement. “I, Samuel Williams, will be a
successful real estate investor”. Do it every day, your subconscious will
get used to the idea and opportunities will come from everywhere and
one day you’ll ask yourself: Why didn’t I do this before?”
7. Get used to making promises you’re not sure you’ll be able to keep so
that then you can find a way to keep them, put yourself into awkward
situations, learn how to talk in public, sell products you don’t have so
that then, you must find a way of getting them. Expand your life, don’t
wait until you think you’re ready and save yourself some time because
I’ll tell you something: you’ll never be ready. Make yourself feel
awkward as much as you possibly can, is the only way you’ll grow.
8. Get out at night and contemplate the sky and its stars, it’ll give you a
new perspective on things. You’ll realize life is not as problematic as
your mind tells you it is. It’s not that problems disappear, what happens
is that you realize problems don’t exist, they are dramas created by
your own mind. Every time that you’re worried about something just
look at the stars.
9. “Separate a few days of the month in which you’ll be happy with the
least and most simple livelihood, just a plate of food and coarse clothes
while you say: Was this what I was so afraid of?”, this advice comes
from Seneca. If you apply this once a month, you’ll see that the thing
you were most afraid of, doesn’t exist, the worst thing that could
happen to you isn’t sleeping in a sleeping bag when you’re 30. Do you
want to know what is worse? Sleeping in a huge bed next to someone
you don’t love but that for any reason you got married to, having a job
you hate and asking yourself in the shower what would’ve happened if
you chose to have done what you truly loved. I can assure you, you’ll

be fantasizing about sleeping in a sleeping bag. There’s no risk when
you choose to follow your dreams, there’s a huge risk when you play it
safe.
10. Keep track of every special moment in your life, you’ll need it for
those days when you feel life has no sense. Describe emotions you had,
places, people, motive and everything you possibly can, these
memories will help you move forward and will make you smile more
than once.
11. Plan your life, write down: somewhere you have always wanted to
visit, experiences you want to have, a memory you want to save for
your entire life, something you want to learn or some activity that you
can do in a week. Plan everything, sit down and start designing your
life by writing it down on a piece of paper.
12. Instead of watching T.V or Netflix, listen to podcasts or videos about

successful people from which you could learn things. In
www.goalcast.com you’ll find all types of videos about successful
people. Listen to the Tim Ferriss and Gary Vaynerchuk podcasts, there
are millions free ways of learning from people that could be your
mentors, you just need to write down in Google what is it that you want
to learn about, and you’ll have thousands of options. You could listen
to these podcasts while you’re driving or when you’re at the gym, get a
mentor you like and learn as much as you can. Many people have gone
through what you’re getting into, learn from their experiences.
13. Before you go to bed, watch on Netflix, the movie called “the secret”
as many times as you can. If you haven’t seen it, watch it at least once
for the next following ten days, interiorize its message, there’s a big
difference between someone that goes to bed drinking beer and
watching MTV and someone that goes to bed watching something like
“the secret”. Why should you see it many times? Because you need
your subconscious to get the message, you need it to absorb it

completely. Keep watching it every now and then, I try to watch it at
least, once a month.
14. Every day lay on top a sofa or on top a bed during five minutes and
imagine you’re living the life of your dreams, imagine you have
everything you want in life, feel as if it was already yours, get excited
about having everything you’ve always wanted and once you’re done,
don’t think more about it, trust it’s on its way. This method will help
you get closer to your goals faster than working ten hours per day.
15. For the next 30 days, every time you see something you like or dream
about, tell yourself: “I can do it, I can buy it, I can be successful”. Go
to the house you would like to live in and simulate that you’re buying
it, imagine yourself living in that house, even ask the owner or the
seller for how much are they selling it and ask them details about the
house, imagine that you’re actually going to buy it. Go to a Porsche or
Mercedes store and find out as much as possible about the car you like
the most, make a test drive, act as if you were really going to buy it. Go
to a travel agency and ask for the package you would like to buy, ask
about Paris, Barcelona, New York or Australia or any other place you
would like to go to, find out about prices, hotels, stops and everything
you can think of. You need to get used to the idea that all of this will be
yours.
16. Fail in something every day, the key to being successful isn’t to stop
failing but to fail even more. If at the end of the day, you didn’t fail at
least in one thing, then let me tell you, you haven’t tried anything you
should’ve tried to do that day. Multiply your mistakes, someone who
doesn’t make mistakes works for someone that does.
17. Help someone every day, in whatever way you want, it doesn’t matter
how big or small, the best way of achieving what we want is by helping
others achieve what they want. Generosity is something like a

“intelligent egoism”. Whatever you give, you’re giving it also to
yourself.
18. Don’t complain at all for the following seven days, do you think it’s
easy? I can assure you it isn’t. You’ll take your time to spend seven
days without complaining about anything, if you complain or even
think negatively, start again. It’s very hard but I’m sure you’ll manage,
you need to detox from all the negative trash in your life, it’ll represent
a radical change in your life if you do. Even if you spend one whole
hour without complaining about anything, you’ll experience how it
feels to be relaxed. The joy you’ll experience from having a clear and
relaxed mind it’s so big that it’ll make you want to spend more time
without negative thoughts or complaints. All the gold in the world is
nothing compared to this joy you experience.
19. Write down a paragraph in which you explain why it is truly so

important for you to create for yourself this wealthy life, be as concrete
as possible, you need to have a sufficiently strong why in order to
undertake the how. Don’t leave out any detail, you need emotional
motives that push you forward and inspire you.
20. Make the habit to listen twice as much as you talk. When you talk,
you’re only repeating once again what you know, but when you ask
questions and listen, you learn new things. When you listen, you get a
new perspective on things, that’s why you have two ears and just one
mouth.
21. Read every single day, don’t let a day pass by without learning
something new, you can go to bed without eating but you can’t go to
bed without reading. Don’t just read, you also need to get used to
question everything you read, question everything, don’t accept thing
before you analyze them, meditate everything you read. It’s not about
thinking like everyone else, it’s about thinking. Always think for
yourself. Don’t believe anything you read in this book, question
everything I’m telling you, verify everything I tell you, think on your

own.
22. Take care of your health, exercise, don’t tell yourself you don’t have
one hour every day to go to the gym or for a run, you need to have a
good energy in order to deal with every challenge of the day.
23. Relax, forget about the world, turn off your cell phone, disconnect from
everything, cook a little, walk your dog, walk around the neighborhood
or go somewhere far away and just let the hours pass. Only powerful
people know how to rest. Saying you don’t have time to relax and fill
up your batteries is like saying you can’t gas up the car because you’re
driving. Learn how to truly relax, worrying is the worst waste of
imagination.
24. Be conscious about the dialogue you have with yourself, we talk with
ourselves an average of 10 thousand times per day, the sum of all these
affirmations we make is what determines the lifestyle we have. We are
what we tell ourselves we are.
25. Listen to audiobooks on the way, when you’re waiting somewhere or

even in the gym, make the most out of every space you must learn
something new.
26. Give more than what you’re asked for, it doesn’t matter what it is,
always give more than you’re expected to. Even if it is with your
family, friends or with your business, the good thing about going the
extra mile is that no one expects you to do it and just a few people do
it.
27. Wake up at least three hours before the work day starts, this will give
you time to do the routines I’ve been talking to you about. Average
millionaires wake up at about 5 AM, with all this extra time, you’ll be
ahead of your competition and you can take control over your life.

28. Make sure you dedicate ten or twenty minutes every day to think, think
about your business, your relationships, your health or whatever, just
think. What can I do to earn more money? Does my job make me
happy? Am I exercising enough? What type of people are around me?
I’m sure you can come up with many other habits you could do every day,
you need to make a compromise and do at least some of them. Being 99%
committed it’s like not being committed at all, you need to be 100%
committed or not do anything at all.
The journey it’s not easy, the path will be filled with challenges designed to
make you quit or to make you fail, you’ll go back to old and obsolete routines
that’ll drive you far away from your goals, but it doesn’t matter, you just need
to keep trying. Start again as much times as it is required.
Commit to the following:
I’ll beat him, I’ll train harder than him or her, I’ll work more intelligently.
I know his or her weaknesses and strengths.
I have lost against him or her before, but not this time, this time I’ll win.
I have a great advantage, I know him or her very well.
He is the old me.

You fight true battles every day and you fight them with yourself, the only
person that can beat you is the one that you see in the mirror every day.
Once you win against your internal enemy, external ones won’t be able to
beat you.

Chapter 4
How to earn millions
“When slavery was abolished, rich people invented payroll checks”. - Robert
Kiyosaki
Do you really believe that working hard is what makes people rich? Do you
think that someone that earns ten times as much as you do, it’s because they
work ten times as much as you do? Of course not! It would be physically
impossible, one week has no more than 168 hours.
Why is it that you’re still not rich? Why is it that you're not living the life of
your dreams? Why are you still stuck in that horrible job? Have you ever
thought about this carefully? Have you asked yourself these questions before?
Working hard will never make people rich, it is necessary but working hard
itself will never make someone rich.

If you want to succeed in life, you need to learn how to burn up every ship,
take down every escape route, you need to put yourself in an extreme
position, put yourself against the ropes, you must have no other alternatives.
Your only option must be to succeed, if you’re not willing to bet that in the
next ten years you’ll be a millionaire, you will never be one. If you’re not
capable of gambling your life saying that you’ll be successful, success will
never come. Your only obligation in life should be successful.
Write down in a piece of paper how much money you want to earn and in
how much time you’ll be earning it, that’s it. That’s everything you need to
do in order to make millions, you can read as much books as you want to but
that will keep being the key to everything you’ve ever imagined.
“I wrote a check on my name for $10 million dollars for performance services
provided and I set a five-year deadline, dated on thanksgiving from 1995, I
saved it in my wallet, and it started to deteriorate. Right before thanksgiving
day from 1995, I found out that I was going to cash a check for $10 million
dollars for the movie Dumb and Dumber, visualizing things works if you
work too”.
There are many more stories just like this one, every millionaire becomes
wealthy right before or in the exact deadline they had set. Jim Carrey got
those $10 million on the precise date that he wrote he was going to get them
and before that happened, he was broke, he didn’t have a dime and his family
was poor. Five years later, he became a millionaire and he was famous all
over the world, all of this because he used the biggest power in the world.
It makes sense, right? If you don’t know where you want to go, how can you
expect to get there? It’s impossible. You may want to be a millionaire but just
wanting it isn’t enough, it must become your obsession, it has to be
something urgent in your life. “I want to be a millionaire”, it’s something
stupid, “5 million dollars in the next two years”, now that’s what I’m talking
about.
Everyone has an “I should” list, if you still don’t have one, I’m sure you can
think of some things. In many cases it would look something like this:

- I should go to the gym.
- I should lose weight.
- I should be more friendly.
- I should wake up earlier.
- I should invest in real estate.
- I should leave my job and start my own business.
- I should spend more time with my family.
- I should stop watching so much T.V.
- I should start a seminar.
- I should read books.
This list could get longer and longer!
The point is that those “I should” never become true, they are vague desires
that don’t have many powers. When someone says they want to lose weight,
what they mean by that is that they want to lose it without going to the gym or
changing their diet, this is something ridiculous. “I would like to become a
millionaire as long as I don’t fail, lose my job, lose money or try something
new”, that is what all of those people that want to become millionaires say, I
hope they win the lottery or inherit a lot of money someday because
otherwise, they’ll be broke forever.
Wanting something doesn’t assure that you’ll have it. Being obsessed with
something and working to make it happen will.
When something becomes mandatory in your life, an obsession, things

change a lot.
The money you earn today, the house you live in, the relationships you have
and your life in general, it is the standard you have for yourself. Everything
you have is what you think you deserve, for you, it’s what you’re worth, not
one dime less or more. Nothing in your life will change before you change
your standards, learn whatever you want, go to seminars, get a PhD, make a
lot of money but still, it’ll change nothing.

The only way for your life to change is if you raise your standards.
If your standard is that you need to earn $20,000 dollars per year in order to
cover all your expenses and survive, you’ll always get that amount. Don’t
worry if the economy goes wrong or if you get fired, you’ll always meet your
standards.
If your standard is to earn more than $100,000 dollars per year of passive
income based on your real estate properties, you’ll always find out a way of
meeting them. There’s no other choice, opportunities will rain, and your
investments go wonderfully. That's how things and the universe work.
All of us, with no exception, act based on what we think we are.
The moment when you define yourself, is when you start living within the
limits you create and under your own standards. From the moment you say
that being rich is impossible, your subconscious finds a way of making that
true, it doesn’t matter if you’re saying it’s true or false, your subconscious
will always accept what you say without question and it’ll give you exactly
what you ask for.
The following poem it’s taken from one of the best books in existence, Think
and Grow rich, written by Napoleon Hill.

The pact with life
“I made a pact with Life for a penny,
and Life paid no more.
However, I begged at night
when I counted my stockyard.
For Life is no more than a pattern

that gives what is asked of it,
but once the salary is fixed,
oh! we must go on with the work.
I worked for the wages of a lackey

only to learn, in distress,
that whatever wages she had asked Life for
she would have given it to me”.
Life is going to give you anything you want, it doesn’t matter what it is, you
just need to ask for it!
Now, going back to the last exercise, write down how much you want to earn
in the following five years and write it down in the following way: “I, Samuel
Williams, will have $10 million dollars on April 10th of 2023”.
You have to do it, let me show you who you really are, I’ll show you your
mental limits and what you think you’re worth.
The amount of money that you just wrote on that piece of paper is more
important than what you think it is, it means a lot and it will determine what’s
your life going to be from now on. That little piece of paper is a contract that
you have with yourself and it shows what you think you’re worth, it
represents every cent you think you are worth.

I hope you wrote plenty zeros!
You don’t need to how is going to happen, or have it all planned out; you just
need to take a leap of faith. What every rich person has in common is that
they were all sure that they were going to become rich and be successful,
most of them didn’t know how they were going to do it, they knew where
they wanted to get to.
Unless you mentalize yourself that you’re going to be rich, think about it and
interiorize it, nothing can help you achieving it. Accept the goal that you set
as if it were already true, the key to success is belief.
It all comes down to what your subconsciously believe.
I can explain you a lot of things, but I can’t understand them for you.
Everyone has to parachute themselves, the journey will be hard and very
long, you’ll have to challenge the conditions that have you chained to your
actual life, but you will never quit. I promise, all this effort will be worth it,
one day you’ll realize that life sums up to: Changing beliefs and the
conditions you live in, everything else is meaningless.
The outside world reflects our inside world, everything that happens in your
life is a reflection of what’s happening in your mind. You can’t change
economy, inflation, government or what your friends and family think about
you, but you can change the way in which you think about all of this, you can
mold your life from the inside out.
Let’s get deeper, we’re going to decide right now how your life is going to be.
Everyone is so busy working for someone else that they don’t dedicate time
to design their own lives. Most people go from their homes to their offices
and from there, to their homes again without ever wondering if there’s a
better way to do things. In a blink of an eye, 20 years had gone by, where did
they go? you’ll ask yourself, we will all be gone at some point, you’ll be
doing good by having fun and living life as you wish to. “I should have
traveled the world, made my business from my passion, asked her or him
out… now, I’m dying”.

Let’s start, you have to be as detailed as possible, dreams must be precise in
order to know when you are going to be able to achieve them. Write down
everything you want in life based on the following:
- The house where you’ll live, its price, where it is located and as much
specifications as you can.
- The summer house you’ll own, its price, location and specifications.
Don’t leave behind any detail, if you want it in the mountains, beach,
forest or in Paris, you decide but be as clear as you can.
- The cars you’ll drive, they’re brands and prices.
- The assets you’ll have, the number of properties you’ll buy and the
value of your investment portfolio. You also need to have very clear
how much passive income you’ll have from your investments per
month.
- How many countries you’ll travel during the year or the number of
vacations you’ll have. You need to be very clear about the countries
you want to visit during the year.
- How many hours do you expect to be working per week?
- Friends you’ll have and the relationships you’ll build, set the
characteristics and values that the people you’re going to be around or
hang with must have.
- Your ideal couple, the life you’ll share and the family you will build.
- The date in which you’ll achieve all those things.
_____________________________
Signature.

Once you’re done, sign the paper as it’s shown above, this is a contract you’re
making with yourself and if you think this is stupid maybe being rich just
isn’t for you. Building a wealthy life, it’s a compromise.
Remember the last time someone broke a promise with you? Well, your
dreams and goals are promises you have with yourself, if you bail or if you
don’t live up to them, you won’t be failing only, you will be a hypocrite to
yourself.
Maybe, only maybe, this is the first time you really get to know yourself, for
the first time in your life, you know your limits. Remember that everything
you wrote on that paper are your limits, mental limits and your ambitions.
The portrait you just made will show you exactly who you are, it will become
the physical aspect of your dreams and goals. Your thoughts are alive.
I’ll leave you with the following paragraph written by W.H. Murray.
“While we are not totally committed there will be indecision, there will be the
possibility of backing down and there will always be inefficiency.
In relation to all acts of initiative and creation, there is only one elementary
truth, whose ignorance kills innumerable ideas and splendid plans: in the
moment in which one commits oneself definitively, providence is also set in
motion. From the decision comes a whole stream of events that causes all
kinds of unforeseen incidents in our favor, causes casual encounters and
brings the material help that nobody would have dreamed of finding”
Find out who you really are, the truth will make you forever free.
Hold on to the best version of you that you think you can achieve and discard
everything that gets in the way of that.
That’s the version of yourself you must be.
You are that person.

Chapter 5
Memento Mori
“I took the least traveled road, and that has made the difference”. - Robert
Frost
I’ll start by introducing you to John, he is a very good and honest man that
throughout his life has tried to do what’s right. His work days are planned
thoroughly, he wakes up at 6 AM, he takes a shower and eats breakfast, he
goes out to work at 7:30 AM and spends 45 minutes in traffic on his way to
work, when he gets there, he does the same thing he’s been doing for the past
30 years. At 5PM, when he’s done working, he gets back home and watches
T.V while he drinks beer until his wife is back home with his kid. They
decide what they’re going to eat, help their son with his homework and
finally they watch the news or some series until they fall asleep. During the
weekends, they all go to a restaurant, exercise and maybe fix his car or take it
to the workshop because it needs maintenance. John has been married for
about 10 years and even though his marriage it’s not full of passion, he feels
way more comfortable than in his first marriage.

John went to school because he had to, then, he went to college, got a job and
worked very hard because it was the right thing to do. He has money saved up
and has never gotten into trouble because it was the right thing to do, he also
got married and had a family because it was the right thing to do. John spent
his life doing what was right without any mistakes, however, his whole life is
a mistake. He tries and tries desperately and silently to make his heart beat
again.
Do you know someone like John? Someone that you never see suffering or
sad but still doesn’t experience the great things in life. Ralph Waldo realized
that "the vast majority of men lead lives filled of quiet despair."
"Living is the strangest thing that exists. Most people simply exist. -Oscar
Wilde
We’re very good at preparing ourselves to live but not very good at living.
For our entire lives, we have been prepared to live this precise moment, we
know how to sacrifice 10 years of our lives for a diploma, we’re willing to
work very hard in order to get a job, a car, a house, etc. But we have a hard
time realizing that we’re living in this precise moment, the only time in which
we’re able to feel truly alive.
"There's nothing less to be occupied by man than to live." -Seneca
Stop procrastinating, life is happening right now and you’re wasting it trying
to be prepared to do other things different from enjoying it.
Promise me something, after you read this, you’re going to do what you know
you have to do, it is enough, enough of having to bare a horrible job, average
dreams, doing things you hate, not living an incredible life, doing what
everyone else is doing, listening to your parents, friends or teacher more than
what you listen to yourself, it is enough. You are someone unique, don’t die
like a copy. You can die at any moment, living it’s what requires courage.
Travel around the world while you’re still in your 20’s, you can make
mistakes, bad investments and everything else for 5 years and still wake up

and find out that you have all the time in the world. You can travel for ten
years and then start doing what you truly love, there are no rules in this game,
don’t let yourself be fooled. Nowadays you can do business with anyone. It
doesn’t matter how far you are from each other, don’t let the advice of scared
and poor people fool you, only someone obsolete and from another time
needs a diploma nowadays to feel useful and to survive right now.
Remembering that you could die at any moment makes people's expectations
worthless, if only you knew how fast people forget the dead…
It’s something really special knowing that you don’t have to live your life as
you’re told to, “go to school, get a job, work hard, save up for when you’re
old and don’t take any risks”. If you felt nauseous after reading this, you’re
not the only one, take your life and make a masterpiece. I hope you’re proud
of the life you have and if not, I hope you have to courage to change
everything wrong with it. When do you know you’re in the right path? When
you don’t have to ask yourself this question.
Talk with people that have other points of view, visit countries where they
live a very different life, visit places that make you feel alive, experience
things you still haven’t, observe things that surprise you, live moments that
leave you breathless and just keep repeating this forever. You don’t have to
live life as you were told by your parents, teachers or friends, about who you
are forever. You can start all over again, anywhere and anytime. Don’t forget
it: every morning you wake up it’s a new opportunity to be who you’ve
always dreamed of being, there are no limits in what you can become. Don’t
live the exact same day for 75 years and call that life.
Find the best version of yourself, everything else you can find it in Google.
J.K Rowling the multi-millionaire author that wrote Harry Potter was so poor
when she was trying to sell her first book, she had to write it twice in a
writing machine because she didn’t have enough money to make copies.
Now, she is wealthier than the queen of England.

This is a piece of a speech she gave in Harvard University:
“I was liberated because my biggest concern came true. I only had my

daughter, a typewriter and a great idea. You cannot fail the way I fail. I
was as poor as a person could be in England, my marriage failed and I
found myself unemployed, living on the street with my daughter. What little
I had became the solid foundation on which I rebuilt my life. It is
impossible to live without failing in something, unless you live so
cautiously that maybe you may not be living fully. We do not need magic to
change our world. We carry all the necessary power within ourselves. We
have the power to imagine better”.
I’ll repeat the part I think it’s the most important because it’s what should stay
in your mind after reading this book:
It’s impossible to live life without failing in something unless you’re living
so cautious that you’re possibly not living at all.
Walk your dog, see the sunset, move to that city, go camping, start that
business, tell him or her what you feel, quit that horrible job you can always
get a new one, don’t spend 5, 10, 15, 20, 30 more years doing something you
hate. Spending your days waiting for what you’re doing to end it’s a horrible
way of living, whatever it is you have in mind, start today, don’t wait until
you feel ready because let me tell you something: you will never be. There’s
no good time to follow your dreams. “One day I’ll…” it’s something that has
killed millions of dreams, the fact that there’s no ideal time means that every
moment is the ideal time. When you’re 75 years old, you’ll realize what your
parents, friends or teachers said didn’t matter at all, none of it was as
important as you thought it was in that moment, everything is transitory.
Laugh and enjoy the process, don’t follow money, power, titles,
acknowledgements, business opportunities or investments, don’t try to make a
living just enjoy the dance and the music before it ends. Follow what you
love, and the universe will do the rest, you only live once… make the best out
of it.

Forget about failure, it’s impossible to feel you’re failing if you enjoy the
journey.
You can fail for 20 years in a row, and the next year succeed, you only need
to do it right once. Get out of there and fail as fast as possible, you’ll fail
anyway, in one way or another, so, why not do it as fast and as quickly and
elegant as possible? Why not fail doing something you love instead of doing
something you hate?
For a star to be born, there are things that must happen, a gas cloud must
collapse.
So, collapse.
Crumble.
This won’t be your end.
It’s your birth.
Get out there and do something you’ve wanted to do but that has you
desperately afraid of what your parents, teachers, friends, social media
followers, the market or the world may think, do it and then you’ll realize
how all of this was just in your head.
400 billion to one are the probabilities of becoming a human being and then,
you have to live your life seeing how people complain at everything, what is
it you complain about so much? Why do you have to do it every day? What
are you so afraid of?
It’s almost impossible to be a human being and to be alive, you have already
won, I don’t understand how after this you still complain. You’re living in the
most amazing era of all times, you have internet, cellphones, social media,
you can make business investing in shares or currencies from your cell phone,
create apps, upload videos to YouTube and have passive income from

Google, you’re very fortunate.
You only have this life, how are you going to live it? Apologizing,
complaining, questioning yourself, hating yourself, being on a diet, chasing
people that don’t see what you’re worth, listening to what your parents,
teachers or friends have to say, being “realistic and responsible” or following
rules? Be brave, believe in yourself and do whatever makes you feel good,
take risks, you have a very little amount of time, be proud of yourself.
“My father could’ve been a great comedian, but he didn’t believe it was
possible, because of this, he took a more correct way, instead of that, he got a
job as an accountant and when I was 12 years old, he got fired and my family
had to do everything they could to survive. I learned a lot from this, one of
those things I learned is that you can fail doing something you hate so why
not take a risk doing what you love?”
This is a piece of a speech Jim Carrey gave at a university.
Are you living life being cautious? Does it make sense to go through all of
that if you’re not enjoying yourself? Why don’t you start doing what you
love? Why don’t you quit that horrible job? What are you waiting for? Are
you waiting for the planets to be aligned in order to start?
Don’t save anything for a special occasion.
Being alive is the special occasion.
If you try something new, you may fail.
If you don’t, failure is guaranteed.
Let me introduce you to the rat race, the life that 90% of the people live:

Wake up to the sound of the alarm.
Get up.
Eat.
Wait in traffic.
Go to work.
Sit in that awful grey cubicle.
… five minutes later
Look at the clock.
“Great, only 40 more years to go”.
“Even if I don’t know where I’m going or how I’m getting there, I prefer to
say yes than to say no”. - Richard Branson
As I see things, you can always get a diploma and find a horrible job. You
can always find someone you don’t love and marry them. You can always
play it safe and live life being extremely cautious. I don’t know about you,
but I don’t want to live as the society tells me to do, I don’t want to have an
average live with average dreams, average relationships and average finances,
that’s not living and average just isn’t for me. People may seem to be alive,
but they are only faking, only dead fish follow the current.
If you don’t want to follow everyone else, pay attention to the following:
Stop wasting your weekends.
Stop spending money you don’t have.

Stop trying to impress people.
Stop drinking.
Stop smoking.
Stop wasting time.
Stop criticizing.
Stop being negative.
Stop inventing excuses.
Stop lying to yourself.
Stop waking up at 7AM.
Stop living below your potential.
Stop saying it’s not going to happen.
I promise you, everything will be very different.
You can’t deposit excuses in the banks.
If you want to live like 1% of the people do, you need to start doing what the
other 99% isn’t. You can’t expect different results doing what everyone else
is doing.
Remember the person that gave up, got a diploma, got a job, worked hard,
saved money, got out of debt but never experienced something new?
Exactly.

Everyone you know is always asking if you have a degree in something, if
you’re married or if you own a house, as if life was a shopping list for a
supermarket. I hope one day you’re able to answer the most basic question:
“what do you do for a living?”. This question is based on a disease that has
haunted us for decades: confusing what we truly are with a diploma.
What a weird world, we exchange our days for titles, diplomas or

appearances, we give up precious days locked up in places we really hate, we
only follow the ones that tell us what is the correct thing to do, we act as if we
were robots without asking ourselves, without ever questioning if it is really
what we are passionate about.
Most people go to college not because they want to but because they’re told it
is the correct thing to do. Most people say they follow a certain religion not
because they believe in it but because they were told it was the correct thing.
Most people only speak the language of the country they were born in and
keep living there because it’s what everyone else does.
Don’t tell me all of that is education because it isn’t, it’s training, they train as
like Pavlov trained his dogs, true education is something very different than
what our parents, churches or schools teach us. Education is a spiritual
process of self-discovery, it is something personal and it changes from one
person to another, what society does is they force people to go through an
assembling process called school, college, job, religion or politics. The ones
that don’t fit that process are catalogued with “attention deficit” then, they
drug them and take them back to the assembling line. It’s the same process
they follow with cars that have functioning problems and they don’t work like
the others.
All of this works as an authoritarian system, they tell you they have “the
absolute truth and that you must question nothing, investigate or think. You
must follow this religion, it’s the true religion. Just go to school, it’s the right
thing to do. Get a job like everyone else. Put your money in the bank. Play it
safe and work hard. Everything we say it’s what’s correct, there’s no need for
you to question anything, just follow the masses, act normal and be like
everyone else”. It takes courage to tell your kids: “You need to free yourself

from us, don’t follow us or what we tell you, and trust your own intelligence,
even if you go the wrong way. it’ll be better than being a slave forever and do
“what’s right”. It’s better if you make mistakes for yourself and learn from
them than to follow someone and never learn anything except how to follow
someone else, and that is venom”.
You’re not a piece of paper, or a diploma hanged in the wall, don’t compare
yourself with everyone else, you’re not just one piece from the assembling
process like school makes you believe you are, you are not what your parents
tell you are. You don’t have to follow everyone else’s standards of time, most
go too fast to nowhere.
Someone graduated college at 22 but had to wait 5 years to get a job.
Someone became CEO at 25 but died at 50.
Someone else became CEO at 50 and died at 90.
Someone of a group it’s still single while another one just became a
grandparent.
Obama retired at 55 and Trump started at his 70.
Everyone in this world live according to their own time standards.
People around you may seem to go in front of you and some behind you but
they’re all in their own race, at their own pace and in their own timeline.
Don’t envy them, they’re living their own life and you are living yours.
So, relax.
You’re not late.
You’re not early.

You’re right on time.
Living isn’t about making a living.
Go straight to that pretty lady or guy in the bar and ask her out, quit that job
and start doing what excites you, buy a plane ticket and move to that city,
start your own business, because being 50, 60, 70, 80 or 90 years old
regretting that you didn't “hit that ball”, it’s the worst regret of all. The price
you have to pay for not following your heart is to spend the rest of your life
wishing you did.
"None of us will get out of here alive, so please stop treating yourself badly
even with your thoughts. Eat delicious food, walk in the sunlight, tell the truth
that you carry in your heart like a hidden treasure, be silly, be kind and be
weird. There's no time for anything else" -Keanu Reeves
There’s a good probability that the kid looking through the window during
class isn’t lost or a mess, that he’s only thinking beyond the class topics,
having big dreams and letting his or her creative mind take him or her to
marvelous places.
The ones that are brave enough to see that there’s more in life than coloring
inside the lines are the ones that grow up to change the world. Only them
have a calling to help the human race move forward.
I hope you’re part of the ones that are tired of coloring inside the lines.

Epilogue
"We vaguely know, in the bottom of our mind, what we should be doing... but
we decide not to start, we wait for the spell to be broken... but it continues,
one pulse after another, and we float with it. -William James
The Chinese bamboo tree seed spends 5 years underground without growing
at all but on its fifth year it grows more than 25 meters.
Each person that becomes “suddenly successful” it’s due to years and years of
countless efforts with no apparent result.
It’ll be your turn very soon.
The darkest time of the night it’s right before sunrise, don’t abandon your
dream because of the time it takes to achieve it because time will still pass by.
One day, you’ll wake up next to the person you love, it will be 11:30 in the
morning, you’ll get up and make some coffee and pancakes and everything
will be okay.
In five years, you’ll be laughing about what’s happening today, nothing it’s as
serious and urgent as it seems in that moment, 99% of things that happen
don’t matter at all.
Keep reading, learning, working, waking up early, working late, asking

questions, investigating and insisting, soon whatever you want will happen,
there will be no other way.
The only thing you need to do is not quitting, that’s it, everything else you’ll
learn it trying and failing.
What you’re searching for exists, it doesn’t matter what everyone else says,
don’t settle for less.

Everyone wants to go to heaven after they die but not everyone is willing to
die, you need to be willing to pay the price for what you want.
Learn to loosen the rhythm, you’ll pass that class, you’ll get that diploma,
you’ll be successful, and you’ll marry your best friend, money isn’t abundant
today, but it’ll be tomorrow, everything will turn out okay.
Just for a second think that you’re going to a concert, you’ll feel alive, won’t
you?
Right now, you are the concert, you are here to create music, magic and
transformation, it’s a journey without a destiny, don’t try to find one because
you’ll miss what you’re living right now.
It was a privilege to spend time with you and in some way, getting to know
you. I hope we’ll find each other someday and to read very soon the story of
your life. Make your life a masterpiece and may God bless you.
To end the journey that has been this book, I’ll leave you this poem written
by a girl from New York with terminal cancer, think about these words each
time you are going through something bad in life.

SLOW DANCE
Have you ever watched some children ride a merry-go-round?

or heard how the rain falls hitting the ground?
Did you ever followed a butterfly's erratic flight,

or gazed at the sun fading into the night?
You better slow down, don't dance so fast,

time is short, the music won't last.
Do you run through each day on the fly?

when you ask, "how are you?", do you hear the reply?
When the day is done, do you lie in your bed,

with the next hundred chores running through your head?

Have you ever told your child, we'll do it tomorrow,

and in your haste, not see his sorrow?
Have you ever lost contact, let a friendship die,

cause you never had time to call and say hi?

When you run so fast to get somewhere,

you miss half the fun of getting there.
When you worry and hurry through your day,

it's like an unopened gift thrown away.
Life isn't a race, so take it slower,
hear the music before your song is over.

Thank you for reading this book. Santiago R. T.

EXTRA CHAPTERS
Investing in real estate and starting your own business can be intimidating
and overwhelming at the beginning but that doesn’t mean it should be a
headache and that you can’t have fun in the process.
In this part of the book, I’ll give you practical advice and a fast guide for you
to get only the necessary information and to be able start as fast as possible.
Remember you’ll never know everything and that the only way to really get
to know about real estate investments is to start.
Nothing compares to experience things by yourself.
Keep in mind what you think it’s important and what you like, repeat the
things you may think work and the ones that doesn’t just toss them aside.
There are a million of ways to do things right in a business, you can even find
your own way of operating so if you don’t like something or if something
isn’t working, find another way of doing it, don’t stay stuck!
Just keep going forward, things will get easier and it’ll be way more fun, it
doesn’t make sense to do this thing if you’re not going to enjoy them.

PRACTICAL ADVICE
- Take your time, there are many good business deals around, don’t buy
the first property you see.
- Walk around new and different places, always keep your eyes open for
new opportunities.
- Make sure at first your investments are nearby where you live, at least
when you’re starting.
- See several properties, at least 100, before buying your first one.
- Analyze the rent market such as the buying market.
- Talk to several real estate brokers.
- Be careful when buying in an apartment complex because of the
homeowner’s board. Check first with the administrators to know if the
administration fee could rise or if there’s something that needs
repairing and the fee it’s going to be very high.
- Never buy hoping that the property will get valorized, it must be a good
business deal no matter the situation the economy is in. If you buy
hoping to sell more expensive, you’re not investing, you are gambling.
- Don’t invest based on emotions, invest based on the property’s
operations, analyze them as we did on chapter 5 this way, you’ll be
more objective and will be able to focus just on your business.
- Try to find ways that’ll make your property better, don’t wait for the
economy to get better to valorize your property, do it yourself and this
will make your cash flow raise.
- Investing for cash flow it’s not easy, not all properties work for this,
take your time and look through hundreds of properties if it’s necessary
but don’t quit.
- Many brokers will tell you what you’re looking for doesn’t exist and
that it is impossible for you to get cash flow since day number one, it
doesn’t matter, keep looking, that’s what makes them brokers and what
makes you an investor, just keep searching.

- If you’re able to obtain capital gain try to get that money without
having to sell the property, if you sell it and obtain that valorization
money, you’ll be losing the asset, paying high taxes and starting again.
The best thing you can do it’s refinance the value of that appreciation
and to make sure that these new debts is amortized by the tenant while
you receive that amount of money free of taxes.
- Make sure to rely always on your lawyer and accountant on terms of
contracts and taxes, laws may change constantly depending on the
country and every situation may have its variations.

FAST GUIDE TO INVEST IN
REAL ESTATE
STEP 1: SEARCH FOR PROSPECTS
- Walk around new neighborhoods, knock on doors and talk to people,

search for “for sale” signs and call real estate agencies.
- Search through internet, magazines or social media.
- Properties that have “for sale or for rent” signs are properties with
motivated sellers.
- Try to find properties in bad conditions or that have been a while in the
market.
- Talk to your lawyers, accountants, brokers, bankers and administrators
about the property you’re looking for.
- Investigate about situations such as divorces, legal fights, inheritances,
bankruptcies, sales, abandoned or neglected properties.
- Let people know what kind of property you’re looking for, use social
media, local pages or newspaper to do so.
STEP 2: RATE THE PROSPECT
- Always ask the broker the same questions, in a following section I’ll
tell you which the most used and useful ones are.
- Try to talk always with the owners and avoid as much as you can
intermediaries.
- Always have control over the conversation, ask as much questions as
you can, you need to get to know as much as you can the owner and the
state of the property.
- You need to determine how motivated are them to sell, are they going
on a trip? Do they need the money to pay urgent debts? Is the bank
about to foreclose? What would happen if they don’t sell? Get to know
their motivation and use it, it’s not about taking advantage of the

situation, it’s to know how to negotiate in order that it goes well for
both parties. Under any circumstances you should take advantage of
someone else, there’s no need to have that type of karma haunting you
in your life.
- Analyze how properties around are being sold and rented, also,
remember to check if the property needs big repair.
STEP 3: EVALUATION
- Follow the steps in chapter 5, determine the operations, incomes and

expenses of the property, find out the occupation rates and the
capitalization rate, this way, you’ll know the maximum amount you
can pay for the property.
- Make sure you know how much you would rent or sell the property in a
good state.
- Investigate how many properties are for sale or for rent in the area.
- Remember to think about the supply and the demand in the area right
now and in the future.
- Verify annual taxes, administration, insurance and the rest of the
expenses you’ll have to pay.
- Evaluate the market and try to get an estimate of how much time would
it take you for you to sell the property in case of an emergency.
- Investigate if there are new real estate projects nearby.
- Investigate about the legal possibilities of the use of the land.
- Quote repairing costs with several companies.
- Make sure you know how much money you will need to invest while
the property has no occupants.
- Check the legal qualifications.
- If you are going to invest in a condominium, ask about the
administrative balances and if there are future projects in it or big
payments approaching (for example, new roofs, road repairs, new
floors or communal pipelines repairs).

STEP 4: FINANCING
The following are ways in which you can get financing for your investments:
- Your own money.

- Banks.
- Loans from friends or family members.
- Get into a partnership with the owner.
- Get investment partners.
- Ask the owner if he or she would finance the investment, with this I
mean, ask them if they would do the role of the bank.
- Trade-off, sometimes the owner is looking for to buy a car or pay a
debt with money from the sell, if you’re able to cover up that necessity
you could offer a trade-off.
- Pay the owners debts, sometimes they end up being so much you get to
keep the property.
- Get credit with some other property you own.
STEP 5: EXIT STRATEGIES
- Before you make any deal, think of ways of getting out of it, are you
going to refinance in the future in order to recover your down payment?
Are you going to sell? Are you going to keep the property for a long
term?
- Think about the worst-case scenario and how can you get out of it.
- Search for alternative businesses of sales or exits.
- Have always in hand a list of potential buyers or partners that would be
interested in the business.
- Before buying the property look for tenants so that your occupation rate
gets higher, try to reduce the risk from the beginning.
STEP 6: CLOSE THE DEAL
- Make sure all the numbers and financial statements given to you by the
owner check out.
- Complete the process I showed you in chapter 6.

- Remember to put into the contract the contingency to make sure you
have no bad surprises.
- Review all the documents with your lawyer.
- Acknowledge everything that’s written, if it isn’t then it doesn’t exist.
- When you have finalized the investigation and you know that the
property will give you positive cash flow, close the deal.
Follow the formula. Do not skip any step, it could be very expensive. Repeat
and perfect it over time.

HOW TO FIND
PROPERTIES ON SALE
- Mortgage auctions.
- Abandoned or neglected properties.
- Large debts to the condominium or to the state.
- Properties that have “for sale or for rent” signs have owners that are
desperate to sell.
- Take advantage of the recession, this is the best way. Imagine that the
market has 50% discounts, while everyone else is hiding to wait for the
prices to come up again, you’ll be ready to buy as much properties as
you can with a unique 50% discount.
Market recessions and breakdowns are the best time to invest, remember:
“Sell when everyone else is buying and buy when everyone else is selling”,
this is the best investment advice you could ever get.
- Go to the bank and find out which properties have any type of problem.
- Search for owners that need to get out of time very fast and need to sell
quickly.
- Make tons of offers, offer half of what the property is worth, you never
know for how long the property has been on the market, even if most
of the times owners say no and are offended, I can assure you that
many of them will be satisfied that someone is showing interest for the
property.
- Don’t invest in what’s a “trend” at the moment, don’t do what
everyone else is doing and hope that you’re doing the right thing. If
you are following everyone else you can’t expect to be successful,
when you see that idiots are going around giving investment advice of
a specific market, that’s your alarm to stay out of it but to keep an eye
out for when it collapses, they always do.

- Read the financial statements of the property, understand and follow
the market tendencies, make sure you pay your brokers and all your
team very well so that when they have good deals, they think about you
first.
- The best way of finding great deals is to sit and wait for amateurs to get
into the market, they’re always late and pay more, cause fuss and push
the prices up high but once the last amateur realizes they paid more
than what needed to be paid and that they’re probably not getting their
money back, the market collapses. After it does, true investors come
out of hiding and buy properties at half their price, Warren Buffett
explains it in the following way: “I check the market only to see if
someone is about to do something stupid”.
Opportunities always repeat themselves, I can assure you there will be more
people to make the same stupid mistakes again and again. Make sure you’re
ready when it does, it can be the moment when you become truly wealthy.

QUESTIONS TO ASK A
SALESPERSON
- Ask their name and give them yours, create an atmosphere of trust.
- Are you the owner or a broker? It would be ideal if you’d be able to
talk to the owner, you need to negotiate with the person in charge of
setting the price of the property and the conditions he or she would
accept. Do everything you can to make this happen.
- Could you please give me a brief description of the property?
Examine the way they talk about the property it’ll give you a better
idea of the state the property is in.
- How many meters of construction and how many of land? This will
help you compare the properties with others in the area, the price of a
property depends a lot on how much square meters are constructed,
therefore knowing this is very important.
- If the property is so good, why is it for sale? Here’s where you’ll
find out how motivated is the owner to sale, you need to find out these
reasons to apply them to your negotiation, the owner’s interests affect
the property’s price directly.
- What’s the minimum amount they’re asking for? With this question
you’ll know immediately how motivated the owner is to sell and the
flexibility they might have when you are negotiating.
- How long has this property for sale? If it’s been there for a while
maybe it’s because the price is really high and it could also be an
indicator that the owner hasn’t open to negotiations, that instead he or
she is very set on the price.
- When did you last got an offer for the property? You could also ask
how much they offered for it.
- Why is the property still for sale? Find out why is it that the property
is still for sale, it is very likely that the price is over inflated or that the
property has a problem.
- How much would it cost to rent this property? Most of the time
owners have no idea, with this, you’ll know how much he or she knows
about the property and the market they’re moving in.

- The property needs considerable repairs? Here’s where you’ll see
how honest the owner is, usually they underestimate the repairs that
need to be done and won’t be very sincere.
- What is the administration fee? This question you make is when the
property you’re buying is in a residential compound, you also need to
ask if this fee is about to raise or if there's going to be an extra payment
because of some new construction or repair in the compound.
- Do you have mortgages? How much money do you owe? Are you
on check with the payments? An opportunity for buying cheap is to
pay the owners debts so I recommend you investigate this.
- All property titles and legal matters are in order? Make sure
everything is in order, the last thing you want is to be buying problems.
- What are you planning on doing with the sale money? Try to find
out what motivates the owner to sell, sometimes they want that money
to buy a car you already have, if that’s the case you could offer a trade-
off, use your imagination and try to find ways of negotiating in which
both parties win.

HOW TO INVEST WITH
MONEY FROM THE BANK
It’s very funny how people think it’s risky to go to the bank to ask for a loan
to buy an asset and at the same time they don’t think it’s risky to ask for loans
to buy liabilities like cars, vacations, clothes or a house for them.
It’s also very funny when people cry when they lose money while making an
investment, you don’t see them crying when they go out to buy clothes and no
one is giving them their money back or when they buy a car and as soon as
they take it out of the store it loses 20% of its value. Why are investments any
different?
In this chapter I’ll show you what a bank checks before approving a loan,
when you learn how to leverage with money from the bank, you’ll be able to
use some of the techniques shown in this book in order to achieve your
financial freedom.
It’s very important that you think like a bank, not like a consumer, this way,
you’ll know how to get the best loans at the best tax rates.
The first thing banks have in mind before making loans or giving out credits
it’s the “credit scoring”, or in other words the financial scoring. This tells the
bank the credit history of the person and the probability that they make the
payments on time. The more reliable the person is, the more credibility that
person will have, and they will give him or her better tax rates.
With that scoring banks can have an idea of the risks that imply loaning
money to someone or to some company, the ideal is to have good scores to
get the best loans, scores may vary from country to country, for example in
Colombia they are between zero and one thousand (0-1000).

Usually banks have stipulated taxes that they charge according to these
scores, for example, they may charge the highest tax rates to those with scores
around 200-400 and they can refuse to lend money to someone beneath 200
points but remember that each bank or financial entity has their own politics
regarding these risk matters.
In the financial risk entities, you can find out about your financial risk,
usually this information is available to anyone. Check where you can find this
information because it’s very important you know it and to always try to
improve it.
How can you improve your score? Have this in mind:
1. Timely payment: The quantity of payments made right on time. You

need to have in mind that the last ones are the most important ones, if
you were making your payments on time but in the last three months
you stopped paying them or they charged you with interests on late
payments, this will make your score go down.
2. Quantity of credits and commitments: The more credits or
commitments someone has, the lower his or her scoring will be. In this
case, they also check the future possibility of credit loans, for example,
if someone has 4 credit cards but never use them, his or her scoring
goes down because there’s a bigger chance that in the near future that
person will acquire a lot of debt and he or she may start defaulting on
payments.
3. If your monthly payment is greater than the minimum payment: In
matters of credit, there’s always a minimum payment that must be paid,
if the person is able to pay more than this amount that will raise his or
her scoring. It doesn’t need to be way higher than the minimum
payment, just the right amount to let the bank know if this person has
enough liquidity. Usually banks don’t know how much the person paid
in advance, they just know if the person paid the minimum amount or
more. Even if these politics may vary because of the country you’re in,
they usually work this way, if the payment you need to make is of $300
dollars, it would be ideal if you could pay even a little bit more,
something like $310 dollars because in scoring matters if you paid that
amount it would be like if you paid $390 dollars and this would raise

your scores.
4. Number of queries: These criteria reflects the necessity of financing,
each query you make of the scoring will be marked, this means that if
you make many of them in a short amount of time this could affect
your score in a negative way because it says that you need constant and
an excessive amount of financing.
5. Antiquity: The length of time a person has belonged to the credit
sector, saving accounts and similar products are not taken into account,
they only evaluate loans and credit products, this is a very important
factor and one with a big weight when they’re taking the decision.
They want to know if this person has experience with these financial
matters and if he or she knows how things work.
You also need to have in mind that even if you have a good scoring, if your
credit history with the bank you’re looking for to give you a loan isn’t that
good, this may affect their decision.
In summary:
- The better the scoring someone has, the more money the bank will lend
them, more regularly and with better tax rates.
- The lower someone’s scoring is, the less money the bank will lend
them, with less regularity and with worse tax rates.
Besides the credit scoring, banks may also check these matters:
1. Income level.
2. Debt level.
3. Activity type, the bank needs to know where you are getting your
income from in order to know how much you pay in taxes and other tax
regulations.
4. Antiquity with the bank and within the credit sector.
5. The person’s history with the bank or financial entities.
6. Additional reports, they can be from chamber of commerce, HPS’s,
pension funds, etc.
7. Experience when managing large amounts of money.

8. Use of resources, it’s ideal that you use the loan to buy properties
because by doing so, the bank can count on the property as a guarantee,
it would be very hard that a bank loans you money to gamble for
example in stock exchange, remember that the tax rate is associated
with the bank’s risk rate. In real estate investments, the risks tend to get
lower, this is why tax rates are lower as well unlike the tax rates in
credit cards that tend to be higher because of the risk they represent.
9. Income support.
10. Revenue recurrence.
11. Co-debtors or guarantors.
12. Given guarantees, the more guarantees the bank has, the easier it’ll be
for them to lend money.
We won’t give much detail about every matter but have this in mind and
check with a counselor before asking a bank for money, remember that the
bank’s business is to lend you money. The more, the better and if they’re
rejecting you it’s because you’re failing in one of these aspects I already
mentioned, find a way of meeting most of those requirements in order to get
the best loans.

ONE LAST REFLECTION
Don’t get mad at me for the sensible topics that I talked about in this book.
Why are people so sensible and get mad when others tell the truth?
I wasn’t the one that told you to: “Go to school, get a job, get out of debts,
save money and to live a happy ever after”.
I wasn’t the one that taught you algebra and geometry telling you that they
would help you a lot in real life.
I’m not the one who gives usurious loans of $100,000 dollars in order to get a
diploma that won’t help you at all.
I’m not the one that tells people to save money that stopped being money
since 1971.
I’m not the one that tells people that the government or some other private
company will take care of them when they grow old.
I’m not the one forcing people to put their money into a fraudulent pyramidal
scheme of bankrupt pensions.
Please don’t be mad at me, I was not the one who told you all of those lies.
The only thing I tried to with this book was to take of the bandage that was
covering your eyes, the same bandage that your parents, teachers and the
educative system in general covered your eyes with.
I want to give you your sight back.
It’s like if you were asleep for all these years, dreaming about nice and

pleasant things… but then I appeared and woke you from that dream of yours.
It makes sense that you’d get mad, you were sleeping calmly and I disturbed
your dream but it was for your own good: if you stayed asleep, you would’ve
woken up 40 years later chained to a cubicle with a low-paid job (if robots
don’t steal it from you or it doesn’t move to China), filled with debts, living
an average life, hating your week and asking yourself why did you ended up
like you did if all you did was follow what other people told you to do?
I insist: everything they’ve told you since you were just a kid and everything,
they keep telling you, everything you see everyone else is doing, what you
saw your parents and family do and that seems so natural, it’s all a lie, it’s
just a dream.
As I said at the beginning of this book, it’s time you regain your sanity.
It’s time you wake up.

ABOUT US
Our mission is to provide people the knowledge that schools and
universities think it’s not important but that is actually the base of every
successful investor or entrepreneur.
In these times of financial uncertainty, collapses in the markets,

repressed economies, unstable jobs, constant devaluation of the
purchasing power of money and bankrupted governments, financial
education is the only weapon available to the average citizen.
Our social media accounts, blogs, books and courses intend to prepare
and educate as many people as possible who want to become
entrepreneurs and investors, filled with knowledge that they can apply in
real life situations.
Some of our next courses/books will be:
- How to invest in real estate without paying taxes.

- How to earn money using social media.
- How to buy in China and sell using Amazon.
- How to buy in China and sell using Facebook.
… and plenty more.
From mid-July or August of 2018 onwards, the unpublished courses will

begin to come out.
If you want to find out more about our courses and learning material,
follow our social media accounts or go to our webpage and ask us about
them.
The courses we will provide, and all our learning material will be within
everyone’s reach, this is why it will always be digital this way, all these

knowledges can be learned and applied by everyone regardless of their
academic or economic capacities.
Our learning material is thought out and designed to be the best learning
experience of your life, in our real estate courses we’ll dig deeper about
how to invest with a 0% tax rate and using money from the bank or the
government in order to do so and using real life examples as a learning
guide.
Too good to be true?
I can assure you it is true.
Many terms and topics that involve the real estate world were not
included in this book because of the complexity of the examples but in
our following courses will dig deeper and be more detailed about them
keeping them as simple as possible to facilitate their learning. I will
personally design these courses and I’ll make sure when you’re done
with them you have all the necessary tools in order to succeed as an
investor.
I hope I get to meet you someday and to hear about your success story. I
hope you decide to take one of the courses and that I can personally teach
you how can you achieve that financial freedom you’re so desperate
searching for and you have always dreamt about.
It has been a true privilege to have spent this time with you, we’ll meet
very soon!
I send you a hug and may God bless you.
Santiago R. T.

Bibliography
• 1. Rich Dad’s Guide to Investing: What the Rich Invest in, That the Poor and the
Middle Class Do Not! -Robert Kiyosaki
• 2. Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the
Poor and Middle Class Do Not! -Robert Kiyosaki
• 3. Rich Dad’s Increase Your Financial IQ: Get Smarter with Your Money
-Robert Kiyosaki
• 4. Rich Dad’s CASHFLOW Quadrant: Rich Dad’s Guide to Financial Freedom
-Robert Kiyosaki
• Rich Kid Smart Kid: Giving Your Child a Financial Head Start -Robert Kiyosaki
• 6. Rich Dad’s Before You Quit Your Job: 10 Real-Life Lessons Every Entrepreneur
Should Know About Building a Million-Dollar Business.
-Robert Kiyosaki
• Rich Dad’s Conspiracy of the Rich: The 8 New Rules of Money
-Robert Kiyosaki
• The power of now. -Eckart Tolle
• The ABC of Real Estate Investing – Ken Mcelroy
• The Purchasing Power of Money: Its Determination and Relation to Credit, Interest
and Crises, Irving Fisher
• America´s Great Depression, Murray Rothbard
• The Age of Turbulence, Alan Greenspan
• The New Industrial State, John Kenneth Galbraith
• Web of Debt, Ellen Hodgson
• Tax-Free Wealth, Tom Wheelwright

HOW TO MAKE $50,000
USING SOCIAL MEDIA
Learn how to get 100K followers and $50,000 dollars in six months without
having a lot of money.
In this book, I’ll show you the secrets of social media and the steps I followed
to create two brands on Instagram, Facebook, Snapchat and Twitter with
more than 150,000 followers and with a profit of more than $50,000 dollars in
less than six months with an investment of only $300 dollars.
I’ll teach you the following:
● How to earn money using social media without investing money.

● How to become an authentic influencer.
● How to build a social media brand from the ground up.
● A step by step guide to get you started.
● How to automate your social media accounts.
● You’ll learn Instagram’s secrets.
● Fast guide to start getting followers.
● How to make a marketing campaign to gain 15K followers in one
week.
● How to make an email marketing campaign.
● How to use WhatsApp to sell.
● Ideas to earn money using social media.
● How to sell anything.
Santiago R.T.

HOW TO BECOME A
BUSINESS OWNER
Learn how to build a successful business step by step and how to build up
capital.
This unpublished material is what you’ve been waiting for, let me show you
what you’ll find in this book:
● How to start a business.

● How to build up capital.
● How to present your business to a potential investor.
● How to get to know and analyze the numbers of your business.
● Directory of investors in Latin America.
● How to transform an idea into an automated and successful business.
● How to sell.
● How to form and handle your business team.
● How to deal with private equity investors.
● The 7 phases of starting your own business.
● How to boost your business using social media.
… and many more.

HOW TO MAKE MONEY
USING AMAZON FROM
SCRATCH.
Let me tell you everything you’ll learn when you read this book:
● How to generate income without using your own money.

● How to make Amazon the partner you’ve always dreamt of having.
● How to leverage all forms of business on Amazon.
● Why sell in Amazon?
● How to create your merchant account.
● How to open a bank account in the United States.
● How Amazon works.
● How to sell on amazon without having inventory.
● How to find suppliers in China.
● Techniques to negotiate with suppliers.
● How to find the best product.
● How to advertise your product on Amazon.
● How to become rich by taking advantage of the American capitalism.
● How to use Jungle Scout to find the perfect product.
● Free tools that’ll save you time and money.
● Costs from selling on Amazon.
● How to calculate your income and how to pick your product based on
this.
Course content:
● Seven and a half hours of the course.

● 8 modules.
● One guide for each module.
● Free tools.
● Spreadsheets.
● Real jobs.

● You don’t need money to get started.
You’ll learn step by step how to create each account, how to use every tool
and when you’re done with this course, I guarantee you’ll be able to generate
income using Amazon.

Contact us:
@HowToPlayMonopoly
@Sociedadecaballeros
@ComoJugarMonopolio
@MrMonopolyStore
how2playmonopoly@gmail.com
Website:
www.how2playmonopoly.com

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HOW TO PLAY

Why the rent of a green house is better than a payroll check.

How To Play Monopoly In The Real World 2 Santiago R.T.

Partial or total reproduction of this work by any means or

Copyright to the creative design of the cover image belong to Alec

How To Play Monopoly In The Real World 3 Santiago R.T.

How To Play Monopoly In The Real World 4 Santiago R.T.

Middle Class Do Not! -Robert Kiyosaki

Poor and Middle Class Do Not! -Robert Kiyosaki

• 4. Rich Dad’s CASHFLOW Quadrant: Rich Dad’s Guide to Financial Freedom

Should Know About Building a Million-Dollar Business.

• Rich Dad’s Conspiracy of the Rich: The 8 New Rules of Money

• The power of now. -Eckart Tolle

• The ABC of Real Estate Investing – Ken Mcelroy

and Crises, Irving Fisher

• America´s Great Depression, Murray Rothbard

• The Age of Turbulence, Alan Greenspan

• The New Industrial State, John Kenneth Galbraith

• Web of Debt, Ellen Hodgson

• Tax-Free Wealth, Tom Wheelwright

How To Play Monopoly In The Real World 5 Santiago R.T.

How To Play Monopoly In The Real World 6 Santiago R.T.

This book is dedicated to you,

Thank you for investing in

How To Play Monopoly In The Real World 7 Santiago R.T.

Monopoly ISN’T a game. It was designed with a purpose. It

The educational system is a facade created by John D.

THE SYSTEM IS NOT BROKEN.

IT WAS DESIGNED LIKE THIS ON

How To Play Monopoly In The Real World 8 Santiago R.T.

Send your kids to school.

Follow the fashion.

Walk on the streets.

Save money for your old age.

Obey the law.

Repeat after me:

How To Play Monopoly In The Real World 9 Santiago R.T.

There are only two types of drugs that the

Caffeine from Monday to Friday so that you

And alcohol from Friday to Sunday so that

This book will teach you how to get out of

How To Play Monopoly In The Real World 10 Santiago R.T.

It’s a reality, our education system prepares us for

When people don’t learn anything about money, they

How can the average person understand that renting a

What happens when parents, that know nothing about

How To Play Monopoly In The Real World 11 Santiago R.T.

How are you going to buy a Rolex learning from

How are you going to be financially free learning from

How are you going to be a millionaire learning from

How can poverty not exist if school seems more

How To Play Monopoly In The Real World 12 Santiago R.T.

“Schools don’t educate, schools teach nothing except how to

It’s crazy to send kids to a place where they don’t learn

If you are in favor of education, then you must be against

This book is about education...but not about what schools

How To Play Monopoly In The Real World 13 Santiago R.T.

Automatization will eliminate from here to 2030

Basic economic: the greater the offer of employees the

Are you living in a world that ceased to exist a long time

How can they continue to advise people in the same way as

How To Play Monopoly In The Real World 14 Santiago R.T.

Jobs emigrate to the east.