Saturday, September 17, 2016

Il primo passo per vivere di rendita

Questo post è dedicato a te e, mentre leggi questo articolo, desideri trovare una strategia per vivere di rendita. Continua a leggere saprai cosa fare.

Se desideri incrementare le tue rendite immobiliari, il primo passo è molto semplice. Bisogna iniziare.

Il primo passo è quello di comprare il primo immobile a reddito. Il primo passo serve per prendere confidenza con il mercato, pertanto conviene farlo proporzionato. Bisogna trovare un immobile a reddito per fare un piccolo primo investimento. 

Per esempio, puoi comprare un appartamentino da 100.000 Euro, con una rendita di 6.000/7.000 Euro all'anno. E come primo investimento puoi, eventualmente, montare un mutuo di 50.000 Euro. Non consiglio di fare investimenti con troppo mutuo all'inizio.

Fatto il primo investimento,  le tue rendite iniziano ad essere di 6.000/7.000 Euro all'anno. A questo punto, hai già preso il cammino che ti porterà alla sicurezza finanziaria.

Il prossimo step è quello di imparare a gestire le rendite.

Luigi Foscale

Tuesday, October 21, 2014

Who’s behind the Global Economy?

Did you notice that lately the major economic reforms they all look the same?

Strange and worrying...

Strange because we always knew that in the global economy each nation was free to compete with the others and grab their segment of cash flow from foreign investments, tourism etc.

That’s why according to a simple marketing logic, to the very purpose of making each single economy more attractive to foreign investments, each country should elaborate its own legislation on a product-differentiation basis in order to maximize the uniqueness of their offer and make it more appealing to foreign investors.

This is not how it works though.

Actually this is something to worry about because if the Secretary of Treasure of any given country finds himself in the situation in which he is unable to take an autonomous decision but he has instead to undergo the directives of some international institution there’s something wrong here.

What’s at stake here is the very meaning of political representation which is put into discussion together with the very basics of Democracy itself.

You have a government overthrow when a government chosen by the citizens of a given country is  replaced by another government that has not been chosen by those same citizens. 

So the question here is: are we in front of a huge government overthrow of global size?

Let’s put it another way: are there supranational entities, not elected by the people that took over the elected officials and that are deciding for us? 

Dangerous.... the most dangerous aspect of this whole story is that we, the people, we live in total darkness. Indeed we are convinced that if we decided to live in a certain country like Germany, Spain or the United Kingdom, then we are going to be subjected to the economic and fiscal provisions of that country in which we chose to live.

It apparently seems so.

But it’s not.

So we ask ourselves. Why the single countries are losing their own independence by undergoing the imposed economic choices of someone else?

If a country government decides to make its own economic policy why in the world it has to undergo the judgment of foreign rating agencies and why the same country eventually got down on its knees has to go back on its own steps?

Who’s behind this “interference”?

What’s going on indeed?

Is something changing and we’re not aware of it?

But the crucial question is: who’s that strong to bend the will of a series of country governments.

This is the situation. Unfortunately we are not wrong if we ask ourselves whether is it possible that these forces of darkness have also planned the economic crunch that has been haunting the global economy in the past five years?

If you want to know my opinion, which is not the one of a politician but of a simple entrepreneur, the whole thing was absolutely planned.

First of all in order to rule the global economy you just need to control the economic flows. The rest is absolutely irrelevant.

It starts indeed from who sells the money. The Banks. You know the protocols Basel 2 and Basel 3. They only reward those banks that have a solid capital reserve. These banks can only supply money to those companies that also have a nice capital reserve and a nice cash flow.

Families are spurred to plunge into debts through the various means of consumer credit like debt cards, or other tools that cost the consumer  a fee which goes up to 18% per year.

The providers of these financial tools are often the major financial institutions.

So the families have to plunge into debt because is this sort of situation that feeds and keeps up the whole system.

On the other side, businesses must undergo a rating system. The better their budget the better their rating. Under these provisions however we risk to lose the Banker’s role (which is absolutely priceless for the community).

Then we have those countries that struggle everyday more in deciding their economic policies in full authonomy.

This kind of system rewards the rich countries, the rich businesses and the rich people. The stats show that the number of the super rich is growing year by year and that big companies are growing everyday bigger and bigger while the medium and small sized businesses are dying.

The data show that also the rich countries are getting richer always more.

I am deeply convinced that in order to overcome the global crunch we must change this system and redistribute the wealth. Not through an increased tax-pressure but by promoting the private initiative and by providing credit to those businesses that showed to be active in their own market.

The experience tells us that the microcredit of the Indian Grameen Bank (or Bank of the poor) was a crucial contribution to the development of the Indian economy, making it the major player that is today. The Grameen bank increased the level of wealth in the population’s lower segments while increasing the profits of the bank too and of its own founder Professor Muhammad Yunus, a man who I deeply admire and who’s been awarded the Nobel Prize because of the historical meaning of his initiative.

The same thing happened in those Asian and African countries where microcredit is becoming every day more popular. Microcredit indeed is showing to be the very engine of the emerging markets economic development, especially in those countries we used to call third world.

My idea of economic model is the following: we need local banks with diffused ownership, based on the Italian model of “cooperativa” where community members are also shareholders. These banks must support the local businesses, the retail shops, working figures like plumbers for example who have to buy their own tools in order to do their job.

The “Cooperative Banks” are the ones who can teach the new generations what saving and investing really mean. These are concepts that the big international bankers have swept away from my generation.

I know this can be viewed as utopic but believe me this is how it is.

The little Alpine Communities living in the small villages of the Italian alps, they have been kept living in their small ancient world with their small sized banks which helped them going through each global crisis of the past sixty years.

These banks have diffused ownership and all the community members are shareholders. On the other side, the bank supplies credit exclusively to the community members, because this is their statute’s main rule.

So why the European big shots who have many more means at their disposal they are unable to get the global economy out of this “crisis”?

Maybe the question is: they can’t or they don’t want to?

Luigi Foscale

Friday, March 28, 2014


1. About us
After reading the following articles, you will know about my unique roots.
1.1. Index
1.2. Bio of Luigi Foscale
1.3. My Private Banking in Real Estate
1.4. How To follow our Community on the Media
1.5. Links and Friend

2. The New Theory of Automatic Income
This Theory set a new Economic Law, and it's turning the Economic Markets upside down.

2.5. Live from Rentals
2.6. The Wealth & Health Manifesto

3. Psychology of Rich
Like an Iceberg, to see the visible, you must know that the IN-Visible part is much more bigger. In here we will make the IN-Visible, Visible.

5. Luigi Foscale's 4-Step Strategy for Building a Real Estate Portfolio
This is a how-to guide to build up your Real Estate Portfolio.
5.0 Luigi Foscale's 4-Step Strategy for Building a Real Estate Portfolio 

5.1. Step 1: Control your mind

6. Investing in Real Estate
Discover why Real Estate Investments are attractive now, and how to take profit; and discover all the know how from a international investor.
By reading this Glossary, you will learn how to read between the lines of any business media.
7.1. The new opportunity

7.2. Inflation

7.3. Leadership
7.5. Leverage
8. New Age of Economy
This section shows the past from the future’s point of view, besides it will anticipate what happens next.
8.3. Win the Crisis
The point of view of a global player.

9.1. On European Union
9.1.4. Finally
9.1.5. Euro on the closing of last day of third quarter 

9.2. On USA
9.2.1. US unemployment rate at 7,8%

9.3. On Russia and Friends
9.3.1. Luigi Foscale on Russia
10. Luigi Foscale Answer
If you have a question, write me at ; the best questions will be published.

10.1. Luigi Foscale answers

Links and Friends

A friend of mine asked me, where I can found all my news...

Saturday, January 25, 2014

Demographic Window. How to get out of the crisis in one generation

According to the Merriam Webster, Demography is the study of changes (such as the number of births, deaths, marriages, and illnesses) that occur over a period of time in human populations.

A Demographic window is instead that period of time in a nation's demographic evolution when the proportion of population of working age group is particularly prominent. This occurs when the demographic architecture of a population becomes younger and the percentage of people able to work reaches its height.

When the number of births decreases, the age increases, consequently, the number of retired people grows. Who will take care of them? This is called the financial stress of retirement.

 Those countries that belongs to the demographic window have a greater labour force, greater consumption and a steady growth.

Most of the global wealth is in the baby boomer's hands. Baby Boomers are those people who were born in the decade following the end of the second World War. Today they are all retired or next to retirement. Who's going to support them? How are they going to survive?

How can we stimulate the economy?

In Europe 5 million babies are born each year and the birth rate is a little less than 10%.

If we would stimulate the birth rate, for example by doubling it, we would wipe off the chance of an economic crisis for the next 40 years.

As a matter of fact, history tells that when the birth rate overcame the 20% we had an economic boom.

The following are a few strategies that could solve the crisis of the European System.

First Strategy: Provide the families an economic reward of €1000 per year for each newborn for the first three years of life. If we reach 10 million births, the amount would be €30 bn. These are petty numbers if we consider the whole European Economy. Besides, these resources would be spent anyway, hence a 20% of VAT would be recovered right away, while the left 80% would feed the economy.

The mothers would spend money in businesses that pay taxes, retail shops would hire clerks who would receive a salary that is going to be taxed, these same people would buy a home, a car and they would spend the money for their daily needs.

Second Strategy. Provide tax credits for the costs needed to support each baby. How much a baby costs a family? In Italy it could be €7000 per year. The budget would be mainly for drugs, doctors, clothing, food and toys... We would provide a tax credit for each child in a way to reward those families with more children. For example for the first child it would be enough to provide a tax credit of €1000.

With two children we could provide a tax credit of €3000. With 3 children it would be of €5000 with 4 it would be of €7000 and so on. The whole system would provide benefits for the children until the 6th year of age.

The maximum exposure it would be when 10 million births are reached. In the case we reach that peak the total fiscal budget would be of €70 bn. Even in this case, the greater financial resources of the families would be spent and it would go back to the government without great effort.

Third Strategy. Making a deal with all the private and public schools to build kindergartens by providing a contribution for every child of €100 a month with the rest being on the Government.

Fourth Strategy. Making a deal with the retirement homes in order to have in the same building the nursing homes and the kindergartens. It's good both for the children than for the elderly citizens.

Fifth Strategy. To increase safety and security in the streets by doubling the number of policemen. Increase the present labour force.

As we just saw it here, the crisis can be easily solved by developing a tax regulation. Even if on a continental level there won't be the chance to do it, a Prime Minister of any given country could easily make it with 2 months of work.
Two months to get rid of the crisis.

Why don't they do it then?

Luigi Foscale

Monday, July 29, 2013

Unfreeze the Financial Power inside yourself

In the past few days a friend of mine (whom I would define as “definitely wealthy”), expressed some worries over his financial assets which underwent a major erosion lately.
Because of increasing financial losses together with the real estate crisis, his incomes are not the same they used to be. And his spent is growing bigger day by day.
In practice he’s in that peculiar stage where the spent is higher than the incomes. 
What really stunned me was considering the fact the man is smart, he’s not a rookie, he’s a man who knows what he does and he’s economically and financially literate. 
Why he’s so worried then?
First factor. The worry. 
As you may have read in my latest post, at the end of the day having a bad feeling might be helpful only for one thing: to realize that what you think does not match your desiderata.
The Law of Attraction tells us that what you think is what you get, even if it’s actually what you don’t want to happen. Because our mind does not distinguish between what we want and what we don’t want. 
Whatever we think on an emotional level, that thing will get closer to us. 
I know it might sound strange or even weird to most of you, but this is exactly what happens. 
In this particular case, the worry is like a red alarm lighting up in our cockpit. 
It tells us that something is not aligned with our will, but because we keep thinking about it, it’s going to get closer to us. This is the case in which you have to be awake, simply to realize that something’s wrong. 
That’s what can happen to a wealthy man with a brilliant mind, someone who is financially literate and skilled enough to forecast a loss in the long term. 
The second factor is our friend’s financial intelligence. Indeed he’s got all the skills to know if he’s getting richer or not. So his list of priorities (that helps him to filter the world’s events) is already well set upon the Retire Rich scale.
The sum of the first and the second factors together made me wonder: “Someone who knows how to make money with Rental Properties gets so worried…there should be something wrong here.”
That’s when I said to myself: “Luigi you absolutely have to know what’s wrong with this situation and let it know through the blog to all of your friends!”
As you just read, his worry is like an inner voice that says : ”hey, watch out! The spent is out of control and you have fewer incomes. Let’s get busy and do something to change this course…Meanwhile I am sending you a worrying message to let you know what’s going on”.
If you manage to understand this kind of signals you’ll be able to undergo a process of self-criticism and make the necessary changes to feel better. 
The financial distress is very hard. It creates many worries and some of its consequences might be dramatic. But there’s a positive side, what goes around comes around if you take the right path. 
The thing is, sometimes, even if you realize what’s the right thing to do, contingency is there to make things harder and you can screw up. 
In these cases, it might be helpful to have a friend like a business saviour. That would make it easier for you to find a way out. 
It’s not always said that you can break through but I have seen it working… for many.
One thing I want to say is I am not willing to tell here what’s the formula to become Rich or to become Richer, because mine is just life experience or better business experience. 
That said, after we scrutinized our friend’s worry, which is motivated by facts and strengthened by the experience, I said to myself: “Luigi try to go deeper into this thing and make yourself an idea on what’s really going on”.
That’s when I started analyzing his portfolio.
His are properties in non-exclusive areas, which are hardly rentable. It became obvious that in a time of crisis like the one we are living now, fewer people would like to buy your property and even fewer would be interested in renting yours. 
Properties in non-exclusive areas that are non-profitable. Plus you have to consider the expensive mortgages.
Eventually I analyzed his financial needs. A property rental that is certain and safe. 
The worry finds its roots in the fact that it would be aimed at high profits but his assets don’t allow him to do so while he’s leading an expensive lifestyle. 
This formula leads to impoverishment and you need to take drastic measures to stop it. 
1. Drastic cuts to your lifestyle .What you can spend for current expenses has to be reduced to the essential. Cut! 
2. Determine your Operating Cash Flow (OCF)- You have to calculate the incomes from every estate, decrease Condo fees, interest rate where applicable, amortization where applicable, a fixed amount for maintenance fees, property taxes and income taxes. If the result is negative, your property is a moneypit.
3. Do a nice mortgage analysis. At this point, I am revealing you the power of the financial lever and I make you an example. The lever is like electrical energy you can light up your bed room with it or you can give it to someone on the electrical chair or you can also get shocked with it.  
Mortgages are very similar to electrical energy. A mortgage is useful only and solely if it helps you to produce cash flows. My advice is to make it with actual cash flow and not future. So that if the mortgage rates have interests that are too high, or the amortization are too fast, you should negotiate new conditions. 
Simple to say, hard to do it. By yourself. Just in case I advise you to find a financial planner who can help you in finding the right financial product that better suits your needs. 
4. At this very moment, by using the elements of the preceding points you can determine your Cash Flow by following the information already in your possess. The cash flow will be the result of the sum of all incomes, the business outcomes and your living expenses. Through the Cash Flow you can make simulations to understand if the properties you have possess all the requirements to be profitable and/or if some of them or others could be more suitable for your specific case.  
5. After you know what you have to do, you can give the sales mandate to your real estate Agent. I always suggest to rely on trustable and expert Estate Agents because they know the market better than anyone. Although they have to be reliable, honest and work on your own interest. I am kind of lucky because I can rely on really skilled professionals.
I do work on these things very often on a weekly basis. It’s my training to enter the Retire Rich stage.
If you are reading this, you understand this can be very valuable, but then any situation is different and you can only rely on yourself and the expertise you were able to develop while working on the field as I do every single day. 
I warmly invite you to read my other posts on financial wealth that you can find in the blog index. 
You should also remember you can always contact us at I will personally take care of every email and I would provide you with valuable advice on every issue you may submit to my attention. 
I would like to thank my worried friend for telling me about his situation and for providing me a chance of reflecting about this situation. 
Obviously, I will never reveal his identity.

Luigi Foscale