Learning How To Make More Money
Learn the skills I've developed to personally make more money. I still use these skills today.
These very simple, yet highly effective methods will help you build an additional revenue stream with the time you have on weekends and evenings.
And the best part is that you can start off small with very little investment money to get started!
With some elbow grease and a lot of homework, anyone can follow these simple strategies to learn how to make more money!
In this how to make money video I specifically discuss the following:
- Adding value to make more money.
- Arbitrage to make more money.
- Buy low, fix up, and sell high for forced appreciation.
- Personal examples of how I've used each strategy.
Active Money Making Strategies – How To Make Money From Scratch
Starting a side hustle – This is going to be the smartest way to begin making money from scratch. You can get started regardless of how much money you have. It will require a little bit of upfront capital but not too much.
What's great about the side-hustle strategy I am going to reveal to you is that the system works regardless of the item.
Once you master this strategy on a small scale, then you can move onto bigger, more valuable items.
Side Hustle Strategy #1 – The ‘Add Value' Strategy
In order to make the add value strategy work, you must be able to buy items that are under market value.
Step #1 Buy Things When They Are Cheap (under market value)
How do you buy under market value items?
First and foremost, it requires time and homework. This is really a game of research and negotiating.
If you are not good at negotiating, or you have no experience, then this will be a great strategy that helps you develop that skill.
Allow me to give you a real-world example of how I negotiate.
I can spend months doing my homework on a potential real estate project. I can do so much homework on a project, that it would blow your mind.
In Medellin, they don't have an MLS like they do in the states. So you can't just tap a realtor on the shoulder and say “show me houses”.
To the average investor, this might sound awful, but to me, it sounds great. Here's why.
I'm willing to do the homework! It's literally a matter of walking around neighborhoods looking for ‘for sale' signs. And then you've got to find a motivated seller.
In this example, I found a place that was asking $125,000 and I was able to talk the seller down to $100,000.
So how did I negotiate the price down?
Start by asking a bunch of questions!
Questions like, “Why are you selling?” or “how long has this item been for sale?”
This is going to clue you in on whether or not they are motivated to sell.
Once you determine whether or not they are motivated to sell then you can give them an offer.
If they are asking $125,000 and I want to be around $100,000 then my first offer would be something in the neighborhood of $87,000.
Why would I start off at $87,000?
Like a game of poker, I am almost certain they won't take the $87K asking price. I do this because I'm trying to get the buyer to show me their cards. Again, how motivated are they?
What if they countered back at $124,000? Seems like they aren't too motivated, or they really need that price to be around $125,000. So I would counter with something like $110,000.
I'm hoping we land in a win/win place because I know there isn't much wiggle room for me to low-ball.
Now, what if they countered on my $87,000 offer with $110,000?
At least I can see some big wiggle room. So I wouldn't jump up to $110,000. No, I'd stay low and offer $90K. Notice how we are pulling them closer towards that $100,000 buy price?
Again, you need to get a good understanding of how motivated they are to sell, and hopefully, you can get them to land at or below your desired buy price.
Again, this is just a real estate example. You can literally use this negotiating tactic with any buyer, on any item.
Now That I have my cheap apartment we can fix it up, and add value.
Step #2 – Add value by fixing it up
In my example, I'm using real estate, but you can do this with anything. Think about those people who buy old furniture, fix it up, then sell at a profit.
Or better yet, how about taking the repurpose approach. Have you seen old tables that have been repurposed to make them more modern, artistic, and relevant for today's society?
This is a great example of making money by repurposing old items and turning them into something useful that someone else can enjoy.
Skillsets required for fixing things up
Manage people – You'll either need to find someone who can fix your cheap stuff up for you can do it yourself.
Going back to my real estate example, I have a team that works with me. I have a designer and architect. Both are amazing.
Sometimes it's worth drawing on the strengths of those around you. Who do you know that's skilled at repairing and improving things?
If you know some people, then strike up a conversation. It doesn't have to be furniture or real estate, it can be anything. Just find something cheap that can be improved upon, that people need. Check out eBay and craigslist for ideas.
Do The Work Yourself – You're going to save yourself money if you have the skills to do the improving or repurposing yourself.
The important thing is that you're resourceful. Think about who you can leverage, and think about the markets you're going after. What's in high demand, easy to improve or repurpose, and can be done by a buddy or someone in the neighborhood you can cut in on the deal?
Step #3 – Sell High
We bought low, then we fixed up and now we get to sell high.
In order to master this step, you'll need:
- Negotiating skills
- Marketing skills
With respect to marketing, it really boils down to writing a decent enough ad to describe that describes what the features and benefits are. There's plenty of books and videos on how to write a good ad.
You'll also need to take decent pictures. Thankfully, today's smartphones are amazing. So there's really no excuse for bad photos.
You want a person to have an emotional experience when they look at your ad. When you trigger an emotion, you drive up the price.
One easy trick for making money is to simply look for offers on craigslist or eBay with really bad images. Negotiate a better price, buy it. Then take some amazing photos and repost the offer and sell it at a premium.
It's literally photoshop arbitrage. Which leads me to my second side-hustle.
Side Hustle Strategy #2 – The ‘Arbitrage' Strategy
This is where you buy something low, and sell it high without really changing it much.
I came up with five different ways to arbitrage your way to profits and they are:
- Inefficient Markets
- Buy Local and Sell National
- Buy When No One Is Buying
- Sell When It's Hot
A good example would be buying a truck in Arizona, that's rust free and at a low price, then selling that exact same truck in Ohio where they don't have too many rust-free trucks.
Since we have no centralized real estate information down here it opens up huge opportunities for guys like me who are willing to do the homework.
Buy Local and Sell National
A good example of this would be buying something local on craigslist or a thrift store, where the demand isn't high, then selling that exact same item at the national level on eBay.
Buy When No One Else Is Buying
A good example of this would be like buying cars at auction right around the holidays. Why? Because no one else is there buying cars at auctions during the holidays. So it's easy to get cheap cars. Then wait and sell right after tax season. Which leads me to my last arbitrage example.
Sell when it's hot
A good example of this would be buying old trucks throughout the year, then putting them up for sale around tax refund time.
If you understand your market, then you'll know when those items are in high demand (command a premium price) and when they are cheap.
List of items you can use for the arbitrage side hustle
- Real estate (works with the ‘add value' strategy)
- Trucks/Cars/ RV's (works with the ‘add value' strategy)
- Furniture (works with the ‘add value' strategy)
- Baseball cards
- Anything sold in an inefficient marketplace
Tools That you will need
- Manage people
- Time on the weekends or evenings
- Negotiation skills
- Willing to do your homework
- Basic marketing skills
The bottom line is that with the exception of time, you can learn all these skills by using the internet. There's youtube, blog posts, and books. Then practice, practice, practice.
If you stay the course and continue to improve your skills and your systems, then your side-hustle can really become something big for you and your family.