Experiences and mistakes in trading – Preface

Important: I am not a financial trader, have no education in this field. I am an entrepreneur and invest part of the profits in financial products. Therefore, the article is for beginners, beginners, beginners: financial trading simply explained.

Here I collect only simple, basic experience for you.

That was expensive! First stock purchase, Bitcoin & Co.

How did I go about this experience? First, I set up a virtual account, here you can practice with virtual money, test and gain experience. Then I wanted to look at all the apps, in 48 hours, so to speak, the extreme comparison as an entrepreneur. In the process, I lost money. 1,500 euros on the first day, 3,200 euros on the second day. But, I also gained a lot of experience.

I’ve been active now since the beginning of 2019 and here are a few of the tips for you that you should definitely look at before you buy your first stock, your first bitcoin, your first ETF product, etc.

These tips will save you money, time, and most importantly, nerves!

Especially in the beginning, I so often sat cursing in front of the notebook, cursing in front of the app, depressed in front of the screen – it has to be done! If financial products were so simple, anyone could do it.

Trading: Stocks, currencies and apps

If you want to read more tips, in the blog you can find many more articles, like:

• Learn Currency Trading -Experience, Tax & Example
• Cryptocurrency & Block Chain – Simply Explained
• Buy Stocks: Direct Bank / House Bank

Trade only with play money

Certainly the A&O: risk awareness. So that your risk is as low as possible, always trade only with money that you “do not need”. No matter if currency, stock, ETF, for 99.99% of the investors it is not about ultra-short-term profits every hour, but about short-term to long-term, strategic investments.

If you have an initial, small fortune that you can invest, there are many, many avenues open to you. We focus in this article and others primarily on explaining:

• Share: Company
• ETF / Index: industry
• Currency / Forex: Economic regions
• Cryptocurrency: digital currency

Everything is subject to the principle:

demand / supply

That is, not only “hard” factors play a role, such as the concrete economic performance in numbers by balance sheet, psychology also plays a big role.

Example: car manufacturer closes plants 3 weeks

I had just invested a 5-digit amount in Tesla. Just before the Christmas season.

Overnight, an email went out to all company employees that the plants would be closed for 3 more weeks after the regular break. In the morning the share price was still stable, I hadn’t paid attention to the news yet.

2 hours later the price dropped and dropped and dropped. News (news) is an extremely important factor in stock trading. Accordingly:

Respect the risk

Price action: -10% in the morning

Always invest your money “for the long term”, mentally. If you panic now and sell, you immediately make minus. So trading also involves “confidence” and as I said, a lot of psychology. In the end, “the market” is just many, many people making decisions. Even the algorithms in high-speed trading are written by people who make decisions.

Here you can see the example of the car industry with price trend.

Of course, like everyone, with every deal I thought, “Great, bought cheap”. After the first jump I was very happy, but then I became disillusioned again and a few days later the price collapses by 10% in the morning.

Think short term now:

“Short term”: oh my god! Crap, -10%

Or are you thinking long-term. Let’s just look at this chart with 5-day in progression. If you look at just this one morning, it looks bad. But look at the entire 5-day progression, starting at round about 630 to currently 645.

“Long term”: buy on perspective

It’s just a small, very simple example, but important for you:

Always buy on perspective, don’t react frantically to short-term movements in the market.

Exchange opening hours

New York Stock Exchange example.

I noticed the fall of a stock too late (time difference). When I wanted to sell, the New York Stock Exchange was already closed. That means I have to wait the whole weekend to get my capital free again. I can’t sell again until Monday morning.

Always remember the opening hours of the exchanges

Opening Hours: New York Stock Exchange / NASDAQ

The New York Stock Exchange is open 5 days a week, Monday through Friday.

• CET (USA): 09:30 am to 4:00 pm
• MET (Europe): 15:30 to 22:00

Stop Lose / Take Profit: Automate

Execute trades on your own? That’s a 24-hour job if you want to trade financial products professionally.

Before we get to “Take Profit on ‘9”, first a look at the method:

Buy cheap, sell expensive

Because you can’t sit in front of the app yourself 24/7 waiting for the perfect time to sell, there are SL (Stop Lots) and TP (Take Profit).

Stop Lots: Minimize Losses

Let’s say you invest in a stock. Since Wirecard, we all know, it can also go down quickly and very clearly, especially for “normal” investment who do not keep a constant eye on the news and insiders.

Stop lots (SL) is a limit to the downside. You can say for example, I have invested 10,000 euros, should this single trade go below 6,000 euros value, sell this position. Likewise it goes upward. Here also immediately still another tip, TP on 9′.

What that means, you’ll learn in a moment.

Take profit: setting to full amount / you -100

Who sets a TP (Take Profit), often goes to the full number, for example 24,000. In doing so, often larger traders descend just before and suddenly, the price goes into the basement and you have to wait again long until the price is at the old level.

I will go into this graphic later. But here you can already see the principle. I have traded here the Bitcoin. Imagine now that you still during the time smaller jumps, between purchase / sale takes. This is not worthwhile at 1,000 euros in trading, but if you invest 100,000 and take 2.4%, you have 2,400 euros profit. If the price falls afterwards and you buy minus the spread a little cheaper, perfect. You will learn more about the spread (profit of the platform) in a moment.

The spread (i.e. profit) for the trader is 200 euros or ~ 1%. Through this shorter-term trade, you would have earned here so ~ 1.4% net profit, after new purchase.

5% wealth accumulation, in one day.

If you do this action on a day 2, 3, you already got 5% asset growth out, in one day.

Early Exit: Sell Before Peak

What does “take profit on ‘9” tell you?

Take Profit means you plan your sale ahead of time. Say you buy for 20,000, plan to sell at 24,000, then set your TP to 24,000, your bank, software, app will then automatically sell when the price reaches the TP of 24,000.

Conversely, this means – keyword “psychology in the stock market”, also crypto & Co. – even if traders have already dealt with the TP, which few actively do, then the following can happen:

You have set a sell point, however, traders go out before you, in the relevant volume, at 23,900, then the price will not reach the 24,000, at least not in the targeted period. The price drops and doesn’t reach the 24,000, so your package doesn’t get sold.

That’s why some trades make it worth my while if you set your setting like this:

• Take Profit (of many traders): 24,000
• Your TP: 23,900

Now comes the advantage, if you are not alone – and you will often notice this effect. The advantage, if the price drops already at 23,900, for example, to 23,100, you can already buy a new package. When jumping to 24,000, you make double profit.

Spread: This is what the trader earns

Often you hear:

“Trade bitcoin or stocks for free”

What is true is that no extra fee is charged. For example, once +10 euros on each trade. But you always pay a spread (spread between buying / selling), from this the platforms live.

Example: spread on cryptocurrency

PS: Spread is the profit that traders take. Example from etoro:

• Bitcoin price: 23,189
• Sell bitcoin: 23,189
• Buy bitcoin: 23.364 (+ 0.9925%)

The spread (i.e. profit) for the trader here is 200 euros each, or ~ 1%.

Through this shorter-term trade, you would have here so ~ 1.4% net profit, after new purchase, earned.

Example: Spread in foreign exchange

In forex trading, for example with the app metatrader, you do not pay ~ 1%, but ~ 0.1%.

What is cryptocurrency, like bitcoin

I don’t want to mention technical terms now, like “block chain”, etc. Simply explained: cryptocurrencies are like commodities, for example gold as a precious metal. There is a finite amount of XY on earth.

Did you know? There are only 21 million Bitcoins

Theoretically, gold is worth nothing, but because people assign value to gold, it has value. The more people use this investment opportunity, the higher the price goes. Bitcoin almost the same way. There is a certain number and the more invest, the higher the price goes. If people sell their shares, so they do not trust the further price growth, the price falls again.

Fast and speculative.

• There is a fixed number of bitcoins
• Higher, faster profits / losses
• Much psychology, little news analysis
• Trading is possible 7-days a week

Higher frequency means more profit / loss

So of course you make “only” 1x profit. If you take the profit “more often”, you can increase the profit within the period.

Method / strategy in trading

You buy at the price low and sell at the next price high

Sounds simple, but many buy a financial product at the beginning and just keep it. This saves you a lot of nerves, short-term trading increases the profit for it.

For example, when I traded my first bitcoins, I sold and bought in between. So I can take small profits and then reinvest when the price is cheaper again. PS: In the hope that it will become cheaper.

My highlight was then the price high of 24,000 shortly before December 24. My last, active trading day. Since then I’m more into social trading, you can learn what that is here: Social Trading.

Slump, Gain: High at $23,900

What a thriller! After trading for a long time, the day now came when I wanted to sell. I ran 2 hours with my app through the city – of course, the sale was already preset, it was more of an emotional being there!

It also went high once again, as you can see in the chart here. The bitcoin rate is shown here in euros. The method is the following: You buy at the price low and sell at the next price high.

An important, important basis in trading financial products. The shorter and more extreme the periods are, the higher the profit, but also the risk of the trade.

• 2 additional purchases in 2 days
• 2 immediate sales

Graph in Euro:

Crypto Trading? A Fulltime Job

I can tell you this: if you don’t want to be intensely and constantly involved with your investments, don’t invest your money in cryptocurrency. But if you do, be there, as seen in the example above, the price does not jump for weeks, but in a few seconds and often several times a day.

Tip. Invest for the long term. There are 21 million Bitcoins, as long as people invest, its value increases. The skeptics of the first Bitcoin years have long been silenced. Buy, hold… hold. In 2, 3 years the price could have doubled again.

My experiences: DJI Mini 2 drone on test!

Is flying drones allowed? Which drone for beginners? Which drone is the best? What can I film with my drone? There are answers to all these questions in this guide. Hint! After the recommendation, we have also summarized the current regulation about drone flights. What is important? What do you have to pay attention to? In Germany there are clear rules regarding the flight of drones. But don’t worry, they are relatively clear and concise when it comes to the use of threats for photo and video recordings.

My experiences and everything about the price, the camera, the weight, the maximum speed and flight distance.

Perfect of course for aerial photography of real estate (photos, videos by drone): You will also find sample photos and drone videos filmed with the DJI Mini 2 after the recommendation list. Before the checklist for Amazon arrives, here’s a Quickview of the DJI Mini 2! These are the questions that 90% of all buyers* are interested in.

From now on, my field report follows with all questions and answers about the DJI Mavic Mini 2. No time to wait? Click here to get the best DJI Mavic Mini 2 package on Amazon:

• DJI Mini 2 on Amazon

How long does the DJI Mavic Mini fly 2?

The drone has a flight time of about 30 minutes, with very economical flight characteristics also times 31, maximum 32 minutes flight time.

• Flight time: 30 minutes

How fast does the DJI Mavic Mini fly 2?

The maximum speed of the DJI Mini 2 drone is 57.6 km/h! For comparison, the DJI Mini 1 still flew at a maximum speed of 46.8 km/h. Relatively slow compared to larger, pro models, but sufficient for 99% of all shots or concepts.

• Maximum speed: 57.6 km/h
• + 10.8 km/h to the previous model

Unboxing! How the Mavic Mini 2 is delivered:

Review: Overview and Analysis of DJI Mini 2

How much does the Mini weigh 2?

Less than 249 g! This makes it about as “heavy” or light as an apple.

How big is the DJI Mavic Mini 2?

When unfolded the dimensions are 160×202×55 mm. In comparison, the DJI Mini 1 had a size of 150×190×60 mm.

How good is the camera of the drone?

The DJI is equipped with a 12 megapixel camera, which is guaranteed to impress everyone who sees the first images of the drone. The camera works with 4K/30fps video and a motorized 3-axis gimbal drive.

• 12 megapixel camera
• 4K/30fps video
• Motorized 3-axis cardan drive

How large is the flying distance?

Maximum transmission distance is 6 km with 720p video transmission.

• 6 kilometers
• 720p video transmission

Detects the DJI Mini 2 obstacles? Explore opportunities: property in Berlin.

Yes! the detection of obstacles works downwards. As long as no eagle or falcon is attacking the drone from above – yes, there is – everything is ok. In comparison, the larger model, the Mavic Air 2 has forward + backward + downward obstacle detection.

• Detection of obstacles downwards

Enough learned, now to the best package you can buy on Amazon:

DJI Mini 2 drone: recommendation under 1.000 Euro!

Why my recommendation? The prices vary extremely! This DJI Mini 2 Fly Package is currently available on Amazon from

Price range: 584.00 – 919.56 Euro

The delivery of the most expensive package even takes one day longer than the cheapest package.

DJI Mini 2 Fly More Combo

Ultralight and foldable drone quadkopter, 3-axis gimbal with 4K camera, 12MP photo, 31 minutes flight time, OcuSync 2.0 HD video transmission, QuickShots with DJI Fly App. DJI Mini 2 is beginner-friendly, powerful and mini. Impressive performance, breathtaking image quality and creative videos are just a few taps away. Also new are the “Quickshots”. With just a few clicks, DJI Mini 2 automatically captures videos that can be shared directly on social networks.

The package comes with the following content:

• DJI Mini 2 x1
• Radio remote control x1
• Intelligent flight battery x3
• Replacement propeller (pair) x3
• Gimbal Protector x1
• Type C cable x1
• RC-cable (Micro-USB-connector, USB-C-connector and flash plug) each x1
• Replacement stick (pair) x1
• Replacement screw x18
• Screwdriver x1

Best product on Amazon:

• DJI Mini 2 on Amazon

Example video: Beginners guide

Learn how to fly!

Drone flight: rules / laws in Germany

Status: 03/2020, source Federal Ministry of Transport and Digital Infrastructure (ordinance drone flight).

An overview of the most important rules:

Model airfields

If you let your flying object fly exclusively on a model flying field, you can do so without any changes. The new rules only apply outside of model airfields. The only exception: You have to attach a sticker with the name and address of the owner.

Drones over 0.25 kilograms

Owners of drones or model aircraft weighing more than 0.25 kilograms must affix a sticker with the name and address of the owner.

Drones over 2 kilograms

For owners of drones or model airplanes with a weight of more than 2.0 kilograms applies:

• You must attach a sticker with the name and address of the owner.
• In addition, they must demonstrate special knowledge. This proof is either issued after examination by a body recognized by the Luftfahrt-Bundesamt (German Federal Aviation Authority) or, in the case of model aircraft, by an aviation sports association after a briefing.

Drones over 5 kilograms

For owners of drones or model aircraft weighing more than 5.0 kilograms, they also require an additional ascent permit issued by the state aviation authorities.

Flights above 100 meters altitude

For pilots, who let their flying object – outside of model flying areas – fly more than hundred meters high:

• This is generally prohibited for pilots of drones. An official exemption permit can be applied for at the state aviation authorities.

Generally applies:

Ban on drone flight

Forbidden is

• The operation of drones or model airplanes in and over sensitive areas such as police and rescue service locations, crowds of people, main traffic routes, approach and departure areas of airports,
• The operation of a drone or model aircraft with a weight of more than 0.25 kilograms over residential properties. The same applies if the flying object (regardless of its weight) is capable of receiving, transmitting or recording optical, acoustic or radio signals.

Additionally, in the following there may be slight grammatical errors, as this article was written by a German tax expert. This does not detract from the quality of information.

Real Estate Sale & Purchase: Tax for House & Apartment

Depending on the situation, different taxes can be incurred when buying real estate. Taxes are levied at both federal, state, and local level. Therefore, the regulations also differ at federal, state or local level, and differ both in the basis of assessment and in the amount of tax rates and contributions. For the sale or buy of a house, an apartment, a multi-family house or just land.

Examples of real estate taxes:

• Real estate transfer tax (GrESt)
• Land tax (GrSt)
• Speculation tax
• Inheritance tax (ErbSt)
• Gift tax (SchenkSt)
• Turnover tax (VAT) & Trade tax (GewSt)

Real Estate Transfer Tax (GrESt): Change of Ownership of Real Estate & Land

The real estate transfer tax is a legal transaction tax, the one-time levying of which is usually triggered by the purchase of a plot of land or real estate. It is levied on the basis of classic purchase contracts as well as in the case of land exchange, contracts or divisions. Furthermore, changes of ownership within the meaning of real estate transfer tax can lead to a tax levy as a result of transfers as well as highest bids in compulsory auctions.

Trigger for tax levies on the basis of GrESt:

• Assignments
• Performance bids in foreclosure auctions

Tax Rates According to Federal States: Bavaria & Saxony with low tax rate of 3.5 percent

The tax rate is set nationwide and ranges – as of 2020 – between 3.5% and 6.5% of the purchase price. The basis of assessment is the purchase price as certified by a notary – it is multiplied by the country-specific tax rate to determine the amount of tax payable.

Current tax rates 2020 (lowest first):

• Bavaria: 3.5 %
• Saxony: 3.5 %
• Hamburg: 4.5 %
• Bremen: 5.0 %
• Lower Saxony: 5.0 %
• Rhineland-Palatinate: 5.0 %
• Saxony-Anhalt: 5.0 %
• Hessen: 6.0 %
• Mecklenburg-Western Pomerania: 6.0 %
• Brandenburg: 6.5 %
• North Rhine-Westphalia: 6.5 %
• Saarland: 6.5 %
• Schleswig-Holstein: 6.5 %
• Thuringia: 6.5 %

Tax Debtor, Tax Bearer & Tax Exemption – Nearest Relatives & Partner

In principle, buyers and sellers are equally affected by the tax liability. Usually, however, the payment obligation is transferred to the real estate buyer. In the course of settling the tax liability, the taxpayer receives a so-called clearance certificate from the tax office, which serves as the basis for the legal registration of the new owner in the land register.

Under certain conditions, the Real Estate Acquisition Tax Act (GrEStG) allows an exemption from the required one-off payment. This applies, for example, to property sales to family members in a straight line and spouses/life partners within the partnership or during the divorce or annulment process. Also exempt from the real estate transfer tax are real estate or plots of land with a maximum purchase price of 2,500 €.

Conditions for tax exemption:

• Parents and children or grandparents and children (kinship grade I)
• Spouses or registered partners
• Real estate/properties up to 2.500 € purchase price

In the case of taxable inheritances and gifts, the real estate transfer tax is completely waived in order to avoid double taxation.

Property Tax (Grund Steuer; GrSt) – Valuation, Tax Rates & Hebesatz

The property tax is a municipal tax, which is paid annually to the respective municipality in case of real estate ownership. A distinction is made between real estate tax A – agricultural – and real estate tax B – construction – since a special assessment rate applies to property used for agricultural and forestry purposes.

Assessment Basis, Valuation & Real Estate Tax Collection – New Reform 2024

Two laws are used to determine the value of taxable property: the Property Tax Act (GrStG) and the Valuation Act (BewG). The values necessary for the calculation of real estate tax are currently being reformed due to obsolescence and will be replaced by new values. This process should be completed by the end of 2024.

The first step will be for the state tax office to determine a value using the so-called capitalized earnings method. This involves both the actual value of the land and the type of development, location and size of the property.

Secondly, the value is multiplied by the corresponding tax index, which is directly related to the respective real estate object. For example, a flat rate of 6.0 per mille is calculated for agricultural and forestry property, whereas the per mille rate for building property is between 2.6 and 3.5.

Overview of tax rates by type of property:

• 6.0 per mille for agricultural property
• 2.6 per mille or 3.5 per mille for single family houses
• 3.1 per mille for two-family houses
• 3.5 per mille for the remaining building property

The final property tax is then calculated as the product of the property tax assessment issued by the tax office and the property tax rate. The rate of assessment is set by the municipality and is usually valid for a period of one year.

Tax debtor, Tax Bearer & Tax Exemption – Installment Payment, Own use & Third-Party use of Real Estate

As a rule, the tax debtor is the owner of the property – and in the case of own use – the resident. After appraisal and assessment, he receives a corresponding tax assessment from his municipality, which is binding for at least one calendar year. The legal owner at the time of 1st January of each calendar year is therefore considered to be the tax debtor, even if he/she resells the property in the meantime. Private law settlements can of course be made in favour of the real estate seller.

The payments concerning the property tax are generally made in four instalments per year, on 15 February, May, August and November. With small payment amounts between 15 € and 30 € half-yearly rates – in each case to 15 February and August – are usual, whereas with tax payments under 15 € annual rates to 15 August are felt as sufficient.

Installment payments of the property tax:

• Taxes > 30 €: quarterly (on 15.02., 15.05., 15.08. and 15.11.)
• Taxes 15 – 30 €: half-yearly (to 15.02. and 15.08.)
• Taxes < 15 €: annually (15.08.)

In the case of rented real estate objects, however, the charges can be passed on to the tenant(s) as apportionable service charges, provided that a corresponding contractual agreement has been reached in advance. Should a loss of rent through no fault of one’s own arise over large amounts, it is possible to submit an application to the local authorities for real estate tax remission.

Property owned by public authorities, church property and property owned by non-profit corporations are completely exempt from property tax.

Speculation Tax – Private Sales Transactions for Real Estate

The speculation tax is a tax which is imposed on a real estate salesman with private sales transactions according to nationwide regulation. In accordance with the German Income Tax Act (EStG), taxation is levied on all income resulting from private sales, with the exception of owner-occupied real estate.

Applicable Area & Due Date – Letting, Undeveloped Land, Heritable Building Rights & Co

Taxes must be paid on the sale of rented apartments and houses as well as on undeveloped land and further in the case of hereditary building rights. Also affected by the speculation tax are shares in closed real estate funds and further co-ownership shares.

Scope of the speculation tax:

• Letting of apartments & houses
• Undeveloped land
• Leasehold cases
• Shares in closed-end real estate funds
• Shares in co-ownership

The due date is the year of sale. The amount of tax payable is determined individually by the federal states and is based on criteria such as appreciation in value and the seller’s income tax rate, but may be reduced by certain expenses.

These include, for example, profit-reducing modernization costs – to the extent that they exceed 15% of the original acquisition cost -, certain advertising expenses, and brokerage and notary fees. By means of cleverly arranged installment payments, it is sometimes possible to take advantage of tax-free allowances to reduce contributions.

Reduction of speculation tax charges:

• Modernization costs > 15 % of acquisition costs
• Advertising costs
• Brokerage fees

Speculation Period – 10-year Period & Three-Object Limit for Real Estate Sales

The speculation period is 10 years. This means that all sales transactions under private law are exempt from speculation tax after this period. If, on the other hand, the apartment or house is temporarily used by the owner, the 10-year period can be circumvented and reduced to two to three years.

This is always the case if the real estate object was exclusively used for the own residential purpose in the year of the sale as well as the two preceding years – even in the case of owner-occupied second homes or vacation homes. As long as a real estate owner can prove that he receives child benefit for his children, their private use is also regarded as “own residential purpose” of the taxpayer.

If a total of more than three property sales are made in a five-year period and the three-object limit is thus exceeded, the sales are considered by law to be commercial transactions and are therefore automatically subject to trade tax.

Inheritance tax (ErbSt) – Property Valuation & Tax Allowances

Inheritance tax always comes into effect when a deceased leaves an inheritance which is accepted by the beneficiaries.

Assessment Basis & Taxes – Inheritance Taxes According to the Market Value on the Balance Sheet Date

In contrast to foreign states, the federal regulations define the inheritance tax here not as estate tax, but as inheritance accrual tax, which means that the tax charges are generally levied in relation to the specific amount of the inheritance. An extended tax liability ensures that beneficiaries do not benefit from migrating abroad in case of inheritance.

The German Real Estate Valuation Ordinance (ImmoWertV) provides a valuation based on comparative value, income value or real value methods. For real estate inheritances, the valuation is based on the current market value on the reporting date, i.e. the value that could have been achieved for the property in an immediate sale on that day.

In the case of leased properties, a flat tax valuation discount of 10% is applied, whereas 100% of the market value of non-leased properties is included in the valuation.

Assessment basis according to ImmoWertV…

• Rented properties: 90% of the market value
• Non-leased properties: 100% of the market value

The valuation report can be tax deductible as additional inheritance costs.

Tax Allowances & Tax Remission – Degrees of Relationship of the Heirs to the Testator & own use

The amount of the inheritance tax can be reduced by certain allowances. These are based on the respective degree of kinship between a beneficiary and the deceased.

Tax-free amounts according to the degree of kinship:

• 500.000 € for spouse / life partner
• 400.000 € for biological children, stepchildren, adopted children and surviving grandchildren
• 200.000 € for grandchildren
• 100.000 € for parents and grandparents
• 20.000 € for all other heirs (related and unrelated)

Law of the case, if the deceased was living in a property used by himself before his death and his heirs use this property for their own residential purposes for at least ten consecutive years after the occurrence of the inheritance, the inheritance tax is discharged. In the case of an early departure, however, subsequent taxation will take place.

Gift tax (SchenkSt) – Gift Contract & Tax Exemption

Gift tax is payable on assets that are given to the beneficiary instead of sale, loan or inheritance.

In the context of real estate gifts, the donors are often granted rights of residence and/or usufruct (use without altering). In these cases, a contract of gift is advisable, if necessary with an included right of reclaim, in order to avoid compulsory auctions or seizures in worst case scenarios. In the case of the guarantee of lifelong right of residence, a corresponding entry should also be made in the land register in order to provide clear evidence.

Tax-Free Amounts: Tax Remission – Degree of Relationship of the Beneficiaries to the Donor

Gifts to spouses or life partners are subject to complete tax exemption. This also applies if the partners are in the process of divorce or annulment, insofar as they still live together in the family home at the time of the gift.

The tax-free amounts in gift cases can be re-credited every ten years. In the case of parents, this is even possible twice. They differ with regard to the family relationship between the donor and the recipient.

Tax-free amounts according to family relationship:

• 500.000 € for spouse / life partner
• 400.000 € for children and surviving grandchildren
• 200.000 € for grandchildren
• 100.000 € for parents and grandparents
• 20.000 € for all other beneficiaries (related and unrelated)

Claim for Compulsory Portion and Supplementary Claim in Case of Donation & Inheritance

In the event of exclusion of the inheritance, the deceased’s next of kin are entitled to a so-called compulsory portion, i.e. a claim for payment against the testamentary heirs.

According to the German Civil Code (BGB), gifts made by a deceased person in the last ten years prior to his or her death are counted as a supplement to the right to a compulsory portion for his or her heirs when the case of inheritance arises. In accordance with the meltdown model, the entitlements decrease from year to year and fall to zero percent from the eleventh year before the inheritance.

Gifts made within a marriage or registered civil partnership are entitled to a supplement to the compulsory portion without time limitation. However, the gift itself remains absolutely effective.

MwSt & Trade Tax: Commercial Real Estate Trade for Real Estate

The value added tax (MwSt) is passed on to the buyer and new owner at 19% of the purchase price in the case of commercial real estate sales.

The trade tax (GewSt) is charged to the real estate seller in the context of commercial sales transactions and is calculated individually on the basis of the capital gain. The share of profit corresponding to a tax rate of 3.5% multiplied by the municipal assessment rate results in the trade tax amount to be paid.

Trade tax amount = 3.5 % of the profit * assessment rate

Automatic Trade Tax Liability & Allowances – Partnerships, Natural Persons & Co

Insofar as the properties are business assets, the associated income from profits is generally subject to tax. If the 10-year period stipulated in the German Income Tax Act (EStG) with regard to speculation tax is not met, or the three-object limit is exceeded in the sale of real estate units, the corresponding income is also automatically subject to trade tax.

A property originally purchased as an apartment building, which is subdivided into several apartments in the course of a better letting, and resold within five years, therefore causes the same automatically generated tax liability.
Partnerships and natural persons are legally granted an allowance of 24,500 €. Other companies and associations can benefit from a lower tax-free allowance of 5,000 € under certain conditions.

Taxes when Buying / Renting Real Estate

Real Estate – What will you be confronted with when buying a house, a condo, a multi-family house or just land in Germany? It’s an attractive market for many, especially abroad for its strong economy and stable government.

If you’re still looking for areas to invest, or which to avoid, we have guides online.

• What are the most Expensive Cities in Germany?

The Fundamentals: Additional Costs when Buying Real Estate

Low interest rates, great loan offers and irresistible purchase prices entice one or the other to invest in German real estate, or move to the country. So, how do you start to deal enough with the the additional costs that buyers and sellers expect when signing a purchase contract. Which additional costs arise when buying a condominium? How much percent when buying a house?

With the conclusion of a purchase agreement, the financing is already finished. However, the ancillary purchase costs are often underestimated. The bills from the broker, notary, land registry and tax office will come as soon as the loan is fixed. Because of this, the credit is often underestimated. Especially coming from abroad, these costs can be difficult to understand.

• Ancillary Costs of Real Estate Purchase

Grunderwerbsteuer: Real Estate Transfer Tax

In Germany, there is also a real estate transfer tax, just as in many other countries. This is called the “Grunderwerbsteuer”. It needs to be paid everytime a property or part of a property is purchased.

The Grunderwerbsteuer is a state tax. It is determined individually by each federal state (called Bundesland or Bundesländer). At present, it falls between 3.5% and 6.0%, depending on the location. The tax is levied on the basis of the Grunderwerbsteuergesetzes (GrEStG). The respective federal states therefore also decide how to apply it, and to what degree they pass it to lower levels of government.

• Grunderwerbsteuer: German Real Estate Transfer Tax Explained

Appraising Property: Reduce Service Charges + Investment Capital

The better the valuation of the property, the lower the service charges and transfer tax. Therefore, it is vital to get engaged with the valuation of real estate. This process is similar in Germany as in other countries, but the details make up the whole. In general, the difficulty in the appraisal process is the reason why many people hire real estate agents. If you accept a purchase price immediately, you will probably pay on top of it. This is not hard to accept, but if the purchase price is a 5-digit number, it quickly adds up.

These savings would be much better served paying for a renovation or modernization, for example with a new heating system, which you could have done in the repair or modernization. This would have two positive side effects:

1. Reduction in purchase price through concrete points of criticism (e.g. building materials)
2. Increase in value through renovation for resale

So not only do you pay less, you can also use the available assets to increase the value of your property. The more detailed you check the property, the more likely you are to minimize the purchase price. You can learn what is important when evaluating real estate in Germany here:

• Appraising property

If you already have a specific property in mind, I recommend the individual articles on land, apartment, house and Co.

• Appraising Apartment
• Appraising House
• Appraising Apartment Buildings
• Appraising Land

Taxes on Rental Income: GmbH or ‘Stiftung’

Taxes on rental income are definitely an issue for landlords. Private property ownership, ‘Immobilien GmbH’ (real estate company) or ‘Familienstiftung’ (Family Foundation)?

In order to tax your rental income as efficiently as possible – to begin with – the German state opens the possibility of founding a GmbH. A GmbH is a company, and with loopholes, you can found such a company to take care of income you make from renting out property. Yet, it may be even more profitable to found a Familienstiftung. How, when and why? Learn everything in the articles below.

Immobilien GmbH: Wealth Distribution Company

In this article you will learn the basics about the topic Immobilien GmbH. What is it? Is it the same as Vermögensverwaltende GmbH or Immobiliengesellschaft? When buying a house or a condominium, who comes up with the idea of founding a GmbH? Admittedly, it doesn’t make sense for self-interest, but it does if you’re looking to rent your property out.

By law, an immobilien GmbH is a company that pursues the purpose of letting, development, financing, realization or marketing. It is independent whether it concerns one or more properties. It also includes real estate management, for its own properties and those of third parties.

• Immobilien GmbH Explained

You may hear from some people:

Immobilien GmbH, Familienstiftung, isn’t that the same?

It’s true that there is little difference in legal forms between the two, looking at the purchase and taxation of your rental income. It does become interesting when selling real estate though. In the GmbH, the capital gain must be fully taxed. Now we look at the Familienstiftung though, where the sale is tax-free after a speculation period has expired.

Familienstiftung: Providing for retirement, Children and Almost Tax-Free

I repeat: Capital gain is fully taxed in an Immobilien GmbH. The real estate sale of a Familienstiftung is tax-free (after speculation period).

A Familienstiftung is in its essence a foundation intended to reach a goal. This can be a wealthy business mogul designating much of his funds to care for following generations, or a property investor intending to place the profits he made from renting out property in a foundation. In the following tax article we take a deep look into the subject of foundations, family foundations, real estate purchase, taxes and tax optimization. Setting up a foundation, especially a family foundation, has many advantages for you. From tax-free capital gains after speculation tax, to low (15 percent) taxation of rental income. How this works, how you can set up a foundation and how your grandchildren will profit from it, you will learn in this article.

• Familienstiftung: German Tax Optimization for Leasing

Buying Real Estate in USA

What taxes do you have to pay when you buy a house, land or condo in the USA? If you’ve changed your mind, or want to rather look in the US, what their laws are, and how taxes function there, we have an extensive article for you.

The United States of America attracts real estate investors like no other country in the world. Especially California and especially Los Angeles, but also New York City are in focus. In addition, tens of thousands are looking for apartments, condominiums and houses because their career is moving to the USA. Silicon Valley, Wall Street, and more. Here, economic, political and cultural ideas are forged. Investing in the USA can therefore only make sense if the parameters are right.

For real estate buyers, however, the big question is how the tax system in the USA works. Together with our US real estate agent, we have written extensive articles on the subject of taxes in the USA. The first part can be found here:

• Buying Real Estate: All Taxes to Know

View of San Francisco, with typical American skyline:

Real Estate Tax Deductions: US Tax System

Mortgage Credit? Property Taxes? Here we explain all the important terms that you will come across in the US real estate tax system. Here you will find simple instructions on how to reduce the purchase price you pay for your real estate or property in the USA: From tax credits to deductions and allowances. This tax guide gives you a quick and easy overview of what goes into your tax calculation and how you can legally reduce the taxes you pay.

• Tax Deductions USA

Taxes on the Sale of Real Estate

Coming soon!

Richer than the Geissens – the book

Important: Currently the book is only available in Germany! I speak German and discovered this book or audio book two weeks ago. Even if you wouldn’t understand a word in the podcast, I wanted to introduce some of the methods and strategies to you!

Since a few weeks “Richer than the Geissens” is now available for free for everyone on Spotify and iTunes. Why? Alex Fischer shares his knowledge. But the book is also an introduction for those who want to attend further courses. On Alex Fischer’s website there is a free member area with countless videos, checklists and much more. Additionally there is an extra seminar, which can be booked. But before you get there, you need cash flow, equity and real estate. Exactly for this there is the book or audio book.

If you want to earn money with real estate yourself and above all become happier, but also passively generate cash flow through financial freedom, you should take a look at the principles, policies and strategies of Alex Fischer!

In 5 years without equity to become a real estate millionaire

The chance to learn from a pro!

In this little book presentation I want to show you a small selection of very effective methods in a shortened form. Of course I can only show a fraction of the learnings, methods and strategies of the audio book, because in the book you will find more than 600 learnings, 668 to be precise. It was already published in 2016. In addition to the book there is a podcast or audio book. Tip! The audio book on Spotify and Amazon is constantly updated.

• First edition was published in 2016; audio book is constantly updated
• Now for free as a podcast on Spotify and iTunes
• 43 ‘timeless laws of success’
• 668 essential tips
• 456 pages or 79 episodes in the audio book
• 3 parts (mindset, strategies / tools and building money machine)

The book offers extremely much content and know-how for you privately (life) and entrepreneurially (business). Structured in 3 parts from the mindset and the basic attitude to the topic “money”, to the structuring of your own life and of course the most important thing, building up cash flow, passive income, equity, the first property and your future property portfolio!

Audio book for free on Spotify and iTunes

If you want to listen to all episodes yourself, you can find the free audio book now on Spotify and iTunes!

• Richer than the Geissens – audio book on Spotify
• Richer than the Geissens – audio book on iTunes
• Alex Fischer – Website & free members area

If you like to have good books on your bookshelf at home, you can order your own copy here on Amazon:

• Book on Amazon

Part 1: Mindset & important knowledge as the entrepreneur of your life. Here are a few selective contents, which I find very inspiring myself!

Makes money (really) happy?

Directly into one of the first chapters or episodes comes one of the biggest questions that arises, especially for those who are already having some success, i.e. who are already generating cash flow. Actually, it happened to me as well, at some point you know “money doesn’t make you happy”! If money was the ultimate lucky charm, then hardly anyone in Hollywood would be unhappy. But everyone knows examples of failed personalities. Millions do not protect you from loneliness.

Objective: Your “Purpose”

That is why it is so important to have goals, your “Purpose”. Goals that motivate you to continue! Alex Fischer explains in Equation 14: Know your why, from when on he “really started”. Successful, happy and full of energy was Alex Fischer when he found his “Purpose”. Purpose because there are many definitions of the word “goal” in English. Alex Fischer will go into the exact definitions in the podcast later in part 2 of the audio book. It is important that you know your Purpose! The big “why”.

With the right mindset and the right goals in mind, work no longer feels like work, but like passion! Goals should also not only pursue your own happiness. The world around you should also participate in your success.

Happiness lies outside the comfort zone

Many know the saying, “He who does not dare does not win!” Alex Fischer talks about that at great length, then your luck is not in your own comfort zone.

In business, but also in your own life, it is about understanding systematics (for example, how do I get to know new people [or business partners]) but also about finding new ways. Like Alex Fischer combined the offline world of real estate with the digital world of online marketing. A subject that many property developers and estate agents shy away from, because online marketing is clearly outside their comfort zone. A website is already ultra-modern. That’s why “who dares, wins!”

Leaving your own comfort zone requires courage and of course also a willingness to take risks. Alex Fischer has done this himself in bravura, he has connected the world of real estate with the for most unpleasant topic of online marketing. Does that really fit together? Even in my consultations I am often met with a lot of scepticism. The more modern the medium, the less interesting it seems to many property developers and estate agents. Alex Fischer has impressively demonstrated how such new combinations can be successfuly used for your own benefit. In the 3rd part of the book you will also get a lot of input when it comes to your own resource planning but also about setting up strengths and matching with industries to find the best possible matches: To whom do you bring the greatest added value with your individual strengths and resources?

For private individuals it is the salary increase, for entrepreneurs the right industry for their own product or service.

It’s a “Hell yeah, baby!” or a “No!”

Ultimately, it’s always about making decisions, because that’s the only way to build strong businesses and business models. Episode 18: It’s a Hell yeah, Baby or a No also stayed very much in my head. In this episode of the audio book, Alex Fischer describes how he makes decisions based on real estate projects he had to choose himself. Which properties deserve attention and which don’t?

There are real estates, to which one says immediately “Yes”! There are real estates for which one knows immediately, “no”! Then there are a lot of real estates where you are not sure. Now the question arises again, which real estates bring in the end the results one wants, thus profit-maximizing sales? In a nutshell: Focus on the projects where you say “yes” immediately. Because in the end a lot of time is invested and in the end there is usually no business. Why not immediately and immediately focus only on those objects for which you immediately say “Yes” and have no doubt? Exactly! Here, too, it’s all about focusing, from Purpose to Pareto principle, more and more elements come together – and you are still in the first part!

Cause and effect

The principle of action and reaction comes from physics. A law of nature. And ultimately the business world is subject to the same principle of cause and effect.

Of course, I cannot go into this complex topic in detail in this little review, but the basic point is that all kinds of goals can be or will be materialized if you work on them thoughtfully and consistently. Simply put, if you firmly believe in yourself (and of course have the dedication and master the tools and strategies) you will succeed, because “faith can move mountains”.

Faith can move mountains

Speaking of faith, believe me, in this audio book you get so much wisdom! In this review of my audiobook I can really only give you a fraction of the aspects Alex Fischer gives in each chapter.

A very special one is this one: Much later, in the third part, there is an impressive example that has remained almost figuratively in my mind even today.

Basically it’s all about: Alex Fischer not only gives tips, he also tells from his own life, from his own experiences (that’s what makes all the tips and strategies from the author so authentic). Extremely honestly he also tells about the moments when he has “negative thoughts”. Every time he thinks, “I can’t do that”, he thinks of this example at the same time:

I will remember this story forever – motivation

The story takes place in the 70s, in India. A man lives with his wife in a village at the foot of a big mountain. One day, the wife falls ill. So ill that her husband had to take her to the nearest doctor quickly. The way over the mountain was too arduous, so he had to carry his wife around the mountain, all by himself over 70km along the foot of the mountain. If there had been a possible way over the mountain, the distance as the crow flies would have been only a little over a kilometer.

But instead of being able to take her to the nearest doctor as the crow flies, he had to walk almost 70 km around the mountain. That with his sick wife in his arms. On the way, she died in his arms.

This man swore to himself that no husband would ever have to bury his wife again, just because he would not make it to the doctor in time. The man began to carve a path through the mountain by the simplest means, so that there was a passable way. For 22 years he worked hard. Then, 22 years later, that path was actually finished. He had worked tons of stones and moved debris with his hands and the simplest tools. Completely unselfish.

If this man can accomplish such an incredible thing, how can I let myself be defeated by small problems? Exactly!

Let’s jump right back to one of the last episodes of part one in the audio book. The building instructions for a money magnet.

Instruction manual for a money magnet

An extremely interesting chapter that I liked from the very beginning and even listened to twice! But, what is a money magnet, explained very quickly? If you already have cash flow but haven’t really thought about reserves yet, you will love this principle or the extended model around the entire account structure!

Explained simply and quickly. In this episode you will learn how to install a money magnet. This “money magnet” attracts money “magically”. In principle, the money magnet is so simple that it can easily be underestimated. How does the money magnet work? Take 10% of your income (private) or 10% of your contribution margin (entrepreneur) and put it into a savings account. You never touch this account. Never! Why and what the money magnet brings you personally, you will learn for free in episode 25: Construction manual for a money magnet.

This was an extremely small insight into the first part of “Richer than the Geissens”. To give you a little more insight into what the first part of the book or audio book is about, here is the complete table of contents!

Table of contents – part 1: Mindset basics

• Chapter 1: Your personal real estate opportunities
• Chapter 2: Does money (really) make you happy?
• Chapter 3: Why your mindset is (almost) the most important factor
• Chapter 4: What is courage?
• Chapter 5: How your mind evaluates and what tricks it plays on you
• Chapter 6: Happiness is outside the comfort zone
• Chapter 7: What I could learn for life from traffic rules
• Chapter 8: If you do the same as everyone else
• Chapter 9: Know Your Why.
• Chapter 10: What is money and why do most people have none?
• Chapter 11: How to find your purpose
• Chapter 12: On waste of time, patience and unnecessary stress
• Chapter 13: It’s a “Hell yeah, baby!” or a “No!”
• Chapter 14: You have more departments than you think…
• Chapter 15: Am I a good life investor?
• Chapter 16: Analyze your beliefs: Can I have it?
• Chapter 17: Everything is cause/effect (action/reaction from physics)
• Chapter 18: When you get out of the habit, you become incredibly charismatic.
• Chapter 19: When you swim up the Rhine…
• Chapter 20: Building instructions for a money magnet
• Chapter 21: An extract of some monetary laws
• Chapter 22: What taps and icebergs have in common
• Chapter 23: How to become a true professional

Part 2: The tools to become the manager of your life

After, simply said, the first part is mainly about the right mindset, i.e. the right basic attitude towards you, the relation to money but also the necessary basic knowledge, the second part is now about strategies and tools. But you have not yet reached the point of earning money, because first you need the right tools and strategies.

Toolbox: To have, to understand, to be able

You can’t do something right? The others are somewhere, always better? It’s not you, it’s just that you don’t have the necessary tools, you don’t have the necessary knowledge how to use the tool or you simply lack the practice in handling the tool. Sounds easy at first, but is extremely important, especially in understanding your own abilities.

In episode 31: Your toolbox Alex Fischer personally tells about his experiences and moments when it seemed as if everyone else was passing him by and understanding and implementing things faster. Is it up to you? When he complained about it in a mentor talk, he was told that it’s not that he “can’t do something”, he just doesn’t have the right tools yet. Successful people simply have a better toolbox and they know how to use it. This means that even if you are faced with an initially unsolvable problem, you may just lack the right tool, knowledge or practice with the tool. Get the know how, learn to use it and practice!

Automation and Pareto principle

In the field of online marketing Alex Fischer has done something ingenious. He wanted to automate certain information and processes, that in the real estate sector. Reicher als die Geissens” goes into this topic in great, great detail at the end. But already at the beginning Alex Fischer shows with which basic steps he has built up his success in online marketing.

A topic that Alex Fischer deals with just as intensively is the Pareto principle. He brings the principle and extends it to the mathematical formula that it is. But who has ever thought about the fact that the Pareto Principle can be extended? So in short, what if you divide the 20% further into 20:80 and get 4% for example for 64% of the turnover? Extremely interesting! After all, in life it is important to separate lucrative and interesting options from the less profitable ones. Through this constant optimization, your own cash flow increases permanently.

But to follow all these thoughts, you should definitely listen to the individual episodes in the podcast! I just want to give you a little insight and introduce you to some of the tips and strategies you will find in “Richer than the Geissens” which will help you a lot at the beginning from my experience. Here is a small insight into the table of contents, so that you can see what part 2 of the audio book or podcast is about.

Table of contents – part 2: strategies & tools

• Chapter 1: Your Toolbox
• Chapter 2: Knowing the basics of marketing and sales
• Chapter 3: A problem exists only until you ask the right question
• Chapter four: Be honest and authentic.
• Chapter 5: Choose your partners wisely
• Chapter Six: Good Behavior? It’s much cooler without…
• Chapter 7: Goals? Setting goals? Stop it, I’m falling asleep…
• Chapter 8: How the Force is with you
• Chapter 9: Pareto in the application
• Chapter 10: The Seven-Contact Rule
• Chapter 11: The Blind Swimmer
• Chapter 12: How to weld a team and what are good guides?
• Chapter 13: Of chairs and machinery
• Chapter 14: Why many ideas remain just dreams
• Chapter 15: My Worst Mistakes
• Chapter 16: How to set priorities
• Chapter 17: No discipline? That’s what it is…
• Chapter 18: With great power comes great responsibility…
• Chapter 19: How to Go Viral
• Chapter 20: The supreme discipline: strategic planning

Part 3: How to build a money machine

Now it will be exciting, because the third part is about making money! Cash flow, passive cash flow, building up equity, etc. – welcome to the third part of “Richer than the Geissens”. In the last part Alex Fischer gets very concrete, with the big question, how do you actually earn money? From cash flow to your account structure, to reserves and passive income sources as well as the expansion, to a real money machine! In this review I just want to give you a short insight and a detailed look at the table of contents, so that you can see what the third part of “Richer than the Geissens” is about!

Primarily, at the beginning of the 3rd part, it is about the question, which own resources do you have, which strengths and possibilities? But it is also about the whole structure behind it! Tip, listen to episode 27 from the first part: What taps and icebergs have in common.

Set up money magnets

The A&O is your own money magnet. Quickly explained, it is a reserve account to which 10% of your earnings flow, always. You have no access to this account, just throw your PIN and TAN directly into the trash can. Never access this account! This point is so important that Alex Fischer is one of the few people to mention it twice. First the first part about the mindset and now much more concrete in part 3, because the money magnet is again part of a more complex structure. In general, it is about building reserves, through a certain distribution structure.

In simple terms, there is an incoming account, to which all revenues flow. This account does not make transfers to external accounts, but only to internal sub-accounts. These sub-accounts then form your reserves for the important business areas that you have identified. Part of these reserves is, as mentioned, your money magnet. At the end of this distribution key is the outgoing account, you calculate with this sum!

Calculate yourself poor! Why and how can you find out in the podcast from episode 53: The subgoals on your way to financial freedom.

Exactly these basic tips make the book interesting not only for those who already have a good and solid foundation, but also for private individuals and beginners who want to earn money with real estate themselves.

Purpose, resources, strengths and sectors

Purpose, resources, strengths and industries – Where does the journey in life go? Those who think concretely will find the optimal path. Alex Fischer deals with the following keywords in several episodes: Finding Purpose, Resource Planning, Strengths and the Business Directory. Why and how to use these for yourself, you will learn from episode 56: Income and creative time increase according to Pareto.

Through this combination of purpose, resources, strengths and industries you will find the optimal way to become successful. First of all you have to find your own purpose, which means your higher goals for yourself privately but also entrepreneurially. After that it’s time for resources, what is at your disposal? What do you have access to (know how, goods or contacts)? Then come the strengths, what are you particularly good at? The last step is different: For whom could your knowledge, your strengths and your resources be particularly interesting?

In several episodes Alex Fischer adresses this topic in the podcast of “Richer than the Geissens”, because before it comes to cash flow and equity, you need to know where you want to go and for whom you are interesting with your very individual skills and abilities!

Increase cash flow and equity capital

How can you increase your cash flow and equity? Those who are aware of their own potential, as well as those who could use this potential profitably for themselves, can now jump at the generation of steady income (cash flow), the building of equity capital, in order to then take the really big step, the first own property!

For the majority of the readers this is the big primary goal: the first property. Because very few of the more than 200,000 readers so far will already own a portfolio of 3.4 or even more properties. If you listen to the podcast, you can be one of those few who have built up their own real estate portfolio.

The strong point of the audio book, the journey is not over yet! At this point you have read or heard about 80% to 85% of the book. The last 15% to 20% then deal with the development. At the latest from here on I don’t want to give you any more small insights, but would like to refer you directly to the free podcast at Spotify and iTunes!

Important: Listen chapter by chapter

Be careful not to read or hear the book in pieces. Start at the very beginning, listen to the individual episodes at your leisure and if necessary, repeat individual episodes for your own learning success. Within a week at the latest, you will have recorded all the information, thought it through several times and perhaps already talked about it with one or two friends. Talking about it helps, because it deepens your learning.

Good luck! In five years with 0 Euro equity to become a real estate millionaire, listen to the free audio book now:

• Richer than the Geissens – audio book on Spotify
• Richer than the Geissens – audio book on iTunes
• Alex Fischer – Website & free members area

Table of contents – Part 3: Building a money machine

• Chapter 1: The sub-goals on your way to financial freedom. An overview…
• Chapter 2: Setting up the money magnet
• Chapter 3: Analyse and reduce costs
• Chapter 4: Increase income and creative time after Pareto
• Chapter 5: Finding Your Purpose
• Chapter 6: Your Resource List
• Chapter 7: Your Strength List
• Chapter 8: The list of branches/market niches
• Chapter 9: Cash flow increase
• Chapter 10: Increase in equity
• Chapter 11: Commercial operations
• Chapter 12: Credit enhancement (increase in creditworthiness)
• Chapter 13: Financed commercial operations
• Chapter 14: Continuous learning and intangible capital formation
• Chapter 15: How to be a billionaire…
• Chapter 16: Analysing and optimising your balance sheet
• Chapter 17: Analyzing and building your intangible assets
• Chapter 18: How to find investors and kick starters
• Chapter 19: The structure of your power network
• Chapter 19: The Kangaroo Financing – Big Jumps Despite Empty Bag…
• Chapter 20: The first property – get the white ball ready
• Chapter 21: Increasing value and cash flow
• Chapter 22: Expansion and further

Strategies and learning in everyday life

About a week later – Suddenly, more and more of the learning can be found in my everyday life. For example, chapter 16. How to find your purpose and the basic idea of turning negative into positive, that is: transforming “what I don’t like” into “what I like”.

The more often you deal with the individual chapters or episodes, the more knowledge you take with you. In the same way, you will only really understand some of the findings when they are applied in everyday life. Here is a small example:

In order to find your own purpose, i.e. your own superordinate goals, Alex Fischer advises you to make a list of all the negative things, the hate list! In short: He wrote a list of things he no longer feels like doing. So that they no longer buzz around in his head, but are written down. The name of the list: “What I do not like to do. What I don’t want to do anymore. What I really hate to do”. While writing, he realized that as hard as it is to find things you want to do, it was easy to write down things you no longer want to do. The Dislike List. With all of this written out of his head on paper, he feels free as never before. He also realized that he didn’t hate his job, he only hated individual areas. In addition, there were superordinate points in which several key points could be summarized.

Ergo, take all your negative thoughts, organize them, categorize them and conclude exactly the opposite!

Another aha-moment!

Everyone, including me, has negative thoughts all the time.

Especially as an entrepreneur (and managing director) you are not only responsible for your own life, but of course also to a certain extent for employees and other people in your immediate environment, from suppliers to insurance companies. Wages have to be paid on time, rents, investments, the above-mentioned insurances, suppliers, software, communication, vehicle fleet… and everything has to be optimized constantly… and of course also expanded!

Anyone who leaves his own comfort zone, e.g. by growing and reaching new markets, is constantly exposed to risks. Accordingly, you have to rack your brains to ensure that all eventualities are taken into account. There is nobody else to do for you, you have to do it yourself! A lot of room for risks, potential difficulties, problems or even failures. Already they are there: negative thoughts. If bad weather is added to this, not uncommon in Germany, the ceiling can fall on your head.

Typically I then complain about the weather, of course!

But now I’m trying to use the insights from the podcast to turn all the negative thoughts into something positive.

I hate bad weather = I like good weather

The weather is bad? It’s cold? On a superordinate level, you could say that I don’t like cold weather! Accordingly, I collect my negative insights, categorize them and, according to Alex Fischer, form the exact opposite out of them. Rain, wind, cold, all this belongs to bad weather.

The reverse conclusion is: I like warm and sunny weather!

Doesn’t that sound much better? Doesn’t this positive thought bring me much more in life, today and for my future? Exactly.

There are two advantages to this. On the one hand, my own mindset is formed positively, so that I don’t constantly think about the negative, but about my positive belief system! The second advantage, this is exactly where my “Purpose” comes from. If I want warm and sunny weather, I have to make sure that I get to such places.

This changes my mindset and of course the steps I will take. Very simply put, we will focus the work in the magazine, for example, on writing about topics like “Los Angeles” and “Miami” instead of “Oslo” or the “Swiss Alps”. That sounds simple but it will lead to more corporations in these areas in the future and consequently I will have more business contacts in warm regions that I like. Thinking one level further, a more intensive cooperation would develop and eventually more frequent visits would be the result, and so my center of life would, little by little, move more and more to warm and sunny regions – wow.

All this, just through a newly formed mindset.

Many small streams become one big, rushing river.

How you should listen to the podcast

The same way you can understand the podcast and the book “Richer than the Geissens”. You have to take your time to repeat single chapters. When you have completed one step, you will hear further episodes again, which are important for your next steps. But the most important thing is to start at episode 1 and listen to episode after episode.

Excerpt from Amazon:

• You will find 43 timeless laws of success to get you off to a maximum start.
• 14 concrete steps to become a real estate millionaire in just five years
• Essential principles and tools to build a freedom and money machine
• The real reason why money alone doesn’t make you happy…
• The 7-contact rule for an extensive network of experts
• Your 1st property: Effective strategies to build up equity and double cash flow

The book in short form – The podcast or book is first of all about forming your own mindset, your own beliefs. This is the absolute foundation for private individuals, but also for entrepreneurs.

It is about financial patterns, the first own money magnet and many other details that I prepare to achieve your first relevant cash flow. The next step is to build up equity. Then it goes step by step, passive sources of income, the first own property and… listen to the podcast! In five years with 0 € equity to become a real estate millionaire.

Have fun listening, learning and applying!

• Richer than the Geissens – audio book on Spotify
• Richer than the Geissens – audio book on iTunes
• Alex Fischer – Website & free members area