Each block can be sold back for $70,000 / block. Each $100,000 / block brings cash flow $410 / month at 5% ROI. This guy could have done put's to insure profit or at his level do "stamps" to protect against price drops.Īllow 101 game whenever you land on paycheck you can buy / sell bonds. Of course the " INSIDERS" with options or given shares in lieu of cash do even better. So this somewhat reflects the game $1 or $5 stock retail. Did he sell? Nope - "it will go higher"! Would like to find out where he is now since the crash. The stock just peak at $800 / share then split 4:1. I don't think he work for the company but knew people that did. Every cent he could grab he put in over time. If any of these elements are missing, I consider a deal as “not so good” and I pass them up and just wait for the good deals.Good question Russ! Reminds me back at the peak of tech - local guy featured on local news studied local stocks and choose Qualcom to invest in. In the game, good opportunities come in the form of deals that have big ROI potential, and can be bought with little or no downpayment, while producing positive cashflow.
It is better to wait for a good opportunity than settle for those not so good deals As mentioned in lesson number 2 above, I can go for those bigger deals later when profits from my small deals are enough. I would not dare buy those multi-unit apartments unless they were in the same price range as the single family homes I focus on. This is the reason why one should avoid deals that lead to too much exposure or over-leverage.Īpplying this is real life is a no brainer. The same can also happen when one is downsized. However, there is such a thing as becoming over-leveraged which can produce negative cashflow situations because of the high monthly payments for those loans.Įven if one’s passive income is enough to cover the monthly payments for those loans, imagine if something happened and the monthly income of one’s investment properties were affected, suddenly the monthly payments for the loans cause a negative cashflow and can lead to bankruptcy. Over-leverage often leads to bankruptcyĭuring the game, we often encounter great deals that produce a lot of positive cashflow but require a big downpayment and it is tempting to borrow money from the bank just to be able to buy those great deals. I can then use the profit later when they are enough to get bigger deals that can produce bigger positive cashflow. I focus on single family homes or properties which may produce little cashflow at the very least, but can actually generate significant profits if “flipped” or sold through “rent-to-own”. In real life, I am also following the same path. I was not able to get out of the rat race during this game but we only played for an hour due to time constraints. My four “green houses” which I’ll exchange for a “red hotel” during a recent game I played with Earth. Later on, when the market presents good opportunities, I was able to sell or “flip” these small deals and then I used the profit to buy the bigger deals that produced greater cashflow, allowing me to get out of the rat race. In the beginning of the game, I always chose small deals even if they produced little cashflow.
Start with small deals first, and the big deals will follow My family and I lead simple lives, which explains my very low target monthly passive income which is why I know I am going to get out of the rat race in real life very soon! 2. Harv Eker in his book “Secrets of the Millionaire Mind”. This was also described by Bo Sanchez in his book “Simplify and Live the Good Life” and T.
In real life, I am applying the same strategy by reducing my monthly expenses by leading a simple life. After each payday, I had more money to invest, and with just a few passive income generating deals, I had enough passive income that exceeded my monthly expenses, and I was able to get out of the rat race faster. As a truck driver, although my salary was low, my monthly expenses were also very low.īecause I had low monthly expenses, I already had a positive cashflow and all I needed to do was just get those passive income generating deals. This happened during the Think Rich Pinoy Seminar I attended last August 2007.
#Cashflow 101 game new driver
I noticed that whenever I played the cashflow 101 game and was able to choose a “simple” profession like a truck driver for example, I was able to get out of the rat race faster.
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