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Thursday, April 30, 2015

Which 401k Investor Are You? by Chris Costello, CEO of Blooom.com

I love to find my followers experts to guest author at CCM blog.  These experts truly enrich the available content at this site.  I mean…I can write a few winners here and there, but all of my experts hit it out of the park.  And why wouldn't they?  They offer insightful help and interesting ideas.

Several months ago, I featured Kevin Conard, Co-Founder of Blooom.com.  Here is that very post in case you missed it: Blooom-co-founder-kevin-conard-one-of-the-good-guys.  Today, I am pleased to feature Kevin's friend, Chris Costello, Co-Founder and CEO of the multi-million dollar start-up, Blooom.  Enjoy everyone!

Which 401K Investor Are You?

1. The DIY investor enjoys researching investment options and in their free time can be found reading investing articles from The Wall Street Journal, Barron’s, Yahoo Finance, etc. This person may believe that paying someone for investment advice is completely counter-intuitive, since they are totally capable of doing it themselves for free. We joke that occasionally, these are the same folks (ahem, Men) who refuse to stop and ask for directions when lost. But that’s another discussion.

2. You have enough coin to actually get the attention of a qualified professional investment advisor. Maybe you are a bit long in the tooth and have done a good job of saving money. Maybe you got an inheritance at an early age. Or maybe you’re a silicon valley stock-option millionaire. Whatever the case – my guess is that you have at least 6 or 7 figures in your portfolio and have the benefit of working with a qualified (preferably fee-only) investment advisor.

3. You know you need help because you don’t have the time, desire, or knowledge to attempt to manage your 401k by yourself. You googled “401k help” and found 19 million entries. You have one of those know-it-all brother-in-laws but you just can’t bring yourself to flatter him by asking for his help. As a result, you’ve done your best to invest your 401k, possibly using one of those “one-size-fits-all” Target Date funds in your plan.

4. You don’t even know that you have a problem. This group of folks really worries me. These poor retirement savers are blindly socking money away into their 401k and have no idea if all of their money is going straight into a money market fund that is (and has been for some time) been paying close to 0% return. Some 401k participants have confessed to us that they thought it was their employer’s responsibility to manage the money and pick the investments for them.

So my question is – which of these 4 types of 401k investors are you? If you are #3 or #4 we invite you to click over to the blooom website and have a look at how we might be able to help. And if you are #1, just do your family a favor – if it’s after dark and you really don’t know where you are – please stop and ask someone for directions. In the end, getting your family there safely is more important than your personal pride.

Chris Costello is the CEO and Co-Founder of blooom. Chris has earned the prestigious CERTIFIED FINANCIAL PLANNER™ designation and has been working with individual clients and building portfolio allocations for almost two decades. At blooom, Chris builds the actual models used to generate 401k recommendations; allowing blooom users to tap into advice traditionally only available to investors with a gazillion dollars.

Chris Costello, CEO
11512 W. 119th Street, Suite Z.
Overland Park, KS 66213

Sunday, April 26, 2015

Latinos, Stop Buying Gold Jewelry!

Latinos should be the last people on the planet buying gold jewelry!  What is wrong with us?  Spending thousands of dollars over our lifetimes buying and selling different variations of the same things.  Gold chains, crucifixes, earrings, bracelets, rings, tooth caps, watches, and so on, what are they good for?  We have a complex, my people.  The gold fever imported to the Americas by Christopher Columbus, lives inside of us too.  The genocide of millions of native peoples in the Americas was fueled by this "precious" metal, now found on our own bodies.

Image result for vicente fernandez el arracadas

I've heard the myths: the gold bracelet on the child is to keep the evil spirits or people who want to do harm, as far away as possible.  The gold crucifix and the chain is to show how devout we are to Christ.  The gold earrings on the baby girl is to make sure people know it's a girl.

I'm calling bullshit on all of it!  It's about status, and it always has been.  It's about what the Spanish did to the Latino psyche.  It's what the poor learned while working on the hacienda of the wealthy landowner, seeing the riches so close, yet so far.  The only way to show oneself superior to others...gold jewelry.  Even gold coins play a role in Latino culture via las arras matrimoniales: http://en.wikipedia.org/wiki/Las_arras.

As a child I remember the first piece of gold jewelry my parents bought me, una esclava.  Ironically, the word, "esclava," translates to the English word for "female slave."  It's a bracelet that perhaps you have seen both female or male Latino children, adolescents, or adults wearing.  Mine looked something like this below:  

My name was not engraved on the plate though this is done in Mexican tradition often.  I outgrew my first "esclava" and my parents bought me a new one from their "gold lady."  Yes, there's a lady or man who is the gold pusher in the Latino neighborhood or barrio.  If not with one of these individuals, many Latinos will flock to their local jeweler for some of the latest gold pieces to arrive.  Latino owned jewelry shops make sure to have stock of pieces made in the likeness of religious symbols such as, crosses, saints, Virgins, etc., so as to prey on the devout who sometimes finance their purchases with the credit card!

The second piece of gold jewelry I wore on me and never took off was a chain and crucifix.  I was baptized Catholic and recall doing my first Communion in Mexico.  Never did complete the other Catholic rites and my mom regrets it to this day.  I don't recall how many gold chains and crucifixes I came to own, at least three I'd say.  One lasted me from 9th grade through Junior college before the crucifix bent out of shape.  My non-Mexican or Latino friends would make fun of me for wearing jewelry while running track and cross country meets.  They claimed laughingly that the gold would weigh me down and cost me valuable tenths of a second.  I wish now I'd listened.  Maybe my 400 meter personal best would be 50.68s instead of 50.88s?

It looked similar to this one below:

Image result for gold jesus on cross necklace

I'd like to remind everyone that I was poor growing up.  My parents had to borrow money from friends for food many times, yet we had gold jewelry we could have sold, but did not.  My mom wore these earrings called, "arracadas," and took really good care of them.  They come in different looks obviously, but my mom's looked something like this:

My two sisters have had their ears pierced as far as they can remember.  Their first earrings were, you guessed it, made out of gold.  Having girls can get expensive for Latinos! 

My parents had a friend who owned a ranch.  His name was Reymundo, and he went by "Mundo."  He had land and animals, and a nice house.  He also wore a ton of gold.  This man wore several gold chains and crucifixes around his neck, an esclava to make all other esclavas look like a loop of yellow yarn, and gold rings like Mr. T.  I was totally in awe of him as an adolescent.  I wanted to be like him, to one day be so rich I could afford as much gold as him--a foolish idea now.

With respect to Mexicans, wearing expensive gold jewelry has unfortunately also been adopted by elite drug lords and cartel top bosses.  In fact, Chalino Sanchez, who became famous in Los Angeles (was murdered in Sinaloa, Mex) for singing his own penned narco-corridos (ballads), was the father of the "Chalino" style.  Western wear with exuberant gold jewelry:

Chalino wearing an "enclave" and huge gold ring.

It a sad state of affairs here.  Just read here to see that I'm not full of crap: http://www.jckonline.com/article/285745-The_Hispanic_Market_Too_Big_to_Ignore.php.

They have us pegged!  And I don't like it.  Not when the money that is spent on gold jewelry could be put to better use, such as investing.  Gold jewelry is not an asset.  Like a car, it depreciates in value as soon as it is taken out of the store.  Even if the price of gold rises, getting back what you spend is hard to do.  Buyers of gold are pawn shops, private buyers, and mail-in services.  They offer the lowest possible prices to sellers to maximize their profits when they sell that same piece of jewelry to the next guy.  How can we be taken seriously looking like Chalino, Tony Montana, Pedro Navaja, or J-Lo?  We can't.  So unless you plan on buying gold stock, bullion, or coins, stay out of the gold industry.  Rise above appearances mi gente!  

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Friday, April 24, 2015

What Poor People Drink, An Inspirational Creative Story of Rising from Poverty

Have you ever drunk pinto bean juice as a beverage?  Pinto bean juice is what my mother used to call the water that was left in the steam pot once the pinto beans were done cooking.  God I hated it.  But she couldn't afford to buy milk for my sister and me, and water had no taste.  She also believed the bean water had nutrients that would be good for me, and a Mexican mother's beliefs are hard to dispel.

Immigrating to the United States in 1983 was the best present my palate could ever receive.  By the time we arrived in San Jose, CA, (we traveled from El Paso, TX to Los Angeles, CA, then to the Bay Area) a month later, I had been introduced to orange juice.  The stewardess on the plane flight from Texas to California must have thought I was dying of thirst, asking for second and third helpings of the stuff.  However, I would not be refreshed again by delicious orange juice, much to my dismay, until several years after.

I grew up a child of Sunny Delight.  From second grade through elementary that's what I had to drink at home, other than water.  I drank milk at school.  Sometimes I'd beg friends for their carton.  I'd score a few extra on any given week.  But home, a single bedroom apartment on McLaughlin Avenue was Sunny Delight's kingdom.

Most immigrant families improve their standing over time.  My parents were able to save money after three years of work as night custodians at the now defunct Rolm Corporation, and procure our family better housing: a two-bedroom duplex on 1192 South 12th Street.   I spent ten years at this domicile.   So did Tang.  My mom for some reason was convinced Tang was now healthier than Sunny Delight.  She had more authority over her children with Tang.  “Two spoonfuls only!” she’d yell at me as I ran to the kitchen dehydrated from playing outside.  My best friend, Isaac, an African-American insisted Kool-Aid was “way better” than Tang.  I liked Kool-Aid.  My mom never got it for us though.

I watched a lot of Yo! MTV Raps during my high school years, 1990-1994.  It was the living room couch, my 7-11 Big Gulp, and I passing the time after school.  Just the three of us.  What was it, fifty-nine cents for a liter of any available fountain drink they had on store?  My goodness, I felt like Charlie from Willie Wonka getting off the public bus, running to the 7-11 at the corner of my block for some of their Fizzy Lifting Drinks.   

What saved me from becoming a diabetic and from my sugar dependence was physical activity.  I didn’t know it at the time, but I suffered from anxiety and depression.  I still do.  But back in the early nineties, without a diagnosis or medication, running cross-country and track and field kept my body even-keel.  It also allowed my mind to concentrate and focus.  I got off the sugary drinks, heeding my coach’s advice.  I started to see the link between my poverty and the refreshments we had available at home.  Do rich people drink Coke or Pepsi for breakfast, lunch, and dinner? I asked myself.   No, they probably have butlers who serve them freshly squeezed fruit or vegetables and own several of those famous TV juicer machines, I thought.

When you’re poor, your choices are limited.  But you still have choices!  I chose to stop drinking poison.  I chose to read instead of watching so much television.  Though I pulled off a 3.3 G.P.A by the end of high school, I was not ready for a four-year college.  I chose to go to community college even though I had acceptance letters from several prestigious institutions.  Having a former illegal alien, Mexican, bi-lingual, and poor student on your campus…what Admissions Office wouldn’t want that?  Like Tom Hanks, community college saved me.  I was a horrible writer after high school, despite earning A’s in honors English courses three years in a row.  Undoubtedly, I would have flunked out at a university.

San Jose City’s writing lab was my salvation.  Tutors helped me get the basics of writing craft down.  So did being an avid reader.  Everyone has access to books!  While at SJCC, I read like a monk during the middle ages.  I read the classics.  I read philosophy.  I read about governments and ruling.  I read American literature from the 1800’s to the present.  And I wrote.  I fashioned my writing after Twain, Poe, and Steinbeck as writing exercises until I found something: my own voice.

And so although being poor is a financial condition of your place on the planet, it is not a condition of your heart or mind, unless you live in a country without freedoms.  America is such a great country because you can learn to read and write without reprisal.  Because you can make a living from reading and writing and replace poverty with endless wealth.

Who taught me to invest in real estate, stocks, and bonds?  I taught myself with only a library card.  I taught myself spending hours reading at the Barnes & Noble.  Now I’m worth over a million dollars at 38.  I can’t remember the last time I drank Sunny Delight or Tang.  That’s a great thing!

Thanks for reading!  Don't forget to subscribe to this blog before you leave and get a book that chronicles how I made my money, with similar entertainment as this story you just read: Common-Core-Money-Financial-Professionals-ebook/

Wednesday, April 22, 2015

Rich-Uncles Investors Ask the Questions, My Responses

Many of you who have followed me for a long time know I’m the author at Rich-Uncles.com Education which basically means I’m the company’s (Nexregen REIT I) blogger.  I also happen to be their number one fan, so to say, being given the honor of serving as Rich-Uncles’ Brand Ambassador.  My contact information, as well as that of multiple other investors, is shared on the site so that prospective investors can reach us.  

The idea is simple: give would-be investors a chance to get the scoop from someone who’s already in.  I get several email inquiries monthly from people who’ve found the investment and want more information.  Because I happen to be an educator, I know from my time in the classroom that the questions offered up by students are better learning opportunities then the questions posed by the teacher.  So for you today, I have two great emails to share.  Although I’ve already personally replied to these individuals, I will answer them on this platform so you can get a better feel for the R-U investment opportunity.   

Email Inquiry 1
Monday, April 13, 2015:

“Hi Carlos,
I have been hearing Bill Handle rave about this company on the radio and he talks about doing your due diligence with this company. What were some of your concerns before you invested? What were your expectations?  What were your apprehensions?  Where else can you check out about this company?   All the testimonials are about how great the company is.  I need a neutral unbiased opinion. Thanks, (Name of Person).”

My response:

Hi (Name of Person),

Like most investors I first wanted to make sure the people behind it were legit.  I Googled the Founders and finding them to be in great standing was a relief.  I was further convinced seeing Ray Wirta, CBRE Chairman as the main backer.  Ray is too reputable of a person in the RE industry to be involved in any sort of scheme.  So this was one thing off my due diligence checklist so to speak.

My other concern was liquidity.  I didn't like not having control of when I could sell my shares.  I presented this concern to Harold and Howard when we were brainstorming how to get more investors and Harold was keen enough to set aside money for a share redemption program, in the event people suffered an emergency.  So now one can sell their shares back to the company and get their money back the following quarter.  It's not overnight like the stock market, but it's better than nothing.  I invested with money I don't immediately need so this helps a lot too.

Other apprehensions are systemic worries.  Will RE do well ongoing?  Since I don't have voting rights, can I trust the Founders to make the right decisions with acquisitions for ex?  Well...after a year, I can say I'm quite pleased.  Harold has got the eye for finding great deals.  He's done it twice already!  I'm confident he can keep things going.  

If you want a thorough review of the investment, I invite you to go to my blog, www.commoncoremoney.blogspot.com.  The top blog post is, "Investing with Rich-Uncles."  Over 2600 people have read it in one year's time.  Quite popular.  

Feel free to email me again with any further questions.  Thanks!

Email Inquiry 2
Saturday, March 28, 2015:

“Hello Mr. Gomez,

A friend mentioned the Nexregen REIT to me last week and I've been looking into it as a potential investment vehicle. I came across your blog from last spring and was wondering if you wouldn't mind updating me on how the shares have performed over the past year. Have you consistently received your quarterly dividends? Did you reinvest them? If so, do you happen to know what your rate of return was before and after the reinvestment? I'd appreciate any info you're willing to share. It would be tremendously helpful as I look for new ways to invest (mainly tied up in a few blue chip stocks at the moment- slowly moving along conservatively and looking for something a bit more aggressive but still with consistent ROI).

Thanks so much for your time and for all the great info on your blog!”

My Response:

Hi, (Name of Person)

First of all thank you for your kind words about my blog.  I'm glad it has been of service to you.

I went online to the R-U platform and copied my account $ amount info for you (below).  If I recall, I bought $10K worth of shares (1,000) on March 22nd of 2014.  So I only accrued 11 days or so for my first quarter and had a pro-rated yield for Q1.  So, how it works is that at each quarter, investors get 1/4 of 7.5% (annual yield) on whatever $ amount they have invested.  Taking the end of Q1 2015 which ends on the 31st of this month, I will get 0.01875 x 10,597.34 = $198.70 in dividend which I will re-invest (automatically) and buy an additional 19.87 shares.  I will have earned, therefore, $10,796.04 in one year + 11 days.  If I subtract the $ amount I earned for 11 days…I think it was $22 or something, then my true one year gain is $10,774.  7.5% would mean 10,750 but as you know with the reinvesting and compounding happening, you get more $ over the course of time.  This is all to say that the math always works!  And that it is exactly as the Uncles have stated to investors.
Sell Your Home Yourself And Save Thousands!

The dividends are damn near guaranteed with the way Uncle Harold operates.  He's a math whiz and knows exactly when he needs to buy another property to keep them (the divs) coming at the 7.5% annual yield threshold.  There have been two major acquisitions (a Chase bank and recently a Chevron station) since I first invested.  I am one of their original investors.    The timing for this REIT is spot on with commercial RE just starting to climb its curve path, notwithstanding another major Great Recession, of course, in which case, every asset class would falter…but the odds of that happening are slim.  

I hope this helps and thanks for making me go through the math for my own investment 

Carlos Gomez IRA/401K
 Account is up-to-date 
 Nice job you're reinvesting dividends!
Reinvested Dividends: 79.60 
Account Total $10,796.04 
Total Shares 1,079.60

Sometimes people are afraid to ask questions.  For whatever reason, they will not raise their hand to speak feeling perhaps like their question is “dumb” or inconsequential.  When it comes to investing and your money, you can’t be timid.  I just gave you some tips for beginning investors a few days ago.  
I live by tip number 10 and you too should adopt the mindset of not worrying about asking questions, as many as it takes for you to make a decision, yay or nay, on an investment.  Who knows, in asking a question, you may be helping someone else out?  There’s been many times in my investor career when someone asked a question I hadn’t even thought of or considered.  Thank goodness these people spoke up!
Thanks for reading.  Feel free to leave a comment before you leave.  Also don’t forget you will get a 4.6 out of 5 star eBook: Common Core Money: Financial Literacy for educators & Other Professionals absolutely free when you subscribe to this blog.  A $9.99 value at Amazon. 

Tuesday, April 21, 2015

19 General Investing Tips for Beginning Investors

I have been an investor for over 12 years and what I have learned from my experience, and from mentors is that all investing is the same.  You buy something, you sell something.  It doesn’t matter if you’re buying one block of gold or an entire shipment, a stock, an existing company, an art piece, a house (not your residence), a foreign currency, etc.  The objective is to sell these things to someone else for more than what you paid.  The second and equally important objective is to get something (whatever) for less than what it’s worth.  And determining what something is worth can be hard.  What something is really worth boils down to what someone else is willing to pay for it!


Investing also involves various levels of negotiation.  There will be times when no negotiation is required, i.e., someone will take your price.  Why?  There’s always a reason and in these cases, desperation is the emotion driving the other side of the deal.  You’ll get the best deals when the seller is in a distressed situation.  Most of the time there will be some negotiation involved and in these cases you have to know your maximum price to pay for whatever the seller is selling.  Any price point beyond this maximum and you will fail to turn a profit later.  The point between maximum profit and no profit is your “margin of safety.”  If you’re not careful, and buy at the wrong price, you will erode your margin of safety and in turn diminish your returns.


I’ve taken the liberty of writing out 19 general investing tips for beginning investors with the intent of shedding more light on the topic.  Perhaps these tips will simplify what investing is, and let you visualize yourself taking part in something I find to be truly enjoyable.

  1. In real estate, investing is more of a win-win.  In the stock market, it’s every man for himself.  Know the playing field.

  1. Enter the playing field (the stock market, the real estate market, the Forex market, etc.) knowing as many of the rules as possible.  It’s always best to have another investor introduce it to you.

  1. Get really good at appraising value.  Time and experience improve your appraisal skills.

  1. You make most of your money when you buy, at the front-end, not when you sell, or the back-end.  If you’ve bought high, only a miracle will keep your deal from not smelling like backend.

  1. Taxes are expensive.  However, never overestimate the impact of taxes, meaning don’t let taxes keep you from selling to either get out or get cash for a better opportunity.

  1. Taxes are expensive.  However, never underestimate the impact of taxes, meaning don’t let taxes eat away your profits by not minding them, i.e., not having a tax saving strategy for each of your investments.

  1. If you see money as a hammer, every opportunity will turn into a nail.  Money is a tool to be used, not left gathering dust in a bank account earning zero interest.

  1. There’s risk and there’s reward.  But your behavior, how you deal with risk and what you do with your rewards, matter more.

  1. There’s death.  There’s taxes.  And there’s inflation.  All three are certainties.

  1. In any deal, you’re not charged a single penny for asking a question.

  1. Don’t fall in love with the first investment home you ever buy.  Get a few flips under your belt as quickly as possible, so you have staying power, working capital to get on with your next deal and be able to deal with the things that will invariably come-up.

  1. If you want maximum and accelerated gains, don’t diversify.  Put all your eggs in one basket, but make sure you have a tight grip.

  1. Just get out there and do it.  Thinking too much about it will paralyze you.

  1. Don’t let one mistake stop your investing career.

  1. My father-in-law made millions of dollars investing. He spent it all on booze, women, and divorces.  Don’t be like my father-in-law.

  1. You DO need money for investing.  Using Other People’s Money (OPM) is preferred.

  1. Surround yourself with good and reliable people.  If they don’t have these qualities, don’t hesitate to get rid of them.

  1. Learn how to negotiate.  Negotiations and investing are dance partners.

  1. The best tip of all...don’t invest money you can’t afford to lose.

If investing is still too scary for you, consider this:

There is more risk in driving a car than there is in investing.  People are okay placing their lives in danger almost every single day, getting behind the wheel.  Yet it’s the thought (fear) of losing money that keeps them up at night.  Go figure.
Thanks for reading.  Need courage?  Email me: info@commoncoremoney.com.  Before you go, don’t forget to subscribe to this blog so you won’t forget it exists!  Also, go ahead...leave a comment and let us all know, what scares you about investing?     

Sunday, April 19, 2015

This is “Why” You’re Not Making Big Money

"My Mind Playin' Tricks On Me"
Geto Boys
[Verse 2: Willie D]
“I make big money, I drive big cars
Everybody know me, it’s like I’m a movie star...”

These lyrics by Willie D of Geto Boys just about sum-up why the average person never gets to be rich.  Being rich isn’t everyone’s desire.  Many people are happy to work a long career, budget, and save for retirement.  Sorry, this post is not for you.  However, if you’ve ever aspired to have the things in life you feel you deserve, for example, enough money for an early retirement, a fancy car, a big home, etc., and have failed to get there, your problem may not be a lack of money sense or skill.  I am here to tell you that what could be holding you back has nothing to do with lack of want, energy, or even regular motivation, but rather has everything to do with your life: who you are, what you stand for, and why you’re on this planet.

Most people associate wealth with being able to afford more things without concern for depleting one’s funds.  It’s a lifestyle thing.  The typical working class individual is after the lifestyle the wealthy get to enjoy.  I mean, who wouldn’t want to be able to eat like a king, travel often, have a personal chef, (insert your dream state of existence) and so on?  People get after it, meaning, they work hard, without rest sometimes, in an effort to make their dreams come true.  Not seeing the financial outcomes they’d hope for, tired and defeated, they give up.  They go back to what they can depend on to keep them living, not alive: a job.

Where in the path to becoming rich do people err?  It’s not at the beginning, the middle, or the end.  People screw-up becoming rich before the beginning!  In what I learned network marketers call, “The Why.”  Your, “why,” is something greater than you, believe it or not.  It’s the selfless blueprint of your reason for starting on your path to financial independence.  My wife, Jessica, is an Arbonnista (Arbonne International).  Before she could get really good at presentations, selling to people and convincing them to join her team, she had to work for numerous hours on her “why.”  All the Arbonne consultants, just like most other network marketers, have a “why.”  Somewhere in their presentation they share their “why” with their guests.  Having a good “why” makes them thousands.  Having a great “why” makes them millionaires.  But it’s no gimmick!  You see this is as sincere as sales can get.  I’ve never seen so many people cry at an event (other than a funeral) as much as I have when witnessing a great Arbonne consultant relating his/her “why.”

An Arbonne "opportunity" meeting taking place.  Lady on the left thanking her team on the right.

Why do you want to be rich?  Is it because you want more things?  That’s a horrible, selfish, and insincere “why.”  It won’t add meaning to your life.  

Is it because you want a super lifestyle?  Okay, but this is still about You, and may be what deep down sabotages your every move.  

Self-made millionaires started out with huge, and I mean huge, “why’s.”  They wanted to be rich in order to get their family out of poverty.  They wanted to be rich in order to pay for a loved one’s cancer treatment.  They wanted to be rich to send a sibling to college.  They wanted to buy a loved one the prosthetic they needed.  They needed the money for a parent’s operation.  They see a need to provide a service to underserved people and they want to give to these people (via a charity, e.g.) throughout their lives.  Do you see the difference between the motivations to get rich here versus what you may be holding onto in your mind for motivation?

Your “Why” Can Evolve

When I first came to this country as an immigrant from Mexico, my “why” for becoming rich consisted of helping my family out of poverty.  This fed my being for many years, until I became a professional and a successful investor, and realized my parents can now count on me whenever in need.  I’ve been able to help my parents financially many times.  But the need to do so has lessened over the years (my parents are in good health and spend below their means) and this became a problem.  My motivation for becoming rich diverted back to me, and I had to find something more pure, so to speak, a worthier cause to continue my wealth-building path.  My “why” had to change.

Money as a motivator can work for some people.  You don’t want to be like these people.  Deep down you want to matter for/to someone other than you.  What’s the point of living otherwise, right?  Well, as it turns out, making lots of money goes hand-in-hand with helping others in a way that inspires you.  My “why” today is all about helping others become wealthy.  My platform is this blog.

To help you get started on your own worthwhile “why” I invite you to go to my About Me page.  In it you’ll read my core belief: “Every person has limitless potential to be successful, wealthy, happy, and helpful to others.”  And this is my educational agenda: “I also believe financial literacy has the power to transform the lives of members of ethnic minorities (especially Latinos and Blacks) who are economically challenged.”

The secret to wealth creation is helping people, period.  Sure there are mechanics to making money, but you won’t get anywhere without first scripting a great “why” for becoming rich.  This is fundamental.  Once you’ve clarified your “why” I guarantee you’ll never be devoid of purpose.  And when obstacles appear along the way, which invariably they will, you’ll always have your “why” giving you strength to find solutions.  Finally, you’ll better appreciate the lifestyle of your dreams when you know you didn’t step on everyone to get to the top, that along the way you guided and assisted others.   

If you need help with your “why” email me: info@commoncoremoney.com.  I’d be more than happy to help you get your mind to stop playin’ tricks on you.  Thanks for reading!   

Friday, April 17, 2015

Rich-Uncles.com 1st Quarter 2015 Dividend Declared

Lot's of great news coming out of the Rich-Uncles.com headquarters in Newport Beach, CA.  On 4/15/15 the company sent out this communication to its investors and Facebook followers:  

Nexregen Real Estate Investment Trust I

$65,000 Dividends Paid
1st Quarter Dividend Declared
RichUncles.com is proud to be distributing $65,000 in dividend income to Shareholders.

A cash Dividend for the first quarter of 2015 equal to $.1875 per $10.00 Share will be paid on April 15, 2015 to interest holders of record as of March 31, 2015.  

The Dividend equals an annualized 7.5% investment return. 

Business Update.  

RichUncles.com (Nexregen Real Estate Investment Trust I),  (the “Company” or “we”, “us”, or “our”) continued its positive momentum during the first quarter.

In February, we purchased a Chevron service station including a Chevron-branded “ExtraMile” convenience store in Rancho Cordova (Sacramento), CA.  This Chevron property is strategically located at an 80,000 cars-per-day intersection in a busy commercial area.  We have executed a new, 10-year NNN lease with the service station owner/operator, who owns and operates multiple service stations and has a significant net worth.

The Company’s growth trajectory is accelerating.  More REIT Shares were sold in March than any other month to date, by a significant margin.  We recently integrated an ACH feature, whereby Company REIT Shares can be fully purchased on-line via RichUncles.com. This has facilitated an increase in Shares purchased and an overall enhanced user experience.

Our acquisition Line of Credit balance is again approaching $0 and we anticipate entering escrow shortly on our next acquisition – updates to follow.

(The purpose of the Line of Credit is to buy income generating commercial real estate investments in conjunction with selling Company Shares.  As Shares in the Company are sold, the Line of Credit balance is correspondingly reduced.  In this regard, new Shareholders immediately own income producing real estate and immediately earn Dividends derived from this real estate).

Investment Update.

All of our investments remain 100% leased with all scheduled rents received on a timely basis.

Our Del Taco investment is a partnership interest in 22 Del Tacos. The partnership has retained a commercial real estate broker to sell these Del Tacos, which we are in favor of.  We believe that we will realize a handsome investment return.  We expect a sale to conclude by late 3Q15 or early 4Q15.  We will provide updates in subsequent reports.

We have offers out on two properties and are in negotiations to purchase another Sacramento-area Chevron / ExtraMile service station from the seller (and now tenant) of our Rancho Cordova Chevron.  We expect to place our next property in escrow before the end of April.


RichUncles.com is proud to be distributing $65,000 in dividend income to Shareholders.

A cash Dividend for the first quarter of 2015 equal to $.1875 per $10 Share will be paid on April 15, 2015 to Shareholders of record as of March 31, 2015.  This Dividend equals an annualized 7.5% investment return.   

Shareholders who purchased Shares during the first quarter of 2015 will have their Dividend payment pro-rated based upon a 90 day calendar quarter, as measured from the date shown on each Shareholder’s Share Certificate.

Shareholders who purchased Shares on more than one occasion will receive one check representing all of the Dividends owed to them; and those who own their Shares in a custodial retirement account will have their Dividend paid directly to the account custodian.

Shareholders who have elected to participate in the Company’s Dividend Reinvestment Program will receive notification via email of their current Share account balances, including the reinvested Dividends, on April 15, 2015.

Questions, Comments or Concerns.  Please send any questions, comments or concerns to info@RichUncles.com.  We would love to hear from you.

Howard Makler, President 
(714) 309-1600 direct

For current and future investors, interesting developments here include:
  • March record influx of new investors.  This is a bullish signal of confidence in the investment.
  • Acquisition of new properties:  "We anticipate entering escrow shortly on our next acquisition – updates to follow….We have offers out on two properties and are in negotiations to purchase another Sacramento-area Chevron / ExtraMile service station from the seller (and now tenant) of our Rancho Cordova Chevron.  We expect to place our next property in escrow before the end of April."
  • Sale of existing assets:  "Our Del Taco investment is a partnership interest in 22 Del Tacos. The partnership has retained a commercial real estate broker to sell these Del Tacos, which we are in favor of.  We believe that we will realize a handsome investment return."  
I contacted CEO, Harold Hofer, to get his personal take on the 1st Quarter and he had this to say,

"We are extremely pleased with our first quarter results.  As anticipated, all tenant rent payments were received as scheduled.  Our dividend payment was again fully supported by rents received.  The pace of REIT share sales continues to accelerate, allowing us the opportunity to actively be in the market to purchase more properties. 
Earlier in the quarter, 1099 tax forms were delivered to shareholders by January 31.
We remain laser focused on our game plan, which is the investment in and management of quality, cash-flowing properties that provide consistent and reliable dividends to our shareholders."

There you have it, friends.  With that, onto Q2!  Thanks for reading.  Questions?  Email: info@commoncoremoney.com.