All Forum Posts by: Michael Shuster

Jeff,

I agree that most passive income programs are a sales pitch for something that sells 'the dream'.

There seems to be some confusion (both through this post, and in the minds of common folk), that passive income means no work.

We could split hairs about the definition all day long.
Fact is, passive income is more along the lines (to me) of not trading time for money. You still have to put in some work and effort, but when you step away from the work, the program still functions/sells/brings in money.

I put in work when I find/research/and buy an income property. I put in work to clearly define my policies and procedures that I require my property managers to execute. But once the tenants are in, and the property managers manage the property (not me) I'm not trading my time for money. I just manage the manager which takes minimal time. and they put in the time. Again, it's not no work, but it's less time put in and more financial reward that comes in whether I'm working on another business, on a vacation, or doing nothing.

I also agree that if you ned someone to motivate you then you are toast. When I use to be a specialized HR consultant helping clients improve their staff, they'd offer me big money to spend a day doing a motivational seminar. I refused every time. I told them I would get them Tony Robbins, but in a week or two they'd be back to their same unproductive habits. Motivation is important but it must come from the inside (passion/interest). Someone lighting a fire under your butt or dangling a carrot shouldn't motivate a human adult. Enjoying the process of what you do (I love real estate investing) and a genuine interest in continually learning more and continually doing what already works well and practicing new skills and techniques is my own motivation - not someone else's.

Harrison, once again, you really seem to understand the point of my post and you did a great job at articulating some excellent points. Thanks again!

Thanks for the kind words Harrison.

Isn't it amazing that people (like you, myself, and some others) simply post some ideas, that might help another investor, while keeping in mind that:
a) we have not tried to sell anything or ask for anything in return,
b) we know that every individual has the right and ability to disregard a posting if they feel it is not beneficial to their personal situation or style ....

and yet there are always some people that would rather spend (waste) their time trying poke holes in other people's credibility or take away value from the good intentions of this website, rather than just focus on something positive?

To those in the ladder, if you are successful in your own way, or not as a result of anything posted, and you do have free time on your hands thanks to success ... why not try to help someone else, or remember that old saying - if you don't have something nice to say ... don't say anything at all?

Assuming that someone has alternative motives, or raising issues with postings that might simply have been an honest oversight, are not worth defending or bickering about (leave that to the grade 5 kids. Furthermore, exactly who does that help and what is in it for you?
eg. if you feel smarter or better about yourself by cutting someone else up and spitting out all sorts unfounded theories, perhaps this site should be left to the people who actually want to help each other ?

Firstly, I'd like to thank everybody for their positive feedback and valuable input.

Secondly, I would like to explain something with regards to MikeOH's post earlier today:

When I referred to Tiger Woods getting out of bed motivated, and putting forth hard work, but still justifies having a coach, MikeOH replied:

"I agree with that! BTW, that certainly doesn't sound like a snowball rolling downhill. That sounds like someone working their butt off to push that that snowball to the mountain top!"

Yes, Tiger does work a lot. But let's not forget that this all stemmed from momentum. And the first time you have to get out of bed and go do 'work' it is rather difficult for some (like pushing a snowball uphill). But the more you do it, and the more momentum you build ... it (getting out of bed and going to the driving range) because automatic after a while.

I said: It is not a foregone conclusion that people must have money, must work hard, must suffer, and must sacrifice, in order to succeed.

MikeOH: No, I'm sure that you are right. Most people that are successful have no money, are lazy, don't suffer or sacrifice, and the money just falls out of the sky on them!!! Give me a break! The only people that spout that kind of drivel are gurus/coaches/mentors who are looking to convince broke, lazy newbies to part with their money.

I never said anything about laziness or money falling out of the sky. I just said that I've made a lot of money in real estate investing and started without any of my own.

What I tried earlier to convey in response to MikeOH's replies was:
I am being accused of trying to sell hype and fluff. He is suggesting that I am a fraudulant mentor or course leader. I no longer teach courses and I have not tried to sell anything. Many people in this thread of replies/posts have been attacked for their positive thinking, their optimism, and their attempt to help others. None have tried to sell a dream or fluff.

MikeOH: I respect your opinion and appreciate your input. I don't know if you have been burned before by a guru or if you have an axe to grind, but I choose (like others) to remain optimistic, work hard, keep learning, and keep making lots of money (which I've done with the principles I talk about). If you have found success without using any of the suggestions I have offered, then you deserve success and I am happy for you. But it really isn't beneficial to anyone to spend so much time and energy trying to disprove everyone else.

This thread seems to get more and more interesting. As I placed a post to try and help some people out there, there are others like Harrison and Tim who realize the value of a positive attitude. It seems that no matter where you look there is someone hell bent on proving the rest of the world wrong.

MikeOH - your points are valid and I certainly don't dispute them. But what I think many people have tried to suggest (and possibly made clear) is that there are always multiple factors to consider. Furthermore, EVERYONE in this world is different. They need different motivators, they have different learning styles, and they are at different states of their careers.

In your previous replies you have proven that you keep trying to come back to the point that nothing comes easy or falls into your lap, and you must always sacrifice a lot to succeed. You have also come back to the fact that you don't know anybody with coaches. You might very well not know people who have used a coach, and I am sorry if you personally had to sacrifice a lot (or feel like you have had to sacrifice a lot) then that doesn't necessarily guarantee that the rest of the world must progress the same way you did, or do follow the same paths.

I NEVER said success comes easy, and everybody realizes that they must work to achieve and succeed. But nobody (also) ever said that coaches are to help people get out of bed in the morning. I know that Tiger Woods got out of bed very motivated every morning and very passionate about what he does. He worked very hard and put in more hours than one can conceive. And even after more success than most people will ever know, he still uses a coach. Sometimes a coach can see things from a different perspective. They can offer an unbiased opinion. And there are many other benefits.

Furthermore, I have personally succeeded, and when I started I didn't have much money, so I found other ways to start and make money to do bigger and bigger deals.

It is not a foregone conclusion that people must have money, must work hard, must suffer, and must sacrifice, in order to succeed.

They must have a plan, they must gain knowledge, they must align themselves with the right people if they want to avoid some pitfalls that you might experience on your own for the first time, and they must work hard.

p.s. listening more than speaking, using your mind to analyze the information (not just taking someone's word for it), and then true hard work will definitely be help you succeed.

Way to go Matt - excellent attitude.
Ignore the people in life, who's mission is to disprove the successful people and prove that everyone should just give up and quit. No doubt you are on the road to success. Keep going and stay focused.

Rich,

I love your comment.
While some things in life can be difficult, I believe that the majority (not everyone) tends to over-complicate things these days.

I am not suggesting that anybody take action that is foolish or unfounded, but people spend more effort and attention on finding faults, disproving, or criticizing and complicating things, rather than focusing on the simply underlying factors that are important and matter most.

Is that your book? (your icon). I'd love to read it.

Richard,

I think you said it best: This list is accurate but by no means complete.

You'll notice that I didn't say the items on this list are the "ONLY" things you need to succeed. These are just some of the many keys to success.

Fact is, there are lots of things that are required to succeed at anything in life. The other thing I've learned from the many boot camps I've attended and taught is that people quickly become victim of information overload. Whether they get excited or overwhelmed (or both) they can't allow everything to sink in and process immediately, so they get frustrated and give up or try half-heartedly and fail. It is no coincidence that 90% of the people who take boot camps are professional students but don't actually take action ... and succeed with their new knowledge.

People turn to blogs and postings for ongoing advice and ongoing learning, because each posting only represents one idea that might help you. In my case the advice is tried...tested...and proven to help someone in the past (if not myself then one of my students) and so it might help someone else.

There is not a one size fits all that I know about, and it's a shame when people spend more time trying to find the 'what ifs' and 'yeah but's' in theories that have made other people succeed, rather than devote their energy to succeeding in their own life. But there are usually many common attributes that exist in successful people’s code of conduct that does not exist in what people do who fail. Every single person is unique and will have their own personal distinguishing factors. But the more we can learn from others, the more we can benefit. Stephen Covey has many best selling books, including The 7 Steps Of Highly Successful People. There is nothing to say that if you only focus on the 7 steps you are guaranteed to succeed. Any many people have probably tries those 7 steps and failed. But if the 7 steps are common to those who do succeed, then they must be considered, and then those who fail must look for the additional factors that might have hindered them.

p.s. Nobody ever said success would be easy. There is an old saying that "nothing good life comes easy".

Jeff, I understand your point about motivational fluff. However, it wasn’t really to get people to go to the back of the room and buy something that makes me richer but won’t necessarily benefit the purchaser. It is more to help those who feel de-motivated in these difficult times or feel overwhelmed because they took a course and feel like they’re thrown to the wolves.

As for MikeOH who replied suggesting that taking action could be costly … you are absolutely correct. I said: The only failure in life is the failure to participate. I never said take action without gaining some knowledge or just throw enough stuff against the wall and hope something sticks.

When I began several years ago, I spent over $20,000 on courses, boot-camps, and mentors, hopeing to learn everything I needed to know to avoid mistakes and only experience profit. Well, about 90% became professional students and never took action. Then they blamed the courses they took, saying that there was something they taught at the course that was a scam. I am proven success that taking action leads to success. BUT…I didn’t do it without first investing time to research and learn, and money to learn from those who already succeeded (and failed). And … when I found deals, I took action which was to analyze the deals the way I was taught, but also take action … IF … and only IF the numbers worked for that deal!

People will never stop learning, and the real estate world will always change. Things that used to work won’t work anymore, and new things will work better than others. But, when I made the decision to learn, persevere, and keep up with this industry, that was an important decision, and one of the many action steps I took. But I would never write a check for a property that didn’t prove to be profitable with multiple exit strategies available to me, which would minimize risk.

Like Richard quoted above:
Make a distinction between being interested and being committed. When you are interested in doing something, you do it only when it’s convenient. When you are committed you follow through – no matter what – no excuses. – Mike Krzyzewski , Duke Blue Devils

When I said: The only failure in life is the failure to participate….I by no means meant that if participate you are guaranteed success. Far from it. Success takes hard work and knowledge. But one thing is true (and quoted by several famous athletes) … You’ll miss 100% of the shots you don’t take.

Harrison,

thanks so much for your reply.

Clearly some people are still in that 'victim' mode, and instead of trying to take something good out of the article, they try to put it down.

You'll notice that I didn't say the "ONLY" thin you need is momentum. Momentum is just one of the many keys to success.

Fact is, there are lots of things that are required to succeed at anything in life. The other thing I've learned from the many boot camps I've attended and taught is that people quickly become victim of information overload. Whether they get excited or overwhelmed (or both) they can't allow everything to sink in and process immediately, so they get frustrated and give up or try half-heartedly and fail. It is no coincidence that 90% of the people who take boot camps are professional students but don't actually take action ... and succeed with their new knowledge.

There is a reason that school is 10 months long and not 2 weeks. Why don't teachers just give students all of the reading, homework, and outlines, in the first week for everything they need to learn for the year, and then test them on all of the material during the second week?

Obviously it is because they have to learn one lesson at a time, study it, practice it, and oh yeah ... build momentum at solving those math problems because momentum makes it quicker and easier and more natural for them, and then once they've developed the skills for that exercise, and they've developed the system for building momentum, they are ready to learn the next lesson from the teacher.

Nobody expects to be an Accountant after one week of math class. Why do people expect to be millionaires after one blog post, one course, one boot-camp, or one week of practicing the law of attraction?

People turn to blogs and postings for ongoing advice and ongoing learning, because each posting only represents one idea that might help you. In my case the advice is tried...tested...and proven to help someone in the past (if not myself then one of my students) and so it might help someone else.

There is not any one size fits all that I know about, but it's a shame when people spend more time trying to find the 'what ifs' and 'yeah but's' in theories that have made other people succeed, rather than devote their energy to succeeding in their own life.

p.s. Nobody ever said momentum would be easy. There is an old saying that "nothing good life comes easy".

Everything is hardest when you try it for the first time. But in reality, it is not like pushing a snowball uphill. It is like pushing a snowball that weighs a lot more than you do across flat land. You really have to use all of your energy to get it going, and sometimes even ask for help to start it moving. Donald Trump had to get his father to help get his boulder moving. But with knowledge, practice, dedication, ambition, focus, and a clearly defined plan, the momentum builds and eventually the boulder needs a light push every once in a while, and it keeps on rolling naturally.

There are many skills to practice for you to get a perfect slap shot in hockey or a perfect golf shot. Body position, weight distribution, grip, angle of your club/stick, are just some of the many things that the pros have mastered. But when Wayne Gretzky or Tiger Woods first started it all seemed just as difficult and daunting to them, as it does for any other beginner. But … in addition to having a coach/mentor who taught the proper skills, they also developed momentum while focusing on one attribute at a time to improve.

I know a professional golfer who had a shot that would make any amateur jealous with envy. When his coach pointed out one slight adjustment in his swing (shoulder position), he spent an entire week just focusing on that one attribute (shoulder position), while hitting golf balls all day long. The reason – as he developed MOMENTUM in his swing (including the new shoulder position), he/his swing developed the muscle memory to attain the proper shoulder position, rather than revert to the previous (wrong) position. And with Momentum, it became easier and eventually more natural. The momentum allowed him to place all of his focus on something new to improve on during the following week, because thanks to momentum he was able to place less and less conscious focus on something that used to give him a problem.

Hi Jon,

thanks for your reply.

I currently am investing in a niche market in Philadelphia. I'm not in Philly, but I have several properties there near Temple University that are cash-flowing very well, and appreciating from what I paid for them (even during 2008).
I actually have one for sale there, so I can use the cash for another property.
The property for sale is all rehabbed - brand new condition inside, and ready to tenant. It is a few blocks from the university. Rental income (4 rooms) is $1600/mo on that street, and it will cash flow for a new buyer, even with a mortgage.

What is your focus and where do prefer right now?