Financial Myth-Conceptions … …  Part I - Ron Nawrocki - Dru Bacon
Summary of last seminar (H.L.Quist) <ul><li>Which will do well & which poorly: </li></ul><ul><li>Cash? </li></ul><ul><li>B...
The Boldest Future Forecast … <ul><li>…  in America </li></ul><ul><li>The 3-Year Target </li></ul><ul><li>Equities Reach 2...
Have all the bubbles burst? <ul><li>NO ! </li></ul><ul><li>Bond prices increased dramatically since Nov. 2008 </li></ul><u...
Investment Disclaimer <ul><li>Nothing presented in this financial education seminar shall constitute the provision of inve...
Who is Ron Nawrocki? <ul><li>Phoenix resident  since 2007 </li></ul><ul><li>Lived & worked in Europe from 1994 - 2007 </li...
Other Sources … <ul><li>Great Books  </li></ul><ul><li>Highly recommended reading </li></ul><ul><li>More Important to  imp...
My Personal Challenge … <ul><li>Expose each of you to  at least 2 things  you did not know before this session </li></ul><...
Conventional wisdom … <ul><li>The year 1450 … </li></ul><ul><li>The world is flat </li></ul><ul><li>Everyone knows it …  <...
Conventional wisdom … <ul><li>The year 1865 … </li></ul><ul><li>Blacks aren’t smart enough to vote </li></ul>MYTH
Conventional wisdom … <ul><li>The year 1911 … </li></ul><ul><li>With the double hull and state-of-the-art design … </li></...
Each of us have a comfort zone … <ul><li>Time now for  some exercises  to get us ready to leave that comfort zone </li></u...
Conventional wisdom …   <ul><li>The year 2005 … </li></ul><ul><li>Invest with big name gurus with high returns </li></ul><...
Reality on gurus with high returns … <ul><li>Some are crooks  </li></ul><ul><li>Know who you’re dealing with </li></ul><ul...
Conventional wisdom …   in 2009 <ul><li>Your home is one of your best investments </li></ul>MYTH
Reality about your home … <ul><li>Rich Dad – Poor Dad: </li></ul><ul><ul><li>Your home is  NOT  an investment </li></ul></...
Conventional wisdom …   in 2009 <ul><li>The best way to pay off your home early is make extra principal payments </li></ul...
Reality about paying down mortgage <ul><li>No method of paying down mortgage makes sense </li></ul><ul><li>Mortgage intere...
Conventional wisdom …   in 2009 <ul><li>If you pay on time, or make extra principal payments … </li></ul><ul><li>In time o...
Reality about times of need <ul><li>When you need the money you often do not have the income to borrow  </li></ul><ul><ul>...
Evaluating any Investment … <ul><li>Liquidity </li></ul><ul><li>Safety </li></ul><ul><li>Rate of Return </li></ul><ul><li>...
Conventional wisdom …   in 2009 <ul><li>Home Equity is Liquid </li></ul><ul><li>aka the $150,000 mistake </li></ul>MYTH
Reality about equity liquidity <ul><li>When you need it most, it may not be available </li></ul><ul><li>2009: Equity is do...
Conventional wisdom …   in 2009 <ul><li>Paying down principal decreases chance of foreclosure </li></ul>MYTH
Reality about chance of foreclosure <ul><li>Home equity is not liquid </li></ul><ul><li>If I banker has a choice of proper...
Conventional wisdom …   in 2009 <ul><li>Equity in your home is safer than burying it in a can in your backyard </li></ul>M...
Reality about safety <ul><li>The longer you’re in your home the safer your banker feels </li></ul><ul><ul><li>Either you p...
Conventional wisdom …   in 2009 <ul><li>Top 3 factors in Real Estate: </li></ul><ul><li>Location </li></ul><ul><li>Locatio...
Reality of location <ul><li>For personal home </li></ul><ul><ul><li>Very important – why pay less and be unhappy </li></ul...
Time for a story …  <ul><li>The Thanksgiving Turkey Story </li></ul><ul><li>True Story </li></ul><ul><li>Moral:  Think & a...
Conventional wisdom …   in 2009 <ul><li>Always payoff your home as soon as you can </li></ul><ul><li>Celebrate with a mort...
Reality of paying off your home … <ul><li>Step 1: Think & ask like a kid </li></ul><ul><li>Why? </li></ul><ul><ul><li>Gran...
Reality of paying off your home … <ul><li>Bottom-line: most people do  NOT  know why …  but they share that “wisdom” </li>...
What did already Paris Hilton know? <ul><li>Why the Hilton’s survived the depression  </li></ul><ul><li>Hotel Industry was...
Conventional wisdom …   in 2009 <ul><li>There’s no chance of foreclosure if your home is paid off </li></ul>MYTH
Reality on paid off home … <ul><li>What if you’re in ill health for a while? </li></ul><ul><li>Your kids help take care of...
Conventional wisdom …   in 2009 <ul><li>The Equity in your home earns a decent return </li></ul>MYTH
Mortgage examples <ul><ul><li>None   80% 100% </li></ul></ul><ul><li>Home Value  $200k $200k $200k </li></ul><ul><li>Mortg...
15% Appreciation <ul><ul><li>None   80% 100% </li></ul></ul><ul><li>Home Value $200k $200k $200k </li></ul><ul><li>Mortgag...
15% Decrease <ul><ul><li>None   80% 100% </li></ul></ul><ul><li>Home Value $200k $200k $200k </li></ul><ul><li>Mortgage   ...
Reality of return on home equity … <ul><li>Gain or Loss is the same!  </li></ul><ul><ul><li>Regardless of equity or mortga...
Conventional wisdom …   in 2009 <ul><li>Mortgage interest - expense that should be eliminated as soon as possible   </li><...
Reality on mortgage interest … <ul><li>Eliminating mortgage interest removes your best partner from accumulating wealth – ...
Time for a story … <ul><li>A multi-millionaire – and Investor in B.I.Solutions Corp. </li></ul><ul><li>Bought a home a few...
The Business <ul><li>B.I.Solutions Corp. - 2 Divisions … </li></ul><ul><li>Buying Solutions  – Home buyers – who can’t qua...
1. Fixed Rate, guaranteed <ul><li>Monthly  interest checks, $10,000 min. … </li></ul><ul><li>6 mo. B.I. “CD” – 6%  </li></...
4 Things you can do with your money <ul><li>Spend it </li></ul><ul><li>Lend it (IGA) </li></ul><ul><li>Invest to own somet...
3 Types of people … those who <ul><li>Pay interest  </li></ul><ul><li>Earn interest </li></ul><ul><li>Pay interest to earn...
Conventional wisdom …   in 2009 <ul><li>All debt is bad </li></ul><ul><li>Credit Cards the worst </li></ul>MYTH
Reality on credit cards … <ul><li>Do you ever get 0% offers from credit cards? </li></ul><ul><ul><li>What do you do with t...
Mortgage invested in 3 year note NOTE: Loan is tax free money! $ 2,400 $11,200 $ 8,800 Annually $  200 $  933 $  733 Month...
Mortgage split into 2 investments NOTE: Many options on Higher return investments 21.4% 78.6% Split $  6,848 $  571 20% $3...
Common knowledge <ul><li>Green Investments are for “Tree Huggers” </li></ul><ul><li>They don’t really earn any return </li...
Who is Dru Bacon? <ul><li>Va Tech: Chemical Engineer </li></ul><ul><li>Registered Professional Engineer </li></ul><ul><li>...
Why Hold this Seminar?  <ul><li>B.I.Solutions Corp. is a group of Real Estate Investors </li></ul><ul><li>Our portfolio gr...
Decision Time … <ul><li>If you were in this seminar in 2005  … </li></ul><ul><ul><li>What would you have done? </li></ul><...
Contact <ul><li>Ron Nawrocki (The Ronald) </li></ul><ul><li>B.I.Solutions Corp. </li></ul><ul><li>3971 N Village St </li><...
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Financial Myth-Conceptions Part 1

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Schools don't have courses in personal finance - so we rely on parents, friends, aunts and uncles for advice. The problem is they don't know much either ... and many things we learned are Myths!

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Financial Myth-Conceptions Part 1

  1. 1. Financial Myth-Conceptions … … Part I - Ron Nawrocki - Dru Bacon
  2. 2. Summary of last seminar (H.L.Quist) <ul><li>Which will do well & which poorly: </li></ul><ul><li>Cash? </li></ul><ul><li>Bonds? </li></ul><ul><li>Stocks? </li></ul><ul><li>Commodities? </li></ul><ul><li>Real Estate? </li></ul><ul><li>Should I use: </li></ul><ul><li>Fixed Rate Loans? </li></ul><ul><li>Variable Rate Loans? </li></ul>Poorly Awful Great Great Great Yes No
  3. 3. The Boldest Future Forecast … <ul><li>… in America </li></ul><ul><li>The 3-Year Target </li></ul><ul><li>Equities Reach 2007 High </li></ul><ul><li>Real Estate in Phoenix Reaches 2007 High </li></ul><ul><li>Commodities Approach 2008 High </li></ul>Get Ready for the coming Inflationary BOOM!
  4. 4. Have all the bubbles burst? <ul><li>NO ! </li></ul><ul><li>Bond prices increased dramatically since Nov. 2008 </li></ul><ul><li>Interest rates have no where to go but up </li></ul><ul><li>Expect bond bubble to burst by mid year </li></ul>Bond Bubble about to Burst!
  5. 5. Investment Disclaimer <ul><li>Nothing presented in this financial education seminar shall constitute the provision of investment advice by the presenters or any company sponsoring this seminar, and nothing provided or stated in the seminar should be interpreted as such. </li></ul><ul><li>In addition to and not in limitation of the foregoing disclaimer, the sponsors will not provide investment advice regarding any specific security or fund during this financial education seminar and nothing should be interpreted as such. No specific recommendations for the purchase or sale of any particular investment shall be deemed given to any attendees of this financial education seminar, and the mention of any particular security or investment is for example only. </li></ul>
  6. 6. Who is Ron Nawrocki? <ul><li>Phoenix resident since 2007 </li></ul><ul><li>Lived & worked in Europe from 1994 - 2007 </li></ul><ul><li>Cornell Univ. Engineer and MBA in Finance </li></ul><ul><li>Manager at Xerox, Scott Paper, Bell Atlantic </li></ul><ul><li>CFO at Pepsi, Hortex, Pioneer Investments, McLane </li></ul><ul><li>Rotarian, Toastmaster, Who’s Who of Entrepreneurs, AZREIA, SW Valley Chamber, CrimShield, BBB </li></ul><ul><li>Author – “Investor Insights” in Hungary & Poland </li></ul><ul><li>Investor – 30 years </li></ul><ul><li>Full-time investor since 2001 </li></ul>
  7. 7. Other Sources … <ul><li>Great Books </li></ul><ul><li>Highly recommended reading </li></ul><ul><li>More Important to implement the ideas </li></ul>
  8. 8. My Personal Challenge … <ul><li>Expose each of you to at least 2 things you did not know before this session </li></ul><ul><li>If I fail … </li></ul><ul><li>Double your money back </li></ul><ul><li>PLUS Free admission to our next 3 seminars! </li></ul>Have some fun while picking up some ideas …
  9. 9. Conventional wisdom … <ul><li>The year 1450 … </li></ul><ul><li>The world is flat </li></ul><ul><li>Everyone knows it … </li></ul><ul><li>Except Crazy Chris </li></ul>MYTH
  10. 10. Conventional wisdom … <ul><li>The year 1865 … </li></ul><ul><li>Blacks aren’t smart enough to vote </li></ul>MYTH
  11. 11. Conventional wisdom … <ul><li>The year 1911 … </li></ul><ul><li>With the double hull and state-of-the-art design … </li></ul><ul><li>The Titanic is “unsinkable” </li></ul>MYTH
  12. 12. Each of us have a comfort zone … <ul><li>Time now for some exercises to get us ready to leave that comfort zone </li></ul><ul><li>There are two types of people … you can tell by which thumb was on top … </li></ul><ul><li>Those that like money </li></ul><ul><li>Those that like sex ! </li></ul>You need to figure which is which …
  13. 13. Conventional wisdom … <ul><li>The year 2005 … </li></ul><ul><li>Invest with big name gurus with high returns </li></ul><ul><li>You can’t get ahead with guaranteed fixed return investments </li></ul>MYTH
  14. 14. Reality on gurus with high returns … <ul><li>Some are crooks </li></ul><ul><li>Know who you’re dealing with </li></ul><ul><li>Read what they’re investing in </li></ul>
  15. 15. Conventional wisdom … in 2009 <ul><li>Your home is one of your best investments </li></ul>MYTH
  16. 16. Reality about your home … <ul><li>Rich Dad – Poor Dad: </li></ul><ul><ul><li>Your home is NOT an investment </li></ul></ul><ul><ul><li>Only IGA’s (Income Generating Assets) are investments </li></ul></ul><ul><li>How much does your home pay you each month? </li></ul><ul><ul><li>You pay for your home each month for utilities, taxes, etc. </li></ul></ul><ul><li>In Phoenix long-term appreciation has averaged 5.9% </li></ul><ul><li>Nationally long-term appreciation has averaged 4% </li></ul>Your home is not an investment!
  17. 17. Conventional wisdom … in 2009 <ul><li>The best way to pay off your home early is make extra principal payments </li></ul><ul><li>aka The $25,000 mistake </li></ul>MYTH
  18. 18. Reality about paying down mortgage <ul><li>No method of paying down mortgage makes sense </li></ul><ul><li>Mortgage interest is one of your best non-business tax deductions </li></ul><ul><li>Extend the time to become debt free </li></ul><ul><li>NOTE: your home is paid off if you have the amount of the mortgage available in liquid, safe assets </li></ul><ul><li>Increases the risk of foreclosure </li></ul><ul><li>Could lose all of your equity ! </li></ul>Add $25k to net worth by Investing an additional amount each month – rather than paying more to your banker!
  19. 19. Conventional wisdom … in 2009 <ul><li>If you pay on time, or make extra principal payments … </li></ul><ul><li>In time of need (job loss, disability - financial or physical , etc) your banker will lend against your equity </li></ul>MYTH
  20. 20. Reality about times of need <ul><li>When you need the money you often do not have the income to borrow </li></ul><ul><ul><li>even though you may have equity </li></ul></ul><ul><li>equity in your home can drop when you need it the most </li></ul><ul><ul><li>Just ask 2 million families who recently foreclosed </li></ul></ul>Best time to get a loan – when you don’t need it !
  21. 21. Evaluating any Investment … <ul><li>Liquidity </li></ul><ul><li>Safety </li></ul><ul><li>Rate of Return </li></ul><ul><li>Tax Consequences </li></ul><ul><li>Other: Social benefit </li></ul>Will Rogers: &quot;I am more concerned about the return of my money, rather than the return on my money”
  22. 22. Conventional wisdom … in 2009 <ul><li>Home Equity is Liquid </li></ul><ul><li>aka the $150,000 mistake </li></ul>MYTH
  23. 23. Reality about equity liquidity <ul><li>When you need it most, it may not be available </li></ul><ul><li>2009: Equity is down, so is your income from investments </li></ul><ul><li>The $150,000 mistake … </li></ul><ul><ul><li>1978 couple built 6,400 sf dream home for $150,000 … scheduled to be in Better Homes and Gardens </li></ul></ul><ul><ul><li>By 1982 appraised for nearly $300,000 … a profit of $150k </li></ul></ul><ul><ul><li>Life happened – they had to start selling assets to pay mortgage </li></ul></ul><ul><ul><li>No one would lend to them … they could not sell their home </li></ul></ul><ul><ul><li>They lost their dream home and were billed for taxes on short-sale </li></ul></ul><ul><ul><li>Douglas Andrew knows – he was the one who lost his home </li></ul></ul>Home Equity fails the 1st test of investments - Liquidity!
  24. 24. Conventional wisdom … in 2009 <ul><li>Paying down principal decreases chance of foreclosure </li></ul>MYTH
  25. 25. Reality about chance of foreclosure <ul><li>Home equity is not liquid </li></ul><ul><li>If I banker has a choice of properties to foreclose .. </li></ul><ul><ul><li>$200,000 value with $100,000 mortgage </li></ul></ul><ul><ul><li>$200,000 value with $300,000 mortgage </li></ul></ul><ul><ul><li>he’ll foreclose first on the one he can recover his money </li></ul></ul><ul><li>Golden rule of finance: &quot;he who has the gold, makes the rules&quot; </li></ul><ul><ul><li>Who should have the gold – you or your banker? </li></ul></ul><ul><li>Paying down principal decreases your liquidity … </li></ul>Paying down principal increases chance of foreclosure!
  26. 26. Conventional wisdom … in 2009 <ul><li>Equity in your home is safer than burying it in a can in your backyard </li></ul>MYTH
  27. 27. Reality about safety <ul><li>The longer you’re in your home the safer your banker feels </li></ul><ul><ul><li>Either you paid down principal, or </li></ul></ul><ul><ul><li>Your home increased in value (or both) </li></ul></ul><ul><li>As your banker’s margin of safety rises – yours goes down </li></ul><ul><ul><li>he’ll foreclose first on the one he can recover his money </li></ul></ul><ul><li>Home equity - is subject to market forces you don’t control and thus is not safe </li></ul><ul><li>Burying $ in a can in your backyard is safer than equity in your home (e.g. 2007 & 2008) … as long as </li></ul><ul><ul><li>You remember where you buried it </li></ul></ul><ul><ul><li>Your spouse doesn't know where you buried it </li></ul></ul><ul><ul><li>Your neighbor doesn’t buy a metal detector ! </li></ul></ul>Home Equity fails the 2nd test of investments - Safety!
  28. 28. Conventional wisdom … in 2009 <ul><li>Top 3 factors in Real Estate: </li></ul><ul><li>Location </li></ul><ul><li>Location </li></ul><ul><li>Location </li></ul>Part MYTH
  29. 29. Reality of location <ul><li>For personal home </li></ul><ul><ul><li>Very important – why pay less and be unhappy </li></ul></ul><ul><li>For Investment (ref. H.L. Quist) </li></ul><ul><ul><li>NOT most important </li></ul></ul><ul><ul><li>TIMING is more important </li></ul></ul><ul><li>For preserving safety of your investment </li></ul><ul><ul><li>1+ 2 + 3 = Location of your Equity (D.R. Andrew) </li></ul></ul>
  30. 30. Time for a story … <ul><li>The Thanksgiving Turkey Story </li></ul><ul><li>True Story </li></ul><ul><li>Moral: Think & ask like a kid </li></ul>
  31. 31. Conventional wisdom … in 2009 <ul><li>Always payoff your home as soon as you can </li></ul><ul><li>Celebrate with a mortgage burning party </li></ul>MYTH
  32. 32. Reality of paying off your home … <ul><li>Step 1: Think & ask like a kid </li></ul><ul><li>Why? </li></ul><ul><ul><li>Grandpa lost his home in the Great Depression </li></ul></ul><ul><li>Step 2: Think & ask like a kid </li></ul><ul><li>Why? </li></ul><ul><ul><li>He had a mortgage </li></ul></ul><ul><li>Why did they take his home? </li></ul><ul><ul><li>I don’t know … I guess he couldn’t pay </li></ul></ul>That’s advice? – based on “I don’t know” but …
  33. 33. Reality of paying off your home … <ul><li>Bottom-line: most people do NOT know why … but they share that “wisdom” </li></ul><ul><li>Conventional wisdom … more conventional, less wisdom </li></ul><ul><li>Most people lost homes due to their mortgage being called when banks needed money! </li></ul><ul><li>Is your mortgage callable? </li></ul><ul><li>Why are you worried about the bank taking it away? </li></ul><ul><li>What if you have that amount in safe, liquid assets? </li></ul>Why do media say today is like the Great Depression?
  34. 34. What did already Paris Hilton know? <ul><li>Why the Hilton’s survived the depression </li></ul><ul><li>Hotel Industry was doing very poorly … </li></ul><ul><li>But banks did not foreclose on their properties despite property prices plummeting </li></ul><ul><li>Their mortgages were callable like most others </li></ul><ul><li>But they were mortgaged to the hilt ! </li></ul><ul><li>Banks don’t want properties they lose money on </li></ul>Where does “Mortgaged to the Hilt” come from?
  35. 35. Conventional wisdom … in 2009 <ul><li>There’s no chance of foreclosure if your home is paid off </li></ul>MYTH
  36. 36. Reality on paid off home … <ul><li>What if you’re in ill health for a while? </li></ul><ul><li>Your kids help take care of your finances … </li></ul><ul><li>How many of your kids have paid off home? </li></ul><ul><li>Do they know that you have a property tax bill that needs to be paid since it’s not escrowed? </li></ul><ul><li>If not - investors (quietly) buy the tax liens … </li></ul><ul><li>Later foreclose on your property … for a great profit </li></ul>We can earn 16% buying AZ tax liens … and prove it !
  37. 37. Conventional wisdom … in 2009 <ul><li>The Equity in your home earns a decent return </li></ul>MYTH
  38. 38. Mortgage examples <ul><ul><li>None 80% 100% </li></ul></ul><ul><li>Home Value $200k $200k $200k </li></ul><ul><li>Mortgage 0 160k 200k </li></ul><ul><li>Equity $200k $ 40k $ 0 </li></ul><ul><li>$ to Invest $0 $160k $200k </li></ul><ul><li>What if Home Values go up? or down? </li></ul>
  39. 39. 15% Appreciation <ul><ul><li>None 80% 100% </li></ul></ul><ul><li>Home Value $200k $200k $200k </li></ul><ul><li>Mortgage 0 160k 200k </li></ul><ul><li>Equity $200k $ 40k $ 0 </li></ul><ul><li>Change $ 30k $ 30k $ 30k </li></ul><ul><li>% vs Equity 15% 75% infinite </li></ul>$ Gain is the same!
  40. 40. 15% Decrease <ul><ul><li>None 80% 100% </li></ul></ul><ul><li>Home Value $200k $200k $200k </li></ul><ul><li>Mortgage 0 160k 200k </li></ul><ul><li>Equity $200k $ 40k $ 0k </li></ul><ul><li>Change ( $ 30k) ($ 30k) ($ 30k) </li></ul><ul><li>% vs Equity (15%) (75%) infinite </li></ul>$ Loss is the same!
  41. 41. Reality of return on home equity … <ul><li>Gain or Loss is the same! </li></ul><ul><ul><li>Regardless of equity or mortgage </li></ul></ul><ul><li>You earn due to appreciation … not equity </li></ul><ul><li>The return on your equity is ZERO </li></ul><ul><li>Kiyosaki’s IGA’s: </li></ul><ul><ul><li>With $200,000 paid off home – how much in IGA’s? </li></ul></ul><ul><ul><li>With $200k in home, $200k mortgage, $200k in IGA’s? </li></ul></ul><ul><li>With the value of your mortgage in safe, liquid IGA’s your home is paid off … whenever (if) you want </li></ul><ul><li>When you go to a mortgage burning … wear black! </li></ul>Home Equity fails the 3rd test of investments - Return!
  42. 42. Conventional wisdom … in 2009 <ul><li>Mortgage interest - expense that should be eliminated as soon as possible </li></ul>MYTH
  43. 43. Reality on mortgage interest … <ul><li>Eliminating mortgage interest removes your best partner from accumulating wealth – Uncle Sam </li></ul><ul><li>Mortgage and most HE (home equity) loans are tax deductible - most other debt is not </li></ul><ul><li>Our largest investors do not pay taxes! </li></ul><ul><li>Equity does not bring tax benefits - a mortgage loan does </li></ul><ul><li>NOTE: Mortgage should only be used to buy appreciating IGA’s – not cars or toys ! </li></ul>Home Equity fails the 4th test of investments – Tax benefit!
  44. 44. Time for a story … <ul><li>A multi-millionaire – and Investor in B.I.Solutions Corp. </li></ul><ul><li>Bought a home a few years ago for $_______ </li></ul><ul><li>Now worth about $_________ </li></ul><ul><li>Mortgages of $___________ </li></ul><ul><li>Lost $750k in the financial markets in 2008 … the bright side? </li></ul><ul><li>Investment in B.I.Solutions made higher return than expected, plus large tax deduction </li></ul><ul><li>Learned that diversification is not having 500 vs 300 stocks; nor 15% vs. 10% in bonds </li></ul>Millionaires implement the messages in the seminar 300,000 300,000 240,000
  45. 45. The Business <ul><li>B.I.Solutions Corp. - 2 Divisions … </li></ul><ul><li>Buying Solutions – Home buyers – who can’t qualify for a mortgage </li></ul><ul><li>Investing Solutions – active real estate Investors who need “Fix & Flip” loans </li></ul>Banks aren’t lending – we have backlog of Clients
  46. 46. 1. Fixed Rate, guaranteed <ul><li>Monthly interest checks, $10,000 min. … </li></ul><ul><li>6 mo. B.I. “CD” – 6% </li></ul><ul><ul><li>No early withdrawal penalty </li></ul></ul><ul><li>12 mo. B.I. “CD” – 6.5% </li></ul><ul><li>3 yr. B.I. “CD” – 7% </li></ul><ul><li>Investment backed by full portfolio of properties </li></ul>Passive Savers/Investors – also Live the American Dream !
  47. 47. 4 Things you can do with your money <ul><li>Spend it </li></ul><ul><li>Lend it (IGA) </li></ul><ul><li>Invest to own something (IGA) </li></ul><ul><li>Give it away </li></ul><ul><li>Lose it </li></ul>
  48. 48. 3 Types of people … those who <ul><li>Pay interest </li></ul><ul><li>Earn interest </li></ul><ul><li>Pay interest to earn more interest </li></ul><ul><ul><li>Banks </li></ul></ul><ul><ul><li>B.I.Solutions Corp. </li></ul></ul><ul><li>Earn less than they pay </li></ul>
  49. 49. Conventional wisdom … in 2009 <ul><li>All debt is bad </li></ul><ul><li>Credit Cards the worst </li></ul>MYTH
  50. 50. Reality on credit cards … <ul><li>Do you ever get 0% offers from credit cards? </li></ul><ul><ul><li>What do you do with them? </li></ul></ul><ul><li>I invest them in B.I.Solutions (not shred) </li></ul><ul><li>In 2008 I earned $1,500 after all fees </li></ul><ul><li>I now get more offers for longer periods … and my credit score rose </li></ul><ul><li>Shredders are not IGA’s ! </li></ul>Debt used wisely helps you build wealth !
  51. 51. Mortgage invested in 3 year note NOTE: Loan is tax free money! $ 2,400 $11,200 $ 8,800 Annually $ 200 $ 933 $ 733 Monthly 1.5% 7.0% 5.5% Interest rate $160,000 $160,000 Amount Profit Investment Mortgage
  52. 52. Mortgage split into 2 investments NOTE: Many options on Higher return investments 21.4% 78.6% Split $ 6,848 $ 571 20% $34,240 High return $ 6,851 $ 8,803 $ 8,800 Annually $ 571 $ 734 $ 733 Monthly 4.3% 7.0% 5.5% Interest rate $125,760 $160,000 Amount Profit 3 yr note Mortgage
  53. 53. Common knowledge <ul><li>Green Investments are for “Tree Huggers” </li></ul><ul><li>They don’t really earn any return </li></ul>MYTH
  54. 54. Who is Dru Bacon? <ul><li>Va Tech: Chemical Engineer </li></ul><ul><li>Registered Professional Engineer </li></ul><ul><li>Kodak for 32 years: R&D and Chemical Manuf. Manager </li></ul><ul><li>Founded PebbleCreek’s Environmental Club </li></ul><ul><li>Result: PebbleCreek already has 100 Solar rooftops </li></ul><ul><li>Established Solar/Environmental Consulting Co. </li></ul><ul><li>Number 2 “green guy” in Arizona </li></ul>
  55. 55. Why Hold this Seminar? <ul><li>B.I.Solutions Corp. is a group of Real Estate Investors </li></ul><ul><li>Our portfolio growth is slowed by the banks not lending </li></ul><ul><li>That “problem” is an opportunity for you … </li></ul><ul><li>We pay “private lenders” the same 6-7% we would pay banks! </li></ul><ul><ul><li>The principal and monthly interest is guaranteed </li></ul></ul><ul><li>NOTE: in addition to Part II in late March … </li></ul><ul><li>We start a course for Private lenders March 13 th here at The Paseo </li></ul>
  56. 56. Decision Time … <ul><li>If you were in this seminar in 2005 … </li></ul><ul><ul><li>What would you have done? </li></ul></ul><ul><ul><li>What do you wish you would have done? </li></ul></ul><ul><li>“ If I take a person’s money, they have less – if I take their time, I waste part of their lifetime” </li></ul><ul><li>What would a good use of time lead to: </li></ul><ul><ul><li>You share this wisdom with some friends, invite them for next one </li></ul></ul><ul><ul><li>You separate equity from your home as soon as possible, whenever possible </li></ul></ul>Remember the $150,000 mistake – learn from others!
  57. 57. Contact <ul><li>Ron Nawrocki (The Ronald) </li></ul><ul><li>B.I.Solutions Corp. </li></ul><ul><li>3971 N Village St </li></ul><ul><li>Buckeye AZ 85396 </li></ul><ul><li>1-623-249-4792 </li></ul><ul><li>[email_address] </li></ul><ul><li>www.TheRonald.us </li></ul><ul><li>Next Seminar: Fri. March 13, 10:00 AM </li></ul>B.I.Solutions: P roven, P rofitable, and P ositioned for Growth

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