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getting wealthy and rich
- Thread starter georgie24
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Razorguns
Well-known member
be creative. be imaginative. analyze trends and processes. follow the money trail and put yourself in the middle. identify new markets or create them. provide a beneficial good or service to the ones with money. Something that has a demand.
it ain't that hard. 99% of the problem is people just don't want to take that risk and lose the security of a nice comfy cushy day job. Plus the fact most get into business via emotion rather than proper planning.
go read "think and grow rich" by napoleon hill.
it ain't that hard. 99% of the problem is people just don't want to take that risk and lose the security of a nice comfy cushy day job. Plus the fact most get into business via emotion rather than proper planning.
go read "think and grow rich" by napoleon hill.
vinylgroover
New member
If you need to ask, forget it........i mean that with respect.
Get a job, be good at your job and people will want your services. Accumulate your savings and from there ether get into business for yourself and accelerate your earning potential, and start investing your money, ie stocks etc.
Forget about reading books and turn yourself into a commodity by developing your knowledge and skills.
Get a job, be good at your job and people will want your services. Accumulate your savings and from there ether get into business for yourself and accelerate your earning potential, and start investing your money, ie stocks etc.
Forget about reading books and turn yourself into a commodity by developing your knowledge and skills.
vinylgroover
New member
georgie24 said:
well how do you expect to generate any capital to be able to build wealth?
In order to buy real estate or stocks you need money...........unless you already have access to family money or capital.
You will need a job to kick things off.
if it was that easy we all would have bought 7 properties and a share portfolio worth $2m by now.
Then you need money and an idea. Do you have either?
Motivation only takes you so far. I was the same way until I assessed my strengths, weaknesses, and desires to realize they would likely remain unfulfilled if I went in business on my own.
How are you any different from the millions of other Americans motivated to get rich? Somebody's buying Kiyosakis' books, and it ain't just Amway folk.
Motivation only takes you so far. I was the same way until I assessed my strengths, weaknesses, and desires to realize they would likely remain unfulfilled if I went in business on my own.
How are you any different from the millions of other Americans motivated to get rich? Somebody's buying Kiyosakis' books, and it ain't just Amway folk.
vinylgroover
New member
Taps said:
I did a business degree at university majoring in real estate development and finance. On graduating my first job was with a commercial estate agent selling office buildings. After a few years i joined a large real estate development company and have now been in development for 5 years.
I just want to keep honing my skills, developing market knowledge and making as many contacts as i can before hopefully going out on my own in 5-7 years.
vinylgroover
New member
georgie24 said:
i work with guys who have assets worth $2m simply through working for a large company. The are in good jobs getting paid well, and they use their salary to build their wealth by making smart investments
vinylgroover
New member
georgie24 said:
To generate a passive income of $2-3k per month, you need to have an investment asset worth $400-500K. How will you purchase that asset in order to generate that passive income if you have no capital to start with?
Razorguns
Well-known member
start by booking booths at weekend swap meets and selling something and making a profit.
it'll start getting you into the spirit, allow you to slowly start saving some cash, and do all of this while still keeping your day job. Get your feet wet w/o too much of a risk.
it'll start getting you into the spirit, allow you to slowly start saving some cash, and do all of this while still keeping your day job. Get your feet wet w/o too much of a risk.
Forge
New member
georgie24 said:
See that's the problem, most self-made wealthy don't "get" a piece of the pie, they take it, or MAKE it. Sure, there are rich people who have it handed to them, but most are not this lucky. Most of the rich people I know are workaholics, they make lots of money but have no time to truly enjoy it. That's not what I want. I would rather work my daily job earning a good salary, but save and invest it wisely so that I can retire around age 50 or so. I'll never be truly "wealthy", that's something I have to accept. I simply don't have the entrepenuer spirit, I would rather be an employee than an employer.
I am like you, I wish I could think of an idea or a plan to "get rich quick" and retire at 35 and just enjoy life, but I don't have it in me. It's ok by me though, I have no desire to own 4 houses and a mansion, plus 10 cars and a yacht. I like to live by more simple means, and for that my meager investments will be more than enough.
Oh, and knowing is half the battle.
georgie24 said:
You can be very creative when it comes to real estate. You should start with residential. You can do so many different things to build wealth. You do have to be careful not to lie, and this is difficult for some people. As far as a strategy for real estate. Buying a fixer upper, fixing it and renting out for 2 years seems to work pretty good.
Id like to add that wealth does not guarantee happiness. Family and friends bring happiness. Self worth/esteem brings happiness. God brings happiness, or even better joy. Working with your hands and hard work should bring happiness.
bran987
New member
vinylgroover and solidg are the responses that have made sense so far
mylife is wrong, entrepreneurial ability can absolutely be learned/taught
also anybody who tells you it isn't that hard - has never done it themself. it takes incredible dedication and drive to do something on your own, and ignore everyone who tells you that you're dumb for trying, and that it can't be done.
you have 2k, no stocks are not the answer. they average a 12% return per year.
if you don't own your own home, that is where you should start. you can get a home now with 3% or even 0% down payment. you need to make offers on as many houses as you can (that you like) until you find a seller who will accept 70-80% of market value for their home. there are many reasons why they will accept this.. divorce.. death in the family.. bankruptcy.. job relocation..
buy the house like I described, at 80% market value you will be buying a $100,000 house for $80,000. move in and put the house on the market for full price or even a little below market value. if you clear $20,000 you have just earned a 1,000% return on your money ($2,000 into $20,000). you can do this a few more times to build up your capital over the next couple years. it's usually best to own your own home before you start investing in rentals. less risk too, as you don't have double payments to make every month while you're starting out.
you have to find a realtor willing to work with investors who isn't afraid to make low-ball offers, and lots of them. you have to learn the value of the houses in the area you want to live in, then be patient until you find a seller who needs to sell fast so it can be a win-win situation for both of you.
mylife is wrong, entrepreneurial ability can absolutely be learned/taught
also anybody who tells you it isn't that hard - has never done it themself. it takes incredible dedication and drive to do something on your own, and ignore everyone who tells you that you're dumb for trying, and that it can't be done.
you have 2k, no stocks are not the answer. they average a 12% return per year.
if you don't own your own home, that is where you should start. you can get a home now with 3% or even 0% down payment. you need to make offers on as many houses as you can (that you like) until you find a seller who will accept 70-80% of market value for their home. there are many reasons why they will accept this.. divorce.. death in the family.. bankruptcy.. job relocation..
buy the house like I described, at 80% market value you will be buying a $100,000 house for $80,000. move in and put the house on the market for full price or even a little below market value. if you clear $20,000 you have just earned a 1,000% return on your money ($2,000 into $20,000). you can do this a few more times to build up your capital over the next couple years. it's usually best to own your own home before you start investing in rentals. less risk too, as you don't have double payments to make every month while you're starting out.
you have to find a realtor willing to work with investors who isn't afraid to make low-ball offers, and lots of them. you have to learn the value of the houses in the area you want to live in, then be patient until you find a seller who needs to sell fast so it can be a win-win situation for both of you.
big_bad_buff
New member
organized crime
georgie24 said:
Georgie,
RE is a good means of acquiring wealth, but don't go the self help book route. It's a business, and like any business, there is a great deal to learn before making an investment.
The first thing is that 2k won't get you anywhere. Forget the no down payment nonsense. You will require funds for carrying costs, renovations,down payment, acquisition costs etc etc etc. That's a hurdle you will have to find a way to overcome. Some people use friends and family as partners when they start. If you present a well thought out investment, you should be able to find people you know willing to take a risk. When dealing with partners your long term goals will be best achieved by making sure they get paid before you do. That means they take out profit and invested capital before you see a dime. That will encourage them to work with you long term Lots of people manage this every day, and so long as you have a good reputation, you will rarely lack for investors.
You have to learn a great deal in order to do this venture. Finding a good investment isn't as easy as you would imagine. Most things are overpriced, and there are any number of morons who don't know squat inflating the prices.
If your goal is to flip, then base your numbers on no more than 80-85% of anticiapted resale value. That is to say, if you thing the market will bear 100k after whatever improvements you do, pretend like at most it only will bear 85k, and make sure your numbers make sense at that price. This is especially true when dealing with other peoples money. Don'tbe anxious, be responsible.
The way you learn what the market will bear is by becoming familiar with the inventory. Realtors have it easy in that respect, because they are always looking at properties for others. For yourself, pretend as if you are interested in moving into the area, and see what is available. Find out what other homes have sold for and physically compare the two. You will start developing a feel for what the market is, so you know how to proceed with your own offers.
Most flips require work, which is why they sell below market. If they were in "move in condition" they would be priced as such. You may occasionally luck out and find someone underpricing, but don't count on it. Very few people think their asset is worth less than the true value
Usually its the other way around.
And you need to genuinely understand how much those repairs will cost you once you do find a potential acquisition. If you don't have the experiece, you need to locate reliable contractrors to gage costs, and don't be satidfied with just one quote. The more the better. Once you've done this some you will be able to walk into a place and roughly calculate the costs yourself.
There is a lot more, but hope that's a start.
RE is a good means of acquiring wealth, but don't go the self help book route. It's a business, and like any business, there is a great deal to learn before making an investment.
The first thing is that 2k won't get you anywhere. Forget the no down payment nonsense. You will require funds for carrying costs, renovations,down payment, acquisition costs etc etc etc. That's a hurdle you will have to find a way to overcome. Some people use friends and family as partners when they start. If you present a well thought out investment, you should be able to find people you know willing to take a risk. When dealing with partners your long term goals will be best achieved by making sure they get paid before you do. That means they take out profit and invested capital before you see a dime. That will encourage them to work with you long term Lots of people manage this every day, and so long as you have a good reputation, you will rarely lack for investors.
You have to learn a great deal in order to do this venture. Finding a good investment isn't as easy as you would imagine. Most things are overpriced, and there are any number of morons who don't know squat inflating the prices.
If your goal is to flip, then base your numbers on no more than 80-85% of anticiapted resale value. That is to say, if you thing the market will bear 100k after whatever improvements you do, pretend like at most it only will bear 85k, and make sure your numbers make sense at that price. This is especially true when dealing with other peoples money. Don'tbe anxious, be responsible.
The way you learn what the market will bear is by becoming familiar with the inventory. Realtors have it easy in that respect, because they are always looking at properties for others. For yourself, pretend as if you are interested in moving into the area, and see what is available. Find out what other homes have sold for and physically compare the two. You will start developing a feel for what the market is, so you know how to proceed with your own offers.
Most flips require work, which is why they sell below market. If they were in "move in condition" they would be priced as such. You may occasionally luck out and find someone underpricing, but don't count on it. Very few people think their asset is worth less than the true value
Usually its the other way around.And you need to genuinely understand how much those repairs will cost you once you do find a potential acquisition. If you don't have the experiece, you need to locate reliable contractrors to gage costs, and don't be satidfied with just one quote. The more the better. Once you've done this some you will be able to walk into a place and roughly calculate the costs yourself.
There is a lot more, but hope that's a start.
bran987
New member
JerseyArt said:Georgie,
RE is a good means of acquiring wealth, but don't go the self help book route. It's a business, and like any business, there is a great deal to learn before making an investment.
The first thing is that 2k won't get you anywhere. Forget the no down payment nonsense. You will require funds for carrying costs, renovations,down payment, acquisition costs etc etc etc. That's a hurdle you will have to find a way to overcome. Some people use friends and family as partners when they start. If you present a well thought out investment, you should be able to find people you know willing to take a risk. When dealing with partners your long term goals will be best achieved by making sure they get paid before you do. That means they take out profit and invested capital before you see a dime. That will encourage them to work with you long term Lots of people manage this every day, and so long as you have a good reputation, you will rarely lack for investors.
You have to learn a great deal in order to do this venture. Finding a good investment isn't as easy as you would imagine. Most things are overpriced, and there are any number of morons who don't know squat inflating the prices.
If your goal is to flip, then base your numbers on no more than 80-85% of anticiapted resale value. That is to say, if you thing the market will bear 100k after whatever improvements you do, pretend like at most it only will bear 85k, and make sure your numbers make sense at that price. This is especially true when dealing with other peoples money. Don'tbe anxious, be responsible.
The way you learn what the market will bear is by becoming familiar with the inventory. Realtors have it easy in that respect, because they are always looking at properties for others. For yourself, pretend as if you are interested in moving into the area, and see what is available. Find out what other homes have sold for and physically compare the two. You will start developing a feel for what the market is, so you know how to proceed with your own offers.
Most flips require work, which is why they sell below market. If they were in "move in condition" they would be priced as such. You may occasionally luck out and find someone underpricing, but don't count on it. Very few people think their asset is worth less than the true value
And you need to genuinely understand how much those repairs will cost you once you do find a potential acquisition. If you don't have the experiece, you need to locate reliable contractrors to gage costs, and don't be satidfied with just one quote. The more the better. Once you've done this some you will be able to walk into a place and roughly calculate the costs yourself.
There is a lot more, but hope that's a start.
good advice on the whole, but to say forget the no down payment is a limiting belief. we buy houses with no down payment all the time, as well as houses with down payments. just different strategies employed.
plornive
New member
Lots of people work for the post office or a bank in order to start credit card fraud, bank fraud and identity theft. They often take or create fresh credit card offers, activate them and send or take them overseas. Through contacts made through these activities, some begin laundering money. Eventually some people involved in money laundering move into arms and drugs trade if they have the right ethnic or organization links.big_bad_buff said:
bran987
New member
plornive said:
good advice on the whole, but to say you have to have the right ethnic link is a limiting belief. if you prove yourself to organized criminals in some other way, they will treat you just like one of the family, effectively rendering your blood line to be one of their own. just different strategies employed.
I
indianburn
Guest
vinylgroover said:
I have a passive income of 3k and only have 210k invested.
Bran987
I'm aware that it is done. My point was primarily that 2k to work with was likely unrealistic, and at best dangerous. Carrying costs alone could eat that up within a month or two. If anything goes wrong.......
Also, unless he plans on lying about occupying the home, investor loans require larger down payments. He can lie, and likely nothing unfortunate will occure, but if anything did go wrong his liability will have dramatically increased. Not a good way to plan out a long term program.
Btw, LOL on your second response using the same language Good one. I would have given you karma,but apparently I already did, and the system won't allow for a second.
I'm aware that it is done. My point was primarily that 2k to work with was likely unrealistic, and at best dangerous. Carrying costs alone could eat that up within a month or two. If anything goes wrong.......
Also, unless he plans on lying about occupying the home, investor loans require larger down payments. He can lie, and likely nothing unfortunate will occure, but if anything did go wrong his liability will have dramatically increased. Not a good way to plan out a long term program.
Btw, LOL on your second response using the same language
Good one. I would have given you karma,but apparently I already did, and the system won't allow for a second.
Razorguns
Well-known member
Here let me give you an example that might get your mind flowing..
In real estate -- the let's buy a house low and sell it high concept is overly saturated as well *barriers* to entry which can be cumbersome for novices, such as beginning equity, lack of cash, inexperience, lack of negotiation skills, etc. All factors that can and WILL get in the way.
So what do you do? Put a minor twist on it. Get into the oft-neglected, but *just as important* business of home beautification (yeah i made that up, but doing that makes it seem like your'e a "leader" of something). Same industry, DIFFERENT angle.
For eveyr person that buys a house, and then wants to sell it -- they also want to make it look "modern" and "esthetic" and "attractive" to sellers. Some may set aside $10-$50k just for this purpose. The dividends can be an extra $80k in price.
Think of it as the "Swan Show" for houses. A guy who goes to houses and uses photoshop, etc. to "conceptualize" what it can look like with all these "improvements" to it. Then shows it to the owner with a price tag. People *love* pictures.
Reason being:
I live in LA. Most houses here look like SHIT. UGLY ass mofos. Most have STEEL BARS on their windows. But they're going for like $300-$500k i kid you not. My friend's a realtor and can never find a "house makeover" artist for his clients house. They all look like fucking crack houses. If someone specialized in that, and had the consturction contacts to pull it off -- he'd have a captive market. And you'd require almost *zero* capital to initially start it off. Just computer skills, imagination and contacts in construction who can pull it off.
A plastic surgeon for homes.
Not saying that *is* a viable idea for you. But I'm giving you a walk-through of how you would come up with a viable profitable and feasible business idea. Find a demand. Find a service or product that is not adequately met in today's world. Find a way to provide that service or product. Then finally -- render that service or product to the upmost beneficial degree to give you the upmost in profits.
That's it!
In real estate -- the let's buy a house low and sell it high concept is overly saturated as well *barriers* to entry which can be cumbersome for novices, such as beginning equity, lack of cash, inexperience, lack of negotiation skills, etc. All factors that can and WILL get in the way.
So what do you do? Put a minor twist on it. Get into the oft-neglected, but *just as important* business of home beautification (yeah i made that up, but doing that makes it seem like your'e a "leader" of something). Same industry, DIFFERENT angle.
For eveyr person that buys a house, and then wants to sell it -- they also want to make it look "modern" and "esthetic" and "attractive" to sellers. Some may set aside $10-$50k just for this purpose. The dividends can be an extra $80k in price.
Think of it as the "Swan Show" for houses. A guy who goes to houses and uses photoshop, etc. to "conceptualize" what it can look like with all these "improvements" to it. Then shows it to the owner with a price tag. People *love* pictures.
Reason being:
I live in LA. Most houses here look like SHIT. UGLY ass mofos. Most have STEEL BARS on their windows. But they're going for like $300-$500k i kid you not. My friend's a realtor and can never find a "house makeover" artist for his clients house. They all look like fucking crack houses. If someone specialized in that, and had the consturction contacts to pull it off -- he'd have a captive market. And you'd require almost *zero* capital to initially start it off. Just computer skills, imagination and contacts in construction who can pull it off.
A plastic surgeon for homes.
Not saying that *is* a viable idea for you. But I'm giving you a walk-through of how you would come up with a viable profitable and feasible business idea. Find a demand. Find a service or product that is not adequately met in today's world. Find a way to provide that service or product. Then finally -- render that service or product to the upmost beneficial degree to give you the upmost in profits.
That's it!
My understanding is that you need to have at least 5% down to purchase an owner occupied home. 15% to buy a rental. There are ways though. You can buy a home 5% down live in it for a little while then rent it out, buy another owner occupied 5%, and so on.
Due on sale is not very enforceable, especially if you are making your payments on time.If not then you are screwed.
bran u still did not say what mortgage company u use?
Due on sale is not very enforceable, especially if you are making your payments on time.If not then you are screwed.
bran u still did not say what mortgage company u use?
solidg,
They are enforcebale. You can't transfer clean title without a releaese from the lender. Theoretically I suppose you can make payments to the owner without transferring title, but you'd have to be insane to do so, unless it's mom and dad.
Assumable loans don't negate the need for a downpayment by the new purchaser. Most loans aren't assumable, and the only real advantage is in a high interest rate market, when the current mortgage is at a reduced rate. You still have to qualify for the loan.
They are enforcebale. You can't transfer clean title without a releaese from the lender. Theoretically I suppose you can make payments to the owner without transferring title, but you'd have to be insane to do so, unless it's mom and dad.
Assumable loans don't negate the need for a downpayment by the new purchaser. Most loans aren't assumable, and the only real advantage is in a high interest rate market, when the current mortgage is at a reduced rate. You still have to qualify for the loan.
bran987
New member
JerseyArt said:
the laws depend on your state
you can use a 3rd party to make the payments, an escrow company for a small fee so you don't have to rely on the seller to make the payments, which you are right, is insane.
if you make loan payments on time a bank will never enforce due on sale. the amount of money they can loan is based on the number of performing/non-performing loans in their portfolio. for them to put a bad loan on their books when it is performing is not likely. even if they do you can typically negotiate 3-6 months to sell the property, it is not a deal where you have to come up with the cash to pay off the loan tomorrow LOL.
solidg I don't use one specific mortgage company, but look for mortgage brokers who understand creative real estate.
bran987
New member
solidg said:
lol, you don't have to convince me that you got laughed at, I totally believe you. have to be real careful what 'vocabulary' you use with most people in R.E.
kind of like if you say 'no money down' to them right? don't try that one lolI work with a few locals, united american and executive home are a couple.
I think this thread got off topic
what are other ways to get wealthy and rich? actually razorguns idea is one that a lot of people are doing in dallas now and I agree with him that is a great niche, but I don't have the creative ability!!!!!
chrisoh
New member
I agree with the above posts, entrepeneureal spirit is something you either have or you don't have, you cannot make up for it by studying some books because it'll never be natural to you. If you're a born leader and are willing to take huge risks, both logistically and financially, you will be repaid for it. I recommend just sitting down and writing down on a piece of paper what you're BEST at and then finding out ways to milk those skills for all they're worth in the form of a business. It's not all that hard, 15% of the population is self employed!
I started my computer consulting firm my sophomore year in college about 1.5 years ago with $300 in my pocket and now I'm putting myself through college and living a very comfortable life while working maybe 2-3 hours a day, find a niche that ties in with your skills and use it for all it's worth.
I started my computer consulting firm my sophomore year in college about 1.5 years ago with $300 in my pocket and now I'm putting myself through college and living a very comfortable life while working maybe 2-3 hours a day, find a niche that ties in with your skills and use it for all it's worth.
vinylgroover
New member
indianburn said:
Is 210K the value of the asset or the value of the equity you have in the asset? If your asset is vaued at 210k, that equates to a 17% return, which is
very rare for property or even stocks.
Commercial property returns between 7-12% and stocks around the same in the longer term.
Residential property returns around 3-7%.
Last edited:
vinylgroover
New member
Bran987 said:
no.....i was using Australia as an example.
Yield on residential property rarely exceeds 7% here.......only in exceptional circumstances and it's usually only achievable in smaller cities or towns where the prospect of caital growth is limited. The average is around 4-5%, which is reflective of the relative risk/return of residential property.
I can't imagine that 8% yields are achievable in your bigger cities over there as far as residential property is concerned. As you know, bigger cities have more prospect for capital growth and there is an inverse reationship between capital growth and yield.
vinylgroover
New member
Bran987 said:
1%?......that's huge.
Sydney has about 5 million people as well. For a property worth around $450,000, you can expect a rental of about $1,600-$1800 per month over here.
The yields over there are enourmous.
bran987
New member
it should also be noted for the beginning r.e. investors out there we are talking about yield as if you owned the property free and clear.
you should earn double digit returns on your investment capital using the power of leverage in real estate (mortgages).. financial people in r.e. use the term I.R.R. (Internal Rate of Return) a lot
you should earn double digit returns on your investment capital using the power of leverage in real estate (mortgages).. financial people in r.e. use the term I.R.R. (Internal Rate of Return) a lot
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