48: How to Lose Money by Not Listening to Your Own Advice with Daniel Ameduri

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Daniel is a self-made multi-millionaire and full-time fact finder. “I credit my success to a strong desire to surround myself with the right people.” After warning family and friends in 2007 about the coming market and mortgage collapse, he started his own YouTube channel, VisionVictory which has received 10 million video views. On March 18, 2008, Daniel called for Dow 8,000, the collapse of Lehman Brothers, AIG, and Washington Mutual. During the mortgage crisis, he helped people buy Put Options on Countrywide Mortgage…these Puts saw a gain of 1,400%.

His connection to insiders in the micro-cap space and drive towards over-delivering to his readers is truly extraordinary and what separates himself from other publishers. He is the co-founder of the Future Money Trends Letter, FMT Advisory, and Crush The Street.

Time Stamped Show Notes

[3:50] In the year 2000, in a rising housing market, Daniel bought his first home in Southern California, fix it and sold it which brought him the benefits of a rising housing market. It was a good time to buy and sell houses.

[6:00] Even in the face of a market crash, Daniel continued pushing and buying houses, feeling it was a unique time, and even though he acknowledged that they were definitely in a bubble, he was able to keep making money.

[7:00] Now, times are different. The interest rates are too low. The housing market is not as crazy as it was years ago and you don’t see an average person buying and fixing houses to sell. Places as green as Austin have a better migration case than drier places like Southern California.

[10:25] In 2006, Daniel saw that the housing market was going to implode. He warned family and friend to cash out, sell stock while buying as many houses as he could from San Diego to California, betting for before it all came crashing down.

[13:20] Having the best realtors’ team in the area, in early 2007, Daniel was sure that his properties would move quickly. Listing a house at a huge mark up, Bear Stearns filed for bankruptcy, this being a massive red flag of trouble.

[16:40] The years before 2006, selling a house in Southern California took no longer than a week to sell. And now, having around 7 properties for sale at the same time, when over 20 days went without a house selling, Daniel knew something was wrong in the market.

[18:16] To minimize damage and selling fast, he had to cut prices on houses and that didn’t work. Then there was one house with squatters with a fraudulent lease that they had to abandon because getting it back would be too much trouble.

[22:20] Stopped making the mortgage payments in the occupied house, they concentrated on the other houses. The black flag was when prices had to be cut down and still none were selling.

[26:20] Daniel tells us about how after cutting losses, the total damage was over $700,000. Almost every penny made from 2000 to 2007 was all given back to the market.

[29:00] Never been before a market crash, Daniel left himself overexposed when betting in so many houses. He has this experience and helped him to be where he is today. Greed won over brains.

[33:15] Failing Forward Segment

  • What is the bottom line reason of this failure? “I was too willing to make too much risk.”
  • What is the single most important lesson you learned from this? “To not lose money. I became a millionaire by focusing on not being bored.”
  • What are the major ways you protect yourself from future failures? “Focus on cash flow. Not focusing on capital appreciation and risky bets”
  • Who do you turn to when you need help? “I have mentors and one of them is Keith Newmeyer in person and when it comes to things that I might read it’s Robert Kiyosaki”
  • What advice would you give to someone in a similar position? “You should always have an exit strategy. Never have an all-in moment. Never put everything you got on one investment, one strategy.”

[41:31] You can find Daniel at Future Money Trends where he shows people how to make money and how to become financially independent within 5 to 10 years.

[47:10:] Daniel’s final thought: I encourage everybody, no matter what stage you are at your life, if you have a goal, just keep doing it, you can achieve many things.

To hear this episode and many more like it on your mobile device, you can subscribe to How To Lose Money on iTunes or Stitcher.

Quotes:

Paul Moore: linkdin

Josh Thomas:linkdin

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