WEALTHCLASSES PUBLISHING www.WealthclassesPublishing.com The Wealthy Code By George Antone www.TheWealthyCodeBook.com FIRST EDITION Copyright © 2010 by George Antone. All rights reserved. No part of this book may be reproduced or transmitted in any form or by any elec- tronic or mechanical means, including information storage and retrieval systems, without permission in writing from the publisher, except by a reviewer, who may quote brief passages in a review. Printed in the United States of America Book design by TLC Graphics, www.TLCGraphics.com Cover by Monica Thomas / Interior by Erin Stark Cover photo: ©iStockphoto.com/JLGutierrez Certain events in this book, although based on a true story, have been fictionalized for educational content and impact. Rich Dad Poor Dad, The Cashflow Quadrant, and CASHFLOW® are the registered trademarks of CASHFLOW Technologies, Inc. ISBN: 098270450X This publication is designed to provide information with regard to the subject matter covered. It is sold with the understanding that the publisher and author are not engaged in rendering real estate, legal, accounting, tax, or other professional services and that the publisher and author are not offering such advice in this publication. If real estate, legal, or other expert assistance is required, the services of a competent professional should be sought. The publisher and author specifically disclaim any liability incurred from the use or application of the contents of this book. I DEDICATE THIS BOOK TO MY FAMILY. My parents: Emile and Jacqueline. You taught me that I can achieve anything I believe. That lesson shaped my life. You have been my greatest inspiration. My uncles: Antoun, Rene, and Raymond. You helped me and my brothers in time of need. You gave us an opportunity very few get. The words “thank you” just don’t say how appreciative we are. My brothers: Emile and Farid. You have always been supportive, no matter how crazy my ideas were. Finally, my wife Clara and our children: Emile, Amanda, and Christine. Thank you for being the greatest family anyone could ask for. You mean the world to me. This is for you. v table of contents Acknowledgements .........................................................................vii Foreword..........................................................................................ix CHAPTER ONE: Robert Kiyosaki Changed Many Lives.....................3 CHAPTER TWO: It Started One Sunny California Day....................11 CHAPTER THREE: Dissecting Leverage ...........................................21 CHAPTER FOUR: Calculating Leverage ...........................................31 CHAPTER FIVE: Maximizing Your Cash Flow .................................39 CHAPTER SIX: Maximizing Your Net Worth ...................................53 CHAPTER SEVEN: Maximizing Both Cash Flow and Net Worth ...........................................................................63 CHAPTER EIGHT: Managing Risk...................................................67 CHAPTER NINE: Structuring Safer Down Payments........................83 CHAPTER TEN: The “Best” Leverage...............................................91 CHAPTER ELEVEN: I Finally Got Leverage ....................................117 CHAPTER TWELVE: Applying Wealth Strategies............................121 CHAPTER THIRTEEN: The Appreciation Column.........................141 CHAPTER FOURTEEN: Wealth Farmer..........................................147 CHAPTER FIFTEEN: Conclusion ...................................................155 Resources......................................................................................159 Index ............................................................................................163 v acknowledgements “If I have seen further than others, it is by standing upon the shoulders of Giants.” SIR ISAAC NEWTON WROTE THOSE WORDS IN 1676. THEY ALSO APPLY TO me today. Many people before me have written books that open our eyes and challenge our beliefs. These authors change people’s lives. I am grateful to them. I also want to recognize those I work with at WealthClasses.com for always pushing me to do better. Likewise, thanks to my many business partners who have pointed me in the right direction: Gary Boomer- shine, Haider Nazar, and Phong Dang — you guys absolutely rock! Stephanie May — I would not be where I am without your help. Mark Peters — you are simply an amazing human being. John Taylor — you definitely rock! Anthony Chara — thank you for being the most trust- worthy person I know, at least in Colorado! Swanee Heidberg — thank you for allowing me to hassle you with this book and everything else I am working on. Mami Yamajo — I cannot do anything without you either. Tim McGilberry — thanks for believing in us. The rest of the WealthClasses crew — it is a pleasure to work with all of you. Vadim — welcome aboard. Phil Brothers — hang in there, buddy. Jim Britt — it’s great working with you. My mentor who prefers not to be men- tioned — you are an inspiration; I have learned a lot from you. My in-laws — thank you for all that you do. My students — you have made me want to excel and be the best I can be. Thank you. This book would not have been possible without Bette Daoust, Tom and Tamara Dever, and everyone else at TLC Graphics. Thank you so much. vii FOREWORD IF YOU’RE WORKING HARDER AND HARDER JUST TO MAKE ENDS MEET, then it could be that you’re making one or more of the mistakes made by most people who search for a better financial future. The one element the wealthy of the world have in common is how easy it was for them to succeed financially when they finally understood how the moneymaking system works. The problem is, this is training you never received in high school, college, or on the job. Until now, only the lucky few had a family mem- ber or close friend who shared these wealth-building insights, or perhaps the lucky ones simply stumbled upon them by trial and error. Not a good way to plan your financial future. I know the author of this book, George Antone. I’ve seen him work. I know the kind of results he produces for those who attend his wealth- building classes. Right now, you hold in your hands an unprecedented opportunity to tap into some proprietary wealth-building concepts and strategies from one of today’s brightest wealth masters. If you apply this information, it could set you free financially. George has been empowering middle-income individuals with a desire for more, to become wealthy — and even financially successful people to become super wealthy — by making the right investments at the right time. Now, for the first time ever, George is offering you what he teaches at his wealth-building events. Not only are you going to receive some of the secrets of the wealthy, you’ll also be inspired by some of the per- sonal stories he shares. The most amazing thing about wealth is how easy it is to attain once you know the rules of the game and play by those rules. Can you just imagine the peace of mind you’ll experience once you have your finan- cial future handled forever? ix The Wealthy Code v This book truly delivers! George doesn’t pull any punches. You will get direct, action-oriented wealth-building advice that works. If, however, you are not willing to act on the lessons and strategies in this content-rich book, then my suggestion is — don’t buy it. I have learned from being around wealthy people that the starting point for wealth is having a mentor and taking action. So, if you are one of those remarkable individuals who takes responsibility for your life and the results you produce, this book was written just for you, and I urge you to hang on every word. To be wealthy you have to seize opportunities as they arise. This book is such an opportunity. You were born to be wealthy. Act now! Jim Britt Author Do This. Get Rich! x Part one Introduction 1 CHAPTER one Robert Kiyosaki Changed Many Lives I TURNED ON THE TELEVISION. FINDING NOTHING EXCITING TO WATCH, I started channel surfing. One show piqued my interest: On The Record with Greta Van Susteren. Greta was interviewing a man about wealth and how the rich become wealthy. His ideas were very different from those of the mainstream. The man in the interview was Robert Kiyosaki, and the book he was being interviewed about was Rich Dad Poor Dad. Robert Kiyosaki has changed many lives since then — including mine. His books, Rich Dad Poor Dad and The Cashflow Quadrant, have introduced people to new ways of thinking about becoming wealthy. The books have also challenged traditional notions, such as considering the home you live in a financial asset, becoming rich without first becoming wealthy, and other conventional concepts. In the process Kiyosaki has introduced readers to the ways of the rich, thinking how they think, seeing what they see, and speaking their language. He gave us the “glasses” of the rich so that we can see things the way they see them. When the media said, “Get out of debt,” he said, “Get into debt.” When the media said, “The greatest investment is your home,” he said “The house you live in is a liability.” When accountants 3 The Wealthy Code v defined assets and liabilities, he rewrote those definitions and, in the process, opened our eyes. He first introduced readers to the basics — such as reading income statements and balance sheets — and then he brought them advanced concepts, such as gold vs. the U.S. dollar. In the process, he changed millions of lives. Some have said that his books lack detail. That, in fact, is the strength and the uniqueness of Kiyosaki’s books. He is changing the way his readers think, educating them to think as the rich think. Those critics say, “Just tell me what I have to do to become wealthy, and I will do it.” Kiyosaki’s reply is this: You have to first learn to think on your own, and that ability to think comes from a solid financial edu- cation. When you begin to think on your own, you are ready to build wealth. This ability is more important than specific, detailed how-to skills; these come after you have mastered the thinking process.