The CommonWealth Letters Introductory Offer October 1978
Why do only five percent of the people in the richest country in the world ever obtain financial freedom?… How do the people making all of the money avoid paying taxes? How can you enjoy the benefits of owning investment property and avoid the hassles of management? … How do you find wholesale buys in runaway markets? … How can you predict a downturn in the economy?… what will happen to investments and investors when we have another depression?
In the event that the answer to any or all of the above questions have eluded you, please read on… The only thing you can lose is five minutes and the potential winnings are unlimited.
Most people never obtain any degree of financial freedom BECAUSE THEY CONTINUALLY PUT OFF INVESTING FOR THEIR FUTURE SECURITY. Instead they spend their hard earned after-tax dollars on non-appreciating assets which will be of little value tomorrow. Excuses of too little time or insufficient money to begin investing are rationalizations by a person who would rather waste their time and money on short term objectives rather than planning and investing for the long haul… Successful investors have always used other people’s monies to acquire property and have been willing to use their time today wisely so that they and their families will be financially secure during the coming years.
Jack Miller tried to spread the word the use of his CommonWealth Newsletters and investment seminars. Jack showed how anyone with the ambition to succeed and armed with the property information can acquire, hold, and manage property which will make them independent of the need of another source of income. TENS OF HUNDREDS OF STUDENTS AND SUBSCRIBERS HAVE AND ARE MAKING THEIR FORTUNES BY acquiring real estate, not just any real estate, but CASH PRODUCING, TAX SHELTERING, APPRECIATING REAL ESTATE, typically houses in clean prospering areas.
The CommonWealth Letter was published every month. Jack Miller would briefly review the current month’s news events that affect our investing and suggest the property strategies that may be implemented to best profit from these events.
Some newsletters featured NEW MANAGEMENT STRATEGIES that will help you spend less time managing your properties and WILL SHOW YOU HOW TO ELIMINATE COLLECTION AND MINOR MAINTENANCE PROBLEMS. Any manager knows that when he controls turnover, he eliminates much of his maintenance and has few non-rented days. The secret then is to stay full, and to have your properties full of people who pay on time and don’t hassle the landlord. Many of our tenants stay with us two years or more and leave the property in better shape than when they moved in. This happy event can only happen when you use property management strategies.
We also discuss NEW FINANCING IDEAS that we either discovered through doing or heard about from a student or subscriber. The key to financing especially in these uncertain financial times in which we live, is to OBTAIN MAXIMUM LEVERAGE WITHTOUT INCURRING ANY PERSONAL LIABILITY. This is more possible in houses than any other type of property except maybe land (after some research we found that you can neither rent except for a nominal sum nor depreciate land, both of which are integral to our program and that is awful difficult to eat it although we have seen several people try when they couldn’t make their payments.)
You should always ask the question when acquiring a property for investments: “WOULD THIS PROPERTY BE A GOOD DEAL EVEN IF WE DID NOT HAVE ANY INFLATION FOR THE NEXT THREE YEARS?” People in many parts of the country are buying based solely on the supposition that inflation will bail them out. THERE WILL MOST CERTAINLY BE SOME RUDE AWAKENINGS WHEN THIS ROARING INFLATION MACHINE FLAMES OUT, which will most probably happen well within our investment lifetime. Those who are not prepared for this event will end up as poor as the other ninety percent of the population who never had anything to start with. Sure, inflation will return again if we don’t change forms of government, and THE PEOPLE WHO PLAN AHEAD WILL NOT ONLY SURVIVE, BUT WILL PROSPER IMMENSELY because they will be among the select few who have any investment capital with which to venture.
We are constantly exploring new fields of investments. After owning many many types of real estate in addition to houses, such as development land, apartments, motels, restaurants, office buildings, etc. and having invested in stocks, bonds, commodities, gold, silver, etc ad nauseum, WE INSIST ON HAVING OUR MONEY SPREAD AMONG MANY SMALL INVESTMENTS rather than all fit in one or two big deals for several reasons.
First, THERE IS IMMENSE SAFETY AND THEREFORE PEACE OF MIND in knowing that no matter what happens to a neighborhood or street and regardless of any action my tenants may take, THEY WILL NEVER WIPE ME OUT IN ONE FELL SWOOP because the properties are scattered all over town. THE TENANTS CANNOT GANG UP ON ME simply because they do know each other. It is unlikely that a natural catastrophe will wipe me out, and as is true in the stock market, I have averaged my investment by acquiring the properties at different times and at different prices. Most certainly some of the buys were real bargains while others were purchased maybe just a little below the market, but with good terms.
LONG BEFORE THE SINGLE FAMILY HOUSE WAS ACCEPTED AND POPULAR AS AN INVESTMENT, JACK MILLER WAS TEACHING HIS STUDENTS HOW TO ACQUIRE THESE INVESTMENTS WITHOUT USING ANY OF THEIR OWN MONEY, and more importantly, showing them which properties to buy, how long to hold them and how to solve the problem of management while you own them. How would you like to own over a hundred houses which you can acquire without using your money and which are now producing several thousand dollars per month in cash flow and are appreciating right off of your financial statement? MANY MILLER STUDENTS DO, WHO GOT WITH THE PROGRAM AS EARLY AS 1976.
THINK WHAT YOUR NET WORTH WOULD BE IF YOU STARTED BUYING HOUSES IN GOOD NEIGHBORHOODS IN YOUR TOWN THREE YEARS AGO. We find that the average ambitious, willing to work investor can retire with an income greater than he presently earns from his work today IN FIVE YEARS OR LESS by prudently and conservatively investing in houses, something everyone can understand. You can do it even IF YOU HAVE NO CASH IN THE BANK TODAY!
Interested? READ ON and we will give you a preview of the material that is covered monthly in the CommonWealth Letters. Bear in mind that what you are reading IS NOT THEORY learned in some institution or from reading books or trade journals. The writers of this publication are in the field every day, buying, selling, financing, building, and managing, and are constantly made aware of the chancing conditions around the country and around the world by over three thousand students and readers who are practicing what we preach.
It is our hope that by showing other DOERS how to become financially independent, we can together preserve the economic and political environment in which we prosper and take a major part in structuring government policy which will affect our lives and the lives of our children.
“THE GOOD NEWS IS THERE’S BAD NEWS.” That is the byline of the gold letter, along with how you can make money because of the events which are happening every day. We do not dwell on other people’s problems, but are constantly alert to those who are suddenly transferred and have to sell or split up the family; or the guy who has spend himself into a hole and the only way out is to sell his house…now!…or of the wife who is awarded the house in the divorce settlement and now finds that she cannot afford the payments, and many others. All of these people have REAL problems to which we can furnish a REAL solution by making an offer which will allow us a profit and give them what they NEED.
In one case, a divorcee who could no longer afford the mortgage payments needed a large house for her family which she would not easily find to rent. We acquired her sizable but hard to sell equity by giving her a PREPAID LEASE FOR TWO YEARS IN HER OWN HOUSE. This gave her plenty of time to calmly reassess her situation and make an intelligent, no pressured move. We acquired a house in a good area. AT A WHOLESALE PRICE, WITH NOTHING DOWN and an excellent built-in tenant who continued to maintain the house.
You say we had a big negative cash flow for two years. True, but has anyone ever purchased a parcel of land for an investment and had to make mortgage payments? At least we could depreciate the house, picking up a sizable tax loss which saved us many dollars in taxes for the next two years.
At the end of two years WE WERE ABLE TO RENT THE HOUSE FOR CASH FLOW, as the rent we were able to obtain was substantially over the mortgage payments due to the house appreciating substantially during the period we had held it. When computing the return on our invested after tax dollar, we found that WE COULD REALIZE OVER A TWENTY THOUSAND DOLLAR PROFIT ON AN INVESTMENT OF LESS THAN FIVE THOUSAND DOLLARS WHICH WAS INVESTED OVER A PERIOD OF TWO YEARS. Our average investment during that period was about half that amount. The beautiful thing about that story is that everybody involved was elated about the whole deal including the divorcee and this is an idea you can use over and over again. There are hundreds of properties in any medium sized town whose owner is in the exact situation I described above.
You say that in your present position that you could not afford the negative cash flow for the two years. THERE ARE THOUSANDS OF INVESTORS WHO HAVE THEIR MONEY IN THE STOCK MARKET OR IN BANKS WHO WOULD BE DELIRIOUS WITH THE KIND OF RETURN WE JUST DESCRIBED. Offer an investor half of the profit if he will put up the cash needed to carry the house for the period needed.
THE GREAT THING IS THAT WE ARE ALWAYS DISCOVERING NEW WAYS to acquire property creatively through our contacts with readers and students and through our travels. THESE IDEAS WILL WORK ANYWHERE and people everywhere are using and improving on them. EACH MONTH THE LETTERS WILL INCLUDE SEVERAL SUCH MONEY MAKING IDEAS that investors across the country will use to continue to build their fortunes.
Another subject of interest to anybody making money these days is taxes, more specifically. HOW NOT TO PAY MORE THAN YOU CONSIDER YOUR FAIR SHARE. Although we are not licensed to give tax advice we will review the information we pick up from the real experts in the field and show you how you can apply it to your specific situations. The tax law is constantly changing and many who are in the business of giving tax advice are not real estate oriented.
WE DON NOT BUY PROPERTY SOLELY FOR TAX REASONS AND THOSE WHO DO ARE DOOMED as they will end up with a REAL, not a tax loss, in the end. THE PROPERTY WE BUY IS ECONOMICALLY VIABLE AND HAS TAX ADVANTAGES WHICH MAKES IT DOUBLY ATTRACTIVE. We have found that the best strategy is basically a simple one rather than a complex plan that will cause you no end of aggravation implementing and will most likely get you an audit.
THE FIRST LESS IN TAX PLANNING IS “DON’T GET AUDITED.” If you can master this chapter then anything else you try will work. On a more serious note, nearly anyone can avoid paying taxes by planning properly. Most of us do our tax planning one year in arrears. Rather than doing anything radical which will surely draw the attention of our friendly uncle, formulate a deliberate, well planned program of acquiring the type of properties which will give you the optimum (NOT NECESSARILY THE MAXIMUM) tax shelter, along with the profit over the holding period. THE GREATEST TAX SHELTER IS UNTAXED PROFIT. Not depreciation which has to be repaid on sale.
Keeping your taxes to a minimum is a philosophy which when adopted WILL SAVE AN EXTRAORDINARY AMOUNT OF CASH OVER A PERIOD OF YEARS WHICH WHEN REINVESTED WILL AMOUNT TO A LARGE FORTUNE in nearly anyone’s lifetime. We have adopted a low profile when it comes to taxes and rather than fighting the tax system, use it to our advantage, achieving the same or better results than those who are constantly trying to trick the government.
WE ARE CONSTANTLY MORE AWARE OF THE INTERVENTION OF THE GOVERNMENT in our affairs and are structuring plans now which will help protect us from the irresponsible acts which our present administration seems intent on precipitating. One thing is certain and that is THE NEXT DECADE WILL BE AN EXCITING ONE FOR EVERYBODY, especially for those of us with some assets. The philosophy or redistributing the wealth from the haves to the have not’s along with the steadily increasing inflation which we continue to experience CHALLENGES EVERYONE TO INVEST OR BECOME ONE WITH THE MASSES. No longer do you have a choice of whether or not to buy an inflation hedge. NOW YOU MUST OR WATCH your assets rapidly shrink away.
Why should you choose this newsletter over the hundreds available to the investing public? You probably should not unless you can relate to the thoughts of the smaller investor WHO IS FORCED TO START WITHOUT A LARGE AMOUNT OF CASH, ARE DISCONTENT WITH YOUR CURRENT FINANCIAL SITUATION or FEEL THAT YOU MAY LEARN FROM THE EXPERIENCE OF OVER THREE THOUSAND ACTIVE INVESTORS across the country who are constantly feeding back ideas and problems. In the gold letter we offer the solution to a real problem of one of our subscribers each month. We are eagerly seeking out new ideas and actively solicit our readers to write their experiences so that we can share the positive ones and offer solutions in the situations where investors are having difficulties.
In summation, each month we will try to highlight the events that will affect all of us AND SHOW YOU HOW TO COPE WITH THEM. We will share with you new, but proven, REAL WORLD IDEAS ON HOW TO BUY WITH NOTHING DOWN, SOURCES OF QUICK CASH, HOW TO DEVELOP CASH FLOW, HOW TO ACHIEVE TROUBLE FREE MANAGEMENT, and HOW TO MINIMIZE YOUR TAXES AND MUCH MORE.
Our subscribers are more ambitious than most in that they not only year for, BUT ARE DEMANDING A BETTER LIFESTYLE and are obtaining it through investing their time and money in THE RIGHT PLACES AT THE RIGHT TIME. Here is what they are saying – “Educational, informative, stimulating and entertaining…undoubtedly the most I have ever received for my money.” R.L., Florence, South Carolina.
“Miller and Schaub have the courage of eagles…they tell it like it is.” N.D., Miami, Florida.”…No one should miss this…It taught me that brains are better than physical labor.” R.D., Kona, Hawaii.
“It shows you how to take care of yourself…and that you don’t need a ton of money to get started,” T.S., Tysons Corners, Virginia.
As a bonus to new subscribers, we are offering a new special report by Jack Miller…”OPTIONS: A BETTER WAY TO CONTROL HOUSES.” This ten thousand word report will show you how to acquire houses in your town with MAXIMUM LEVERAGE AND MINIMUM RISK. Several actual case studies will illustrate the psychology, strategy and tax advantages of obtaining large equities using options. Subscribe today as this bonus offer will be available only while the current supply lasts.
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