About a cash flow system, not wanting to be duped. - Posted by Lisa Barlow

Posted by David Butler on April 04, 2007 at 13:30:17:

Hello Lisa,

We’ve had a lot of discussion on the underlying theme of your inquiry here - and it all points to the most basic steps to achieving success in the private cash flow industry.

Rule #1 is to preserve capital early on. The failure rate in the cash flow industry is extremely high. Many suspect it has grown even higher over the past few years. This suspicion is not so much from increased competition - as by the fact that too many people who really weren’t suited for it, failed to explore the business carefully, before spending too much money to take all kinds of courses and workshops that just weren’t going to do them a lot of good.

The other side of that coin is that a high percentage of those remaining few who may have had a chance to succeed, wound up spending so much on courses and workshops that did not only did not do enough for them in relation to the money spent - it also had the deleterious effect of soaking up the capital and/or credit needed both to operate their business, and cover their basic living expenses during the “start-up” phase of their private cash flow venture. A double Whammy for most people.

Incredibly, this phenomenon is occurring despite the fact that there is a wealth of FREE information readily available on the Internet - including right here in the Cash Flow Forum - that would easily overcome the problems so many new people encounter. These discussions include the advice of many recognized cash flow educators who all recommend the same approach, generally speaking.

First… spend some time giving yourself a FREE mini-workshop, simply by exploring the archives here for topical information related to “getting started”. You can easily do this over the course of two weekends, and essentially give yourself the equivalent of a $1,500 to $4,000 workshop. You have the added benefit of no lost time to travel, nor any travel/lodging expenses. That is worth at least $300 to $1,200 in additional savings for most folks.

The best part is that by using this approach early on, you will gain a much better feel for the private cash flow industry, and whether or not you might want to actually spend ANY money to learn more about it - BEFORE spending that money. At the same time, you will have a much broader understanding of the business, along with some basic useful working knowledge - which will add great value to anything you eventually do decide to spend money on.

In addition, you will run across a number of helpful discussions related to who does recommend what, in terms of actually spending any money on further educational materials.

Here are a couple of recent threads that may help you begin the process…

"Re: The Green Mile?!"

"Rule #1 - What’s Your Favorite Color?"

Be sure to look at the many helpful posts made by John Behle and Mike Morongiello as well.

Hope this helps. Best wishes for your Success, and…

Have Fun For A Living!

David P. Butler

About a cash flow system, not wanting to be duped. - Posted by Lisa Barlow

Posted by Lisa Barlow on April 02, 2007 at 10:44:56:

Hi all,
I am trying to get advice about Russ Dalbey’s Winning in the Cash Flow Business.
I just do not want to be taken. I live in California,were there is a scam around every corner. Is it a legitimate system, is it hard to follow? Do I need a financial background to do this type of business? I?ve gone to other websites for reviews and most do not give it good marks.
I am willing to work hard like most people to gain more.
Just looking for some direction, the threads I have read here do not seem to do allot of bashing of other systems. I?m not looking for something to gain riches overnight. This seems like a doable home based business and that is what I am looking for, not something to waste my money on. If there is something better please let me know. I’ve learned it is better to ask before you leap sometimes, especially when it is very late at night and you’re surfing the net. Thank you Lisa

Re: About a cash flow system - Posted by Anne_ND

Posted by Anne_ND on April 06, 2007 at 08:26:38:


I second David’s suggestion to dive into the archives. I’d also suggest you buy Lonnie Scruggs’ little book “Deals on Wheels” which explains in a step-by-step fashion how to find older MHs, buy for cash and sell on a note.

While the tone of the book is homey and relaxed, the concepts contained therein are top-notch. The book is only $30 and is worth reading again and again until you understand what he’s trying to explain. You can take these ideas and use them to create notes or to buy notes secured by real estate or anything else.

The only other thing you need is a financial calculator, a regular one won’t work.

A final point I’d like to make, many of the courses out there are meant to turn students into note-finders, who end up brokering notes to the note teachers. Note brokering can be a great way to make money, but it’s hard work, because the end buyers typically have a great deal of constraints on what notes they buy (and this makes sense, because they are buying notes nationally- they need them to conform to some standards in order to reduce risk).

If you buy local notes and hold them yourself, using borrowed funds to purchase them, you can get nice yields, you have more flexibility and less responsibility to someone else.

Again, doing a Lonnie deal or two will give you first-hand experience in what YOU want in a note; how to qualify a note payor; how to find funds and what your local rental or sales environment is like.

The threshold for getting in to MH notes can appear daunting at times; the “ick” factor with MHs is the reason why so many blanch at the idea (whoo-boy, have I seen some things I wish I could forget in some old MHs)- it’s also the reason that even in locations with lots of Lonnie dealers, there are still LOTS of deals.

To sum up, spend a few weeks in the archives both here and on the MH board, and get Lonnie’s book and a financial calculator. Doing Lonnie deals and buying notes has allowed me to quit my job, and my gross income is now 4x what it was when I was working.

good luck,