Real-Estate is the foundation of my Non-Real Estate Business.

I have worked in the same industry for 15 years and am only 30. I started working with my father when I was younger in his machine shop doing shipping and receiving and sweeping floors. Fast forward 15 years and I now own and operate my own small business that supplies the Navy, and all branches of the armed forces with spare parts and hand tools. I have owned my business for 6 years. When I first started learning about real estate it was by the same means of most people who fall into real estate. I picked up "Rich Dad/Poor Dad". After that my life has not been the same. That was almost three years ago. At this time my wife and I own two rental properties and planning on buying another two in the next year. Some might say that we are moving slow but we have also paid off about $20k in BAD debt off. We have been living really lean in order to get out of bad debt and into good debt. My wife and I collectively have 7 streams of income. If you are familiar with the cashflow quadrant we currently and will continue to live in all four for the rest of our lives. For those of you who are not familiar with the cashflow quadrant I will recap really quickly. E= Employee, S= Self employed of Specialist , B = You own a big business , I = Investor

The first two are on the left side of the quadrant and is the slow track or rat race and the right side is the fast track and the fastest way to financial freedom according to Robert Kiyosaki. While I tend to agree I think that using all of the quadrant at the same time is great for synergy and transfer of wealth to yourself. Using all of the quadrants have allowed me to work less and save more for future purchases in real estate and my own business. I am not shy about letting everyone know what and how I am doing in real estate and my business. I will let you know exactly how I am using other people money (OPM) and other peoples time (OPT) to grow my business in my non-real estate business as well as in real estate.

The first thing I will go over is my real estate holdings and the cash flow from each and how I take that money and thrust it into my government contracting business to propel that forward faster and faster to make more money in that industry and then I will loop back to explain how I am utilizing my money to invest back into real estate. This cycle is true synergy and is VERY powerful for growth.

I have a distribution company, which simply put means I own no machines and am the middle man. The guy between the manufacturers and the government. I have my manufacturers make the tools for me, ship them to me and then turn around and send them to the government. The time I spend on actually handling the parts is very minimal and the ROI on my time is amazing. While this method is fantastic and enables me to make sometimes thousands of dollars in a single hour. However this industry it is very competitive and is sometimes hard for me to win contracts because I am have no machines to manufacture items myself. Manufactures as we all know are able to make products for the cheapest price not the middle man who in turns has to mark it up to make a profit before selling it to customer. But with my method that I use for real estate it is helping me in my other business and is enabling me to go by equipment so that I can start manufacturing items my self. This allows me to be more competitive and win more contracts.

Let me explain, Each one of my properties brings in about $350/month each. So between the two that is $700/month. The specific piece of equipment I am going to by for my business is going to be with a loan and the monthly debt service for that loan will be $600/month. So I will still be profiting on my rentals about $100/month or $50/month for each property. While you might be thinking that sucks that I only make $100/month with two rentals you are forgetting to ask how much that piece of equipment I bought is allowing me to make. The answer is around an additional $1,000/month. I am spending $600 to make $1,000 every single month, forever. How many times can someone keep doing that? The answer is unlimited.

To carry this forward another few years I can keep taking that extra $400/month and throw it back into another property. Buying another property which will allow me to make anther $350/month plus the extra $400/month now equals $750 a month or a bigger more expensive machine. With that bigger machine that I have in mind of purchasing I now spend $750/month to make an additional $2,500/month. The extra cash flow being thrown off is now $1,750/month and then thrown back into rental properties. This cycle continues on and on....

The speed and velocity of my money is growing incredible fast. That is how I am using OPM or my tenants money to grow my non-real estate business. This method can apply to every single business known to man. Not just my business.

I will let this sink in and allow your brain to mole over the potential of doing this in your own life. I would love to hear about ways you can implement this into a business you currently own or have always wanted to start.

Next blog post I will explain how I utilize OPT to grow my business. Then I will show just how powerful it is to use both OPT and OPM at the same time to create something that is truly UNSTOPPABLE.

Please comment and let me know if you have any questions or if you enjoyed this blog post. I also want to know about your business ideas on how this method can be used in your life.

Thanks for reading,

Jason Waldo