CPN and Financial Strategies Lecture

Jul 14, 2024

CPN and Financial Strategies Lecture

Introduction

  • Topic: Issues with CPN (Credit Profile Number) creation and utilization.
  • Objective: To explain the proper creation of CPNs and various financial strategies.

Basics of CPN

  • CPN: Similar to a Social Security Number (SSN); must be formatted correctly.
  • Key Point: The first three digits of CPN should match the first three of your SSN.

Breakdown of SSN and CPN

  • SSN is composed of three parts:
    1. Area Number: First three digits
    2. Group Number: Middle two digits
    3. Serial Number: Last four digits
  • Importance:
    • The area number corresponds to the state where the SSN was issued, not necessarily where the person was born.

Common Issues with CPN

  • Incorrect area numbers leading to red flags with lenders.
  • Avoid using IRS-issued EIN (Employer Identification Numbers) as CPNs, as they start with '8', which raises red flags.

Financial Strategies Using CPN

  • CPN as Personal Guarantee: Useful in reducing risks when used to secure business funding.
  • Proper Utilization: Important to structure CPNs correctly to avoid issues.
  • Address Matters: Choosing the right address can impact the approval process.
    • Low-Income Address vs. High-Income Address: Important in personal credit and CPN setup.

Business Strategies and Leveraging Credit

  1. Economy Car Rentals:
    • Focus on affordable cars like Honda Accords, Nissan Altimas, Hyundai Elantras.
    • Benefits: Lower maintenance, lower risk of damage, higher demand.
    • Revenue Model: Renting out cheaper cars provides steady cash flow, e.g., $500/week/car.
  2. Short-term Rentals and Real Estate Investments:
    • Locations: Focus on high-demand areas like Dubai, Bali, etc.
    • Platforms: Utilize Airbnb, Booking.com, Expedia, VRBO for listing and managing properties.
    • Case Study: Dubai full sea-view property generating $10,000/month in positive cash flow.
  3. Global Investments:
    • Think beyond U.S. real estate; explore international opportunities.
    • Example: Properties in Dubai have less stringent credit requirements.

Tools and Resources

  • Websites: ssnvalidator.com for verifying numbers.
  • Insurance: Utilizing third-party insurance like Aliance for rental cars.
  • Marketing Tools: AirDNA, Yelp for boosting property visibility.

Mindset and Execution

  • Investment over Consumption: Invest in cash-producing assets rather than liabilities.
  • Educate Yourself: Understand business and financial structures like trusts, holdings.
  • Leverage Credit Smartly: Use credit to build businesses and generate cash flow.

Conclusion

  • Call to Action: Invest in learning and applying the financial strategies discussed. Explore webinars and detailed trainings like CPN Secrets.