Kelly

[houseelf]

Rachel--



Glad to hear from you! Congrats on the wedding--there is nothing better than being married to your best friend.



I hear that Andrews Air Force base is nice. How do you like it so far? I know that Maryland has to be quite different from the West. By the way, congrats on leaving the corporate rat race, you will be better off for it. How did you become interested in real estate investing---the crappy stock market? It does seem to be the only reliable investment around.



Welcome back--I hope to see you more!



Kelly

Thanks, Kelly. It's ok here on the east coast. Reminds me of CA - smog, traffic, people always in a rush, etc. I'm very glad to get out of corporate America. It just wasn't for me. I'm an entrepreneur at heart. However, I did learn valuable skills such as networking and it was not a complete waste of time. As for real estate investing, I grew interested after reading the Rich Dad series of books as well as a whole slew of books on real estate investing. I have learned there are three vehicles rich people use to achieve wealth: real estate, stocks, and businesses. All of these give extreme leverage = speed. Only in real estate can you put a down payment for something that costs in the 6 digits. I plan to start out in real estate then move into businesses. My mentor has been extremely helpful. I don't really want to discuss too much here (would take up too much space), but if you want we can all set-up a chat sometime with Kris. Looking into finance and our investment future, I have decided to take control and build wealth for the both of us. How's the legal industry doing for you?

[houseelf]

Ooohh that sounds interesting. My best friend is into estate and financial planning for key employees of major corporations. She really loves it.



As for me, my heart is not in the law. I recognize this because I'm the only one of my colleagues who doesn't go to lunch and talk shop. I could care less. I enjoy Family Law the most but it really burns me out in the worst way. I honestly do not know how social workers do it. I see these people on their best behavior from a more distant vantage point and I am horrified. Ugh. I don't know if I could do this forever. Who knows what I will be when I grow up!



The books do sound fascinating! It takes courage to completely change careers. Was this a difficult decision for you?



kelly

Kelly, did you know that I was going to go into law in college? After my freshmen year, I took an internship in Washington, D.C. at the DOJ. After that internship, I completely saw how burned out all the attorneys were. The legal system is very slow in the U.S. In any case, I didn't want to end up like them. I wanted to do something fun! So, I came back after the internship and got nominated to run the program. The rest is history. I got into marketing and public relations. I did an internship at Fox and DreamWorks, SKG. Then, I also took a shot at being an entrepreneur in college - ran a resume and career consulting business. For the resume business, I did resumes for real cheap - $20 a pop - and received around 100 e-mails per week. It just burnt me out because I was working three jobs and going to school. Kind of crazy! So, I closed shop and started the career consulting business. I charged $20/hour. This time it was more like I became a psychologist to these people. As a college student, I only had one phone line so I gave that number out. So, I ended up having the students I consulted with call me at all hours of the day like 3AM (my room mates weren't too happy about that) and other students that were guys asking me out to dinner. I had no intention of being a psychologist because some of these people were psycho! So, I closed up shop and decided to do the website.



To answer your question about changing careers, I would rather own a business than be an employee of the business. After all things are considered, it is much worse for me to work for someone. There are so many people who are so involved with titles and being important as an employee. I've done that. I've had the title. I've been a corporate executive. I've dealt with the politics, the suits, the corporate b.s. And for what? A paycheck! Having a high paying job is not the answer to all money problems. It's actually worse because of the income tax structure. The more money you make, the more you're taxed. As an employee, you work, then get taxed, then get to spend what's left over. Rich people have corporations. In an corporation, your corporation earns money, then spends it, and then is taxed on what's left over. My whole perspective has changed. I had co-workers who I worked with bring in 10K-20K per month as an exec. After taxes, that amount was cut in half. In some cases, they got taxed as much as 60%! As for me, I'm not concerned with the title anymore. Being a business owner is not for everyone but I know it's definitely for me. I've had entrepreneurial endeavors since I was a little kid. When I first came to Maryland, I thought maybe I just need to get a job and do the real estate investing thing on the side. Then, I spoke to my husband and reminded me of Rich Dad, Poor Dad. The first company I applied for here was Coca-Cola for an account manager exec position. They called immediately and wanted an interview. I had to turn them down. The difficult thing for me was realizing that I had to help us get out and focus on achieving wealth. While my husband was in medical school, I was the one bringing home the money and supporting us. When I came here, I felt like if I didn't work then I wouldn't be supporting us. However, the military pays enough (even rent) and we have $ left over so I don't need to work. I've learned that I can always make money, but time you can never take back. To me, time is my most valuable asset. A lot of people think that money is their most valuable asset. However, money is not real. Money is an idea. That's all it is. In the old days, salt was a form of money. Now it's paper. They make so much every year at the Department of Treasury. Since I have learned that money is not real, I am more able to see things clearly. Well, I hope this answers your question. Feel free to let me know if you have any other questions. It's kind of hard to discuss this with people I know like friends and family. It's way over their heads and they would rather not discuss money. I don't blame them. In the Rich Dad series, Kiyosaki says that people are not taught about finance. In school, they are only taught about subjects but no one talks about money. It's fear about not knowing or wanting to know. I definitely recommend reading the book, if you're interested in investing in your financial education. Let me know if there's anything I can do to help.



-Rachel

Hey Kelly! Kris told me you were asking about me and to get in touch with you. Unfortunately, I don't have your e-mail address. We got married a few months ago, moved to Maryland, now we're just settling in. My husband has just started his first year of a residency program at Andrews Airforce Base. Everyone here seems really nice. As for me, I have decided to leave corporate America. I grew tired of the suits, politics, etc. Now, I am going into real estate investing. A few months ago, I read a book called "Rich Dad, Poor Dad" that changed the way I see money and finances. I have a mentor here in Maryland who has been very successful both in business and real estate. Anyways, just wanted to let you know! How are things going for you?



Take care,

Rachel

raye11@hotmail.com

[DCJenn]

Welcome back Rachel-



I was wondering where you guys had ended up. Andrews is pretty nice- I had clients who got their medical treatment there. (not to mention an ex-husband who was in the National Guard there!)



I'm in Maryland right now visiting my family. I don't really realize how much I miss this place until I come home!



You career shift sounds interesting. Good luck!



Jenn

Nice to hear from you, Jenn! We're in Upper Marlboro. The weather is ok, it's just the humidity and the bugs that I don't like! Hope your visit goes well!



-Rachel

I respect your views on working and getting a career, Kelly. I think it's great that your husband is very passionate about surgery. I think my husband has gotten a little of my "slacker" mentality because he's excited about what I'm doing. Our whole goal is to build up wealth so we can have time and go to the beach and sip our drinks with the umbrella! Ha, ha, ha! Honestly, it's a different way of thinking. I ask my friends if they have ever imagined life without working and they can't. It really depends on the priority of others. I believe that what we believe becomes our reality. People ask me all the time how I've come so far. I have always thought, "big." Thus, it becomes my reality. Anyways, my mentor will take me to a private investor to get funded. The key is to use other people's money. That's how the rich get richer. It takes too long to save with taxes being taken away. My mentor only had to put $94.22 of his own money on his last deal. Once he sold it to another investor, he made 50k - TAXFREE! That's the key word! Plus, this money goes under his corporation - so he can spend it and just get taxed on what's left over. Though this sounds exciting, to start investing you really need a strong foundation. If it were not for all of the books that I have read, then I would not start investing. There are so many people out there that call themselves "investors" yet they don't put the time or the effort to learn. The think they can just start buying assets and everything will come into play. To become rich you have to think like the rich, and know, truly know, that money is just an idea. You can always make more. I have that strong foundation so that is why I'm at the point where I can be serious about investing. With the move, we're still trying to get all our finances together. My mentor told me not to start anything until we have set everything up. That is my next step. I hope this information has helped you to see the importance of investing in a financial education. Let me know if you have any other questions!



-Rachel

[houseelf]

Rachel---Wow, I'm inspired! Some of your career choices are truly courageous. I'm what you could call a "don't rock the boat"/ rank and file type of worker. I don't know if I would ever have the guts to strike out on my own. Your story is pretty amazing.



I enjoyed your commentary about money. Years ago a dear friend of mine challenged my thinking about money when she chastized me for being secretive about my income. Ever since then, I have been somewhat forthcoming about my finances because I realize that my paycheck does not define my worth, value, or ability. Truly, income is just a function of economic demand and supply curves. Otherwise, we'd pay teachers millions and baseball players nothing. People will talk about their sex lives before they discuss their money. What a distorted value system!



Perhaps part of my problem is that I view work as ...well a job. It is the vehicle that allows me a measure of personal satisfaction and helps to support my family all at once. In contrast, one of my hubby's greatest passion is surgery, even if it conflicts with his personal or family needs. Our distinct vantage points on our careers has caused both enlightening discussions and a few heated words. I have learned to at least respect his point of view and realize that we are both partially correct.



Best of luck with your new career endeavors. How are you getting this business off the ground? Are you seeking venture capital or partners? I'm VERY intrigued! Keep us posted.



Kelly

Hi there Rachel!!



I hope you don't mind me jumping the conversation, but when you speak of a mentor, are you speaking of a menotr of your business or financial planning? My husband & I are at the beginning of our financial planning and I am really encouraged about all of it and am learning much of what you have mentioned. I too have recently begun to see Money in a whole different light.



I would love to talk with you about your endeavors. Can I email you?



Sincerely,

Christy Phares

Hi Christy,



My mentor helps me in my real estate investing, not my overall finances. If you are interested in getting help from someone for you and your husband's finances, I recommend looking for a good certified financial planner (CFP). This person should focus on your overall situation, not their financial products. The last thing you want to do is spend your money on products that won't help you. What you invest in really depends on you and your husband's degree of risk. A lot of working people are putting money into mutual funds. Take the time to assess your situation and what you want to do. When do you want to retire? What are your future goals? How much do you need to retire? When you retire, where will your income be coming from? Hope this helps! Feel free to reply here or e-mail if there's anything I can do to help.



Take care,

Rachel

Rachel, thank you for your response. Now, are there independent CRF's or are most of them associated with a certain network? Well, right now we are working with one which has shown us the whole pyramid thingy...LOL!! We have just begun the investing process. I keep hoping and praying we are doing the right thing. That is why I am so intrigued by your comments. We feel good about what we are doing, but I have that cautious side of me too and don't want to be scammed or anything.



Thank you so much again! Yep, we have already started talking about life insurance policies, retirement, and education for the boys.



Christy

Hi Rachel!!!



We were referred to him from an attending physician that my husband works with. He works with some of the physicians throughout the area. I'm going to call him tomorrow and find out more about him. I know he told us he was going to school for a few letters behind his name, but for the life of me, I can't remember which letters they were. Let me find out. I'll write tomorrow!



Thanks so much,

Christy

Christy, make sure you're working with a Certified Financial Planner with a CFP. This certifies them and they have to have on-going education. Regarding networks, it really depends. If you are looking for one, I suggest asking for referrals to people you know. Then interview your potential prospects and ask for a list of references. They should be able to provide this to you. If not, they are hiding something and move on. You will not get ripped off if you carefully screen prospects and these prospects are referrals from people you know who work with them. The reason being is that if they screw you, then you know their clients (your friends). They would not want to jeapordize their reputation and lose all of their good clients. Many people make the mistake of just going with anyone and going through the phone book. This is the worst way to find people. I do all of my work through referral business only. In real estate, I am looking for people who other investors use. That way, they will work harder for you because they know that you know their other clients. They would not want to lose other clients. In any case, hope this helps! Let me know if there's any other questions you have.



-Rachel