Lose Your Watch, Get A Talent (Advise for Well-To-Do Business Owners)

The other day I was having dinner with some of my friends when one of them asked me how they should hire, and most importantly retain, talent. Now it is important to note the context in which this conversation took place to get rid of some misunderstanding.

Dinner is more than just an occasion to eat.
It is also a time to connect, learn and ask questions.

My friends in the room are all developers. Many of them are, in fact, more well to do than I am. In fact, one of them is wearing a watch, which if memory serves me well is valued at RM 700,000+ minimum. Of course, his is an exceptional case, the average price of the watches in the room is probably RM 200,000. It was on this basis that I started my advice.

I tell them, “Just pretend that you have lost a watch a year.” At first it caused some confusion, but soon it become clear. Assuming that your watch is RM 240,000 per year, it translates to RM 20,000 per month. I am sure you would agree with me that an executive who can command a pay of RM 20,000 should be quite a talent himself and is quite capable.

We should hire people like these and give them a clear set of goals. If during the 3 months probationary period they are able to achieve their targets, then we know that these are the people we should keep. Otherwise, after the three months probationary period we can try other candidates.

Give your talent a clear goal to chase after… and you will see miracles.

How many quarter are there in a year? Four. Assuming that we need only one of these candidates, then there is a 1/4 chance we will be hiring a talent within the year. 25% chance! If let’s say within the year we are still not landing a talent?

The short answer is – repeat process. That’s 1/8 change of hiring the right person. 12.5%. I think by now you would agree with me that there is a high chance that you will land yourself the right candidate within the next 24 months.

The key here is to reinvest in your business. Many small and medium enterprise do not walk the talk when it comes to this matter. They make that few million ringgit (under RM 5 million) and spend the money on themselves instead of in their business.

The result? The business doesn’t grow and they are wondering why. That small profit that you are making is actually “seed money” for you to expand your business. Just like how you need some seed money to start your business, expanding your business also requires capital.

If you prefer to spend the money on yourself instead of in your business, in searching for talent to help you grow, the choice is up to you to make. Just that now you cannot be wondering why your business is not growing anymore, you know the answer now – it is because you are not feeding it!

Simple logic: What you feed, grows.
What you don’t feed, doesn’t.

首购族看这里: 第1个房产就这样买!

老师我今年才21岁还在念书,怎样买房产呢?”

我在 Facebook 收到很多年轻人的留言,他们想要买房产,可是还在念书,或者刚出来社会工作,经济上不许可,应该怎么办?

无可否认,买房产买得越早越好。可惜的是,您必须年满18岁才能签署按揭协议和买卖协议。否则,法律将假定你仍未成年,不能签署有效的合同。所以就算我说越早越好,前提是你也得达到18岁。

*************

这里有个案例

Hebe今年21岁,她在某公司任职协调员已经1年了,每个月领RM3,000 的薪水。最近她在房地产展销会相中了一栋位于 Seri Kembangan 的公寓,房价 RM250,000。这是她第一间房产,所以她想要向银行借贷90% 。

请问,Hebe 买不买得到这栋公寓呢?

**************

当你在玩游戏的时候,你必须搞懂游戏规则。同样的,买房产必须搞懂银行发贷款的规则。每一家银行都有不一样的条规,但八九不离十,以下盘点了几个重点让大家参考:

1. 计算贷款能力 (LA)

我经常教我的学生,买房产之前先要做的第一件事,就是计算LA。如果你连LA这一关都过不了,你就不用浪费时间去讨论买与不买的问题了。

通常第一和第二间房产可以向银行申请到90% 的贷款。以这个故事为例,Hebe想买的是第一间房产,所以她可以获得 90% 的贷款。

杠杆比率 1:9
房产价:RM250,000
想申请的贷款:RM225,000

步骤项目输入
1薪水2,500 
2乘于 (×) 0.82,000扣除所得税、公积金、社保 【80%】
3乘于 (×) 0.71,400债务偿付比率 (DSR) 【70%】
4减掉 (-) 每月房屋贷款数额0每月义务
 减掉 (-) 每月汽车贷款数额0 
 减掉 (-) 5% 每月信用卡余额欠款0 
5余额1,400杠杆能力/借贷能力 
6乘于 (-)200280,000魔法数字 = 200
每个月的开销要规划得当,你才能知道剩下的钱足不足够用来买房。

没错,Hebe的LA可以去到 RM280,000!
也就是说,让银行轻易审批这栋公寓贷款的机会跨进了一大步!
但是,如果她要买的房产价格比较高 (比如 RM500,000),LA过不到怎么办?

2. 增加收入

从以上的LA计算表,我们知道收入证明是最关键的一环。以Hebe的情况来看,她没有其他房产和汽车贷款,所以每月义务不是可以着手的重点。反而是收入,Hebe 可以想办法增加自己的收入,好让自己的借贷能力可以加强。

还有一个方法就是‘联名买房’。Hebe 可以跟父母或兄弟姐妹联名,借用他们的收入证明来加强借贷能力。比方说,Hebe找妈妈一起买房:

妈妈的薪水: RM8,000
妈妈的每月义务:-
房贷:RM2,000
车贷:RM1,000

用以上的LA计算表来计算,妈妈的借贷能力是1,480,乘于魔法数字200,她的LA 是RM296,000。所以,Hebe和妈妈联名买 RM500,000的房产绝对可行!

年轻人,万事起头难。只要你踏出第一步去拥有自己的第一间房产,接下来的第二间、第三间、第四间……. 都不是问题了!最重要的是,我们要清楚明白,为什么我们要买房产?我们的目的是什么?

有些人买房是为了给家人更优越的生活品质;有些人买房是为了借鸡生蛋,用房产来得到更多被动收入。无论你的理由是什么,你都要掌握基本的房产投资策略。如果你不懂,就要读多一点相关的书籍,或者是直接向有经验的人学习。

有兴趣了解更多关于拿督斯里黄天成老师的课程?你可以联络我们的团队 @ 010-2008828 或Facebook PM 我们!

:不同银行有不同的贷款能力计算法,贷款之前请与您的借贷银行做好沟通。

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This Will Make You Realised You Can Buy Your First Home Too!

“Adrian, I am only 21 years old this year and I’m still studying. Can I possibly buy my first property?

It is a very common issue these days – young people struggling to get a house. Hey it is not as hard or complicated as you think it is!

I have received tonnes of Facebook messages from young people (the millennials). They would like to purchase real estates, but they are still studying, or just got their first job after graduation and is not economically stabile. So, how should they go about this problem?

There is no denying that the sooner you buy a property, the better it is for you. However, do take note that you must be 18 (age of majority) before you can sign your mortgage agreement and Sales and Purchase Agreement. Otherwise, the law will assume that you are still a minor and cannot sign a valid contract. So even when I say the sooner the better, there is a general presumption that it must be above the age of 18.

***********

Graduation is just the first step to step into the employment world!

Here is a case study:

Hebe is 21 years old. She has been a coordinator for a company for a year and has a monthly salary of RM3,000. Recently she was in a property fair and leaves with an interest to buy an apartment in Seri Kembangan for RM250,000. This is her first property, so she wants to borrow 90% of the purchase price from the bank.

The question is: Can Hebe buy this apartment?

************

If you want to play a game, you must first understand the rules of the game. Similarly, when purchasing a property, you must understand the rules of mortgage loans. Every bank has different regulations, but it is not far different from each other. These following are some of the key points that all the banks will refer to:

  1. Calculating loan ability (LA)

I often teach my students that the first thing to do before buying a property is to calculate LA. If you can’t get through even the initial LA stage, you don’t have to waste time talking about buying or not.

Usually the first and second properties can apply for a 90% loan from the bank. Take this story as an example. Hebe wants to buy the first property, so she can get a 90% loan.

Leverage ratio 1:9

Property price: RM 250,000

Loan to apply for: RM 225,000

Steps Item Input Note
1Salary2,500 
2Multiplied by (×) 0.82,000After income tax deduction, cost of living (80%)
3Multiplied by (×) 0.71,400Debt Service
Ratio (DSR) 
(70%)
4Monthly
mortgage /
rental
commitment
0Nil. Figure will
change
depending on
your own
obligations.
 Monthly car
commitment
0 
 Monthly credit
card
commitment
0 
5Balance1,400Leverage /
Lending Ability
6Multiplied by
200
280,000Magic
Number = 200
Calculate wisely your monthly expenses and how much money left for you to buy your property is crucial.

That’s right, Hebe’s loan ability can go to RM 280,000!

In other words, there is a high chances that the bank will approve her loan for up to RM 280,000!

However, what if the price of the property she wants to buy is RM 500,000 instead? We all know that it is quite hard to find a property priced at below RM 300,000 in the city centre, right?

If that is the case then we must refer to the second step below.

2. Increasing income

From the above LA calculation table, we know that the proof of income is the most critical part. In the case of Hebe, she has no other mortgage and car loans, so the monthly commitment is not the focus that can be started. Instead, income, Hebe can find ways to increase her income so that her ability to borrow can be strengthened.

Another way is to joint name. Hebe can work with parents or brothers and sisters to borrow their payslip to strengthen their ability to borrow a mortgage loan. Let’s say Hebe is looking for her mother to buy a house:

Mom’s salary: RM8,000
Mom’s monthly obligations:-
Mortgage: RM2,000
Car loan: RM1,000

It is okay to ask for a little help to start off in life – like Hebe asking help from mom to finance her first property.

Using the above LA calculation table to calculate, the mother’s lending ability is RM 1,480, multiplied by the magic number 200, and her LA is RM296,000. Therefore, it is absolutely feasible for Hebe and Mom to jointly buy a property of RM500,000!

As a young person starting out in life, everything is difficult at first.What is important is that you take the first step to own your first property, then second, third, fourth properties should be easier.. Furthermore, we have to understand clearly why we want to buy a property? What is our purpose?

Some people buy a house to give their families a better quality of life; some people buy a house to leverage on it and use the rental to get more passive income. Whatever your reason, you must master at least the basic of property investment strategy. If you don’t understand, read a little more related books, or learn directly from experienced people.

If you are interested to learn about property investments, you can contact our team @ 010-2008828 or leave us a message here or at Facebook.

Disclaimer: Different banks have different methods to calculate your Loan Ability. Please communicate with your bank before proceeding.

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Finding Your Passion

“Dear teacher, I can’t seems to find the things which I like to do. How do I find my passion?”

One of the greatest sign that you are doing what you are truly passionate about is that the activity puts you “in the zone”. If that activity can put you in the zone, chances are that is what you are meant to be doing in life. Indeed, if you have lived your life not knowing what your true calling is – that is a life not worth living.

I cannot tell you what you are good at and what you should be doing, but I will tell you how it feels like being “in the zone”. Chances are if whatever it is that you are doing can put you in the zone, then you should be doing more of it.  

Being in the zone means being in an immersive experience to produce the best version of your work
  1. Not Noticing the Passing of Time

Have you ever done something and focusing so intensely that you no longer notice the passing of time? Take for example in writing this book, sometimes I wouldn’t even know that lunch time is near if not for my colleague asking me out to eat. When preparing for my talks, sometimes I would look up and realised, “Oh. It’s already 2am!”

I didn’t even notice that. To me, my entire focus and dedication is to finishing the task at hand that time itself is no longer relevant. That is the first major sign of being in the zone and that you are truly enjoying what you are doing.

Imagine going on a class that you find boring. You will look at your watch repeatedly and think, “Oh God! When is this going to end?” That is the direct opposite of being in the zone. Keep looking at your watch and constantly finding distractions means you are not enjoying what you are doing right now.

The concept of time is no longer applicable to you once you are “in the zone”

2. No Other Feelings

Another obvious tell-tale sign that you are being in the zone is that noises no longer disturb you. The obvious reason for this is because you are intensely focusing on the task at hand. Whether it is people talking or the background music, it no longer concerns you.

In fact, even as the activity is energy consuming, you will not feel hunger. You can go on hours after hours not feeling hungry. Your aim in mind is quickly, efficiently complete the task at hand regardless of your body physical condition – whether you are hungry or tired.

That is why once the task is done, and your attention shifts to your body, the first feeling you will notice is the intense tiredness and hunger.

You are doing it because you like it – regardless of profit or public opinion

3. Enormous Joy

Whatever it is that you are pursuing, regardless of the results, will give you enormous joy. If you are doing what you enjoy, you will keep doing it regardless of results or public opinion of your work.

You see, you are not doing anything for anyone at all. You are doing it for yourself. You are doing it because you enjoy doing it. This is a very powerful state to be in.

Many a times we stop developing our fullest potential because people tell us that we are no good. Can you imagine if these little voices by these little people no longer bother you? That whatever it is that you are doing is truly for yourself – there is no telling when or where you will stop in developing your fullest potential.

Find joy in your work and your work will no longer be an arduous task

So there you have it. The signs that you are being in the zone and on the way to develop your fullest potential!

Refinancing & Building True Wealth in Property Investment (case study)

translated from: 富债为王:【真人真事的人身经历!】

Mr. Lai bought a property worth RM130k in Puchong in 2009.

He then bought another property in USJ worth RM270k in 2012.

A photograph of the vibrant and lively “Die With Massive Debts” course

Since these 2 properties are not for own stay, but as investment tools, he has to manage his funds carefully after he successfully borrowed from the bank.

First things first, don’t simply spend money. The bank will only lend you money if you have:-

  1. Good credit record;
  2. A stable source of income; and
  3. Good borrowing ability.

Furthermore, buying property or not, you will still have to plan for your finances every month. As you receive your monthly salary, segregate them into different funds as follows:-

  1. Basic living needs;
  2. Investment;
  3. Entertainment; and
  4. Donation

Mr. Lai manages his finances well and did not simply spend his money. He hasn’t been sued by the bank before because he failed to service his loan.

In 2016, Mr Lai went to Dato’ Sri’s “Die With Massive Debt” course. Through the “72 Rules,” he finally understood that the market is growing at an average rate of 7% per annum, so the price of the property should double every 8-10 years.

Therefore, eventhough Mr. Lai would very much like to sell his property off at that point, he choose to believe in Dato’ Sri and hold the property for another 3 years.

In 2019, he uses these two properties to apply for a loan from the bank.

Here is the market valuation:

The first property has a market capitalisation of RM310k 80% = RM248k;

The second property has a market capitalisation of RM600k 80% = RM480k.

The calculation:

First property: RM248k – RM90k (remaining loan amount) = RM158k.

Second property: RM480k – RM200k (remaining loan amount) = RM280k.

In other words, Mr. Lai has another RM438k in cash.

As you can see here, once you get the money your heart and hands will be itching and you would want to spend it all. But teacher did said in class before that this is not your money! Do not be impulsive! Do not be hasty!

Mr. Lai uses this money as a reserve just in case something happens and he needs to use a sum of money.

Take the property, leverage on the property. When the money that you had borrowed is from property, you shouldn’t spend it on expenses that are not related to the property. Mr Lai’s approach is a good example for all of us.

He put the money in Fixed Deposit as a reserve for rainy days. Even if you rely on Negative Gearing to collect additional revenue, the housing market will have its rainy days. The most important thing for us is to survive on rainy days.

It’s really that simple! Refinancing is the secret weapon of almost every millionaires playing the real estate game!

However, some people will still say, “Yes! This is the game of multi-millionaires! You try to call a person who won the lottery to use the money. In 5-10 years, he will definitely spend all his money due to poor financial management.”

However, Teacher Adrian, being “poor” rests in the mentality. It is not a right tool to measure a person’s financial situation. If we keep thinking like a “poor” man, we will never be rich.

Teacher’s mission is to let more people achieve real wealth through financial investment. He wants us to deep dive into a different kind of thinking and method to achieve wealth through real estate.

This is the reason why he has been working so hard to hold the “Die With Massive Debts” courses throughout the years and throughout the country, because he wants people to understand that wealth is not gained through saving money, but through wisdom and a change in mindset to “leverage” money instead.

If you are interested to learn more about our course, kindly contact our team @ 010-2008828 or leave us a Facebook message!

Alpha Wolf Stories: The True Meaning of Leading from Behind

Every now and again, you run across something that just gets to you… it really sticks. Whether it be a poem, motivational quote, a book, or maybe a story of business success, often times, these bits of inspiration stay with us and help keep us entrepreneurs moving forward.

Today, while scrolling through Facebook (as us Millennials like to do), I ran across an image of a traveling wolf pack. At first, I thought the image and post was a bit odd. But then, when I clicked to read more and read the story and meaning behind the image, it resonated with me. And although I’ve heard of similar analogies, the photo really brings the point of “leadership” home, so I wanted to share.

A group of wolves: The three in front (red circle) are old and sick. They walk in front to set the pace of the running group to ensure they get don’t left behind because more than likely, if an ambush happened, they would be sacrificed. The next five (yellow box) are the strongest and best of the pack. They are tasked with the job of protecting the front of the pack if there is an attack. Naturally, the pack in the middle are always protected from any attack. The last (almost) five behind them (green square) are also among the strongest and best; they are tasked with the job of protecting the back of the pack if there is an attack. The last one wolf pictured (blue arrow) is the LEADER. He ensures that no one is left behind. He keeps the pack unified and on the same path. He is always ready to run in any direction to protect and serve as the ‘bodyguard’ to the entire group. 

It’s a great story, right? But, how does it relate to business?

If you think about the qualities and characteristics of the Alpha wolf, you would think of confidence, loyalty, trusted, strong, and knowledgeable of the pack. Right?

Those characteristics remind some of a CEO of a business. But is that entirely true?

Unlike the wolf who has so much confidence in his ability to fight off a “disruptor” during an attack and who would sacrifice everything to protect his pack, not every CEO has wolf like traits.

In larger corporations, many questions whether or not their CEO (or C-Suite) have what it takes to fend off unexpected disruptive attacks. And as we’ve seen from many top C-Suite members, often times when the going gets tough, they cash out before they’re “eaten alive.” However, owning a small business is a bit different. Your employees tend to be like family. Often times, many business owners become great friends with many of their customers.

So, to tie this all together… are you considered to be a trusted Alpha? Are you a strong leader? Would you protect your pack at all costs?

Leadership isn’t about being the most visible, the loudest, or even the highest earner. Leadership is truly about leading from behind. Real leaders are the types who want to share their success rather than bask in the glory, and those who when things go wrong, take ownership and take the fall to ensure their team is taken care of. As I always like to say, “Teamwork makes the dream work.”

Just some food for thought. Maybe this story will resonate with you as much as it does me and help you keep your pack unified and on the same path.

Source: https://www.jashleypanter.com/the-true-meaning-of-leading-from-behind/

富债为王:【真人真事的人身经历!】

2016年,赖先生上了拿督斯里黄天成老师的《富债为王》课程。通过72法则,他终于了解,市场每年平均以7%的通膨率在增长,所以房产价格翻倍的时机应该在8-10年后。虽然赖先生在还没上课前开始有点心急想要卖掉房产,可是他选择相信老师,继续等多3年。

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