David Finkel's Wealth Blog: May 2007

Wednesday, May 23, 2007

Five Lessons from Maui

Hi everyone,

I can't wait to see so many of you in about 2 weeks at the "How to Build a Level Three Business" workshop in Phoenix. I've been wanting to teach this workshop for over a year now and can't wait - especially the part on how to take an expertise or professional skill and residualize it.

When I do these seminars, there is bound to be one question that I get asked again and again from people I talk to at seminars or during interviews is "What is this Maui thing anyway?" If you're new to my emails you might be wondering the same thing.

Let me tell you quickly what Maui Mastermind is. It all started from a mastermind group that I attended with my future business partner Diane Kennedy. We hadn't yet gone into business together but soon found that we had many of the same philosophies about business. That first mastermind that turned into the Maui Mastermind event started in 2003. We wanted to create something where we could invite special select clients and customers to spend 5 ½ days with us in a beautiful tropical location.

Everyone in the room had to qualify to be there. They had to be people that we liked, or we knew we would like once we got to know them, and they had to be people we want to have our families around. The attendees needed to all be people that have already proven they are "do-ers." These were the type of people that were willing to take action when they know a deal is right and were willing to work to make it work. Then, we completely opened up our rolodexes and shared contacts, just like everyone else in the room did. Attendees left with at least three mastermind groups with a single purpose - to each make a separate one of their dreams come true in the next year!

We also give money to charity. A lot of money. In the first year, $100,000 went to charities around the world. That represented 20% of the total receipts from the event (before expenses).

One of our mottos in Maui was to always supersize a deal. So in 2004, we took the charity amount of $100,000 in 2003 as a challenge and created $479,000 in donations by learning how to generate time, talent and money for causes nearest to our heart. Every year the bar was set higher until we hit where we are right now. In 2007, we're on track to raise over $4,000,000. It still amazes me when I think about the huge impact that amount of money can have in the world, especially when it's coupled with the heart and passion of people who really care.

The real difference happens for the people who attend. Here's what just a few attendees had to say:

"I hope I don't sound too much like a late night infomercial! It's hard not to since Maui and all the changes that have taken place for us.

More than anything else, Maui made me realize that anything – financial or personal can be accomplished if you believe in it and work hard at it. We are in the process of 1031 Exchanging three properties in CA with a total of $1200 a month cash flow to investments that cash flow $14,000 a month with NO money out of pocket.

Our net worth has almost doubled since that first Maui.

For others who are considering Maui I would recommend going when you are ready to change YOUR reality and look outside YOUR box. Also be ready to stretch your mind in 5 days like you never have before. It's an amazing 5 days that cannot be completely described but has to be experienced."

Dean and Kara B, San Diego

How much would you invest to receive $14,000 per month in passive income? Could you quit your job? Travel more? Live a dream you've always wanted? That's just one of the stories we've heard from Maui.

Maui Transforms Your Reality

We have a saying that nothing is impossible in Maui. Imagine spending a week with people who encourage you to dream bigger, to have more, to actually be more and to live out a life that is full of purpose. It's truly wealth in the biggest, juiciest sense.

Now imagine having those people as friends, holding you accountable, for the rest of your life. For some people that's the biggest reason that they are willing to do anything to be part of this elite group. They understand what it truly means to invest in themselves and get tremendous results.

Over the past few years, I've sent out other emails that talk about the lessons and secrets of Maui that contribute to the huge success that people like Dean and Kara have experienced. If you've received those, you probably remember that we talk about how this event isn't for everyone. In fact, the huge context shift can cause some problems for someone who likes things to stay the same. If you go to Maui, you will never be able to live the same life again.

The Maui Quitters Club

The Maui Quitters Club is one club you may want to join, and soon. It's made up of all of the people who quit their job after attending Maui Mastermind. In fact, more than 80% of the attendees who work for someone else (and want to quit) do so within 6 months of attending Maui Mastermind. Every year, we're adding more members to the Maui Quitters Club. They might not have known they wanted to quit or even understood that working for someone else often gets in the way of making money, but after that first Maui experience - they get it. And that's why so many people join the Maui Quitters every year.

Sometimes the success you get from surrounding yourself with a new network that knows how to take time out of your busy life to focus on taking your business or investments up five levels comes even faster than you expect. That's especially true when you put yourself on a collision course of wealth with a group of people who care about each other and have the courage to hold each other accountable. In the case of Chris and Cindy, they both identified their ideal life and made it come true in less than two years.

From an email check-in from Chris and Cindy:

"Huge changes are being made! Chris and I will be moving to Costa Rica right about the time of the Mastermind this year. We didn't think we would be going so soon but circumstances have changed and we have some opportunities available to us, so it's time to go!"

What happens when you find a once in a lifetime opportunity?

I have a very rare opportunity to tell you about. First though, let me tell you that Maui Mastermind always sells out months (even as much as a year) in advance. We only hold one event per year. And we already have a half dozen people on the wait list for the 2008 December Maui event.

Now here is the opportunity. We are adding a SECOND Maui Mastermind this year. Diane and I made the promise to the Maui group a long time ago that we're not going to increase the size of the Maui Mastermind to handle the demand.

But, we had a problem. When over 80% of our attendees end up coming back year after year, that means there are very few seats available for new people to join. That's when we made the decision to add another Maui Mastermind 2007. The only difference is that we're doing it in Kona! There is something about Kona that just feels different from Maui. You're closer to nature - it's where land is being created practically every day from an active volcano. Of course, we're staying at a luxury hotel, just like before, but there is a certain more "rawness" to the surroundings. It's for the adventuresome, who appreciate being around nature where sea turtles come out at night.

And maybe the best thing of all, this is a new event, so the seats aren't all taken! It'll be more intimate with more time for us to all get to know each other. We'll have some of our Emeritus Maui people, new Maui Stars and a beautiful setting to build a bigger, better life in the fullest sense of the word.

In a few minutes, I'll tell you what you need to do be considered for this opportunity. Before I tell you that, I want to say that I totally understand that this event is not for everybody. It's very scary to look at making a leap like this. Still there are things we can learn from Maui. I want to share five more lessons from Maui.

Lesson #1: Lack of Opportunities is Not the Problem

You might have heard Diane tell the story of her son David that they adopted a little over 2 years ago. If you have a teenager (or remember being a teenager), I'm sure you can relate to this statement: Being around a teenager means you never quite look at anything the same again.

One of the things I've learned from little David (he’s not really that little, but it keeps us separate!) is what it means to fit into a society where you know longer have to be in constant survival mode like he was in most of the Mexican orphanages he'd been in before. One of the key factors is how important the reticular activated system (RAS) is making changes.

It was interesting for me because I'd heard about RAS before. For a child (or adult for that matter) who has existed in a survival state for too long, they've disconnected from logic and RAS. There are a whole series of exercises that tune the RAS back in because it provides the focus necessary to turn an idea into an action. But, interestingly enough, I'd also heard about RAS earlier in another way.

RAS provides that funny little phenomenon that occurs when you suddenly become aware of something. For example, I bought a new car (or rather, my company leased one - that provided the best tax advantages). Suddenly, there was that same kind of car everywhere I looked. My RAS had been activated to show me that type of car.

Once your RAS for deals and opportunities is turned on, you simply can't turn it off. There are deals everywhere! If you've ever lamented that you can't find a real estate deal to cash flow or can't take your business to the next level or can't invest without having money - then your RAS isn't tuned into working for you.

After Maui, your RAS will be set to look for deals. Your new concern will be that you might just choke on opportunities. Let me say that one more time:

After Maui, your biggest problem will be taking advantage of too many of the opportunities you'll hear about.

Once your RAS is set up to find opportunities, you'll be flooded with new possibilities. That's one reason why Maui attendees come to Maui again and again – the deal flow that occurs between mastermind partners. Don't worry if you don't have a deal– someone else is sure to have more than they can handle!

Stephen and Susan, from Colorado Springs, will also be attending and teaching at the new Kona "Maui" Mastermind. Here are some of things that happened for them after the first 18 months of attending the first Maui:

1. Bought office space and outgrew it within 6 months.
2. Hired 6 new people.
3. Became a national speaker
4. Have added 80 new leases to our passive income business
5. Bought 10 foreclosures
6. Bought a personal vacation home just 200 yards from the beach
7. In 18 months, have netted $1.2 million
8. Increased cash flow to $9,500 net per month.

And, my favorite:

"We have the passion to help others achieve this too. We want to take at least 5 people to this same level of success."

Stephen and Susan, Colorado Springs

Stephen and Susan now do huge real estate projects, partner with real movers and shakers in the real estate world and Stephen is requested to speak at events all over the world - fulfilling a long held dream for him.

Wow! How would you like to hang out with people like Stephen and Susan for a week in beautiful Kona? And, then leave, knowing that you've made lifelong friends with people who truly do what they say they will do and who want to be part of your own personal mastermind.

By the way, Stephen had his own personal challenge for the Maui Mastermind group

"The big question still lingers: who will be the first billionaire to come out of Maui?"

In a bit, I'll explain what it will take to qualify for our new Kona program. If it's not right for you right now, that's perfectly okay. In fact, with the standard that Stephen and Susan and the rest of the Maui alumni have set, Maui isn't a good fit for most people. Maui Mastermind is for proven "do-ers" who are ready to face the next step to take their business and investments up not just one level, but five levels. And, yes, it might be necessary to take that leap with a queasy feeling in your stomach. That's what it means to move outside your box.

Lesson #2: Maybe Your Dream Isn't Big Enough

Many come to Maui looking to make their dreams come true. After all, isn't that what we say Maui is about - making people's dreams come true? Picture that dream you have for yourself and your family.

Now, here's the rub: what happens when you reach it?

Sometimes you find that your dream isn't big enough. You need a new dream. For some people the dream right now might be to create a passive income stream of $10,000, $20,000, $50,000 or more per month. What happens when in the year after Maui that you've created that? What do you do with the rest of your life?

There can be a sense of loss, because you've spent your life wishing you had that and then when you have it, you don't have a new goal.

One of the lessons that I've seen played out, again and again, is the need to make sure your dream is big enough. And, it's often a good idea to have more than one dream.

Our attendees have seen how the impossible can become possible when you put fully intentioned people on purpose with finely tuned skills and group accountability. That's why Maui works.

The second secret of Maui is learning how to supersize your dreams, as well as your deals, so that you fully live life. And, of course, always have a back-up dream.

Lesson #3: How You Live in Your New World

Let's fast forward 14 months. You attended the Kona Maui Mastermind event and in 6 months have completely changed your life. You now have less than 6 months to go for the next 2008 Kona event. Of course, part of the Mastermind experience is all the Maui Mastermind alumni events. You've gone on a fun vacation with your Mastermind friends and you've attended roll-up-your-sleeve deal flow weekends. There are plenty of opportunities in your new world. The secret is wisely choosing how to spend the 10 hours or so per month you work.

In fact, if you're like most Maui participants, you simply don't have time for your old job or business, at least not run like you did them before.

You might actually experience some cross over from your old life and new life. Some people are able to jump feet first into their new affluent lifestyle and for others, it's more difficult. How can you make the dreams of your friends and family come true, too?

This is a critical juncture in determining the rest of your life. Some people get stuck and live less than they can, simply to avoid making other people uncomfortable. Maybe they hide their wealth and don't talk about their activities and deals.

Still others find ways to help the people they care about make positive changes in their own lives,

That's the case of Tom and Christine, coming back for the fifth year in Maui. They don't want to leave their friends and family; they want to bring them along for the ride!

They explain how Maui Mastermind helped them reach their financial and family goals:

"We are teaching financial literacy to our grandson, 13, and our married son and daughter-in-law. We've made more like-minded friends. Some have even moved to Tucson to work together. Plus, we have a brand new partnership - something I would have not have predicted before Maui.

Oh, and our net worth increased over $3 million in that first 18 months after Maui."

Christine and Tom, Tucson, AZ

If you are the lucky person to get one of those final ticket for the Kona Maui Mastermind, you'll find that you start to judge everything as "before" Maui and "after" Maui. In fact, my partner David and I stop making any long-range decisions in the few months before a Maui event. We know that our context will be changed and whatever idea we might have for our business or investments will be "super sized" by the Maui experience.

Whatever you choose to do with the tremendous knowledge, context change, friendships and mentors you receive in Maui, one thing is certain. Your life will never be the same.

That's the third lesson from Maui. How will you live with the change? Are you ready to fully embrace a more meaningful, purpose-drive life, creating your dream and the dreams of others around you? If so, you might just be ready for Maui.

Lesson #4: Too Much Time

Have you ever exclaimed, "If I only had more time!" Well, then you are probably looking forward to creating truly passive income. That's the income that comes in whether you are working or not, all for an investment of less than 10 hours per month.

Since success at Maui is defined as having total wealth, you'll learn how to create passive income streams and do it with less time. What will you do with all the time you'll create?

I've seen people who reached their success and could easily walk away from their work. But if they haven't solved the problem of what to do with their free time, they're going to have a major problem soon. I've also seen how people purposely self-destruct their business with bad investing decisions or bad hiring decisions just so they have a reason to get involved.

Imagine if you had a bigger purpose for your business and investments that allowed it to grow in a way that kept you interested and involved, but didn't consume your time. And, with all that free time you can now explore the things you've always wanted to do with your life. Plus, the things you've never even thought possible can now be real for you.

Even with that rosy future, it still might be hard to give up what you've always known - hard work - and exchange it for a life filled with possibilities and fun. Are you ready for that challenge?

In a second, I'll talk about Lesson #5 from Maui: the problem of too much money. As promised, though, I first want to explain what it would take for you to qualify for the last spot in Maui.

There are two steps to the interview process. The first step is for you to call Monica at 1-800-592-4769 and ask to be put on the interview list. Part of that step means that you're ready to immediately commit to the $30,000 ticket price with a credit card payment or by writing a check. To be honest, that step can be the one that makes you gulp. Without a doubt, $30,000 is a lot of money. We set the bar so high because we want only people who are fully committed to this event, to each other, and most importantly, committed to their own personal financial success. You'll then have an interview with David or with me. Just imagine if you're selected! You'll get to spend a week with people who have gone through the same interview process.

Lesson #5: Too Much Money

Who would think that "too much money" would be a problem? Yet for some people it is the biggest problem of all. Some people have been raised with the idea that money is evil and the more you have of it, the worse it is. They feel guilty for having more than others and so purposely hide their own wealth creating ability.

That's why the concept of Maui Mastermind is so intriguing to many of our attendees. We focus on what you can do with the money - the tremendous good you can create. And, by making that your focus suddenly it's okay to create the most wealth possible in your life.

Like one of our Maui super stars, Beverly Sallee (an international business women with companies in over 40 countries) says, "Make a ton of money and give it all away!"

One of the benefits of the Kona Maui Mastermind is that you get to meet with like-minded people who have accomplished success in their businesses and investments. And, what's more, they're looking for ways to make it even bigger.

Here's one little secret of a way to make it all make more sense. Consider the money you spend as "investments" not expenses. If every dollar you spend for yourself, your education, your family and your community now becomes money invested, you'll see that the value of the dollar increases. It might even change how you view the money you spend, and some of the choices you make. If you can invest money to provide a return in money, time, or peace of mind, then you've accomplished a lot - and so has your money.

This next section comes from the heart of Diane, my business partner.

You Hold the Answer to Someone Else's Prayers

This is something Diane shared with me in an email:

"I never realized exactly what that meant before Maui Mastermind. I'd like to share a deeply personal story with you. Some of you have heard it before, or maybe heard some of it. I hope you don't mind if I tell you again because the lesson for me was so huge.

"The end result of an intensive mastermind that I had with my mastermind partners was the creation of Maui Mastermind. But it had an even bigger, more personal impact for me.

"The charity piece was an important part that was built into the event from Day 1. We wanted to use the event as a vehicle to raise money for worthy causes. That first Maui 2003 raised $100,000 and we let the people who attended pick the charities. We do the same thing now. One of the Maui Masterminders at that first event suggested an orphanage in Juarez, Mexico. The checks were written and mailed and we kind of forgot about what we'd done. That's when Amy DeMeritt from our staff called up the recipients to inquire about the impact that had been made by the gifts of Maui. When Amy spoke with the director of the orphanage, Sergio, Amy was blown away.

"There was a property dispute and they were going to get evicted from their current building. Sergio didn't want to ruin the kids' Christmas and so he let them celebrate the holiday without telling them. His plan was to tell them at the end of December that the orphanage was shutting down. Chances were that most of the kids would then be living on the streets, separated and abandoned again.

"The check for $10,000 from that very first Maui Mastermind arrived on December 26th. It was enough for them to get the building started. No one lost their home that year and in the years since, the property has grown with volunteer work and more donations.

"That amount that meant so much to those kids in Juarez was really not that much - $10,000. But, for me it was even bigger than that. When we went down to visit the orphanage, my husband Richard and I met the boy who would become our new son, David.

"At that visit Sergio told me that we were the answer to their prayers. And, for me, I got the answer to my prayer in the wonderful son we have now.

"You never know what can happen in your life when you expand it in ways that improve your life and the lives of others. That's what we do at Maui Mastermind, together with a network for friends that create lifelong ties."

Earlier, I've explained what it takes to qualify for those final seats at the Kona Maui Mastermind. If you're ready to take the personal challenge to move your business and investments to a higher level and reach your dreams, then don't hesitate. Call Amy today at 1-888-889-0944 to learn more about the July Kona Maui Mastermind.

Best regards,
David Finkel

P.S. Want to know more about Maui Mastermind? Listen in on the interviews from WS Radio about Maui Masterminders and their business successes, life lessons and charitable projects. If you're like me, you'll laugh, cry and be inspired by the deeply personal stories. Please listen in at Maui on WS Radio.

P.P.S. If you haven't been to our brand new website, www.MauiMillionaires.com, take some time to look around. There are even more stories about Maui Masterminders and what they're up to these days.

P.P.S. I know it's short notice, but if you've ever wanted to be part of a once-in-lifetime event like that very first Maui Mastermind in 2003, if you see the value of surrounding yourself with proven "do-ers" and successful people who know how important it is to live every day doing something that brings out the best in you - then please don't wait. You know if Kona Mastermind is right for you.

Creating Cash Flow

Hi:

Heather and I are in Africa for a few more weeks still. In Rwanda, we saw solar-powered building projects, orphanages and a lot of hope in a country that was nearly wiped out 13 years ago when 1 million people were massacred in 3 months. We traveled here with a group of Maui Masterminders, dedicated to tackling the challenges in this growing nation. I'll have more stories when I'm back from the US.

Meanwhile, I asked my partner Diane Kennedy to write this week's wealth-building tips. We should have our new website up any day now. For now, when you click through on the links below you'll be taken to Diane's Tax Loopholes.com site. If you've never registered before, you'll be asked for your email address to view the articles. There is no charge for this. Although Diane's site does offer a $9.97/month membership for more detailed content (including access to the TaxLoopholes archives), a large portion of the current content is always available for free, by signing up as "Loopholes Lounge" member. If you have any problems reading the files or getting registered, please drop us a note to amy@mauimillionaires.com, and Amy will be glad to help you.

From Diane:

David and I spent a day in San Diego at the Creating Cash Flow going through over 50 strategies to create cash flow. These strategies fell into two different categories:

• Offense
• Defense

The Cash Flow Offense means strategies that get you more cash each month. If you have a business, this could be using a new strategy to collect on your accounts receivable (amounts customers owe you), changing your billing so you get paid upfront for services, or provide more value to receive more income. If you have real estate, this could mean strategies to fill up a vacancy, convert a rental to a rent to own to get better cash flow or improve the value of your property to raise rents. No matter what you're doing right now for income, there is one skill that will ALWAYS get you more cash - good negotiating techniques.

That's one of the subjects that we're covering in this week's wealth tips: strategies that will make you a better negotiator!

The other two strategies are Cash Flow Defensive moves. Face it, the single biggest expense most Americans face today is the amount of tax they pay. I'll admit that I'm biased here, but I think this is the single most impactful change you can make. If you can pay less tax, the difference goes directly in your pocket. You don't need to worry about paying taxes on it.

In this week's wealth tips, we'll talk about a strategy for business owners and real estate investors, using increased depreciation. Depreciation is the phantom expense that the IRS allows you take. When it comes to real estate, this is especially powerful because you might have a property that goes up in value (appreciation) but then the IRS comes along and says that they think it will actually go down in value (depreciation) and lets you take a deduction for it. Now is when it gets fun. The loophole strategies allow you to time when and how much you take in depreciation to get the most bang for your buck.

Depreciation is the second item we discuss in greater detail when you click through on the links below.

The third strategy this week has to do with the other big expense for Americans. In some cases, it might even be bigger than taxes. That's the amount of interest we pay. But, we're not talking about interest that makes you money. For example, if you buy a property that gives you a return of 10% and it costs you 8% in financing costs, then you have arbitrage. You make money off of the money you've borrowed. This is good debt.

There is another type of interest. That's the type of debt and interest that we're talking about reducing, and eventually eliminating, Compound Debt™. This is the debt that keeps growing and growing and is most often found with credit cards. The single biggest problem that gets people into the bad debt cycle is not understanding the Language of Money™, one of the five key languages to Financial Fluency™.

When you click on the links below, you'll be taken to the Tax Loopholes website. For each of these items, you'll find some valuable strategies and tips that you can use to increase you cash flow either on the offense or the defense. You'll also see a special offer that I want to take a second to explain. Each of these topics have a full special report on the subject. These are part of the Maui Mastermind Online/First Class Lounge. Along with 2-3 Special Reports each month, you'll also receive online workshops every few days (in audio or video format) on a range of wealth-building, tax-reducing topics. Maui Mastermind Online/First Class Lounge is a membership based site that is available for less than $10/month.

And, even better, your first 30 day trial membership is always FREE! When you sign up for Maui Mastermind Online/First Class Lounge today, you'll be able to read the complete Special Reports on these three topics. And, you can always cancel anytime, with no further obligation. But I hope you take some time to check out all of the other online workshops and material that are available as part of your full membership. Take your 30 days to discover the information we have.

For more information on strategies to improve your cash flow, click through on these topics:

• Depreciation for Smart Real Estate Investors
• Advanced Negotiating Secrets with David Finkel
• Breaking Out of the Level One Financial Trap

Something to Think About …

I have a 16 year old son, David. One time, for fun, my husband Richard and I did a calculation on how much he would be worth if we started buying a regular single family home each year and putting it in a trust for him. We'd use the least amount of down possible, use our best negotiation skills to get the best deal possible, and then rent it out for enough to cover the expenses. Other than that, we'd leave it alone. Based on the 20 year average for appreciation in our area, David will be worth $1 million by the time he's 21. And, we just started doing this when he was 14 years old. Of course, the key right now is to make sure it's locked up really tightly because I'm not sure a 16 year old will make the best financial decisions. But the other thing I learned from that is it doesn't take a big change to make a big change. Creating more cash flow, consistently over time, even if it's just a little bit at a time, can make a huge difference in time.


Thanks for reading everyone. We hope the ideas this week can help you get on the path to financial freedom and personal fulfillment.

Best regards,

David Finkel and Diane Kennedy

P.S. Each month we feature new Special Reports as part of the Maui Mastermind Online/First Class Lounge. If you're already a member, make sure you stop by to get your reports. They're jam-packed with strategies that can put more money in your pocket!