Video courses by John Jay.
Business and Entrepreneurship. Create income for yourself without getting an extra job. With risk, you can make money. Do what others are already doing.
Every month I buy products--Amazon, Shopify, etc.
They're buying things they're going to be using again and again. find a website that is selling it even in bad economic times, vanity products, provide comfort, like pet supplies, toys, they'll but in almost any economic times.
exercise gear. I want risk that I can manage.
Can't avoid rent, can't offset that.
3:55. Maybe you don't like the product but you know it's being sold, right? Become a consumer, go shop for the thing and think to yourself, "Gosh, can I sell this thing? Who is selling it? Who's got a website that's selling something like this, or who's got a website selling stuff that I can replace with the stuff I want to sell? Start thinking like that right so what I typically tell people is buy a website that is selling a vanity products and usually the asking price the criteria for this is the asking price for beginner someone who's never done this before the asking price should be within 6 months of the net income of the business let's say a year okay a year means more risk right so let's say it's netting you to $2,000 a month and it's going to cost you let's say the seller wants $8,000 so it's going to take 4 months of net income to pay it off why do I say it like that well that's a pretty manageable debt it's not really a debt because you're investing in an asset you're investing some way to produce money without working for that money okay but why would I want something that is going to net me $2,000 a month and it's going to cost me $8,000 because when I make the offer to the seller maybe he's going to be willing to finance it to me. Okay you think well who cares about financing $8,000? I do. If I had $8,000 in my pocket, I'm still going to borrow it from you. Okay, because that's what you do; it's just what you do. Why not always offset your risk every moment you get a chance, right? So it gives me a good opportunity to go to the seller and say, "Hey, I like it, and yeah you only want $8,000 (and I know I'm speaking hypothetically here) but you want $8,000, can you finance it to me? If the seller says no or hesitates, I'm going to ask him why. Why would you not finance it to me? It's such a low risk and I don't know you and you get your money.
5:40. It's only $8,000 and if the numbers are really what you say they are then why would you have a problem financing it to me see it it gives you a little bit in my opinion it gives you something to talk about for negotiating for financing you always go to the seller for financing first. That's what you should always do. I don't care if you're a millionaire. Always go to the seller for financing; you can always refinance out by the way. But to start out with, especially if you're new, get something like that.
6:06. What do I really want? Everybody is gonna say "I want to sell a thing to everybody on Earth," and "I want to be a millionaire." Okay, that sounds really nice, but let's just be practical here, all right? You got a job, you learned how to do that; you've learned how to do a lot of basic things to make you where you are economically. So let's just do something a little bit different. Let's try to create some cash flow without having to work for it . . . well, you are going to work for it but it's not going to be an hourly type of activity, or vocation.
6:36. So why am I doing it? Let's have a purpose. Not because John Jay said it's a great idea, but what you want to do is maybe offset your mortgage payment. Can you imagine making your mortgage payment because the website over here is working? You check in every day with your phone, and make sure the shopping cart is working. Make sure the website is still loading. Make sure there's no broken links. See if there's any problems with refunds. Oh, and by the way, you don't have inventory, because you set this up to where someone else is shipping the inventory and restocking. Well, you got to make sure that you're doing that right, so basically you can run the thing with your phone after you get going for a while. And this is what I told my children, you know, I said, "Forget going to college. There's no college unless you want to go to a technical university or a foreign university that's actually still a university. Don't do that. Instead set up a website. This is what I told my children starting 10 years ago, "Make money as an entrepreneur. Use a website. You can use technology to make money, and then travel around the world and have that pay your way to travel around the world. And work for people. Sometimes you can work for people for free so you can learn. That is, I think, the best way to learn," and this is what I told them. So they're kind of doing that now. They are a little afraid but they're kind of in that position to do that. And I'm suggesting to my clients to do that. When someone comes to me with student loan debt and he's 25 years old, or like that, I'm going to show him how to set up a website, to make money to offset the debt payments for the student loan and then pay it off, pay it off with an asset. If you come to me with a student loan at 55, I'm going to wonder why you have a student loan at 55, but I'm going to probably make it to where you're uncollectible. I'm not going to try to show you how to pay it off, right? It just depends on your age.
So this is a tool that you can use to offset a typical liability, a mortgage payment, where . . . you're all really good about doing the thing our neighbor did. You own a house. Your neighbor figured out how to own a house. He went to the bank. He figured out how to qualify for a mortgage, so did you. But did you acquire an asset before you acquired the liability of a house? Did you go and buy a house and start renting it to somebody else, and then take that income and use it to go buy a house to live in? No, you went to buy a house. You went and bought a house to live in first; you bought the liability first. You learned how to do that first. I don't know, maybe that's what we're supposed to be doing. I'm just thinking if you want to be ahead of the rest of the pack, let's say, if you want to be ahead of most people, if you've already figured out how to buy a house and go into this huge debt to incur this huge financial liability, why not make those payments, those monthly payments from something you can buy for like $8,000? Maybe it's going to cost you $20,000. Okay fine. Maybe it's going to cost you $30,000, and maybe to get the $30,000 you have to use your credit card. And you're going to use your credit card not to buy the business, but you're going to use your credit card to offset another liability you have all the time and then take the cash you would have normally used to make those payments and use it to buy the asset. There's all kinds of ways to do this
9:50. This is what I normally tell people. That's the criteria--find something that with the net income it's going to take around 6 months to pay it off if you were to get financing. It doesn't have to be that way. You could take 3 years. It depends on what you have a stomach for. You could set up a deal and maybe you're going to lose sleep every night. You don't want to be in that situation either. Pick something you can handle. I always give the example of something that is under $20,000. About 3 or 4 years ago, one of my clients was doing that. This gentleman was 26 years old, and we had the same conversation, here's what you do, one, two, three. He went and did that and it didn't work. He made an offer like I told him. He did exactly what I told him, and it didn't work. And before he even made an offer on the first website business, he went through 20 to get to that one offer. He made the offer, and somehow it didn't go through. I forget what it was, maybe he couldn't reach a deal with the seller. I don't know what it was, but he didn't tell me. As he was doing that, he told me afterwards when he finally succeeded, it took him 6 months, when he finally succeeded he said, "You know, I was going to call you when it didn't work the first time. But he said I knew that you would tell me to go look for another one, so I didn't bother calling you." And he was right. I would have told him, I would have said, "Look man, don't call me. Go get another deal." That's how it works. What am I going to do, right? So he did. He went to find another deal and he found another deal after looking for it, and that failed. He made an offer and it didn't work. So again he didn't call me, thankfully; not that I don't mind talking to him but still what am I going to tell him? Go get another deal. So he did. He went and found another deal. So now this one wasn't the $20,000 deal it just turned out it was a $200,000 asking price because he was working with a broker and the broker this is what I had him do this is why it's useful to work with professionals that have resources and contacts okay it's not just because he's the professional it's because you don't have to reinvent the wheel with a broker in this case he already knows who to go to and and what to say right so the broker hooked him up with a lender and this guy had good credit now I'm not saying you need good credit to do this it just worked out great for him so is as he was able to finance he did exactly what I told him he asked to sell her to finance it the seller was a corporation seller said yes they financed 40% of this $200,000 he went to the lender in the lender said we'll Finance the other 60% he bought himself a website business, a tech-type business, for $200,000. He paid the asking price he got 100% financing and the net income on it was $13,000 a month I'm not saying everybody is going to walk into that kind of deal this guy just happened to walk into that deal but was it more difficult than an $8,000 website I asked him after it was all done in fact I have an interview on this I don't know if you've seen it before what I asked him what was the effort if you compare getting a mortgage to doing what you just did buying a business that's netting you $13,000 a month what effort did you undertake compared with a mortgage and he thought about it for a few seconds he said it's about the same effort. Paperwork and everything it was
13:25. AMAZON BUSINESS. So why the heck aren't you doing it. Okay with that being said I'm going to introduce you to something that one of my clients was very kind and generous enough to introduce me to and I think I'm going to do it this is a side thing for me I'm always going to do a side Hustle I'm not going to turn down free money I looked at it like gambling and I have to say I'll put some cash into cryptos I made some money in it and I'm out I don't even like doing stuff like that. A few years ago my wife did this again because I like to stay focused on my profession I can't turn things down so I had my wife run this Amazon type business she has eBay and stuff like that and so after a Time Amazon appeared to be just so I said well just close the account why struggle with it you're not buying you're not a big buyer you're not buying a half million dollars of inventory the other guys are why are you competing with them you can't do it so she close it down the other day my client came to me and said there's a company that's allowing you to come in with $10,000 or $5,000 to come in there and buy inventory at the same rate that the big companies are buying at $500,000 a month you can get the same rate that allows you to compete with them moreover this company is actually managing the website for you and I'm not talking about vanity products I'm talking about anything you want to sell on Amazon wouldn't you like to get a piece of the income stream from Amazon all you need is a website and the algorithms and what Amazon is doing you get access to the trade secrets that Amazon has you're not going to get the trade secret but you're going to get the buying power from this group and you're going to get the strategies that Amazon has because Amazon wants you to sell stuff in a way that you're not competing on price.
15:25. If you want to do this . . . I don't want to talk to people that just want to talk to me. They're not serious. You need to have the ability to put up $5,000 for 3 years worth of service. They are going to do it for you and the ability to buy inventory. I would suggest that you have another $5,000 for purchasing inventory. So let's say you have $10,000 to spend the first 5,000 is cost the next $5,000 his inventory the websites TurnKey they run it for you they help you buy the right products put them and it's all done. It's a turnkey operation, and you just roll that money back over and get more inventory. I can tell you, in the last 3 months he's made close to 40%. He's made a return on his investment of close to 40%, anywhere from 26% to 43%? Somewhere in that range that doesn't mean everybody does that he says you got to pay a little attention to it is all that you have to do.
16:38. I'm offering this to people with what I just said at about the ability the method the strategy of getting a website that makes money it doesn't have to be a website you can do a joint venture with somebody and make money I'm not talking about that tonight talking about setting up a way to sell consumer products that's already they're already being that are already being sold the only thing is you're missing from that equation I'm telling you to go sell those things consumer goods. There is a already a turnkey system through an Amazon affiliate who set up a platform that gives you access to the same ability as a larger business that is spending $500,000 a month on inventory you only got to spend $500 this gentleman that introduces to me said he's so far invested in reinvested he's so far invested and reinvested a total of 42,000 in just a few months and he's in there like around 40% return on investment 38% something like that. He says, "I don't even want to take profits yet." He says he doesn't want to take profits until he has a rolling net worth, like a rolling inventory around $150,000 worth of inventory and he's going to net himself around $20,000 to $30,000 a month. What the heck can you do with that money? You can really go out and buy that 7-Eleven, right? You take that cash and use that cash as leverage to get financing to do something else.
18:09. You can also do something like this. Let's say you set up this business right and you use my strategies on the LLC you make that LLC the owner of the business the payment processor and you start making this money right now you've got yourself a balance sheet with cash flow and a net worth and let's say you did that today let's say you got it going and into the summer you're starting to make money and it's not going to take that long but let's just say into June right so let's say by the Fall you've got this money rolling along and you got this cash flow let's see I don't even know what we're talking about let's just say we're talking about a value of $20,000 what can you do with a business that's worth on its face $20,000?
