ODesk for Hire

The Internet is changing the way that we work.  Although most of us still drive to a phsyical location in order to work, there are some of us who decide to work from home.  For example, a startup company may be looking for someone to develop their website, and a web developer can bid on the project from their fingertips at home.  The trend is moving in this direction, and I would like to just mention a couple of companies that provide a common location for these buyers and providers of services. 

ODesk: I don’t know how long this company has been around, but the website is extremely sophisticated.  The way it works: a buyer of services posts a job or project and within two or three days, numerous providers will bid on the project.  For example, I needed a web developer who specialized in Joomla 1.5 content management, and about 21 candidates posted their resume and cover letter for the project.  The point is that I had some of the best talent in the world at my fingertips by using the system.  ODesk has no front-end fees to use the service, which is great.  ODesk gets paid a percentage of the hourly wage that you pay the provider.  There are a multitude of providers who use the service.  Some of the services offered include web design/programming, administrative work, or article writing for blogs. 

The great part about ODesk is their ability to track the work progress of providers.  This gives a buyer the confidence that work is being completed to the buyer’s satisfaction.

Elance is another great service that links buyers and providers.  I have used the service very little, but it provides the same type of services as those of ODesk.  The buyers and providers are charged by the amount of “contacts” that each uses to communicate.  If a buyer wishes to contact a provider, he/she is required to buy “contacts” that allow that to happen.  Again, I have used this service on a limited basis as a provider, so I will not go into more detail. 

I would recommend checking out these websites to get familiar with them.  Here’s the links: www.odesk.com and www.elance.com.

Create Multiple Streams of Income

I was speaking with an old banker friend today and we began to discuss new trends that we may see in the business world.  She mentioned that the economic downturn and thousands of layoffs would likely spawn new small businesses opportunities.  I agreed with her.  With so many layoffs and new home business opportunities out there, it’s possible that people will take the leap into owning a business. 

With that being said, I would like to provide information that could help you on your journey after leaving corporate America.  The information I’m providing is directed mostly toward those individuals who are unsure of the type of busines they want to start.  I speak to people in this category because it can be frustrating when you don’t know what to do with yourself, as I did one year ago. 

For starters, I would like to introduce the idea of multiple streams of income.  The idea of many sources of income is becoming more popular now, especially with the trend of home-based business depending on the Internet.  For example, an employee working as a sales manager could start a part-time business teaching sales skills to individuals, and/or write a book discussing the skills needed to be successful in sales.  The objective of multiple streams of income is diversification.  A stock broker recommends diversification in your investment portfolio.  Why not diversify your income sources?  With so many layoffs, having multiple income sources lowers your risk of losing the game of money.

During the first few months after leaving my job, I spent a lot of time thinking, which is what I recommend also.  Of course, this does not mean be lazy and do nothing.  Thinking helps clear the mind, which is often full of rubbish after you leave your job.  In fact, after I left my job I spent about a year thinking and processing information that I thought would help get a business off the ground.  After that year, I was starting to implement some of the ideas that I had developed.

For me, the hardest part of this process was finding a business that would utilize my skills, highlight my talents, and be marketable.  So I researched tons of business ideas that I liked.  I created a list and narrowed it down to five ideas.  I soon realized that out of those five, I had two or three that would be worthy of pursuing.  For example, I enjoy investing in real estate, building website, and writing about investing.  Therefore, my idea list looked something like this:

• Real estate leasing agent


• Write a book about investing


• Write articles for a business blog


• Buy and sell items on Ebay


• Build a website that offers some type of real estate service

Keep in mind that I have a skinny budget, so most of my ideas are small.  As I start to develop my ideas further, I can then take the extra money and begin focusing on bigger ideas.  Of course, I could find investors to fund a new big business, but it’s my choice not to do that.  If your budget is healthy, I would recommend taking your best idea and going for it!  However, never spend more than you can afford to lose.  There nothing wrong with starting small and failing.  Losing big is a much bigger lesson to swallow. 

If you’re considering leaving your job to start a business, make sure you’re financially prepared.  Don’t leave your job without a plan.  Although I had no plan after my job, I did have passive real estate income paying my bills (although I was still broke!).  Consider creating multiple sources of income while you have a full-time job.  Not only will you have more money to fund your ideas, but you will gain experience as a business owner. 

I wish the best of luck to your endeavors.

A Word on Spending and Debt

Are you experiencing financial difficulties during the economic downturn?  If so, you are definitely not alone.  Even with the recent decrease in gas prices, the economy continues to create problems for millions of Americans.

 

During these tough times, there are some ways to keep above water.  One way is to practice smart cash flow management.  This means curbing your spending—avoiding the temptation to buy luxuries like high-end designer suits, a big screen television, or remodeling your basement.  This requires willpower, and none of us want to deprive ourselves of having nice things.  However, good cash flow management requires us to sacrifice these luxuries at certain times.  There are many ways to curb spending.  Here a few ideas to that can help:

 

• Pay cash for purchases; use a credit card only for emergencies
• Switch to less expensive brands of everything from shampoo to cars
• Be patient and wait for a sale
• Shop at wholesale clubs and discount department stores
• Don’t take a vacation until you have the money to pay for it
• Cut back on meals out
• Curb your cell phone use
• Winterize your house to save on energy costs

 When you curb spending, you will soon find yourself keeping more of your income.  You may be thinking, “cut back on using my cell phone and save $2 by switching to generic brand names?  That’s not going to save much.”  However, these savings add up quickly over time.  For example, downgrading your cell phone plan from $100 to $50 adds up to $600 per year in savings!  By budgeting wisely and keeping more of your income, you can apply this extra money towards more productive goals, such as investing or paying debt.

 

As for managing debt, if you find yourself trapped you might want to consider creating a plan to stay in control.  First, you should be aware of the type of debt that you have.  There are two types of debt: secured and unsecured.  Secured debt is that which is backed by collateral, such as a car loan or home mortgage.  Unsecured debt, usually the most expensive, is debt that has no collateral behind it.  This typically includes your credit cards or student loans.  The reason this debt is more expensive to you is because the lender has nothing to take from you if you fail to make the payments.  Most unsecured debt is unnecessary and should be avoided if possible.  

 

Most experts will recommend paying off your unsecured debt first.  Because unsecured debt is more expensive, it will take more dollars over time to payoff.  One strategy with credit cards is to redirect the monthly payment on a paid-off card to the balance on the next card.  For example, let’s assume you have two credit cards.  If you payoff your first card that has a minimum payment of $112, you could take this additional amount and apply it towards your second card.  At the same time, you would continue paying the second card’s required minimum payment.  Using this strategy is one of the quickest ways to payoff your unsecured debt.  Once your unsecured debt is paid-off, you can then start to eliminate secured debt.

 

Managing your finances is a daunting task and it requires focus and patience.  If you find yourself getting frustrated, don’t give up.  Managing your cash flow is the true beginning of financial stability.  Once you put in the work, you will be in control and on your way to true financial freedom.  

           

Waiting for Change?

“We are not the Blue states of America, nor are we the Red states of America, we are the United States of America.” 

Those were the words of Barack Obama that rang out loud and clear during Campaign 2008.  America demanded change, and change is what we got.  I’m glad to see that Obama was able to make such history.  I would have been equally happy if McCain had won the ticket.    

Now the time has come.  On January 20 Obama will be responsible for making tough decisions concerning taxes, war, gas prices, and the housing crisis.  More specifically, he will be responsible for structuring a bailout plan for large U.S. corporations whose top executives have greedy hands.  Here’s something to think about: Do you think all of us will get bailed out too?  I seriously doubt it.  Are you counting on Obama or the government to repair your credit score or fix your home loan? 

I’m not bashing Obama by any means.  Even if John McCain had won the election, the problems we face are enormous for one man to handle.    

The world has changed significantly during the past two decades.  We have entered an Information Age that is changing the way we think and communicate.  Thinking globally has become the norm.  Anyone who has a computer and few extra dollars can build a website and have customers across the globe.  Government is changing too.  The United States has firmly established its presence in the Middle East, and there is a theory that explains we need to remain there in order to retain global power.  This would require enormous defense spending (which it already has), and as a result, the government has dipped into Medicare and Social Security tax dollars to fund our wars.  Who will be losing out once the money is gone?

I wish Obama the best of luck during his first term.  I believe he will do a great job for the country, and he will make great changes to America.  As for your financial future, Obama (or anyone else for that matter) has no real control over your financial health.  It’s up to you to get educated and learn how to provide for yourself and family.  If you plan on waiting for the government to bail you out, be sure not to hold your breath. 

By the way, I’m Rob Myrick and I approved this message.

                 

 

Switching Sides

Hi Everyone! 

After 3 months of no writing activity, I’d like to give everyone something to read again.  

For those of you familiar with the writings of Robert Kiyosaki (also one of my favorite authors), you have learned that people can be classified into one or more of these quadrants: Employee, Self-Employed (Specialists), Investors, or Business.  Kiyosaki claims that people in the E or S quadrants (the left side) tend to seek security or control when it comes to their financial well-being.  In contrast, people in the B or I quadrants (the right side) tend to seek financial freedom by investing in assets such as real estate or businesses.

Most of us start out in the E or S quadrants and never make it to the other side.  We are raised by wonderful parents who only want the best for us, and therefore teach us to seek financial security through a full-time job.  Having a full-time job is wonderful, especially if you have a wonderful family that depends on it to survive.  Let’s face it, even if you really want to quit your job and start focusing on becoming an investor or business owner, leaving a paycheck is a daunting thought and can be discouraging.

If you are truly serious about switching sides and creating assets to support your financial well-being, there couldn’t be a better time than now to give it a shot.  The great thing is that you don’t have to quit your job in order to make the switch.  Considering the current state of the economy and the real estate market, making the choice to take action now is smart. 

For three years I have been investing in rental real estate and highly suggest buying a small single- or multi-family property.  I recommend this because a small property is relatively easy to manage, and it’s can be easy to come up with a small downpayment.  More important, real estate prices are low and foreclosures are still soaring, which means a great deal for you!  Why wait and go to the supermarket tomorrow when you can buy your groceries for 50% off today, right?

If real estate is not your cup of tea, then you may also consider starting a part-time business.  In fact, this is my current focus, along with continuing to find undervalued real estate deals.  The great thing about starting a part-time business is that you don’t even have to start the business yourself.  If you look on the Internet, there are business brokers who market businesses for sale.  This can be a great opportunity for those who don’t have the time or effort to start from scratch.  Who knows – you just may be the person to take an average business and make it turn to gold! 

Network marketing is also a great way to switch quadrants.  A good network marketing company is based on a solid business model that has proven success.  This is good news for you because all you have to do is follow the business model.  Also, other members in the network take you in under their wing and help you become successful, even if you have only a limited amount of time.  I recently joined a network marketing organization called Vector Marketing, a distributing company of the famous Cutco brand of kitchen knives.  It was a great experience in that I never had to go far in order to find help.  I would highly recommend a network marketing company if you have no experience in running your own business.

Whatever route you decide to take in life, just make sure you’re doing what YOU want.  The economy is rough, and employers who are in financial distress will take any action necessary to survive, even if it means laying you off!  Depending on your field of work, this may never happen to you, but it IS HAPPENING to a lot of people.  If you are in this situation, just keep in mind that it could be an opportunity to change your life.

Back to Work?

Have you ever been self-employed, and after several months, made the choice to go back to work?  The reason I ask is because I’m contemplating returning to the work force, which I’m really scared to do after working for nine months on my own.  I feel like a child again, when the last few days of summer vacation are over and the new school year is approaching! 

I thought about some of the things I learned while being out of work for nine months.  You tend to learn alot about yourself when you’re trying to make it on your own.  I figured I would share some of these things with you, athough they may not necessarily be true in your world.  Some of these things may also seem trivial to some people, although I had to learn them the hard way:

• Making money is not about running around trying to find ways to make money!  Because I had no real plans after leaving work, I kept trying to find creative ways to make money which was not the long-term solution to my problem.  It’s better to focus on the one thing that you love to do most. 

 

• More often than not, you will need to spend some money in order to get any type of real business off the ground.  This is not a hard-core rule, but serious business owners spend money to get their business off the ground.

 

• Rental property is an awesome source of income!  However, it is vital to have at least one other source of income in order to live comfortably.  This lesson was true in my case because I only have enough property to pay the bills each month.  I had no extra money!  Another strong income source would have eliminated this problem.

 

• I could have saved most of my money from my job before quitting.  I have managed to get by for the past nine months without any job income, so I could have managed to save more income from my job when I worked.

 

• Buying single-family homes is only a short-term strategy.  Buying single-family rental property has created more work in terms of property management.  For example, I bought three single-family homes, which means I have to manage three roofs, cut three lawns, etc.  My long-term strategy will be to acquire multi-family property which is less management intensive.

Running the Numbers

When it comes to investing, a smart investor always uses numbers to guage the profitability before they take action.  Whether it’s buying a business, purchasing stock, or buying a commercial property, analyzing the deal is imperative for making the best decision.  We can sometimes get lucky on our investment if we don’t choose to run the numbers, but the odds aren’t in your favor.  This would be like going to the casino and expecting to win $5,000 (which could happen), but the reality is that your chances of losing money are much greater.  Don’t get me wrong, I love casinos!  But when it comes to investing, making the right choice can save you much pain in the long run.

Let’s start with a single-family rental property.  You’ve been roaming the streets for a few weeks and you finally see a house that stands out among the crowd.  It’s a 3 bedroom, 1 bathroom house located in a decent neighborhood where rents are averaging about $650-$700 for this type of property.  Let’s say that you agree to purchase the house at $40,000, which sounds like a good deal compared to others in the same area.  Also, let’s assume you put down 20% of the purchase price in cash, leaving an 80% loan (at 8% for 20 years) on the remaining amount of the purchase price.  Here’s one way of analyzing this one. 

Monthly Rental Income:                                 $650
Less: Vacancy (0% in this case)                          0
Gross Potential Income                                  $650

Less Expenses:

Insurance ($600/yr or $50/month)                    50
Taxes ($1,500/yr or $125/month)                   125
Maintenance                                                20
Reserves* ($1,200/yr)                                   100
    Total Expenses:                                    $295

Net Operating Income ($650 – $295)             $355

Less: Debt Service (which means your loan payment)  $268

Debt Service Coverage Ratio:                         1.32x

*Reserves are an estimated amount of cash set aside for larger repairs, such as replacing a furnace.

As you can see, this analysis takes all the monthly income from the property, subtracts the expenses, then compares it to the monthly loan payment.  This is how we arrive at the Debt Service Coverage Ratio (DSCR) shown at the bottom ($355/$268).  In this case, the property has a DSCR of 1.32x times, which means that the rents from the property are 32% higher than the actual loan payment.  This would be considered fairly good to most lending standards, who usually require a minimum DSCR of 1.20x on larger rental properties in order to stay within lending guidelines.

If you have any questions regarding this analysis, or have any likes/dislikes about this article or blog, please feel free to leave a comment.  I really want to make my blog better.  I can handle some constructive criticism!

Motivation: A New Perspective

I can remember when I first started working at Regions Bank as a personal banker in 2004.  In evaluating my overall performance, I would have been considered average among my co-workers.  However, when I wanted to try selling commission-based financial products such as fixed annuities, I suddenly took off in sales.  Everyone at the company in St. Louis knew who I was - they called me an ”animal” because I would insist upon selling a fixed annuity to all of my customers who had a maturing Certificate of Deposit.  After eight months of selling, I had reached my peak in sales and was #1 in fixed annuity sales in the region. 

Shortly after winning an award for my achievement, I began to slow down in sales.  Although it felt great to be on top, I began taking the job too seriously and lost interest fast.  I no longer had the fire and passion to sell at peak performance.  The reason I tell this story is because maybe you have had the same type of experience at your job, or even in your personal life when it comes to taking it to the next level. 

If this sounds like you, then you are among millions who feel the same way, including me.  You may think or feel, “I have to try twice as hard if I’m ever going to start losing weight, or start saving more money for my dream home.”  You may even create a plan to change your focus, only to find that after two months you have given up.  I, myself, am very guilty of this repetitive habit and I have problems giving my projects ample time to become something great. 

After working at Vector Marketing, I began meeting very successful people who were constantly motivated.  After attending a sales conference in Chicago, I recieved a free book that has already changed my life, called Perpectual Motivation by Dave Durand.  Dave is the Central Regional manager for Vector and has coached over 100,000 people on motivation.  He currently has a patent for his introduction of the Balander , a planner that combines balance in life and a calender.  I highly recommend at least taking a look at his product.   

Dave submits that motivation is not the same as effort, although we all tend to view it that way.  He claims that motivation is a result of living a balanced life in the following categories: Faith, Family, Financial Responsibility, Health, Social Contribution, and Eduation and Vocation.  By having the right balance of the above factors you will have the core motivation you need to succeed.  How’s that for a new perspective on motivation!!!  Personally, I think it’s awesome!  How many of us are lacking the balance in our lives to make us truly feel good about ourselves?  Most of us ignore the most important things in life such as spending time with our loved ones or going to church on a regular basis.  No wonder there’s so much hassle in becoming motivated! 

It is important to note that Dave doesn’t substitute a balanced life for hard work, but it is usually these components that motiated people possess in combination with hard work.  If you feel that life is stagnant for you, this can definitely be an eye opening book.  Although I’m not a totally changed person, I can guarantee that my focus has changed immensely. 

I’m interested in hearing about what you think about this perspective.  Please feel free to add your comments!

A Brief Stint in Network Marketing

Many of you may have heard of Vector Marketing, a company that is licensed to sell the top selling brand of knives in the United States, Cutco.  In an attempt to earn some extra cash during my journey as a real estate investor, a gave Vector a shot.  My brother had previously worked for the company, and I knew the product was good, so I thought to myself, “why not?” 

The first days of training were the best: I got doses of the most positive reinforcement I’ve ever recieved, something I didn’t get much of as a child.  My original intent was to work only a few hours per week, but I soon found myself wanting to work as hard as possible.  My division manager Mike Dawid (awesome guy) even gave me access to several motivational audio seminars, as well as books written by past Cutco reps and Robert Kiyosaki.  Ready to take on the world, I ended up selling $1,000 worth of Cutco in my first two days. 

After about a week and a half, I quit the Vector program.  I felt horrible for giving up on the team that was so inspiring to me.  It’s not that the business plan didn’t work, because I know it does.  If you want to make a few extra dollars selling Cutco, you definitely can if you’re dedicated.  It requires spending a lot of time with your division manager and constantly improving your sales skills.  This is a great business if you don’t have much money, and the promotions are there for those who want them. 

However, my original intent was to make a few extra dollars and focus more on my real estate business.  Vector was flexible with my schedule, but I was actually losing focus.  I knew that in order for me to be successful at Vector, it took a lot of dedication between office meetings and calling prospects. 

In addition, I learned that the real money wasn’t in the knives, but in recruiting.  If you work hard selling Cutco you have the opportunity to become a division manager, which focuses more on recruiting sales reps.  As a division manager, I’m speculating that one makes a percentage of sales off of the reps, in addition to other types of bonuses.  I imagine this is where the true money is made.  YES, YOU REALLY CAN MAKE MONEY WORKING FOR VECTOR!  Too many people quit right away because they think it won’t work! 

Vector requires that you invest a small amount of money for your demo kit and gas money, but this is true of any business. As for me, I didn’t have any extra money.  My money was invested in my real estate, and I’m hardly rich as of right now.  Therefore, I didn’t feel it appropriate to spend additional money trying to make it work. 

I also didn’t wan’t to build a business on a product that wasn’t mine – that’s the bottom line.  I had already experienced sales success when I worked in banking, and doing it all over again really didn’t seem that appealing, despite the large dose of enthusiasm and encouragement I received.  Personally, I would rather work hard to be the one who creates the original idea.  If you really want to be rich, this is truly how it is done.  If you come up with just one good idea, you could hire all the sales reps you want.  Then YOU get to keep the larger portion of the pie, not your division manager or regional manager. 

Again, selling Cutco is great work if you have the time and energy to become a division manager and sell the system, instead of remaining a sales rep.  In my case, my real estate business was most important to me and I would end up losing my properties if I didn’t stop spending money on gas and such.  Honestly, I didn’t really spend that much selling Cutco, but it was more than I could afford at the time. 

Overall, if you’re considering selling Cutco I would definitely recommend giving it a shot if you have time and a small amount of money.  It teaches you the reality of trying to promote a product without any help – you are responsible for your own success like any business!  That’s the beauty of it. 

Does anyone out there have any experience with Vector????

An Out-of-Job Experience

Have you ever contemplated leaving your job to start a business?  Trends are proving that working for life for an employer is an industrial age idea, and that working for one employer is even risky.  According to Free-Resume-Help.com, with the change in trends and the heartless layoffs, having all your eggs in the “employee” basket is the riskiest choice of all.  It’s those who are at least partially self-employed, those who have several sources of income, who will be positioned best to enjoy the benefits of the coming information age.

It’s easy to become emotional when seeing the above statement.  In fact, I would have felt defensive about that statement about 8 months ago when I was employed by a bank earning over 50K per year.  But regardless of our emotions, the fact remains that all of us are responsible for our own retirement and/or financial freedom, and working for someone else JUST ISN’T GOING TO MAKE US FINANCIALLY FREE.   

With that being said, I was fired from my job about 8 months ago.  At the time I didn’t feel it was fair and was angry at management for the way it was handled.  I was loyal to the company, and in a blink of an eye, my loyalty did not matter.  The funny thing is that after a week of freaking out about WHAT THE HELL AM I GOING TO DO, I really began to see that a new page was being turned in my life – I had an opportunity to do anything I wanted.  I felt like Kevin Spacey in American Beauty when he rebelled against his cheating wife – you don’t tell me what to do any more! 

Although realizing this opportunity is a great thing, a had realized the true responsibility at my hands.  I had some investment real estate generating cash each month, but I still needed more money to survive.  This means that I had to start creating ways to make money.  That is why I’m writing today – to share with you some of the ways I’m trying to build a business – ways to accumulate money in order to get by when you choose not to work for an hourly wage.

Over the next several days, I will be posting some of the small things I’m doing in order to generate some extra cash.  I would also like to hear about your experiences in trying to make it on your own.  How are you doing it?