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Vice President Stephen Davis gives us a brief overview of his career as a real estate investor and mentor.
“My name is Steve Davis, I’m Vice President of Lifestyles Unlimited. I’m a radio host for the Lifestyles Unlimited Real Estate Investor Radio Shows which are on across Texas and, of course, streaming nationwide and worldwide.
Before Lifestyles Unlimited
Before I got into real estate, I knew what I was doing wasn’t working. I remember putting my head in my hands after winning a national contest, after being the top club 8 out of the last 9 weeks… and going, “It doesn’t matter… I’m working 60 hours a week, I’m doing everything…”
And suddenly, it dawned on me: You’ve got to own something. You can not be an employee, I don’t care if you make a million dollars a year, you cannot be an employee and succeed.
No Money, Bad Credit
I grew up with such insecurities about money and such a limited understanding of it.
I started with bad credit and no money.
I like to see all our members succeed, but especially the ones that came in like me, with bad credit and no money… I can relate mostly to those people.
The “Ah-ha” Moment
I’m an “A-Type” personality, so I loved the buy… fix up… and sell. Those big chunks of money, it’s like drugs… Ooo, $10,000, $20,000, $40,000 in a month.
The people around me weren’t making 10, 20, 30…. but they all had $3,000, $4,000, $5,000 a month cashflow coming in for the rest of their lives… and I didn’t.
They had 20, 30 houses… assets paying themselves off… and I didn’t.
The “Ah-ha” moment for me was the first time I got a rent check. And it all gelled for me right them. This is it!
It’s the cashflow stupid, which was what Del had been telling me over and over again..
Overcoming the Ego
People have been given the wrong information for so long, that their ego is attached to it… all of their behavior is attached to it… and they think it’s all outside them… it’s the government, it’s the economy.
The day they walk in and go, “I’ve got bad credit because of decisions I’ve made. I don’t have any money because of decisions I’ve made.”
If we can get them to break past that what they’re doing is ineffective. It’s not that they’re stupid, it’s not that they’re lazy. It’s because they’ve been working on the wrong map… and working hard, and diligently, and intelligently on the wrong map.
Man, if I can get them past that, I can help people.
You see incredible changes… to the point where people come in here on a monthly basis… because this is an extreme example… but at least once a month someone comes in and says, “you guys changed my life.”
That, I love.
I feel like I know you already!
Looking good Steve! Great message too.
I’ve finally found another person that talks with their hands as much as I do! All jokes aside, you hit on a lot of great points! Thanks for doing this video, it’s great!
I like the music, my kudos to the producer.
Question, Are the bad credit and no money an indicator of a wrong map or at least a red flag? regardless of what the people are doing (real-state, self-employee, FTE, etc). I think the plan you guys have is good, but requires a life aligment or lifestyle change’s in terms of consumption, means, etc, “Ah-ha” is a moment and a process of changes too.
Thanks,
John
PS: From the Washingtong Post
“Poor? Pay Up.
Having Little Money Often Means No Car, No Washing Machine, No Checking Account And No Break From Fees and High Prices
Put it another way: The poorer you are, the more things cost. More in money, time, hassle, exhaustion, menace. This is a fact of life that reality television and magazines don’t often explain. ”
http://www.washingtonpost.com/wp-dyn/content/article/2009/05/17/AR2009051702053.html
I have been a member of Lifestyles since July of ‘08 and what you offer to members is awesome! I recently discovered your podcasts and I listen REGULARLY! I have 2 very young children so attending workshops is often difficult. Your podcasts have actually helped break my fear and I am now fearlessly shopping for a mortgage that meets my investing needs. Thank you for helping me to put my big rocks in first. PS- If you do read my comment you can bet I will be tuned in a few days later on my ipod!
Lauren
This is a asksteve@luinc.com comment. Thank you so much Lauren!
Sincerely,
Steve VP
How do we know your not Mel Tourmeau? Just kidding! Very sincere story Steve.
To John,
Yes. Bad credit and no money are indicators of the wrong map. I had to change my spending habits, credit habits and budgeting habits to move forward.
This is close to “A recession is the cure for bad business decisions.” Bad credit and no money is a cure for bad personal money decisions.
The foundation to any wealth is “The Richest Man in Babylon” by George Classon.
It is free in our Listener Kit.
Thanks,
Steve
How do the large numbers of foreclosures affect the values of other properties? For example, I found a house listed for half of 2008 CAD value. However, this subdivision has a large number of foreclosures. I feel the ARV is 50% higher than asking price, but I think it may appraise for lower because of the foreclosures.
Awesome video, Steve! I really think that your sincerity, knowledge and passion for what you do really shows in this video! =)
Anxious2Begin: the foreclosures are affecting the bank appraisals, but not the ARV’s. When you sell it, you will be selling it in good condition under normal circumstances; which is quite different than a foreclosure.
I watched Karen’s video. After 6 investments she’s only netting $1500.00? Doesn’t sound like much to me.
Dave,
Thanks for having the courage to ask what is on your mind.
Remember that Karen is not a money driven person. She is family, fitness, service and above all freedom. She is not trying to become as rich as Oprah. She want to be financially independent.
Let’s say she makes $80,000 at her job. After 25% taxes that is $60,000. She is trying to eliminate her need for this job at Lifestyles Unlimited. I hope she stays anyway. That is $5000 a month net.
Remember that we don’t pay tax on our rental income.
If after 6 months she has $1500, then do you see that in about 1.5 more years (even if she doesn’t speed up due to experience and confidence) she will have $6000 a month passive income? She is retired.
How much passive income do you have right now? How long have you worked 40 hours a week? If you are real young and have only worked a few years, ask yourself this question: Do I know anyone with $1500 a month cash flow outside their job?
Hope this helps and good luck. Read “Rich Dad, Poor Dad” by Robert Kiyosaki.
Thanks,
Steve
I have a house in the Austin area which I would like to downsize and get something smaller since my daughter is out of HS and in college. I’m stuck if I should rent my house out, sell it and then purchase a few properties? I have been listening to you on the am radio for the last month. Your mentoring programs . . . do you actually have a person or a group of individuals that will assist you with purchasing homes or is this strictly you doing it by reading books, listening to cds, and attending meetings? I have 3 shifts I work presently so having a life depending on what shift I am working can be difficult. I have been caught up also with layoffs 3 times as I am in the tech industry. I work at Apple right now so knock on wood they continue to do good but have no cash in the bank other then some 401ks that were also hit hard w/previous layoffs. Looking to invest but don’t know anything other then owning my house which I have for 12 years.