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Dollar-Cost Averaging

In the world of investing there’s what I like to call the big 3, in regards to investment strategy. There’s the “Buffet Rule” better know widely as “Value Investing”; which focuses on the company’s fundamental rather than the stock price. There’s growth & technical investing, these strategies involves technician analysis in addition to growth companies with the highest upside. And lastingly, Day and Short-term trading, which is exactly what it sounds, a trade that is as short as 24hrs. But there is another strategy that isn’t as widely used as the other three but has been gaining traction over the past decade or so, Dollar-Cost Averaging.

Essentially, you invest a fixed sum of money into Mutual Funds, ETFs or individual shares on a regular(weekly or monthly) basis regardless of where the market stands. Dollar-cost averaging can be emotionally difficult at times(especially for investing novices) if you don’t know what to expect. By investing on a regular basis, you will also be investing during bear marketing and corrections. Which means you could reach a phrase where you’re buying even when fund or individual is have consecutive bad weeks or months. But the overall risk outweigh short term pain you might experience.

By putting in a fixed amount weekly, bi-weekly, or monthly, you are buying more shares when the prices are low and fewer shares when the prices are high. Though this is a investing strategy itself I believe it requires a sub-strategy within its implementation. This strategy should not be used against highly volatile companies that have high swings in stock prices, that would cause you to go from being able to buy 10 shares one week but only 1 shares the next. This strategy is best used for fundamentally sound companies, preferable those that buy an attractive dividend.

Mutual funds and ETFs are so vastly diversified that they are less prone to market volatility so they are already structural forms to suit this strategy. And if you pick the correct one they will also pay a fund dividend. But the real back bone of this strategy is the compound interest mechanism at its core. This strategy seeks to have you invest a fixed amount monthly and then have you reinvest your dividends or ROI amassing more shares. Thereby multiplying your return 3, 4, 5, perhaps even 10X fold.

This strategy should sound familiar with our investment club members because we sorta of use a hybrid version of this strategy with our monthly contributions and survey votes. Though we might not buy all the same securities every month we have in our portfolio we buy at least one of those holding with each monthly contribution. This is a highly effectively strategy not widely yet practice but I think as people become more financial literacy will take on more visibility.

Jamaal W Vetose

President

Todd Capital Investment

Appreciation vs. Preservation Pt 9. Bond Diversification

Diversification is an important part to your investment portfolio just as important as the money you use to invest in the financial vehicle you amass. Stocks provide investors with a variety of options to choose from and bonds are no different. In this latest part of the series, we’re going to examine some of the various bonds types that you have to choose from.

There are a variety of bonds, ranging from government issued, to the more speculative and even foreign company and government bonds. They all fall under these five bond type categories:

  • U.S. Government Securities
  • Mortgage-Backed Securities
  • Municipal Bonds
  • Corporate Bonds
  • Junk Bonds
  • Each offers distinctive benefits for an investor but also has it own unique drawbacks as well. Some will fit best in your portfolio while others shouldn’t be trifled with at all. And since I covered Treasury, Municipal, and Corporate in part 8 of this series, I’ll focus on the junk and mortgage backed securities bonds to compliment that writing.
  • High Yield Bonds
  • These bonds are better know in the financial markets by their official name(High Yield Bonds) and their more recognizable name by investors is, junk bonds. These bonds can offer a higher rate of return or higher yield than most other bonds because their risk is much greater.
  • Junk bonds are bonds that don’t make the grade or pass the traditional smell test. They are issued by corporate companies either growing, struggling, restructuring, and most importantly considered at great risk to default on their bond issue, for whatever reason. These get issued when companies are merging and have debts to pay in completely said transactions.

    These high yield bonds include not only a risk of default by the company but also that their market value will decrease suddenly and drastically. This usually will occur because the company that issued these bonds are not as secured as the high-grade bonds. Sometimes a company that initially issued high yield bonds will improve and than those bonds will become low yielding one. So if you are daring and strategic the idea would be to buy some high yield bonds from a company initially that you feel that will become low yield and get out of the trade.

    Mortgage-Backed Securities

    Mortgaged-backed securities(MBS) can be a highly profitable, extremely complicated, and highly risky investment mechanism. Yes, these are the same bonds that nearly brought down the world financial system back in 2008, but this vehicle had been around long before than and had made a lot of people a lot of money.

    Financial institutions help create MBS by selling part of their residential mortgage portfolios to investors; investors basically buy a piece of a pool of mortgages. With the banks being the creators of these type of bonds to alleviate these bonds risk a hedge bet might be to buy the shares of banks either in ETFs or individuals to be defensive against the pull back of these bonds. But that’s a whole another blog post.

    There are several types of MBS available today for purchase. And of course in addition to the private offering by company, the government also has their hands in this as well. One of the most common pass-through Ginnie Mae, issues by the Government National Mortgage Association, an agency of the federal government. The benefits of all MBS is investors receive high interest payments, consisting of both principal and interest.

    In Conclusion

    The most important factor of bond investing is diversification, that is the key to success. You should hold just one type of bond you should invest in a variety to mitigate the over risk and maximize your potential profitability. Holding a range of maturities-a strategy commonly called laddering- helps your portfolio not to take too big of a hit when interest rate raise too high. Make sure your bond ladder correlates well with your overall financial plan. But if bonds make you uncomfortable stay out of them all together. Honestly if the rest of your income in relatively safe from the negative effects of inflation, you may not have to make risky bond choices to stay ahead anyway.

    Jamaal W Vetose

    President

    Todd Capital Investments

  • Why don’t you own that many businesses?

    When I saw that Soulja Boy video I felt his pain in my soul. I felt it because I have lived it. I have lived through ridicule for my ideas. I have lived with people telling me things can’t work or I can’t do that. To me the Soulja Boy video was bigger than just Soulja and Akademics it was about the culture.

    Ill never forget the time I told someone I wanted to invest in a run down slum of San Bernardino. The property we were looking at was 40k and was for sale because someone had been killed on the front steps. When the opportunity was presented to me I told my law school friends (both black) about the opportunity. They laughed and made fun of me for wanting to invest in bandos. Two years later that 40k property is now worth 90k.

    Another example of this is the push back and slander I get for investing in Detroit. “Why would you invest in that shit hole”. Was the question posed to my Uncle when he told a family friend that our group is buying in Detroit. That shit hole gives us a 50% gross ROI every year, that is why.

    This blog is going to address a few points in that video that I feel are important to grasp as you embark on your entrepreneurial journey. Each was presented in that Soulja Video but has also been displayed on the breakfast club several times. I am sharing this because I think someone needs to hear it. Someone needs this push.

    They will laugh with conviction

    Everyone can tell you how to start a successful multi billion dollar company, nobody owns one. The problem is that despite their lack of accomplishment they are dead certain that they KNOW how to accomplish what you set out to accomplish.

    These people are so certain that they will laugh at you for trying. The problem with their naivete isn’t that they are naive and ignorant its that they don’t know they are ignorant. They think they have all the answers. If they had all the answers though they would have all the success.

    This doesn’t just include unsuccessful people. This includes successful people as well. On your journey you will meet successful people who have done things a certain way and think THAT way is the only way to get there. This is widely shown on the bigger pockets forums. There are successful people who think they have all the answers and they will bash you for doing anything different even if it leads to success coming from a different background. Nobody has the ability to tell you something cant work, not the successful or the unsuccessful.

    The response is to choose yourself and your convictions. The only person you need to see your vision is you. Like ET says in his Video “I can see clearly now“, stop calling them haters just because they can’t see what you see. You just gotta see it and YOU gotta see it clearly.

    These people will laugh at your vision with conviction but the only person they are right about is their own limitations. Their can’t do it but that doesn’t mean that you can’t do it. Stop expecting people to sign off on something that they can’t see.

    They will point out your flaws and imperfections

    One thing I noticed about the video was that they kept pointing out what he was doing wrong. They said his name isn’t on the box. They said his store wasn’t open at one point. They were masters at finding mistakes, flaws and imperfections.

    This is something that non doers are great at doing. They are great at finding the few things you are doing wrong instead of finding the things you are doing right. This is the reason why so many people don’t start. Its not the fact that they are perfectionists its that they are insecure and they don’t want the inevitable criticism that comes with putting your product out there.

    The very first iphone wasn’t the iphone that it is now. The first iphone didn’t let you change the wallpaper, it didn’t have a keyboard that was landscape, you couldn’t copy and paste and there were a host of other obvious flaws that perfect non doers caught. That didn’t stop them from selling a ton of phones.

    The first iteration of Big Baller Brand shoes got clowned form the heavens. They said it was a fake Kobe, they said it was too expensive, people didn’t get their shoes for weeks. Now, Lonzo Ball has already made more money than he would have made with a shoe deal and is set to make even more as the brand grows and develops into much more

    People will point out your flaws and imperfections because its easier to be a critic than it is to be correct. Don’t feed into it. Don’t let it stop you. Take acting and continue to refine your process. Continue to reinvest your business income into improving your product. You get better by doing not by thinking about doing. You get better while you are getting paid to provide a product to people. This is money you wouldn’t otherwise get. You just have to use the business to improve and grow the business. This is a pure Elon Musk principle. He made high end cars and used the high end car money and brand exposure to then develop the company.

    They will put more effort into white businesses than your businesses

    Most of this is rooted in competition and self hate. Everyone that is close to you thinks they are superior to you in some way. Most people who say it can’t work secretly hope it doesn’t work because if it does work that will prove that they aren’t enough. You came from the same circumstances as them but you flipped it into success while they struggle still with their excueses and good reasons. They are rooting for you to fail for their sake not for yours.

    This is the wrong mindset to have. It is wrong because a successful business creates opportunities for others. If I own a business I put people in place to succeed as well. Often times in places that they would never achieve if they protested and begged for inclusion. Lets face it, inclusion and equality aren’t coming to swoop down on you. If you are man and you want inclusion and equality you take it. You create opportunities, you build ideas, you start a business that serves your community as opposed to jut a job that serves you. A job you can’t pass down, a job you lose as soon as you croak.

    See one thing that Soulja pointed out was that Akademics could come and stream with him but he would rather stream Fortnite and get them rich. This is the silly thinking we have on two folds. We complain about oppression and then fund the same oppression. We complain about lack of access and then fund the places that don’t admit us. Then we bash those of us trying to create spaces for us. It is insanity.

    A whole lot of businesses

    I create a lot of businesses but I create a lot of symbiotic businesses. They are all related in some sense. Each logo is a stream of income and I need as many streams (checks) as I can get.

    For me the trucking business is an investment, not a trucking business per se. I wont be driving the trucks, I wont be booking the loads, I wont be doing anything except looking for cash flow. The same is true with stocks and real estate. The same is also true with consulting and tax.

    All of my businesses deal with the realm of business and investing. A lot of people see my multiple businesses and laugh. They think I am all over the place. This is why the Soulja point resonated with me. His response was exactly how I feel. 1) I am trying to be a billionaire and 2) why don’t YOU have a bunch of businesses?

    The entire conversation was foolish but the entire conversation merely demonstrates our immaturity in the realm of business and entrepreneurship. We have been sold the vision of a good job so much so that we can’t recognize an opportunity that doesn’t look like a good job. We just flat out don’t understand business and are too prideful to admit that we don’t. If we did know business we would have more business.

    The Soulja issue is a culture issue. Every single business owner that ever tried to do something that didn’t look like something a white person has already done (aka the first black person to do something a white person did) or something attached to a paycheck is going to get laughed at until we grow up as business people. The laughing hides insecurity and ignorance. “How can you do this if we are oppressed and we are poor?”. That is the question that is not being asked. The fact that these critics don’t have an answer to this question while those of us building DO demonstrates their ignorance. It demonstrates what they are hiding. It would be wise to take lessons from the Dames, the Kanye’s, the Souljas and the Todd Millis. We know something you don’t.

    If you are interested in learning how to invest long distance email charles@capitaltodd.com

    I encourage you to invest with us and join our partnership.  We are doing a great work and if we keep up the pace we can be into twelve doors before the middle of next year.  We are also going to buy a truck by midyear.  If you want to form your own contact us for a consultation and we will walk you through the process.

    If you are interested in investing with our club on either the stock or real estate side we would be happy to welcome you into the partnership.  Email membership@capitaltodd.com today to join.

    We have an amazing course that will teach you all you need to know about how the stock market works and you can find that here: https://www.udemy.com/what-they-didnt-teach-you-about-money/

    Thanks for reading!

    Be great, invest well,

    Todd Millionaire

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    “Improve as you do”

    When we first started investing in real estate I didn’t have the cash or the credit to get into deals. Not at the level I desired. Most of us don’t. We don’t because we don’t have to be that person. Doing forces you to become that which you desire to become.

    In my situation, I was heavily dependent on our partners and my mentors. Because resources were so slim I HAD to be precise. The deal had to work.

    As we started doing deals via teamwork I started to see my personal financial position grow along side the portfolio. My credit score is comfortably above 700. I have more than enough cash to do deals and I also have established fat business credit cards and lines of credit that help float the business and grow the business.

    I became a real estate investor by investing in real estate not by thinking plotting and planning on investing in real estate.

    Another example of improving as you do is this investment club. The first investment club was a mess. We had people sending paypals, venmo, cash app and zelle at all hours of the day in different amounts. I spent a lot of time tracking down emails, updating spreadsheets and moving money all over the place. These days the investment club is tracked in one app that has everything we need built in. This happened because I was forced to find a solution to something that would take the pressure off me to manage hundreds of people’s money. The pressure of doing landed us where we needed to be.

    The same is true for the real estate club. We now have an online portal that tracks our members interest, they can see the income as it goes in and the expenses as they flow out. We didn’t start like this though we just landed there. We landed there because I had the pressure of crowdfunding regulations and the need to be transparent in a world that lacks trust. I didn’t want those problems so I HAD to find the solution to meet the end of creating a group investing platform.

    The key is that by doing, and feeling the pressure and getting the criticism we grew into where we needed to be. We got off the ledge, dove in the pool and started flailing our arms until we started realizing that certain strokes kept us up and certain strokes made us sink. This same metaphor can be used for business and investing.

    Starting exposes your weak points

    A lot of people don’t like finding the areas that they are weak in. By improving these weak areas though you become strong across the board. Business tends to be unforviging. This is what forces you to read, ask questions and pay for help. As you do, you improve. As you improve so does your income. You need to feel the stress, the pressure, the uncertainty and the fear. These cuts are what mold you into the diamond you desire to be.

    Its like ET says, you can have what you want be what you want and do what you want, but not in that version. That version of you won’t get it. You must get out there and get cut not read about getting cut.

    Get the reps in

    What you need is reps, not knowledge. The reps will give you the knowledge in the right areas. So many of us get in the habit of over consumption of information. We buy all the courses, we listen to all the podcasts, we try to find the RIGHT way. Don’t get in the habit of mistaking movement for progress. Only progress is progress.

    When I was in college I would go to the lecture and then show up for the exam. I would get a B and I would think I was a B student. What I then started doing was reading the chapter before class and doing the homework before class. The homework exposes what I didn’t know. I would then circle back to the book with a better eye for the material and then go back to the problem and answer it. Then in class I was just looking for the small gaps. I wasn’t expecting the teacher to do all the work for me. That was when I started getting As.

    The home work is the work that you need to be doing. Those small early deals, that is your homework. Those small early trades. That is your homework. Do the work, figure out what you did wrong and then circle back to the book with a better eye. I was reading the book Richest Man in Babylon after reading it for the first time in college. At 32 I see things I NEVER saw in that book. I have experienced real life and gone through tests that now expand my thinking. The book alone was not enough. Life applied to the book took things to the next level. You have to get reps.

    Perfection doesn’t exist

    I saw someone make a point on IG that you don’t have to wait until you are perfect to start. The problem with this statement is that perfection doesn’t exist. Yet and still there are people sitting there with ideas they can launch or albums they can drop. They are waiting for something that wont ever happen and the will end up doing nothing.

    If the thing you are waiting for is something that doesn’t even exist you get a pass on not trying and then you avoid the public failure and criticism that you are dodging in the first place. Perfection is really just disguised insecurity. You don’t want the critique that I get on a daily as people ask me silly questions that are valid but have NOTHING to do with the overall goal. People criticize contracts and corporate structure because they want the perfect holding company with the best name. None of that matters. The only thing that matters is what are you DOING? What actions are you taking? What content are you producing? What assets are you acquiring?

    Your failures guide you

    Todd Capital is nothing but a failed necktie company. Hunter Todd Neck wear is the name of that company. Many of you are probably aware of that company I started. This was a company that I started and saw some traction but because of the narrow nich and narrow margins chose to abandon. I realized that I can do one LLC or do one real estate deal and make 1000% more than I would selling one tie.

    This motivated me to get more value out of my efforts. I kept the name and the IG followers and I put a different spin on my business model. Instead of focusing on fashion I focused on my lane, finance.

    That failure led me to realize that I needed to start a company that I could get obsessed with. A company that I had a competitive advantage in. I have a degree in finance and experience working for two major investment firms. Most people don’t have that therefore I have an edge on most people in that lane.

    Since this is my lane I can blog, podcast, Investment Club, consult and post on social media about my lane all while promoting my company. No matter how much action I take, and I take a lot of action, It doesn’t feel like work because I am in my lane. This has allowed the company to do crazy numbers.

    Are you into fashion?

    This fascination with obsession was pushed home when I was at a wedding and someone asked me if I had a tie company because I was into fashion. I was taken back. LOL of course I’m not into fashion, not like that. but I had a fashion company? That is silly. It was losing because I was chasing the money not the passion. I don’t do Todd Capital for the money, the money is just a byproduct of doing well. Since I am not chasing money the amount of work (a lot) required to put in to make this thing successful doesn’t feel like a hastle. Like Gary V says “if you hate doing something you are competing against someone who loves what they do and they are going to put in more hours than you with ease”. I am that somebody.

    These days I can talk real estate and finance all day. In starting a business that was moderately successful I realized that I needed to perfect my aim more. That failure while doing is what pushed Todd Capital forward.

    Perfecting the blog and writing while doing

    Even as i write this blog I am improving and getting the motivation to write this blog. Writing a blog a day is hard but I find that I get more motivated to write the blog as I am writing not as I am thinking about writing.

    A while back I told Jamaal to write a weekly email and he hesitated because he had never done anything like that. I had him start and now he pushes them out with confidence and with ease.

    One of the benefits of working with your own and not other cultures is we don’t need perfection which allows you to get skills. They only tolerate you if you are perfect which will leave you doing low level activities not the advanced complicated things. You learn the advanced and complicated things through imperfect doing.

    I would rather imperfect progress than perfect inaction. The only way you can be perfect is by doing nothing. “The person who has never made mistakes is the person who does nothing” – Malcolm X.

    Why does it work

    Improving as you do works because we tend to do the things we are forced to do. When you are put in an impossible situation you tend to do the impossible. The hack is to then put yourself in the situations that set you up for the life you desire. If you know you will find a way to make it happen, get out there and take on that deal, buy that property, buy that business. You will find a way or make one. Sitting in the safe zone wont get you the life you deserve. You will be safe but you won’t be successful.

    Don’t wait until you know everything and then take action, take action and you will learn everything. I promise you that it works. Connections will find you, money will find you, opportunities will find you and the support you desire will find you. Improve while doing.

    If you are interested in learning how to invest long distance email charles@capitaltodd.com

    I encourage you to invest with us and join our partnership.  We are doing a great work and if we keep up the pace we can be into twelve doors before the middle of next year.  We are also going to buy a truck by midyear.  If you want to form your own contact us for a consultation and we will walk you through the process.

    If you are interested in investing with our club on either the stock or real estate side we would be happy to welcome you into the partnership.  Email membership@capitaltodd.com today to join.

    We have an amazing course that will teach you all you need to know about how the stock market works and you can find that here: https://www.udemy.com/what-they-didnt-teach-you-about-money/

    Thanks for reading!

    Be great, invest well,

    Todd Millionaire

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    My job funds my life and my business funds my lifestyle

    A lot of us are sitting on the money that can allow us to live the life of our dreams. We have skills and talents that are marketable to the world not just to our employer. The problem is that too many of us don’t have the faith in ourselves that would allow us to market our personal brand to the world. We tend to only value the opinion of our boss and not the opinion of ourselves.

    This is unfortunate. It is unfortunate because in my years I have learned that job is not all that they are cracked up to be. Jobs limit your growth. Jobs cap your earnings. Jobs belittle your skills and abilities. Jobs niche you and place an invisible glass ceiling over your head. Jobs are the worst thing that have ever happened to many would be successful people.

    I wanted a raise

    This last year I wanted a raise. I asked for a raise and got no response. I decided I would give myself a raise. I started my podcast and my blog and my investment club and just started putting in the work to make a few extra dollars. I would form LLCs for people and engage in consulting and as a result I was able to bring in an extra thousand here or there. I continued to market my company and promote it on my show and through social media and I went from bringing in one or two clients a week to now bring in about one or two clients per day.

    Not only this, I also have been able to give myself a raise through the real estate and stock market investing that I do. I turned that raise into a salary. In 2018 I was able to double my salary via all the streams I had kicking and this year I am on pace to more than double that raise.

    Over the course of the year I have used business income to pay off debt, to invest heavy and to do nice things for my wife. I always tell people that my job funds my life and my business funds my lifestyle. This is why you MUST start a business.

    Do both

    Too many of us are trying to make a job do something that it isn’t supposed to do. A job is not meant for wealth building. A job is not meant to fund your business. A job is not meant to give you an above average lifestyle. I use my job as my base. I think that a job is necessary. A job is not the bribe they use to forget our dreams. A job is the base upon which you can build your dreams. The job pays the mortgage, the rent, it gives you health and dental insurance. A job is a piece of your entrepreneurship puzzle not the replacement for it. Enter, the internet.

    The beauty of this is that we now have the internet. The internet allows you to start a business by starting an Instagram profile. Before you could not do this. Before the only way to get to market was to get a loan an open a store front. These days social media is your store front and social media doesn’t charge. You have no excuse. The internet and social media also allow you to work on your business WHILE you work your job. I write most of my blogs sitting right at my work computer. I pound them out while researching and writing for my 9-5. The internet lets you do both, you don’t have to choose. Since you don’t have to choose it is foolish to neglect building a business JUST because you have a fickle job that will fire you in a moments notice. You owe it to yourself and your heirs to take advantage of social media and all the free business building resources WHILE you work your job.

    What would you do?

    What could you do with an extra $10,000 dollars? Most people don’t realize how easy it is to generate $10,000 because we are so used to exchanging our time for money. $10,000 for the person that makes $25 an hour is 400 hours or 10 work weeks. That is two and a half months, not including taxes and not including the money you spend getting to work and also not considering the rent, car note and other bills. Two and a half months to gross $10,000. That is ridiculous.

    In one day of trading I was able to make $5,000 and I didn’t’ have to sit in traffic or get talked down to not once. Over the course of the year I made about $30,000 trading the market, on top of my job. In one year of business I was able to make thousands working with clients and that was on top of the working income I was already bringing in. Additionally, we made thousands in rental income and are set to make even more as we acquire more doors. I gave myself a raise and stunted all over any five or ten dollar raise they would have given me. The raise I gave myself > the raise I would have gotten. (Sidebar is that I still got that raise which was even more icing on the cake because I got my raise and I gave myself one). You never lose when you choose yourself.

    I realized that building a business on top of my job was the freedom I was looking for. Not a new job, not a raise, not a bonus, not EBT, not a tax refund, a business with unlimited income is the solution.

    Here are a few quick points I want to make regarding building a business and investing on top of your business.

    Don’t save money, instead create investments

    One of my favorite quotes in the Rich Dad books is that one dad struggled to save a few dollars and the other created investments. We always hear that 7/10 people stunting on the gram don’t have $1000 saved, that is because they are doing it wrong. Instead of struggling to save they need to create something that generates income for them.

    I think this is so key because this is what I did this year. I created an opportunity for people to invest which then kicks back money to me for creating the opportunity. This passive opportunity funds my savings. I don’t spend the money but the real estate and stocks instead bring me cash via rents and capital gains that surpass what most people can save from their working income. Instead of cutting back on my paycheck spending I used my mind to create something that saves for me. Every quarter I get cut a check that is more than what those Instagram ballers have put away in savings and I didn’t have to pinch pennies to do it.

    It is hard to save money from your check. You wait two weeks without any income and then you are expected to fund life and save money out of that two week check. This is foolish. A better way is to create an investment that does the saving for you. Let tenants fund your savings not your hard work.

    My assets pay my debt

    Another key thing is that I don’t plan on working and using my paycheck to pay off my are student loans. Instead my business and my investments pay my debt for me. In one week your business can generate thousands. In one week my business DOES generate thousands. This is more money than you could ever make clocking in and getting talked down to and being told you aren’t good enough by people who just want to protect their position at the top.

    If you do that math, you could be working forever to pay off your student debt. Or you could do a few flips and pay off the debt in two years. One flip can get you out of student loan debt. Or you can sit around doing what is easy and paying the minimum payment forever. It would seem as though the wiser move is to build a business that can generate 1k a week or even 1k a day and use that money to set you free.

    This is why you see business owners that own a business end up owning their property free and clear. The massive income from the business paid off the real estate so you get a double bonus. A paid off property and a thriving business.

    You will never get out of debt if you plan on doing it with your wages. Be like me and use your assets to pay your student loans, your mortgage and your credit cards.

    $10,000 turns into $100,000

    This right here is key. The skills, connections and wisdom you gain in business in year one that might make you 10k are going to be amplified in year two and year three and beyond. Pretty soon you are the go to person when people think about event planning or taxes or whatever.

    For me, I started out hustling for clients and having misfired prospects and leads that fell off and now all those leads are circling back. In the beginning you do a lot of work and are underpaid and in the end you do very little work and are overpaid. I would rather work hard for freedom later than just work hard and never get a shot at freedom.

    The point is that what seems small now will grow and when it does grow you will see massive wealth that you can’t even wrap your arms around. Every major company that you see started small. What is small can become big if you give it attention. Don’t be afraid of starting small be afraid of never starting.

    That $10,000 will fund that Hawaii vacation that you have been talking about for years. That $10,000 will pay off your student loans in four years instead of 20. That $10,000 will soon replace your job and eventually allow you to create jobs for other people. Your job is to choose yourself and start creating your brand. Don’t count on your job to save you. Thats not what jobs are for.

    Your boss determines your salary but he doesn’t determine your income. What you do in the after hours and weekends determines how much you will really earn.

    If you are interested in learning how to invest long distance email charles@capitaltodd.com

    I encourage you to invest with us and join our partnership.  We are doing a great work and if we keep up the pace we can be into twelve doors before the middle of next year.  We are also going to buy a truck by midyear.  If you want to form your own contact us for a consultation and we will walk you through the process.

    If you are interested in investing with our club on either the stock or real estate side we would be happy to welcome you into the partnership.  Email membership@capitaltodd.com today to join.

    We have an amazing course that will teach you all you need to know about how the stock market works and you can find that here: https://www.udemy.com/what-they-didnt-teach-you-about-money/

    Thanks for reading!

    Be great, invest well,

    Todd Millionaire

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    Scarcity is a myth

    This weekend in Watts I was met with a story about how a customer of this black owned business was assaulted. Someone snatched a chain from a stranger. This is happening, in 2019, in Watts, black against black stealing. This is a very common thing in Watts though. It is something that has been happening over the five years that I have been working with this family.

    This immediately triggered a thought of scarcity. A lot of people in the African American community operate from a position of scarcity. This is the mindset that the world has limited resources and that life is zero sum, meaning you have to take something from someone to get something. This thinking is what pushes people to value the accomplishments of individuals as opposed to the group. We have been taught to think that there are only a few spots at the top and thus your job is to beat out other people to be that one person that can get out of the hood.

    To that, I say, that scarcity is a myth. There is enough opportunity out there for us all to win. I need you to internalize that.

    The truth is that wealth is created. This is why Jay Morrison always says that money is not your problem and neither is credit. Those are only problems of people who don’t know things that they need to know. There is no shortage of money looking to fund a GOOD deal. We don’t have money or credit problems we have strategy problems. Money is all around us.

    Look around the room you are in and all the things inside it. The computer, the chair, the clothes you are wearing. There are people making money off everything around you and the things that make up the things around you. We, unfortunately, don’t see it because we were taught to only see money one way and that is through a job.

    This is unfortunate because all of us are looking right over money making opportunities because they don’t come attached to a paycheck. I was at the mall at my weekly lunch with my wife when I saw an Asian dude driving a truck branded with his cup company. The guy has a company that makes cups. Plastic cups and they sell them to different businesses. I was blown away. That is the kind of businesses we should be pursuing. The non obvious, less glamorous, boring business. There is wealth in boring and non glamorous.

    New money: Expansion is endless

    The important thing for people to realize is that you don’t make money you create money. You create it with ideas. Your ideas then can command a dollar figure. Because there is no limit to the amount of ideas you can dream up there is thus no limit on the amount of wealth you can create.

    This means that the solution to your money problem is by creating the solutions to your problems. If you see a ghetto that has trash and grooming issues that are keeping down the property values why not create a trash service and a lawn care company that maintains the appearance of the neighborhood? If you know students struggle in math why not create an after school program to tutor them on math? We have a host or problems which is a blessing in disguise. In creating those solutions you create wealth.

    The purpose of this post is to encourage people to see beyond the 9-5 and to see beyond the zero sum. There is enough money in America and the world for us all to do well financially. If we focus more on creation than we do on taking. If we focus more on giving than we do on receiving. The growth is in your building and your giving not in your taking and expecting. Tap into the power of abundance by choosing YOURSELF not by choosing a job.

    If you are interested in learning how to invest long distance email charles@capitaltodd.com

    I encourage you to invest with us and join our partnership.  We are doing a great work and if we keep up the pace we can be into twelve doors before the middle of next year.  We are also going to buy a truck by midyear.  If you want to form your own contact us for a consultation and we will walk you through the process.

    If you are interested in investing with our club on either the stock or real estate side we would be happy to welcome you into the partnership.  Email membership@capitaltodd.com today to join.

    We have an amazing course that will teach you all you need to know about how the stock market works and you can find that here: https://www.udemy.com/what-they-didnt-teach-you-about-money/

    Thanks for reading!

    Be great, invest well,

    Todd Millionaire

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    Manic Monday: Weekly Update

    Greetings Members, 

    Happy Manic Monday to you all. Hope this week fine you all week and I’m good spirit. We are in historic times this week as a federal government shutdown has become the longest in the country’s existence. Hundreds of thousands of federal are being deprived paychecks while still coming to work and millions more are at risk of losing federal government assistance programs in a game of politics one upmanship. I hope none of you are suffering as a result of these perilous times but if you are we collectively as a group hope this standoff ends soon for the sake of human decency. 
    Club Update
    On this past Friday, Charles and I, took the first initial steps to put some of the investment club’s capital back in the financial markets. But being a subscriber to Jim Cramer school of slowly build your full target position it was only a portion of the entirety of the funds. We invested $10,000 into the six stocks voted on back in November covering five sectors of the economy. This strategy will continue over the coming weeks in a effort to not only maximize how many shares we amass but to alleviate some of the risk with the current volatility. 
    In addition, we will also be adding to the $50,000 total we currently have by getting back to our monthly contribution schedule. For those new to the group, our monthly contribution schedule and deadline coincides with our monthly call, in an effort to make everything more streamline. Our contributions tiers vary from $25-$100 monthly. And the contribution are made to our Voleo platform account. 
    I have also been receiving your messages in slack as well as your email in reference to need slack links and invites to Voleo. I have sent the link to several of you with varying success. Please let me know if you still need the various links so we can get everybody involved as quickly as possible. 
    I also wanted to remind you all that we are having our monthly call tomorrow (Jan 15, 2019 7:00 PM Pacific Time).  On that call we will briefly touch on the stocks and real estate and then open up up for questions.  We will also explain how the club works since a lot of people are new and aren’t up to speed on how we operate. Link to meeting: https://zoom.us/j/655241894

    In Conclusion

    Information from this weekly email is not intended to be investment advice or construed as a recommendation or endorsement of any particular investment or investment strategy, and is for analysis  purposes only. Be sure to understand all risks involved with each strategy, before attempting to place any trade.Per usual hope you all have a great and prosperous week and an even better investment week. Will talk to you soon!! 


    Jamaal W Vetose 

    President 
    Todd Capital Investments 

    Appreciation v Preservation Pt: Different Government & Corporate Bonds

    This is the fourth part of our introductory series in Appreciation against Preservation. And we are nearly done all of our info on the bonds side. Today will focus on the various bond issue or create by corporate and governmental bonds. Bonds come in many different varieties, and here we will cover just the most common types.

    Governmental Bonds

    These types of bonds can be issued by national and federal governments as well as local city and state government agencies. At the federal or national level, these types of bonds are know as “sovereign” debt, and as backed by said nations ability to tax its citizenship and/or print its own currency. In the U.S bonds are classified according to the maturity timeframe set. Bonds maturing in a year or less are generally referred to as “Bills”; one to ten year old maturity dates are referred to as “Notes” and are only actually called “Bonds” if they mature after a ten year target date.

    All debt issued by the U.S. government is regarded as extremely safe, often referred to as “risk-free” securities, as is the debt of many stable countries. The debt of developing countries, on the other hand, does usually carry substantial risk.Credit ratings agencies also rate a country’s risk to repay debt in a similar way that they issue ratings on corporate bond issuers. Countries with greater default risk must issue bonds at higher interest rates – which essentially increases their cost of borrowing.

    Municipal bonds also known as “munis” are bonds issued by state or local governments or by government agencies. These bonds are typically riskier than national government bonds; cities don’t go bankrupt that often, but it can happens. For example, some years ago the city of Detroit declared bankruptcy and all bond holders loss BILLIONS of dollars. Back in the 1970 the city of New York City almost nearly declared bankruptcy as well. So thought municipal bonds are safer than Corporate bonds they are risker than federal issued bonds.

    Corporate Bonds

    The other major issuer of bonds are corporations, and corporate bonds make up a large portion of the overall bond market. Large corporations have a great deal of flexibility as to how much debt they can issue: the limit is generally whatever the market will bear. Short-term bonds from corporation are labeled as such if they are under five years. They are then labels intermediate if they go five to twelve years and long term if over twelve years. Corporate bonds are characterized by higher yields than government securities because there is a higher risk of a company defaulting than a government. The upside is that they can also be the most rewarding fixed-income investments because of the risk the investor must take on, where higher credit companies that are more likely to pay back their obligations will carry a relatively lower interest rate than riskier borrowers.

    In closing, bonds are both a preservation tool for capital appreciation already obtain then other investment vehicles. But if you choose the more risker bonds like “Munis” or the even risker corporate bonds you can also get some capital appreciation as well if you’re willing to take the risk. Whatever the case bonds should definitely be in your investment strategy. Stay tune for the next part of this series coming soon.

    Jamaal W Vetose

    President

    Todd Capital Investment

    Never Tell Yourself No: Jay Morrison’s Jay Walk episode 1

    2yD7BRE1_400x400Recently Tulsa Real Estate Fund founder Jay Morrison started a new video series on Youtube called Jay Walk. It’s his way of giving advice to the Black community on how to maneuver successfully in life and business. The first video in the series was called “Never Tell Yourself No!” (click here to watch)

    I thought it was really good advice and needs to be shared. This is a concept that most of us need to internalize. I know that I need to.

    Here are the key takeaways:

    Never quit before you start

    This is the major point that Jay is trying to make. Never telling yourself no doesn’t mean go out and buy yourself whatever you want on impulse or never delaying instant gratification.

    What he meant was that you should never give up on something you want to achieve before even trying. Too many people don’t try big things because they talk themselves out of it. Personal development expert Brian Tracy says that people attempt their goals an average of less than one time.

    Less than one time.

    That’s crazy.  People quit before they even start. This is due to a lack of self confidence.

    Don’t let that be you. Continue reading “Never Tell Yourself No: Jay Morrison’s Jay Walk episode 1”

    Should you require your tenants to pay rent if they are impacted by the government shut down?

    Right now the talk on IG is whether people with rentals should require their tenants to pay rent if they work for the government and therefore aren’t getting paid right now. To that my obvious answer is yes. Why? Because business is business. As a landlord you must always be firm on your tenants and run your rental property business as just that, an exchange of a service or a product for money. This will teach your tenants to respect your rules, and it will also teach them to improve themselves. You are not doing anyone any favors by going light on them.

    Despite the obvious YES, there are some realities that you must face as a landlord. Just because you require them to pay the rent doesn’t mean you will get it. If they don’t have it to give to you then you can’t get it. Then what are you going to do? Bills still must be paid and obligations must be taken care of.

    The successful landlord prepared for this. The successful landlord has reserves. The successful landlord has insurance and can weather the storm. The unsuccessful landlord has thousands in mortgage payments that must get paid. What are they going to do?

    Depends on the state you are in

    Something to consider is the state that you are in. You have to abide by the landlord tenant laws in your state which can determine what you as a landlord can do and how long it will take to do it. Some states are slower to evict than other states. Some states allow you to turn the unit in less than thirty days.

    Here is a list of landlord friendly states: Texas, Indiana, Colorado, Georgia, Kentucky, Mississippi, Arizona, Florida. These states allow landlords to quickly wield their rights when there is a lease violation.

    If the tenant can’t pay but you can’t timely evict you will be forced to then figure out how you are going to pay the mortgage. We recommend using cash for keys and paying the tenants’ moving expenses to leave. You can also just wait out the process and hope the government solves their issues as they always do and avoid losing a good tenant. Again, just because you require them to pay doesn’t mean the money will magically appear. You might just end up waiting just like them.

    Something to consider is that if you were to evict them they have a great case because their loss of income is outside of their control and the fault of the government. You might just be in bed with them while you wait it out together.

    That said, being a landlord requires responsibility for the unknown and the unfortunate situations that people you depend on find themselves in

    I can’t say this enough but as a business owner it is your responsibility to have cash stashed just for the sake of having cash stashed. I read somewhere that Berkshire Hathaway, Warren Buffet’s company, always keeps a large hoard of cash. Currently that amount is 111 billion dollars. They do this for a reason. They do this to protect their investments and they do this to take advantage of opportunities that present themselves.

    Now don’t just assume that all business owners understand this principle. Most are flying by the seat of their pants. Most have success but can’t protect their success. Don’t be like these business owners. Be the smart business owner that makes money for the sake of making it not for the sake of spending it.

    Doing business and hoping everything goes right while you have slim margins is a way to lose your shirt WHEN the market corrects. I didn’t say IF.

    Business interruption insurance

    The beauty of being in business is that you can insure almost anything. It costs you money but it also protects your position at the top.

    Business interruption insurance continues to pay the bills in the event that your business is unable to. This is helpful but this isn’t the solution to a long term downturn like I expect. It is also not likely to cover your business unless a government shut down can be considered a natural disaster.

    There are other options though.

    Rent Loss Insurance

    Rent loss insurance replaces the income lost due to damage beyond your control.
    Rent loss insurance is available from most major property insurance companies. While the insurance covers you if your property becomes uninhabitable through no fault of your own, it is important to understand under what circumstances rent loss insurance kicks in, and what it will not cover. Rent loss insurance will not cover damage due to owner negligence. 

    Rent Guarantee Insurance

    Rent guarantee insurance is similar to rent loss insurance, but the tenant is the one who pays the premium. Relatively new in the United States, rent guarantee insurance has been available to British landlords for decades. Rent guarantee insurance is most often used in situations in which a tenant doesn’t have the credit score necessary to rent a pricey dwelling or they haven’t worked at their job for very long. If the tenant is otherwise a good candidate, the landlord may stipulate that the tenant pay rent guarantee insurance.

    If you have a mortgage on your rental units, your lender will likely require you to carry rent loss insurance just as it requires property and liability insurance.

    As a business and property owner it is important that you protect what you own and what you build. Its not enough to become successful and wealthy you must also put as much effort into protecting what you have as you did to obtain what you have.

    If you are interested in learning how to invest long distance email charles@capitaltodd.com

    I encourage you to invest with us and join our partnership.  We are doing a great work and if we keep up the pace we can be into twelve doors before the middle of next year.  We are also going to buy a truck by midyear.  If you want to form your own contact us for a consultation and we will walk you through the process.

    If you are interested in investing with our club on either the stock or real estate side we would be happy to welcome you into the partnership.  Email membership@capitaltodd.com today to join.

    We have an amazing course that will teach you all you need to know about how the stock market works and you can find that here: https://www.udemy.com/what-they-didnt-teach-you-about-money/

    Thanks for reading!

    Be great, invest well,

    Todd Millionaire

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    Partial Source (https://homeguides.sfgate.com/rent-loss-insurance-36247.html)