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Most people do not know how to be the architect and swing the hammer at the same time. The MIT 3.0 program will teach you how to do both.
1. 30,000 ft. view
As an entrepreneur you have to learn to see things from two perspectives:
- Big picture (Overall view) goal:
- Aim to cash flow $10,000 per month:
- To reach this goal, you’ll need 10 multi-units in your portfolio.
- It may take 5 years to reach this goal.
- 2 multi-unit purchases a year.
- $1,000 per month per closing.
- 10 multi-units might not be available each year so the progression of reaching your goal may fluctuate each year.
- You may need less units or cashflow to quit your day job.
- Decide on what motivates you to take action on your goal.
- Aim to cash flow $10,000 per month:
- Being in the trenches (Detail-oriented)
- Have discipline to perform daily habits that will get you closer towards closing at least one deal every six months
2. Billboards for success
Studies show that constant observance of an image provokes a person to take action.
- Create billboards of success specific to your goals:
- Remove the 100 PF logo, and complete the Sample-Resignation Letter – Creed and post both on your wall.
- Recite the letters daily.
- Visualize yourself as an entrepreneur daily.
- There are several determinants of success:
- Knowing your starting point.
- Knowing your ending point.
- The vehicle you choose to get you there.
- The cost.
- The resources.
- Whether or not you’ll use partners or go it alone.
- The time it will take to get there.
- The most important business is you, and knowing your personal numbers can get you to financial freedom quicker than you think:
- Clean up your credit.
- Reduce your living expenses by 20% and live below your means.
- Increase your passive or earned income.
PILE means that your passive income is greater than your living expenses by 150%.
- Calculate your PILE by using the Income Statement_Balance Sheet:
- Make a copy using Google Sheets.
- Gather 3 bank statements to calculate your totals on the income statement.
- Add totals in categories.
- Use net profit and not gross income when calculating cash flow.
- In regards to the balance sheet, there’s assets and liabilities.
- List the value of your assets.
- List the total amount owed in the liability column and not the monthly payment.
- Review your credit scores at 100pfcreditcheck.com and list it on the income statement.
- Update spreadsheet monthly.
- To reach your end points:
- Aim for a 680 credit score.
- Aim for $10,000 per month to reach financial freedom, but you may need less.
- Save 6 months of living expenses.
- Save 20% of your main salary.
4. Financial priorities
- Look for multiple funding sources and complete the Income Statement_Balance Sheet:
- Private money
- If you don’t have a 680 credit score, then complete the credit repair module.
- If you’re not able to save at least 3 months of living expenses, then start the wholesale module and use the proceeds for savings before moving on in the program.
- If your DTC ratio is above 30% and your DTI ratio is higher than 40%, then wholesale and use the proceeds to pay down debt.
- Once you have your DTC and DTI in order, then wholesale to buy multi-units.
- Follow the MIT OP.
Words of advice
- As an employee, you get taxed off your gross income, but as an entrepreneur you’re taxed on your net income.
- Read the “Richest Man in Babylon” to learn how to pay yourself first.
- Your assets minus your liabilities equal your net worth, which can be leveraged.
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