Wednesday, December 31, 2008

Property Virgins

Well I have made a clear decision of when and where I will be purchasing my first property (not my first home, first property) this week through some very careful calculations. I plan on waiting until Jan 19, 2010 (my 25th bday) to purchase a 6+ unit building in the Bronzeville neighborhood in Chicago. I plan to spend around $400,000-450,000 for the building with a 20% down payment which will be between $80,000-90,000, however my goal is to actually gross a minimum of $100,000 through some investments. I plan to start my investing on January 31st 2009 so that I give myself almost a full calendar to make the $100,000, which will require me to make $410 a day 5 days a week for 49 weeks. Seems crazy right? Well of course it does because many people don't even make 100,000 a year working in their daily jobs and I am planning to make it by doing nothing but investing. However the reality is that you could actually make a lot more than that if you have the money to invest and have a good grasp of where to invest your money. It goes back to the clear understanding that you need money to make money.

As for my building I plan on converting the two top rooms into on unit for my personal I know a few of you are thinking that may be a waste of money and I am losing out on the profits of that 5th unit by taking two for myself. I totally agree with you but here's my philosophy about business and life in general, if money is your sole motivator your life will be an empty and unfulfillable hunger forever. You need to enjoy life and for me to do this I need a big ass condo in my building lol. Plus here's the good thing about real estate...once I get to the point of my life when I want to buy house then I will just either rent that unit out as a bigger unit for more money or just convert it back to the 6 unit, viola lol! I will always have a good relationship with my tenants if they know that I am just a stones throw away from them, hell even when I get my house it won't be farther than a 10 minute drive since it will be in either the Bronzeville, Kenwood, or Oakland neighborhood. Landlords forget that these people are your "customers" and you need to have good "customer service" because you don't think these people will be telling other people how much of a great guy or dick head you are? Of course they will. So why not benefit from this word-of-mouth marketing and use it as your advantage to get your current "customers" to bring you new "customers" for future properties.

My plan will be to find a building that will either have the amenities that I am looking for (stone, hardwood, steel, and glass) and if it doesn't the price reflects that its a major renovation. For example if they building is $200,000 then I will invest $200,000-250,000 into renovations so that the building gets to the level that I am looking for. I want my first building to be perfect, so that I won't have to worry about having assing the job from the start. If I do it right the first time I won't have to go back and do patch work or bring it to the level that it should have started at. Reality is that your buildings condition will go down every year so if you start at 80% then by next year you are already at why not start at 100% (or even 120% if you have the funding) so that you are still in good shape by the end of the year or even 2-3 years? You will capitalize on your profit faster if you focus on the people rather than your numbers. You put in more now to make more later...its just that simple. Oh the other good thing about having a building besides the positive cash flow you are getting from rents is that you own the building so as long as the area is going up and gentrification is on track the value of your building is either staying the same or increasing. This means more money for you, there are really no lenders despite the market who wouldn't give you a reverse mortgage on your property, which means you can use your property to buy you more! The real estate game is so much fun aint it?

Tuesday, December 30, 2008

Community Chest: Credit Scores

So since I have decided to give some tips and insights on a range of since we such a positive financial tone in the country I figured we should start with the talking about credit. So I'm going to start with the basic info and get into the more advanced info. Your FICO score is broken down amongst a few factors that are calculated to come up with a score between 300-850 with the higher end of the spectrum being the best score and the lower end being the worst score. Your goal is to get onto the higher end and STAY THERE! At the bare minimum you want to have at least a 620-650, so if you aren't there you need to get a copy of your credit report and figure out what is on your report and see if there are any discrepancies or errors. Score Breakdown:
  • Payment History = 35%
  • Debt to Income Ratio = 30%
  • Length of Credit History = 15%
  • Types of Credit = 10%
  • Credit Inquires = 10%
Now with this breakdown it is important to understand a clear understanding of what happens when someone or you "run your credit report" because there are a lot of misunderstandings in this process. When you run your credit score its called a "soft pull" which means that it does not affect your credit inquiry percentage, you can do as many as soft pulls as you want. When a creditor runs your report they are doing a "hard pull" where it does affect your credit inquiry percentage so be careful to only do a hard pull when you absolutely need to, especially during times like these when lenders and creditors are being more stringent on their guidelines.

Types of Credit: This is basically the different types of credit accounts you can have, such as mortgages, auto loans, personal loans, gas credit cards, department store credit cards, consumer credit cards, and charge cards. You don't need to have all of these types however you do want to have a diverse credit profile so that they can see that you can handle them. Remember though that even if you get approved for a card that if they do a hard pull it goes against your credit inquiries so do this wisely.

Debt to Income Ratio: Ok this is the thing people have the biggest problem with so I am gonna get as clear as I can be. You want to have your Debt to Income Ratio be between 20-30% and BELOW!!! You should work to keep it at 30, then 25, 20, 15, 10, etc...You don't want it at 0% per say because then that will show no activity on your card and you run the risk of your account being closed. So if you have a credit card with a $5000 limit you should stop using it when you hit $1500 (I know easier said then done). The best thing to do is to pay off the balance completely each month, because you are still using the card but not incurring any interest as well as having a D to I ratio below 30%.

Payment History: This is an obvious thing here...bad accounts, collections, charge offs, etc.. won't be removed from your credit report for 7 years so don't let the accounts get to that point. Stop ignoring those creditor calls and talk to them..yes they are going to be assholes to you but I mean can you blame them? If someone owed you money you would be hassling them too so don't make it seem like you are innocent, just try to work out a payment plan with them so that it doesn't go to collections or charged off. In addition to that when you are able to pay ask them for a "Good Faith Adjustment" which basically removes the 30day , 60day, 90day or 120day late code that they are indicating on your report. Not everyone will do it but it doesn't hurt to ask, try and use it as bargaining power. This goes double for if you decided to pay off a bad debt completely before you pay it off make sure to ask that it is removed completely from your credit report and that you want a letter on their company letterhead stating to this effect.

Another tip that I want to give is that having higher limits on your cards shows other lenders that lenders feel that you are less of a risk which is why they are increasing your credit or giving you a large limit. Its very good to get limit increases so you should always accept these because it increases the overall amount that have available as credit (so you have more leverage when computing that Debt to Income Ratio). There are many tricks you can do to get credit limit increases and I am going to tell you a few that I know of that, and I have successfully used. Ok first off when you get your card in the mail immediately call and ask to cancel the card..I know sounds crazy right?! Wrong creditors want your business otherwise they would have denied your ass for the card in the first place, so when you ask to have your card cancel tell them that they opening limit that they are offering you is insulting and that if they don't immediately increase your limit to cancel the card. DONT ALLOW THEM TO RUN YOUR CREDIT!

They usually will say "Ok Mr. Forde lets see what we can do about that, may I run your credit to see what we have available for you?" Say hell NO! The reason for this is because they will simply give you same info and limit you got when you applied for the card. Say that if they can't do it now to transfer you to an "account specialists" or "account manager" who will treat you like you piss gold and diamonds. They will immediately be happy to increase your limit, waive or discount annual fees, and a handjob if they could reach through the damn phone. After you get what you want politely say thanks and have a nice day. Make sure to use the card for a good amount of the month and make sure to pay it off completely!

Then in either that following month or within the next 2-3 months call back and request the same thing, however here's the difference in your script. There's a good chance that they will deny and say your account is too new or that you just got a credit limit increase, then you go on to say well you were preapproved for a [that card's competitor] for [the amount you want your card increased to]. For example if I had a current limit of $1000 and wanted a increase to $1500 on a Mastercard, I would say "Well Visa preapproved me for a card with a $2000 limit, with no annual fee, and 2% cash back, I really am happy with my card but if you can't even at least raise my limit to a mere $1500 I will have to go with the Visa and cancel my card immediately." This will scare them because you not only use your card, but you also pay your bills off completely so they don't want to lose a great customer like you so they will comply with this. The only thing they might say is that you should just wait 3 more months because you are due for a scheduled account review that will automatically increase your limit if you're qualified, say you can't wait that long because you need to make a few major purchases over the next few months.

There are many more little tricks that I will reveal to you all in my future posts. So give this info a read and try it tonight on your cards if you want and let me know how it goes for you all. If you have any questions or have a detailed question about a specific situation I will do my best to help out. Hope this info is helpful to you all.

...Simply the funniest shit ever.

So I know I said I would dedicate this blog to more info than nonsense but this shit is hilarious.

Community Chest & Chance Cards

So while chatting with my best friend B* I decided that I am going to actually make this blog be somewhat useful with the Kris tip of the day lol...fuck you all that are now laughing or making any comments lmao I hate you all lol...No but I'm serious, through all my research and reading I have been doing and still do kinda keeps me abreast (lol breast...) of alot of good information that you may find useful, from all kinds of different topics from finances, cars, real estate, credit, electronics, fashion & food/drinks. SO with that being said everyday I will give some bit of information that will be categorized as either a Chance Card or a Community Chest Card, gotta stay in monopoly theme right? Now don't get me wrong I am far from a professional on any of the topics that I will be discussing, however all of the information that I will provided will have been not only researched thoroughly but tested and tried first hand by myself to make sure that its actually accurate.

If you happen to try anything I say and it works for you or even doesn't work for please make comments so we can figure out what went wrong or right. Also if you are checking out my blog alot please make sure to become a follower so I can see exactly how many people I have tuning in lol.

Monday, December 29, 2008

Poor Mans Black Card

So while browsing one my favorite sites to find new shit Uncrate (ladies check out Outblush but I warn you its a bit stereotypical sexist), I happened to read the info on the Visa Black Card...well I thought this shit was absolutely hilarious. Read the description:

"Don't qualify for a Centurion Card? Maybe the Visa Black Card ($495 annual fee) is a little more your style. Made with carbon graphite, the exclusive card comes with personalized assistance from a 24-hour concierge service, "luxury gifts," access to the Priority Pass airport VIP lounge program, and a high-end rewards program. Membership is said to be limited to only 1% of U.S. residents, so get that credit rating up. "

I will say though from handling a black card the black card still seems to be better the option due to the fact that the shit is made of actual metal not plastic. The really funny thing about a black card is that you can barely get that shit to swipe correctly because the shit is so much thicker than a normal card. Good luck trying to get that bitch to work at a gas station...which is ironic you have no spending limit but you can't get the shit to work lol, so your ass is on stuck if you care runs out of gas and you make it to a station but that big ass card isn't fitting in the card reader and its all you have on you...nice job Amex. Then you got Visa's ole wannabe Amex when I grow up face ass trying to come with something new but the marketing department couldn't come up with some more clever than the "Visa Black Card" ...shit you might as well call it "Black Card Jr." or "Semi-Balling Centurion Card"...I dunno anything is better than what they came up with. They should have talked to my man over at the infomercials that came up with the "Don't wait to buy Gold [brief pause], Buy Gold and Wait..." That has to be the hottest shit I have heard all year, you just had to see the sheer satisfaction on this dude's face when he said that shit, he was so pleased with himself lol.

Anyway tho...if you aren't quite Bow Wow balling...(yea he definitely shitted on everyone without one because he said he's under 21 with a black card...well you know what Bow are also under 121 lbs you midget malnourished cockface) you can get the 2nd's best, the Visa Black Card, lol. In the words of a genius and hilarious marketing strategy by Burger King with the Whooper Virgins, "Congratulations McDonalds you got 2nd Place."

Sunday, December 28, 2008

Photo Shoot

Sunny day and nice weather is the perfect combination to have a photo shoot of my favorite place in Champaign. This is where I want to start my Empire...this building is diamond in the rough of this city, nestled in the industrial district of the city. Abandoned and neglected this building has definitely seen better days but with a little imagination and creativity we can revive back to its former glory and beyond. This is going to be ground zero for our the future takeover as well as the personal residence for this city so its going to be crazy...check the proposed renovations below....

Nowhere in the entire city is there anything like this...well maybe the Champaign Public Library that they just built...funny thing their ideas were exactly the same as mine (no I didn't steal their shit I have proof I had my shit before the library was even built)...but it shows that the city is moving a more modern direction as far as architecture goes. The Chicago industrial style of architecture with brick, steel, glass, and wood (bamboo for us though) is that hottest shit to me. I have always been into the old style of a place like with the brick exposed and the rustic look...distressed...antique'ish lol.

WTF is Vanilla Soy?!?

This is a random excerpt but I had to write something about it since those who know me know how much I love milk (Red Top...yes..the Vitamin D!)...I have accepted that some people (some crazy people) think that the Red Top is too "thick" and have been drinking 2% or 1% milk, hell some people even drink skim milk (I tried some a few days ago...wasn't as bad as I thought). At the end of the day its still milk...its just like putting water in antifreeze to break down the concentration before you put it in your cooling system for you car, with the Red Top being the highest concentration of glorious milk. However, during a conversation with a particularly intriguing lady (for numerous hilarious reasons) she informed me that she didn't drink milk but had vanilla soy with her cereal. WTF is Vanilla Soy? That was my question, so I had to find out (mostly because she went idle on my ass lol) and then I found this nonsense.

"The wholesome flavor of vanilla adds just the right touch of sweetness, sure to tempt any taste bud." my question remains...When did milk become the devil? I mean wtf...i grew up on milk and you had to drink milk so you could be big and strong lol. Now we got this shit. I mean milk is up there with heroin on the streets, where you gotta find a dealer to get that "good shit." What is the world coming to when you can't even have a cold glass of milk anymore? We will see what you soy lovers are saying when you get older and you have a lack of calcium and have weak as bones and teeth. Gonna be in the crib trying to eat one of the Worther's Originals hard candy and your teeth are just gonna fall out...and ima be there with my glass of milk and my hard candy with a smile on my face and twinkle in my eye.

The Daily Sacrifice to be Great...Sleep (zzzZZZzzz)

This is a sacrifice that I have realized is a must for me to reach the level of greatness that I am capable of attaining and that everyone has the ability to capture if they are willing to give up some of the pleasure in life, namely sleep. I have trained my body to be able to function at 110% on only 2-4 hours of sleep, so that I can maximize my efforts and my research in future business endeavors. It is because of things like this that convinces and constantly reassures me that my efforts will bear fruit and not just a one time sustaining effect but an everlasting nutrition for many generations. All I need is a strong internet connection, some good music (preferably Jazz or R&B), something cool to drink, a good pen (Uniball Fine Tip Pen, Pilot G2-10, or Sharpie Ultra Fine Point Permanent Marker), sturdy notebook, and quiet fan or cool breeze blowing.

I know that at the end of the day I will simply look back at these sacrifices as mere steps to securing my future, just as a professional athlete looks at the countless hours spent in practice perfecting their skills. Along with this ideal I simply just remember my favorite quote and the understanding that my company was built upon:
"Entrepreneurship is living a few years of your life like most people won't, so that you can spend the rest of your life like most people can't."

Saturday, December 27, 2008

Money...the necessary Evil

Well in my boredom and need to get my ideas on paper I decided to start a blog to just keep track of my thoughts and ideas of world domination lol...well maybe not world domination but at least some type of domination lol. I was talking with a good buddy of mine, Chuck, and we were discussing why we do what we do and came to a great understanding about money. Money is not evil!...the love of money...well now that may be evil...and if it is evil it is a necessary evil. I mean people always bitch and complain about saying material things are not necessary to be happy or you shouldnt complain about what you don't have but mostly these are people who are usually paid out the ass...for example T.I. has a song where he starts off by saying "you should stop talking about what you ain't got, and be happy for what you got."...Fuck you T.I. I bet you weren't saying that when you buck o' five weighing ass was on the block trying to get that record deal.

I dunno I just hate when rich people say money isn't damn right its not becaus you have it lol...tell a bum money isn't everything and let me know how that goes for you...after you wake up after being fucked up, robbed and hopefully not raped by a group of angry homeless people who wanted to prove a point. But I am rambling lol. The reason I work as hard as I do is to effect change...Sorry Mr. Obama not trying to steal you fire here lol. Seriously though thats why I work as hard as I do...I would be lying if I didn't say money wasn't a motivator but its only because money is vital step to leading me to things/places I am trying to reach. For example I can't walk into the BMW dealership and say "Hey Mr. Salesman I am a really nice guy and I am nice to others, so with that being said I will take the M5 in black with all the options for the free." I need money to get that lovely you may ask do you really need a do you really NEED to eat steak for dinner, your ass could go out and kill a squirrel and eat that shit. The point is be weary of giving advice or making a point of criticism that makes you a hypocrit because deep down inside someone wants to slap the shit outta you and with enough liquid courage, one day they might just do it.