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Wealth University
Wealth University

Wealth Quotient

Investor Test

Create your personal plan to wealth, execute on it & have a purposeful impact on the planet, while having the freedom and fun you desire!

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So what does this all mean and how do I use this to create what I want? Let us start with the fundamentals:

There are a number of pillars upon which this framework was designed:

  1. Natures Laws
  2. The I Ching
  3. Fundamentals of Investing, Wealth & Real Estate

Natures Laws
An example of this if that when people invest they do it on their own. Yet in nature it is an ecosystem and everything is working together to enhance the ecosystem. Whether it is fish swimming in a school, animals migrating across the planes or birds flying in a flock (birds can fly 70% further than a bird flying on its own) they use natures laws to work together for a better outcome for all. This framework is built upon this law.

An example of this if that when people invest they do it on their own. Yet in nature it is an ecosystem and everything is working together to enhance the ecosystem. Whether it is fish swimming in a school, animals migrating across the planes or birds flying in a flock (birds can fly 70% further than a bird flying on its own) they use natures laws to work together for a better outcome for all. This framework is built upon this law.

The I Ching
I learnt about the I Ching through Roger James Hamilton and his Wealth Dynamics Test (highly recommend taking this test as well). 

This is from Roger. Psychometric Tests allow us to see our differences as strengths, so we can help each other to shine. Today’s entire psychometric testing industry is based on the work of Swiss psychiatrist Carl Jung, and his book Psychological Types published in 1921. If you have ever heard of the concept of archetypes, the collective unconscious, and synchronicity, these are all terms popularized by Carl Jung (as are terms of introvert / extrovert, and sensory / intuitive). Where did Jung’s information come from? In 1920, a year before he published ‘Psychological Types”, Carl Jung was the first in the west to publish the ancient Chinese text, the I Ching (Written in 3,000 BC). Richard Wilhelm, who brought the text back from China, explained to Jung the Chinese five elements, which today form the main personality ‘types’ (Water grows Wood that fuels Fire that settles to Earth which mines Metal that flows back to Water).

Roger basically took the greatest lessons from ancient Chinese wisdom and overlaid them with modern profiling tests for Entrepreneurs. It was invaluable in my life as Entrepreneur and I use the same mythology to overlay in this framework.

We have now overlaid this ancient Chinese wisdom  with the fundamentals of investing to provide Investors with a tool to create the success they want in their lives.

Carl Jung, the father of analytic psychology.

Fundamentals of Investing, Wealth & Real Estate
Whether you are learning from books like The Richest Man in Babylon, learning from investors like Warren Buffett or attending courses like Wealth Mastery from Tony Robbins, they all teach the same thing and these are the fundamentals to investing and wealth. Dr Dolf de Roos and Robert Kiyosaki take this further in Rich Dad, Poor Dad and Real Estate Riches for real estate, while in my book, Property Going Global, I provided the global fundamentals of real estate.

The bottom line is no matter what the new fad, technology or acronym the fundamentals do not change.

We will share with you in this report and how to learn these fundamentals.

The 5 Pillars

There are five pillars upon which the Investor Test is built and it is important that these are explained properly. Let’s get started!

PURPOSE QUOTIENT
PURPOSE
ENERGY = WATER

INVESTMENT QUOTIENT
MINDSET & KNOWLEDGE
ENERGY = WOOD

CONNECTED QUOTIENT
COLLABORATION & PARTNERSHIP
ENERGY = FIRE

FINANCIAL QUOTIENT
FINANCIAL, INVESTMENT & REAL ESTATE
ENERGY = EARTH

SYSTEMS QUOTIENT
PERSONALISED SYSTEMS
ENERGY = METAL

PURPOSE QUOTIENT
PURPOSE
ENERGY = WATER

INVESTMENT QUOTIENT
MINDSET & KNOWLEDGE
ENERGY = WOOD

CONNECTED QUOTIENT
COLLABORATION & PARTNERSHIP
ENERGY = FIRE

FINANCIAL QUOTIENT
FINANCIAL, INVESTMENT & REAL ESTATE
ENERGY = EARTH

SYSTEMS QUOTIENT
PERSONALISED SYSTEMS
ENERGY = METAL

PQ is the  PURPOSE QUOTIENT

This is the WHY and as Simon Sinek says this is the most important thing to success. Watch this TED Talk about this – click here. In the universal energies it is WATER, as water goes where energy flows, and energy flows to where there is a bigger purpose than something like greed.

I believe it is summed up by the quote I mentioned above from Zig Ziglar, “You can have anything you want in life if you help enough other people get what they want.” Therefore it is imperative that you get clear on WHY you want wealth? Why are you investing and why are you learning about financial literacy or real estate? Why do you want to become a Global Citizen?

If your WHY is not big enough, you will fail, as it is hard. There is no such thing as a get rich quick scheme. In Malcolm Gladwells book, Outliers, he talks about the rule of 10 000 hours. Basically it is going to take you 10 years to master anything and so you better choose something you like. You will have failures, you will make mistakes and you will lose money and so best you choose something that you are prepared to master and have the perseverance to stick with it through good times and BAD times.

Most people are going to read this, but they are not going to take action. Something I learnt from Tony Robbins is there are 3 types of learning:

Level 1: Cognitive learning
This is where people have Intellectual knowledge, but take no action. The metaphor is someone who has written their learners drivers licence examine and passed, but does not yet know how to drive a car.

Level 2: Emotional Mastery
To go to the next level you need emotional mastery. The only way to do this is through repetition which is the mother of skill. You need to think it and then feel it. As an example once someone has learnt to drive a car, they don’t really need to think what to do anymore, it is automatic, like clicking the flicker.

Level 3: Physical Mastery
The last stage is that the mastery gets into your body. You just do it without even thinking about it and this level of mastery allows you to follow through and find your destiny. The metaphor is the picture below, where someone is doing so many other things while ALSO driving.

If you remain passive, you will not even remember 10% of what is written in here and the problem is that more than 90% of people, statistically, will not take action and therefore will not get results. 

All the successful and wealthy people I have met, love what they do. My Uncle said to me at a young age, “I get to go on holiday every single day and I get paid for it.” The only way you will develop these skills of mastery is if you find something you love and get very clear on your WHY. What is the purpose and why are you doing what you doing.

Now some extremely wealthy people may be reading this and yet they feel empty, they have created a large amount of wealth, but they are lacking purpose and fulfilment. They need to find their ikigai.

To truly go to your next level and find your destiny you need to develop a Massive Transformative Purpose (MTP). You need to find one of the global challenges and find a way to solve it. I have personally found this one of the most valuable things I have ever discovered and you will be amazed who wants to partner with you (CQ) when you have a powerful MTP. Read the book by Peter Diamandis, Bold, to truly understand this.

If you are just starting out, you can also do the Passion Test:

If you know your passions and you trying to determine a great MTP, then why not focus on the UN Global Goals, which we aim to solve by 2030. This is about your legacy.

An example of this is how we, through Collaborative SMART InvestingTM aim to not only enhance the lives of every customer we touch, but also be purposeful and help solve one of the greatest challenges on the planet – The Wealth Gap.

Wealth Migrate has pioneered the Wealth Movement, whose mission is to empower a billion people and create a better and more sustainable planet for all. Go to www.wealthmovement.com for more information and join the movement. Let’s create the planet we want to see and by joining the community, let’s make it happen together.

Scott Picken’s personal purpose and passion is to:

Take the next steps to increase your Purpose Quotient

Your PQ Score is: [memb_contact fields=pq]

Your Purpose, your PQ, your WHY, is your guiding light and it will ultimately determine your long term success and more importantly is the flow of WATER to your own personal fulfilment. It is the water which will allow your WOOD to grow, which is the next pillar.

IQ is the Investment Quotient

Most people know IQ as your Intelligence Quotient which is used in the 19th century schooling system. This system is designed to set you up for failure and if I am wrong then why does only 1% of people in the Western World (England, Australia and America retire wealthy at 65 after following the current system.) It needs to change and in the 21st century your IQ is about far more important and this is about your Mindset and Knowledge. 

Your mindset is everything and if you don’t have the right mindset then you will never achieve anything you want in life. As Henry Ford says, “Whether you think you can or you think you can’t. You right.” My father taught me that people can achieve anything they put their mind to and he said to me, “Dream Big, people become what they dream.”

The problem most people have is that they believe knowledge is what you learn in school and university and yet often it is actually the opposite. Most people are taught to own a house as an asset. Read Rich Dad Poor Dad by Robert Kiyosaki to understand and break this myth. Or we are told that we should rely on the financial industry or government for our well-being. Read Second Chance, also by Robert Kioysaki to truly understand how the system is hoodwinking you, or even my own book Property Going Global to understand how I learnt this lesson with my Uncle and Dad’s financial journeys being completely different.

The best book on mindset is the book written in 1937 by Napoleon Hill called, “Think and Grow Rich.”

Let me give you some great examples of mindset. 80% of investing is phycology and only 20% is the mechanics. Here are a few examples of this.

Joseph_P_Kennedy_Sr._1938

Joe Kennedy was worth $4m in 1929 at the heart of the depression and through investing, when everyone else was running away, he increased this to $180 million by 1932.

Sir John Templeton, the greatest investor of the 20th century, made all his money when others were scared. He invested in Poland when Germany invaded them in 1939, he invested in Japan after they were bombed in 1945 and he also invested in Argentina, when they were at war with Britain.

 

Add to this that the greatest businesses have actually been created by people with the right mindset and also the ability to know how to create value in tough market conditions, Microsoft, Disney, Honda, CNN, Fedex, Apple, Exon Mobile, Pizza Hut, Google, Ebay, Alibaba, Uber, AirBnB, etc.

It is about doing the right thing, at the right time and that takes knowledge, especially FQ knowledge which is explained later.

It is important to understand that problems are your best friend, as they help you make breakthroughs. The secret is to have a mindset that you aim to get better quality problems.

With regards to Knowledge it is specifically with regards to investing, wealth, your financial literacy and financial knowledge. From my experience the best way to learn this is to get started. You are going to make mistakes, but at least you will start to get experience. In the old day you read a book or went on a course, but the 21st century is about “learning while doing” and the best way to do this and limit the risk is through a mentor or partnering. You do need some level of beginner knowledge so that you don’t get scammed, and this is why we have courses like the 8 Steps to Wealth through Real Estate, so that people are empowered to create the wealth they want in their lives and get started. Also now with technology the barriers to entry have been reduced so much and so if you want to invest in things like real estate you can go to Wealth Migrate and anyone can get started. 

If you do the 8 Steps Course you will be shown how to get started with $100 and so no one has an excuse anymore. Also don’t miss the WealthE Code with 12 things the wealthy are taught that the rest of the world, the 99%, aren’t. It is about giving you the tools, knowledge, access and trust to invest like the top 1%.

Working with some of the wealthiest people in the world, I realize that the moment they have a weakness in knowledge they look to partner with someone who has that knowledge, someone with the experience who can manage the risks. This follows natures laws of working together and also is why the Wealth Dynamics test is so good as it helps you know who else you need on your team.

It is also why we run Wealth TV where weekly I give Wealth Insights. I have the privilege to work with some of the wealthiest people in the world and I would be an idiot if I didn’t spot patterns. I share these short lessons weekly. Sign up to the YouTube Channel.

We have also accumulated everything into one place with the eWealthPack to accelerate your learning process here.

The IQ is all about growth and this is why it is made of WOOD as it is the place to start once your WHY is clear. Your WHY is the water which allows your WOOD to grow. The IQ is the Spring of the cycle and it is the WHAT that you need to learn before you can get started. 

Take the next steps to increase your Investment Quotient

Your IQ Score is: [memb_contact fields=iq]

It is about shifting your thinking to 21st century thinking  where the, “Biggest shift is happening from scarcity to abundance and competition to collaboration.” Jessica Zartler – Blockchain consultant

If there is one thing I have learnt from successful and wealthy people is they are lifelong learners.

There is a reason for sayings like, “Readers are leaders” and “Learners are Earners.” 58% of American’s don’t read non-fiction again after college and a Harvard study shows that 90% of people won’t learn anything new after school unless they have to. And we wonder why the top 1% has all the Wealth. To this day, with all the wealth that Bill Gates and Warren Buffet have, they are avid readers. I remember asking my Uncle why he was the most successful stock broker in the market he was investing in and he said to me, “I used to get up an hour before my peers and read the newspaper so when the markets opened I was trading and they were still reading.” In 2003 he moved to Brisbane which meant that he had a whole day to read before the markets, he traded, opened. (Don’t miss in the 8 Steps to Wealth through Real Estate the section on Life Hacks – great tricks successful people use, or even the Wealth Hackers Community)

In this new age, where all information doubles every two years and more than $2 billion is spent every day on technology, the only thing which is certain, is change. You need to get use to change emotionally and have the mindset that all change represents an opportunity. You need to keep growing, learning and adapting to these changes. In 1910 4 of the 5 biggest companies in America were in the railway business. They could have bought Ford for pennies on the dollar and yet they didn’t believe that cars would be a risk to transportation. Today more than 80% of all transportation is done by trucks. Don’t get caught up in thinking that what has worked in the past will mean that it will keep working going forward. You have to aim to disrupt yourself. As John Sanei, the Futurist says, “If you dislike change, you’re going to dislike irrelevance even more.”

On top of this what can you do to 10x yourself and go to the next level. I tend to find that the way to grow is to put myself in a situation where I am the dumbest and poorest person in the room. How can you add value to someone who has the knowledge and experience that you want and figure out a way to partner with them. Here is an example:

What communities could you join? People and partnerships accelerate your progress and this is why CQ is the next pillar.

An example of a community would be out Global Wealth Partners who are a like-minded global community which is learning about business, exponential technology and investing, while having a purposeful impact on the planet. Make sure you find and join the communities which are going to pull you to the next level and remember you can never stop learning. Contact [email protected] if you want to know more about this and also watch this video about what the community has to say. Click here

As Zig Zinglar says, “You can have anything you want in life if you help enough other people get what they want.” How can you add more value to more people… This is what we focus on every single day!

A final thought on IQ is if you have children, the sooner you start with them, the better. There is nothing better than real life experience and learning while doing. As an example, on the Wealth Migrate platform, children can invest and many parents are giving their children one of the greatest gifts ever, the start to investing early. At young age they start to also learn, not only IQ, but CQ as they need to learn the next step which is how to do everything through connection and partnership.

CQ is your Connected Quotient

In school we are taught to learn on our own, write tests on our own and if we share with others it is cheating. As discussed above in the laws of nature, this is the complete opposite with every part of the ecosystem working together. The dung is important for the Dung Beatle, while the Tick Bird is important for the Rhino. Everything has its place, function and purpose and works together. Collaboration is key for survival.

I believe that by collaborating, we can make a purposeful impact in our communities – and this is why we developed Collaborative SMART InvestingTM.

WHAT IS COLLABORATIVE INVESTING?

‘Collaborative Investing’ is a principle which has been around for centuries and used by wealthy people to reduce the risk and increase the returns. It is about working together and adding value. The 99% have not been able to participate in Collaborative Investing due to the barriers to entry like money, knowledge or being in the right networks.

This is changing and with the use of technology far more people can invest like this now. It is why we call it Collaborative SMART InvestingTM as it has the best of the past while using the latest of the advancement of technology. (We will talk in more detail about this in FQ)

Roger Hamilton talks a lot about how you create this value through communities in his Impact Meter. The great thing is in the past the Pharaoh’s and Kings were the only ones who could make decisions and have a massive impact and now with technology we all have access to make connections, create or join a community and most importantly to add value. What impact are you having on the planet?

 

What level are you on? You will notice that this is also the same level as the life cycle of the Real Estate investor. To move up the Wealth Spectrum is it all about your connections and how you collaborate and add value in partnerships.

If you are an entrepreneur them you should do you Wealth Dynamics Test to see who you are and who you need on your team.

The bottom line is that people think they need to do it on their own. As Dr Dolf de Roos taught me, “If you want to go fast then go alone, if you want to go far then go together.”

It is imperative that you figure out how to add value to mentors and also how you can add value to communities so that you can join them and learn within the ecosystem.

Most importantly it is not what you can GET it is what you can GIVE.

CQ is all about the WHO and it’s energy is FIRE and people.

Sit back and think which people or groups would add the most value to you. Then work out a plan to add value to them. Chet Holmes calls this your Dream 100, which is a systematic plan to give them value until they want to partner with you. “Where there is a will there is a way” and “A rejection is one step closer to getting a yes…”

An example of a great place to start would be joining the Wealth Hacker Community, which is a group of like-minded people who want to hack their way to wealth. Or the Inner Circle which discusses various topics like:

  • Digital real estate and investment opportunities
  • Exponential Technology
  • Crypto Currency and Blockchain

Or finally the Wealth Partner Community which has been created for those who want to take advantage of this generational opportunity as the $217 trillion real estate industry is disrupted. Click here to find out more.

Your CQ Score is: [memb_contact fields=cq]

Take the next steps to increase your Connected Quotient

My closing thoughts on collaboration and partnership is about an incredible lesson I learnt from Hennie Bezuidenhoudt around partnership and that is ALIGNMENT.  He taught me that most people in partnership set themselves up for failure. When a husband and wife get married and one marries for love and one marries for money – will it last? When 2 business partners create a business and one wants to create a global empire and one wants a lifestyle business – will it last? It is obviously no, as they are not aligned long term. Yet when we invest we partner with people like brokers and financial planners who get paid a commission upfront and we as investors are interested in the long term returns. Or funds and REITs who get paid a AUM (Assets Under Management) which is a percentage of everything they are managing and not based on the performance of the assets. They too are not aligned and why only 1% retire wealthy as everyone else is setup for failure. See below in the FQ the part about Collaborative Investing, a success strategy of wealthy people which has been used for centuries. The most important thing here is that all parties have to put their own capital into a deal so they are ALIGNED long term. This is essential to long term success for everyone involved.

FQ is your Financial Quotient

This is all about the mechanics of finances, investing and real estate. It is knowing WHEN to do a deal, when to invest, what is value and how to generate wealth over time. As Warren Buffett says, “Be fearful when others are greedy, and greedy when others are fearful.” It is about the EARTH as the fundamentals of investing, finances and real estate never change and it grounds you in the reality of the facts, while you also need a clear understanding of timing and WHEN to do investments.

A great tool to understand where you are with your financial understanding and what to do to go to the next level is the Wealth Spectrum . There are 9 levels to wealth and these fundamental understandings of wealth are integrated into the Investor Test as these principles have stood the test of time:

 

Now let’s focus on the fundamental principles of Investing. 

Are you financially prepared for retirement? Do you know how true global wealth is generated? Are you a Global Citizen?

Unfortunately for many people, the answer is “no,” and they find themselves continuing to work longer, well past the traditional retirement age of 65. In fact, only one percent of people worldwide will retire “wealthy,” with the remainder needing to extend their incomes as long as possible, or find other avenues to obtain financial security. But what are the most profitable assets people should invest in?

One of the best ways investors can build and preserve wealth is investing in global real estate assets. Among developed countries, the top 10 percent of society can own between 56 percent of wealth in the U.K. to nearly 70 percent in the U.S.,  and such wealth disparity can be even more pronounced in developing countries. In fact, in the U.S., 80 percent of non-home (i.e., investment) real estate is owned by the top 10 percent of people in that country. According to the U.S. Bureau of Economic Analysis and as recently pointed out by investor Steve Roth,  lasting wealth is derived from capital gains from assets like real estate—not merely saving a portion of one’s salary.

Getting started in real estate requires some strategic planning and solid comprehension of the fundamentals of real estate investing. There are seven key “laws” of real estate investing that all investors should be aware of before attempting to build their own portfolio. 

Before we understand these laws, please also understand that technology is changing the landscape of real estate investing, just like Uber has in the taxi business, or Amazon, Apple, TripAdvisor, etc have done in so many industries. You can either now just invest directly as investors have done for centuries or you can use technology to enhance the process, reduce the costs, cut out the middlemen, increase the returns, increase the accessibility and ultimately take part of the buying power of Collaborative SMART InvestingTM.

Collaborative SMART InvestingTM.

With the advent of Collaborative SMART InvestingTM, people who traditionally did not have access to wealth-generating opportunities in real estate now have hundreds of potential investments at their fingertips online. With just a few clicks, investing in real estate offerings at significantly reduced investment minimums through online platforms is something wise investors are using to build their wealth and hedge against currency and inflation fluctuations.

It started with real estate crowdfunding which has experienced tremendous growth in the U.S. and other first-world countries, particularly since the U.S. Securities and Exchange Commission (SEC) amended Regulation D rules to allow for general solicitation of accredited investors. Regulation D comprises several registration exemptions under which most private securities are transacted in the U.S., and has a significant impact on the country’s real estate markets. 

Real estate developers and sponsors are utilizing crowdfunding platforms more than ever as traditional financing sources continue to restrict lending. 

It’s easy to understand why: technology brings efficiency and transparency to investment and portfolio management processes. For real estate professionals, crowdfunding deals allows for more marketing opportunities and access to a broader swath of investors around the world whom they previously did not have access to.  

Crowdfunding has transformed the real estate industry and made it much easier for people to seek out investment opportunities that could lead to greater financial security down the road.

To allow for global compliance and to ensure that we are were using the best of the technology we evolved from crowdfunding to Collaborative SMART InvestingTM. It is really important to understand how this benefits you as an investor over crowdfunding and it marries together the most sophisticated components of Collaborative Investing and technology. The components which make collaborative investing work are: 

  • First you must find the right local partners on the ground in the markets where you want to invest, 
  • Second you must get them to invest, 
  • Third you need them to believe in the model, 
  • Fourth you must conduct regular meetings, 
  • Fifth and most important of all, you must create two-way communication between the partners and the investors. (We use the platform as the medium for this communication)

Building a network of local partners and global investors takes time; however, if applied properly the benefits can be very rewarding. In the past this was virtually impossible for people to do on their own and yet now with platforms like Wealth Migrate, global investors can tap into our Trusted Global Real Estate Marketplace which we have been building for more than 2 decades.

Therefore, we believe that crowdfunding is merely a stepping stone to a far bigger purpose which Wealth Migrate is providing for, and it is only one of the pieces which has been adopted to provide a service which actually 10x’s the original concepts of crowdfunding.  Here is a graphical description of this evolution.

 

SMART stands for Strategic Measurable Asset Return TechnologyTM

  • Strategic – target a specific area for investment, with best opportunities in the best markets, with the best partners.
  • Measurable – quantify or at least suggest an indicator of progress & return.
  • Asset – specify the specific assets which are generating wealth
  • Return – state what results can realistically be achieved, given available resources.
  • Technology – using the most advanced technology to optimise the results and create a personalised path to wealth.

Click here to read more about Collaborative SMART InvestingTM , the future of investing

However, whether direct, crowdfunding or Collaborative SMART InvestingTM, the 7 fundamentals of real estate investing remain the same:

Law One – Understand the Fundamentals & Invest in Yourself

It’s been said that ignorance is the difference between truth and perception. This adage also applies to real estate, when new investors excitedly pour capital into new, seemingly promising deals without a proper education on industry fundamentals. Relying on the advice of (well-meaning) friends and family is an inadequate education and often leads to losing one’s investment.  (See IQ above – the starting point) Thankfully, the information age has made it possible for everyone to learn about investing in any asset class—but many may not know where to start. 

To get started, here are a few excellent resources that will provide a solid understanding of building wealth through real estate investment:

  • Think and Grow Rich by Napoleon Hill
  • Rich Dad, Poor Dad by Robert Kiyosaki
  • Real Estate Riches by Dr. Dolf De Roos
  • Property Going Global, by Scott Picken

These books provide a good starting point, but it will be up to the individual to continue to build on that foundation and consider investments carefully before pulling the trigger. As with any asset class, the world of real estate is cyclical -what goes up, must come down, eventually. Investors should take the time to plan for all possible scenarios, diversify across multiple regions and industries, and avoid overexposure to real estate or any class of investments.

Law Two – Do Your Homework, take responsibility!

Investing based on your emotions or a gut feeling is usually not a wise decision. Smart investors run the numbers through their systems first and make decisions based on sound financial facts, not only the possible returns the investment can generate. 

With an understanding of the numbers, they can also calculate the risks involved and ensure they can properly manage them. To achieve this they need systems and this is why you need your SQ above.

As with any investment plan, it is imperative for investors to do their homework first. One of the most important things to consider is the track record and expertise of the real estate developers or sponsors who have turned to technology platforms or other intermediaries to raise capital. Investigate their history – including past development projects – so you can determine if they are worthy of your investment. How did they preform when the markets changed?

I learnt a great lesson from Pieter Feenstra in 2009. We had just had the Global Financial Crisis and he said, “In rising markets anyone can make money. Even a turkey can fly in a hurricane. What you need to focus on is how they performed when the market changed.”  (Based on this we also ask developers for a 10 year track record as we are interested how they fared in the last cycle.)

Remember, developers are required to submit a company profile along with their real estate offering when they utilize a technology platforms. It is then up to the platform to conduct due diligence on each proposal to ensure they are viable before they are ever listed on their website. A good real estate technology platform will have its own internal team in place to assess the risks and rewards of its offerings for potential investors and should provide a transparent analysis of the investment. (See above the Wealth Migrate GIDDSTM System)

Nevertheless, investors should also perform their own due diligence process to assess risk and potential returns. Expect the best but prepare for the worst by exploring various scenarios that could arise, and then develop strategies to manage them.

With so many platforms to choose from, keep in mind that not all of them are created equal, so look for one that has thorough understanding of the real estate industry by vetting the company’s founders and management team. A team that has an equal balance of real estate experience and technology is more likely to have quality offerings that attract backing from investors. Also, real estate platforms that actually have “skin in the game,” meaning that they are invested in their own listed offerings, have their interests aligned with investors and thus have investors’ best interests in mind.

My Uncle always taught me that the best way to manage risk was to, “Work out what the worst case scenario is, and if you could manage this, then everything else is upside.”

Law Three – Buy from a Motivated Seller

The internet has made property viewing now instantly accessible, and investors are bombarded with a plethora of deals. However, one principle remains steadfast: the best way to make money in real estate is to buy the smart way. When buying from a motivated seller, an investor is dealing with someone usually in an emotional state and therefore can negotiate the best deal possible, and will no doubt get more favourable terms since the seller is in an inferior position.

Since the economic recession, there have been excellent opportunities through bank repossessions or real estate developers who may be facing foreclosure on their projects. At this point, it is no longer about profit for these sellers; it’s all about survival and the need to sell quickly. Numerous opportunities existed for savvy investors to pick up real estate from underwater developers. As with stocks, “buy low, sell high” also applies to buying real estate, whether you’re investing in whole properties or buying shares of many different investments through crowdfunding or using Collaborative SMART InvestingTM.

When purchasing a property outright, the best way to be in the superior negotiating position is to assure the buyer that you (the investor) can move and act quickly. Cash buyers and those with pre-approved financing from the bank are such a seller’s ideal investor, and most experienced investors look to buy real estate at 20 to 30 percent less than general buyers will pay. By investing alongside “the crowd,” investors also have access to better deals through platforms that allow them to move quickly like cash buyers in the past. They can use the collective buying power of the crowd and purchase deals at discounts, the individuals can’t get access to. (See CQ above on how to get involved with other buyers and find the right partners)

Law 4 – Build Relationships to Build Your Wealth

Networking and forming key relationships can help you build wealth, particularly in the world of real estate investing. Even though technology increases efficiency, nothing replaces old-fashioned relationship building and your CQ will go a long way to determining your success. 

Start by reaching out to like-minded partners who are considered experts in this space and find ways to work with them, as they are experts in their own particular market niche. Look for genuine investment technology players who have actual real estate experience and start building and nurturing those relationships. Time is one of your most precious and valuable assets, and should be used to develop a strong network of contacts, including real estate agents, brokers, developers, bankers and successful real estate investors. You never know who will be able to help you, or what kinds of opportunities could come your way by having a strong network of contacts. In turn, you will also be able to offer your expertise and assistance to others.

There is significant value in working with an experienced team, and greater results can be achieved when people work together instead of alone. Studies have shown that a flock of 25 birds in formation can fly as much as 70 percent farther than a solo bird using the same amount of energy—and the same is true with crowdfunding investments or Collaborative SMART InvestingTM. By leveraging collective buying power, new real estate investors can benefit from the wisdom the crowd and invest alongside the veterans and mentors.

Law 5 – Look at Cash Flow / Income, then Capital Appreciation

The economic recession has taught investors valuable lessons when it comes to real estate investing. From the biggest funds in the world to retail¬ investors, those who focused solely on capital appreciation, without having a “Plan B” in place, historically have not fared well, selling off their best assets or going bankrupt.

Mindset plays a big part in this (IQ), but it is also all about the FQ. Middle class investors are always chasing the quick buck, the capital growth and the Top 1% are chasing reliable and stable income. Let’s explore this. The middle class invest in houses, most often not generating an income and in many countries the investors actually have to pay in monthly. Why would they do this? They are focused on the capital growth. The Top 1% invest in commercial buildings as they are more interested in the cash on cash return, which is the net income they get on the investment every month or quarter. This makes them far more resilient to downturns and when winter comes, and it always comes, the middle class people who are chasing capital growth are often forced to sell. This could be retail investors selling their investment houses or even the big funds who are run by people with middle class mindsets.

It is actually during the leanest of times (winter) that investors can make their best returns. The reason why is simple: savvy investors see opportunity in a down market, focusing on both the upside potential and – crucially – projected income. These investors not only have a Plan B in case of a downturn, but they are also better positioned to “ride the wave” despite fluctuations in the market while maintaining more liquidity. Strong cash returns on investments put them in a much better position to buy from motivated sellers. As Warren Buffet said above, “be fearful when others are greedy and be greedy when others are fearful.”

It is virtually impossible to know whether any individual investment is a golden ticket – there are no guarantees or “sure things” in real estate, despite anyone’s best efforts. A good rule of thumb is to limit overexposure to any particular asset class, be it bonds, equities, real estate or other investments. In the face of low government bond yields, investors are searching for higher yields, particularly in alternative assets like real estate. However, as the latest global recession demonstrated, investors must prepare for economic downturns and ensure debt and equity investments are properly balanced. If you buy the right property in markets where the fundamentals are right, capital growth will come as a bonus.

Real estate technology platforms can offer unprecedented transparency and a variety of investments. Moreover Collaborative SMART InvestingTM allows investors to diversify globally, which mitigates overall portfolio risk by not tying up assets in one country or currency. Income-producing real estate investments and diversifying between debt and equity assets can help investors realize immediate returns while still providing opportunities for capital appreciation. It is all about DIVERSITY.

Timing is everything (FQ) and you need to know WHEN to invest and have the financial nouise to make sure you are making the right decisions.

Law 6 – Portfolio Investing and planning for the Exit

Most investors invest without an exit strategy. It is critical that you understand the value chain of real estate so that you can move up the value chain. The reason that less than 1% of people retire wealthy is they are investing at the wrong stage of the value chain. You need to do the 8 Steps to Wealth through Real Estate Micro Degree to fully understand how you can do this. Along with this you can create a Wealth Plan by doing the 4 Steps Wealth Formula Course.

Another lesson I learnt is that the real wealth is created in real estate using a portfolio strategy and focusing on the exit. This is a concept I learnt from some of the wealthiest investors who taught us and other investors how to do with this medical commercial real estate (CQ).

We started investing in medical commercial in America in 2014. Our strategy was to buy buildings where the equity required was between $1m to $10m USD. Using leverage this would mean real estate deals of $10m to $25m. These deals were too BIG for the moms and pops, doctors and dentists and too SMALL for the big funds or REITs and so it provided a great sweat spot to be able to buy quality assets with a cash on cash return of 8% to 11% in USD and net IRR’s of 15% plus for investors. Our strategy was to create a portfolio, season the rents and then on-sell this to a fund or a REIT. It is critical to understand the value chain of real estate and wealth to understand how important this deal to creating your long term wealth.

In 2019 we exited the entire portfolio, selling it to a REIT for over $100 million, providing returns better than the projected returns for our investors and in 4 years. This is using IQ, SQ, CQ and FQ to achieve results.

How can you use technology to leverage your investments and wealth?

Law 7 – Growing a Globally Diversified Real Estate Portfolio and creating the system to allow you to create the freedom you want in your life

The final law is the one which Einstein calls, “The 8th wonder of the world, Compound Interest.” Using a platform you can reinvest your returns from your investments and thus you are getting growth on top of growth. Due to the small investment minimums it allows you to reinvest all the returns, whether from cashflow or capital growth. In the portfolio sale above, our investors are using a 1031 exchange, which allows them to roll their capital growth into the next real estate investment, paying no tax.

I have learnt one thing from wealthy people. Other than focusing on income producing assets they also have the financial discipline to invest a portion of their income every month. I have taken 15% of our salary every month and it goes straight to our trading account on Wealth Migrate monthly, so we invest (before we spend it), in real estate.

We have created the 4 Steps Wealth Formula course to teach people how to create a Wealth Plan in less than 60 minutes.

Another great resource is Roger Hamilton’s Wealth Audit. Click here to get clarity on where you are and where you want to go.

Once you know where you are and where you want to go, the purpose of the Micro Degree for the 8 Steps to Wealth through Real Estate is to allow people to build their own personal path to wealth and provide you with the tools to allow this to happen. It is about helping you create generational wealth.

Your FQ Score is: [memb_contact fields=fq]

Take the next steps to increase your Financial Quotient

Using Collaborative SMART InvestingTM, platforms like Wealth Migrate has been able to surpass normal investment results, generating higher returns, with less costs and lower risks in a compliant and safe way. This is to the benefit of the investors, the partners and the platform, who truly are in a partnership with all their interests aligned.

At the end of the day the investor enjoys the investor process because they become part of it and ‘learn while doing’ and because they understand that Collaborative SMART InvestingTM costs them nothing while allowing them the freedom to contribute to the process. It truly does replicate the social laws of nature and why it is so sustainable, effective and efficient.

However to be truly sustainable, it needs to be about even more than the investor, the partner or the investment. It has to be about your SYSTEMS and how you measure your progress.  

SQ is the Systems Quotient

Once you have the WHY, WHAT, WHO and your WHEN it is time to start working on your personalized systems. People respect what you inspect and what gets measured gets done. Like when an airplane leaves from New York to London, after it is taken off and set its direction, it is constantly measuring its progress to ensure it is on track and change its settings slightly so that it stays on track for the planed destination. Investing is no different. Systems give you TRANSPARENCY on where you are, where you want to go and how you are making progress to this destination.

There is a reason that listed companies & Fortune 500 companies need to have budgets and then quarterly report on their progress to budgets. The wealthiest people on the planet use Family Offices and these teams of accountants and lawyers not only manage and protect the current assets, but they also track the returns, with a focus on creating generational wealth.

Unfortunately most investors use their gut feel, the opinion of a friend or family member or listen to their financial planner. They have no system upon which to load the data and review decisions. One thing I have learnt from wealthy people is that even if it is a spreadsheet, they have systems upon which to make decisions. They have systems for due diligence and they have systems to manage their investments. Examples of this are Dr Hannes Dreyer with Property Pro, Dr Dolf de Roos with REAP or many sophisticated investors and their spreadsheet systems. Dr Hannes Dreyer said, “Making money is actually boring as you have system and you just keep doing the same thing over and over again.”

A simple way to start is to develop your Wealth Plan.

Many of you would have read Rich Dad Poor Dad and understand the cashflow quadrant. This is explained here:

 

In our 4 Steps Wealth Formula Course we help you within 60 min to finalise a personal Wealth Plan to move from the Employee or Self-Employed quadrant to the freedom of the Investor quadrant, as quickly, simply, safely and predictably as possible, without being trapped by the financial industry, scammed, giving your power away to someone else or adding additional stress and hassle to your life.

In real estate we developed GIDDSTM (Global Investment Due Diligence System) which is a big data and algorithmic systems to help us use the fundamentals and data to make the right decisions about where to invest, when to invest, who to invest with, what to invest in and how to invest. It is so sophisticated that it was endorsed by the global strategist Clem Sunter who endorsed my book, Property Going Global. We later enhanced GIDDSTM 1.0 to be the residential system and developed GIDDSTM 2.0 for the commercial side. Click here to watch videos about our Inner Circle and GIDDS.

In our Inner Circle we are now providing access to all our Wealth Calculators to allow you have the systems you need.

 

We also developed Collaborative SMART InvestingTM to allow people to take advantage of the latest technologies, while remaining globally compliant and using the fundamentals that the wealthy use to invest safely.

In the 8 Steps Micro Degree I also share my personal systems from my long range, annual and quarterly goal setting and monthly reviews of my SMART goals. I share the systems we use in our family and how we have created a family office with minimal expense, yet copying the principles’ of the top 1%.

There is a law in nature. If you want something then find someone who has it and copy them. A master expect problems, find solutions, takes the easiest route, looks for others who have done it and models them, as success leaves clues.

Systems allow you to recognise patterns and anticipation gives you power. With your systems you need to become a student of patterns and pattern recognition.

You have three choices you can create your own systems from scratch, you could borrow others or partner with them to get the same results as they getting. The important thing is you personalize them for yourself and what you want to achieve in your life. It is about your own personal path to wealth.

SQ is on the left of the spectrum as it is about the HOW. It is a STEEL energy as it is all about systems and details.

Once you get started it is essential you have the systems to track your progress, while also having systems to protect your assets.

The irony is the wealthier you get, the more complicated this becomes and the more you are going to have to build your team to help you to not only multiply your wealth, but to protect it.

Our vision is to put SMART InvestingTM in everyone’s pocket where they can create their own personal path to wealth. If you join the Inner Circle will get access to all the systems which we use and these are constantly evolving, being enhanced upon and improving.

Finally we believe in the Kaizen principle which is Japanese and helped Toyota become the greatest car company of the 20th century. It is about once there is a problem or mistake, it is not about fixing the problem, but about going back to the source and ensuring it never happens again. It about constant and never ending improvement. You can do this on your own, or you can join a like-minded global community and we can co-create better systems for everyone. Go to the Wealth Migrate platform for more information about this or join our Inner Circle.

Your SQ Score is: [memb_contact fields=sq]

Take the next steps to increase your Systems Quotient

The most important thing with systems is to have a plan. So dream and plan where you want to be in 12 months, 5 years, 10 years etc and then work backwards to figure out how to make that happen. Make sure you write it down, figure out the milestones and the conditions of success, get started and make sure you measure your progress, adjusting where necessary. (I teach you how to do this properly in the 8 Steps Micro Degree)

Finally, some people don’t like the hassle and the detail, but remember, that wealthy people have the financial discipline to do today what others don’t want to do, so that one day they don’t have to do what others have to do.

WQ is the WealthE Quotient

It is sum total of them all and it is the energy and spirit which drives you. It is related to the 5,000 year old five elements in Eastern Philosophy, with the top element being Spirit.

Your WQ is the reason for your existence. It’s all about creating the FREEDOM you want in the life for you and your family. It is about where you live, where your children go to school, what your day job is, where you go on holiday, who you donate to and what impact you are having on the planet. It is about your legacy.

The bottom line is it all comes down to PASSIVE INCOME. It is the reason there is a bonus question so that you can calculate the amount at which point you are financially free. What I believe is that clarity is power and so once you know this number you can work backwards to create a plan to make it happen.

If you don’t know what passive income is, or you want a plan as to how to create it in first world countries with first world assets, then you should do the Micro Degree on the 8 Steps to Wealth through Real Estate.

Everyone should be constantly striving to increase their WQ, however it is essential to understand sequencing and that to find flow you need to stay in a rhythm.

Sequencing and Rhythm

As discussed in the laws of nature spring comes before summer and autumn comes before winter. You cannot skip a season. It is the same principle for investing.  You need to go from PQ to IQ to CQ to FQ and then to SQ. The cycle repeats itself in a circular fashion, just like the seasons.

 

 

If you skip a step you will fail. Obviously as we grow in life, like the seasons in nature we repeat the cycle and what you have to ensure is that you move in a upward cycle.

 

Another way of looking at this is the 6 things which investors need:

Children can start early too

Everything we have spoken about is for you, however what about your children. Imagine if you had started investing at the age of 5 and learnt while doing as you grew up. How much further along your own personalised path to wealth would you be? As discussed above, on the Wealth Migrate platform children of any age can sign up and you can create accounts for them and invest with them. Let them start early to create the freedom they want in their lives.

Conclusion

You will see in your Investor Report, the bottom had the amount of passive income which you are on and the top of the report had a scale which represents your Freedom, Fun and Impact Index as the two are 100% correlated. If you want more freedom, have more fun and have a bigger impact on the planet then you need to figure out how to grow your asset base so you can have more passive income.

Hopefully by now you have a solid foundation to help create the wealth needed to retire comfortably or even join the 1%. Collaborative SMART InvestingTM is poised to revolutionize real estate investing and other alternative asset classes and offers investors exciting opportunities to pool their resources and accomplish great things. By doing some diligent research and strategic planning upfront, investors can build wealth through real estate and make their dreams a reality. 

In conclusion everyone asks us, “Why is WealthE with an E?” The reason is that the E represents whatever is important to you for your own personalised path to wealth, whether it is:

  • Education
  • Electronic
  • Empowered
  • Engaged
  • Exponential
  • Enlightened
  • Easy

This is your journey. You only get one chance and so make the most of it! Good luck and enjoy it!

 

Your WQ Score is: [memb_contact fields=wq]

Take the next steps to increase your WealthE Quotient

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