My top 5 books of all time:

1. The Seven Habits of Highly Effective People -Steven R. Covey
2. Rich Dad Poor Dad -Robert Kiyosaki
3. Think and Grow Rich -Napoleon Hill
4. Drawing on the Right Side of The Brain -Betty Edwards
5. The 4-Hour Workweek -Timothy Ferris

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I thought I was getting tired of all things to do with The Secret until I read John Assaraf’s Having It All – Achieving Your Life’s Goals and Dreams.

I expected to read a remixed version of the movie, but instead I was left motivated and curious to learn more about Mr. Assaraf. The book is rich with inspirational wisdom and specific goal setting instruction. I found myself relating to his down-to-earth style and unique background.

Vision Board

I remember John’s part in the movie by the story he told about his son finding his “vision board.” Several years earlier, he had put together a board with clippings that represented his vision for the future.

He had forgotten about it by the time his son discovered it upon moving into his new house. As he was trying to explain what it was, he became very emotional when he realized that he was living in the exact house he had envisioned for himself several years earlier.

The Street Kid

Assaraf has a unique perspective because he was once a self-described “street kid”; having lived a life of petty crime before taking control of his destiny and achieving great success. Some of the lessons he learned on the street helped him later in life.

Balance

I especially liked the book’s balance between science, spirituality, and practicality. Most success books tend to focus on one of these areas. I respect an author who recognizes that we are multi-dimensional beings.

John spends time exploring scientific issues such as brain function and physics, spiritual issues such as the law of attraction and meditation, and practical issues such as goal setting.

Seven Natural Laws

I was particularly interested in Chapter 4 titled, “The Great Law and the Seven Natural Laws that Will Change Your Life Forever.” Here he breaks down the law of attraction, polarity, rhythm, relativity, cause and effect, gender and gestation, and the law of perpetual transmutation of energy.

My favorite was the section on The Law of Rhythm, in which he likens the universe to an ocean. The powerful waves and currents of life cannot be fought. Instead, it’s best to learn to go with the flow.

Goal Setting

The book contains at least two dozen pages of goal setting worksheets. This feature alone is worth the cover price.

Taking the time to fill out the worksheets will leave you with a greater sense of who you are, where you are, and where you are going.

Seven Power Factors

Another great section of the book discussed “The Seven Power Factors:” persistence, attitude, discipline, vision, purpose, focus, and action.

Even though these were familiar constructs, reading John’s explanation was quite motivating. Realizing that all of these factors are within a person’s control painted a roadmap for accomplishment.

A Great Read

I’ve been fortunate enough to have picked a string of really great books lately. Since I started Genius Types, I’ve had a lot of like-minded people offer winning suggestions. Having It All – Achieving Your Life’s Goals and Dreams by John Assaraf was no exception.

The Quiet Millionaire

The Quiet Millionaire, by Brett Wilder, is one of the most complete guides on personal finance that I’ve ever read. With over 400 pages covering every possible facet of finance from saving, to stock options, to starting a business; this guide has it all.

While not as flashy, exciting, or profound as some; The Quiet Millionaire is packed with practical information. This book will definitely appeal to the left-brain segment of the Genius Types reader base.

Being a creative type, I typically prefer more right-brain books like Rich Dad, Poor Dad, which are heavy on concepts but light on details. On the other hand, the details in The Quiet Millionaire read more like a textbook to me; but I must admit that I learned a lot.

Brett Wilder is a Certified Financial Planner with over forty years of experience working for both others and himself. As a man who’s seen it all, it’s hard to argue with with his wisdom.

His approach is very straight-forward: spend less than you make and manage the rest wisely. The book assumes you already have a sizable income stream and are looking for advice on how to manage it. Many of the examples assume you have an income of $200,000 or more.

He covers such a wide swath of personal finance, and breaks down each subject into such detail; I’ll definitely be keeping this book handy as my wealth increases and financial needs change.

Here are some of the topics he covers:

Financial Management Review

Wilder starts the book with an extremely detailed worksheet so that you can get an accurate picture of your financial position. After you do the work, you’ll be light-years ahead of most in terms of knowing yourself financially.

Positive Cashflow

An entire chapter is dedicated to ways to create positive cashflow. The concept sounds simple, but it’s almost impossible to create wealth without it. I enjoyed this topic because it helps me to understand the mentality of the wealthy, which is a different mentality than I held before I became interested in personal finance.

Assets, Intelligent Borrowing, Taxes


The book goes into great detail about different types of assets, liabilities and taxes. These are the topics that we typically don’t want to think about, but can cost or save us a ton of money.

Investing

One of my favorite sections was the chapter on investing because Wilder discusses how emotional control is paramount. I’ve found that the most sophisticated investment guides discuss the psychology of investing along with the nuts and bolts.

Another really great part about this chapter is the description of the “Modern Portfolio Approach” for which Economists Harry Marcowitz and William Sharp won the Nobel Prize in 1990. The plan is a level-headed, intelligent investing system to maximize your returns in the market.

Stock Options, Insurance, Health Care

Wilder breaks down every conceivable employer or private stock, insurance, and health care plan. It’s really nice & convenient to have all of this information in one place.

College, Retirement, Estate Wealth

The book offers some really great advice on how to create a strategy to maximize your college savings, retirement income, and minimize the taxes on your estate. According to some of his examples, proper estate planning can mean a difference of hundreds of thousands of dollars.

Owning A Business

My favorite chapter was the one about entrepreneurship. He breaks down what he calls “The Four Transitional Stages of Business Success,” by describing the characteristics and warning of the pitfalls. Since half of all businesses die in the first year, it’s important to know what you’re getting yourself into.

Bottom Line

If you’re looking for a strong, detailed guide to your entire financial life, this book’s for you. If you’re a creative type with the patience of a 2-year old, you probably need this book, but you’re not going to like it. I’m glad I read it and I’ll be richer for doing so.

Buy The Quiet Millionaire

Hollywood is said to be a closed enterprise; an elite fraternity with lavish rewards only accessible through nepotism, wealth, or sheer luck. As someone who is attempting to make it in Tinseltown, I have to admit that it certainly feels that way sometimes.

In How to Break into the Film Industry, I wrote about how to get a foot in the door. Making it to the top seems to be a delicate game of networks, social skills, and unwritten rules: only known by the in-crowd.

Catch-22

Hollywood’s a tangled mess of catch-22’s:

• You can’t get money to make a film unless you’ve already made one, but you can’t make a movie without the money.
• You can’t get an agent without having experience, but you can’t get experience without an agent.
• You can’t get into the union without having time on a union set, but… you get the idea.

Rogue Hollywood Insiders

To help navigate the mess, a rogue group of Hollywood insiders secretly wrote down the rules against the wishes of the establishment. It’s a classic Hollywood scandal: someone leaking the rules to you, so you can get into Hollywood (and create your own scandal!)

The Hollywood Rules by Anonymous is a collection of thirty rules to live by in the film industry. I’m breaking rule #30 right now. (30. Don’t Share the Hollywood Rules!) But then again, the authors broke the same rule by writing the book. Oh well, that’s L.A for ya!

Scan-dal

The line at the top of the cover reads: “The book Hollywood doesn’t want you to read.” 

I wonder if that’s true… I mean, I’m sure on some level it is. When people are holding on to a treasure, the immediate sentiment is to keep it a secret.

But is the secret fraternity institutionalized? Scan-dal (with a French accent)

The Rules

Some of my favorite rules:

Rule #12: Always End the Phone Conversation First

Apparently it’s important to always look… well… important. The authors suggest tactfully ending phone conversations with Hollywood types as soon as they start to slow down. Doing so puts you in the power position and makes it look like your time is in demand!

Rule #17: Accept the Beverage!

“Would you like something to drink?” Who knew such a small decision was so important? The correct answer is: yes! It puts the studio, or the agent, or (insert Hollywood type here), in the position of serving you.

Plus, its just about the only free-bee you’re going to get. That makes sense.

Oh yeah, and you’re going to need it for a prop when you’re pitching your movie.

Rule #19: Always Have a Project in Hand

This one makes a lot of sense. Even if you’ve written a script and are shopping it around, you need a second one in the trunk of your car. You never know what opportunity might present itself. Besides, you’re much more likely to hear “so what else are you working on,” than “I’ll buy it!”

Alright now, that’s enough violation of rule #30. The Movie Goddess, Pelicula, is on my tail.

I’d love to keep chatting with you, but I’ve got a meeting in five minutes… Yeah, it’s pretty important stuff…

Call me! (insert air kisses here)

The Hollywood Rules by Anonymous

If you’re a creative type like I am; chances are, you need this book. If you can figure out how to shock and awe your friends with a spectacular website, but can’t find your keys; chances are, you need this book. If you’re a free-spirit type who’s missing the anal side of your brain; chances are, you need this book.

To be honest, organization skills don’t come naturally to me. They’re largely a left-brain function, in polar opposition to the creative, right-brain way of thinking. If I’m at all organized today, it’s because I’ve been forcing myself to do it for twenty years.

Invaluable Benefits

Unfortunately for creative types, organization skills are essential to success. The amount of time, money, and energy saved by a well-organized life is invaluable; not to mention the psychological benefits that come with it.

Walking into an organized office in the morning and home at night gives me tremendous peace of mind. It helps to unbind the knots in my brain that have been holding back the free-flow of thought. This alone, to me, is the greatest reason to get organized.

A Different Book

Organizing from the Inside Out by Julie Morgenstern was different than I expected it to be. I think the best books are the ones that surprise me by teaching me to see something from a different perspective.

I guess I just sort of thought that I knew how to organize, but just didn’t like it. Along that line of thinking, I expected to really dislike an entire book about organizing. I didn’t feel like sitting there for hours and hours, getting lectured by someone in my head about what I should be doing.

A Different Perspective

Early in Morgenstern’s book, she explains that organizing didn’t come naturally for her either. Huh… that was interesting.

She explains that she didn’t get it until she started to look at it from a different perspective. Instead of seeing an organized space as something that looks clean, structured, and boring; she started to see it as something that serves you with functionality; making your life easier, more pleasing, and more enjoyable.

Ah-Ha Moments

There were a few nuggets in the book that really hit me. Once I read them, I wondered why I never figured them out before! The beauty of the book is in the simplicity.

Three-Level Diagnostic

She has what she calls a three-level diagnostic, which really covers most of what might be causing your organization problem. In her words:

Level 1: Technical Errors.

Simple, mechanical mistakes in your organizing system that can be easily fixed. Solving them is the equivalent of tightening a screw, changing a belt, or aligning the steering on a car. This is the first category of causes to review because all mess can be attributed to at least one technical error.

Level 2: External Realities.

Environmental realities beyond your control that limit how organized you can be. Recognizing them will save you from having unrealistic expectations of yourself.

Level 3: Psychological Obstacles.

Hidden, internal forces that make you gravitate toward disorganization, no matter how much you crave control. Unless you are aware of them, they can lead you to sabotage any system you set up. Through awareness, you can find a way to work around these issues and achieve organizing success.

Homes

One of the tips I slapped my head upon reading, is the idea of having a “home” for every object. For one reason or another, I never even considered this. The simple idea is that every object that you own is assigned a space where it comes to rest when it is not in use.

Convenience

I found that one of my biggest problems in past organization systems was that I was not making it convenient for me. The new perspective on organization is coming up with a system that serves you functionally.

Therefore, it doesn’t help to neatly file away DVDs in a hard-to-open box two rooms away from the DVD player. The idea is to make them accessible in the space where they are functional.

Tons More

There are a ton of little tips like these to help take the stress out of your life as well as some really profound ideas. Her thoughts on psychological obstacles to organization are quite thought-provoking. Is it possible that you might be holding yourself back because of some sort of emotional baggage?

Bottom Line

This should just be one of those books that you’re given on the way out of the house at 18 years old. It applies to just about every person in every conceivable position in life. Not only are the ideas fresh and useful, she walks you through several real-life examples. Definitely get this book. (Then when you’re done, you can find a home for it!)

Organizing from the Inside Out by Julie Morgenstern

I first learned about Roger Dawson when I read Weekend Millionaire’s Secrets to Investing in Real Estate, which he co-wrote with Mike Summey. I was extremely impressed with the honest, straight-forward strategy that the authors presented.

Dawson is a negotiating expert, and his insights really opened my eyes to the world of negotiating. My newfound interest lead me to read The Secrets of Power Negotiating.

I now regard it as one of the most valuable books I possess and a must-read for everyone. Even if you don’t like the idea of negotiating, you should at least know what tactics are being used on you almost every day.

A Change of Perspective

Before I read this book, I looked at the act of negotiating as being dirty. It brought to mind William H. Macy’s used-car salesman character in Fargo (one of my all-time favorite movies).

My attitude quickly turned around after Roger Dawson educated me about the art of negotiation. He immediately struck me a someone who had integrity and generally cared about other people (two traits that were incompatible with my pre-concieved notions of a negotiator.) I learned that negotiation in its highest form creates new value for all parties involved.

Instead of looking at negotiating as a necessary and unavoidable evil, I now see it a bit of an art form. A good negotiator wants to work with other good negotiators, just like a good athlete wants to compete against other good athletes.

A New Awareness

Like I said before: even if you don’t care about learning how to negotiate, everyone deserves to know what techniques are being used on you almost every day. I walked away with a whole new awareness. It was almost a bit embarrassing to know that I had been giving in to tactics my whole life up to that point!

Gambits

Dawson calls his negotiating techniques “gambits.” In the book he shares many simple, yet valuable gambits that you can use every day. Here are just a few of my favorites:

Always Flinch

When I read this gambit, I immediately realize it had been costing me money my whole life. To be nice to people, I used to always smile and nod at the first offer. According to Dawson, you should always flinch.

At first I thought this gambit was dishonest; but then I realized that pretending to like the first offer was dishonest. It might have been nicer, but it was less honest.

If you’re dealing with someone who knows how to negotiate, they’re expecting you to turn down the first offer. If you just smile and accept it, they’ll take advantage of the situation.

Always flinch. Give ‘em a blank stare, maybe grit your teeth and look to the left as if you’re thinking “man that’s a lot of money” (it’s probably what you’re thinking anyway).

Higher Authority

Anyone who’s ever bought a car or a mattress has had this gambit used on them. Remember the scene in Fargo? The salesman tells the customer that he has to go check with his supervisor to see if he’ll accept the offer. He walks into the supervisor’s office, and instead of talking about the deal they chit-chat about something totally unrelated.

The salesman had no intention of getting permission, but by acting like he did he defers responsibility to a higher authority. Now he’s on the customer’s side, and they can both complain about the grumpy supervisor.

Once again, this gambit doesn’t have to be dishonest. The lesson learned is to get a higher authority and remove them from the negotiating table. Maybe it’s your spouse, a business partner, or a boss.

You might be the kind of person who likes to do everything on your own, but in this case, it might be hurting you. If the other party knows that you’re the ultimate decision-maker, you have put yourself in a much weaker position.

Give Your Largest Concessions First

1. Let’s say you’re negotiating to sell a car, your asking price is $5,000, and you’re willing to go down to $4,000.
2. A potential buyer counteroffers at $3000, and in response, you say that $4,800 is the lowest you’ll go.
3. The buyer offers again at $3500, so you come down to $4,400.

In this situation, you’ve put yourself in a weak negotiating position. Your first concession was $200 (your “lowest price”), and your second was $400. The potential buyer is thinking “hey, each time I counter, he comes down by bigger and bigger amounts!”

You start to lose credibility.

On the other hand, if you give up the $400 concession first, and then quickly tighten it up, the buyer will realize that you mean business.

Book Gold

This is just a small sample of the gold that’s in this book. Everyone should read it, especially if you consider yourself a business person.

Once you start to get the hang of it, negotiating can be a lot of fun!

Run With the Bulls, by Tim Irwin is a no-nonsense look at how to succeed in the workplace and in life. It’s a complete guide on how to prepare yourself for the chaotic, competitive world of business in America without getting lost in the dust.

Irwin kept my attention by intertwining anecdotes from his love of adventure travel with life lessons. As the title suggests, Tim has been on many great adventures including running with the bulls in Pamplona, mountain climbing in Oregon, and exploring Inca Ruins in Peru (to name a few). He has a knack for relating these adventures to the workplace.

As an adventure lover myself, I could really relate to his anecdotes about the always-unexpected world of travel. My favorite was a little story about a family trip to Portugal. Tim’s wife and kids squeezed it in ahead of a business trip and got stuck in the most expensive hotel in town. At first, Tim was furious, but they compromised by packing in their own food to save money; living on cereal, cheese & crackers, and tuna for three days.

Every day, they longingly looked on to the happy guests eating breakfast in the elegant hotel restaurant while they starved themselves. By the last day they were miserable, and upon checkout they learned that those extravagant breakfasts were complimentary!

I had to laugh, because it reminded me that you really have to be on your toes when you travel to a strange place. The lesson he took away was to never let your emotions take control and make rash decisions. If his head were cooler at the time, he would have seen what was right in front of him.

Run With the Bulls is packed with little gems. As a leadership consultant for twenty years, Tim has been on every retreat, conference, and focus group one can imagine. His experience shines through with a wide variety of wisdom for all levels and aspects of an organization.

Irwin divides his book into three major sections: Commitment, Character, Competence.

Commitment

Irwin points out that many of us just “go through the motions” at work. To really succeed, one needs to make a committed leap of faith into something that they are really passionate about.

This section discusses a wide variety of topics, including thinking for yourself, preparation, and courage.

Character

The section on character was my favorite of the book. Irwin points out the irony of Enron’s value-filled mission statement in contrast to the real culture that eventually brought down the company.

In today’s world, it takes a lot of courage to do the right thing. It has become so acceptable to cheat, deceive, or cut corners; but in the long run, your character will shine through.

Competence

The final part of the book was about the essential skills needed to function well at your work; and more importantly, the ability to change. Why is it so difficult for most people to lose weight, drop a bad habit, or get ahead in life? It’s as if people keep doing the same thing over and over, expecting different results.

The ability to recognize a fault and change for the better is a rare, but an extremely important quality. It’s the only way you’ll be able to learn how to run with the bulls.

Bottom Line

I would definitely recommend this book to anyone. Even though it focuses on succeeding in an organizational setting, and I work for myself, I found the lessons to be relevant to work in general.

Run With the Bulls, by Tim Irwin

I almost didn’t buy this book because of the title. It reminded me of the blog post title formula:

1. Use an instructional phrase (how to)
2. Use a specific number (90 seconds) and
3. Appeal to emotion (make people like you).

Not that I’m innocent (check my top 20 to the left). I just thought that a slick title might equal slick advice. Boy was I wrong.

How to Make People Like You in 90 Seconds or Less, by Nicholas Bootham, is much more than a used-car salesman’s instruction manual. It’s a complete guide to interpersonal communication, which could be the most important skill you could ever learn.

According to Bootham, having meaningful relationships is a more important factor to a person’s physical health than smoking status, weight, or alcohol consumption. He could be right: it might even be the key to happiness.

People like you and me spend a lot of time on the internet. You’re on it right now, and I spend hours each week on this site, writing posts, approving comments, and managing content. In an increasingly connected world, we are somehow becoming more disconnected from each other.

Humans need physical contact, not just connections made online. This is the perfect book to help get you reconnected to the physical world of actual people.

Making Connections

I was worried that this book might be about manipulating people by pretending to be someone you’re not; but actually it’s quite the opposite. It’s about learning the tools needed to make sincere connections with other human beings.

The first section of the book is dedicated to the process of meeting someone, the second is about establishing rapport, and the final section is dedicated to communicating.

1. Meeting
2. Establishing Rapport
3. Communicating

Meeting

Bootham describes a simple five-step process for what to do when you first encounter a new person.

1. Open -Open your stance and your heart toward the other person.

2. Eye -Look the person in the eye.

3. Beam -Be the first to smile, projecting positive energy and a great attitude.

4. Hi -Say hello followed by your name.

5. Lean -Lean slightly toward them in an interested stance.

Establishing Rapport

Bootham describes rapport as that feeling you get when you walk away from meeting someone and you say to yourself, “I don’t know what it is, but there’s something I like about that person.”

The key to rapport, according to the book, is synchronizing with the other person. By opening your awareness and learning what you can about someone in the first 90 seconds; you can subtly synchronize with the person and establish rapport

Communicating

The last part of the book is an interesting discussion about three different types of communication.

1. Visual
2. Auditory
3. Kinesthetic

According to Bootham, each person has a preferred form of communication that they are the most comfortable with. By finding out another person’s preferred style, you can more easily communicate and establish a bond.

Buy this Book

This book is an easy read and a definite asset to anyone who wants to improve their life. It’s not just for salesman, it’s for anyone who wants to connect with other people.

How to Make People Like You in 90 Seconds or Less, by Nicholas Bootham

I picked up my copy of Buy Low, Rent Smart, Sell High by Scott Frank and Andy Heller at The Real Estate Wealth Expo in New York City a few years ago. It was the biggest convention I had ever been to and it was packed with over a hundred real estate gurus pitching every get-rich quick scheme imaginable.

For the most part, I was unimpressed. Gurus teaching slick sales tactics and questionable techniques for taking advantage of people while they’re down didn’t sit well with me. That being said, I did meet a few people with ideas that justified my ticket price.

The first was Mike Summey, the author of Weekend Millionaire’s Secrets to Investing in Real Estate; and the second was Andy Keller. Both of these men immediately struck me to have a strong sense of integrity, ethics, and sincerity about them. I could tell that money wasn’t their only motivator.

The Plan

The innovative plan that Andy and Scott describe in their book is well thought-out. It combines the benefits of a long term buy & hold strategy with the capital benefits of a shorter term strategy. Ethics is at the forefront, with fairness at every level: buy, rent, and sell.

I like the fact that the book is very analytical. Being a “numbers person” I enjoy the level of detail in the descriptions. Most books on real estate are long on concepts but short on specific examples. This book is just the opposite.

Buy Low

The cornerstone of the plan is consistently buying homes at a 10-20% discount. The authors’ preferred method is forming a relationship with a bank and getting access to foreclosed homes before they get to a courthouse auction.

They identified this stage in the process as the best for their needs for three reasons:

1. The home is already out of the previous owner’s possession. This avoids the undesirable work of tracking down and negotiating with distressed sellers.
2. A relationship with a banker often gives them first looks on new homes to the market.
3. It avoids the risks associated with blindly buying a foreclosure on the courthouse steps.

At this stage in a a foreclosure, banks want to get rid of homes quickly and are often willing to let them go for a 10-20% discount.

To Hold, or to Flip?

In developing my own real estate strategy, I’ve often found myself uncertain whether to pursue a long term buy-and-hold strategy or a short term “flipping” strategy. Being a long-term thinker, my preference is to buy and hold. The long term benefits of holding a rental property far outweigh any short-term gains that can be made by flipping.

The problem with buy-and-hold strategies is investment capital. If you are going to buy a house every year with a 10% down payment, you are going to have to come up with a lot of extra cash every year. That can be a big problem for the investor without a lot of money.

Flipping can provide you with an influx of cash to reinvest, but it tends to be risky. When considering all the fees that go into buying and selling a home, much is lost in the process; not to mention the fact that you are foregoing the long-term benefits of holding.

Scott and Andy’s plan seems to blend these two strategies nicely, while reducing risk at the same time.

Rent Smart

Scott and Andy have developed a unique type of lease-purchase contract that gives a mutually beneficial relationship with their tenants. They have eliminated all of the strong-arm tactics of traditional lease-purchase contracts and structured it on fairness.

A lease-purchase contract is different from a traditional rental agreement because it gives the tenant the ability to buy the home at the end of the contract. Scott and Andy’s contract is different from a traditional lease-purchase and has several advantages for both the tenant and landlord:

Tenant
1. A tenant with bad credit is offered the opportunity to build equity to be used for a down-payment while fixing their credit situation.
2. The tenant locks in a fair-market value for the home at the signing of the contract, meaning that they could potentially execute it years down the road profiting from any appreciation.
3. The upfront option money is reasonable and can be applied to their down payment if they decide to execute the sale portion of the contract.
4. The rent is set a fair-market rate.

Landlord
1. Tenants tend to take better care of a home that they might potentially buy, reducing maintenance costs.
2. It eliminates the holding costs of waiting possibly months for a buyer. Landlord maximizes profits by collecting rent while tenants prepare to buy.
3. Most tenants decide not to execute the sales portion of the contract, allowing the landlord to keep their option money.

Sell High

The fact that most tenants decide not to buy creates a unique blend between selling and holding properties.

The holding and selling decisions are made naturally. A certain portion of homes sell, adding an influx of cash needed to buy more homes, while the rest are held, locking in the benefits of long-term capital gains.

I love the simplicity of this approach compared to agonizing over which properties to buy and which to sell.

Six Profit Centers

This program gives investors access to six different profit centers:

1. Equity gained by acquiring homes at a 10-20% discount
2. Cashflow from monthly rental payments
3. Tax write-offs
4. Equity gained from tenant paying down the mortgage
5. Home appreciation if tenant extends the lease-purchase agreement
6. Option money obtained if tenant does not execute the sales portion of the agreement.

Buy this Book

If you are interested in real estate investing, I would definitely recommend this book. I love the creativity that was put into forming an investment strategy that blends short term and long term benefits while keeping honesty and ethics at the forefront.

Buy Low, Rent Smart, Sell High by Scott Frank and Andy Heller

I’ve got to admit, I get a kick out of watching Jim Cramer on TV. His high-octane, nerves of steel approach to investing is exciting to watch and easy to get addicted to.

I like watching the show to find new stock ideas to put on my radar. I don’t count his word as gold because I’ve seen him make huge mistakes and change his mind from one day to the next, but over the long-haul, he’s more right than wrong.

Buy and Sell Incrementally

One of the best things I’ve learned from him is the principle of buying and selling in increments. Instead of buying or selling a whole position at once, Cramer suggests to buy in quarters. He says that trading in whole positions is arrogant, and no one can call the top or bottom consistently.

I like trading in quarter positions because it takes a lot of the risk out. If a stock is moving down, and getting more affordable, I buy a quarter position. If it continues to move down, I’m happy and I buy another quarter. If it moves up, I’m happy and I look elsewhere for another stock that’s moving down.

I do the same thing when I sell. Selling can be agonizing because you don’t want to let go of something that has been so good to you. Buy selling in quarters, you can book some gains and still catch future gains.

Pay up to Twice Growth

Another good rule of thumb that I’ve learned from Cramer is the principle of paying up to twice the growth rate of a stock. That means looking at the P/E ratio and comparing it to the growth rate. Cramer suggests that you don’t ever pay more than twice the growth rate for a stock. If the growth rate is 15%, he will pay up to a P/E of 30.

He proved this principle to me with Google about a year ago. Google was growing at about 35% per year, which was phenomenal for a huge company. Most people thought that it was overpriced at $400 a share, even though the P/E ratio was only about 35. Cramer said that he would be willing to pay up to 70 times the earnings for a company that grew at 35% a year. He was vindicated when Google kept moving through 500.

Finally, About the Book

When I picked up the book, I was really hoping to learn a few more tricks like the ones I described above. Unfortunately, the book is mainly about the mistakes he has made over the last few years and the changes he has made to his rules.

If you’re new to Cramer I’d definitely recommend the book so you can get a foundation of Cramology; but for those of us who know him, well, to be honest… I was a little bored.

I must say that I did like the part about how he breaks down the “lightning round.” It’s amazing to see his vast knowledge of virtually every stock on the planet, and he shows us how he does it.

I don’t like to hear about how his rules are changing, because it leads me to believe that they aren’t set in solid principles. One of my biggest problems with Cramer is that it’s hard to pin down his underlying philosophy. Sometimes he’s a contrarian, sometimes he’s a momentum investor, sometimes he’s growth, and sometimes he’s value.

I’d like to think that he takes the best from all of these principles, but I’m just not sure.

Cramer warns everyone that his show is for investing “Mad Money” which is supposed to be less than 10% of your portfolio. He’s taking big risks with this money and no one should bet their house on his calls. Maybe thats why he takes some more liberties with his rules.

Bottom Line

The bottom line is: buy the book if you’re new to Cramer; think twice if you’re not. Then again, some people can’t get enough of him and will buy anything that he puts out.

Books have a funny way of showing up at the right time. The 4-hour Workweek by Timothy Ferriss was no exception.

This book was recommended to me by two regular Genius Types readers, HalOtis and Joe. Thanks, guys; this book knocked me out.

You readers really know what you’re talking about. If you have any suggestions for other books to read, please leave a comment below.

The New Rich

The 4-hour Workweek is an instruction manual to a new lifestyle, which is not defined by bank account balances or possessions. Ferriss explains that the new rich are motivated by freedom and mobility. Instead of working for forty years and retiring after, why not take multiple mini-retirements every year?

Ferriss creates low-maintenance companies that he calls “muses,” to fuel his appetite for extended world travel. Instead of obsessing on growth and perfection with his companies, he focuses on high-leverage activities and clients while dropping the rest.

Sound familiar? I hereby dub Timothy Ferriss an honorary Genius Type.

Two Parts

The 4-hour Workweek has so much information, it’s basically two books in one. The first details stripping down your work hours to the bare minimum while increasing your income. It addresses both entrepreneurs and wage earners alike.

The second is a lifestyle guide for the extended traveler. He tells you how to leave the world of the cubicle behind and travel the world for months at a time.

My Long-Lost Twin

Timothy and I were apparently separated at birth. We’re roughly the same age and appear to have the same ethnic heritage. We both value time freedom over bank account balances and are travel junkies.

I took a job as an inflight French interpreter for Continental Airlines for seven years so that I could travel the world and learn languages. It was fun, but I think Timothy’s got a much better idea: put your work on autopilot and immerse yourself in another culture.

Cutting the Fat

Here’s a brief summary of his suggestions.

The Low Information Diet

Ferriss suggests drastically reducing the amount of low-value information “noise” we constantly consume every day. Webpages, phone calls, email, cable news, newspapers, and even books!

He suggests limiting your email intake to once a day, or even once a week. He has the same advice for phone calls, suggesting avoiding your office phone and checking voicemail at 12 and 4 every day.

He takes the idea of the low information diet to such an extent, I had to wander if it’s socially healthy to cut yourself off from the world like he’s saying. Even if what he’s suggesting is overkill, we could all use a lot less “noise” if we are going to get anything done in our lives.

I personally took the baby step of switching my email client from automatically checking for new messages to manual. Additionally, I turned off the audio and vibrating alarms on my Blackberry when it receives new emails.

I can’t believe the amount of time these two steps have freed up. I feel much more control over that portion of my life. Instead of constantly being interrupted by someone else’s needs; now I check messages on my clock.

Batch Processing

This is one of those suggestions that I already knew intuitively, but needed someone to put into words before it “clicked.” The basic idea is that it’s much more efficient to complete tasks in bulk than it is to spread out the work. For example, it takes less time cumulatively to open bills and pay them all at once than it does to open and pay them as they come in the mail.

The reason is that every task has a logistical and mental setup time of anywhere from 15 to 45 minutes. Every time you start the process over, you have to repeat this setup time.

Virtual Assistants

This was my favorite part of the book because it was such a foreign concept to me. Did you know that there are companies set up all over the world who are just waiting to set you up with your very own virtual assistant? These assistants work remotely over the internet, phones, and traditional mail to carry out low-leverage tasks for you. By taking advantage of currency differences, you can find a virtual assistant for as little as $4 an hour!

One of my biggest hurdles on the road to time freedom is the enormous amount of administrative work I have to do to run five businesses. I absolutely hate wasting time in front of my computer, loading receipts into QuickBooks.

The idea is to delegate all of your low-leverage tasks, and focus on your high-leverage tasks.

There’s Much More

That was a small peek at just a few of his suggestions. Check out the book for the full flood of information.

Gold Rush

The 4-hour Workweek is packed with useful nuggets and resources. I have to respect a book that is well-researched and saves me time by consolidating references to websites, phone numbers, companies, and services.

This is one of those books that I’m going to carry with me as a field guide.

Of all the books I’ve reviewed on Genius Types, this one fits the closest to the Genius Types way of thinking. You have to read this book.

I just received my copy of Aaron Wall’s SEO Book, and I have to say: it blew me away.

I’m naturally skeptical of eBooks, in fact this is only the second one I’ve ever bought. The first was Steven Aitchison’s compilation because he’s a friend and it was only £4.99.

Since SEO Book costs a little more, I made what I thought was a leap of faith; but boy was I glad I did. The book is over 300 pages of internet marketing gold which is updated regularly (upgrades included) and supported with a blog.

eBook Skepticism

I’m skeptical of ebooks because anyone can write a few pages, save it as a pdf, create a marketing page, and rip the rest of us off for whatever they’re charging. Conversely, one look at SEO Book reveals that the wisdom within must have taken years to compile.

Aaron bends over backwards to make sure you get your money’s worth. He includes information on not just SEO, but online marketing in general. There are lists, phone numbers, websites, directories, spreadsheets, and any other resource that you could possibly need to market anything on the web.

What is SEO?

For those who don’t know, SEO stands for Search Engine Optimization. It’s the inexact science of getting your website to the top of search engine results for desired search terms.

Major corporations and brands pay millions of dollars in web-advertising even though people are about three times more likely to click on organic Google search results. This means that you can compete with the big boys if you know how to optimize.

People are always shocked with how well Genius Types does on search engines. The secret is not a secret at all: WordPress blogs are natural search engine magnets. By installing the limited SEO knowledge I had before reading Aaron’s book, I was able to increase my pagerank to a 6, and rank competitively for several search terms. Now that I’ve read the book, watch out!

The Art of SEO

One of the biggest lessons in SEO Book is that search engine optimization is an ever-evolving art form. Google and other engines change their algorithms regularly to combat optimizers and keep up with current trends.

It is far more effective to learn to think like Google and design your strategy accordingly than it is to learn individual techniques. Techniques will come and go with algorithm changes, but the the idea will always remain the same: Google and other search engines are trying to provide the most relevant results possible for searchers. Optimizers with the most natural-looking techniques will prevail.

Why Get the Book?

You could spend a lot time and money buying lots of outdated books on SEO, or you could buy SEO Book, get all the information, and keep up-to-date with lifetime upgrades. I don’t normally recommend eBooks, but this one’s worth it.

Click here for more information on Aaron Wall’s SEO Book

The Four Agreements by Don Miguel Ruiz is a book with a solid philosophy on achieving freedom in life. Ruiz draws from Toltec wisdom to convey his simple, yet powerful message.

The book begins with a philosophical and spiritual discussion of the nature of reality from a Toltec prospective. Ruiz draws from legend, metaphor, and practical example to explain how we create our own heaven and hell on earth.

I’ve always been very comfortable with Native American spiritual philosophy, so this part of the book read like a familiar bed-time story. (Maybe it’s because there’s a streak of Native American blood in my lineage.) I see it as an interesting balance between eastern and western spiritual concepts, where God is an omnipresent natural force, and a strong emphasis is placed on wisdom and honor.

The Domestication of Humans

Ruiz describes what he calls the “domestication of humans,” the process by which we become who we are. He explains that as innocent children, we are taught to behave, believe, and think a certain way by our parents, teachers, and peers. In order to be free, we must recognize this and learn to think for ourselves.

I liked this concept because it coincided with my thoughts on critical thinking, but it was unclear to me whether Ruiz was advocating rejection or embrace of the process of “domestication”.

I personally believe that it’s important to strike a balance between embracing your upbringing and thinking for yourself. Blindly rejecting “domestication” is just as dogmatic as blindly accepting it. A critical thinker keeps the values he agrees with and replaces the ones he doesn’t.

The Four Agreements

1. Be Impeccable With Your Word

Speak with integrity. Say only what you mean. Avoid using the word to speak against yourself or to gossip about others. Use the power of your word in the direction of truth and love.

As a huge fan of integrity, I loved the wisdom and simplicity of this advice. Doing what you say you’re going to do sounds simple, yet so few people live this way.

Ruiz also described how powerful our words can be. An innocent statement to someone can plant a seed that becomes their reality. We must respect this power and use it wisely.

2. Don’t Take Anything Personally

Nothing others do is because of you. What others say and do is a projection of their own reality, their own dream. When you are immune to the opinions and actions of others, you won’t be the victim of needless suffering.

Can you imagine a world in which no one took anything personally? That might be the definition of world peace.

Ruiz recommends not taking anything personally, even if you were to be shot in the head. Now that’s zen-like emotional control.

3. Don’t Make Assumptions

Find the courage to ask questions and to express what you really want. Communicate with others as clearly as you can to avoid misunderstandings, sadness, and drama. With just this one agreement, you can completely transform your life.

This is great advice for our relationships with other people. Unmet expectations based on faulty assumptions are the root of many arguments.

4. Always Do Your Best

Your best is going to change from moment to moment; it will be different when you are healthy as opposed to sick. Under any circumstance, simply do your best, and you will avoid self-judgment, self-abuse, and regret.

This was my favorite agreement because it was a new perspective for me. I’ve always pushed myself to achieve a very high standard and therefore left myself open to disappointment. Ruiz teaches us to hold ourselves to no more and no less than our best.

Bottom Line

Another great book from the Genius Types book club! If everyone were to follow the philosophies outlined in this book, we’d all be a lot happier.

The Four Agreements by Don Miguel Ruiz

I’ve always believed that people don’t find books, books find people; and it seems that every book I read adds another layer of truth to that belief.

Just when my mindset and writing was focused on the topic of critical thinking, Freakonomics, a Rogue Economist Explores the Hidden Side of Everything by Steven D. Levitt and Stephen J. Dubner, found me.

Steven Levitt (the book’s focus) is an economist that specializes in breaking with conventional wisdom and digging deep to find the reasons that people do what they do. I couldn’t have made up a better example of critical thinking.

Steven’s blindness to political correctness and immunity to political ideology resembles the curiosity of a child. His simple, yet powerful explanations show the creativity of a master. When all other scientists are working on the mechanics of a broken machine, Steven is the one who goes behind and plugs it in.

He’s interested in the types of questions that might have crossed your mind, but didn’t seem serious enough for a scientist.

What caused the crime drop in the 90′s?

Does a real estate agent really have your best interests at heart?

If drug dealers make so much money, why do they still live with their moms?

Which is more dangerous, a gun or a swimming pool?

Is Sumo wrestling corrupt?

What are the characteristics of someone who might take a bagel without leaving a dollar in the honor box?

Do teachers cheat to meet high-stakes testing standards?

How does a homeless man afford $50 headphones?

Why do parents give their children the names they do and what does that say about them?

How does a crack gang leader manage his organization?

Do parenting techniques work, or is it all about genetics?

As you can see, Steven dabbles in topics that could easily become politically charged. He’s been accused by conservatives as being a liberal ideologue, and by liberals as being a conservative ideologue. This tells me that he’s on the right track.

Incentives

Steven likes to work from the microeconomic perspective of asking how a single human being goes about getting what he wants. To him, it’s all about incentives. We do what we get rewarded for and don’t do what we get punished for.

Real Estate Agents

Of particular interest to me was the discussion of what motivates real estate agents. On the surface, it would seem as if a real estate agent is motivated to get the highest amount for the sale of your home because of the fact that they work on commission.

Research data shows that real estate agents tend to keep their own homes on the market ten days longer and hold out for a three percent higher sales price than those of their clients.

It turns out that the agent’s incentives are not necessarily aligned with the home owner’s. Given the choice between selling your home today for $300,000 or ten days later for $310,000, they will almost always choose to sell it today.

The reason is they would earn $18,000 today on a 6% commission, but only gain $600 more for selling it ten days later. They would rather just sell your house and get on to their next $18,000 commission as soon as possible.

I’m not necessarily going to cease my relationship with my agent, but I’m definitely going to keep that in mind in negotiations.

Crack Gang Accounting

One of the most fascinating parts of the book was the discussion of how a crack gang works. Levitt ran into an economist who spent several years embedded in a crack gang.

By shear stroke of luck, he happened to pick possibly the only gang in history that kept their own books. Years of accounting records were painstakingly recorded in spiral notebooks and handed over to the economist when the gang was being shut down.

The books gave a rare glimpse into the inner-workings of a crack “franchise.” They told how much money the individual members made, what the hierarchy looked like, what the death rate was, and how much “insurance” was paid to killed members.

Bagel Honesty

Another extremely interesting chapter was the discussion of office worker honesty. A man who was only semi-engaged in his office job began bringing bagels to work and leaving out a basket to help recoup his expenses. He soon found that he could make more distributing bagels to different offices than he was making at his job, so he quit and got into the bagel business.

He kept extremely accurate records of how many bagels were taken versus how much money he collected. Sorting through this data provided an interesting look into which offices were the most honest, which holidays inspired the most or least honesty, and who was more honest between an executive and an average worker.

Another Good One

I would recommend this book to anyone who has an open mind and a curiosity about the world. Prepare to have your world view challenged and be offended on some level. After you have finished, you will have given your critical thinking muscles a strong workout.

Freakonomics, a Rogue Economist Explores the Hidden Side of Everything by Steven D. Levitt and Stephen J. Dubner

The Art of Exceptional Living by Jim Rohn is a two CD set of both live and studio recordings.

This was my first exposure to Jim Rohn and I have to say that I was pleasantly surprised. The older I get, the more I’m attracted to practical advice as opposed to motivational advice; and Jim Rohn’s CD was exactly that.

Here are a few nuggets from the audiobook:

“The greatest value in life is not what you get, it’s what you become.”

Jim Rohn places an enormous emphasis on personal development. He encourages his listeners to become serious students of life.

“Learn to work harder on yourself than you do on your job.”

He explains that at age 25, he had been working for six years with nothing to show for it but broken promises to his family. He was a hard worker, but realized that it was going to take more than hard work to make it.

Interestingly enough, it took meeting his mentor to change his life. Just like Napoleon Hill, Jack Canfield, and many others; Jim Rohn was taught the secrets to success from his mentor before becoming a mentor to the masses through his writing and lectures.

“Philosophy (is) the major determining factor in how your life works out.”

This advice isn’t anything new; it’s the same message of personal responsibility taught by almost every success teacher out there, but I like the simplicity of Mr. Rohn’s delivery.

He breaks it down to a simple message that everyone can relate to: We all have to deal with the same weather, taxes, economy, politicians, bosses, air, water, soil, and seeds. As Mr. Rohn says “it’s all you got! If you blame those things, you’re blaming all you got!” Your philosophy will determine how well you turn these ingredients into equities.

“Formula for Failure: a few errors in judgement repeated every day.”

Mr. Rohn’s definitions of success and failure were my favorite part of the whole program. This simple definition of failure explains why it’s so easy to fail without realizing it.

He mentions the old phrase an apple a day keeps the doctor away as an example. Mr. Rohn asks the question, “what if that’s true?”

Everyone knows they should be eating apples, but most people don’t see how choosing to eat a candy bar over an apple is really going to hurt them. This tiny little error in judgement won’t hurt them immediately, but if repeated every day over several years, it can do serious damage.

“A guy who has an empty bank account probably has high cholesterol.”

When I heard this, it struck me personally. Right before my financial transformation, my doctor told me I had high cholesterol. I was still in my 20′s and couldn’t believe it.

Mr. Rohn is right on point and I was a good example.

“Formula for Sucess: a few simple disciplines practiced every day.”

I absolutely love this simple formula because it’s so accessible. Instead of rah-rah “you can move mountains” motivational stuff, Jim Rohn suggests that you just do a few little things right every day and make it a lasting habit. I can’t stress enough how much wisdom is captured in this statement.

It’s such a simple philosophy that most people won’t even pay attention to it. Most people are impatient. If they don’t see results right away, they quit.

Read, Read, Read -All Leaders are Readers

Jim Rohn challenges his listeners to become serious students of life. He suggests reading something instructional for at least thirty minutes a day, an hour if possible. “Miss a meal, but don’t miss your thirty minutes,” he says, once again emphasizing his philosophy of a few simple disciplines practiced every day.

He says that you should be a serious student of:

1. Health
2. Life
3. Spirituality
4. Culture
5. Uniqueness
6. Sophistication
7. Economics
8. Prosperity
9. Productivity
10. Sales
11. Management
12. Skills
13. Values
14. History
15. Philosophy
16. Law
17. Novels
18. Biographies

“Did you know there are cassettes and books on how to be stronger, more decisive, a better speaker, a more effective reader, have a better effect on other people, become more loving, develop personality, get rich, develop influence, become sophisticated… and people don’t use them?

How would you explain that?“

Isn’t that a great question? Anyone can go down to their local library and access the same wealth of knowledge that would enable them to change their life, but most people choose not to.

Here are a list of books that Jim Rohn suggests:

1. Think and Grow Rich by Napoleon Hill. “Doesn’t that book title intrigue you?”
2. How to Read a Book by Mortimer Adler
3. The Lessons of History by Will Durant
4. Story of Philosophy by Will Durant
5. Atlas Shrugged by Ayn Rand

He says that you have to have balance; meaning that you can’t just read inspirational books. You have to read a few books about tragedy as well.

Three Treasures to Leave Behind

Mr. Rohn recommends three activities to leave a legacy for generations to come:

• 1. Keep a Journal
“Capture ideas, don’t trust your memory.”
• 2. Leave a Library
“Every home over $200,000 has a library.”
• 3. Take a lot of Pictures
“A picture is worth a thousand words.”

Worth the Money

These CD’s are worth owning and adding to your library. Put them on your iPod so you can refer back to them from time to time.

The Art of Exceptional Living by Jim Rohn