About the seminars!

Financial Seminars:

Tuesday: 7:30pm - 9:30pm
Thursday: 7:30pm - 9:30pm
Saturday: 10:00am - 12:00pm

Their all on: 220 Frobisher Drive, Waterloo
2nd floor!

If you guys want more info e-mail me at:
GDzsurdzsa@yahoo.com
or just give me a call at either or: 519-500-9282
519-584-1902

PS: If you guys decide to go without notifying me
well then just tell who ever greets you that
Gabriel Invited you! so they won't go like:
"Who the hell are you"! Thanx.

The Cash Flow Quadrants!

There are basically 4
quadrants into which
people fit:

1. Employee: You have a job
2. Self-Employed: You own a job
3. Business Owner: You own a
system
4. Investor: Money works for you

Simply put there are four ways with
which people make money with
the last ultimate quadrant being
"money works for you"
Lets start: 1.Employee

Well unfortunately close to around 65% of
the population of Canada is an employee of some
sort: either they work at a sausage factory,
at Tim Hortons, McDonalds, etc. basically have a
J.O.B: "Just Over Broke". If you have a job, If you
have to work for that paycheque you are not free.
This quadrant equates the lower class (80%) and a
minor fraction of the middle class (20%)which have
a little bit better jobs with more benefits.
This quadrant simply describes the old poor man's mentality:
"A: Hey listen how much are you going to pay me if I give you
40 hours" "B: I'll give you 1000$/week" "A: Well allright"
"B: But you can make more" "A: Uhhm ah Hey listen 1000$ fine
I want to get payd for my time because I don't want to be

responsible for results." Funny thing isn't. People

who have jobs get taxed the most, the average

pay raise is 3% of hourly wage while inlfation

averages out at 4%, they don't invest because

all they can afford is to pay their bills.

And this category is also the least disciplined:

they spend spend spend. Not only does the average

North American family spend what they make but

they go into their credit cards and spend more

than they make...TO BE CONTINUED

Leveraging!

Here's what leveraging means in regards to investments: Borrowing money! for use in an investment (something that grows in value over time). Most people that use leveraging use it in real estate.
To illustrate what I mean here's an example:
I take a loan out from the bank to use it on a let's say duplex (a two unit apartment building or a condominium!). Something in the vicinity of 500,000$ 30 year mortgage at 4.7% locked in for 5 years. Lets say that's around 2000$/month. So at a interest/principal ratio of 80%/20% in the first 2 years of your mortgage you pay a total of 38,400$ to the bank and only 9600$ to the principal of the loan. So therefore as a consequence after those 30 years have passed you end up paying around 800,000$ back for you'r loan, or somewhere around there. Here's where leveraging comes into place. Instead of just living in that duplex you rent it out to let's say at 1500$/month for each condominium. That's a cash-flow of what 3000$/month - 2000$/month (mortgage which will decrease). That's 500$ in you'r pocket after you payd all utilities and monthly property tax. Consequently you might include utilities in the cost of rent! So you split the 500$ that you have left over into two 250$ for a mutual fund and 250$ back to principal every month which will enable you to pay off the mortgage 5 or 8 years sooner meanwhile re-distributing you'r lowered monthly payment to you'r investments and mortgage. Pros: Yeah it's a great way to get started. You start generating income quickly. You end up with owning the real estate + have a monthly cash flow + additional investments fairly quickly. Oh between let's say 10 to 20 years. Cons: Midnight calls from you'r renters, utilities + property tax, Too much of a hassle to manage even if property will increase in value under favorable conditions, Takes a very good eye for value, A lot of paperwork, trial and error.