BULLET PROOF BANKING,

CRYPTO-CURRENCY AND
POST WINDFALL PLANNING
SECURING YOUR MONEY AND PRIVACY AGAINST HACKERS AND SURVEILLANCE

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 John Jay Singleton

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Published by Singleton Press
[email protected]
Skype ID johnjaysingleton
Www.aceofcoins.com

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 TABLE OF CONTENTS

Avoid a Bank Levy…………………………………….……………………….……. 7

Avoid a Lawsuit……………………………………………………………………… 11
End an IRS Levy or Audit…………………………………………………………... xx
Blockchain Tax Immunity Trust…………………………………………………….. xx
Ghost Your Smart Phone…………………………………………………………… xx
Prevent a Wage Garnishment……………………………………………………… xx
Remove an IRS Lien, Bankruptcy or Judgment Lien from Your Credit History. xx
Settle with the IRS Posthumously…………………………………………………. xx
Living Well Without a Social Security Number…………………………………… xx
Signature License – Restrictive Endorsements and Controlling Your Data….. xx
The Debt Free College Degree……………………………………………………. xx
The Seven Year Mortgage…………………………………………………………. xx
How to Buy a Car with Bad Credit………………………………………………… xx
How to Buy a House with Bad Credit…………………………………………….. xx
How to Build an Asset……………………………………………………………… xx
How to Buy an Asset………………………………………………………………. xx
Don’t Confuse Security with Surveillance……………………………………….. xx
The 8GB Crypto-Graphic Asset Portfolio Manager…………………………………… xx

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HOW TO PREVENT A BANK LEVY

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 If you can prevent any creditor from levying against your bank account, you should. I
don't care if you think you owe, you should always retain control of when or if you ever decide
to pay any creditor, not have it taken from you like some child being punished. The following
explains how to do it.
There are of course many variations to this and no doubt you will figure them out for
yourself once you see how easily this works. But here are the basics. You want to receive
money in the name of a third party, that you control. The ideal structure for this, that will not
change your tax situation, is the limited liability company, in any of the fifty states.
How is this accomplished when your employer has to pay you in your legal name?
How is this accomplished when the payment can only be made in your legal name? The
simplest way is to find a nominee (someone who can act in your behalf using his own name
with no power of attorney) who can be the signer for you on a company bank account. You
can be the signer, but it's much more certain if you have a nominee do it for you. The
nominee should be someone who is of legal age but young enough not to be involved in any
collection problems of his or her own. It can also be someone who is old enough that he
won't care what you use his name for, and trusts you, and also does not have any collection
situations pending.
Once the account is opened, the nominee will give you total control over all of the
account management functions, even though he or she can walk into the bank with photo
identification and close the account, you will not be keeping much cash at all as the account is
only for clearing funds. And I'm assuming this is someone with whom you have mutual trust.
The first step is to have the nominee register an LLC with the secretary of state in the
state where the bank account will be opened, preferably where the nominee resides (is a
resident). Use a company name that sounds like a company, not the individual's name for
whom it will be used. At the time the LLC is registered, the nominee should name himself as
the organizer, sole owner/member and the registered agent, using his home address (or a
mail box) as the address for the registered agent function.
The nominee should then apply for an EIN from the IRS's official website at this URL:
https://sa.www4.irs.gov/modiein/individual/legal-structure.jsp The nominee can use his SSN
and name as the applicant and it will not create any liability or tax consequence. In fact, you
can use the EIN and name of any other company as the applicant.
Once you have it, the system will generate a PDF formatted letter that you can print on
paper for banking purposes and save in a folder on your computer for later reference. I
recommend making the filename the actual EIN for quick reference.
Use that letter along with the other documents such as the “mock” articles of
association, two forms of identification for the signer and the minimum opening deposit
amount when you go to the bank to open the account. You can have two signers, it's your
choice. Only one is needed and the LLC will be registered first as a single member LLC, but
its operating agreement will create a multiple member LLC. Sometimes it's best to ask the
bank what it wants in order to open an LLC account, sometimes it wants a certificate of good
standing for the corporation or a record that it's been published in a local business journal for
two consecutive periods. Most banks just take your word for it and search for the corporate
registration online while you're sitting there to confirm it's actually registered and the names of
the principals.

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 The reason for organizing the LLC as a single member in the beginning is that the bank
personnel will not ask for the names and identifying information of the other interested parties,
it's really for privacy. The purpose of the “mock” operating agreement, or articles of
association is to satisfy the bank's request for it without disclosing the names of the real
principals.
There are certainly variations on this process and in many cases it will need to be
modified to meet the needs for each individual using it. There is also a method of receiving
your money through a Bitcoin service and storing it in dollars using a vault service instead of a
bank. Those are additional details for which I don't yet have a standard procedure, but we
can discuss anytime.
Along with, or soon after the company is registered (but before the bank account is
opened), the nominee should include a fictitious name registration. In some states, this is
known as a “dba or doing business as” designation or “assumed name”. The applicant is the
LLC, using its name, and the fictitious name should be the exact legal name of the individual
for whom the nominee is acting. For example, if “Bill M. Smith” needs to clear checks via a
bank account and avoid a levy, the company might be called XYZ Company, LLC and it is
doing business as “BILL M. SMITH”. This is different than the human being known as Bill M.
Smith, but will enable checks and even direct deposits to be made to BILL M. SMITH, in the
company account and no one will care one bit.
Once you have your LLC registration and fictitious name registration, have the
nominee go to the bank and open an LLC bank account, with the nominee as the signer, so
that the bank account title shows “XYX COMPANY, LLC DBA BILL M. SMITH” for example.
Because the nominee is not the interest party, it's not his money, he will need to give you all of
the documents and access to the account and a signature stamp with hand-written
authorization in red or blue ink, stating the following:
“I [signer], hereby authorize the use of my signature, on this date, _________, for the limited
purpose of operating and managing the corporate banking account for which I am a signer,
and for no other purpose, and only for purposes that are not prohibited by law. This
authorization shall expire within one year following the date of this statement unless
otherwise extended by me in writing.”
Any checks made payable to Bill M. Smith can then be cleared (deposited) into this
company account and then the funds can be transferred however Bill Smith prefers. The
same works for direct deposits, just notify the payroll function of the company remitting
paychecks that the payee has a new bank account and give the individual's same name “Bill
M. Smith”, for example, and then the bank name, account information and routing number,
and new authorization or whatever else is required, and it will be business as usual. The
same can be done with a merchant account.
Do not file a tax return for this LLC because it's being used as a “tax flow-through”
structure, just clear the funds and move them without leaving lots of cash in the LLC bank
account.
The only levy that this does not stop is garnishments at the source, before the check is
disbursed to the payee. That takes a different strategy which is too lengthy for me to explain
here, but it is possible to prevent nearly every wage garnishment with a strategy that takes
about ninety days to organize.

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 Once this is established, it's possible to further utilize this LLC and bank account to
eliminate wage garnishments or at least dramatically reduce them. In most cases, wage
garnishments from W-4/W-2 type income can be eliminated completely. If you have 1099
income, it is certain that we can eliminate any attachments to that as well.
Special Purpose Trust
We have an additional structure that used for simply clearing funds in the bank so that
the funds are not received in your legal name. It's a special purpose trust that allows you to
clear funds (cash checks for example) in your name, but because of the structure of the
account and the signature rights, the funds will be cleared in the name of the trust and any
claims against your personal bank account will not attach to this special purpose trust
account.

This process I just explained will prevent bank levies from literally anyone in the world,
unless the levy is against the LLC or settlement trust itself.

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HOW TO AVOID A LAWSUIT

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 This program will show you how to legally avoid being sued, and avoid having your
wages garnished and your bank account levied. I've also included a bonus section explaining
how to remove tax liens and bankruptcies from your personal credit file.
I call it “disappearing on paper. This step involves a little time and preparation. The
earlier you complete this, the better your chances will be of avoiding a lawsuit. The standard
method of determining which law firm or attorney will be chosen to file suit against you is
based upon your mailing address. It is assumed by the collections department and the law
firm that your mailing address is your place of residence. Since the bank must file suit in the
county in which you reside, it must then locate a law firm that is local to this mailing address.
If the collection department sees that you reside in Phoenix for example, it will assign
the collection to a law firm located in Phoenix. Remember that you originally confirmed that
they had the correct address for you when your account was opened. This is information that
you provide, and when you move to a different address, you can easily complete a change of
address form and include that with your monthly payment. What if you submitted a change of
address form with an address several states away from where you truly reside and arranged
to have your mail forwarded to you every two weeks? Would any creditor know the
difference?
Provided that you would ultimately receive all mail, or that you pay your bills online so
that this would not be a factor, probably no one would notice. In fact, if your account did go to
collections, upon deciding to file suit, that department would attempt to locate a local law firm
near your mailing address which is several states away from where you truly reside. What do
you think your chances of being sued would be at that point? There is a chance that the bank
would have archived a history of previous mailing addresses, and be able to try the next most
recent address, or may retrieve a copy of you credit file and see if they can find your previous
address that way. This can be countered by simply disputing your true residential address on
your credit file and claiming it is incorrect. You can show copies of monthly statements to
prove this. You can also make the change of address twice so that assuming the creditor
retains only one previous address for you, it will be replaced when the second change of
address is entered into your customer record.
What if you sent the bank a change of address notice with an address in an area of the
United States that had a population less than 4,000 people in one county? Your chances of
being sued by a local law firm would be dramatically reduced.
You are probably thinking that “ducking and hiding” is the solution to your debt
problems. This is absolutely not true, the method explained here has been used by many
wise and learned estate planning attorneys. It is the same strategy used by famous people
who want to avoid the press and public scrutiny.
Your mailbox address should of course be in a different state. You can complete the
change of address notification for each credit card account to which you wish to apply these
strategies. The mail they send you can then be automatically forwarded to your local address
for response.
Some of you will ask “What happens if I do this and they sue me anyway?” You cannot
be sued until service process is perfected, and in nearly every jurisdiction (county and state),

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that requires personal service by a licensed process server. Rarely are creditor lawsuits of
this type permitted to be served via certified mail or even first class mail. Assuming the worst
case, that process can be made by mail, and that the plaintiff’s attorney has obtained
permission from the court to do that, you will always file in every example, a motion to dismiss
for improper service of process.
The argument you make is the only one you must make and not submit with any
other arguments, that the complaint must be dismissed because service of process
was not perfected.
You will explain that you are not a resident of that state and you can include an affidavit
so stating, but do not disclose your current residential address for obvious reasons. You can
use your mailing address as the return address and you can either arrange to have it mailed
from the mailbox service (re-mailed by placing the motion and copies sealed in envelopes
with the correct postage and then inserting those in a larger envelope with instructions to the
mailbox service) or just mail it from your local address. Be sure to arrange this with your
mailbox service to be sure they are willing to do it. They might charge a small fee also.
Do not schedule a hearing on this motion. In some cases the plaintiff will proceed to
request default judgment or summary judgment, and again, respond by filing a second copy
of the motion to dismiss for improper service of process.
If the court awards judgment anyway, you can then file a motion to vacate that
judgment and argue that the court never obtained jurisdiction over you since you were never
properly served with the summons and complaint. The details are provided by your attorney.
What happens if the creditor calls me to determine if I am still answering the
telephone at the same phone number that matches the address they had on file for
me?
There are several ways of preparing for this, but the most important fact to accept is
that you will need to change your telephone number. Changing your phone is not to avoid
harassing phone calls, but to make it appear conclusively that you have moved to the new
address as indicated on your change of address form.
The new voice over Internet (VOIP – Voice Over Internet Protocol) technology services
will allow you to utilize the Internet to make phone calls and also allow you to choose a
telephone number prefix and area code from nearly any location in the country. In other
words, you can change your home telephone number for free by telling the phone company
that you have been receiving some threatening calls lately and many times they will change
the number for no charge. The number will show an area code and prefix for your service
area, very similar to your previous number. That will work perfectly; however, if you want to
take this to the next level and make it appear as if your area code and prefix match the
location for the address you have chosen, you can use any of the VOIP technologies. To find
one, just do a keyword search on the Internet. This is recommended over a traditional phone
number change just because it is a number you can use no matter where you live or how
many more times you move or change your address, and the Internet connection services are
generally less expensive than the regular phone service.
There are also voice mail services which can provide you with the area code you
want and allow you to record a message for all debt collectors directing them to limit
their communication with you to writing.
To obtain the greatest benefits from this strategy, you will want to establish dual
residency. You cannot have a driver license in two jurisdictions (states), so dual residency

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would need to be established using other means. You are already a residence in the state
where you currently reside and own a home, have any type of license, mortgage, lease,
vehicle, vessel or aircraft registration, state issued identification, children registered in public
schools, utility bill, tax bill, enrolled in a public school and/or registered to vote. Any one or
more of these establish residency, including membership in a state sponsored organization. It
is perfectly legal to establish dual residency and many people do this as a matter of course for
college tuition purposes, privacy and other legal objectives.
You can obtain a major benefit by establishing residency in another state and greatly
reducing the risk of being sued (service of process); however, you can further reduce the
possibility of wage garnishment by changing your residency to a state where wage
garnishment is not legal. Did you know that there are four states in which the law prohibits
wage garnishment? They are Pennsylvania, North Carolina, South Carolina and Texas.

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HOW TO STOP AN IRS LEVY PROCESS

AND PREVENT OR END AN AUDIT

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 This is the service you hear on the radio and on television or maybe online now, where
attorneys promise to stop your levy with the IRS and you end up paying thousands of dollars
for the service, even though there is a good chance the people providing the service will
probably deliver. However, you can stop an IRS levy within 30 days of receiving a notice of
levy, all by yourself, using the same strategy. Go online and search for Form 12153 in PDF
format “Request for Collection Due Process Hearing” and follow the instructions. It works
best if you file tax returns or have prepared returns to file and that you do this within the thirty
days. The levy will stop if you file this within the thirty days, but if it's filed after the 30 days,
stopping the levy is at the discretion of the IRS agent assigned to collect.
This is how I've done it for many clients, and I didn't charge thousands of dollars either.
To begin, type the following information in this form (12153), the type of tax and form is “UNK/
1040” for tax period [year(s) appearing on notice of levy, only]. Be sure you enter your name
and address exactly as it appears on the notice of levy and lien forms and only identify the
years that are listed on the notice of levy (you should know that there is no such tax as a
“1040 tax”).
On the line that asks the reason for your request, choose one of these generic
statements or write something similar.
I am disputing the amount stated in the “Notice of Levy” for the reason that it does not match
the assessed amount and the collection is creating a hardship for me.
Or,
The collection of the amount owed is not in jeopardy and the “Notice of Lien” should be
released so that I can liquidate assets or make payment arrangements.
Or,
I have been trying to make arrangements but my requests have been ignored and this
collection has created a financial hardship for me and I'm not able to build my business and
make more money to pay off this debt.
Or, your reason will be something similar to this, do not make a protesting statement
such as my income is not taxable, etc. That is not relevant at this point.
Print and keep a paper copy for your records, and send the original as instructed, to
the address for the IRS as it appears on the levy/lien notices.
When you sign your name, first write on the line “By:” and then your signature.
When the agent calls, ask his/her name & badge number (write it down) be sure to
explain you want a Collection Due Process Hearing or an Equivalent Collection Due Process
Hearing for the reasons stated on the form and tell them when you are available. The further
out you can schedule this, the better for you provided they stop the levy. The longer this
takes the better for you because the collection will be suspended during that time. These can
be expected to take as much as 12 – 20 months before being reinstated under better terms.
You only want to discuss scheduling on the phone, do not discuss the liability or taxes or
anything except scheduling of the hearing.
The agent will ask you to complete Form 656 “Offer-in-Compromise” with addendum
Forms 433-A and 433-B before the meeting. You can do that now as these forms on are
online as well. These are just balance sheets showing that the collection is creating a
hardship and your Form 656 is based on “doubt as to collectibility”.

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 It will actually help your request when you have more taxes owned and more debts that
you cannot pay, showing that you are insolvent. However, remember that the determination
will be based upon your demographics as they pertain to where you live. For example, it's
better to owe $175,000 to the IRS than $50,000 in this situation. And it's better if you don't
have the ability to pay now or in the foreseeable future. But the IRS will make its
determination based upon the average income for people in your area. For example, if you're
living in Detroit, a decimated town with no job or income prospects, the IRS will more than
likely determine you are uncollectible. But if you are clearly uncollectible, same numbers, but
live in a place such as the Hamptons, you may not have any chance of being classified as
uncollectible just because the people that live in that area are high net worth people with high
incomes way above the national average. I know it's not fair but this is how they do it, so you
should understand.
The IRS might also return the money levied to you in about 3 – 5 weeks, sometimes
they don't, but usually they do.
If you believe the agent is just out of control, or that your request for a hearing is being
ignored, provided that you haven't already had one, then you can file Form 911 and ask for
the regional tax payer advocate's office to intervene and claim that you are not being treated
fairly. You can obtain that form online by searching for “IRS Form 911” and it's also in PDF
format.
Additionally, if you hire an attorney and have him pay an accountant to prepare your
tax returns under the retainer agreement, remember, under the retainer agreement, this will
protect you later. It is more expensive, but if you have not filed for a few years, such as more
than 3, there is a presumption of fraud (26 USC 6502) and you will want the protections of the
attorney-client privilege. What that means is that once you file after not having filed for many
years, the IRS will always audit you. The audit will be terminated in the first minute when you
attend and explain that the only information you can provide is what was filed in the returns
(“within the four corners” as they say) because the rest of the information is subject to the
attorney-client privilege and protected by the work-product rule. A reasonable amount to pay
an attorney for this is $900 – $1,500 and that is a lot of money, but it might help protect you
later. Don't just pay someone to prepare returns, pay the attorney and then have him pay the
return preparer out of the retainer and make sure that is part of the retainer agreement. You
have to read this to verify for yourself.
One last note, an IRS audit summons is governed by the Federal Rules of Civil
Procedure, specifically, Rule 27. You should read this. If you have a problem with the IRS,
such as continuous audit summonses or harassing phone calls after you have complied, you
can file a motion for protective order in the U.S. District Court or you can just send a copy to
the agent so that if he wants to push this into the district court, he will see that you are
prepared.

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 Aren’t you just really tired of being under surveillance and using tools of convenience
and believing that you have no choice but to give up your privacy so that the government,
deep state and other businesses can profit from it and use it for other nefarious purposes?
Anonymous Web Browsing
You probably won’t want to hear this, but if you are serious about privacy, you should
welcome the change. If you are not already using an Android, get yourself an Android phone
now. This hardware works best with the encryption software I’m about to introduce to you.
Orfox is built from the same source code as Tor Browser (which is built upon Firefox),
but with a few minor modifications to the privacy enhancing features to make them compatible
with Firefox for Android and the Android operating system. Orfox requires the Orbot
application for Android to connect to the Tor network, so you’ll want to install Orbot first, and
then Orfox. You can find the free downloads with the www.qwant.com or
www.duckduckgo.com search engines, and avoid the CIA’s “google” surveillance.
TOR is an acronym for “The Onion Router”, a metaphor describing how your Internet
connection is routed through many layers or servers to hide its I.P. (Internet Protocol)
address. This is much like hiding your phone number by entering *67 before you call
someone.
The TOR software protects you by bouncing your communications around a distributed
network of relays run by volunteers all around the world: it prevents somebody watching your
Internet connection from learning what sites you visit, it prevents the sites you visit from
learning your physical location, and it lets you access sites which are blocked.
Phone Calls
This covers web browsing, but you will probably want to make anonymous, encrypted
phone calls as well.
You will want to use open source software because it is always being developed by the
smartest people on the planet and they do it because they have a passion for it, and not
because it’s just a paycheck such as a corporate employee. Linphone is name of the open
source application. It is subject to peer review by anyone, at anytime. Ghost Call is the
service that provides this at no cost to its users, that’s right, the best privacy software is free!
Ghost Call does the call setup and manages your presence; of course TOR exits support
Transport Layer Security (TLS) and Session Initiation Protocol (SIP), so use TOR if you don't
want your public I.P. address exposed to Ghost Call. In other words, download Orbot and
Orfox first and use that software to visit the Ghost Call website at https://ghostcall.io/ You will
get your very own “Ghost Call” phone number as well.
Your calls are only encrypted with other Ghost Call users and you have the choice on
each call to authenticate (verify that your call is secured against any unknown third party).
Now that you have “ghosted” your smart phone, why not do the same to your desktop?
Desktop
Earlier in 2017, Microsoft’s top lawyer challenged the NSA over its virus known as
“WannaCry”, saying that problem was the agency’s creation because it built and stockpiled
such malware for its own use. Now WikiLeaks has revealed more government-created
malware and this one is a nasty piece of work.

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 Codenamed “Athena,” the spyware targets all version of Windows from Windows XP to
Windows 10, and was released in August 2015. It was created in part by a private New
Hampshire-based cyber security firm called Siege Technologies.
According to WikiLeaks, Athena allows whoever controls it to completely take over a
computer, steal data and send it to CIA servers, delete data and upload even more malicious
software.
“Once installed, the malware provides a beaconing capability (including configuration
and task handling), the memory loading/unloading of malicious payloads for specific tasks
and the delivery and retrieval of files to/from a specified directory on the target system. It
allows the operator to configure settings during runtime (while the implant is on target) to
customize it to an operation,” WikiLeaks said.
After reading this, I realized that Windows had zero encryption and in fact, was a
surveillance tool in itself. This is when I decided to escape from Windows and Microsoft
altogether. I had already stopped using the Microsoft Office Suite and replaced it with Open
Office, and now with the latest version, LibreOffice. I knew someday I would escape Windows,
but I had been procrastinating until I read this news.
After some careful research of many really good options, I decided that the best option
was Ubuntu, an end-user friendly version of Linux. I also decided I would add some speed
into the mix and replace my hard drive with a solid state drive (SSD). Installing a different
hard drive is optional, but if you replace your hard drive with a solid state drive (SSD), you will
gain about 30% more speed in accessing files and programs from the hard drive.
While it is an option at the time you choose your password during installation, using
Ubuntu means there is no need to encrypt the home folder. You already have
FullDiskEncryption (FDE), encrypting the home folder will just needlessly slow down your
computer. You will notice a substantial decline in performance by using this feature,
especially if you have an older processor without an AES-NI (pre-Sandy Bridge).
Ubuntu, as of September 2017, uses AES-256 (when XTS mode is in use, the key size
might be 512-bit, and later split into two 256-bit keys). But depending on your kernel build,
sector sizes, encrypted volume size, advanced modes of operation supported by Ubuntu
(ESSIV, XTS, and LRW) can vary, and with it the actual security of such full-disk encryption.
You can trust the FDE will protect your computer, provided you have a good password
and follow a protocol to change and protect it on a regular basis. If not, then why bother with
FDE? Just encrypt the home folder or don’t encrypt at all. The encryption done by Ubuntu
(aes-xts-plain64) is ridiculously secure; it can withstand all threats up to the level of state
agencies, as long as the password is strong. There is no benefit to separately encrypting the
home folder for security. If your FDE password is somehow compromised (unlikely), then the
same could be done to your home folder. If someone is torturing you to get your FDE
password, believe that he will also torture you again to get your home folder.
Ubuntu is installed with Firefox but I would suggest using the Brave add-on or Slimjet
for additional browsing security. I also switched from using Skype to qTox and from Youtube
and Facebook to www.gab.ai, minds.com, steemit.com and bitube.com for blogging and
social networking.
The only other recommendation I could make to you is to subscribe to a virtual private
network (VPN). It’s not really essential, but it is inexpensive (about $5 a month) and does add
just another layer of security and privacy.

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Page 20 of 151
 BLOCKCHAIN
TAX IMMUNITY
TRUST

Why do you believe that because the IRS changed its “1031 exchange” definition from
“property” to “real property”, that it somehow imposes a new tax on crypto-graphic currency?
There is no tax on crypto-graphic currency, assets, coins or tokens. However, the centralized
exchanges have now been forced to help create the illusion that you owe taxes by producing
income reports, such as the “1099”. Your accountant will dutifully include these reports in
your tax return, and that is when the “income” becomes taxable, but only because you said
under penalties of perjury that the income was taxable. What is being taxed is your gain in
the dollar and the presumption is that the 1099 shows you had taxable gains. Even though
the burden of proof is now in the IRS, you are reporting under penalties of perjury. Maybe
you figured out how to report a loss because maybe you had a net loss from “cryptos”.
Wouldn’t you rather avoid the issue altogether, get your money when you want it, and then
deal with any tax issues on terms that you normally do, so any gains have nothing to do with
cryptos? How about deferring any taxes, even if you do have a taxable gain, into the future
for as long as you want?

The exchange is already acting as a trustee by virtue of it holding your private keys.
Let me show you what I’ve been doing for 25 years and how we can use this trust association
to maintain the correct accounting and avoid any tax situation. I created a special purpose
trust in order to solve and prevent any tax problem for those who are still using the centralized
crypto-currency exchanges, such as Coinbase. There is no reason to incur any tax liability
when using these exchanges; however, it appears that most people don’t understand how to
set up their accounts and simply do the same thing they are used to doing with banking. The
purpose of this trust is to provide a traditional solution to what might be a new tax situation.

Each blockchain based coin, token or asset can operate in a trust relationship because
the nature of the blockchain is an association of computing devices networked together and
managed by people. Changes to the manner in which the blockchain operates cannot be
changed by a single beneficiary and there must be a consensus with network managers for
any changes to take place. The blockchain is already performing the same functions as a
trustee because it is a distributed ledger, giving access to the ledger in a real-time basis. This
is the perfect organization to function as a trustee; likewise, no law requires anyone using
these coins or tokens to do so in his individual capacity. First, control over the asset is
already given up because of the system architecture of the blockchain. Second, ownership is
already maintained by virtue of the exchange owning your private keys. The public and
private keys operate like trust certificates.

You can do your own research, but I just wanted to make this point. Some of you
incorrectly believe that “gains” between cryptos are taxable. Let’s use the example of moving
“your” Bitcoin from Coinbase to another centralized exchange such as Kraken. And let’s say
you funded your Coinbase account with $1,000 of after-tax currency (USD). Assuming your
principal doubled in value for example, you send $2,000 worth of Bitcoin to your Kraken
exchange account to buy Litecoin (or even more Bitcoin for that matter). Now, let’s act as if
there is a taxable gain here and we arrive at the end of the tax period with this gain. The
owner of the private key is the de facto trustee, being that you are the grantor who funded the
account, and it is the trustee in this situation which has realized the gain. If it is in fact
taxable, then the trustee must report to the IRS and remit the proper tax payment.
Remember, this is before going back into fiat dollars. This is a very easy test to demonstrate
why exchanges between crypto-graphic currencies, tokens or other assets is not taxable.
Let’s say you, the grantor in this example, then move your $2,000 worth of Bitcoin back into
your dollar account at the bank. There is a presumption of an income tax liability. If the
correct accounting were reported, you would have a tax on your gain of $1,000; likewise, if
your $1,000 was reduced by 50% because the dollar price of Bitcoin fell, you would be able to
claim a loss and maybe even qualify for a deduction, in dollars. Why? Because you received
a disbursement from the trust, which is taxable. This is nothing new, like I’ve explained
before, the tax has always been there since we began taxing profits and gains, there is no
new law needed to collect taxes from crypto-currencies. The tax falls on gains earned from
buying low in dollars and selling high in dollars.

Let’s talk details. The trust relationship I set up here is irrevocable. It is a trust
relationship that is not incorporated and does not derive its existence or function from any
statute or legislative enactment. It is simply a business trust organization that is managed for
the benefit of one or more beneficiaries and for the purpose of earning profit and gain. By
definition, this is a structure that is not merely exempt from taxation, it is immune.

The trust is formed inside of the operating agreement written for a limited liability
company (LLC). The LLC is the beneficiary and its members act as the trustor or creator of
the trust when they contribute or exchange their fiat currency for a blockchain based asset.

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The trust is introduced into the operating agreement as a clause that defines a specific class
of property to be managed by the LLC and the manner in which it will be managed. The
operating agreement must be amended to include the specific terms and include the
Blockchain Tax Immunity Trust into the agreement. This has the same force and effect as
enacting a law. The trust provision in the LLC becomes the law of the business and creates
two layers of protection, one given by the trust relationship and another given by the manner
in which a properly written operating agreement provides protection against charging orders
(writs of attachment), tax deferment and pass through attributes for property rights.

The trust does not require any tax identification number (EIN, etc.) and does not
require any bank account. You continue using your same exchange accounts and with this
structure, you open a new bank account for the LLC to act as beneficiary for the trust. You
then fund this account to purchase crypto-graphic coins, tokens and other assets, but
maintain those assets as a managing member for the beneficiary. You can even move your
crypto-graphic holdings from your personal wallet to the beneficiary’s wallet. Any tax reports,
such as a 1099, are then made in the name of the beneficiary with its tax number. Because
the beneficiary is a tax deferred structure, neither the IRS nor any state look to it for the
payment of a tax. And because the intent of the trust is to make a profit from this activity, the
trustee is not subject to any tax either. Can you imagine the IRS trying to audit the
blockchain? It’s already audited, every moment, in real time. Can you imagine the IRS
expecting the blockchain to file a tax return? It’s not subject to any taxes, at the very least,
because it is the trustee for an irrevocable business trust organized for the benefit of
beneficiaries for the purpose of earning profits and gains. By definition, it’s not taxable. The
only situation in which a managing member would cause a taxable event, would be if he
reached a consensus with the other managing members under the operating agreement, to
disburse fiat currency from the beneficiary to himself, in his personal, individual capacity. Of
course this is entirely unnecessary and can easily be avoided.

If you already have an LLC that you can or are using with an exchange, I will need to
see a copy so that I can make the appropriate amendments. If you don’t have an LLC and
want to easily avoid a taxing situation with an exchange, I can register an LLC for you in the
appropriate jurisdiction. If you’re in California, I prefer to avoid that state if at all possible.
Once we have your new LLC in place, I will provide you the documents you need in order to
open its bank account so we can then include the property classification and trust clause, and
then I will be able to provide you with a completed Blockchain Tax Immunity Trust.

To order your Blockchain Tax Immunity Trust, send an image of your check payment, or
check information including the name of the account holder, check number, amount of $275,
bank account and routing numbers from the bottom of the check, to my secure email account
[email protected] or via Skype to my ID “johnjaysingleton”. The payee is
“Georgia Capital, LLC”. Be sure to obtain confirmation from me before sending via Skype so
that we know you have the correct one. If you also need a limited liability company because
you are not already using one, include an additional $497 plus state fees with the amount in
your check. If you don’t know your state fees, just ask via email or Skype.

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HOW TO PREVENT A WAGE GARNISHMENT

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 It is very simple to block a wage levy using the same legal process as any creditor or
debt collector would use to impose a wage levy against you. Yes, it's the same process. It
works in the fifty states because of the Consumer Credit Protection Act (CCPA). But let's first
get an understanding of how this make very good sense in terms of your money and your
cash flow and your reduction of risk to creditors (i.e. being sued and levied).
Imagine what is must have been like when someone first proposed that cutting your
skin to allow blood to drain was a cure to sickness. This was known as bloodletting and was
practiced as late as the eighteenth century. Imagine the reaction of people when a procedure
known as surgery was first proposed. It must have been horrifying, since at that time most
people did not even understand basic anatomy.
Now imagine the reaction of the first clients of attorneys offering asset protection when
they were advised that in order to protect their home, business or other wealth; that they
would need to transfer its ownership into a corporation or a trust. Of course this is now
commonly understood by many people seeking to protect things they own and have worked
hard to acquire. Did you know that virtually anything that can be sold or assigned can be
protected by traditional, standard asset protection and estate planning strategies? The only
exception to this has been employment income or income from self-employment sources.
The purpose of this text is to help you get better use of your cash, or the time value of
money and part of that means limiting or eliminating your risk to debt and debt collectors.
What is the Time Value of Money?
The most important fact to remember about debt is that the longer the borrower has the
use of the money borrowed, the more valuable it is to him and the less valuable it is to the
lender. As I explained before, this is the primary reason why the news helps the banks blame
the Comptroller regarding the drastic increase in monthly payments for consumer credit
accounts. The increase helps the banks offset the lost value due to inflation, which by the
way, they create.
If you are not mathematically inclined, just follow the key points of the following
explanation. It demonstrates the time value of money in terms of interest which can be
earned over time. Keep in mind that “interest” can originate from many sources such as a
return on an investment you made or a stated interest rate from a loan you made or which a
bank might pay you for using your money in a timed deposit.

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 The term “present value” means how much you have now, and the “future value” is
how much what you have now grows to when compounded at a given rate. The following
illustration is an example of a $100 that pays you 10% interest annually for two years.
The Present Value = $100
Future Value = $121
FV= PV (1 + i )^N
121 = 10(1 + .10) ^2
FV = $121 PV = $10
i = 10% N= 2
Here is another example. What is the future value of $34 in 5 years if the interest rate
is 5%?
FV= PV ( 1 + i )^N
FV= $ 34 ( 1+ .05 ) 5
FV= $ 34 (1.2762815)
FV= $43.39
You can go backwards too. I will give you $1000 in 5 years. How much money should
you give me now to make it fair to me? You think a good interest rate would be 6% (You just
made that number up).
FV= PV ( 1 + i )^N
$1000 = PV ( 1 + .06) 5
$1000 = PV (1.338)
$1000 / 1.338 = PV
$ 747.38 = PV
You give me $747.38 today and in five years I'll give you $1000. Is this a good deal?
You will get 6% interest on your money. It’s a good deal unless you can deposit that same
amount in another deal and earn more interest.
Reference
McCracken, M. E. (2005). The time value of money. Retrieved February 1 st 2006 from
http://teachmefinance.com/timevalueofmoney.html
Suppose your brother or sister owed you $500. Would you rather have this money
repaid to you right away, in one payment, or spread out over a year in four installment
payments? Would it make a difference either way?
According to a concept that economists call the time value of money, you would
probably be better off getting your money right away, in one payment. You could invest this
money and earn interest on it or you could use this money to pay off all or part of a loan.
There are a million things you could do with this money. The time value of money refers to
the fact that a dollar in hand today is worth more than a dollar promised at some future time.
But how can that be? A dollar is a dollar, isn't it? Yes, but a dollar in hand today can
be invested in an interest-bearing account that would grow in value over time. It could also be
invested as a down payment on an asset which can pay you every month. This explains in
part why the value of money is related to time.

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Opportunity Cost
The time value of money is related to another concept called opportunity cost. The
cost of any decision includes the cost of the best forgone opportunity. If you pay $10.00 for a
movie ticket, your cost of attending the movie is not just the ticket price, but also the time and
cost of what else you might have enjoyed doing instead of the movie. Applying this concept
to the $500 owed to you, you see that getting the money in installments will saddle you with
opportunity cost. By taking the money over time, you lose the interest on your investment or
any other use for the initial $500, such as spending it on something you would have enjoyed
more.
The trade-off between money now and money later depends on, among other
things, the rate of interest you can earn by investing.
Process:
First, consider future value. Future value (FV) refers to the amount of money to which
an investment will grow over a finite period of time at a given interest rate. Put another way,
future value is the cash value of an investment at a particular time in the future. Start by
considering the simplest case, a single period investment.
Investing For a Single Period:
Suppose you invest $100 in a savings account that pays 10 percent interest per year.
How much will you have in one year? You will have $110. This $110 is equal to your original
principal of $100 plus $10 in interest. We say that $110 is the future value of $100 invested
for one year at 10 percent, meaning that $100 today is worth $110 in one year, given that the
interest rate is 10 percent.
In general, if you invest for one period at an interest rate r, your investment will grow to
(1 + r) per dollar invested. In our example, r is 10 percent, so your investment grows to 1
+ .10 = 1.10 dollars per dollar invested. You invested $100 in this case, so you ended up with
$100 x 1.10 = $110.
Investing For More Than One Period:
Consider your $100 investment that has now grown to $110. If you keep that money in
the bank, what will you have after two years, assuming the interest rate remains the same?
You will earn $110 x .10 = $11 in interest after the second year, making a total of $100 + $11 =
$121. This $121 is the future value of $100 in two years at 10 percent. Another way of
looking at it is that one year from now; you are effectively investing $110 at 10 percent for a
year. This is a single period problem, so you will end up with $1.10 for every dollar invested,
or $110 x 1.1 = $121 total.
This $121 has four parts.
The first part is the first $100 original principal.
The second part is the $10 in interest you earned in the first year.
The third part, is the other $10 you earn in the second year, for a total of $120.
The fourth part is $1 which is interest you earned in the second year on the interest paid in
the first year: ($10 x .10 = $1 ).
The process of leaving the initial investment plus any accumulated interest in a bank
for more than one period is reinvesting the interest. This process is called compounding.

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Compounding the interest means earning interest on interest so we call the result compound
interest. With simple interest, the interest is not reinvested, so interest is earned each period
is on the original principal only.
How do you benefit if your total monthly payment on all of your credit cards is $600 on
a collective balance of $55,000? You are spending the $600 now, losing the time value of
that money, and conveying that benefit to the creditor. What could you do with that $600 and
what could you do with twelve of those payments ($7,200) in one year? What could you do
with the next 18 months of those payments? What if you had $25,000 in cash to use in a
settlement on the entire balance? What could you do what that money if instead of paying
creditors, you invested it and used the return for something that would improve your financial
position?
This is not to advocate something which would be considered illegal by any
measurement. In fact, this is a standard practice in business today. If it was your original
intent to pay what your creditors wanted, wouldn’t you be better able to do this if you were first
in a better financial position? Of course! Why would anyone want to try and pay creditors
from a position that depletes his savings, compels borrowing from family and friends or places
them further into debt, especially against their home? It makes no sense. Creditors will never
tell you this, but if you have the ability to place yourself into a better financial position and then
make payment arrangements with creditors, you will not only serve yourself and your family
first, you will be better able to return the money you borrowed and do it in a way that is
mutually beneficial to the both of you. After gaining an understanding of these strategies you
will realize that you have the final say about whether or not you will pay anything. This is a
very powerful tool and once you have it in place, you will be free to make this decision for
yourself.

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 Step-by-step of
How to Prevent Wage Garnishments

A wage garnishment is an order from a court requiring an employer to pay a certain

percentage of an employee’s (judgment debtor) income to the judgment creditor. The
Consumer Credit Protection Act substantially limits the amount that can be garnished based
on the employee’s ability to pay, or income level. The less you make, the less they can take.
You can remove any creditor’s ability to garnish your paycheck by occupying that first
judgment lien position. This strategy will prevent the next judgment lien creditor from
garnishing your wages. I'll have to repeat this, you can block wage garnishments by creating
a judgment lien and wage garnishment before any other judgment lien creditor. The
Consumer Credit Protection Act then requires the second judgment lien creditor to wait until
the first writ of garnishment expires. And because you would control this garnishment, and
never have to serve it on your employer, the pending writ would block everyone else except
the IRS, state tax, DOE or child support/alimony. I'll explain more of the detail shortly.
The easiest way to do this is in small claims court. You will need a friend who doesn't
care what you are doing and trusts you. He will be used to obtain a judgment against you,
while you control the judgment lien, it is only his name that is being used to create the record.
Get a copy of your local small claims court's forms to file a small claims lawsuit and
make the claim for under the limit for small claims. For example, if your court only allows
$5,000 claims and under, make yours for about $4,400 or $4,415. Make the claim, not for
“breach of contract”, but “open account” or “stated account”. Stated account is the easiest to
make, and even though you won't have to prove anything, it requires the least amount of
documentation. The way you avoid having to prove anything is by simply filing the case in
your court and getting a case number. A couple of weeks later, you (the defendant) should file
a written answer admitting the allegations in the complaint. The small claims forms usually
have a form for this as well. However, do not ask for default judgment by failing to answer.
It's better if you file a written answer admitting the claim in the complaint. This way you avoid
having to get a process server to serve it on yourself. A couple of weeks after that, have your
friend file a motion for summary judgment, On the motion, you simply have to say that
“...there are no genuine issues of material fact in dispute and that the plaintiff is entitled to
judgment as a matter of law.”
You don't need a memorandum of law, and in most courts, you will not need any
supporting affidavit from your friendly plaintiff. However, it's better if your friendly plaintiff
includes an affidavit stating that the defendant (you) admits owing the amount claimed, or
some version of that within the affidavit. Sometimes you will need a hearing, and sometimes
not, either way, your friend should not, but your friend should be willing to attend the hearing,
where you do not attend, and get the judgment. He will get the judgment simply because you,
the defendant, failed to appear or respond or object. If the judge asks any questions about
the case, just restate what's in the affidavit. When you ask for summary judgment, you don't

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have to prove anything. If you ask for default judgment, a prove up hearing with evidence is
required (even though the courts rarely follow this rule for attorneys and bankers).
The next step is to complete the forms necessary to ask the clerk of court for a writ of
garnishment. These are usually not reviewed by any judge, so the clerk will just check to see
that everything is completed and then issue a writ of garnishment. Sometimes it requires a
judge's intervention, but I'm speaking generally, you will just have to follow your county court's
rules and procedures. Once you obtain the writ, you will not need to serve it on your
employer because the fact that the writ is issued, will block anyone else asking for the writ
and this will protect your wages from “unfriendly” creditors who want to garnish your wages.
There are exceptions as explained after this section.
Be sure to track the time line in case the writ expires so that you can renew it as you
need to. You will not need the writ until it looks like another creditor is pushing a case
forward. So you can hold the judgment lien in place and only get the writ when necessary to
block other creditors. Just be sure to track expiration dates. Sometimes there are expiration
dates for serving it on the employer, even though you won't need to do that, and sometimes
there are expiration dates for how long the writ can be used to collect, such as in New Jersey.
If you want to actually collect the money from your wages, you will need to set up an LLC and
a bank account using the friendly plaintiff's name so that the money can be deposited in his
name, but actually into your LLC account. You would register an LLC in your state such as
“XYZ Company, LLC” and then add a “doing business as” or “DBA” or fictitious name using
the name of the plaintiff. Anyone can be the signer on the LLC bank account, you decide.
There will be no tax consequences as this is after-tax money and the LLC is a tax flow-
through, so don't report anything for the LLC.
This is an overview of the process:
● Have a friend become the plaintiff in a small claim action naming you as the defendant.
He or she should have a different last name than you.
● Get the small claims packet of forms from your local county court.
● Make the claim for just under the limit, usually this is around $3,000, sometimes
$15,000.
● The cause of action should be “stated account” or “open account” or a version of this,
as these require the least amount of records and proof.
● You might have to include a demand letter to the defendant, demanding the amount be
paid by a certain date. Then file the case after that date and include a copy of this letter to
support your claim.
● Once you get a case number, the defendant should answer, admitting the allegations
generally.
● The plaintiff should then file a motion for summary judgment, stating that there are no
genuine issues of material fact in dispute and that the plaintiff is entitled to judgment as a
matter of law.
● Schedule a hearing in which only the plaintiff appears.
● The plaintiff will obtain a judgment simply because the defendant did not appear.
● Once you have the judgment, record it in the county recorder's office and then get the
wage garnishment forms from the clerk of court.

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● File an application for writ of garnishment whenever you believe you are at risk of
another unfriendly creditor trying to collect against your wages, or just get the writ and keep is
pending on a regular basis.
● You don't need to serve your employer with the writ because once the clerk issues the
writ, it will block anyone else attempting to obtain a writ of garnishment as long as your first
writ has not expired. So you will have to be a little diligent to be sure it's always in place when
necessary.
● There may be some adjustments you need to make during the process, so be patient
and just consistently file what's necessary to get the end result.
● You can also have your friend, the friendly plaintiff, sign a release of judgment in
advance, and just keep it in a safe place, so that the defendant can file it at any time it he
wants to get out from under the judgment or garnishment. This way you won't have to contact
the plaintiff frequently.
This process can be used to protect equity in real estate, but I recommend other
measures. It is suggested to be use only for preventing a wage garnishment. If you're asking
whether or not this is legal, I will ask you this question, is it legal to borrow money from your
friend? And is it legal for your friend, as security, to obtain a judgment lien in advance before
you pay him back? If yo answered yes to both of these questions, then your question is
answered.

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More Detail about how the Statute Works
A wage garnishment is any legal or equitable procedure through which some portion of
a person's earnings is required to be withheld by an employer for the payment of a debt. Most
garnishments are made by court order. Other types of legal or equitable procedures include
IRS or state tax collection agency levies for unpaid taxes and federal agency administrative
garnishments for non-tax debts owed the federal government. Wage garnishments do not
include voluntary wage assignments - that is, situations in which employees voluntarily agree
that their employers may turn over some specified amount of their earnings to a creditor or
creditors.
Which Federal law regulates wage garnishment?
Title III of the Consumer Credit Protection Act limits the amount of an employee's
earnings that may be garnished and protects an employee from being fired if pay is garnished
for only one debt. Title III is administered by the Wage and Hour Division of the Department of
Labor's Employment Standards Administration. The Wage and Hour Division has no other
authority with regard to garnishments. Questions over issues other than the amount being
garnished or termination should be referred to the court or agency initiating the withholding
action. For example, questions regarding the priority given to certain garnishments over
others are not matters covered by Title III and may be referred to the court or agency initiating
the garnishment action.
To whom does the law apply?
The law protects everyone receiving personal earnings, i.e., wages, salaries,
commissions, bonuses, or other income - including earnings from a pension or retirement
program. Tips are generally not considered earnings for the purposes of the wage
garnishment law. The law applies in all 50 states, the District of Columbia, and all U.S.
territories and possessions.
What is the protection against discharge when wages are garnished?
The CCPA prohibits an employer from firing an employee whose earnings are
subject to garnishment for any one debt, regardless of the number of levies made or
proceedings brought to collect that debt, because of the single garnishment. The Act does not
prohibit discharge because an employee's earnings are separately garnished for two or more
debts.
What are the restrictions on wage garnishment?
The amount of pay subject to garnishment is based on an employee's "disposable
earnings," which is the amount left after legally required deductions are made. Examples of
such deductions include federal, state, and local taxes, the employee's share of State
Unemployment Insurance and Social Security. It also includes withholdings for employee
retirement systems required by law. Deductions not required by law - such as those for
voluntary wage assignments, union dues, health and life insurance, contributions to charitable
causes, purchases of savings bonds, retirement plan contributions (except those required by
law) and payments to employers for payroll advances or purchases of merchandise - usually
may not be subtracted from gross earnings when calculating disposable earnings under the
CCPA.

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 The law sets the maximum amount that may be garnished in any workweek or pay
period, regardless of the number of garnishment orders received by the employer. For
ordinary garnishments (i.e., those not for support, bankruptcy, or any state or federal tax), the
weekly amount may not exceed the lesser of two figures: 25 percent of the employee's
disposable earnings, or the amount by which an employee's disposable earnings are greater
than 30 times the federal minimum wage (currently $5.15 an hour). For illustration, if the pay
period is weekly and disposable earnings are $154.50 ($5.15 X 30) or less, there can be no
garnishment. If disposable earnings are more than $154.50 but less than $206.00 ($5.15 X
40), the amount above $154.50 can be garnished. A maximum of 25 percent can be
garnished, if disposable income earnings are $206.00 or more. When pay periods cover more
than one week, multiples of the weekly restrictions must be used to calculate the maximum
amounts that may be garnished. The table and examples at the end of this fact sheet illustrate
these amounts.
What about child support and alimony?
Specific restrictions apply to court orders for child support or alimony. The garnishment
law allows up to 50 percent of a worker's disposable earnings to be garnished for these
purposes if the worker is supporting another spouse or child, or up to 60 percent if the worker
is not. An additional 5 percent may be garnished for support payments more than l2 weeks in
arrears.
Are there any exceptions to the law?
The wage garnishment law specifies that the garnishment restrictions do not apply to
certain bankruptcy court orders, or to debts due for federal or state taxes. If a state wage
garnishment law differs from the CCPA, the law resulting in the smaller garnishment must be
observed. You may be able to claim one or more exemptions and avoid paying the judgment
or at least a portion of it. Bank account funds that are from: Veterans Benefits, Child Support
Payments, U.S. Government Pension, Unemployment Compensation, Supplemental Security
Income (SSI), Temporary Assistance for Needy Families, Certain funds in a joint or
community account and Other public assistance or Income allowed by state law, are exempt
under the law.
In order to protect your right to claim these exemptions you must, within 28 days from
the date on the Writ of Garnishment, deliver to the court clerk and mail a copy to the plaintiff,
the completed Exemption Claim Form. The problem with claiming an exemption is that you
allow second and third judgment creditors to hold a garnishment position in addition to the
first creditor.
What about non-tax debts owed Federal Agencies?
The Debt Collection Improvement Act authorizes federal agencies or collection
agencies under contract with them to garnish up to 15% of disposable earnings to repay
defaulted debts owed the U.S. Government. The Higher Education Act authorizes the
Department of Education's guaranty agencies to garnish up to 10% of disposable earnings to
repay defaulted federal student loans. Such withholding is also subject to the provisions of the
federal wage garnishment law, but not state garnishment laws. Unless the total of all
garnishments exceeds 25% of disposable earnings, questions regarding such garnishments
should be referred to the agency initiating the withholding action.

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 Why don't attorneys advise their clients about the Consumer Credit
Protection Act? Because you don't need an attorney to get the financial
protections of this law, just be aware of the law and act accordingly, you
don't need an attorney if your plan is to pay a very reduced amount
without any tax consequences.
A writ of garnishment is one method a creditor might use to recover unpaid debt.
Federal law exempts from garnishment 75% of disposable earnings per week, or an
amount up to thirty times the federal minimum hourly wage (currently $5.15), whichever is
greater. Some states still have wage garnishment laws in place; however, when the federal
law provides a larger exemption than the state law, the federal law supersedes the state law.
The following is a description of the limits imposed against the process of wage
garnishments from judgment creditors such as banks, debt collectors and private parties.
The summary of it is that a person will pay far less money if he never offers a
settlement, joins a consolidation program or files bankruptcy (if it’s available at all); but
instead, simply defends against the collection process using myfreedomnow.us®
strategies. The same is true for the www.myfreedomnow.us® for people who are current or
have no collection problems at the time they begin the program.
Attorneys have certain obligations to their clients, the ethical and legal obligation to
explain the facts in this memorandum. Recommending to a client that filing bankruptcy
will best serve his interests is irresponsible and possibly negligent. The numbers speak
for themselves. The same is true for recommending a settlement, when a client is certain to
pay far less money simply by defending the collection, forcing the plaintiff to meet the burden
of proof and subjecting himself to the possibility of a wage garnishment.
You should work with attorneys who understand these facts as they relate to the CCPA.
If any attorneys in our database regularly refer our subscribers to consolidation, settlement or
bankruptcy, we will discontinue doing business with them. We will also provide this article for
their review and the review of their clients (our subscribers).
These garnishment restrictions are imposed under the Consumer Credit Protection Act.
The law sets the maximum amount that may be garnished in any workweek or
pay period, regardless of the number of garnishment orders received by the employer.

MAXIMUM GARNISHMENT OF DISPOSABLE (after tax withholding)

EARNINGS UNDER NORMAL CIRCUMSTANCES
FOR THE $5.15 MINIMUM WAGE

Weekly Biweekly Semimonthly Monthly

$154.50 or less: $309.00 or less: $334.75 or less: $669.50 or less:

NONE NONE NONE NONE

More than More than More than $334.75 More than

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 $154.50 but less $309.00 but less $669.50 but less
but less than
than $206.00: than $412.00: than $892.67:
$446.33: Amount
Amount ABOVE Amount ABOVE Amount ABOVE
ABOVE $334.75
$154.50 $309.00 $669.50

$206.00 or more: $412.00 or more: $446.33 or more: $892.67 or more:

MAXIMUM 25% MAXIMUM 25% MAXIMUM 25% MAXIMUM 25%

These restrictions do not apply to garnishments for child and/or spousal support,
bankruptcy, or actions to recover state or federal taxes. This information was obtained from
the United States Department of Labor.
Every single method of resolving collection problems, including bankruptcy,
settlement, and consolidation relies on avoiding lawsuits and avoiding debating the
merits of the disputed credit account. Likewise, each of these methods are subject to
being severely disadvantaged when there is no incentive for creditors to negotiate or when
the debtor has property that can be liquidated and taken under court order or when laws
change to bring about these situations.
Www.myfreedomnow.us® relies exclusively on the anticipation of a lawsuit as
the most effective and positive means of reducing your debt problems to nearly none
at all and permanently.
It does not rely on the whims of a trustee in bankruptcy, unfair legislation written by the
banking industry or the negotiating abilities of a settlement agent or the incompetence of a
consolidation service. This program relies on the unchanging and unalterable process of
debating each collection case on its merits, testing the evidence and forcing the creditor and
collector to meet the burden of proof.
Each citizen has the right to use the court system to his advantage but it was not until
this program was created that anyone really had equal access to the courts as the creditors
and debt collectors. Before www.myfreedomnow.us ®, the costs for access to the courts were
prohibitive, costing more than the debts themselves. This program creates a new market for
attorneys who want to defend consumers against credit collections while also providing their
clients with very affordable and competent representation in the course of leveraging the
strategies of myfreedomnow.us® to the client’s best interests.
Imagine a person with $40,000 (5 credit accounts) in credit card or unsecured debt.
His payments might have doubled in recent months and his interest rate is much higher,
maybe 20% - 30%. No matter what his payments are, or that is, what the creditor wants
every month, there is no law imposing any penalty on him if he simply stops making those
payments. If he does nothing, and the worst of the worst case scenarios happens, all five
creditors sue him and get a judgment within 18 months of the first nonpayment. This time
period is normal, but the chance that they all would sue him at once is highly unlikely, either
way...

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 The state statutes impose a legal interest rate attached to judgments of this sort
(usually where the contracted interest rate exceeds the state's legal rate) and that rate is not
subject to the "unlimited" rate allowed in the credit agreements these days. I can give you a
table, but it typically ranges from 5% to 12% depending on the state of residence.
If the person did nothing, and these judgments were obtained and the first judgment
creditor obtained a writ of garnishment, and he did not object to the amount, so that first
creditor would get the maximum of 25% after the CCPA exempt amount (Table of Limits) and
after tax withhold this would preclude all four other creditors from taking any part of his
paycheck.
So the monthly payments he was making 18 months ago, about $600 to $800, at an
interest rate of about 25%, could now be $200 through the wage garnishment, at a rate of
12% or under. That's the refinance, and now he is paying only one creditor at vastly lower
rates and lower monthly amounts. He is paying based on his ability to pay, and not based on
how much the world says he owes, thanks to the CCPA.
We should understand that to have the use of another's money for a longer
period of time at a lower rate is worth much more to the borrower, in this case our
customer, than the creditor.

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 HOW TO REMOVE AN IRS LIEN AND
BANKRUPTCY FROM YOUR CREDIT HISTORY

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 Most items on your credit file are reported by the creditor or debt collector who is
making the claim. But not everything appearing on your credit file is reported the same way.
A notice of tax lien, for example, is first recorded in your county recorder's office (the state
court records system). The county does not report these items to anyone's credit file, so if
you don't make this assumption, or if you ask the clerk of court or the county recorder what it
is reporting to individual credit reports, you will discover that it's not the county.
Lexis Nexis is a third party credit reporting agency that collects public records data and
reports some of it to personal credit files. It's legal name is LexisNexis Risk & Analytics
Group Inc. and I guess it must be profitable or fit its business model to collect this data and
report it to your file. Maybe it's selling some type of risk management service, but do we really
care about that? No. The only thing that matters here is that this reporting “agency” made a
report to your credit file without a permissible purpose. This means that because you didn't
consent to this company making reports to your credit file and it never gave you credit, the
credit item can be removed under the provisions and penalties of the Fair Credit Reporting
Act. The fine for refusing to remove the item is $1,000, plus actual damages.
You may also be able to express additional causes of action for the unauthorized sale
or publication of consumer reports that pertain to yourself. It's worth noting, most of us don't
care, we just want the item removed and every once in a while, some of us can get a check
for $1,000. If you can show actual damages and plead them in a lawsuit properly, you may
expect a larger settlement offer, probably never going to trial. The scope of this section is
limited only to removing unwanted items from your credit file. The IRS Notice of Lien is a
great example, but you should be able to remove anything reported by LexisNexis under the
same conditions (you didn't consent to the report). These may include bankruptcies and
student loan claims (those guaranteed by the Department of Education).
While you can remove the item from your credit file, it may still be published in the
original system of records, such as the county recorder's office or with the Secretary of State.
The key to this process is understanding how to “plead” a case under the Fair Credit
Reporting Act. You first have to request a verification of the item and demand disclosure of
where LexisNexis obtained your consent to report this item. If you don't get the response, or
if the item is not removed, you will need to send another letter and ask for a “re-verification”.
If you don't take this second step, no court will hear your case if you have to sue.

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Example (first request):
Your name
address
City State ZIP
LexisNexis
Consumer Center
P.O. Box 105108
Atlanta, GA 30348
[Date]
RE Dispute for credit item
My name is _____________ and I’ve included proof of my name using a photocopy of
a government issued identification, some information may have been redacted. You can call
me to verify at _____________.
LexisNexis reported the following item to my credit file without a permissible purpose:

______________________________________________________________

If you disagree, please provide evidence of my consent or permission to allow you to

report this item and please express and disclose your interests in this matter. Please respond
within the time limits set forth under the Fair Credit Reporting Act. Please be advised that if
you are in violation of this statute and fail to correct the matter, I intend to sue you for
penalties and actual damages as set forth under this statute.
Sincerely,

[name]

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Example (second requesting re-verification):
Your name
address
City State ZIP
LexisNexis
Consumer Center
P.O. Box 105108
Atlanta, GA 30348
[Date]
RE Dispute for credit item
My name is _____________ and I’ve included proof of my name using a photocopy of
a government issued identification, some information may have been redacted. You can call
me to verify at _____________. I previously requested verification and disputed the following
item for your lack of permissible purpose in reporting it. Your response was evasive and non-
responsive and I am requesting a re-verification and that you answer my questions. If you fail
to answer my questions, your response will be legally insufficient and I intend to sue you for
the violations and damages.
Again, LexisNexis reported the following item to my credit file without a permissible
purpose:

______________________________________________________________

If you disagree, please provide evidence of my consent or permission to allow you to

report this item and please express and disclose your interests in this matter. Please respond
within the time limits set forth under the Fair Credit Reporting Act. Please be advised that if
you are in violation of this statute and fail to correct the matter, I intend to sue you for
penalties and actual damages as set forth under this statute.
Sincerely,

[name]

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Going to Court
The “pleading” is the list of allegations that you have to include in your lawsuit in order
for the court to accept jurisdiction to hear the complaint. If the attorney for the defendant,
LexisNexis in this case, believes that he can argue that your allegations were not legally
sufficient, he might file a motion to dismiss. He may file it anyway, but generally, he will file it
if he thinks the judge will agree. Remember that exhibits are part of the pleading, so
remember that you will need copies of the two letters you sent requesting verification and re-
verification.
You may want to review this for a better technical understanding:
http://www.gcjustice.com/artfcra.pdf and http://www.uclalawreview.org/fighting-unfair-credit-
reports-a-proposal-to-give-consumers-more-power-to-enforce-the-fair-credit-reporting-act-2/
along with the Federal Rules of Civil Procedure. Because the federal court system is public
record, you may want to visit your local clerk of court in the United States District Court in
your town.and get a copy of an FCRA complaint. It would name LexisNexis, Or, any of the
other credit reporting agencies, such as Equfax. You just want to see what the plaintiff
alleged in the original complaint. It will be especially helpful if you find an example pleading
where the defendant filed an answer, or ultimately had to pay under a settlement agreement
or lost the case with a judgment. A settlement agreement would not be part of the record, but
the court's order memorializing it would.
Your pleading will need to include the beginning section that states the name of the
plaintiff who is suing the name of the defendant.
It should then cite the statute 15 USC §1681 and possibly the exact paragraph that
was violated (most likely 1681s-29b)) as the jurisdictional basis along with 28 USC §1331.
You can read these sections for yourself online.
You should also allege your residential address and the business address of the
defendant for purposes of establishing venue.
The pleading requirements include a “plain statement of the case” and it would look
something like this: “The defendant reported the alleged item to the plaintiff's credit file without
a permissible purpose.”
And then you have the sections that includes all of the necessary allegations. Here is
an example of what it might look like:
Remember that you have a much greater chance of succeeding than most people
because most people sue for inaccuracies, where there are many gray areas. What you want
to do is sue for the reason that the defendant did not have permission, no permissible
purpose. Without evidence of your overt consent to reporting the item, it must be removed
and fines and damages imposed.

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 IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF GEORGIA
ATLANTA DIVISION
WILLIAM T. SMITH,
PLAINTIFF,
v. CASE NO. ______________
LEXISNEXIS,
DEFENDANT.
___________________________________/
COMPLAINT FOR VIOLATIONS OF THE FAIR CREDIT REPORTING ACT

Plaintiff William T. Smith alleges as follows:

The Parties

1. At all times herein after mentioned, plaintiff is and was a resident of Anytown,
Georgia.

2. Defendant, XYZ Incorporated, is a corporation incorporated under the laws of New

York and having a main office at 1234 East Any Street, New York NY 10012.

3. Defendant, XYZ Incorporated, is registered with the Georgia Secretary of State as a

Foreign Corporation doing business in Georgia and has designated a registered agent: ABC
Registred Agent, 1234 Any St, Atlanta, GA 30361.

Jurisdiction

4. The Court has jurisdiction over this action pursuant to 15 U.S.C. § 1681 et seq., the
“Fair Credit Reporting Act (FCRA) and 15 U.S.C. §§ 1692-1692p, the “Fair Debt Collection
Practices Act.”

Defendant’s Statutory Violations

5. The Defendant is reporting derogatory information about Plaintiff to one or more

consumer reporting agencies (credit bureaus) as defined by 15 U.S.C. § 1681a.

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 6. Plaintiff has disputed the accuracy of the derogatory information reported by the
Defendant to the Consumer Reporting Agency Experian on four separate occasions via
certified mail. See attachments.

7. Defendant has not responded to Plaintiff’s four letters of dispute by providing

evidence of the alleged debt to Plaintiff nor to the Consumer Reporting Agency Experian.

8. Defendant has not provided notice of this disputed matter to the credit bureaus and
is therefore in violation of 15 U.S.C. § 1681s-2 which requires this notice.

9. Defendant has failed to comply with 15 U.S.C. § 1692g in that it has not within 5
days of Plaintiff’s initial communication (nor at any other time) sent Plaintiff written
documentation of the amount of the debt, the name of the original creditor nor other
information required by the Fair Credit Reporting Act.

10. Defendant has failed to complete an investigation of Plaintiff’s written dispute and
provide the results of an investigation to Plaintiff within the 30 day period as required by 15
U.S.C. § 1681s-2.

11. Defendant has not notified Plaintiff of any determination that Plaintiff’s dispute is
frivolous within the 5 days required by 15 U.S.C. § 1681s-2, nor at any other time.

Prayer for Relief

12. WHEREFORE,

Plaintiff seeks a reasonable and fair judgment against defendant for willful noncompliance of
the Fair Credit Reporting Act and seeks his statutory remedies as defined by 15 U.S.C. §
1681n and demands:

$1,000 in statutory penalties, and,

$25,000 in actual damages

Permanent injunction against the Defendant from reporting derogatory information about
Plaintiff to Consumer Reporting Agencies (credit bureaus)

Permanent injunction against Defendant for selling or disclosing the plaintiff's credit
information to any other party,

Any further relief which the court may deem appropriate.

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DATED this ___ day of _______, [YEAR]
____________________
William T. Smith, Plaintiff
You will also need a civil cover sheet (Form JS 44) and a Summons form (Form
AO440). You may also want to ask for a waiver of the filing fee using the Affidavit of
Indigency (Form
Here is where you can get them:
http://www.uscourts.gov/forms/pro-se-forms/complaint-civil-case
http://www.uscourts.gov/forms/civil-forms/civil-cover-sheet
http://www.uscourts.gov/forms/notice-lawsuit-summons-subpoena/summons-civil-action
http://www.uscourts.gov/sites/default/files/ao239_1.pdf
http://www.uscourts.gov/sites/default/files/ao240_0.pdf
and you can also request that instead of having to serve a summons, that the defendant
waive service of process and file a waiver form. Sometimes the defendant will do this and file
a response without forcing you to serve the summons and complaint with a process server
(U.S. Marshals). Here are the forms:
http://www.uscourts.gov/sites/default/files/ao398.pdf
This is the actual waiver form that the defendant completes if he's going to waive service.
http://www.uscourts.gov/sites/default/files/ao399.pdf
In conclusion, you will want to make a demand for what you want, the statutory penalty
of $1,000 with actual damages. Those damages have to be alleged specifically and may have
to be proven during the course of the proceeding.
You will also need to pay close attention to Rule 26(a) and the Case Management
Report time limitations. The court will allow you to amend your pleading once in response to
a motion to dismiss, so if the defendant pointed out something that you failed to do, or did
incorrectly, you can actually correct it and file the corrected pleading with a “request for leave
(permission) to amend”. One amendment should be enough, and if you need more, you
probably need some further assistance.
You will need to prepare a case management statement and usually the defendant will
do that for you, and then you simply have to work out an agreement as to what is on that form
and then file it with the court. This requires a meeting with the defendant's attorney and the
court's require this in person unless you get the court to approve a meeting via email or
telephone with a stipulation between the both of you.

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 HOW TO SETTLE WITH THE IRS,
POSTHUMOUSLY

This strategy is written for people who cannot escape an IRS levy or a lien, such as
those with “W-2” wage income, or levied pension funds like social security, or for those who
have encumbered real estate or other properties.
I believe any life insurance company can create a policy that will accomplish this
objective. I did check with JRC Insurance Group and verified that it is common practice,
although not well known, that it is possible to settle with the IRS using a life insurance policy.
The benefit here is to stop regular levies and liens and allow you to move on with your life and
be productive. Where before the IRS was preventing you from saving money, investing or
accumulating assets or getting loans, this type of deal should alleviate these problems.
First, you must have the conditions for the IRS to accept an offer in compromise based
upon doubt as to collectibility. This means that all tax returns must be filed. The more money
you owe, the easier it is to make this deal, so only take standard deductions.
Make your offer using Form 656, and the supporting income and balance sheet
statements with Forms 433A and 433B.
Forms 656, with Forms 433A and B: https://www.irs.gov/pub/irs-pdf/f656b.pdf
Next, offer to pay, but via an irrevocable trust and life insurance policy that will pay the
agreed upon amount when you pass away. You would be the insured, and the irrevocable
trust would be the owner and beneficiary, or you could simply name the IRS as beneficiary of
the trust, and the trust as beneficiary of the life insurance policy. The IRS cannot be named
as the beneficiary of the life insurance policy. You'll have to check with an attorney who has
specific expertise in estate planning and can write an irrevocable trust such that its sole
purpose is to settle the specific IRS claim upon your passing. This would assure the IRS of
being paid and allow it to release all current liens and levies against you.
Like most trusts, is simply a holding device. It owns your life insurance policy for you,
removing it from your estate. As its name suggests, the Irrevocable Life Insurance Trust is
irrevocable. That means once you've created it and placed an insurance policy inside it, you
can't take the policy back in your own name.
But you can closely control many other aspects of the ILIT. You can dictate who your initial
beneficiaries will be and define the terms under which they will receive benefits. You can
choose the Trustee (or Trustees) who will manage your ILIT.
An ILIT provides you, your loved ones, and your estate with considerable advantages.
But these benefits can only be achieved if the ILIT is designed properly and specific
guidelines are followed carefully.
What estate planning problems can life insurance create?
Everything owned in our name at death is able to be included in our estate by the
government for estate tax purposes. That includes the death benefit proceeds of our life
insurance policies. When you consider that policies often provide death benefits in the
hundreds of thousands of dollars, it's easy to see how a life insurance policy may have a

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significant impact on our estate tax liability. There's another estate planning problem that life
insurance may create.
An essential part of wise estate planning is deciding not only who our heirs will be, but
also how, when, and why they will receive our legacy. Remember, though, that life insurance
provides an immediate and often considerable payout of cash to your beneficiaries. And that
can create many problems. Even adults with experience managing their finances may find
that the sudden windfall of money from your life insurance policy is overwhelming.
How can the ILIT help solve these problems?
The ILIT is an effective tool for addressing many estate planning problems. Here are
some of the benefits an ILIT can help you achieve:
It will reduce the size of your estate, and thus your estate tax liability.
I may reduce the amount of insurance coverage you need, since your estate tax bill will be
lower.
It will help you protect the cash value of your life insurance policy from creditors.
It will allow you to control, when, how, and why your beneficiaries receive the proceeds of
your policy.
It will help you protect the benefits of a beneficiary who is on government aid.
What other estate planning issues should we be aware of?
If your beneficiary is a recipient of benefits under a government program, such as
Medicaid, for example, then the proceeds from your life insurance policy could make your
beneficiary ineligible for further benefits. Without careful planning, your beneficiary will have to
use up the policy's proceeds on basic needs, and will only be eligible for government benefits
once all the money from your life insurance has been spent. This issue isn't just a concern for
elderly beneficiaries. Any beneficiary now on Medicaid, or a similar government aid program,
is also at risk.
For these beneficiaries, you'll want to control ownership of the life insurance policy's
proceeds and manage how they are spent. For example, you won't want your beneficiary to
own them outright. In addition, the proceeds shouldn't be used to buy food, shelter, or clothing
for your beneficiary. But they can be spent on you beneficiary's education, entertainment,
vacations, a home health aide, or other medical treatment or expenses that Medicaid---or
some other government program---doesn't cover.
If we own a cash-value life insurance policy in our names, can creditors seize it?
Possibly. In some states, creditors can seize all the cash value of a life insurance policy
you own in your own name to settle a claim they may have against you. In other states,
however, part or all of your cash value may be protected.
What's required to set up an ILIT?
The process will begin when you sit down with an attorney to design your ILIT. You will
a) Name your beneficiaries;
b) Name your Trustees; and
c) Lay out the circumstances you'll want your beneficiaries to receive money from the ILIT.
What conditions can we establish for policy distributions after our deaths?

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 It's really up to you. You can, for instance, have the policy's proceeds paid out
immediately to one or all of your beneficiaries. Or you can specify that your beneficiaries
receive monthly or annual distributions. You may even dictate that beneficiaries receive
money when they attain certain milestones. For example, you can provide for a large
distribution when a beneficiary graduates from college, buys a first home, marries, or has a
child. You can also build in flexibility, so that your Trustee has the discretion to provide
distributions when your beneficiary needs it for a special purpose, such as starting a new
business, or even a once-in-a-lifetime investment opportunity.
If your beneficiary is on government aid, your Trustee can carefully control how
distributions from your policy are used in such a way as not to interfere with your beneficiary's
eligibility to receive government benefits. The point to remember is this: You have the
opportunity to carefully control how, when, and why your beneficiaries receive the proceeds of
your life insurance policy. That gives you the power to ensure that your policy is used in the
best possible way on behalf of your loved ones.
Who are typically named as beneficiaries?
The choice is completely up to you, although most people name their children, grandchildren
or other close family members.
Who should serve as our Trustee?
With many types of trusts, it's perfectly fine for you or your spouse---or both of you---to
serve as your own Trustees. But that's not the case with the ILIT. If you or your spouse are an
insured of a life insurance policy that is owned by an ILIT, and you also serve as the Trustee
of the ILIT, then the IRS may decide that the policy hasn't left your estate after all. Instead, the
IRS may count it as part of your estate, which can impact your estate tax liability.
What does the Trustee do?
The Trustee manages the ILIT for you on your behalf. Your Trustee will follow your
directions, as you've initially set forth in the ILIT's documents. While you and your spouse live,
your Trustee will take the money you transfer to the ILIT each year and use it to pay your
insurance premiums. Your Trustee may also oversee such administrative duties as the annual
notification to your beneficiaries (called a "Crummey Letter"), and the filing of the ILIT's tax
return, if necessary. Once you've passed away, your Trustee will oversee distribution of the
policy's proceeds, according to the directions you've provided.
So we select life insurance policy after setting up our ILIT?
Yes, once you've drafted your ILIT, named your beneficiaries and your Trustee (or
Trustees), the next step is to acquire a life insurance policy. You'll go about this process just
as you would normally, except that the owner and beneficiary of your policy will be your ILIT.
Also, you won't pay the insurance premiums directly. Instead, your Trustee will handle the
actual transaction of paying your premiums to the insurance company.
What kind of policy should we use for our ILIT?
You can use an individual life policy---that is, one that insures the life of just one
individual. Or, if you and your spouse are both living, you can use a second-to-die (also
known as a "survivorship") policy. This kind of policy pays out a death benefit only after both
spouses have passed away. Just remember, however, that if you and your spouse are both
covered by an insurance policy owned by your ILIT, neither of you can serve as Trustees.
Can we use an existing policy?

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 Yes. Just remember that if you die within three years of making the transfer, the IRS
will include the policy in your estate for estate tax purposes. Also, there are gift-tax
considerations if an existing policy is used for an ILIT. Despite these issues, however, you
may still find that transferring an existing policy from your estate into an ILIT is well worth it.
How do we make the premium payments each year?
Each year you will transfer enough cash to your ILIT to pay your annual insurance
premium. Once you've made the cash transfer, your Trustee will send your payment on to
your insurance carrier in time to keep your policy in force. A long as your premium payment
follows the "gifting" guidelines, as described below, there will be no gift taxes incurred by
either you or your beneficiaries.
What are the rules for "gifting"?
The ILIT works so well because it takes advantage of the tax break allowed for gifts
called the annual "gift tax exclusion." As of 2017, each year, you may give away up to
$14,000 to an individual completely gift-tax free. You can give $14,000 gifts, as adjusted for
inflation to as many people as you like. A married couple can give an individual a combined
$28,000 annually, gift-tax free. There is no limit to the total number of gifts the couple may
make. You may, of course, give someone more than $14,000 a year. The excess can be
applied toward your lifetime estate tax exemption of $5.49 million (the 2017 limit). Remember
to always make sure you are following the most current law for your tax year.
What other requirements are necessary to keep the ILIT in force?
Once your ILIT has been set up and your life insurance policy acquired, there's
generally very little that needs to be done in the future. Each year (or as long as premiums
are due), you'll transfer cash to the ILIT, the Trustee (or your attorney or CPA) will notify your
beneficiaries of that fact the Crummey Letter, and then the Trustees will wait the proscribed
time to see if the beneficiaries of your ILIT withdraw the money. When they don't, your Trustee
will send the premium payment on to your life insurance company. In addition, your ILIT will
need a separate tax ID number, and a separate bank account may be necessary. In some
cases, you may need to file a gift tax return. Finally, if your ILIT has earned income during the
year, it may require a tax return.
Will my life insurance policy be subject to probate?
No, as long as you're beneficiary is not your estate. Once your survivor (or professional
advisor) has provided your insurance company with proof of your death, the policy's proceeds
are paid out directly to your beneficiaries. This payout generally occurs quickly, privately and
usually with no legal expenses involved. Furthermore, the death benefit of your policy passes
income tax free to your beneficiaries. Remember, however, that your policy is not completely
tax-free. The proceeds from your policy are included in your estate for estate tax purposes.
What if we decide we don't want to keep the ILIT in force any longer?
There's nothing requiring you to continue making insurance payments. Depending on
the kind of policy you have, your policy may lapse as soon as you miss your annual premium
payment. Or, if your policy has cash value, these funds may be used to pay premiums until all
the accumulated cash is exhausted. The one thing you cannot do, however, is transfer a
policy owned by an ILIT into your own names. So, if you think that you may need to do so
someday, or if you will want to access the policy's cash value for your own purposes, you
probably should reconsider the ILIT as a suitable strategy for you.

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 Your only obligation at that point would be to stay in good standing with the IRS and
make the insurance premiums and keep the policy in good standing, but it should dramatically
decrease the amount of money you are paying each month over the matter.
If the agent accepts the offer, get that in writing and give yourself at least 30 days to set
it up, maybe 90. Shop around and get your policy for the specific amount that the IRS agreed
to accept. Then talk with an estate planning attorney about writing an irrevocable trust for this
purpose alone. Don't mix this process with any other debts or transactions and keep it
isolated from other tax periods.
If you have a concurrent state tax obligations, you may need to make a similar
arrangement with the state; however, each state now bases the amount you owe it on the
federal income tax amount. It is possible that making this deal with the IRS first, may alleviate
your state collection problems as a matter of course. If not, then follow the same process with
the state directly.

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 Over the last 25 years I've been providing clients, friends, partners and
subscribers with little pieces of the whole picture on how to live well without
using any social security number. Now I realize that some of you are committed
by having disclosed or associated a social security number with, at least, a
driver license or professional license. The same is true of myself; however, I'm
going to show you how to live well without associating a social security number
that was assigned to your legal name. This will especially apply to my
anticipated following of the “GenZ” or “iGen” demographic, people born between
2000 and possibly 2025. I know this time period may change somewhat, won't
matter. Let's understand a few things about this social security number scheme.
It's a Nazi system of numbering people, it was described in the Bible, and so
what. It was dredged up into our legal system by Eleanor Roosevelt, FDR's
wife, during his term as president. If you read your history well enough, you'll
discover that FDR was responsible for “The New Deal”. It was a collection of
congressional acts, executive orders and federal regulations that re-organized
the bankruptcy of the United States under Title 5 USC §552(a), otherwise known
by two names, The Government Reorganization Plan or by the Administrative
Procedures Act. I'll leave the why and how for a later time, let's focus on this
numbering scheme.
First, no law requires anyone to obtain or use a social security number as
a condition of living, working or even voting in any of the fifty states or the United
States. If I can believe my congressman's written word, I have a list of many
letters from congressman over the last thirty years who have so stated.
Secondly, even if you have one, you are not required to disclose it, even
on a tax return. This is very clear in 26 CFR Part 301.6109-1(c) “Identifying
Numbers”. It states that only someone paying you must ask for the number.
How many times have you been asked for a social security number when you
are paying the one requesting? Federal regulations apply to federal agencies,
not people, but this regulation only requires an officer, employee or elected
official of the federal agency to request the number. It does not require anyone
to actually disclose a social security number, even you are asking for federal
benefits (Privacy Act of 1974). If the employee is going to pay you and you
refuse to give the number, the regulation requires the employee to lie to you and
tell you that disclosure is required. If you still refuse, the employee is then
required to submit an affidavit so stating along with whatever forms on which
your social security number was going to be reported.
Third, the social security number applies to officers, employees and
elected officials of the United States; however, some of the states' legislatures
passed laws requiring the disclosure of the number for state privileges such as
getting a driver license. I'm not sure if the Supreme Court would have upheld
this or if anyone has ever challenged it, but it is not embedded into our society.

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Its use has become so pervasive that to stop using it literally requires a series of
lifestyle changes, the degree of which depends on how much you want to rid
yourself and your life of this fraudulent scheme. Let me tell you a bit more, just
to get the blood pressure up if it's not already. The fact that you are using this
government number and associating with what you do throughout your life,
allows a handful of elite individuals and organizations to move billions of dollars
in the form of securities through your social security account everyday, and
enables bond holders to name you as the guarantor and collateral on debts and
security they create for their own profit. Yes, you are a slave if you are
associating this tax number with what you do throughout your lifetime and if you
got your children a social security number and claim them as a deduction on
your tax return, you've done the same to them before they were even of legal
age. It's a form of human trafficking.
The number itself is 9 digits; therefore, there are 10 combinations per digit,
for a total of 10 to the 9th exponent of combinations, or 1,000,000,0000 (a billion)
combinations. The program began in 1933 or 1934 and apparently, no number
is permitted to be issued more than once. We now have one-third of a billion
people living in the United States and easily that many social security numbers
being used by everyone, except a few people like myself. Go back 40 years
and that's another one-third of a billion numbers being used. Then consider how
many 9 digit tax numbers have been assigned to illegal aliens, trusts,
corporations, estates, etc. We are well beyond over a billion numbers in use,
not to mention that blocks of them cannot be used as they are reserved for
government purposes.
The way the IRS and Social Security Administration avoid confusing files
as they are indexed by social security or EIN or TINs, is to use the first four
letters of a taxpayer's last name and concatenate them onto the end of his SSN.
For example, William B. Smith's SSN is 666-00-1234, so his individual master
file at the IRS would be 666-00-1234SMIT, a total number of combinations
equal to 10 to the 9th power times 26 to the 4th power, problem solved.
I believe the best way to explain how to live well without a social security
number is to give you actual case examples of how I've done it and how I've
helped others do it. In my case, it's plenary, including every aspect of my life.
Like I said, it is a lifestyle change, and I can't expect everyone to simply adopt all
of it overnight, so I only focus on one immediate situation.
At Birth
The first example is how to bring your children into this world, with a
traditional birth at a hospital, without a birth certificate and without any social
security number. I did this five times for my family. I even brought my wife here
from Europe, legally of course, and she was never forced to get a social security

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number. Here's how you do it. We all know it's an exciting time, having a child.
We get over nine months to prepare and in that time we get to decide on a
name. Remember that a name is what you call yourself, not necessary a series
of letters on a birth certificate or government document. The last time I checked,
we still have the right to freedom of expression, even without the Constitution.
In any case, after that wonderful moment when you've given birth to your new
baby, and all of the nurses and doctors congratulate you, a short time after, you
will receive an uninvited visitor from the Department of Health. Let's call her the
tax collector.
The tax collector can only collect taxes on the new child with the help of an
informant. Who is the informant? It's your mother. But you don't have to be an
informant because your child is not a new taxpayer, and he is not collateral for
the national debt, nor is he an article of commerce. But I prefer to be kind and
courteous. So when the tax collector comes into the room, uninvited, with that
fake smile and a clipboard, and asks the informant to inform by telling the name
of the new baby, you simply respond by saying something like this, “You know,
we just cannot agree on any name at this point, not sure when we will.” and just
leave it at that, until that awkward feeling comes and then continue to hold, and
watch the tax collector simply leave. Now the tax collector may try to get you to
come up with a name right then, like I said, leave it at that, change the subject,
ask her to leave because you're tired, etc. And say it with a smile.
The trick here is to never use the baby's name at any time during your
stay. I would say it's best not to use your legal name when you check into the
hospital in the first place, but that would be very difficult for many people,
especially with insurance, etc., and it's not necessary. The tax collector will
either not prepare any birth certificate, or will prepare one with the first name
being “Baby” and if it's a girl, middle initial will be “G.” and a boy “B.”, and then
use the mother's last name as the last name on the birth certificate. That's okay,
remember, it's not yours or your baby's, unless you claim it someday and use it
for something. The reason we claim ours is to get passports but I have
discovered that this was not necessary. We are just talking about the social
security number though. Because you did not give a name, inform, the tax
collector will not file an SS-4 in your child's behalf. This is illegal, or it should be,
but the trend over the last 20 years is for the tax collector who prepares the birth
certificate to also submit an SSN application.
Whenever you're asked for a social security number for your child, or
given a form, use 000-00-0000 in place of any number. Do not use all nines or
anything but these zeroes. If anyone asks, explain that he or she has no
number and no law requires you to get a number for your child. You can also
cite the regulation from earlier in this article, I've never had any problem with this
and it usually makes for an interesting conversation.

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Mobile Phone
Next I'm going to show you how you can get a credit file without a social
security number, but keep in mind that you may want to do as many things as
you can even without a credit file. On the mobile phone, apply for a two year
contract with no credit file and no social security number. Use all zeroes on the
application. There is a chance you will get the contract, or maybe you'll have to
make a large deposit, like 25% in order to establish a file with the carrier, but
once you do, it's good for as long as you pay the bill timely. If this is a problem,
don't get a two-year contract, use a month-to-month service and buy the phone,
there are many options. Many people believe they can't do this before they
have even tried. Try getting a mobile phone contract or the service you want
using the zeroes on your application, see if that works or if you need a larger
deposit or to pay for the phone, the deal can be made, and don't get frustrated in
the process, it can be done. I've done it many different ways and many people I
have helped always get what they want.
Renting a House
Renting a house is probably easier than renting an apartment and over the
next few years it will become easier to find all kinds of rental deals and owner
financing and lease options, without using a social security number, but more
importantly, without using a credit score. Some markets are more difficult than
others, but for the most part, you will be able to find a house you like and sign a
lease agreement without a social security number. The difficult ones are usually
property managers or corporate owners, they have strict policies that the
employees will not be willing to dodge in order to get you into the lease. This
becomes a numbers game, instead of looking at four deals and choosing one
like most slaves with good credit, you might need to look at 20 deals before you
choose one.
You want to talk with the owner, show him your bank statements or
whatever will make him satisfied that you can pay and will pay the rent on time.
Come with written references from previous landlords or employers or
neighbors. Offer to pay two or three months' rent at signing, plus deposit. We
did this in a hot market, but my wife showed up the minute the first showing
began and spoke with the owner. After a very nice conversation about nothing
really important, the owner told my wife that she seemed like a nice person and
that she wanted to offer her the lease, and that was with about four other
prospects standing next to her. We discussed it over the phone for a few
minutes and then accepted, and when it came to time to sign, the owner didn't
even care if I signed the lease. That was over a year ago and we're still here on
month-to-month terms. This is one example of fifty or sixty we've done over the
years.

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Buying A House
Would you believe that renting an apartment without a social security
number or a credit check is more difficult than buying a house the same way?
You're not going to get a traditional bank loan and I don't recommend that
as the best form of financing. Instead, you'll want to seek financing from the
seller using an owner financing deal or more specifically, a lease with an option
to buy contract. I've done this many times and worked with people in many
situations to do this. It does help to determine what the seller needs (not wants)
before you make your offer. Maybe he just really needs $10,000 now and can
live with that and give you short term financing. In the next few years, you will
find this deal to be trending, but many investors have used it as a staple over
the last thirty years, at least from what I've seen.
Agents and attorneys are usually the type of people that don't know how to
market themselves and rely on their professional status alone, as a substitution
for competence, in other works, they usually screw up deals. Get around them,
get them out of the way, or just minimize their involvement. You want to talk with
the seller, find out what he needs. Maybe you will need to make a larger down
payment, or ask for a short term owner financing deal, or include an options
contract. Maybe you can find someone to match your funds with the down
payment and then buy him out later. And you don't do this because you have
bad credit or no credit, or don't want to use a social security number; you want
to do this because it's the way we are supposed to make deals, without
interference from our government or other creditors or the corporate system.
Set up the deal so that everyone's interests are protected and you will get it.
Yes, it will be more difficult in a popular market, where listing are short term, but
the trend is a deflating market, so your time is coming.
Another really good reason to avoid putting your name on the title to real
estate, and use an options contract for this purpose, is so you don't “go down
with the ship” when the market tanks. You can exercise your option for the fair
market value when the seller is screaming for you to heal his pain as he
watches the market dive down each week.
Credit
How do you get credit without a social security number? I decided to
explain this to you now, it will become very useful, but I'm going to caution you
not to replace your addiction to personal credit with this new understanding.
The social security number has a certain format and the manner in which
the numbers were generated including groups being assigned by state, and then
in sequence. The algorithm was developed by the Navy, but it's not important
that you understand the details here. Basically, because no law requires anyone
to have a social security number, and establishing credit does not require a

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social security number, you simply need a nine digit number to be associated
with your name and address and manage it in a way so that it will not be merged
with your previous file that has a social security number, or anyone else's for
that matter. Sometimes this happens, so you just have to know how to correct it
and manage that file just like you manage any other financial matter. You can
do this because it's legal and because you are not cheating or defrauding
anyone. Keep in mind however that if you use this technique to cheat someone,
or commit a crime, using this type of number for your credit may be considered
an element of the crime.
You would not be using someone else's number intentionally, as
everyone's number is already being used by someone or something else, at
least once. So again, just be sure that the person who was issued the number
you are using for your credit cannot have his credit file merged with yours, and
this is easily fixed if it ever happens. It can simply be disputed for accuracy.
You will never need to show a social security card to do this, and if anyone asks,
you can show other records proving that your name is what you say it is and by
implication, this is your correct credit file number.
Credit Cards
The most common way I've done this over the years is to simply create a
new credit file without the assigned social security number, build the credit and
then use it just like you did the first time. It's then very easy to get unsecured
credit cards, just like you did when you first started getting offers in the mail.
Bank Account
Once you have a credit file without a social security number, and have
verified that the number has not been reported to the death index, you will be
able to open a bank account with yourself as a signer. You just won't be able to
show a social security card with your name and that number, and don't try to
make a fake one. If this is a deal breaker for the bank, find another bank.
A more sophisticated, and slightly more costly, way of getting access to a
bank account is to have an attorney on annual retainer where he signs for you
as trustee for a trust he's written for your banking purposes. Explain to the
attorney you don't use an SSN and are frequently out of the country and you
need “someone you can trust” to sign on the account. Some attorneys will not
be willing to do this, but some of them provide this as part of their service, you'll
have to shop around. And, no, you cannot trust any attorney; however, they are
bonded and you can require additional bonding and avoid giving them access to
much money at any one time and you should be fine.
Buying A Car

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 Most of the situations I've solved were for people who needed a car for
practical reasons, driving to work, grocery shopping and school. In nearly every
case I've recommended simply saving the cash and paying yourself regular
payments until you have more than half of what you need for a car. Buy a
reliable used car from a local dealership. See if you can pay for it with the cash
you've saved and then a short term loan, say 24 months, and drive today. There
are many variations of this, but we are heading into a time when there is an
enormous glut, especially in the used car market, and many dealers will take
this deal. Don't be desperate, there is a deal somewhere, if you are not
comfortable with one, just walk away. But you can buy a car without a social
security number and without credit. My mother did something like this once
time, she bought a Toyota Camry, and her credit was the worst, but because she
made the payments on time, the dealer sold her one or two more of the newer
models over the years.
Utilities
I like to open utility accounts in several different ways. I've had to figure
this out over the years in order to solve specific problems, such as people
needing to hide for fear of their lives, or who were the target of an unfair
collection that precluded them from getting a utility account like most people.
If you are not going to give your credit file information, the utility company
will try to coerce you into disclosing it, but ultimately, you will simply have to
make a larger deposit. That's the simple example. But let's take this a step
further, what if you wanted a utility account in a fictitious name? It's about the
same, larger deposit, and either avoid producing a copy of your government
identification, or use an acceptable form of identification that you can create and
will not be considered a “phony ID”, such as a “W-2 statement” or an
International Driving Permit” (IDP). You'll have to ask me about this because it's
not common to find a service that will provide those without a driver license from
some government. Another legal way to make it appear as if your name is
something other than what appears on your driver license, birth certificate or old
credit file, is to set up a corporate (I prefer an LLC) bank account with a “dba” in
that fictitious name, and then get a debt card with only that fictitious name on it,
as the business name. For example, XYZ Company, LLC dba “Bill Smith”, and
Bill Smith shows on your debit card for the account.
Car Insurance
The insurance company will act like a bank, so if you can open a bank
account with no SSN, you can get car insurance in the same way; however, I
like to take it a step further. It's not for everyone though, as I've said before, you
can have your privacy, if you have the stomach for it. I prefer to carry my own
car insurance. I set up a company and created a balance sheet for it along with

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an annual insurance card that I print each year. This is known as “self
insurance” and in Florida it has a code “11111”, so that appears on my card and
both my wife and I are covered under it. Assuming that statutes apply to people
for a moment (don't want to get too far off topic), the law does not require you to
have insurance and pay an insurance company regular premiums and then be
liable for whatever someone can sue you for; not at all, the law only requires
that you carry with you, “proof of financial responsibility”. And while you really
should have the ability to pay if you are responsible for damage and injury, no
police officer on the scene is going to audit your balance sheet. He's just going
to accept your insurance card at face value and do his job.
But this is very basic, only comes into play if one of us is found to have
injured someone and has to pay. We have enough liquidity on the balance
sheet that we could pay, but we would never pay $1,000,000 for example. We
only have enough to pay up to the statutory requirement, $40,000. And if we did
that, we'd have to replenish the balance sheet to be considered having “financial
responsibility” once again. Additionally, if someone scratches your car, steals it
and it's never recovered, or you total it yourself, your company is liable, cash out
of pocket. I've done this for twenty years without any problem, and I'm a careful
driver and so is my wife. I'm betting that if I'm in a wreck, it's going to be the
other guy's fault and his insurance will pay. You still have one more serious
concern however.
What happens if you get into a crash, it's clearly the other guy's fault and
either he doesn't have insurance or his policy won't cover your injuries and you
are out of work and in the hospital for months? Getting an auto policy for this
reason alone would defeat the purpose and what I call the benefits of being self-
insured. You will want to research this for yourself as you might be able to get a
homeowners policy or some other type of risk management to offset such a risk.
You might also be able to get the type of automobile policy that someone who
doesn't own a car could get, someone who is in town only intermittently and
rents a car. It's one of the areas I haven't explored very much, but worth the
time because this is a serious matter, we're not trying to trick the system, but
only wanting to avoid being exploited by the social security number and banking
system.
Doctor Visits
Whenever you visit the doctor, chiropractor, dentist, acupuncturist, hospital
and these types of health car professionals, you are not only asked for a social
security number, but proof of your identity using a “government photo ID”. This
is just plain and simple surveillance, but the doctor does need to know your age,
within a certain number of weeks at least. Remember that for most of you
reading this, you will have used a social security number to get a driver license
and you will use that for identification. If you are using a driver license for

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anything other than a traffic stop, you need an IDP or passport or something
without any connection to your DMV, via your DL number. I'm saying it this way
because it's your DL number and/or the magnetic stripe on the back of the card
that gives merchants access to your entire DMV file, trust me, you don't want to
know what's there or you'll really be angry (think Nazi surveillance state).
In any case, if you're not yet using a passport, either a United States
passport or one from another country, or an IDP, and the service insists on you
providing a government issued photo ID, use a color photocopy of your DL.
Make this copy before you go to the doctor or have a few copies handy in your
car or a paper file in your home. Make a color copy, then use a black marker to
redact the DL number and your date of birth. Then make a color photocopy of
this redacted version and be sure this information is not visible. Use that as
your ID.
If the office gives you a difficult time, use this explanation. I've been a
victim of identify theft in the past and my attorney told me never to use my driver
license for ID except at a traffic stop. He said if anyone insists on seeing my
original DL, that I should ask for his data retention policy and a written
explanation of what liabilities and insurance coverage the requesting party has
for securing my records. Once I get this information, he said I should call him
and come to his office to show him how my information is going to be protected
by the service that's requesting it.
You are actually saying, my attorney wants to know how you are going to
indemnify my client against any misuse or unauthorized access to his
information. Sometimes these people get smart and ask to speak to your
attorney directly. Explain this, he said if you are asked to speak to me directly,
explain that our retainer agreement doesn't cover this type of involvement and
that his hourly rate is $350 to answer questions and please make an
appointment.
You should never have a problem. Sometimes I don't even do these
things. If someone asks for proof of my identity, I just explain that I am who I
say I am, do you suspect I'm lying? I also pay for visits with cash, sometimes a
credit card, but it should be no problem to use your insurance carrier as well,
same scenario.
Remember, I said to redact your date of birth? But the doctor needs to
know your age in order to give you medical advice or treat you in many cases.
He doesn't need to know your actual date of birth. So change your date of birth
by a few weeks or months, and remember what date you did you with that
physician's office. In some cases, your social security number can be obtained
simply with your full legal name and date of birth and some companies will get
that information. Yeah, it's probably illegal, but this system is so broken that

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even illegal things like surveillance of private citizens by anyone, government,
companies, etc. has become an acceptable practice.
This is another reason I use an alias with these services, and I either get
around showing ID, or I use an IDP, a debit card or other means to establish that
the name I'm using is my name. Most of the time, when asked for a DL or ID, I
explain that I didn't bring it, or it's in the car. Sometimes, whoever is asking for
it, will ask me to go get it. Sometimes I say I don't have it at all, even if it's
obvious that I drove, then explain I'll be sure to bring it next time. Sometimes
the office forgets to ask me again, and sometimes we have the same
conversation, and then sometimes, I don't need to continue visiting that office
because I'm usually in good health. I didn't give you all the answers here, just
plenty of means and references to think through these situations.
Passport
If you already used an SSN to get a United States passport, you're stuck
with it, just like with the DMV records and the DL; however, if you have not, now
is the time to get a U.S. Passport with no SSN. Just use 000-00-0000 on the
application. Yes, there is a notice that you could be subject to a fine for not
disclosing one. Keep this in mind, no one using an SSN actually “owns” or “has”
an SSN. It's a government number, that's why it cannot be revoked or
surrendered, it's not yours, it's the government's. Also, the use of the number
was never assigned to you, a human being. It was assigned to a security, or
evidence of a security, known as a birth certificate and the common label on that
certificate which looks just like your name, but it's in all capital letters. This is
not your name, anymore than someone who shares your name is not using your
name, it's his or hers because it's being used to identify he or she but not you.
In any case, a new federal law was passed in the last days of Obama's
term that required employees of a federal agency known as the Surface
Transportation Board to disclose a social security number with a passport
application if the IRS had served notice on the agency of the employee's tax
liability that was in excess of $50,000. The Department of State is now trying to
use this law to preclude anyone from renewing or getting a U.S. Passport who
does not disclose a social security number. Assuming there is a legal mandate,
which there is not, as I'll explain, it only applies to employees of the Surface
Transportation Board if their agency has received a notice of the assessment of
an unpaid tax liability from the IRS in excess of $50,000.
I'm going to save you the legal research, just understand this. I have
found no implementing regulation for this law, meaning even though there might
be a statute for this, there is no agency regulation that makes it binding for the
employees. And remember, it's only for agency employees where their employer
has been served notice of an assessed and unpaid federal income tax liability

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exceeding $50,000. Assuming it even applies to them, it certainly does not
apply to people who are not employees of this agency. Additionally, this is a due
process and right to travel issue. The government cannot restrain or impede
your right to travel because “you don't have” a tax number, or because you didn't
pay a certain tax. In fact, you can travel internationally without a passport, to
and from the United States, but that is another subject. If you renew your
passport via mail and are denied because of this issue, applying in person
should resolve it, just explain that you don't have a social security number and
are not required to go get one. One that thing that is very important, DO NOT
sign any additional documents, such as an affidavit stating that you don't have a
social security number. The passport application is already made under
penalties of perjury and you are not required to sign additional affidavits,
especially those you didn't write in your own words, restating the same things
you stated on your original application. If you sign such a document, after
having already submitted a correct and complete passport application, the
agency will impose whatever ad hoc rules it wants and you will have no legal
defense or protections. Again, I'll spare you the legal memorandum.
It's important to remember that if you truly want to do things without
a social security number, remember these basic principles, and that with
some organizations or individuals, it's enough to disclose your legal name
and actual date of birth, and this can be used to obtain your SSN. Of
course it's not legal, but again, you're dealing with people that usually
thing anything the government does is okay and why should you care if
you're not doing anything illegal.

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THE Signature LICENSE,
RESTRICTIVE ENDORSEMENT AND

CONTROLLING YOUR DATA

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 If people used these practices when signing mortgages at the beginning of the century
(from 2000), it is likely that we would not have had a mortgage crisis because the banking
system would not have been able to counterfeit and forge notes and mortgages in the
process of taking homes.
What is a signature? My mentor used to say that it's “...the nature of your sign”.There
seems to be no reference anywhere, in law or publications, that explains what a signature is
and how it should be used and what power and rights it conveys.
If you ask most attorneys what a signature is, you will here some nonsense about how
it's your name written in cursive and can be written in many styles. Attorneys cannot be
expected to have any intelligent opinion on this subject, even though it's probably the most
important subject in law. Lack of this understanding is the reason that most people are
exploited. Ask anyone who has a mortgage, what he agreed to under the terms of the note
and mortgage, and he will not have the words to articulate the agreement, even though it's
one of the most significant contracts he can ever make.
Make no mistake, your signature is money and if you disrespect it, the misuse or
negligent use of your signature will hurt you financially and in many other ways. Nearly
everyone in our modern society is trained like a monkey to sign whatever form he is given,
without question, and without restriction. Most people don't even know that you can impose
restrictions on the use of your signature with legal terms in what is known as an
“endorsement”.
Did you know that your signature is your private property? It is an expression of your
will or yourself. Think about this, when a creditor imposes a lien or levy on someone's
property, it may take money out of the bank, levy wages or auction collateral, but no creditor
ever takes your signature. Your signature is the source of wealth, at the very least it helps
you acquire property rights and those rights can be taken by a court in most cases, but not
your signature. It's just like a thought, no one can take your thoughts, or your attitude, and
likewise, no one can take your signature. This property needs to be acknowledged and
respected.
Your signature is the “nature” of your “sign”, it is your individual expression and we use
signatures today to express our consent to certain agreements. Most of these agreements
are known as “adhesion” contracts, that is, terms to which you either agree without exception
or don't agree at all. I'm not challenging these types of contracts, that is for another article,
but I want to draw your attention to the fact that you can impose terms upon the use of your
signature and still accept the terms of an adhesion contract.
If you sign something without qualifying the use of your signature, you are giving the
counter-party a “blank check” to use your signature for any purpose at all. Here is an
example, you apply for credit using your signature and other information, you agree to a credit
inquiry of your credit file. But what you also agree to, either in writing on the application or by
just giving a “blank check”, is that your signature, and thereby your consent, is also used to
report unpaid bills to your credit file and for use in a debt collection and in assigning your
account to collections to third parties which you never expressly agreed to, among other
things. I'm not saying that every credit application is going to turn into a debt collection, but if
the organization states that it wants to make a credit inquiry of your credit, that should be the
limited purpose for which you affix your signature and all other purposes should be excluded.

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 What if you sign a promissory note or credit agreement and then the bank or lender
uses the signed instrument to make money beyond the terms of the agreement and its
relationship with you? This is done everyday and you would be shocked to know how often
your signature is used to make money without any compensation to you.
Let me give you a short example of how your signature is used to generate money for
your direct benefit, and this doesn't include all of the money that your signature is used to
create where you receive no benefits at all.
The following data pertains to an average individual's use of his SSN/DOB, Signature
and Annual Income Statement when obtaining loans for consumer debts and generating
income throughout his lifetime. It does not pertain to other value created by other aspects of
the individual's likeness. The premise here is that one's identifying information (financial, tax,
banking, credit) is an aspect of one's likeness. Add in the missing annual income and your
age and calculate this for yourself.

Average American Annual Income = $52,000

Average Income of Individual (last three years) = $_____________
Current Age = ________
Average American Age of Retirement = 65 years

This factor, average income from last three years, should be supplemented by the amount of
annual revenue generated for the organization in which the income earner is employed, if he
is employed. It would be calculated by an estimate of the amount of money his employment
generates for the company. This factor is not included within this analysis, and this analysis
should be done with the individual's specific data in place of these estimates.

How much debt does an American create:

Student Loans = $27,000 for a four year degree
$44,000 for a masters,
$56,000 PhD.
$113,000 Medical (MD)

Credit Cards/unsecured debt = $120,000

Mortgages = $230,000 is the average mortgage, but people generally obtain several
mortgages throughout their lifetimes. An average person could create $1,000,000 in
mortgages in his lifetime.

Automobile Loans = $30,000 on average, with the average person creating car loans for a
least 7 cars in his lifetime, or $210,000 in car loans in his lifetime.

Small Business
Small Business Trends published a 2007 table showing that the average small business (S-
Corp.) across all industries, generated just over $1,500,000 in gross sales. While the net
income of the owner was about 7% of gross sales, the key number here is gross sales
generated by a small business meaning that the owner is not a corporation in the sense of a
C-Corporation, but a sole proprietorship or S-Corp., usually with one owner. This means that
the owner was required to use this name, signature, DOB, SSN, and personal income
statement for nearly every aspect of the business, from ordering supplies to guaranteeing
contracts and credit terms.

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For each individual, it is entirely possible that his identifying information can be used to
generate approximately $1,500,000 in revenue per year. This amount should be multiplied by
the number of years which one could reasonably be involved in such a business until
retirement, from his current age.

Life Insurance
Whether or not an individual has life insurance, his identity can be used to obtain a life
insurance policy. It could be reasonably, anywhere between $25,000 to $1,000,000 of
coverage. I'm going to use the amount of $250,000 to be conservative and factor it into the
total estimate.

Total Identity Valuation (understated):

65 – Age x $52,000
+ Student Loans $25,000
+ Credit Card with Unsecured Debt $120,000
+ Mortgages $890,000
+ Automobile Loans $210,000
+ Life Insurance $250,000
+ 65 – Age x $1,500,000
_________________________________

Assumption that individual is 50 years of age

15 x $52,000
$25,000
$120,000
$890,000
$210,000
$250,000
15 x $1,500,000
_________________________________
$24,775.000

Factor in the use of this specific individual data by debt collector for tax deduction (face
value of mortgage), face value of bank owned life insurance, securitization, collateral
Okay, your signature may be worth at least $25,000,000 in your lifetime and this is just
a rough estimate and does not include all of the money for which your signature is securitized
and monetized by banks and corporations and banking facilities.
Why have you been so careless with your signature? Why has no one ever explained
the importance of this to you? The answer is quite simple, you have been exploited all of your
life, in these ways but in far more ways you can possibly imagine, by the banking system and
by your government. You need to take control of your money (signature) and I've prepared
the “Signature License” to help you do just that.
When you sign your name, you simply write above or to the left of your signature, “with
terms, No. _________” and insert the number of your signature as per the algorithm and then
include the signature license with your signature, either as a PDF online or on paper, or sent
via first class mail to the counterparty.

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 I think you want to use this signature license when you provide your signature where
the counterparty is a financial institution or corporation that deals in financial instruments; for
example, a car dealership today is not selling cars as much as it is acting as a “broker-dealer”
in creating consumer debt with notes and collateral. Today, a car dealership is more of a
banking facility than a car dealer in the traditional sense.
The same is true for providers of life insurance. Insurance is just another aspect of
banking and you use the signature license in these situations as well. You should use it when
you apply for credit where your credit file will be reviewed with your date of birth and social
security number. When your name, signature, date of birth and social security number are
being used in a credit application, the account is being evaluated for underwriting with an
insurance company and the paper you are signing, the note for example, will have a credit
rating based upon your signature and credit. The reason for this is because the bank or
insurance company or corporation is going to make money on the debt instrument you are
signing (note, lease, credit application, etc.). Again, more reason to impose terms under a
license agreement for the use of your signature.
If you sell your old car on Craigslist, chances are that someone in your neighborhood
who is looking for a car will come to buy it. You will execute a sales contract (or you should)
and then sell him the car if he wants it. This in itself does not involve banking and your
signature on that contract will not be used for anything but that one transaction as described
in the bill of sale. There is no need for a signature license, but of course you can use it in this
example as well. However, it is likely that the Department of Motor Vehicles is using a
signature on the certificate of title and registration application to create its own revenue in
addition to the fees you are paying. What about your driver license?
A driver license, much like your birth certificate, is used to create all kinds of money
and huge amounts at that, from which the signatory receives no money or compensation. It is
safe to say that you should add a signature license to your DMV file as it pertains to your
driver license. The same would be true for the state and federal income tax forms. There is a
specific date and time when each of these records are created and permanently recorded and
it can be used to create the signature serial number that is explained in the license.
I have included an example of a signature license here, I called it the:

Bullet Proof Endorsement

This is a license agreement and a qualified or restricted endorsement for the use of my
signature, between myself ____________________________________, the Licensor, and
the counterparty Licensee, ______________________________, notwithstanding any other
terms between the parties herein.
I – Description of Use
My signature is given for the specific purpose or transaction as it pertains to the document or
instrument described herein:
 Payment Authorization  Contract for the Purchase and Delivery of Goods
 Credit Inquiry  Membership / Subscription
 Promissory Note  Banking
 Consumer Credit  Professional Services

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 Other or Specific Details: ________________________________________________
__________________________________________________________________________
__________________________________________________________________________,
and for no other purpose other than that described herein. A true and correct copy of the
document or instrument to which my signature is affixed is also affixed to this license
agreement by the endorsement on the transaction or instrument using “with terms” and the
number of my signature thereon.
II – Definitions
The terms “My” and “myself” mean the Licensor.
My signature is the “nature of my sign” and it is my private property and not subject to any
claims, liens or encumbrances.
My signature is an expression of myself and protected by law.
My signature is what I proclaim it to be and nothing more. It is not limited to a series of letters
or any particular font, but may be expressed simply by the expression of my consent or will in
an electronic form or verification process, such as an email confirmation to subscribe to a
newsletter.
I am the freeholder of my signature and all rights attached, expressed, assigned or
recognized with my signature.
My signature is non-negotiable and given without recourse, and without prejudice to any of
my right, notwithstanding any other provisions expressed in this license.
The term “credit” means the credit history of the Licensor as such records may be maintained
by a government or credit reporting agency such as, but not limited to, Equifax, Experian,
TransUnion or LexisNexis or other credit reporting agency, that is subject to the provisions of
the Fair Credit Reporting Act.
A “backup” is a duplicate made for security purposes and for the anticipation that original data
may be lost or damaged and therefore, the backup can be used to replace the original.
The term per diem mean per day.
III – Rights to Copy
My signature shall not be copied duplicated or replicated on or in any medium including
paper, electronic or digital, except that the counterparty may store my signature in its own
database, whether paper or electronic, and for the uses limited by this agreement, and for no
other uses. The counterparty may also create “backup” copies for security purposes but shall
not store such copies in violation of the Non-Disclosure provisions of this license.
IV – Binding Provisions
No verbal expressions representations of any kind are binding upon the parties and only the
terms herein are binding. This agreement shall be controlling in any disputes between the
parties as to the terms of use for signature herein.
V – Confidentiality & Non-Disclosure
My signature, and the instrument terms or documentary terms to which it is affixed, as
described herein, shall not be published or disclosed to any party or third party which is not
named in this license.

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VI – Trademark
My signature is my unregistered service mark or trademark and is protected by the law of
trademarks.
VII – Intellectual Property
My signature is my intellectual property and I have the superior claim against all others and
no one has any superior claim against my intellectual property or signature than myself.
VIII – Access to Credit History
My signature may be used for a single credit inquiry by the Licensee and shall not be used for
any other purpose, including by not limited to debt collections, asset searches, or credit
reporting or reporting any information to my credit file.
IX – Indemnification
Licensee shall indemnify the Licensor against any and all security breaches, losses or
damages resulting form the use of his (or her) signature.
X – Choice of Law & Dispute Resolution
The choice of law for any and all disputes arising from these terms shall be within
_______________________ and any and all disputes arising from this agreement shall be
resolved by applying to the court in this jurisdiction under an appropriate cause of action.
XI – Liquidated Damages
The counter party shall pay liquidated damages to the Licensor in the amount of 480 grains of
gold (Au) or its equivalent in Bitcoin, within thirty days of such violation. If counterparty shall
fail to pay liquidated damages within the time limit herein, it shall be deemed to be in default
of the license terms herein and damages shall continue to accrue each day at a rate of 480
grains of gold (Au) per diem until the default is cured.
Additionally, any commercial use of my signature that is not specifically authorized by this
license which is appended to the transaction, document or instrument described herein, and
that produces any gain or financial benefits for the counterparty Licensee, shall immediately
be reported to and paid to the Licensor, in full. Failure to pay these amounts to the Licensor
shall constitute default under the terms of this agreement. Licensor shall pay additional
damages to the Licensor in the amount of money or financial gains realized by the Licensee
Licensor shall given written notice of the default, for each and every single default, to the
Licensee within thirty (30) days of discovering such default, and provide the Licensor an
opportunity to cure the default with specific instruction on how to do so. If the Licensee fails
to cure the default(s), such failure shall constitute a security agreement and notice of the
agreement shall be given and published in the official records of the jurisdiction in which this
agreement is executed and in which both parties reside. This security agreement shall
constitute a statutory lien.
XII – Term Limit
My signature is expressed this ___ day of ______, ______, at the time of _____:______
My signature is revoked and expires on the date of ________, at the time of _____:_____,
Or, expires upon the occurrence of a specific event described as
__________________________________________________________________________,
whichever occurs first.

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Dated this ___ day of ______, _____.
XIII – Signature
My signature is numbered and sealed with an embossing stamp. The number of my
signature is formatted in the following manner, year,month,day,hour,minute, for example, a
signature expressed at 6:30 PM on Friday, January 22 nd 2016, will appear as 201601221830
with no delimiters, and is expressed with the transaction or instrument described in Section I.

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 DATA RETENTION LICENSE

Nearly all “privacy policies”, at least that I have seen anyway, are telling you that using
software, or a service or product subjects you to consent to the company's “privacy policy”,
and then in the policy, it explains what privacy you do not have. We don't have to accept this
and we don't have to agree to binding arbitration clauses with foreign corporations just so we
can use a computer. What we can do is notice these companies as to how our identifying
information is going to be used, whether they like it or not.
I created what I call a “data retention license” that describes how my likeness and
identifying information will be used by any counterparty. I then uploaded it to a free website
and created a Quick Reference (QR) code that I can insert next to my signature or in one
page notices to counterparties using my information. Here is an example to include with your
notice:

NOTICE OF LICENSE TERMS FOR USE OF LIKENESS

Please be advised that you agree to the following license terms for the use of my identifying information
(likeness), please scan this link and visit this website to review the specific terms of the license.

http://tinyurl.com/zrfebhd

If you scan this code or visit the URL, you will see the following data retention policy or
that with some revisions and I modify it once in a while.

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 DATA RETENTION LICENSE
Please be advised that upon receiving notification of the QR code for the following content and license terms,
you are subject to the terms and conditions set forth herein.

In requiring or requesting the disclosure of my identifying information and capturing or retaining my information in
any way, or in any type of database, including but not limited paper or electronic media, you the recipient(s) of
this notice, jointly and severally, and your agents, subsidiaries, assignees, attorneys, successors, receivers,
transferees, appointees, share holders, investors or buyers, the licensee, agree to the following terms,
notwithstanding any provision of law, policy or agreement:

NOTICE IS HEREBY GIVEN to any and all recipients of my data, that each is subject to the terms herein and
has been duly noticed.

Definitions

These definitions are not limiting or strictly exclusive of other or additional meanings that are commonly accepted
by most people.

Please take notice that the first ten amendments to the United States Constitution have not been repealed, and
have been reproduced by each state legislature in its own constitution, specifically as to the Fourth Amendment,
to wit: “…the right of the people to be secure in their persons, houses, papers, and effects, against unreasonable
searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported
by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be
seized.”

The United States Supreme Court holds that I have no reasonable expectation of privacy when out in public, or
outside of my private residence; however, this is not a waiver of my rights and I retain my rights and private
property rights, and these rights are more fully described herein.

The terms “me” or “my” or “I” – mean the licensor, the individual who served upon you, the license agreement
notice via the QR code or website that you are now reading. I will identify these terms by the date upon which
notice was served upon you (date indicated with QR code) and my name or other identifying information which is
the subject of this license agreement.

I am an individual with a conscience and the power to reason and I have rights that existed before any law,
statute, social, political or legal construct. I have rights that are absolute, natural and unalienable. I am
incomparable to you (as defined herein) or any fiction or construct and superior to the same.

The terms “my identifying information” or “my data” mean my private property and include, but are not limited to,
my personal, private, banking, credit, financial and identifying information such as my legal name, nick-names
and aliases, date of birth, uses of a social security number, uses of a credit file number, bank account numbers,
birth certificate and records, credit file number, bank account information, records on file with any department of
motor vehicles (DMV), driver license, pilot license, captain’s license, professional license, permits, registrations
for any vehicles, vessels or aircraft, utility accounts, medical records, my human tissue or fluids, website content,
browsing history, email and telephone communications, information disclosed on packaging for physical mail,
such as letters, envelopes, post cards and packages sent via the United States Mail or any private carrier
including but not limited to the time and date of the post mark and physical description and dimensions of the
same, photographic, telephonic, video graphic or audio graphic images or records of myself and my likeness,
including but not limited to any and all bio-metric information or patterns such as finger prints, DNA
(deoxyribonucleic acid) records, retinal pattern, voice or utterances, physical characteristics (such as gender,
hair color and style, eye color, height and weight), mannerisms, habits, behaviors, dance, gait, facial
expressions, body language, dates and times of my activities, location data, meta data or information about the

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information described herein, my signature, handwriting, and descriptive marks appearing anywhere on my body,
or that may be expressed by me in any way.

The term “incident” – means a single violation or material breach of the terms of this agreement.

The terms “you” or “your” – mean, but are not limited to, the licensee, and the individual, entity, organization,
business, government (state or federal), government agency or contractor (state or federal), county, state, city or
municipal corporation, corporation, limited liability company, trust, sole proprietorship, or the party requesting,
holding or benefiting from the use of my personal or private identifying, financial, credit or banking information,
including but not limited to all information connected to my driver license, identification cards or devices, and
medical records. These terms include, but are not limited to, to the principals, owners, agents, predecessors,
assignees and transferees of the foregoing. You are recognized in this agreement as an individual without a
conscience or the ability to reason and think rationally, and therefore, no inherent rights of any kind unless
specifically given by statute or an act of the legislative function of the government that granted your existence.
You are subservient to the will and power of people, such as myself.

The term “point-of-sale” means the period of time when payment is made for services or products, or the
moment when my identifying information is requested or obtained, by any means.

Terms

You agree that upon the moment of disclosure of my identifying information to you, or the moment you obtain my
identifying information, whether with or without my consent, that you are in sole custody and control of my
identifying information and that these terms apply. This agreement is perpetual and shall continue in perpetuity. If
this agreement conflicts with any of your policies, the terms within this agreement shall be controlling and
notwithstanding any of your policies or previous agreements, terms or conditions.

Indemnification

You agree to indemnify me and hold me harmless of any losses incurred by anyone related to the disclosures
requested of me, and you agree to compensate me and any other parties, for the full amount of losses, for each
incident. You agree to protect my rights at your own expense, as it pertains to fulfilling the terms and conditions
of this agreement.

You guarantee, without exception or condition, the security and privacy of my identifying information, or data,
specifically,

● You will not share my data with any third party without my prior written consent. Failure to comply shall
constitute a violation of the terms herein.

● Sharing my identifying information with, or for the benefit or use of, any insurance company, servicer or
underwriting purpose, is strictly prohibited under these terms and constitutes a violation of this agreement,
subject to the penalties specified herein, with damages including, but not limited to the following example: If your
transmission of my identifying information to an insurance carrier and/or its underwriter results in the denial or
cancellation of insurance coverage that I would have otherwise been provided, you shall assume all the risks
and liabilities that such coverage would have provided me, and for as time as the coverage was intended by me.

● You will use my data only for the purpose stated at the point-of-sale. Failure to do so shall constitute a material
breach or violation of the terms herein.

● You agree not to reproduce or duplicate my identifying information in any manner unless this is disclosed to me
before the information is reproduced or duplicated and you first obtain my written consent to the reproduction or
duplication. Failure to comply shall constitute a material breach or violation of the terms herein.

● You will return all records of my identifying information immediately after use or satisfying the purposes for
which it was requested. Any of these records or information that are not returned shall be destroyed and a

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certificate of destruction shall be provided to me at my mailing address below, specifically describing a) the
date and time on which the records and information were destroyed and b) the purpose for which each was used
and c) the manner in which they were destroyed and d) the name of the individual employee or agent charged
with the custody and destruction of these records, with his or he signature, with the statement that “the foregoing
is true and correct and I so state under penalty of perjury under the laws of the United States of America”. This
certificate must be delivered to me via certified mail within thirty (30) days of the destruction. Failure to do so
shall constitute a material breach or violation of the terms herein. Failure to do so shall constitute a violation of
these terms and you shall be subject to the penalties and damages resulting therefrom.

and,

● Disclosure of my identifying information in exchange for any benefit or compensation shall only be made with
my express written consent and all benefits and compensation shall be disclosed to me at the time you seek my
consent and the benefits or compensation are subject to a sharing arrangement in which you pay me some or all
of the benefits or compensation obtained in exchange for my identifying information. Disclosure of these term
shall be made to the other party to whom disclosure is intended to be made and that party shall become subject
to each and every term and provision of this agreement.

Furthermore,

Any of my identifying information, that is within your custody or control, and is accessed or obtained or disclosed
to third parties because of a breach in your computer or network security or any unauthorized access of my
identifying information is obtained through any breach of your security, shall constitute a material breach or
violation of the terms herein.

If you obtain video graphic, audio graphic, telephonic or photographic/still images of me, or cause such images
to be obtained, using either your equipment or facilities or those of another, you agree that these images are my
private property and you shall assume to become and remain the trustee of these images, and your custody and
control of these images shall be governed by the terms and conditions of this agreement. I reserve the right to
require that you undertake, or refrain from undertaking, certain actions regarding your custody and control of my
identifying information, from time to time. I may send you a written notice with instructions pertaining to what I
want you to do with my identifying information. I may send you a lease or license agreement with payment and
amended use terms to which you must comply. Failure to comply with such notices and requests shall constitute
one or more material breaches or violations of this agreement and you shall be subject to its penalties and
damages resulting therefrom.

If you represent or express to me, in any medium, or by any means, that the collection of my identifying
information is for my security, or for any security purposes, or for my protection, or training purposes, you shall
simultaneously provide me with a copy of your training policy and/or a written list describing what risks you are
protecting me from and for what risks you are providing my security, or security in general. Failure to make these
disclosures shall constitute a material breach or violation of this agreement, for misrepresentation but not limited
thereto, and you shall be subject to the penalties and damages set forth herein.

If you make or express to me information or facts that are false, or for which you have a duty to know the truth or
falseness of, this shall constitute a material breach or violation of this agreement.

You shall not interact with me as if I am a suspect in a crime. If you suspect that I am involved in a crime, it is
your duty to report such a crime, and it will constitute a material breach or violation of these terms and conditions
if you consider me to be a suspect in a crime and fail to advise me of the same and inform the proper authorities
immediately upon making this determination. You should not exercise any powers that are reserved and
exclusive to the police power of the jurisdiction in which we are interacting with each other, without full disclosure
of the same and without immediately informing the appropriate authorities. Failure to comply with this provision
shall constitute a material breach or violation of this agreement.

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Severability

If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be
invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth
herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the
parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve
the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It
is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining
terms, provisions, covenants and restrictions without including any of such that may be hereafter declared
invalid, illegal, void or unenforceable.

This agreement does not constitute a waiver of any rights I had prior to the date of this agreement and is made
without prejudice to any of my rights.

Acts or Occurrences of Nature

If any event occurs that results in any kind of breach of this agreement by you, but is the result of an act or
occurrence of nature, your failure to fulfill these terms may be exempted or excused from these provisions,
provided that you have exercised or undertaken reasonable actions and precautions to prevent such failures.
Additionally, you will undertake actions to cure such failures as soon as practicable following any such event or
act of nature.

Penalties and Liquidated Damages for Violations

For purposes of this agreement, the approximate value of my identifying information, in whole or in part, is not
less than nine hundred ounces of gold (Au), per annum, and depending upon how it is used and what benefits
are derived from its use by anyone, it may be worth substantially more. This amount may be calculated on a pro
rata or per diem basis, using 365.25 days in one year.

You agree to pay me one ounce of gold (Au) or its equivalent exchange rate in Bitcoin (XBT) per violation of this
agreement plus damages, plus the per diem rate.

You agree to pay me damages, in addition to all other damages, in the amount of one ounce of gold (Au) or its
equivalent exchange rate in Bitcoin (XBT) per diem for each day you hold my identifying information in violation
of this agreement. This provision includes but is not limited to third parties who hold my identifying information
after it’s conveyed or disclosed by you in violation of these terms, for as long as the third party holds my
identifying information.

Failure to fulfill any or all of your guarantees shall constitute a material breach of this agreement and subject you
to the penalties described herein.

You also agree to, immediately and without delay, remit to myself all profits, benefits and gains realized and
obtained from the use of my identifying information, to me, as part of the liquidated damages, and measured by
the value claimed herein.

Choice of Law

Any disputes or claims arising out of this agreement shall be heard exclusively in the United States District Court
located nearest to the location where the incident, acts or conduct giving rise to the claim or dispute occurred.

Notice Requirements

Any notices required or made under the provisions of this agreement shall be by first class mail unless otherwise
specified in this agreement. Notices shall precede actions or conditions that are amended, required or requested
by a minimum of seventy two (72) hours.

Notice, Notice of Lien

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Be advised that I have and do possess the exclusive rights, without lien or encumbrance, to my private property,
partially identified herein as “my identifying information”, but not limited thereto, and that there are no other valid
claims against my private property anywhere. I have and do retain all rights to copy, use, duplicate and
reproduce my identifying information, exclusive of any other individual anywhere.

This agreement constitutes a security agreement and superior lien, and notice of the same, upon and against all
property and rights to property identified herein. This agreement also identifies my superior claim upon and
against all profits and benefits you have obtained, now or will obtain, from the use of my identifying information.

Be further advised that I may publish and record a “notice of lien” using the UCC-1 Financing Statement Form in
the appropriate system of records, but failure to record this notice of lien does not amend or alter the lien rights
or license herein.

Fees and Costs

Each party to this agreement shall be responsible for its own, or his own, fees and costs incurred from making
any claims under the provisions of this agreement, including attorney fees, taxes and court costs.

Exclusion or “Opt-Out”

You may refuse to agree to these terms by sending a written notice requesting to be excluded from these terms
and guaranteeing that none of your employees or agents will accept or continue to use my identifying information
in any way, as required herein. This notice must be sent via certified mail to the individual’s postal mailing
address who was responsible for noticing you of these terms within thirty (30) days from the date of this
agreement.

If any of your employees or agents request and accept my identifying information following the date of this
agreement, or following the date of your “opt-out” notice, you will have waived your “opt-out” exclusion and then
be subject to the terms and conditions herein, ab initio.

My failure to “opt-out” of any provision of your “privacy policy” or similar policies does not constitute any waiver of
my rights to opt-out at any time and to the extent that any such provisions conflict with the provisions of this
agreement, this agreement shall control.

Your failure to “opt-out” of this agreement constitutes your express waiver of any and all legal immunities,
including but not limited to absolute or qualified immunities because of your status as a government, agency of a
government, or office of a government, or by your employment or the exercise of the functions of an elected or
appointed public office, or trade or business, within any state of the United States, or within the United States or
within any other jurisdiction on Earth.

CERTIFICATE OF SERVICE VIA UNITED STATES MAIL

I do hereby certify that a true and correct copy of the foregoing “Data Retention License Agreement” was duly
served upon you, the licensee, on the date appearing within the notice or QR code.

__________________________________________________________________________
__________________________________________________________________________

Once you have placed a party on notice of these terms, it becomes a security
agreement. If you don't know what a security agreement is, please research this term. What
you will want to do next is the same thing the bank does when you borrow money for a house

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or car or your business, it places a lien in the state or county records office and a notice of
lien with that on UCC Form 1 “Financing Statement”, a copy is here:
https://www.sos.state.tx.us/ucc/forms/UCC1.pdf
Please a lien against your private property every time a party begins using it, even if it's
a bank placing a lien on collateral, you place this lien against the use of your name and
identifying information (private property). This lien should also be placed against the United
States, your state and your county and anyone else who has been and will use your name
and identifying information, even your bank, employer, credit bureau, etc.

SIGNATURE SECURITY

Here are several habits, using old school methods, that will end and prevent banks and
the government from stealing your signature, its value, and committing forgery and
counterfeiting. The section that follows will discuss new technology for utilizing your signature
and protecting it from becoming a “blank check” for bankers, businesses and the government.
This article is written specifically in response to the billions of dollars of counterfeit and
forged promissory notes that have recently flooded the United States and have been used to
steal American homes and wreck our economy. The problem is now solved (at least going
forward). However, we need to adopt the following practices whenever entering into any
promissory note arrangement, especially when it is going to be secured by a trust deed or
mortgage lien against our homes
FIRST – PANTOGRAPHIC SECURITY PAPER
When you first obtain your closing documents, the first task should be to locate the
promissory note and print it from the file or copy it onto the following type of paper:
This is pantographic security paper. It can be purchased in 8 ½ x 11” or 8 ½ x 14”
dimensions, in 25 Lb. or 60 Lb. Bond Void Blue, Pantograph on one side, 1-up on 8.5" x 14"
sheet. You can usually buy 250 sheets/pack and it usually has ten or twelve security features.
It is also compatible with copiers, laser, inkjet and offset presses.

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 I will recommend one brand, but there are many more that you can find yourself. Kan't
Kopy® K2 is one-sided security paper that has 10 security features with counterfeit resistant
printing to secure originals. The security features include:
● Pantograph (hidden message) - When an unauthorized person tries to copy or scan the
original, a "Void" hidden message appears.
● Color Match - The original color of Kan't Kopy® paper can not be reproduced with any type
of copy process.
● Kan't Kopy® Artificial Watermark - An artificial watermark is manufactured onto the paper.
● Anti-Copy Coin Rub - Watermark on the back turns black when rubbed with a coin.
● Erasure Protection - Guards against erasing/modifying and scanning.
● Acid Free - Preserves documents for a longer period of time.
● Toner Grip - Enables ink from your printer to stick to the paper without it flaking or
smudging.
● UV Paper Dull - Ultraviolet light will not brighten the paper.
● UV Paper Glow - Paper has embedded security fibers only visible under ultraviolet light.
● Chemically Reactive - Spots will appear if chemicals are used in an attempt to alter a Kan't
Kopy® document.
You can find more information and similar products at https://www.blanksusa.com and
search the Internet for “pantograph security paper”.
In security printing, void pantograph refers to a method of making copy-evident and
tamper-resistant patterns in the background of a document. Normally these are invisible to
the eye, but become obvious when the document is photocopied. Typically they spell out
"void", "copy", "invalid" or some other indicator message.
Void pantographs work by exploiting the limitations and features of copying equipment.
A scanner or photocopier will act as a low-pass filter on the original image, blurring edges
slightly. It will also not be perfectly aligned with the directions of the document, causing
aliasing. Features smaller than the resolution will also not be reproduced. In addition, human
vision is sensitive to luminance contrast ratio. This means that if a grey region consists of a
grid of very small dark dots the filtering will produce a lighter grey, while a region of larger dots
will be affected differently ("big-dot-little-dot"). This makes it possible to see a pattern that
previously was invisible. Numerous variations exist, including printing the marks using a
raster of lines in one direction on a background of lines in another direction, or using fine line
patterns that alias into a visible moire pattern when copied.

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 SECOND – EMBOSSED SIGNATURE SEAL
When you affix your signature, use blue or red indelible ink and then emboss your
signature with an embossing stamp such as the one illustrated here. Be sure to emboss over
part of your signature with the image you have created for your embosser seal.

I found this example at www.thestampmaker.com. It's a

desktop embosser you can customize with your own symbol or
art and this gives a crisp, clear seal impression. You can send
your artwork or image in one of the following file formats:
tif, .pdf or .eps.
This is an example of what the embosser does to paper and
the reason why it cannot be counterfeited or forged:

It costs only about $50 or $60 and ships in one business

day. Use this seal to affix your custom artwork or symbol over
your original signature on the pantagraph paper. If the bank
ever tries to foreclose, it will be obvious that unless it has this
original document, identified by your security paper and
embossed and sealed signature, the bank can never foreclose.
No one can tell you what your signature must look like or
how to make your signature, this freedom is what makes your
signature legal and binding and worth money. You will be able
to us these two practices in every note you ever sign. These
two steps will eliminate the bank fraud, forgery and
counterfeiting forever, we just have to pass this information
around to everyone and encourage everyone to order his own security paper and embosser
seal and use it at every chance.
If you can see what I see, we can use these two simple methods to end the note fraud
and we don't even need to write more laws or file lawsuits. Remember that your signature is
your private property and it is worth lots of money. You have the right to decide how and
when it's used. This is your responsibility. If we act responsibly using the information in this
article, we can eliminate many of the consumer debt and corrupt banking and courtroom
practices that we have witnessed in recent years.
THIRD – NEW TECHNOLOGY – BLOCKCHAIN
A blockchain is a type of distributed ledger, comprised of unchangeable, digitally
recorded data in packages called blocks.
These digitally recorded "blocks" of data is stored in a linear chain. Each block in the
chain contains data (e.g. bitcoin transaction), is cryptographically hashed. The blocks of
hashed data draw upon the previous-block (which came before it) in the chain, ensuring all
data in the overall "blockchain" has not been tampered with and remains unchanged.
A distributed ledger that is a consensus of replicated, shared, and synchronized digital
data geographically spread across multiple sites, countries, and/or institutions.

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 Blockchain applications can allow multiple parties to jointly sign documents, legally
binding and replacing the need to having them notarized in such a way that no one can
repudiate it’s date, content or signatures.
Documents are encrypted, uploaded and their required signers selected, granting them
immediate file access. Participants authenticate themselves, download, decrypt, review and
digitally sign the documentation. Finally, when fully signed, documents are notarized.
It’s useful on contracts, company workflows or any paperwork between parties; but it
can also be used by oneself to record immutable proofs, like digital works attribution or
integrity checks.
I like to think of your “signature” as “the nature of your sign”. It is literally an expression
of one's will. It demonstrates consent, which leads me to the question for you, “When do you
ever give unconditional consent to anything?” You don't, not even in marriage. So why do we
affix our signatures to terms and conditions without any terms of our own? Why do we give
“blank checks” to the corporations, governments and banks? It's because no one ever asked
these questions or suggested that there was something to question about how we sign
agreements or express our consent.
Your consent should have terms. You can endorse a check, such as “without
recourse”. This means that when you endorse a check with this endorsement, it then requires
your bank to collect against the issuing bank if the check is no good. Today, the banks won't
accept this endorsement. The banks want you to do all the work, even though the bank is
making money from your account and you are paying fees.
Do you know who is using your signature once you sign documents with your doctor, or
retail business, or government agency? If I told you just a fraction of what is being done with
your signature, you would be fighting angry and rightly so. Banks and debt collectors pass
around your documents like their playing poker at a casino, with no restrictions and no
protections for your privacy or future and new obligations that are routinely created for you,
just because one day in the past you expressed your unconditional consent by affixing your
signature to a document with terms that a long list of attorneys probably developed over many
years and in which you are expected to sign with only a moment's cursory review. It's time to
act like a responsible adult and begin imposing terms on the use of your signature, restrict the
parties who can hold or have access to the terms you sign, impose an expiration date for your
signature, impose privacy terms and information management conditions with penalties for
any violations. Here is an example of what I call a “Data Retention Policy” that can be
ascribed to your signature as an endorsement, you simply include the phrase “with terms”
above or before your signature.

http://tinyurl.com/zrfebhd
This is just one example, but I wanted to walk you into this idea because the best way
to use it will be when we are using the blockchain to express our agreements that are

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attached to our signatures on the blockchain, at an address on the Internet, with as much or
little privacy as you want.
Imagine a signature with two or multi-factor authentication (I don't recommend three-
factor authentication because it requires biometric data and that will become available to “the
surveillance system” and it's not necessary). It's kind of like having two or three signers on a
business bank account so that no one signature can authorize the release of funds.
Remember, this article is about how your signature is money, you should act like it.
Each time you express your consent with your signature, whether or not your sign your
name with the letters in your legal name, or your signature is a phrase or a symbol or a
blockchain address, it should be guarded with security and given with conditions and it should
have a value placed on it, you should place a value on each signature of yours that you use.

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 FOURTH – CONSENT
Many times, companies force upon us terms of service that include provisions that only
protect the interests of the company. That is not a problem in itself, you want companies to
protect themselves against liability, this is what facilitates them in providing products and
services that we want; however, in recent years, these provisions have become so
unreasonable that they are harmful to people or their customers.
One of the best examples is the “binding arbitration” clause, where you waive your
rights to resolve any disputes in the court system that you pay taxes to use when you have
disputes that need a resolution.
Another example includes the so-called “privacy statement”, in which nearly every one
that I’ve ever read tells us what privacy we do not have and how the company can violate our
privacy without penalty.
Even though these are “adhesion contracts”, meaning, “take it or leave it terms”,
unreasonable or unconscionable terms are void unless you fail to object or express your
option to exclude them. In other words, whether or not the contract gives you an option to
“opt out” of a provision, you can opt out of a provision that is not reasonable or unfairly
prejudices your interests by serving notice upon the company at an appropriate, physical
mailing address, such as its registered agent, general counsel, or dispute resolution address,
or all of these simultaneously.
Your “opt out” notice will simply include the date it was sent, and express your
objection and intention to exclude the particular provision or clause from the agreement. You
are not asking permission, you are simply placing the company on notice as to what terms
you are excluding, and you don’t have to explain yourself, sometimes I do, but it’s not
necessary. Be careful about creating conditions where you make a substantial change to the
company’s risk, such as interfere with its obligations, you only want to be specific to what
reasonably can be changed to protect your interests. Here is one example, while I usually
want to opt out of an arbitration agreement, sometimes I will only change it to agreeing to
“non-binding mediation” which is consistent with the intent of the agreement, but still gives me
access to my court system if we don’t reach a favorable resolution of the dispute (hopefully
we never have a dispute).
When you express your consent, be very careful about the terms to which you are
consenting and realize that you do not always have to “take it or leave it”. These are
corporations, “persons” without a conscience, we are people, we have a conscience, we have
natural rights, corporations are permitted to exist by people, they are subservient to people,
act like it. This is no different than parents acting like parents with their children, or the boss
being the boss on the job, or the people who created government in the first place, who then
provide indemnification for the business (corporation) to function in our society by providing
products and services to the people who created its rights in the first place.

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The Dated and Sealed Signature Stamp
On final measure you can take immediately is to date and seal your signature, whether
or not you are signing a piece of paper or using an electronic signature online, you can have
the same security.
For paper or electronic documents, you can affix your own symbol stamp using a Kanji
or Chinese letter stamp. These can be custom made where you choose what symbols you
want represented for your signature (the nature of your sign).
The script was invented by the Chinese and adopted by the Japanese around the
middle of the 6th century AD.
Kanji are ideographs meaning that the whole character conveys a meaning rather than
just a sound(as in the case of hiragana and katakana letters). Kanji were originally drawn as
pictures from nature but gradually transformed to more generalized representations. By the
end of year nine Japanese students will have learned 1945 kanji as prescribed by the
Japanese Ministry of Education (the Jouyou Kanji). There are many many more less
commonly used kanji totaling over 5000. Kanji originally came from China about 3000 to
4000 years ago. The ancient Chinese drew pictures of various things around them. These
pictures have gradually simplified and have taken on a square shape to make them easier to
write. After many years, numerous Kanji were made by people. Chinese Kanji came to
Japan about 2000 years ago. Until then, there were no letters in the alphabet.
This website appears to be among the best for getting your Hanji online,
http://www.kanji-hanko.com/ Here is an image of what one may look like:

If you happen to be traveling to Japan and need to sign legal documents, your usual
signature is no longer acceptable in Japan. You are required to have your own seal stamp
called Inkan/Hanko(印鑑/判子). What is Inkan/Hanko? Hanko/Inkan was brought from China
in 4th century. After the introduction of seal, Japanese seal culture has began until today. One
of the famous Inkan is “King of Na gold seal”.

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Where to get Inkan/Hanko? You may see signs says “ 印鑑 / 判子” in the cities and if you
search on google, many sites come up. However, there are varieties of seal materials (an
elephant tusk is the most popular), Kanji fonts, stroke styles of Kanji, price ranges, and types
of seal (such for bank account, company, your identification, etc…).
For Mitomein(the casual acceptance), you can get it at these stamp shop or
online(http://www.moriinbo.com/catalog/kana_g.html) for few bucks, but these can not be
used for formal documents to prevent the copy.
There are many vending machines where you can buy your Inkan/Hanko in Japan, if
you happen to be traveling there or intending to live there for any length of time and need to
sign legal documents. You can look for vending machines in stores called “Don Quixote”, the
largest retailer in Japan, in which you will find the name “SELF-HANKO BOX” where you can
create your own and purchase it in minutes.
What if I want to sign something digitally?
In today’s digital age more and more business transactions are
taking place online. It seems that now more than ever, almost all
documents are sent and received via the Internet and physical
paper is being used less and less. Say you want to hire a graphic
designer working overseas to create your website. How will you get
this person to sign a contract when hiring him or her?
Instead of sending your new employee paperwork through
the post office, why not look into a way to get the signature on the
contract digitally? Creating a scanned digital signature for signing online and computer-based
documents is now easier than ever. It is a fairly simple process. You will need a piece of
paper, your favorite pen and a scanner.
1. The first thing to do is to simply write your signature on a piece of paper.
2. Scan it with your scanner.
3. Save the resulting image as one of the more commonly used graphic file formats, like GIF,
PNG or JPG.

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 You can now use this
signature and place it into any text document. For example, if you are sent a contract in
Microsoft Word that needs signing, you can easily just insert your newly-created digital
signature. It’s a lot easier than printing the contract out, signing it, scanning the contract, and
then sending it.
In MS Word 2010 all you have to do is click on the “Insert” tab and then “Picture.” Now
browse your computer to find where you have saved your scanned signature, select the
image, and then click insert.
It’s that simple. You can take your scanned digital signature, resize it and place it
exactly where you need it to be on the document. Once you’re satisfied, save the contract
with these changes made and send it back via email.
Another way to get a great digital signature to use is through My Live Signature, which
is a handy and free online tool.

Through this website, you can get a digital signature in three different ways.
One way is to use the site’s signature creation wizard in order to make an “imitation
digital signature” of your own. All you have to do is enter your name and then pick from a list
of different styles of handwriting, specifying size, slope and color in order to create a personal
digital signature for yourself.
If you are steady with the mouse, you can also try drawing your signature on the
screen and then have it saved as a digital signature.
But for the most authentic results, you can use your real scanned signature. Send the
scanned image to My Live Signature’s team of designers, who will quickly spruce it up for you
and send it back. This is great option for those who are not very happy with the scanned
image their scanner produced, but don’t really know how to improve their scanned electronic
signature.
As you can see, making your personal digital signature and using it to sign documents
on your computer couldn’t be any easier. With access to a scanner, you can create your
digital signature once and never have to sign your name manually again.

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Anti-Forgery, Personal Code Ink by Montblanc
SINGAPORE, 22 April 2010 – Montblanc, one of the
leading brands in the world of luxury has launched an
exclusive set of writing instruments which allows
customers to own a Personal Code Ink.
A new innovation for writing instruments, Montblanc is
proud to be the first brand to offer a writing set that
combines high-end writing culture with absolute
individuality.
Personal Code Ink contains an invisible, inimitable
botanical code comparable to the human DNA code. It
cannot be copied, viewed under a microscope or re-
engineered and is therefore truly unique. Verification of the Personal Code Ink on signed
documents, memorabilia and other goods is only possible by Montblanc in a laboratory test
where a forensic method reliably proves if the Personal Code Ink has been used for the
writing or not.
To ensure that absolutely nobody can forge your signature, Mont Blanc has unveiled a
Personal Code Ink that features a botanical ingredient that prevents falsification of signatures.
The unique ink was launched recently in Dubai and is said to be comprised of components
containing an invisible, inimitable botanical code which is similar to the human DNA code.
Said to be “matchless’ and as individual as one’s fingerprint, Mont Blanc executive vice
president for product strategies and development, Jean Marc Pontrue says “Only one person
will own this ink – you”. The Personal Code Ink Edition is presented in a precious wooden
box with personalised gold-plate. Exclusively designed for the Personal Code Ink Edition, the
Meisterstuck LeGrand Signature Pen is a felt-tip pen in classic Montblanc Meisterstuck
design. With gold-plated fittings, it is tailor-made to permanently apply a signature onto almost
every surface. The black precious resin pen features a gold-plated clip, gold-plated rings
embossed with the Montblanc brand name and emblem inlaid in the pen’s cap.
The Meisterstuck Solitaire Barley LeGrand Rollerball Platinum-Plated is also
exclusively available within the Personal Code Ink Edition. With gold-plated fittings, the cap
and barrel are platinum plated with a Barley guilloche pattern. The clip is set with a brilliant-
cut diamond and the cap features the Montblanc emblem in mother-of-pearl.
I seldom believe that the legal system provides a remedy for anything, let alone the
mis-use of your signature of identifying information; however, recent Florida legislation is very
encouraging.
Data Breaches: Statutory and Civil Liability, and How to Prevent and Defend A Claim
In today’s world, no one is immune from the risk of a data breach. Hardly a week will go by
when the news does not report on a company or government entity suffering a catastrophic
loss of private and privileged confidential personal data. These losses are not just happening
to the unsophisticated, but to major companies and organizations. In June of this year the
Federal Government’s Office of Personnel Management suffered a data breach that exposed
the personal data of at least 4 million current and former federal employees.2 The loss of
information from Sony Pictures, Target, and many others highlights that no organization is
immune.3 A study by the Ponemon Institute out of Michigan found that the average cost of a
corporate data breach last year was $3.5 million.4 The U.S. Department of Defense noted
that “[e]very year, an amount of intellectual property larger than that contained in the Library

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of Congress is stolen from networks maintained by U.S. businesses, universities, and
government departments and agencies.”5 For anyone doing business today, an
understanding of the basis for potential liability—both statutory and civil—for such losses of
information is essential, not only to limit liability or to keep your organization out of the news,
but to protect and professionally service your clients and business partners.
COMMON CAUSES OF DATA BREACH
Numerous studies and extensive research by insures and computer securities experts have
pinpointed the eight most common causes for a data breach. While not exhaustive, these
“eight sins” of computer security provide an excellent understanding of the mechanics of a
data breach failure:6
1. Weak/Stolen Credentials (Passwords)
Weak or lost passwords are the key that unlocks to door to a computer system for maleficent
outsiders. Studies show 4 out of 5 breaches systems are caused by this, which makes sense,
as even the most sophisticated system remains vulnerable if the bad guys are given the keys.
Solution: Use Complex passwords. Never share passwords. Update and change Passwords
on a regular basis. Constantly remind users to protect passwords and system protocols.

2. Back Door Failures

These failures occur when a weakness in a program or protocol exist, opening the door to
outside world. Such failures are constantly being probed and tested by hackers for
vulnerabilities, and they often allow them to bypass passwords and security protocols.
Solution: Maintain updates and patches on all software and hardware.
3. Malware
Although not strictly a “virus”, malware is, by definition, malicious software that is loaded
without knowledge of its true impact or intent. It is often hidden in a program a user thought
was beneficial. Hidden behind such “useful” programs, the malware opens up access points
to exploit a system.
Solution: Strictly prohibit employee downloads of non system programs. Do not open emails
where their origin is unknown. Never install programs sent by email or email link. Maintain a
rigorous anti-malware scanning system regiment that is updated often.
4. Social Media/Scams/Phishing
Either through social media or emails, hackers will try to gain access to closed systems
through elaborate ruses or promised monetary gain. Through such means an employee will
be convinced to provide an access point to the outsiders or to provide security keys or
passwords.
Solution: Constantly remind users to never share passwords or protocols to outsiders.
5. Numerous Permissions
Large numbers of full permissions in use are a boon to hackers, as each one represents the
keys to the kingdom. With a great number of full access permissions in use, a business is
more likely to lose track of who has the permissions, and fail to close accounts of ex-
employees.
Solution: Where possible, provide limited permissions to users. Where full permissions are
required, strict control and monitoring is required.

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6. Insider Threats
This comes in two varieties: The “careless” and the “rogue”. The careless employee will
provide his password or system protocols to outsiders, not for a malevolent purpose, but out
of ignorance of the repercussions. The rogue will seek to exploit his or her knowledge of the
system with the intent of causing harm.
Solution: Maintain employees’ awareness levels on the importance of system security,
including password protection to ward against the careless employee. To deal with the rogue
employee, monitor system use. When uncharacteristic use is detected, investigate. Do not
delay to deny system access when any indication of a problem arises. Shut down access to
terminated employees promptly.
7. Physical Vulnerability
An open desktop is a portal to your system. A system left on after hours in an unsecured
location makes it easy for someone to gain access and download data.
Solution: Maintain and control the physical building and access. Secure or log off systems
that are not in a secure location.
8. Improper Configuration
A system is only as good as its protocols, hardware and programs. Outdated or subpar
designs of hardware and programs are chum in the water to the hungry cyber shark.
Solution: Professional design and management of hardware systems is a must. This is not an
area where the “jack of all trades” businessman or woman should tread. The money spent on
professionals will provide dividends for you, your business, customers and business
associates and provide confidence in you and your organization.
STATUTORY AND CIVIL LIABILITY
The recent increase in the number of cyber-attacks has been matched with an increase in
liability to companies and individuals for related data loss. Two types of legal liabilities
generally arise from data breaches: statutory and civil. While both will impose liability on the
unprepared, the manner of liability and how corporate counsel can protect their companies
differ widely.

STATUTORY LIABILITY
Statutory liability for a data breach comes in two forms: federal law and state law. The federal
Gramm-Leach-Bliley Act requires financial institutions to explain their information-sharing
practices to their customers and to safeguard sensitive data.7 The Health Insurance
Portability and Accountability Act of 1996 (“HIPPA”) contains specific privacy and security
rules which mandate ‘encryption and protection of patients’ electronic protected health
information (ePHI) held on networks. Repercussions for HIPAA violations related to data
breaches can be severe. Recently two health care organizations agreed to settle charges that
they potentially violated theses safeguards and agreed to monetary settlements of a
combined $4,800,000—the largest HIPAA settlement to date.8 Additionally, the regulatory
duties and liability companies are now exposed to come in many additional forms, depending
on the specific nature of the business. A data breach may require disclosure to various federal
agencies including, but not limited to: the Securities Exchange Commission (SEC)9, Federal
Trade Commission (FTC)10 or the U.S. Department of Justice.11

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In addition to the federal mandates, 46 states, as well as the District of Columbia, Guam,
Puerto Rico and the Virgin Islands, have enacted legislation requiring private or government
entities to notify individuals of security breaches of information involving personally identifiable
information.12
Florida’s law is a good example of the type of state law imposing liability and penalties for a
data breach as it is one of the strictest in the nation. In Florida, where the home office of
Becker & Poliakoff, P.A. is located, a new statute defining what is “protected data” and
imposing penalties for failure to take action after a data breach came into effect in July of
2014. The law, signed by Governor Rick Scott on June 20, 2014, is called the Florida
Information Protection Act of 2014 or “FIPA.” The law is one of the strictest enacted in the
United States. FIPA repealed Florida’s prior data breach notification statue, FL. Stat. §
817.5681, and replaced it with § 501.171, and made modifications to Florida law to reach
businesses, government and other entities outside the state.
FIPA provides, like the prior statute, that “personal information” includes first name or first
initial with the last name; social security number; driver’s license number or other
government-issued ID number: financial account number; or credit or debit card number with
security codes. FIPA added that “personal information” will now also include any information
about an individual’s medical history, mental or physical condition, or medical treatment/
diagnosis; or health insurance policy number or subscriber identification number, and any
“unique identifier” used by a health insurer. FIPA further enlarges the definition of “personal
information” to include any information that would allow access to an online account. Of
importance is that this enlarged definition would include log-in information for social media
platforms such as Facebook or Twitter. This appears to be the broadest definition of “personal
information” in the United States. The exception to “personal information” covered by FIPA is
information already made public or information that is encrypted.
FIPA covers all commercial or governmental entities that acquire, maintain, store or use
personal information of individuals in the state. Importantly, FIPA did away with the language
limiting Florida’s protection of a breach of personal information to those who “conduct
business” in the state alone. Thus, companies in other jurisdictions, including internationally,
should assume this statute will apply if a breach of security occurs which affects any Florida
resident.
Under FIPA, the time period to report a breach of personal information has been reduced from
prior Florida law to 30 days from the time the breach is discovered. However, the statute
authorizes the Department of Legal Affairs to grant up to 15 additional days to provide notice
for good cause if the request for extension of time is provided in writing to the department
within 30 days of the breach.
If 500 or more persons are affected by the breach, FIPA requires that notice also be provided
to the Florida Department of Legal Affairs. If the breach affects 1,000 or more persons,
additional notice must be given to all nationwide consumer credit reporting agencies.
No such notice is required to affected individuals if, upon conducting an investigation and
consultation with law enforcement, it is reasonably determined that no affected individual “has
or is likely to suffer identity theft or any other financial harm.” However even “where no harm”
has been determined, the covered entity must still provide a written notice to the Florida Legal
Affairs Department within 30 days of the determination that “no harm” occurred. In all cases of
a data breach any law enforcement agency may order a delay in providing notice if the law
enforcement agency makes a determination that such notification would interfere with a

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criminal investigation. Thus FIPA mandates prompt coordination with law enforcement after a
breach.
Third-parties that maintain “personal information” for a covered entity that suffer a data breach
have 10 days under FIPA to report the breach to affected covered entities. Following receipt of
this notice, a covered entity becomes responsible under FIPA for providing any necessary
notice within the 30-day notice period as required by the statute.
Although FIPA specifically mandates that it does not create a private cause of action, the
statute authorizes the Florida Department of Legal Affairs to bring an enforcement action
against covered entities. Failure to provide adequate notice under FIPA is a violation of the
Florida Deceptive and Unfair Trade Practices Act and is subject to following
civil penalties:

• $1,000 per day for the first 30 days

• $50,000 thereafter for each 30-day period or portion thereof for up to 180 days
• $500,000 as the maximum amount of total penalties for violations continuing more than 180
days
Accordingly, faced not only with federal law, which will vary depending on the type of
information your business is dealing with, but state law that will vary widely depending on the
locality of your business, the first step for any corporate counsel for a business entity
operating with information of customers, consumers, clients, patients or the public of any kind
should be to seek advice from outside counsel within their state as to the requirements and
liability required by the federal government for the type of business it is engaged in, and the
statutory requirements mandated by the state it operates in.
However, state and federal statues are not the only foundation of liability for a computer
breach. Aside from liability imposed by statute or code, civil actions based upon contract and
tort claims are common against companies that have suffered data breaches.

CIVIL LIABILITY
Typically plaintiffs bring contract-based actions when data breach occurs based upon a
contractual promise to protect personal information. Where no specific terms in the contract
regarding protection of personal information exist, savvy plaintiffs will point to promises made
to protect personal information and attempt to incorporate such promises into the terms of the
contract. Moreover, plaintiffs are increasingly claiming that an “implied contract” exists to
safeguard data if such data is collected from customers or clients.13 The theory of “third party
beneficiaries” is also used to widen the net of potential parties in data breach suits. In such
claims, those without a direct contractual relationship with an entity that suffered a data
breach will seek to enforce the terms of a company’s contract with someone else to safeguard
information. The hurdle for such claims is that the plaintiff must establish that the contracting
parties intended to actually benefit the plaintiffs.
Damages in breach of contract claims for data loss cases are often problematic for plaintiffs to
prove, but courts are becoming increasingly open to allowing such suits for remote or
unknown damages. The reason for this difficulty is that many plaintiffs in data breach cases
have not experienced any actual misuse/fraud from the breach. Accordingly, for those
Plaintiffs where the pilfered information has not actually been used, the argument is that they
are at an increased risk of future harm. (i.e. that their information will be used in the future
against their business interests or to commit future fraud and theft). Where data or trade

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secret information is lost, the hurdle is lower for a plaintiff who can show his intellectual
property is being used in the marketplace.
Tort-based theories of liability in data breach cases usually center around negligence and/or
negligent misrepresentation claims. Under such claims plaintiffs generally allege that the
breached defendant had a duty to exercise reasonable care in protecting the plaintiffs’
personal information, but breached that duty by failing to establish adequate protocols or by
failing to provide timely notification of the breach. In such claims the plaintiff must
demonstrate: a) the existence of a duty to exercise due care; b) breach of that duty; c)
causation; and d) damages.
As set forth in more detail below, plaintiffs will face the same requirements to show
recognizable injury and causation, but must also show that the defendant owed them a duty
of care. When negligent and/or intentional misrepresentation is included in a claim the plaintiff
must prove: a) that a material misrepresentation existed; b) it was made with negligence
(without reasonable grounds that it was true); c) that the plaintiff relied on the statement(s)
and; d) that as a result plaintiff suffered injury.
For tort claims, a usual defense that is raised relates to the economic loss doctrine, which
seeks to prevent a purchaser of a product or service from recovering in tort for economic
losses where no additional damage to person or property exists. The economic loss doctrine
requires such plaintiffs generally to maintain the action on a contract theory alone. Although
often effective, each state’s laws on economic loss doctrine vary, and many states have seen
an erosion by the court’s of the economic loss doctrine’s application.
WHAT TO DO BEFORE AND AFTER A BREACH
A. Insurance-Before
Faced with the daunting numbers of data breach incidents and increased liability under
federal and state law, as well as through civil lawsuit exposure, the insurance industry has
responded with numerous products to insure against the increased risk . It was recently
reported that one in three companies now has insurance designed to protect against data
breaches. Marsh LLC, a New York insurance brokerage firm, recently noted that cyber
insurance policies sold to retailers, hospitals, banks, and businesses rose 20 percent over the
last year.14 Such insurance is designed to fill the holes in coverage that may exist in
traditional commercial policies. Initially, such policies were designed to protect against data
loss and exposure of personally identifiable information, but have grown to include loss of
trade secret material and other confidential data.
Last year, Target Chief Financial Officer John Mulligan disclosed that the high-profile 2013
data breach of the retail giant cost Target $61 million in out-of-pocket expenses during the
fourth quarter, of which $44 million was covered by insurance. Thus, although costly,
insurance was able to alleviate the devastating costs of the cyber breach to the company’s
bottom line.
Both first-party and third-party coverage is generally available in the marketplace. First-party
coverage relates to costs resulting from the insured’s actions as a result of the breach (i.e.
costs for hiring professionals to assist in the investigation and response; attorney fees to
advise on notification and other legal requirements; crisis management firms; computer
forensics firms, etc.). Third-party coverage is designed to indemnify liability to third parties
allegedly resulting from a covered claim. Such cyber-risk policies are generally available only
on a claims-made basis. In a claims-made policy, coverage is triggered when a claim is made
against the policyholder during the policy period. This is important as it often takes significant

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time to realize a cyber breach has taken place. Thus, a new policy may well apply to a new
claim that is based on a breach which occurred before the policy inception. An analysis of
your business operations and potential liabilities should be the first order of business with
your attorneys and insurance agent to secure the appropriate insurance coverage.
B. Notice-After
After a breach has been detected, the first thing that must be done is provide notice. This
notice should be given to the following entities, depending on applicable state and federal law:
1) state and federal regulators or agencies responsible for monitoring applicable cyber
material and breaches; 2) the customers and consumers whose information is subject to the
breach; and lastly 3.) your insurers. After a data breach, especially one involving the
disclosure of “personal information,” notice to regulators, law enforcement and affected
individuals is often required by statute or rulemaking as discussed above. Business entities
responding to a network/privacy breach must additionally act in compliance with contractual
notice obligations. This notice may be mandated to be given to the clients or customers of the
corporation in specific times and manner based upon an agreement or contract the
corporation suffering the breach has with its clients or customers. Moreover, the policies of
insurance the corporation has covering such breaches likely has specific notice
requirements. Every cyber risk policy contains a section describing the insured’s duties in the
event of a claim or loss, and when and how notice of a loss must be provided to the insurer is
set forth in the policy. As network and privacy liability policies often include provisions of both
first-party and third-party insurance, the insured’s duty to give notice may depend on the type
of exposure at issue. When the breach arises, you should immediately seek a quick
consultation with your outside counsel who is familiar with your policies, to meet the
requirements of notification set forth in the policy.
C. Defenses
It is an old saying, but a true saying: The best defense is a strong offense. In the data breach
liability world, this means that having a robust plan and procedures in place to prevent a data
breach will be central to showing that your company met the standard of care in doing
everything it could to protect the data in its possession. Similarly, compliance with state and
federal notice requirements, as set forth above, will alleviate the specter of state or federal
liability on top of civil liability.
One of the major threats in a cyber breach case is a class action claim. The proliferation of
cyber security data breaches has mirrored an increase in class action data breach litigation.
Most class actions filed after a data breach occurs seek injuries for increased risk of “identity
theft”, fraudulent financial charges on credit cards, and costs incurred from having to enroll in
third-party credit-monitoring services. However, not every data breach results in an injury.
Accordingly, the major defense to any data breach claim is that the claimant does not have
standing as no impact or real injury has occurred. Case law supports that this can be a
significant hurdle to plaintiffs’ claims against you and your company, and an invaluable
defense.
Standing derives from Article III of the U.S. Constitution, which limits the powers of the federal
judiciary to the resolution of “cases” and “controversies.” U.S. Const. Art. III, §2. A plaintiff
must plead and ultimately prove that he or she has suffered sufficient injury to satisfy the
“case or controversy” requirement. A plaintiff must allege at the pleading stage: (1) an injury-
in-fact that is concrete and particularized, as well as actual or imminent; (2) that the injury is
fairly traceable to the challenged action of the defendant; and (3) that the injury can be
remedied by a favorable ruling. If the plaintiff cannot satisfy this, the claim must be

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dismissed.15

Although businesses operating in today’s world face increased threats and liabilities related to
a data breach, those businesses which partner with a strong and knowledgeable law firm that
is well versed in cyber law and data breach claims are ready for today’s challenges and
opportunities. Your outside counsel should work not only with your business on risk
management and claim avoidance, but also with your computer technology professionals and
personnel to successfully navigate the dangerous waters of today’s business environment
where a data breach is a constant and continual threat.

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References
--------------------
1 See Prepared Remarks of Robert S. Mueller, Director, FBI, RSA Cyber Security Conference
(Mar. 1, 2012), http://www.fbi.gov/news/speeches/combating-threats-in-the-cyber-
worldoutsmarting-terrorists-hackers-and-spies
2 See, Office of Personnel Management - Special Announcement. Information About the
Recent Cybersecurity Incidents; Updated June 23, 2015. https//www.opm.gov/…/a…
3 The New York Times, Feb. 5, 2015 "9 Recent Cyber Attacks Against Big Businesses" by
Kevin Granville. http://www.nytimes.com/interactive/2015/02/05/technology/recent-
cyberattacks.html?_r=0
4 The Insurance Journal. May 7, 2014. "Company Data Breach Now Costs $3.5M on
Average: Ponemon Study."
5 Dep’t of Defense, Strategy for Operating in Cyberspace, at 4 (July 2011), available at http://
www.defense.gov/news/d20110714cyber.pdf.
6 Compiled from: 2014 Cost of Data Breach Study: Global Analysis Benchmark research
sponsored by IBM Independently conducted by Ponemon Institute LLC May
2014 http://www.935.ibm.com/services/multimedia/SEL03027USEN_Poneman_2014_Cost_of
_Data_Breach_Study.pdf and California Data Breach Report October 2014; Kamala D. Harris,
Attorney General California Department of Justice
https://oag.ca.gov/sites/all/files/agweb/pdfs/privacy/2014data_breach_rpt.pdf
7 15 U.S. Code § 6801
8 HHS press release, May 7, 2014. "Data breach results in $4.8 million HIPAA
settlements." http://www.hhs.gov/news/press/2014pres/05/20140507b.html
9 Securities and Exchange Commission. CF Disclosure Guidance: Topic No. 2 October 13,
2011. http://www.sec.gov/divisions/corpfin/guidance/cfguidance-topic2.htm
10 Federal Trade Commission 2014 Privacy and Data Security Update. January 2014-
December 2014. https://www.ftc.gov/system/files/documents/reports/privacy-data-security-
update-2014/privacydatasecurityupdate_2014.pdf
11 Best Practices for Victim Response and Reporting of Cyber Incidents Version 1.0 (April
2015)http://www.justice.gov/sites/default/files/criminal-ccips/legacy/
2015/04/30/04272015reporting-cyber-incidents-final.pdf
12 National Conference of State Legislatures Report June 11, 2015. "Security Breach
Notification Laws." http://www.ncsl.org/research/telecommunications-and-information-
technology/security-breach-notification-laws.aspx
13 In re Hannaford Bros., 613 F.Supp.2d 108 (D. Me. 2009), where the court held:
The district court correctly concluded that a jury could reasonably find an implied contract
between Hannaford and its customers that Hannaford would not use the credit card data for
other people’s purchases, would not sell the data to others, and would take reasonable
measures to protect the information. In re Hannaford, 613 F.Supp.2d at 119. When a
customer uses a credit card in a commercial transaction, she intends to provide that data to
the merchant only. Ordinarily, a customer does not expect—and certainly does not intend—
the merchant to allow unauthorized third-parties to access that data. A jury could reasonably

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conclude, therefore, that an implicit agreement to safeguard the data is necessary to
effectuate the contract. In re Hannaford Bros., 613 F. Supp.2d at 119
14 The Boston Globe. "More firms buying insurance for data breaches Companies seek
added protection" By Deirdre Fernandes FEBRUARY 17, 2014 https://www.bostonglobe.com/
business/2014/02/17/more-companies-buying-insurance-against-hackers-and-privacy-
breaches/9qYrvlhskcoPEs5b4ch3PP/story.html
15 See, Clapper v. Amnesty Int’l USA, 133 S. Ct. 1138, 1143 (2013).; Vides v. Advocate
Health & Hosps. Corp., No. 13-CH-2701 (Ill. 19th Judicial Cir. May 27, 2014).

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DEBT FREE COLLEGE DEGREE

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 This program will show you how to pay for college without getting into debt, and
especially long term personal debt. It will also show you how to replace your pension fund if
it's not sufficient for your lifestyle or if you just want more money every month.
Traditional habits and beliefs are difficult to change, but we can adopt new habits and it
becomes easier when there is a necessity for making changes in how we do things or what
we have understood or believed for a long time.
Government loans (student loans that are guaranteed by the Department of Education)
are probably the most sinister plan developed in modern society. It's like playing with fire, and
without getting into all the details I've witnessed over the last twenty years, just believe me
when I tell you that I'd much rather owe the IRS $1,000,000 than owe the DOE $20,000.
The next options for tuition funding can be undertaken either before, during or after you
attend college. The trick is being able to pay for tuition now if you do these things later.
The third option comes in three parts. Any of them can be done simultaneously while
you're getting other funding and attending college. But I think you will find that these really
may be life-changing to a point where any one of them can turn into a multi-million dollar
project that creates cash flow for many years to come. Part I is my own idea which I have
never formally shared with anyone, but if you want to give it a chance, my interest may
include investing in it at a later time.
The fourth option explains how to use an asset to pay for the liability. This can work
much like the third option, and it may be life changing as well.
Before considering these, you will want your child to be considered “self-
supporting” so that the university and lenders do not expect money to come from the
parents as co-signers. This will facilitate him in qualifying for many more grants and
loans than if you co-sign for him. Don't continue to claim him as a dependent on your
tax return.
Either way, if you seriously consider this list of options and follow through, you may
soon discover that college tuition is not really a challenge. Maybe the first 18 months will be
difficult, or maybe the first 6, I'm not sure, but if you follow through, I think you will be very
happy with the results and they may be life-changing.
1. Peer-to-Peer Lending
Investors are looking for opportunities to lend cash for tuition. Companies such as
CommonBond and SoFi connect offer lending options, such as fixed rates and repayment
deferment, similar to those provided by private banking institutions and the federal
government. These may be a way to avoid government loan programs, which in my opinion
can be very detrimental when it comes time to pay.
CommonBond is a marketplace lender that lowers the cost of student loans for
borrowers and provides financial returns to investors. The company refinances graduate and
undergraduate student loans for graduates of over 2,000 universities, saving the average
borrower over $14,000 over the life of the loan. CommonBond also provides in-school loans
to current MBA students at 20 programs in the United States. The company, which launched
nationally in September 2013, is on track to fund or refinance more than $500 million in
student loans by the end of 2015. See also http://www.lendingmemo.com/p2p-lending-sites/

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2. Crowdfunding
Crowdfunding is a method of raising capital through the collective effort of friends,
family, customers, and individual investors. This approach taps into the collective efforts of a
large pool of individuals—primarily online via social media and crowdfunding platforms—and
leverages their networks for greater reach and exposure.
Crowdfunding is essentially the opposite of the mainstream approach to business
finance. Traditionally, if you want to raise capital to start a business or launch a new product,
you would need to pack up your business plan, market research, and prototypes, and then
shop your idea around to a limited pool or wealthy individuals or institutions. These funding
sources included banks, angel investors, and venture capital firms, really limiting your options
to a few key players. You can think of this fundraising approach as a funnel, with you and
your pitch at the wide end and your audience of investors at the closed end. Fail to point that
funnel at the right investor or firm at the right time, and that’s your time and money lost.
Crowdfunding platforms, on the other hand, turns that funnel on-end. By giving you, the
entrepreneur, a single platform to build, showcase, and share your pitch resources, this
approach dramatically streamlines the traditional model. Traditionally, you’d spend months
sifting through your personal network, vetting potential investors, and spending your own time
and money to get in front of them. With crowdfunding, it’s much easier for you to get your
opportunity in front of more interested parties and give them more ways to help grow your
business, from investing thousands in exchange for equity to contributing $20 in exchange for
a first-run product or other reward.
There are many platforms to choose from and www.gofundme.com is just one
example. You can create an online fund raising page, and share it on your social media
channels to connect with people who might be willing to contribute money for your college
tuition or related expenses.
You may also want to review this list, which includes gofundme:
http://www.crowdcrux.com/crowdfunding-sites-for-college-and-education-costs/
3. Creating Cash Flow – Part I
Here is a business idea that can be developed literally, or modified depending on how
you see it may be made to work better. There is a growing interest and need for the use of
aerial drones, both for professional applications such as site inspection and supervision in
construction work, and purely recreation. I think you will discover a specific niche market as
you go, and this is the key to being successful, don't try to provide this service to everyone on
the planet, focus only on the very qualified niche of customers who want and need your
service.
What is the service? You provide access to aerial drones in various places around the
country and around the world. You have all kinds of drones, even though you don't even own
one drone. Nearly every drone being used today is idle for most of the day and most of the
night, and this downtime can be turned into cash if you were to market the use of these
drones to people who want to use them.
The people who own the drones don't think like this, they like using their drone or
drones (some have more than one). What you can do is create a website that solicits these
drone owners to make their drones available at certain times. This information is updated on
your website by the owner.

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 Users log into the website and select the location where the drone is wanted and that
request is matched with an available drone for that time and place. The user can then
commandeer the drone on a price per time basis.
You will need an application, there are probably many available, that allows the user to
control the drone from a smart phone or other means so that the user can control the drone
wherever it is.
Maybe a construction company needs to conduct a survey over a site. There are
special purpose drones for this, but if you have access to drones in that area, you can provide
access to the construction company.
Suppose a couple wants to visit Frankfurt Germany and instead of researching the
town only online, they can use a local drone to fly over areas of interest and get more
information. The uses are limited only by your imagination.
I would suggest start locally and expand over time. I think much of the interest at first
will be from people who don't have a drone but want the experience of using one. You may
be able to avoid rules and restrictions, such as with the FAA or FCC simply because you don't
own any drones, and many of them may be in a foreign jurisdiction from where you reside.
This will require a bit more research but I think it will be a favorable situation as far as this is
concerned.
You need a website to manage the drone account and customer (user) accounts along
with a payment system, such as credit cards (merchant processor) and I would strongly
recommend you accept Bitcoin and well.
This is just one idea, it might work. There are many others that are well suited for
college students. Either way, this can and should be part of the learning experience, how to
create a cash flow and pay for something you want.
Creating Cash Flow – Part II
There is another way to create cash flow using services that are already established
and provide access to the equipment and marketing you would need to make some money.
People like to buy gimmicks such as figurines, toys and even useful things like coffee mugs,
tools and parts for things like baby toys, shoes and smart phone cases. One service sells
thousands of items like this, by the name of Etsy, at www.etsy.com. It's a drop shipping
service, you create your account and a sales page, and then promote items you want to sell.
You can sell items from Etsy or your own.
There is another service that provides finished products printed by 3D printers and
again, drop ships to your customer. You can create your own product, modify an existing
product or just sell and drop ship what is already listed. I researched Shapeways to
determine which items were the most popular and found that a stupid little figure themed “The
Little Sad Keanu” was sold more than any other item. It's just a little figurine of Keanu Reeves
sitting with his legs hanging off the edge of something with is elbow in his lap and chin in his
hand. This is an example of what people like to buy. It doesn't have to be the most popular,
but do your research to determine what might sell the best, even focusing only on your
neighborhood or local special interest groups.
If you can create or find a gimmick like this, and sell it via your Etsy account, you can
create a nice little cash flow for yourself. Maybe it's a little work up front, but later it may not
take much effort to reap the rewards.
Creating Cash Flow – Part III

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 This is what I call “Freelance Stints”. If you have certain skills, there are ways to
market them online. One example of people doing this is via www.fiverr.com. The people
listed in this website live all over the world and provide services such as create a single web
page for “one gig” which is worth $5. The idea here is not to make $5, but to promote your
services, because many times when I've used this service, I usually hire someone for 4 or 5
“gigs” and a list of jobs if the work is good. This is a way to get larger projects as well.
Other services include websites such as the ones listed here: http://beebom.com/best-
freelancing-websites/ I think it's just a matter of you doing enough research and imagining
the possibilities. Shop these websites as if you were looking for a service and you will most
likely discover a service that you can provide, maybe even in a competitive way.
Whether you’re looking for another way to pay the bills, seeking more professional
development opportunities or just love the freedom that freelancing offers, there’s no question
that millions of people have discovered the benefits of professional freelancing. As trends like
the digital nomad lifestyle grow in popularity, the number of freelance resources out there has
increased as well.
There are plenty of guides for striking out on your own, but as a freelancer, getting
higher-paying gigs isn’t just a matter of signing up on popular platforms. You’ll have to branch
out, establish a great portfolio of past work and maybe even prove yourself through tests that
showcase your skills. Here’s a list of the 15 best sites to find work as a freelancer.
1. Upwork
With over 1.5 million clients, Upwork (previously oDesk) offers something for every
type of freelancer. It accommodates both short- and long-term projects, hourly or per-project
work and expert-level and entry-level engagements. Regardless of where you are in your
career, Upwork is likely to have something for you.
2. Toptal
With a distinctly different approach than the other services on this list, Toptal is for
seasoned, talented freelancers. Passing Toptal's screening process gives you unparalleled
access to meaningful projects with great clients (JPMorgan, Zendesk, Airbnb, etc.) and fair
compensation (no low-bid contests). You’ll also be able to join the Toptal community for
frequent meetups and tech events.
3. Elance
Elance removes much of the hassle that comes with freelancing. You’ll be able to make
a profile right away without jumping through any hoops, enjoy payment protection to ensure
you’re always paid for the hours you work and more. You should note that Elance has joined
Upwork since the publish date of this article.
4. Freelancer
Unlike most other platforms, in addition to offering millions of projects, Freelancer
allows you to compete with other freelancers in contests to prove your skills. If you’re
competitive and confident in your expertise, it’s a great way to showcase your abilities and
attract more clients.
5. Fiverr.com
This website is a community of professional that provide nearly any modern service
you might need, from graphic design to accounting to book editing. The providers work in
“stints” or “gigs” priced at $5 each. The services provided are usually enough to get a small

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needed task done for your business, and if you need something more, gigs can be scaled up.
These are people from all over the world with among the most diverse talents.
6. Craigslist
Although most people see Craigslist as just a platform for buying and selling
miscellaneous things, it’s actually a great source of freelance jobs. You can easily browse for
local offerings if you prefer something in-office, or you can search by major cities if you prefer
working remotely.
7. Guru
This site lets you easily showcase your past work experience and offers a daily job-
matching feature to make sure you don’t miss out on any good opportunities. The Guru Work
Room lets you easily manage all your work.
8. 99designs
A platform for freelance designers, 99designs lets you compete in design contests and
get feedback as clients choose the best ones. It’s a great way for talented designers to prove
their talents.
9. Peopleperhour
This is a great platform, focusing on freelancing for web projects. If you’re a designer,
web developer, SEO specialist, etc., “peopleperhour” is definitely worth checking out.
10. Freelance Writing Gigs
Whether you’re a writer, editor, blogger, publisher or any combination of those,
Freelance Writing Gigs is a great option for freelancers who have a way with words.
11. Demand Media
Demand Media is a platform for creative types, including writers, filmmakers,
producers, photographers and more. You work with the site to create unique content, engage
audiences and promote your talents.
12. College Recruiter
As the name might suggest, College Recruiter is for college students or recent
graduates looking for freelance jobs of any type. In addition to being a source for part-time
work, it can be a great way to jumpstart your career.
13. GetACoder
This site is for freelance writers, web designers and programmers -- exactly what small
businesses need to get a website idea off the ground. GetACoder offers millions of smaller-
scale projects to choose from.
14. iFreelance
This platform accommodates some of the usual suspects of the freelancing world
(writers, editors, coders, etc.) but also features freelance marketers as well. Unlike other sites,
iFreelance lets you keep 100 percent of your earnings.
15. Project4hire
With hundreds of project categories, Project4hire makes it easy to identify jobs that suit
your skillset, without scanning through large volumes of posts. It’s great for coders,
consultants, designers and more.

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16. SimplyHired
With a wider range than most other freelance platforms offer, SimplyHired is perfect for
everyone from salespeople to construction workers. It includes a blog with hiring tips, a
company directory and location-based search.
Whether you’re a programmer, designer, expert, college student or something in
between, there’s a freelance platform out there for you.
You may also want to review your options at www.patreon.com as this seems to be a
great place for artists and creators of all kinds to demonstrate and promote their talents. It's a
great way to get a paycheck from your fans and followers.
Vimeo.com is similar. Vimeo is a video-sharing website in which users can upload,
share and view videos. It was the first video sharing site to support high-definition video.
Vimeo was founded in November 2004 by Jake Lodwick and Zach Klein. Most people are
aware that YouTube is the leading video sharing giant on the web today, but that doesn’t
necessarily mean that it has everything. In fact, a lot of people prefer another popular video
sharing service over YouTube, called Vimeo.
Magcloud.com is for self publishing. MagCloud is a web service started by Hewlett-
Packard and sold in 2014 to Blurb, Inc. that allows users to self-publish and distribute content
—for business or personal use—as a professional-quality .
And instead of promoting yourself on facebook and twitter, the most censored social
networking websites available, you may want to build your internet presence with www.gab.ai.
Gab is a San Mateo, California-based social networking service that allows its users, called
Gabbers, to read and write short messages of up to 300 characters called gabs. ... Gab
describes its mission as "to put people and free speech first" by limiting censorship to filtering
options made available to Gabbers.
And last but not least, a blockchain based video and social networking website is,
www.bitchute.com. It's just another method of promoting yourself. BitChute is a peer to peer
video sharing platform. Its mission is to put people and free speech first. It's free to join and
create and upload your own videos to share with others. BitChute was created to avoid
censorship and provide a more robust tool for video networking. Throughout 2015 and 2016
several prominent YouTubers reported a loss of video monetization when covering certain
topics or for having particular opinions. YouTube claimed this was due to tighter enforcement
of existing rules, even if true this will restrict the type of content that gets made and is a form
of censorship.
4. Buy An Asset or Cash Flow
This is usually way out of what most people think about making money or paying for
liabilities. College tuition is a liability. Your house is a liability (no, it's not an asset to you, it's
a bank asset though). Liabilities should be paid for with assets, not your labor and not directly
with debt. Use debts to buy assets, not liabilities. Most consumers use debt to pay for
liabilities, so you have to change this thinking if you haven't already. Rich people use debt to
buy assets.
Here's what you do. An asset is something that pays you on a regular basis. For
example, I can buy a restaurant and work in the kitchen as the manager or the cook, but
that's a job, not a pure asset. I can own the restaurant and keep the staff while they work for
the company and it will pay me provided the restaurant is managed properly and meets the
usual needs of a business. What assets can I buy? Those that pay. How do I pay for the

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asset? Your best source of capital for buying an asset is usually the seller; and don't think for
a moment this is a crazy idea unless you've failed at this many times before or even tried it.
This is how it's done. Where can I find assets to buy?
You need help because it's a better use of your time to have a business broker find the
deals that you want to find. Here is an example. I like to travel, my annual budget is about
$15,000. Why should I not buy a travel agency to book all or most of my travel needs at a
wholesale price or discount, and then use the profit from the company to offset my travel
budget liability? This is what you want to do, but you don't even need to buy an asset in the
same industry. I could own a car lot or a limousine service and use that to pay for my travel.
You find a business broker and tell him what you want to buy, he will look for those
deals and contact you when they become available. In some cases the broker will want to
qualify your ability to buy a business and those are details that are easily met with a little
planning. In other words, you don't need to be rich to buy a business. You can have a new
balance sheet and still find deals.
Start small, look for a landscaping or lawn maintenance business where there are a
few employees that have worked at it for at least a year and seem to be reliable employees.
Maybe one of them can be promoted to manage the business while you become the new
owner. You might find one for $40,000 and just use the seller to finance the deal, maybe
you'll have to put some money down and you might need escrow, but the broker can help you
with all of this. Once you have the asset, you can expand it by using the asset to buy more of
the same, and/or add a better marketing and advertising budget to increase your account
base.
I would avoid a business such as pest control because of all of the regulations and
licensing involved and those probably would not transfer from the seller to you with the
business and most times the seller has these licenses in his own name and not for the
business. You want to get something that makes you money and doesn't create a quagmire
of government regulations in which you have to get involved.
5. Infinite Banking
If our banking system survives, you might want to look into this idea. I would suggest
you only consider it after our encomic system has collapsed and the banks have completed a
significant consolidation. This plan is known as “Infinite Banking”. I copied this text from the
website, https://infinitebanking.org/
The Infinite Banking Concept (IBC) will teach you how to become your own banker by:
● Creating your own banking system using dividend-paying, permanent life insurance.
● Using available savings and cash flow to build your own “bank.”
● Capitalizing and establishing your plan.
● Using the method to finance your automobile purchases and even to finance your home.
● Expanding your system to accommodate all income through a system of banks to increase
your personal wealth.
● How a business can use the concept for equipment financing.
The possibilities are infinite! Becoming Your Own Banker, the Infinite Banking Concept
also reveals the truth behind the most important business in the world – banking. It provides
you with foundational financial wisdom that will help you understand personal finance like
never before.

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 I know this is a very short explanation of what is probably very new information you
may have not really considered before, but there is enough information here to allow you to
do further research and let me know if you want to discuss. Choose something and go for it.
6. Bitcoin
Bitcoin is a deflationary currency, that means it gains buying power the longer you hold
it. As we can see today, it's quickly gaining against fiat currencies around the world, and it's
the best performing currency by orders of magnitude. There are many ways to benefit from
the use of Bitcoin, but applying its benefits against a debt is a very simple plan. If you have a
liability, such as college tuition, you begin buying into Bitcoin the moment you decide you or
your children are going to college. The more money you put into Bitcoin and the earlier to
buy, gives you the most return, it's that simple. This has also been true of precious metals but
they have become so incredibly manipulated now that they only benefit the thieves that illegal
control the prices. Once this goes away, you can incorporate precious metals into the same
strategy. But for now, this is a very easy and predictable way to offset your liability to tuition.
I've included a list of leads here for you to do your own research, don't take my word for it.
Bitcoin is a form of digital currency, created and held electronically. No one controls it.
Bitcoins aren’t printed, like dollars or euros – they’re produced by people, and increasingly
businesses, running computers all around the world, using software that solves mathematical
problems.
It’s the first example of a growing category of money known as cryptocurrency, or
crypto-graphic currency.
What makes it different from normal currencies?
Bitcoin can be used to buy things electronically. In that sense, it’s like conventional
dollars, euros, or yen, which are also traded digitally.
However, bitcoin’s most important characteristic, and the thing that makes it different to
conventional money, is that it is decentralized. No single institution controls the bitcoin
network. This puts some people at ease, because it means that a large bank can’t control
their money.
Who created it?
A software developer called Satoshi Nakamoto proposed bitcoin, which was an
electronic payment system based on mathematical proof. The idea was to produce a currency
independent of any central authority, transferable electronically, more or less instantly, with
very low transaction fees.
Who prints it?

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 No one. This currency isn’t physically printed in the shadows by a central bank,
unaccountable to the population, and making its own rules. Those banks can simply produce
more money to cover the national debt, thus devaluing their currency.
Instead, bitcoin is created digitally, by a community of people that anyone can join.
Bitcoins are ‘mined’, using computing power in a distributed network.
This network also processes transactions made with the virtual currency, effectively
making bitcoin its own payment network.
So you can’t churn out unlimited bitcoins?
That’s right. The bitcoin protocol – the rules that make bitcoin work – say that only 21
million bitcoins can ever be created by miners. However, these coins can be divided into
smaller parts (the smallest divisible amount is one hundred millionth of a bitcoin and is called
a ‘Satoshi’, after the founder of bitcoin).
What is bitcoin based on?
Conventional currency has been based on gold or silver. Theoretically, you knew that if
you handed over a dollar at the bank, you could get some gold back (although this didn’t
actually work in practice). But bitcoin isn’t based on gold; it’s based on mathematics.
Around the world, people are using software programs that follow a mathematical
formula to produce bitcoins. The mathematical formula is freely available, so that anyone can
check it.
The software is also open source, meaning that anyone can look at it to make sure that
it does what it is supposed to do.
What are its characteristics?
Bitcoin has several important features that set it apart from government-backed
currencies.
It's decentralized
The bitcoin network isn’t controlled by one central authority. Every machine that mines
bitcoin and processes transactions makes up a part of the network, and the machines work

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together. That means that, in theory, one central authority can’t tinker with monetary policy
and cause a meltdown – or simply decide to take people’s bitcoins away from them, as the
Central European Bank decided to do in Cyprus in early 2013. And if some part of the network
goes offline for some reason, the money keeps on flowing.
It's easy to set up
Conventional banks make you jump through hoops simply to open a bank account. Setting up
merchant accounts for payment is another Kafkaesque task, beset by bureaucracy. However,
you can set up a bitcoin address in seconds, no questions asked, and with no fees payable.
It's anonymous
Well, kind of. Users can hold multiple bitcoin addresses, and they aren’t linked to names,
addresses, or other personally identifying information. However…
It's completely transparent
…bitcoin stores details of every single transaction that ever happened in the network in a
huge version of a general ledger, called the blockchain. The blockchain tells all.
If you have a publicly used bitcoin address, anyone can tell how many bitcoins are stored at
that address. They just don’t know that it’s yours.
There are measures that people can take to make their activities more opaque on the bitcoin
network, though, such as not using the same bitcoin addresses consistently, and not
transferring lots of bitcoin to a single address.
Transaction fees are tiny
Your bank may charge you a £10 fee for international transfers. Bitcoin doesn’t.
It’s fast
You can send money anywhere and it will arrive minutes later, as soon as the bitcoin network
processes the payment.
Transactions cannot be repudiated outside of escrow
When your bitcoins are sent, there’s no getting them back, unless the recipient returns
them to you. They’re gone forever. However, you can use various escrow services to create
conditions and warranties and refund policies on a Bitcoin transaction.
As you can see, Bitcoin has a lot going for it, in theory. But how does it work, in
practice? Read more to find out how bitcoins are mined, what happens when a bitcoin
transaction occurs, and how the network keeps track of everything. I've included a chart on
the folowing page demonstrating the pricing trend since its inception in January of 2009.

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Source: http://www.coindesk.com/price/
Bitcoin References
People ask me all the time, how to get started with using Bitcoin, and then how to
invest in Bitcoin and use it in a business. I'm going to cover how to get started with Bitcoin
here, investing and businesses, I prefer to cover in a later edition. I think your first
consideration is to fund a Bitcoin wallet and spend some at a retail location. Then pass some
back and forth between yourself and some friends. Once you become proficient at using $30
worth of Bitcoin, then select a way to move your dollars into Bitcoin that is secure. A counter-
party such as Coinbase has some security, and the business is stable by virtue of its owners
and investors (you can research for yourself), but it is still functioning as a government
agency (FINCEN). You can use Coinbase to move your money into Bitcoin, but then choose
a light wallet such as Electrum or Mycelium, or your own paper wallet or Bitkee.com to store
Bitcoins for the longer term. You can always move your Bitcoin from cold storage back into
your light wallet or mobile device in order to spend it at local retailers or wherever.
Practice the security protocols for creating, using and safe-keeping your passwords
and seeds. I'm using terms here that you may not recognize, but use them as guides when
you are following these references to learn more.
The key elements of getting started with Bitcoin are learning how to use it and then
how to secure it. Don't start with large amounts of money, $10 - $30 should be plenty.
Very Basic Introduction: www.bitcoin.org
https://www.bitcoin-club.org/front
https://youtu.be/Wc5UepXOUpI

Mastering Bitcoin: Unlocking Digital Cryptocurrencies 1st Edition

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by: Andreas Antonopoulos
https://www.amazon.com/Mastering-Bitcoin-Unlocking-Digital-Cryptocurrencies/dp/1449374042

Introductory and Light Wallets

This is the easiest way to fund your Bitcoin account from your USD bank account.
www.coinbase.com, this is regulated by the Financial Crimes Network, so if you use this to
get your Bitcoins and want any privacy, you will need to move (spend) them into one of the
other wallets such as electrum and cold storage. Always check the terms of service for any
online wallet to determine if it is regulated by the Financial Crimes Network (FINCEN). If it is,
that means the wallet service is a government agency and is watching everything you do.
This is not a problem if you just move your Bitcoins out of that wallet and into something
private.
You can also fund your Bitcoin wallet with PayPal (www.paxful.com) and
www.localbitcoins.com
Recommended
www.electrum.com,
Tutorials: https://youtu.be/PI8pli2xTfU and https://youtu.be/WdVlH9N2oKU
and https://youtu.be/VLBXJvxe9QU
www.mycelium.com
www.bitcoinwallet.com
www.blockchain.info
www.bitcoinwallet.com
www.btc-e.com

Cold Storage, Metal and Paper Wallets

www.bitkee.com
https://youtu.be/4TmN4STr_ug
https://youtu.be/VTsHeiBhPIM
A Bitcoin wallet application such as Electrum, can be installed on a USB for cold storage

Bitcoin Debit Cards

ANX BTC, www.anxbtc.com (ANX BTC and ANX PRO)
Cryptopay, https://cryptopay.me/bitcoin-debit-card
SpectroCoin VISA Debit Card, https://spectrocoin.com/en/

Electronic Wallets
Trezor, https://trezor.io/
Ledger Nano 5, https://www.ledgerwallet.com/products
Ledger Blue, https://youtu.be/fDvC_C9bWMg
KeepKey, www.keepkey.com

Bitcoin Shopping Cart Services

www.Bitpay.com
www.shopify.com
www.blockchain.com/enterprise/

Facts

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https://www.entrepreneur.com/article/231973
The ISO 4217 currency code for Bitcoin is XBT but the common reference code is
BTC.
No one single entity controls this currency.
There’s a finite number of bitcoins, only 21,000,000 whole coins, but 2.1 quintillion if you
count every fraction down to the smallest (Satoshi).
Bitcoins have no inherent or set value.
You can see all transactions.
You can mine bitcoins with your own computer or investing in the mining of Bitcoins (investing
in bandwidth)
You cannot reverse a transaction or be forced to pay, but you can use escrow to protect your
transactions.
You can send money anywhere in Earth, with little to no fees.
Bitcoins are held in digital wallets.
Sometimes losing a wallet could mean your Bitcoins are lost forever, but there are security
measures you can take to prevent this situation.
You can really buy things with bitcoins.
7. Publishing Your Own Book & Blog
Self publishing is remarkably easy – you upload your manuscript in PDF form, drag
photos across for the front and back covers. It could all be over in 20 minutes. It doesn't cost
you anything until the first purchase and Lulu lets you keep 80% of the proceeds (after
deduction of the printing cost of each book). Lulu expanded by 20% last year and publishes
over 400,000 titles a year which it claims is "almost twice as many as by America's entire
traditional publishing industry".
Lulu: Founded in 2002, this website offers e-books and printed books. Authors pay
$8.50 per printed copy of an average size book, while e-books are free. The company takes a
20 percent commission on book sales, and writers collect the rest. Lulu offers e-book
distribution to iBookstore, Barnes & Noble's Nook bookstore and the Lulu Marketplace, as
well as Amazon and the Lulu Marketplace for print books.
Lulu is my favourite for text-driven books, but if you are more interested in picture-
driven publications then Blurb.com is the one to choose. It is easy to use – if you stick to the
easy templates – and you can easily import photos directly from Flickr other photo sites. The
standard of reproduction is impressive (as long as the original resolution is good) and they
helpfully flag up photos that they don't think make the grade in terms of quality. Lulu and Blurb
aren't the only fruit and, if you have time, it is worth trawling through some of the dozens if not
hundreds of minnows that keep popping up – while being on guard lest they are trying to take
a quick buck from you. There are various lists of top 10s on the web, or just try your luck with
something like Fastpencil which looks easy to use though I haven't followed it through to
publication or CompletelyNovel which is based in the UK.
The digital revolution has turned the music industry upside down but it is moving at a
more leisurely pace in books where self-publishing hasn't yet taken off in a really big way.

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 I know of someone who runs his own website and blog (publishing), but didn't become
an author in hopes of selling a lot of books and reaping the royalties. Instead, he wrote the
self-published book on how to profit from the stock market to build the credibility of his
financial education company and attract clients in a crowded market.
Many times he offers his book for free in exchange for a name and an email address.
It provides a line of communication with someone who is already interested in the subject
matter.
This is a trend, more entrepreneurs are turning to self-publishing to promote their
companies. Writing and publishing a book may sound daunting, but it's easier than ever with
more self-publishing platforms available today. Self-published books are often just e-books,
but some companies also create printed versions.
Here are five steps to help you get started:
Decide on an engaging topic. Not sure what to write about? Stay away from recapping
your company blog posts or simply publishing marketing material. You want to demonstrate
your expertise in a distinctive, engaging way, at least that's what I've found to be effective.
You don't want to be theoretical or too technical, unless you are speaking to a very specific
niche of readers." Both print and e-books can be as short as 100 pages or as long as 300.
Know the basics. Do your homework on the rules of publishing before starting out. For
example, owning the International Standard Book Number, which can be purchased at
isbn.org for $125, can help you retain publishing rights in the future to more easily create
updated editions of your book and allow you to switch publishing platforms, But some
publishers acquire ISBNs on your behalf, which means you'll need to stick with the same
company for future editions, she adds.
Plan your budget. A big expense will be publication costs, which run about $5 to $20
per printed book. (Most e-books have minimal fees.) Friedman recommends choosing a
publishing platform that offers a print-on-demand option, which lets you order books as
needed rather than paying for a bulk order. Otherwise, you could end up ordering too many
copies and getting stuck with leftovers. Sites typically ask authors to buy at least 15 copies to
get preferential bulk pricing.
You can spend several thousand dollars on editing and design costs, but this is not
necessary. If you are just getting started, publish something good, add in the images yourself
and use software or services such as lulu.com to make the book look interesting. You can
also find people with the same services I've listed in this book, such as fiverr.com, to help you
edit and design your PDF files.
Develop a marketing strategy. Even if you didn't set out to write a bestseller, you should
figure out a marketing strategy for the book before it's published. Will you promote it via
Twitter or Facebook? Or will it simply be mailed to potential clients? You also can use your
company website to promote the book by creating a separate tab on your home page or a
special blog. If you plan to market your book to a larger audience than your target customers,
compare royalty fees from various publishing sites to see where you'd make the most money.
8. Consult with a Grant Writer
How could you qualify for a grant while attending college? While you might be able to
qualify for grants to pay tuition directly, I'm suggesting that you create projects that are
consistent with your major or minor and obtain grants to further those in addition to traditional
grants.

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 Grant writers research, draft, and submit proposals that help organizations or
individuals receive grant funding. To be eligible for funding, an organization or individual must
have an objective that aligns with a grant's specifications. Many grant writers work for
nonprofit or charitable organizations but I'm not suggesting that you form a non-profit
organization, although it might make sense once you get the idea.
You have to ask yourself what real-world projects would be consistent with your college
major and then look for business plans where either individuals or organizations have already
undertaken such projects. This will make it easier to qualify for grant funding, keeping in mind
that you will want to factor in your own tuition to the actual operations of the business. Maybe
this will be a salary you derive from running the project or direct payments of cash to offset
tuition so that you can further the objectives of the project.
You can do it yourself, but you'd probably end up wasting your time. Your efforts will be
much better served by working with a grant writer who already knows the business and can
advise you before you even write your plan. Don't write your plan first and then shop for a
grant writer, or at least have some general idea of what you want, expecting that the grant
writer may suggest changes.
Before you get down to business writing grant requests, you first have to search for
and qualify potential grant funding opportunities. Knowing who’s funding your type of
organization, who’s funding in or near your location, and the range of their grant awards (past
and present) is critical.
What you want to do first is sit down with your work associates and ask these
questions: Who are our corporate vendors? What bank or credit union processes our payroll?
What local funders have given us money or in-kind contributions in the past five years? Do we
still have a good relationship with these funders? Can we approach them again for funding
support? After you have some answers, start taking action.
Call and make an appointment to visit every bank in your town, city, village, and county.
There’s hidden money everywhere — even at your local banks. Find out who heads up the
trust department (typically a trust officer) at each institution. Trust officers manage trust
accounts for living and dead money-giving individuals and families. These trusts are often not
highly advertised sources of grant money. Ask and get some guidelines for finding them and
applying to them for grants.
Stroll over to the nearest large public or university library to access the Foundation
Center’s Foundation Directory Online. This is your public-access, free-of-charge source for
researching foundation and corporate funding sources.
Network with other grant writers to find out about their funding resource subscriptions.
Ask what works and check out these additional possibilities.
Head down to your city and county economic development agencies to find out about
any public monies available (contracts or grants) for your project.
If you have a community foundation in your county, call to get an appointment to meet
with someone there to ask about the possibility of applying for capacity building funds for your
organization. With a capacity building grant, you can contract with qualified consultants for
grant writing, fundraising, board training, and volunteer coordination services.
Remember to call your governor’s office and ask about state agency grant funding and
other monies that may be available for your organization or business.

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 Attend all public events where the “who’s who” crowd will be gathered and hand out
business cards. Just make sure your agency’s mission and contact info are on the card!
Prepare and distribute a press release to all local and regional media announcing that
you have a project in need of funding.
Most importantly, call your congressional team members to let them know more about
your organization and its need for grant funding. Ask if they can start to track any federal
bucks that fit your needs.
To make your grant writing stand out from other proposals and get your grant funded,
you have to know how to write grant applications effectively. Do some research for your
specific grant proposal and incorporate the following guidelines to spin written magic:
Use a storytelling approach (with supporting statistics) in such a compelling way that
the reader can’t put down your application until she makes a positive funding decision. Make
them cry!
Incorporate a case study of a real client your organization has served. Of course,
change the name for confidentiality reasons. Show a real need of a real person.
Take advantage of online dictionaries and thesauruses to expand your command of
new words and capture the grant decision maker’s attention.
Write to government funding agencies and request (under the Freedom of Information
Act) copies of funded grant applications. Use these documents as examples of how to write
an award-winning grant application.
Research proven best practices for your proposed solutions and incorporate language
from the experts.
When you find best practices, look for the evaluation results of previously implemented
programs similar to yours. Know what works and what doesn’t work before you write your
proposed solution.
Eliminate multiple drafts from your writing habits because the most creative and “wow”
words are often the first words you type.
Hire a proofreader or editor (or a college student) to read your writing and clean it up.
Don’t have any money? Ask a trustworthy and capable co-worker or friend.
Write in short, hard-hitting sentences. Long-winded sentences almost always lose the
reader.
Consider Alternatives to College
A college degree is not the only key to success in life, and in fact, there are many
examples of rich and famous people dropping out of college to launch a business. I think
we've been sold a “bill of goods” on this idea to everyone should graduate from college. The
consideration should be answering the question, “What do you want to do with your life?”
Successful people will tell you to do what you love, what feeds your soul, and I can tell you
from experience that this is very good advice. You can always make money, you don't need
“credentials” or an educational status so that you can obtain a professional status and then
make money. My educational background is a joke, but I usually make enough money for the
year to live in luxury and I make that money in the first quarter. I'm a social entrepreneur, I
like helping people achieve professional autonomy and wealth independence. Wealth

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independence is about knowing how to meet your needs and earn the money you want,
without depending upon the will or approval of others.
You might be surprised to know that many vocations and trades pay much better than
professions for those with college degrees. Here is an example, a very good law firm can
generate several million dollars a year in gross receipts, let's say with three attorneys. But
what about a publishers website that sells forms written by attorneys to a customer base that
might be 1,000 times greater than the law firm's, such as www.rocketlawyer.com? I don't
know it's gross revenue, but I'll bet that it makes more money than a typical law firm.
My daughter said she wanted to be a veterinarian, and I asked her the reason. She
said she wanted to help animals. I asked if she thought helping more animals was better than
helping less animals and she said more. I then asked if after she became a practitioner at
one clinic, if it would make sense to own the clinic and buy more and brand them under her
trade name. Of course, her eyes got really big, she could do what she loved and if she
managed the business well enough, possibly get rich at it as well.
I was speaking with a client one time who was in an MBA program at the local
university. She said she was studying the business model of Starbucks. When I asked her to
explain whether or not it was a franchise or licensing deal, she didn't know the answer. I've
never attended any MBA program, but she was studying Starbucks and could not tell me how
it uses its trademark. I then asked her how she would form a corporation in order to establish
a business structure, and she didn't even know that much. I asked her why she and her
colleagues didn't acquire a licensing agreement with Starbucks and run the business instead
of just studying it from a book. That never occurred to her. She didn't even understand that
Starbucks is a real estate deal, involving a very good niche within the retail beverage market.
She never heard of this. I just wonder who is teaching business classes these days.
But what is wrong with being a mechanic, pilot, welder or landscaper? College is not
needed for these professions, but possibly a degree from a vocational or trade school would
be required. Did you know there are scholarships for vocational and trade schools?
Some high school graduates seek job training that lasts a year or two, and then places
them in the workforce. There are scholarships and grants available for technical, trade and
vocational schools as well. Stalwart federal programs do not exclude trade students from
participating. Pell Grants and Federal Supplemental Educational Opportunity Grants
(FSEOG) offer technical school alternatives, for applicants pursuing diplomas, certificates and
associate’s degrees. And among the hundreds of different vocations and trades,
scholarships-seekers enjoy access to interested organizations and educational foundations
that support specific career programs with vocational school scholarships
Corporate benefactors and private associations contribute educational funding to
schools that teach relevant subjects. Trade unions also mobilize funding for members and
their families who engage in related education. Individual State Governments also sponsor
financial aid initiatives aimed directly at vocational school students.
The bottom line for technical school students: Financial assistance is available for
most programs, especially for candidates who qualify for merit-based vocational school
scholarships.
General Scholarships From Companies and States
Vocational scholarships sometimes focus on particular professions, but general funding
for certificate-level education is out there too. For example, The Sallie Mae Unmet Need
Scholarship was recently offered to qualified applicants, including students at participating

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vocational and technical schools. The Sallie Mae Fund also distributes additional aid that
does not carry trade school restrictions.
Another general scholarship program that benefits associate’s degree students is the
Coca Cola Scholarship Foundation. High school seniors enrolling in accredited educational
programs, including those at two year trade or vocational schools, are invited to compete for
annual merit-based awards issued by Coke. Eligibility requirements include a cumulative
GPA, at the end of junior year, of at least 3.0.
North Dakota “Dollars for Scholars” helps lift state residents into higher education. The
initiative is made possible by funding from the Joann Link Hetzel Memorial Endowment.
Vocational/Technical/Trade School Scholarships issued under the program specifically benefit
post-secondary pursuits at vocational schools. Ten $1000 scholarships are funded annually,
and disbursed to deserving technical school applicants. Students enrolled in educational
programs leading to degrees in mechanics, electrical, welding and surveying are given priority
consideration for these trade school awards. In addition, the benefactors want applicants
from certain towns to have the first shot at the funds.
Oklahoma Tuition Aid Grant (OTAG) is a state-sponsored initiative for funding higher
education. Qualified applicants earn tuition offsets for in-state education. Technical and trade
school programs that lead to degrees or certificates are not excluded from OTAG, so consult
the Oklahoma Regents for Higher Education for additional program details.
Funding for Apprenticeships
Whether working with pipes, wires or HVAC components, mastering trades requires
hands-on experience. Apprenticeships are valid learning tracks, when practical experience is
required, but making ends meet can be difficult while logging hours on-the-job. National trade
organizations put-forth financial assistance for tradesmen-in-training.
The A. O. Smith Professional Contractors Association offers scholarships for qualified
Plumbing Contractor Association members and their eligible family members. The awards
are administered by Scholarship America.
The Plumbing Heating Cooling Contractor (PHCC) National Association Educational
Foundation Scholarship Program assists professional contractors, manufacturers and
wholesalers by offering scholarships designed to educate future practitioners and provide
continuing education avenues for working professionals responding to changes in the field.
Generous corporate partnerships are used to underwrite as many as 24 scholarships
annually, targeting heating/cooling related career development. Community college degree
candidates, trade school students and those enrolled in technical programs are eligible for
tuition scholarships, and apprentices also benefit from select awards.
Vocational Scholarships for Women
Certain groups within the college student population qualify for special financial
assistance. Student specific assistance often originates at campus-level; including vocational
school scholarships and grants that specifically target female recipients. Women interested in
practicing certain trades combine their gender with their career choices, to obtain subject-
specific vocational scholarships:
National Organization for Women - York County Chapter administers an important
scholarships for women called the Mae Millstone York NOW Scholarship. Female applicants
from a range of educational disciplines are encouraged to compete for the annual awards,
which have no limitations regarding the type of educational program candidates pursue. At

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least one $1000 award is dispensed annually, but funding often allows for several individual
grants each year. Technical and vocational school students have earned the scholarships, as
well as those candidates pursuing four-year degrees.
Talbot’s Women’s Scholarship Fund brings corporate philanthropy to women’s
educational pursuits; sponsoring funding for university students, as well as those enrolled in
technical vocational programs. Six women earn $10,000 each, while another 60 get $1000
scholarships. The program focuses on women who are returning to higher education, after
interruptions.
Women aged 50-plus are eligible for AARP Scholarships that fund community college,
technical college and continuing education programs. Financial need is required, and
successful applicants are enrolled in certificate, diploma or associate’s degree programs.
The Educational Foundation for Women in Accounting puts forth financial assistance
for female degree candidates, including the Women in Transition and the Women in Need
Scholarships.
Something else to consider, if you begin a profession or vocation at the age of 24, for
example, why would you not plan on changing careers at least once over the next 40 years?
There are so many interesting ways to support yourself and your family, why limit yourself to
one career in 40+ years? Why not get involved in different aspects within the niche market
involved with your career, for example, after 7 years of working a job, move over to working
for, or even owning, one of the suppliers for your previous employer at that job? Maybe after
ten years you'll attend college after all and get a degree and do something new.

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THE 7 YEAR MORTGAGE

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 We can eliminate bankers and attorneys from our homes, and dare I say the taxing
agencies, by simply changing the way we buy and sell “the use” of residential property. I'm
going to limit this article to single family residential homes, but the concepts can certainly be
applied to other types of property.
The laws and contracts anyone would need to acquire the use of property, or even the
title to property, are already in place. The basic idea is that a buyer can acquire the use
and/or title to residential real estate with a simple seven year lease agreement with an option
to buy. Why seven years? It's less than ten and much less than thirty.
Either the owner (title holder) or current individuals in possession of the property can
sell or exchange these rights under the lease/option contract, whether or not there is an
existing mortgage. The plan can be implemented on a particular property until the use of the
property under the “7 year plan” exceeds the settlement of the traditional thirty year mortgage.
Once the traditional mortgage is settled and removed from the title, the users of the
property will have greater latitude to use the property, either as a residence or an investment,
and the banking system will have been eliminated. A 30 year mortgage does nothing but
unreasonably subsidize the price of homes so that mortgages are needed more and more as
they are used, and the bank has an overwhelming profit motive because it can sell an interest
in these types of contracts (mortgage backed securities).
If the lease agreement, and the options contract, are written as non-negotiable, then
you have a truly fair system of buying and selling residential real estate. This type of contract
will drive the price of real estate down so that people can afford to build a home and live in
one. We have to abandon the silly and self-defeating ideas that inflation and rising home
prices are a good idea. Factor in one more practice and you really have a reliable way for
nearly anyone to afford a home for himself and his family.
“Fair Market Value” is a Scam
The other factor would be to price the property based upon its costs of construction, at
the current time because those may change with the price of commodities. That is, the selling
price of homes should be based upon the costs of materials and labor because they won't
change as much as the current system of determining the value based upon “comparables”.
Again, this eliminates the profit motives for banks and brings in competition from non-bank
lenders while keeping the prices reasonable. A contractor can propose a price based upon
the current market value of labor and materials with a premium. This would allow a well
managed builder to get the best prices from his suppliers and compete on this ability to
manage a low cost business along with the premium, instead of a mortgage rate. For
example, a family of four would be able to build a home for the well known and objective price
of materials and labor, and a premium, and then shop based upon quality and premium. A
premium might be something like 20% of the materials and labor, or it might be 8% or even
95%, it just depends on the market.
Perpetual Escrow of Title
The title can be held in escrow, in the traditional method, or under a trust agreement
via a neutral third party, or on the blockchain with software (smart contract). The title can be
unchanged during the term of the agreement, or held in a corporation and the entire
agreement can be carried out under an expressed interest in the ownership of the
corporation, such as a limited liability company (LLC). I know this is not technically a

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corporation, but an LLC should be better used because of its tax flow-through and deferment
attributes.
Smart contracts are are computer protocols that facilitate, verify, or enforce the
negotiation or performance of a contract, or that make a contractual clause unnecessary.
Smart contracts often emulate the logic of contractual clauses. There are many open source
examples of smart contracts today (i.e. escrow services) that are specifically written for
transfers of real estate.
Insurance, or Risk Management
Insurance for homeowners is another area that I believe is and has become
unreasonably inflated, in fact possibly even fraudulent. That is, people are paying way too
much money for the risk they are conveying and keeping. We keep risk in the form of
deductibles and premiums and the limits of the insurance policy. We can reduce the risks that
we normally pay for by simply assessing these risks ourselves, or from statistics, and then
reducing or eliminating them by financial planning, materials and technology.
As an example, not that everyone wants to live in a dome home (monolithic dome)
because it has no seams. They are also built to be fireproof because of the way the walls are
sealed. Fireproofing a home reduces the risk to loss from fire immensely, but most
contractors don't focus on that because most people just expect to pay whatever insurance
premiums are charged without planning ahead and getting better materials in the construction
process.
In building construction, waterproofing is a fundamental aspect of creating a building
envelope, which is a controlled environment. The roof covering materials, siding, foundations,
and all of the various penetrations through these surfaces must be water-resistant and
sometimes waterproof.
The following waterproofing methods are commonly used in construction: Cementitious
Waterproofing, Liquid Waterproofing Membrane, Bituminous Membrane, Bituminous Coating
and Polyurethane Liquid Membrane. I'm not going to detail each of these, you can
investigate them for yourself, but I'll bet if you use this type of construction and have that
expressed in the contract and certified or verified, you will get a whopping reduction in your
homeowner's insurance policy.
A bit of financial planning can also offset the risk you retain as well. Bitcoin, for
example, and precious metals increase buying power over time, along with assets that build
net worth and can be leveraged for risk management, almost like captive insurance but with
less regulation and more autonomy.
Bullet proof windows, or something comparable, will provide additional security and
insulation. The list continues, if you think this through, you can really diminish your insurance
costs substantially, well over 50% in my estimation. You will need to get your insurance
carrier's attention, have someone come out and inspect your home, ask in advance what
things reduce risk, and work with your insurance carrier. In the end, you might want to
assume more risk because you may be better able to manage it, so while your deductible
might be high, you won't lose any sleep over it.
Technology can further reduce additional risk, such as burglary or other criminal
behavior. I don't believe video recording a burglary actually prevents the crime in every case,
but it may help an investigation and the recovery of property. Instead of having your
homeowner's policy cover all of the contents of your home, why not just have a renter's policy
cover only the most important, and have those documented?

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 If you are going to use a surveillance system, it should be autonomous from your
SMART meter power supply so it cannot easily be hacked, and it should be encrypted. It
should have an alarm system that alerts you, maybe an emergency contact and the police.
You can use double entry doors so that your front and back doors require two
doorways to be breached before entry into your home. These are design elements you may
discuss with your contractor, even if you buy an older home and have to rebuild parts of it for
security reasons.
The 7 year “mortgage” or lease/option is overlaid on the traditional mortgage until the
mortgage is settled and released from the title. This is not “subject to” but “with” so that the
bank does not need to be involved in the arrangement. How would you get into such an
arrangement? You simply make an offer to buy or lease or a combination of each, to the
owner or property manager of the home you want, and just like any negotiation, begin there.
Start with an example of a standard “residential lease agreement” with an options contract. If
you've never done this before, don't expect an attorney to know how to structure this for you;
instead, talk with real estate investors who do this on a regular basis. In fact, real estate
investors would be your “go to” professional to find such deals. You will most likely not find a
knowledgeable real estate agent or attorney.

No Future for Residential Real Estate Titles

Titles to real estate are the mark of a feudal economic system. In other words, if we
rely on titles to land to identify ownership, then we can never own the land because it is truly
owned by the tax collector and other lien holders.
We are moving more deeply into a society where the tax collector and banking system
have become the gatekeepers for people who want to pay for and use the land for productive
purposes. But it’s all connected to the fact that the cultural norms in our society are built upon
transferring a clear title to land when we buy and sell. Insurance is based upon it, tax liabilities
are based upon it and the perception of property rights and liabilities are based upon the title.
Imagine selling the “exclusive right of possession” to someone who wants to use your
house? How is it your house? Well, it’s not, but because your name is on the title, the statutes
give you the exclusive right to use it. This has made us slaves to the banking system and
taxing authorities. What if you conveyed the title of your home into a limited liability company?
Give it the same name as your street address, for example, a home at 123 Elm Street, is now
titled in the name of “123 ELM STREET, LLC”. You then add a standard lease agreement into
the LLC operating agreement and then “lease” the property to the next occupant.
But what about equity and appreciation? We must break this cycle, this is what makes
us slaves to the banking system, we think we can gain money from holding title, when it’s all a
fraudulent scheme conducted by the banking system to keep us running in circles. Forget
about “equity” and forget about the title, once conveyed into an LLC, it will forever remain and
only the terms of occupancy will change within the operating agreement, from one occupant
to the next. As more people do this, less and less people will need to have mortgages as
prices on real estate plummet.
As this trend continues, the prices of real estate will return back to the costs of
construction plus labor and a contractor’s premium for building the home. The prices will not
rise and fall with the banking system or the crooked “fed rate” system. No one will be
concerned about selling the title anymore because no one will need a title to enjoy the

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occupancy of a home (or any property for that matter). But what about the property taxes and
foreclosure?
Foreclosure for Taxes
Yes, the property tax collector can still foreclose if the property taxes are not paid. The
foreclosure would transfer the title to a buyer of the tax lien debt (whether deed or certificate),
so the title would change. And if the occupant could not work out a debt with the buyer of the
tax debt, it would allow him to foreclose. But because there is little invested, no expectation of
any windfalls from equity or appreciation, it would be just as easy for that occupant to find
another deal just like it with another property, a new LLC and enter into the operating
agreement just like before, the only loss being the costs of moving.
It would also allow the new tax lien buyer to hold the title in his own LLC and just
continue like everyone else, sell occupancy and jointly control the title. This new arrangement
would work for everyone. How would the occupant protect his interests in the property with
insurance?
Insurance
We can take steps to mitigate risks without insurance, as used in the traditional sense.
● Structural damage
Your house should be located and constructed properly. Don’t build in a dry river bed or
below sea level, and build it well so it can withstand the appropriate level of weathering. Even
with all of these precautions, there will still be some risk to structural damages, but you will
have greatly minimized this risk with planning, building and re-building.
● Personal liability
Because your name is not on the title, you won’t have any personal liability. If anyone
were to sue the owner for a physical injury, he would have nothing more than a judgment lien
(assuming he won because there was no need to defendant against the claim) and the lien
would eventually expire or be severed in another foreclosure (it would be uncollectible).
● Contents (chattels)
A renter’s policy would work perfectly to cover the contents of your home, it’s a lease
agreement, nothing new. But you could install an appropriate security system and use vaults
for certain items and locks on drawers, etc.
● Generally
While steps can be taken to greatly reduce known risks for your property, they cannot
be totally eliminated. But your need for traditional insurance should be greatly diminished
accordingly, or it should be diminished enough to where you would be willing and easily able
to set aside enough money to cover them yourself. These remaining risks can be covered in
the operating agreement by all parties as well, not just the tenant or the co-party tenant.
Foreclosure for Mortgages
Using residential homes in this way would eventually eliminate the need or usefulness
for mortgages. In fact, in the near future, as these ideas are adopted, I believe mortgages will
be seen as a “very stupid idea”.
However, let’s say there is a mortgage, where the borrower is the LLC. It would likely
be a short term mortgage, more like a 7 year term, and a hard money loan (not from a bank).
If the terms of the mortgage are not met, well, we already have laws in place to protect the

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lender. And look at the interests of the tenants, it would not be several hundred thousands of
dollars in equity at risk, just some moving costs. In fact the costs of foreclosure, even
uncontested, might be more than the value of the mortgage or the property.
I see this as a trend, people are already realizing that we can use property this way.
Maybe we will be recording these operating agreements on the blockchain, but that’s another
subject.

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 HOW TO BUY A CAR WITH BAD CREDIT

Your credit score is not the only way to prove your credit worthiness. It does do a good
job of indicating what type of credit customer you might be; however, today the credit system
is being used to exploit people and unfairly exclude people from society. It’s also a tool of
some species of extortion which has yet to be made into a criminal statute. In any case, there
are certain steps you want to consider when buying a car with a low credit score, or no credit.
A co-signer is an option of course, but what will happen is that the lender will
underwrite the loan only under the co-signer's credit and title the car in his name, and you
won’t get the credit. I’m writing this article with the objective of showing you how to buy a car
without a co-signer when your credit score is low or you don’t have one.
If you’ve never had credit before, don’t start with buying a car. Get a credit card first,
even if it’s secured or for only $100, or rent an apartment, and be sure that the creditor
reports to at least one or two of the credit bureaus. After a few months, you will have a low
credit score.
Some of you have a low score because of non-payments, defaults, judgments, liens
and other derogatory items. As abusive as this system is, I still believe it’s an effective way to
“apply the brakes” to someone’s undisciplined use of credit. Chances are that you have a low
score because you took on too much debt and you probably don’t know how to use money.
This may not be true for someone who is the victim of identity theft, but generally speaking,
you have to look in the mirror first.
First, it’s easier to buy a used car on credit than a new one, so this is the time to be
very practical and buy a car that suits your needs, and is not simply to try and impress your
friends. Second, it’s easier to buy a used car on credit with a 50% down payment than a 10%
down payment, so try and factor something close to this into your plan. Third, it’s easier to
buy a car when you can prove that you have regular income (a job, pension or annuity income
for example). The longer you’ve had the job, the better.
If you have these things, then you need to make a record of your income starting with
your pay-stubs or W-2, deposits in a checking and savings account, and a record of saving a
portion of that money along with a record of paying your other bills on time. I would go as far
as to have a bookkeeper take these records and create a personal balance sheet and income
statement summarizing the cash flow on one page. This demonstrates intelligence and
discipline. You can show your accounting summary to the dealer and if he asks, you can
prove anything on that statement with your records. Aim for a short-term loan, such as 18
months, maybe 36, I prefer no more than a year however.
Make Car Payments to Yourself
The moment you decide to buy a car, start setting aside some of your cash flow for that
purpose. If you are going to buy the car on credit, decide what your monthly budget will be for
car payments, insurance, fuel and maintenance. Begin setting aside this much money each
month, or a portion of it. Let’s say you want a car where the total monthly costs are $1,000,
but you can only afford $500 right now. That just means you’ll have to set aside the $500 for
twice the number of months that you will have the debt to pay and you’re not going to do it
under any contract, it’s just your own discipline.

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 Let’s also be reasonable, for most of us, you won’t want to look for an $80,000 brand
name, new luxury car. You will want a “pre-owned” car (with a certifiable maintenance, repair
and damage history, may include “car fax” report for example along with a mechanic’s
certification) that is a quality brand, not just any car. You will still pay more for a quality brand,
but it will last longer and have less maintenance costs and chances are that the previous
owner took care of it and followed the maintenance schedule. It’s well known in Europe that
the best cars include, BMW, Honda, Mercedes, Audi and Toyota with 250,000 miles on them.
There are other brands and I’m not saying these in order to promote them. I’m only speaking
from personal experience.
I bought my mother-in-law a car so she could have some autonomy while she’s in the
states. It was a 2005 Toyota Corolla that I bought in 2009 for about $7,500. Eight years later,
she’s still driving it every day and has had virtually no major problems with it. I didn’t buy on
credit however, but this might also be true for you, if you set aside enough money quickly
enough. I’m not saying that your solution to bad credit is to pay cash for everything, but
sometimes it does make sense. Why buy a car for $25,000 when I can get the same deal for
$7,500? However, if you want to buy a car for $25,000, make your plan and do it.
Non-profit Lenders
As an alternative, look for a nonprofit lender that offers personal loans. Capital Good
Fund, for instance, offers car loans from $8,000 to $20,000 for residents of Florida and Rhode
Island only for the purchase or refinance of a new or used car; while this organization
finances vehicles sold through most dealers, it also encourages borrowers to work with
dealers like Hertz, Enterprise Car Sales, or others that have high levels of customer
satisfaction. In addition, it offers loans up to $2,000 for a variety of purposes, including the
purchase or repair of a vehicle or paying off high-interest debt, to residents of Florida, Rhode
Island, and Delaware. It’s an example of a United States Treasury certified Community
Development Financial Institution, or CDFI. Look up the nearest CDFI in your area to see if it
can help you.
There is a program that helps both low and moderate income individuals solve their
transportation issues by providing them with low interest rate auto loans. Ways to Work is a
non-profit organization that can help solve employment or job training transportation needs.
The agency provides small dollar amount, low interest rate, short-term loans to working
families that need a car or that need a repair done.
Individuals of all backgrounds and circumstances can apply. The program may even
be able to assist those applicants that have either no or poor credit histories, or someone with
a job that is looking to re-enter the workforce. Funds from Way to Work can also be used to
pay for a number of transportation expenses, including car insurance, the purchase of a new
or used automobile, or repairs.
The typical loan amount provided is around $4,000, but the exact amounts will vary. It
provides an alternative to families so that they do not need to use so called predatory lenders,
payday companies, or other high interest rate options. The Ways to Work program and
organization is funded by the federal and state governments, as well as private foundations.
Auto Loan Brokers
An auto loan broker can be the key to getting the best rates and terms on a car loan.
They are generally independent businesses that have developed relationships with a wide
variety of lenders. These relationships give the broker an advantage in negotiating that most
buyers would never have.

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 A car loan broker has information on interest rates and qualification guidelines from
multiple banks and car loan lenders. With this information, the broker has the tools to shop for
the best rates and terms for your loan. Typically, car dealerships have an employee,
commonly known as the financing and insurance (F&I) manager who does work that is similar
to a loan broker.
Buyers with good or excellent credit often never consult with auto loan brokers as their
bank is typically willing to give them a great deal without any haggling. However, those with
bad credit find that an auto loan broker may be just what they need. Many lenders will try to
take advantage of those with damaged credit due to a bankruptcy or a few late payments by
offering exceptionally high interest rates on car loans. You never have to accept unfair terms,
just continue shopping and loan brokers can certainly help improve your odds of finding a
really good deal.
Peer to Peer Lending
This is not a new concept. For many years people who didn’t have the cash to buy a
car relied on friends and family for a short term loan to buy a car. This was before the
banking system monopolized this practice, turned it in a multi-billion dollar industry and
exploited everyone.
Thanks to cryptographic currency and the Internet, people are now facilitated in lending
and borrowing while escaping the evil clutches of the banking system. This new version of
lending is known as “peer-to-peer” lending. Please are using hard cash instead of creating
money out of nothing and then pretending you were lent something.
I want to first mention that there are some of the old style banking dinosaurs that have
slithered their way into the new “peer-to-peer” (P2P) lending business with the cryptos;
however, you should know that they are the same animal as before. These are not peers of
borrowers as they are the same financial institutions that gave rise to cryptos and the need to
escape them. You may see some of them, such as Lending Club and Prosper. These are not
peers of people, the are sophisticated broker-dealers, so just be aware of who you are
dealing with and the terms of the contract. If the loan contract looks like it was written by 75
attorneys over the last 100 years, run away, far and fast. Look for a true peer.
A true peer-to-peer loan would be someone who put in some cash through an escrow
type service for the purpose of lending you hard cash in exchange for holding your car title as
collateral until it’s paid. The loan will be short term, 18 months, but it could be 60. You will
probably be required to make a large down payment, such as 20% - 50%. The lender could
be a “guy” or several people, or it could be a group of people that simply pooled their money
into a secure system of lending for people like yourself.
The general idea of a peer-to-peer loan is to match an individual lender with an
individual borrower. P2P lending sites are where borrowers go to find a lender. The
application process is actually pretty simple. Visit the site and fill out the online application. If
you qualify, then you will be shown a list of potential lenders along with the terms and interest
rates for taking out a loan. If you like what you see, then you finalize the loan and get your
money. It’s not always that simple as you could imagine.
Much of the same rules apply. If you default on the loan, your car can and will be
repossessed. The lender will probably require that you deliver the car title to hold until the
loan is repaid. I’m sure you can find some that won’t do this, but I’ll be your interest rates
would be unreasonable. And the facilitator of these lenders in finding borrowers will be able
to report items to your credit file. It only requires an annual subscription to a credit reporting

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agency to do this, a few hundred dollars a year. This of course is not the solution for buying a
car on bad credit, it just gives you more options if your credit isn’t perfect and you lack the
ability to find a deal on your own.
Lenders Want You to Buy Assets
This may sound like a long term project, but it’s really the best practice when buying a
liability such as a car. I’ve spoken with prospective clients before and asked if they had any
assets and quickly discovered that they believed their homes and cars were assets. It is true
that cars and homes are assets but they are not the owners’ assets. These are the assets of
lenders, auto-repair shops, contractors, and insurance companies. Make no mistake that a
car is a big fat liability. Once you know that a lender is more likely to lend to a borrower who
is buying an asset, why don’t you consider buying an asset for a balance sheet, and then use
that at a later date to buy a liability, such as a car. You may have to read this last sentence
several times, go ahead, I’ll wait.
People don’t normally talk this way, especially people who aren’t rich. The way people
get rich is that they do not use their employment income and personal credit to buy liabilities,
they know that this practice keeps you poor. They use a business to acquire assets and
credit and tax breaks, and then use that business to buy liabilities. Boy, that sounds like a lot
of work just to buy a car right? Well, maybe you’re at a age where it’s time to adopt better
habits. It is very possible to establish a new cash flow from a business or even from a
property right within a period of about 18 to 60 months.
Here are two examples. Research online a popular topic. Write a 60 page book about
it with your research, have it edited for about $150 and published through a turn-key self
publisher on Amazon. You could even have it on the shelves at Barnes n Noble within 6
months. If it has a snappy title and catches one, you could make a few thousand dollars, or
maybe a few thousand dollars a months for a few years, maybe more. If it’s really successful,
you could franchise it and create a series, such as the books series “for Dummies”.
Once you create your cash flow, you can then produce a balance sheet and income
statement separately from your personal credit score and use that to obtain financing for
many things. You could get financing to expand your balance sheet with a new idea or buy a
personal liability, or a liability for the business that you can use personally.
My daughter is looking at buying her first car and she will need to find her own cash
flow, not necessarily a job. She will probably be using Bitcoin and its rate of appreciation
against the dollar to give herself a head-start, and she will certainly be using the principles
I’ve explained here. I could easily lend her the money, but she needs to gain the learning
experience from doing it herself.
Judging the current status of the used car industry, prices are on a downward spiral as
the dealers are flooded with too much inventory and most people don’t know how to use
credit to buy, so they are excluded simply because they lack knowledge. This will help those
who understand and those who follow the principles I’ve explained here. At the same time,
we know that many of the quality cryptographic currencies are increasing in value against the
dollar, especially Bitcoin. It makes sense to save some of your cash into Bitcoin while you’re
waiting for that day when you can buy a car on credit with 50% down for example.
Another example of assets you can easily buy while building your balance sheet are
tax lien certificates. Sometimes people cannot pay their property taxes, for example, in your
state. Your state taxation department may sell the resulting tax lien for a discount at auction,
giving the buyer the cash flow and right to foreclose unless it’s paid with guaranteed interest

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and penalties. About half of the states sell tax lien certificates and half sell tax deeds. You
can buy these one by one, or entire portfolios at a time. You should understand what’s
required in managing this type of asset, but it’s something you can easily do with a little effort,
maybe a few hours a week. You can buy a tax lien certificate for $50 or $1,500 that might be
worth three times what you paid. You list that as an asset on your balance sheet along with
payments you may have received as income from the asset, and abracadabra, you have
something to show creditors. This asset is scalable, unlike income from a job, you can only
work 168 hours in a week, assuming that would even be legal, it’s not likely. But owning
assets such as guaranteed cash flows from real estate tax liens and deeds is how people get
rich, but it’s how you can get what you want from credit without being victimized by a score.
One more point, when you buy assets to offset the cost of a liability, once the liability is
paid, or at least the debt service is paid, and you have asset income paying for the costs of
having the liability, you still have the assets, even after you sell the liability.
You will still want to improve your credit score, especially to get better insurance rates;
unless of course, you have your own risk pool and understand how to organize a company to
carry your own car insurance (technically, it’s “financial responsibility” in this case and not
“insurance”).
Have Confidence
Avoid taking just any deal on a car simply because you believe that your low credit
score makes you “less worthy”. Get into a sales contract that makes sense and is close to
your plan. If you are not able to get the deal that is close to your plan, and you’ve reached
the end of what you can negotiate, continue shopping. Don’t be eager to buy a car.

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 HOW TO BUY A HOUSE WITH BAD CREDIT

Why is a typical mortgage 30 years?

Residential housing has been subsidized for
100 years. It’s the reason people usually have
to get a mortgage in order to buy a house. It’s
been subsidized mostly with debt. If you ask
most people in Europe and Asia, they own their
homes without a mortgage. The thinking in
most European and Asian cultures is that taking
on long term debt to buy a house is perverse, or
just plain stupid. I’ll tell you why a typical
mortgage in the western world is 30 years, and
it’s for one reason only, so that the banking
system can use the 30 year obligations as assets and acquire pension funds, insurance cash
flows and other liquidity.
If we stop subsidizing residential housing, the prices will fall to a level that actually serves the
people using the homes instead of enslaving them to the corporations that do not use the
homes. This has to be a cultural change, just like our culture of saving and building or buying
homes with cash and short term debt was changed to long term debt and zero cash deals.
Wouldn’t a 7 year mortgage serve people better? I’m only asking this rhetorically because I
want to get you thinking that it’s possible and even necessary. But for the purposes of this
article, let’s just discuss how we can buy a house with bad credit.
Let’s start with a premise that many people haven’t heard or don’t believe. It’s easier to buy a
house with bad credit than get a two-year mobile phone contract or unsecured credit card.
And one more, your first choice for lenders should be the seller. This is not necessarily true in
a “fast market”, such as where homes are selling within 7 days, or even 90 days; however, the
deals are still there. It’s just easier to buy a home where the market is slow… slower or
slowish. You can easily determine how fast houses in your market are selling by asking a real
estate agent or checking some of the real estate databases online, or just looking around the
neighborhood.
Lease with an Option to Purchase
The most popular method of buying a house without traditional bank financing is the
“lease/option”. My wife first objected to leasing because of the lost opportunity to accrue
money in equity, but a lease contract can be written to preserve equity. For example, your
lease can include an option to purchase the property. You can either pay for the option, or try
to get the owner to give you an option to purchase at some point in the future, that depends
on the market and sophistication of the owner/seller. The options contract appended to the
lease agreement can include a provision stating that lease payments must be credited to the
purchase price if you exercise the option to buy. The option can be exercised when certain
criteria are met, such as by a certain date, or when the fair market price of the property
reaches a certain level. The option state that the price is fixed or that the exercise of the
option is based upon the fair market price at the time the option is exercised.

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You can make your lease/option agreement into a real owner financing deal by adding a
provision in the option to purchase that the lessee has the “first right of refusal”. This means
that if the owner wants to sell to someone else during the term of your lease/option, the offer
must be made to you first and you have to be given the option of accepted or rejecting it
before the owner. If you reject it, then the owner can consider the offer to sell.
If you exercise the option to buy, the seller can hold the note, and in some cases, the deal
might involve you finding a buyer for the note. This is typically what happens when you
exercise a lease/option contract, but it’s not necessary. If you make a deal with the seller to
finance the sale of his home, he will carry the note or allow you to make payments under the
terms of a mortgage. You can do this at the beginning if you want, or you can work into this
type of deal from a lease agreement. Some sellers want to carry a note, and there are some
investors that want to buy these notes. This leads to another strategy that may help you
close a deal.
If you know how to find a buyer for the note, you can make this part of the deal with a
homeowner who might not otherwise be willing to sell on owner financing terms. If he knows
that it is likely he can sell the note and get his case now (at a discount rate of course), he
might be more willing to finance the sale of his property to you.
Subject To
Most mortgages today are not assignable; however, there are ways to buy a home subject to
the terms of the existing mortgage.
When a property owner sells his home "subject to" the existing mortgage, the buyer must
make the payments on the mortgage or lose the property by foreclosure. (That is the same as
if the seller were not making payments on his loan.)
However, the foreclosure will never show up on the buyer's credit record because the buyer
was not legally obligated to make the mortgage payments on that existing loan. Such a
foreclosure on a "subject to" mortgage will adversely affect to seller's credit record, not the
buyer's.
When you make a contract to buy a home subject to the terms of the existing mortgage, you
reduce that contract to writing. That becomes an additional contract to purchase the title and
possession beyond the mortgage. The mortgage lender is not concerned with the owner of a
home making any contracts for the title of his property, provided that he doesn’t transfer the
title as it may invoke the “due on sale clause” in the mortgage.
A “due on sale clause” allows the banks or lender to foreclose if any changes to the title are
made while the mortgage is pending because those changes might adversely affect the
interests of the lender and investors.

Cash is King, but Not Always

Cash will help you more than not when buying a home. You will go very far with 10%, 20% or
even 50% of the purchase price of the home if you can offer that as a down payment. You
might be shocked at the idea of a 50% down payment for a home, but this is how people
bought homes before the government reorganization of 1933. In addition, mortgages were no
more than 5 years. The first home I bought was with a 15% down payment and a one year

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mortgage, which I paid in 3 months. I then sold the home and carried the note for the buyer,
and then sold that note a couple of years later once the buyer restored his credit. I didn’t get
rich, I only broke even, but I did manage to get rid of an “alligator” as they say (it was costing
me money) and give me some liquidity that I used to make money. I didn’t use a second
mortgage here, but you could use a second mortgage where the seller holds the note as a
down payment, or some factor in the financing.
For example, let’s say you want to buy a $250,000 home, and you only have $10,000 cash to
put down. First I’ll caution you to review the deal and consider finding something that costs
less if you only have $10K, but for purposes of this article, you want to make the deal. You
need another $15,000 for the down payment, it’s possible that you can offer $275,000 on the
home on the condition that the seller will carryback a second position note for $115,000 (not
just the 15K). Your first position lender will see that your down payment was $10K in cash,
$15 in seller financing and that the seller is also financing another $100,000. This leaves only
$275,000 minus $10,000 minus $115,000, or $150,000 needed for financing. The only
restriction on this is that the price offered should be very close to the fair market value in order
to get first position financing.
Seller “carryback” financing is basically when a seller acts as the bank or lender and carries a
second mortgage on the subject property, which the buyer pays down each month. Not only is
it offered as a means to getting the home sold, but often it’s necessary to get the deal done if
conventional banks and lenders won’t offer the total amount of financing needed.
By offering seller carryback financing more buyers will be able to qualify to buy your home. It
also makes your home more attractive to buyers, and can boost the sales price of your home
as well. In addition to that, you’ll be earning interest each month as opposed to a straight cash
sale.
The idea behind it is that if you believe in the value of your home and feel the buyer will make
the mortgage payments without fail, it can be a good investment and a means to facilitate the
sale of your home. In tough times, it may be the deciding factor on whether or not you sell
your home as sellers shop around for the best terms.

This type of transaction usually occurs because there are not enough prospective buyers who
can qualify for conventional financing. If there were, there would be no need for the seller to
take back a note. Even when the buyer can qualify for a loan, the buyer may not have
enough for the entire down payment. In this case, the buyer gets a first loan from a lender
who wants to be the first lien holder (usually a bank or sophisticated investor), and the seller
takes back a second note and secures his interests with a mortgage or deed of trust.
Because the buyer is able to buy a property that he or she would not otherwise have been
able to buy, and because the value of the $100,000 face value note in the secondary
mortgage money market is only about $70,000, assuming yields in that market are 15% at the
time of this sale, the buyer may be willing to pay more than the current appraised market
value of the property. This is true because with a seller carry back note the buyer doesn’t
have to pay points, fees and other costs usually associated with an institutional loan.
The seller carry back note can be structured in an almost limitless variety of ways. The note
can be fully amortized with no balloon payment, amortized over a number of years, say 30

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years, with a balloon payment at say 10 or 12 years. The note could be interest only with a
balloon.
It can even have stepped interest payments (for example, 8% in year 1, 9% in year 2 and
10% in year 3 through the end of the term), or graduated payments (for example, $500 per
month for the first 12 months, $600 per month in year 2, $700 in year 3, etc.) The value of the
note in the secondary mortgage money market depends on all of these parameters and more.
The value of the note that is held by the seller is very important because the seller may want
to sell his note. Investors may buy the note and the price they offer is based upon the terms
of the note and the borrower’s credit of course, but more importantly, on the terms. The seller
will sell the note for less than the face value because the cash he gets is worth more to him
today than waiting so many months or years, and the buyer is willing to pay the discounted
price because the note would fit perfectly into his investment portfolio.

Peer to Peer Lending

Also referred to as marketplace lending (or MPL), peer-to-peer (or P2P) lending is a relatively
new form of debt financing. It enables a person to take a loan or invest in lending money
without interacting with the establishment banking financial institutions.
By running P2P lending services via online websites and integrating simple interface lending
platforms, it has quickly become the easiest and quickest way to find a loan or lend.
Additionally, P2P lending platforms often offer a higher rate of return for investments than that
of financial institutions, providing a source of fixed income for services investors.

Following the financial recession of 2008, peer-to-peer lending companies became

increasingly popular for borrowing and lending money. Banks were refusing to increase their
loan portfolios; therefore, leaving common people and small businesses with little choice, but
to seek resources elsewhere. Through P2P lending companies, another way was forged for
common people and small businesses to find a credit lender.

Compared to stock market investments, P2P investing has grown as a substantial source of
fixed income for many investors. It inherently is less tumultuous than the stock market and
less volatile. The return rates on investments are also significantly higher and more stable
than investments made on the stock market.

Through the accessibility to big user data, P2P lending platforms have grown in size and
competition since their inception. Credit risks can be assessed more conclusively than by
using a FICO score solely, which allows for credit to be granted within as little as five days
from submitting an application.

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Most peer-to-peer loans are unsecured personal loans with most of the largest loan amounts
being granted to businesses. However, if a borrower has collateral, such as luxury goods,
jewelry, automobiles, art, real estate, or other business assets this can be used to obtain a
secured loan. Peer-to-peer loans are not limited to personal loans, however. They can also
include, student loans, commercial real estate loans, payday advance loans, and secured
business loans.
With a P2P loan, borrowers are taking a loan from an average Joe, through the intermediary
business of a P2P lender. A personal loan can be obtained in limits as low as $1,000 and
many personal loans cannot exceed $35,000. For a small business, loans may be obtained in
amounts beginning around $15,000 and reach limits of around $100,000.

Many personal and business loans granted by a P2P lending service provider are taken out
for the purpose of refinancing an existing loan in order to pay off credit cards or for home
improvement projects.

If you are a borrower with excellent credit already, an interest rate as low as 7% may be
obtained from a peer-to-peer lender. The low-interest rate of many P2P loans is the biggest
draw for many borrowers. Lending Club, the largest online peer-to-peer lender on the market,
holds an average interest rate of about 14%. The national average in the United States is
around 13% and Lending Club comes in just above that rate.

For individuals with good credit scores, a P2P loan is arguably the better way to go. However,
for those classified as a risky borrower, they will carry a higher risk of defaulting and,
therefore, a higher interest rate on their P2P loan.

The rates for high-risk borrowers will likely remain closer to that of a financial institution's loan
interest rate scale for a typical credit card. The highest percentage of interest, which any
peer-to-peer lending service will designate, is upwards of 36%. However, Lending Club’s
highest interest rate goes to, about, 25%.

Typically, peer-to-peer loans will be issued to the borrower with a three- to five-year loan
repayment plan. Payments are due monthly and borrowers are made aware of the exact
timescale in which they will have their P2P loan paid off.

A term-based loan, which carries a plan for paying it off, is sometimes considered more
favorable to a borrower, which is a major benefit of borrowing from a peer-to-peer lender.
Knowing that a loan will be repaid within a five-year period, allows individuals and small
business owners to plan for the future with confidence.

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Lenders Want You to Buy Assets
I’m restating this from my article on How to Buy Cars with Bad Credit. This may sound like a
long term project, but it’s really the best practice when buying a liability such as a house
(unless it’s for investment purposes). I’ve spoken with prospective clients before and asked if
they had any assets and quickly discovered that they believed their homes and cars were
assets. It is true that cars and homes are assets but they are not the owners’ assets. These
are the assets of lenders, auto-repair shops, contractors, and insurance companies. Make no
mistake that a car is a big fat liability. Once you know that a lender is more likely to lend to a
borrower who is buying an asset, why don’t you consider buying an asset for a balance sheet,
and then use that at a later date to buy a liability, such as the house you want. You may have
to read this last sentence several times.
People don’t normally talk this way, especially people who aren’t rich. The way people get
rich is that they do not use their employment income and personal credit to buy liabilities, they
know that this practice keeps you poor. They use a business to acquire assets and credit and
tax breaks, and then use that business to buy liabilities. Boy, that sounds like a lot of work
just to buy a house right? Well, maybe you’re at a age where it’s time to adopt better habits.
It is very possible to establish a new cash flow from a business or even from a property right
within a period of about 18 to 60 months.
Here are two examples. Research online a popular topic. Write a 60 page book about it with
your research, have it edited for about $150 and published through a turn-key self publisher
on Lulu or Amazon. You could even have it on the shelves at Barnes n Noble within 6
months. If it has a snappy title and catches one, you could make a few thousand dollars, or
maybe a few thousand dollars a months for a few years, maybe more. If it’s really successful,
you could franchise it and create a series, such as the books series “for Dummies”.

Once you create your cash flow, you can then produce a balance sheet and income
statement separately from your personal credit score and use that to obtain financing for
many things. You could get financing to expand your balance sheet with a new idea or buy a
personal liability, or a liability for the business that you can use personally.
At the same time, we know that many of the quality cryptographic currencies are increasing in
price against the dollar, especially Bitcoin. It makes sense to save some of your cash into
Bitcoin or Litecoin while you’re waiting for that day when you can buy a car on credit with 50%
down for example.
Another example of assets you can easily buy while building your balance sheet are tax lien
certificates. This is an investment in the same industry where you want to buy a house (real
estate, same industry). Sometimes people cannot pay their property taxes, for example, in
your state. Your state taxation department may sell the resulting tax lien for a discount at
auction, giving the buyer the cash flow and right to foreclose unless it’s paid with guaranteed
interest and penalties. About half of the states sell tax lien certificates and half sell tax deeds.
You can buy these one by one, or entire portfolios at a time. You should understand what’s
required in managing this type of asset, but it’s something you can easily do with a little effort,
maybe a few hours a week. You can buy a tax lien certificate for $50 or $1,500 that might be

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worth three times what you paid. You list that as an asset on your balance sheet along with
payments you may have received as income from the asset, and abracadabra, you have
something to show creditors. This asset is scalable, unlike income from a job, you can only
work 168 hours in a week, assuming that would even be legal, it’s not likely. But owning
assets such as guaranteed cash flows from real estate tax liens and deeds is how people get
rich, but it’s how you can get what you want from credit without being victimized by a score.
One more point, when you buy assets to offset the cost of a liability, once the liability is paid,
or at least the debt service is paid, and you have asset income paying for the costs of having
the liability, you still have the assets, even after you sell the liability.
You will still want to improve your credit score, especially to get better insurance rates; unless
of course, you have your own risk pool and understand how to organize a company to carry
your own car insurance (technically, it’s “financial responsibility” in this case and not
“insurance”).
Go Big
If you’re going into long term debt, go big. A house is going to be your liability, probably the
biggest liability you will have. If you are going to invest that much money into a liability, why
not go big and buy a multi-family complex as a business. You can either live in one of the
units, at least for a short time, and use the rental income from the other units (your neighbors)
to off-set your liability. If that works, do it again until you have a positive cash flow. This
strategy will continue to pay you more over time and you will qualify for lenders who
specialize in lending to businesses such as people investing in real estate, known as “non-
conforming” lenders.

Crowd Funding for Mortgages

It’s now possible to invest in real estate through crowdfunding platforms or even raise enough
money to cover the purchase of a home.

The other crowdfunding flavor on the real estate front features mortgages. Think of the friend
who can’t get a Fannie Mae loan and instead opts to go online to get a mortgage to buy their
home.

That’s right: Multiple people can invest in a person’s mortgage. And your investment can be
spread across multiple mortgages, providing diversity within this investment class. These
borrowers may be seeking a crowdfunding solution because they cannot get a traditional
loan, a real challenge for many consumers today, even those with decent credit, and one
that’s led to the growth of peer-lending sites like Prosper and LendingClub.

Privlo, expected to launch soon, reports that is has already funded $28 million in loans to
those who hold non-traditional jobs and therefore have a hard time meeting traditional credit
standards. LendInvest, based in the U.K., also offers a peer-to-peer lending network focused
on residential and commercial mortgages.

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Sure, disintermediation is occurring in many areas thanks to the Internet. The difference,
however, is that these platforms aren’t featuring products for sale, but, rather, people’s money
and ability to repay. The novelty, coupled with the risk to average investors (think Bernie
Madhoff online), really demand protections for consumers.

Real estate, real due diligence

If you’re thinking of venturing into the real estate crowdfunding world, there’s a lot to keep in
mind. This is new territory (no pun intended) with lots of unknowns.

Like any kind of crowdfunded project with many small owners, if the firm or platform behind it
fails, the investor has a mess to sort out to track his investment.

“There’s so much to know, like who’s the general partner of the properties,” says Deena Katz,
CFP, of financial planning firm Evensky Katz and an associate professor of financial planning
at Texas Tech.

Just as when you purchase a REIT or any other investment and put your faith with the
manager, you’re placing your trust into the vetting process and expertise of the people who
select the properties placed onto the platform. Do they have the expertise? What’s their
process? How can you believe that what they say is true — from the backgrounds of the
leaders to the facts about an investment? And if location really does matter in real-estate
investing, that can be tough to gauge online.

Indeed, the average investor may have excess cash to invest, but that doesn’t mean he or
she has the sophistication to monitor these properties and understand aspects ranging from
the financial statements, default rates, and tax implications to developer compensation
models and how to unload the property if needed.

The Internet is transforming investing. For regulators, it’s an opportunity to better protect
consumers and ensure true transparency: collect comments and data online that could even
speed up the capture of the next Bernie Madhoff.

For investors, it may be a way to further diversify your portfolio. But be sure you do your
homework and remember one of Peter Lynch’s golden rules of investing: “You have to know
what you own, and why you own it.”

Have Confidence

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Believe that you can buy a house without using traditional lending. People will sometimes
reject you, even to have a conversation if it appears that you want a deal with “creative
financing”. Remember, this is a numbers game, there is another deal down the street.
Instead of looking at 2 or 6 houses to get the one you want, you might need to look at 20 or
40 deals, but it’s worth the time in my opinion.

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 HOW TO BUY AN ASSET
Most people live out their lives and never buy any assets. I think this may
be attributed to people getting their basic costs of living needs met with a job
and saving some money, such as in pension fund. A house in which you live is
not an asset, but a house that you own and rent out to a tenant can be an asset.
If managed properly, it will pay you a regular income, that is an asset. Your car
is not an asset, but a collection of antique cars that people pay admission to
come and see may be an asset, or a fleet of taxis that you lease out to taxi
drivers may be an asset. Just because you can sell something does not make it
an asset. An asset provides regular income for the asset holder, hopefully it is
positive income (profit). By implication, everything else is a liability.
Example
Yes, that work of art you bought at the auction for $7,500 and had
appraised for $10,000 is still a liability because it's not generating regular cash
flow, good job on buying low however. Owning assets or the rights to cash flow
from assets is how you acquire and build a net worth. While most people know
how to acquire long term debts for college, homes and cars, they have no clue
about buying assets. If you create a scale on buying assets, the best assets are
those for which you have no liabilities for ownership, but derive the benefits from
the cash flow, and make infinite returns. That means none of your own “cash in”,
but you get “cash out”, profit. These are the kinds of deals I like the best and it's
becoming easier and easier as we have developments such as the Internet and
blockchain and cryptographic currency. That's at one end of the scale.
At the other end would be something like, you get an option on a
commercial real estate site, and draw in capital from investors, develop some
retail space and begin making 7% on your money in about 5 years. It's still an
asset, and might be worth more cash than the infinite returns deal, or maybe
not. Every deal is different. But how would the average person who has never
bought an asset or never really considered this subject until now, go about
“acquiring” assets?
First, you need a way to own the asset, or manage the cash flow, or hold
title to whatever it is you want to buy. I'll start with something that most of us can
relate to, let's buy that coin operated car wash in our town. That is very close to
a commercial real estate deal, but without the commercial lease agreement,
presumably, and without employees, these are my specifications for this
example, especially if you are just getting started. The car wash is actually a
real estate deal and those have publicly recorded titles, so you would use a
corporation to receive the conveyance of the title as part of the sale.

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 Second, if you don't already know what you want, you have to go
shopping. Either you can do this yourself, or through a broker or some other
agent that can help you find the deal or deals you want, where you want them.
Third, you need to be able to make an offer, it should be in writing, but this
is not required.
Financing
Fourth, you should always look for financing, even if you pay cash, you will
still want financing at some point so you can make the best returns on your
money. Here is where many people run into a brick wall. They either believe
they don't have enough money or cannot get the financing because of their
personal credit score. What most people don't know is that most of these types
of deals for example (the car wash) are not usually done with personal credit or
lots of cash.
Imagine buying an asset, such as retail zoned real estate in your town, on
credit and with little or no cash of your own. Yes, it can be done, and once you
see how this works, you will want to do this all the time even if you have enough
cash to just buy the property without any financing. Always risk the least
amount of your own cash on a new deal.
Let's take a closer look at financing the purchase of an asset. First of all,
you are buying an asset on credit, much easier than buying a liability based
upon the fact that you have a job (such as your home). The first consideration
for lending should always be with the seller. Ask yourself, if the seller is selling
his asset, something that is paying him on a regular basis, why is he doing that?
This information comes from a discussion with the actual seller, not his agent.
Let's say he has a good reason for selling, and that the asset is really a good
deal, the seller should be willing to “bet on himself” or the “profitability of what
he's wanting to sell you” by financing it to you. But maybe there are so many
buyers that he won't consider it, this is an important consideration.
The second consideration in getting financing is to understand that the
collateral for the financing is the asset you are buying, it should be paying for
itself. It's not like you are buying a house and your ability to make payments
depends upon you keeping your job. It's a much better financing situation to buy
a business than to buy a home. Remember that I explained previously, an asset
can be owning the thing that pays you, or it can be the actual cash flow coming
from the asset, whether or not you hold the title. In fact, it makes more sense to
buy a business or two and use that money to offset the purchase of a home or
finance a liability.
Let's say our car wash generates $50,000 of gross income annually, and
let's say that a fair asking price is $50,000, the asset's annual income, and this
assumes that the real estate comes with the business, same owner (doesn't

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have to be though). You may never find a deal like this, but I'm only using this
as an example. Estimate your financing based upon a short term debt, such as
3 to 7 years. And let's just be optimistic that the seller is so excited about
financing this deal that he'll be jumping for joy upon receiving your offer.
It's already generating a monthly income of $50,000 / 12. You will want
your monthly payments to be a fraction of this amount, after all, you want
positive cash flow and you still have to factor in operating costs (taxes,
insurance, materials, supplies, maintenance, etc.) If your monthly gross is
$4,166, structure your financing for one-third of this, or $1,388 and get a three
year note. You'll have some wiggle room for the interest rate by doing it this
way.
There are several ways of managing the title during this transaction, the
easiest one is likely to be with an exclusive options contract where the seller
gives you (or sells you) an option to buy (take the title) at some point during the
life of the note, or upon full payment of the note. Let's say the seller of your
local car wash agrees to sell you his car wash, under the provisions of an
options contract in which you take the title after the note is paid in full, three
years from now. Within 30 days of the closing, you will be keeping about 2/3 of
the $4,166 or $2,777. This will be your new income, and you didn't have to go
begging to the bank or use your personal credit. Instead, you would have
probably had to show the seller that you had solvency in a company, which only
takes a few months to establish.
I've just described a very simple and boring transaction that created nearly
$3,000 a month in new income for you. Let's step back for a moment and talk to
all of you who believe you would never get “owner financing” for a moment. If
the seller won't carry a note, maybe there are others whose business it is to only
carry notes? Yes, of course there are. You would then need to find a third party
lender, and in some cases you might prefer this. If the seller insists on doing it
this way, then he will need to transfer the title at the closing. Or, maybe the
seller will finance it (second position) if your lender contributes 25% to 50% of
the purchase price, there are many options.
In this case, the title holder will be your company, that will have shown its
solvency to the eventual note holder or lender. You don't want to be the
personal guarantor on this, where your personal credit is being used. These
deals can always be done using the company's credit, even if this is the first
asset being acquired by the company.
Who would hold a note on commercial real estate with a history of positive
annual cash flow of $50,000? You will find many lenders for this. I would
suggest that your best options do not include any traditional banking
organizations. You want to look for cash or hard money lenders, let those

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organizations source the lender for the loan they are giving you, that's how it
works. Where would you find these? I would start with a business broker,
maybe it's the same broker who helped you find the deal. He or she can
probably connect you with real loan money, hard money, again, not bank “funny
money”. I use the term “funny money” because you don't want to get tied up in
loan contracts with the evil banking system since you are not in that business,
let someone else do that, you get a hard money loan and let that lender deal
with financing of his loan portfolio.
You might also find equity financing, that is, someone with cash who
doesn't want to be a lender, but wants a share in the business, in the equity of
the deal. These are also very good ways to get financing, just write your
contract so that your equity partner has a clear exit strategy or includes a buy-
out clause so the deal has the most flexibility for everyone. I would not suggest
selling actual shares or even advertising for the sale of shares; rather, I would
look for a partner who brings cash to the table and his rights and interests are
expressed in an operating agreement and or a joint venture contract. You don't
want to be under the purview of selling securities; however, once you become a
little more sophisticated, you may want to look into “Reg D financing”, I'll save
that for another article.
Notice that so far, I haven't mentioned anything about writing a business
plan or a marketing plan, or even a financing plan. These are important and you
should have them, but don't let not having them prevent you from moving
forward. Like I've explained, you want to show solvency in the business. You
can do this with a balance sheet and income statement. Once you form the
company, have a bookkeeper create your balance sheet and income statement,
even if you show only the $100 you used to open its bank account, that is where
you begin. The next step may simply be you depositing an additional $100 a
week or month into the business bank account as a contribution for your interest
in the company. This creates a record of regular cash flow, it doesn't have to be
millions of dollars, just regular.
Consider additional ways to create funding, such as grant money. I would
start with finding a grant writer to prepare a grant application and then shop it
around for a grant. It doesn't have to be substantial, just get one grant and it will
do wonders for your future ability to attract more capital. Along with finding a
grant writer, contact the Small Business Administration to review what is
required for a grant application, just so that you know, even though your grant
writer will be working you through that process. The SBA is not the only place to
get grants, that's why I suggest starting with the grant writer, and a grant broker,
but only use the SBA as just one possible source and a way to learn about the
process.

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 Grants.gov is also good place to start when looking for grants. There are
professional grant services such as eCivis, Inc. This one provides a suite of
Web-based software applications, along with grant-writing and grant-
management services. Grants.gov is the federal government's e-portal for 26
grant-making agencies. The website is a central storehouse for information on
more than 1,000 grant programs and provides access to approximately $500
billion in annual awards. You may also want to get a copy of Grant Writing for
Dummies, 4th Edition (John Wiley & Sons, 2011).
You may also find that getting a short term loan from the SBA would be
beneficial in getting your venture going faster. Remember that you want the
business to get the financing, not you personally, never disclose your personal
credit information for a business loan, but before you look at getting a business
loan from the SBA or bank, you will need to create, not only a balance sheet and
income statement, but a real business credit file with Dunn & Bradstreet. There
are many services that can help you do this, even some that guarantee a certain
amount of unsecured credit within a short period, such as six months. That
should be one of the things you do in the first year, and before you submit any
traditional loan applications. I'll discuss this along with business brokers in more
detail.
The SBA is a good source, but don't overlook state and local sources for
grants. It will be useful to consider the economic development office of the
state, county and city in which your business operates. These grants are often
less restrictive than federal government grants and it is likely there is less
competition.
Another good source for small business loans would be a company called
Start Up Nation, at https://startupnation.com/. Let's review the process of setting
up business credit before we go any further. I didn't want you to think that your
only financing source depends upon a high credit score, I'd rather you think of it
as just another tool. I've done many lucrative projects with no credit whatsoever,
so don't let this prevent you from getting the assets you want.
Business Credit
Once you have a corporation registered, you want to be sure it has a
business location as its address, maybe it's a virtual office space or maybe it's
your barber shop because your friend works there and his boss doesn't care if
you use his address as yours for a short time, or you really do have a business
location for the company address, not just a mail box. You can also use a mail
box, but your main address should be a business location. The next step is to
get that business information listed in the 411 directory, this can be done online
and there are specific instructions to help you.

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 You'll want to review http://www.ehow.com/how_5828088_business-listed-
411-directory.html. Keep in mind there are services that will charge you a fee or
monthly to list your business, and some of them may be really useful, but I've
found that it's enough to list your business yourself, for free.
If you can be patient, you should receive a letter from Dunn & Bradstreet
within about 60 days of registering on the 411 directory, welcoming you to the
service and giving you an account number. The objective here is to sell you
business services, and these are not required in order to get a business credit
file, even though you might find some useful. I don't recommend turning down
D&B offers for services, instead, just explain that you have to discuss them with
your partner and ask for additional information and explain you will call back. In
the meantime, you will have a D&B account with no credit score. D&B is
actively looking for new businesses and once you get on its radar, it will create
an account for you. The next move is yours, as you will eventually need a credit
score. That takes a little more planning and you have to understand some basic
concepts.
You will need four “net 30” accounts, there are were you buy supplies for
example, on store credit and pay the bill when it arrives. You don't need 5 or 6
and 2 or 3 would not be enough. The trick is to buy things you already need,
such as office supplies, and be sure that the retailer reports to your business
credit file and never use your personal credit information to obtain the store
credit with the retailer. Sometimes you have to call a different office or search
online to get the actual business application that does not require any personal
guarantee, never settle for being the guarantor, ever. Next, pay the bill
immediately, don't wait for the full term, in fact, you may want to call in advance
of receiving the bill and pay within 5 days of using the credit. This will result in a
D&B creating an actual credit score for your business's use of credit. The
scores range from 0 to 100, and your first score may be above 90. A higher
score is not better. You want a score that shows you are able to use debt and
manage the business properly, so that score would be around 75 – 80. The
more debt you have and the better your balance is, the more creditworthy your
company becomes. It's because your company is using debt to increase it's net
worth. People can't do this because typically consumer loans are based upon
limited income, wages, and those don't go up with more debt.
The next step is to take unsecured loans for about $20,000 to $50,000
within the first six months of starting your business credit profile. It's important
that the lender reports these accounts to your D&B file, you must confirm each
time, do not assume. Once you do that, it's then just a matter of managing your
company, but again, you should be able to obtain financing just by thinking
through a deal and not be totally dependent upon asking an institution or bank
per se.

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Business Broker
I mentioned a business broker earlier. What can a business broker do for
you? If you are new to this “business” of buying assets, it's best to start with a
business broker. Tell him what you want, what you are looking for and ask what
will be needed in terms of your company's financial records, in order for the
seller to even consider your offer. This will be such a great education, better
than taking on huge student loans to get your MBA.
I talked with an MBA student one time. She said she was studying how
Star Bucks runs its business, so I asked her how it does. She could not answer
me. What's more, I asked her the general question, how would she create a
corporation, the main tool of business. She couldn't tell me. So I suggested that
if she really wanted to know how a business operated, including Star Bucks for
example, that she get together with her classmates and form a corporation and
then get into a licensing deal with Star Bucks (which is how that works by the
way, no franchises). I think she was mortified at the thought, but this is my point,
it's not difficult and if you're going to study it, you should do it, that's the best
way. I remember presenting a thesis to my college professor about how it would
be a good business to teach elementary school children how to do high school
algebra. I thought I was so smart, so I was surprised when she wasn't that
impressed after reading it and suggested that I actually go out and do it. So I
did, and I made lots of money, and then she was impressed.
Business brokers will help you with pricing the business with a
professional valuation and then drafting an offering summary, sometimes called
a confidential business review. This piece becomes one of the most important
marketing tools for the offering, and is provided to prospects only after they have
signed a confidentiality agreement and been qualified by the broker.
Marketing the business to the widest possible audience while maintaining
strict confidentiality. This is one of the important distinguishing differences
between business brokers and real estate agents. Real estate agents put a sign
in front of their properties and typically without the need for confidentiality,
advertise widely the specific location. Business brokers are trained to maintain
strict confidentiality. When you contact the broker, he will research his database
for the deal that works for what you want.
Your broker will also facilitate meetings between you and the seller. When
it's time, he can also writing an offer to purchase the business and be involved in
negotiating between both parties. Your broker can work for and represent only
you, or work for both parties, it depends on the contract. Either way, he can also
facilitated the due diligence investigation, as most offers to purchase are made
contingent upon a due diligence finding. And as I've mentioned earlier in this
article, your broker can assist you in obtaining financing. He may not be as

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creative as what I've described in this article, but that is your job after all. Your
broker can help you through the entire deal, even scheduling and facilitating the
closing of the transaction. This article would not be complete with at least a brief
review of crowd funding.
Crowd Funding
This is a way to get funding from a large number of people who like your
idea, but may not necessarily know much about business or being a lender for
profit. Crowd funding allows the average person to benefit from your ideas with
low risk and avoids the need to sell securities or do any public offering.
While you may have planned a marketing and advertising campaign for
selling your actual product, you will need a marketing and advertising
campaigning to raise money through crowd funding. The idea of "its not what
you do, but why you do it," really hits home here. By focusing on a bigger
purpose, the driving force behind a brand, project creators will be able to create
a unique community of like-minded individuals. Each campaign is set for a goal
amount of money and a fixed number of days. Once the project is launched,
each day will be counted down and the money raised will be tallied up for
visitors to follow its success.
Instead of traditional investors, crowdfunding campaigns are funded by the
general public. Typically, most successful startup fundraising efforts receive
about 25-40% of their revenue from their first, second and third degree of
connections. This could include friends, family, work acquaintances, or anyone
that the owner is connected to, including their second and third degree
connections. Once a project has seen some traction, unrelated consumers start
coming out of the woodwork to support campaigns they believe in, but you must
have a story that appeals to people, such as for the car wash, your business is
involved in developing the community (sounds lame, but you get the idea). You
may want to launch the campaign with pre-arranged contributions that are made
immediately with the launch.
Here is a list of the top 25 crowd funding services,
http://fitsmallbusiness.com/best-crowdfunding-sites/
This is a very cursory review of how to buy assets, but the references
should really help you get a better view of how it's done and hopefully, why you
should buy assets, at least one new asset a year.

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 HOW TO BUILD AN ASSET
This article assumes that you already know how to set up and use a
corporation or other business structure and how to get your accounting records
in order so you can track your progress.
I'm going to give you several ideas of how to build an asset. You should
know by now that an asset is a right or property interest that provides its owner
with regular income. Keep in mind that the asset you might build may include a
license to something you created. It will be something that produces a profit to
which property rights can attach and then be negotiated. I'll give you the first
example here.
Have you ever been sitting in a restaurant and noticed the condiment
carousel with several types of sugar, you know, the poisonous ones with
aspartame, etc., and then the national brand of ketchup and iodized salt? Yuck,
if you have any awareness about healthy foods, you'll quickly realize this is just
garbage. Well I noticed this the other day in a gourmet breakfast place and I
thought, I could create a far better condiment carousel. I thought it would be
fairly simple to re-design this table setting, the objective being to fit the style of
restaurant, it's wasn't an old diner, it was a gourmet breakfast cafe. I believe it
would get customers talking and coming in for breakfast more frequently, who
knows.

In another example, maybe it's not very pretty, but it does meet the criteria
and it's legal. Because you know how to generate leads and sales through a
website, and establish service agreements, do this for local services in your
town. Provide the customer service as well, so that you can receive a regular
income from regular clients over a long term. You're selling the service of
another company and provide its customer service, so first you have to sell the
company on the idea, and then you can begin marketing and advertising. Here
is how it might work.

If you had a flying drone, do you think other people would like to rent it for
an hour? Maybe there is a contractor that needs to survey a site, or maybe the
surveyor is not local, or maybe he wants to video record it for a client or for his
business records. Let's say your customer does not want to own a drone for
whatever reason. If you had a drone, you could market it to others who might
want to rent it for a short time. However, I think you'd exhaust your local market
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fairly quickly if you did it this way. Thinking on a larger scale, what if you just
never owned a drone, but set up a website with off-the-shelf software to manage
the customer database? First, you find people who do have drones and who
are willing to make their drones available at pre-scheduled times. The drone
needs to have the ability to be controlled via a local mobile phone or some other
interface that works through your website. Next, you advertise that the service is
now available in the area where you have people willing to lease out their
drones. Your job is then to find more drone owners who are willing to lease out
their drones, and connect them with people who want to use those drones in
those areas.

This next one is going to be somewhat of a spin off from my article on How
to Buy an Asset. Let's say someone owns a car wash, and it's popular in town,
lots of traffic, regular customers, etc. But people waiting for their car to be
washed must stand around or there are only a few seats and maybe there is
little or no air-conditioned space where customers can wait. It could be that it's
popular because of the super bikini models that are there washing cars,
whatever. Maybe there is a vending machine where desperate people can buy
a soda or bottle of water.
You notice that there is plenty of space on the property for a small coffee
shop, it would cost you in labor and materials, no more than $15,000 to build a
cinder block “box”, about 30' x 30'. You sublet the spot from the property owner
with “build to suit” terms, can get a permit for the location and a license for
selling prepared foods, it's not my thing so I can't be too specific. In any case,
you want to use this space to build an asset. It looks like a good opportunity
because you have a great location and someone else has done the marketing
and advertising to bring prospective customers onto the property. Maybe the
whole project will cost you $50,000 and six months of hard work, but you hire
two people to serve gourmet coffee and beverages in an air-conditioned area
with, let's say, seating for 25 people.
You get your suppliers organized, recipes, training, and yes, it's more
involved that what I'm describing here, but once you get the heavy lifting done,
you've built the beginnings of what may come a profitable asset. You can create
promotions such as coupons you give to the car wash that are handed out with
change when people pay for the service over there.

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What would you do with a pawn broker's license?
Pawn shops fill a demand for quick and convenient loans for people who
don't want to, or don't have the time, to apply for loans from their banks. The
main business of a pawn shop is to offer short-term credit with high interest
rates against pledged goods, but they also buy and re-sell goods from people
who want quick cash. Starting a pawn shop requires you to meet all of the
stringent requirements for a pawn shop license, including proven experience, a
criminal background check and a credit check.
This may be a complex undertaking, but this type of license can be used
successfully as a means to build an asset, something that produces more and
more profit the longer it operates and that can sold at a profit in the future. You
can also buy an existing pawn shop that isn't doing so well, not because of its
location or something you cannot change, but maybe it's not doing so well
because the owner is getting old and hasn't invested as much time or money
into the venture and wants to retire. This is a good opportunity to get on the fast
track to running a successful pawn shop and building an asset (or re-building if
you prefer).

After some research, you will discover facts such as this about running a
pawn shop: A good rule of thumb is to have twice the amount of capital on hand
equal to your expected loan volume. In your business plan a large part of your
income (about 1/3) is generated from loan interest. So if your plan shows you
having and maintaining $25k in loans a month, that would generate $6250 in
interest. So, on average, you should have on hand or access to at least $12k.
Your startup cost varies with factors like rent, but generally you can get started
with around $30 - 35k all in.

You can also commission a service to compile a marketing plan for the
area where you are considering for the shop, along with buying established
business plans. These are not secrets, pawn shops have been around so long,
they do not require very many secrets in order to be competitive. Your
competitive edge comes from pricing, location and convenience and possibly
having the variety in products and services to meet the needs of your market.

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 This is not an inexpensive project, you will need some capital of your own
and you should have some type of net worth that you can disclose on paper.

What can you do with a liquor license? I'm not talking about beer and
wine, I'm talking about a liquor license. Did you know that you can buy, transfer
or sell a liquor license? Of course, you can also apply for a new one, but being
able to buy or sell an established liquor license is important for what I'm going to
suggest here. You will need the help of an experienced attorney, even if you
understand the statutes, it's best to rely on someone whose profession it is to
know this type of law.
You will need to have a shop in order to qualify for a liquor license, no
matter which kind you get. But a liquor license, or a license to sell “distilled
spirits” to be technical, is an asset in itself, and around which a business can be
built. Why buy a license when you can apply for a new one? Well, maybe no
new ones are permitted, or there are too many applications being submitted.
How valuable is a license and what is the best way to get one and use it?
A Boston bar owner says that a “2 a.m. all-alcohol license” designated for
Boston’s happening Back Bay and South End neighborhoods is worth between
$390,000 and $450,000. He explains that every time he’s opened a new place,
he’s purchased the license along with the lease, furnishings, and equipment,
which is often the best way to get into this business. The licenses he owns
appear on his balance sheet as assets that can be sold or used to produce
revenue.
Understanding this much, what if your favorite restaurant did not have a
liquor license but the owner was open to partnering with you in getting one and
using it for marketing and increasing sales? Does that mean you have to pour
the drinks? No, of course not, but you have something to bring to the table and
partner with an existing restaurant, and an asset you get to keep besides the
cash flow.

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 Keep in mind that the value of your liquor license, just like any other asset,
is valued in part by how common it is in the market where it's being used. You
will want to choose a market for example, where the number of licenses are
capped or limited. But maybe you don't care because you like this restaurant
and think it would be a great way to create some cash flow for yourself and look
like a genius to the owner while helping his business as well.
Imagine selling different restaurants in your town on the idea that instead
of incurring the costs and liabilities of hiring people to deliver food, your service
will just provide that service for the restaurant under it's own brand name. This
would allow the restaurant to meet delivery needs very efficiently, with nearly no
liability. In fact, you could sell this idea to restaurants that don't yet deliver,
allowing them to expand their customer base. Wait a minute, someone is
already doing that, “Doorstep” for example. You see, there are other people that
see these opportunities. But let's say that you like it so much, you make a deal
with Doorstep to form your own business under this trade-name and provide that
service, maybe as a partner or a franchise. There really is no need to re-invent
the wheel. Or, maybe you just think you can do it better, so you form your own
service and begin competing with existing services.

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 DON’T CONFUSE SECURITY WITH SURVEILLANCE
Have you ever called customer service and heard the welcome greeting that says
something like “...this call may be recorded for quality assurance”, or “...this call may be
recorded for security purposes...”? This is not truthful, your call is being recorded for
purposes other than “quality assurance” or “your security”. The recording serves only to
indemnify the company against future claims you might make or to waive claims you might
have based on what you say during the conversation. This is not the point of my article here,
but I wanted to introduce the topic this way because this is when I began questioning these
occurrences. I began denying these companies my consent to record my voice without first
agreeing to my own “data retention policy” terms, which include paying me a license for the
storage and use of my recorded voice. Some disconnected, some agreed, and some decided
to send me a letter. That was dating back to the late nineties. This same understanding
carried over into the development of smart phones and other new technology.
Don't confuse security with surveillance, especially when it comes to your home and
your family. Video surveillance of your home while you are not there is a very useful tool in
allowing you to take action in real time during any invasion of your home; however, it's
important to recognize that surveillance by itself is only good for one thing, surveillance. If
something is captured on video, it can be seen by anyone, for many years to come. If you
have video surveillance in your home, the signal should be encrypted so that only you have
access to that feed and so that no one else can intercept it and collect video images from
your home, whether you are there or not, or at anytime. This should be a very easy concept
for people to realize, but I think many people mistakenly trust the manufacturers of these
devices and incorrectly assume that no strangers are watching them or collecting this data.
While the risks are the same for home “security” systems as they are for all other forms of
surveillance, I just wanted to focus on these innocent looking fun toy-like devices that people
love to buy.
Yes, if you have any video or audio systems in your home, you are under surveillance.
This includes a new television, smart phone, computer, surveillance cameras and especially
these devices such as “Alexa”, “Scout”, “canary”, “Echo”, “Piper” and others such as OK
Google, Google Home, Siri and Cortana. This leads me to the main example of this article.
These devices are fun, entertaining, informative and useful, but they are “listening” to you
when you don't need them to, recording what you say, and in some cases, collecting video
data, whether through the device itself or by capturing video data from other un-encrypted
devices in your home. If you're going to allow this, then you don't need locks on your doors,
you don't need doors and you can build walls made of glass.
People spend lots of money for locks, doors, secure windows, security systems, and
then completely ignore twenty-four hour video and audio surveillance of their homes by these
devices. Most if not all of this data is being transmitted to your SMART meter. Your SMART
meter is a node on an international surveillance network and your power company is
collecting your data and selling it. Why invest in all of this security and then throw it out the
window by allowing this type of surveillance? The SMART meter nodes are not encrypted.
The space used for the batter of the computer hardware inside does not also allow for any
firewalls or other forms of encryption. What this means is that anyone can collect the data
from your SMART meter at any time.
These devices use speech recognition to respond to requests you make verbally. And
although the “wake word”, which is usually the name of the device, so that it responds when
you say its name. Don't believe this for one second. The device is “listening” to everything

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that is audible and recording that information all the time. Anything said, that can be
translated into text, is translated into text so that the data can be sold and used by companies
that want to sell you things that are consistent with your conversations. But what are the legal
implications?
From a legal standpoint, voice tracking isn't necessarily out of line. "These devices are
microphones already installed in people's homes, transmitting data to third parties," Joel
Reidenberg, director of the Center on Law and Information Policy at Fordham Law School in
New York City, told USA Today. "So reasonable privacy doesn't exist. Under the Fourth
Amendment, if you have installed a device that's listening and is transmitting to a third party,
then you've waived your privacy rights under the Electronic Communications Privacy Act." It's
just like being outside, once you're in the public outside of your private home or vehicle, you
have no protections to privacy. There mere fact that you have such surveillance devices in
your home or use, begs the question of whether or not you have overtly or implicitly waived
your rights and protections guaranteed by the Bill of Rights. And I'm not falling for the
promise that pressing a mute button restores any of my privacy or rights.
Read Samsung's “privacy policy” and the recent changes it had to make, and you have
to ask yourself if anything really changed. If you had the ability to listen to other people's
conversations whenever you wanted, and if you had a profit motive, why would you ever
abandon that ability? Don't believe for one moment that these devices are not doing only one
thing, logging any and all video and audio data from you, all day, everyday.
It should be obvious that people should not be using these devices. It's bad enough
that smart phones have replaced telephones and have become one of the most useful
consumer tools in human history. Those of us who adopt practices to protect our privacy
should consider establishing our rights in a written security agreement that is established
along with the terms of service and privacy policies of these companies. Who says people or
consumers cannot have their own terms of service and privacy policies? If enough people did
the following, it would create the changes we want.
Identify proprietary data in a contract that expresses the terms under which that data
can be used by the companies collecting it. Service notice of the terms upon the company or
organization collecting your information. The name and address of the company is usually
found in its terms of service and privacy policy. Once you send the agreement, record it in
your local county with the UCC Financing Statement for the security agreement as its cover
page, and it becomes a lien upon the balance sheet of the company as long as the company
uses your information, and you build a claim against the company under the terms of the
license provisions in the agreement. You are the creditor, the licensor, for the use of your
identifying and biometric data and the company using it is the debtor, or the licensee.
It is important to first understand what risks you have to your privacy from the
technology you are using, then take steps to mitigate or reduce those risks. And then, to the
extent you cannot eliminate them totally, impose license terms for the use of the information
that is being collected about yourself on the companies doing it. At that point, collecting your
information is no longer an asset or valuable, it now becomes a liability in which you are the
creditor.
If you think these are crazy ideas, then answer these questions: Why is Marilyn
Monroe’s Estate still in business generating millions of dollars and why was Muhammad Ali
able to sell his “likeness” for $50,000,000 in 2004? And, why is Marilyn Monroe's estate still
in business? And don't tell me because they were famous, that only puts a higher price tag

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on the data. Last question, did you know that the average person's identifying information
alone (his financial data) is worth about $25,000,000 in an average life time?

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 CRYPTO-GRAPHIC ASSET PORTFOLIO MANAGER

This is the only dedicated cold storage, smart device for managing your crypto-
graphic asset portfolio in the most secure platform on the market. It fits in your
pocket and plugs into any
monitor. It comes with an
HDMI and Ethernet cable
to avoid the risks of a a
WIFI connection. It has
four USB ports with a
micro USB OTG port that
allow you to connect to
your own keyboard and
mouse and securely track
and manage your
cryptographic currencies,
tokens and asset portfolio.
The device includes 8GB
DDR3 SDRAM of system memory, upgradeable to 64 GB for optimal
performance. It’s operating system is encrypted with 512 bit encryption, but
your real security comes from the fact that it detaches from any computer
system to become an off-line, cold storage device when not in use.
SECURE ORDER FORM
This is a membership agreement for the purchase of a single board computer for the purpose of
encryption security in a hard wallet for managing crypto-graphic currency and assets. We agree to
publish research and information that we have compiled for your use with this device as needed and
as we have it available.
DIRECT PAYMENT AUTHORIZATION
Please request Bitcoin or Ethereum address for payments in those currencies. I hereby authorize Georgia
Capital, LLC to initiate one entry to my checking or savings account at the financial institution listed below and I
authorize the following payment in the amount circled,
☒ $330 $279 Crypto-Asset Portfolio Manager
Options
☐ $99 64GB memory upgrade
☐ $99 Security Battery Backup
Shipping and Handling (S&H)
☐ $9.95 Shipping & Handling within USA
☐ $15 Shipping & Handling to United Kingdom
☐ $15 Shipping & Handling to Canada
☐ $27 Shipping & Handling to Germany
☐ $18 Shipping & Handling to Australia
☐ $18 Shipping & Handling to New Zealand
☐ $22 Shipping & Handling to Hong Kong & China

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under this membership agreement. Please complete the form by filling in the blanks using your computer.
Once the entire order form is completed then print it out and complete your signature by hand and scan into an
image file, compatible with Adobe Acrobat® PDF.

____________________________________ _______________________________
Your Bank or Credit Union Name Name Of Account Holder

____________________________________ _______________________________
Your Address Bank or Credit Union Address Postal Address for Account Holder

____________________________________
City State Zip
____________________________________ ____________________________________
Account Number (see sample below) Transit / ABA Number (see sample below)

$ __________________
Total Payment Authorized Today’s Date Your Signature

Tape, glue or copy your check over this sample, no deposit slips please. Email to
[email protected] or send via Skype, this completed form to Skype ID “johnjaysingleton” following
confirmation that you have the correct account, or via email to [email protected]

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