Beginners guide to becoming WEALTHY

[JT7890]

This thread provides great discussion, but I have no idea why some members of the investing community continue to sprout out to the general public that "everybody" should come and be in business. Majority of people can barely run a hot dog stand, much less manage the mechanics, skills, and resources to run a business (any business). It takes a very special person to be in business and succeed, the skills needed are TOO MUCH to list for this thread alone.

Also the mocking of academic education in this thread is disgusting. You can go to business school AND run an actual business in the field, it doesn't have to be one or the other.

Furthermore, I wouldn't say that "luck" contributes to a prudent business owner's success over that person's individual capabilities to manage the entire cycle of a business. In some form or another we all are "lucky" to have gotten up this morning in one peace with all of our physical functions, but business success is a result of tactful planning rather then believing in the lucky rabbit's foot.

 

[Vice]

About after a year of first reading this thread, I've started my real estate investing business. I'm working on my marketing right now, the learning curve is huge in this business, but I feel that I'm about to finally get past it and get my first check.

 

[DeMarco91]

About after a year of first reading this thread, I've started my real estate investing business. I'm working on my marketing right now, the learning curve is huge in this business, but I feel that I'm about to finally get past it and get my first check.

I'm glad to hear it! Best of luck to you in your ventures. Don't forget to post you big success :wink:

I'm really happy that I found this website it really has been a positive influence.

This thread also makes a lot of sense to me. I do not know the fine details or the intricacies but the principles are simple. It's funny to me how some of the keystones of all this have been casually presented to me in the past. A year ago this girl tried to convince me to do Amway. Seemed unlikely to me but I didn't mind since she was paying for "business" lunches and dinners haha. She did introduce me to Rich Dad Poor Dad. Around the same time my mother bought a half a mil property in Gold Canyon AZ. The homebase for future AZ holdings company haha. In the meantime I will be in the Bay Area studying the details and building credit.

My father, as old as he is, did this when the bubble burst. The house was 100+K into potential profits and he lost it all. Now the house is worth less than the mortgage and the rent is $50 loss per month. Boy did he get screwed. He was a fool for not selling with that much gain imo. He gets by fine though with his 35 yr gov pension and day trades in his retirement. I'm just sure glad the bubble has burst ^^

..Thanks again for the thread!

 

[Vice]

I'm glad to hear it! Best of luck to you in your ventures. Don't forget to post you big success :wink:

I'm really happy that I found this website it really has been a positive influence.

This thread also makes a lot of sense to me. I do not know the fine details or the intricacies but the principles are simple. It's funny to me how some of the keystones of all this have been casually presented to me in the past. A year ago this girl tried to convince me to do Amway. Seemed unlikely to me but I didn't mind since she was paying for "business" lunches and dinners haha. She did introduce me to Rich Dad Poor Dad. Around the same time my mother bought a half a mil property in Gold Canyon AZ. The homebase for future AZ holdings company haha. In the meantime I will be in the Bay Area studying the details and building credit.

My father, as old as he is, did this when the bubble burst. The house was 100+K into potential profits and he lost it all. Now the house is worth less than the mortgage and the rent is $50 loss per month. Boy did he get screwed. He was a fool for not selling with that much gain imo. He gets by fine though with his 35 yr gov pension and day trades in his retirement. I'm just sure glad the bubble has burst ^^

..Thanks again for the thread!

A rent loss of $50 is NOT bad at all. I'd hold onto that property, possibly even pick up an income producing property to balance out the loss.

 

[Konada]

Also the mocking of academic education in this thread is disgusting. You can go to business school AND run an actual business in the field, it doesn't have to be one or the other.

Furthermore, I wouldn't say that "luck" contributes to a prudent business owner's success over that person's individual capabilities to manage the entire cycle of a business. In some form or another we all are "lucky" to have gotten up this morning in one peace with all of our physical functions, but business success is a result of tactful planning rather then believing in the lucky rabbit's foot.

I think you missed the point why they are constantly bashing academics. I mean true, knowledge will help you run a business effectively, thats a given fact. But the problem with educational systems now is they TRAIN individuals to work for superiors, rather than creating opportunities for themselves. Schools teach people to work for money, whilst the rich let money work for them. It's something that has to be imparted through home, through life experiences and schools just can't provide that.

Agree on luck part though. Wealthy people create 'luck' for themselves in a manner to speak, the ability to see how a dire situation can instead be a bg opportunity for riches.

 

[synergy1]

I think you missed the point why they are constantly bashing academics. I mean true, knowledge will help you run a business effectively, thats a given fact. But the problem with educational systems now is they TRAIN individuals to work for superiors, rather than creating opportunities for themselves. Schools teach people to work for money, whilst the rich let money work for them. It's something that has to be imparted through home, through life experiences and schools just can't provide that.

Agree on luck part though. Wealthy people create 'luck' for themselves in a manner to speak, the ability to see how a dire situation can instead be a bg opportunity for riches.

So, than the two concepts you mention are mutually exclusive. Why can't you get an education and acquire business acumen simultaneously? College is a tool box, nothing more nothing less. How you use it is up to you. Belittling education because it doesn't give you what you need for business is doign so under a false premise. Its like blaming a television for not driving you to the store; that's not its function.

I have been reading an interesting blog called sovereign man which is about business opportunities abroad. Amongst the topics are real estate, currencies, and business ventures. Might be worth a read and to discuss some articles ( just to keep with the overall thread)

 

[Konada]

So, than the two concepts you mention are mutually exclusive. Why can't you get an education and acquire business acumen simultaneously? College is a tool box, nothing more nothing less. How you use it is up to you. Belittling education because it doesn't give you what you need for business is doign so under a false premise. Its like blaming a television for not driving you to the store; that's not its function.

I have been reading an interesting blog called sovereign man which is about business opportunities abroad. Amongst the topics are real estate, currencies, and business ventures. Might be worth a read and to discuss some articles ( just to keep with the overall thread)

I'm not saying you can't aquire both education and financial intelligence simultaneously. The problem with most people these days is that they take the 'toolbox' of education too literally. I really hate using personal anecdotes but this is the only way I can think of to bring across my point. I am a student and basically I've been doing work pertaining to syllabus which rely on DRILLING us to answer questions. Even the 'critical thinking' questions have nothing to do with life whatsoever. They are just questions requiring you to modify the knowledge you just regurgitated. It develops a 'drone-like' type of work if you may.

Many faik to realise that knowledge acquired through education can be used to find new opportunities, and not just to make you capable at working in a business industry etc. That's what set the rich apart from the normal.

 

[synergy1]

i wasn't disagreeing, more or less throwing in my two cents. There were some pretty heated debates on this thread regarding college, and the consensus from the OP was that college was a waste of time. This was likely due to the fact he never went. Truth is that it can be a waste of time, but for those who are driven, it seldom is.

More to the point of this thread, college will not instill upon someone the will to act. Many rich people act at the opportune time. Graham's purchase of GEICO was a combination of life experience, business acumen, intelligence and luck - all according to him.

 

[Julian]

i wasn't disagreeing, more or less throwing in my two cents. There were some pretty heated debates on this thread regarding college, and the consensus from the OP was that college was a waste of time. This was likely due to the fact he never went. Truth is that it can be a waste of time, but for those who are driven, it seldom is.

More to the point of this thread, college will not instill upon someone the will to act. Many rich people act at the opportune time. Graham's purchase of GEICO was a combination of life experience, business acumen, intelligence and luck - all according to him.

how many times u gona bring up that damn geico deal


come on bro lettuce be reality here. ur pro college as fuk. dont even fraud about it. most guys here are anti college because they were sold a bill of good my man. everyone is taught the one way path towards success is through college education...now these guys went to college and it led them not to success but to failure. now they are pissed. the main stream POV is that college is a necessity...its us young men on the internet searching for success who have a fuk college attitude because we believe in being self made. did Da Vinci go to college? FUK NO.

 

[iwanttofight]

Great post, How do I get the money to start my own business that I have always been dreaming about opening?

 

[metoo]

real estate is a big loser right now, especially for beginners. Get HOW TO MAKE MONEY IN STOCKS and copies of the same publisher/author's INVESTMENT BUSINESS DAILY newspaper, it's 10x more useful than the wall st Jounal, guaranteed! Sometimes, tho, ,it's best to hold gold coins, not stocks, and this is one of those times, and has been for several years now, with no end in sight.

A lot depends upon what you think you need in the way of annual expenses. I have a ball on 10k, most guys think that they "need" do clear 30k a year. because they waste that 20k difference, it will take them many years longer to retire.

I am not saying to retire on 10k a year, altho that can be done very well, in 3rd world countries. I am saying to learn how to average 20% per year, overseas, no taxes, and in austrian or Swiss Francs, so you don't lose 5% per year (average annual US inflation rate, for the past 40 years).

 

[metoo]

luck is a huge part of a lot of it, especially if you buy and sell real estate. the "right area" can become very much the wrong area, REAL quick, due to fires, floods, riots, highway coming in, tax increases, white flight, quakes, storms, etc,a nd there's very little you can do about it if your $ is already tied up in housing there.

 

[Vice]

Just posting back on here to report that I read this thread two years ago, and now I own rental property that nets me a few hundred dollars a month, and has set me on a course to become extremely wealthy.

That is all.

 

[Vice]

real estate is a big loser right now, especially for beginners. Get HOW TO MAKE MONEY IN STOCKS and copies of the same publisher/author's INVESTMENT BUSINESS DAILY newspaper, it's 10x more useful than the wall st Jounal, guaranteed! Sometimes, tho, ,it's best to hold gold coins, not stocks, and this is one of those times, and has been for several years now, with no end in sight.

A lot depends upon what you think you need in the way of annual expenses. I have a ball on 10k, most guys think that they "need" do clear 30k a year. because they waste that 20k difference, it will take them many years longer to retire.

I am not saying to retire on 10k a year, altho that can be done very well, in 3rd world countries. I am saying to learn how to average 20% per year, overseas, no taxes, and in austrian or Swiss Francs, so you don't lose 5% per year (average annual US inflation rate, for the past 40 years).

You are quite possibly the biggest fool on this forum.

 

[muscleman]

Just posting back on here to report that I read this thread two years ago, and now I own rental property that nets me a few hundred dollars a month, and has set me on a course to become extremely wealthy.

That is all.

How much property though?

This thread was started almost a decade ago. A lot has changed since then. The people who acquired properties before the bust at little to no money down did well, but that no longer applies to the same degree.

I own a condo that I rent out to a couple people and I basically live for free (minus food/gas). I estimate I can net ~$100-400/month profit if I rented it out completely (depending on what I decide to do once my 5/1 runs out).

This can work out quite well IF you do your homework, but there's competition here just like anywhere else. Being a landlord is still work unless you really want to cut into your bottom line, and the ROI on most property before it's paid off is less than a Total Stock Market fund. If it was more, then REITs would have a crazy return, but they don't.

Just something to keep in mind - you need money to make money. Once you get into the property business, you're also essentially stuck to living in one area unless you want to do remote landlording, which again will eat your bottom line alive.

 

[synergy1]

real estate up in my neck of the woods has persisted fairly well when compared to the rest of the country in 2008. Prices have fallen from the RE bubble, but they remain elevated. The problem where I live is that taxes can eat up a proportionately larger part of ones bottom line than elsewhere since they are higher here. A combination of higher town taxes and lower selling value have been a reality for some homeowners, and fewer still have actually come out underwater.

Perhaps one of the bigger players in RE now is low interest rates. While banks require *some* money down, one still does not need a huge downpayment. Think about it, if interest rates are near the prime rate and certain mortgages offer interest only payment, someone with a 70,000 dollar per year job can afford a much more expensive house than they could otherwise. In a way, lower IRs combined with loaning practices can actually drive housing prices up.

As for me, I have a business idea in the works. My current job is providing some ample startup capital, and I am spending some time working out a BP, but mostly financial feasibility. Thankfully, this won't involve green fuels or government grants ( of which there will be few in the future). whew!

 

[Vice]

How much property though?

This thread was started almost a decade ago. A lot has changed since then. The people who acquired properties before the bust at little to no money down did well, but that no longer applies to the same degree.

I own a condo that I rent out to a couple people and I basically live for free (minus food/gas). I estimate I can net ~$100-400/month profit if I rented it out completely (depending on what I decide to do once my 5/1 runs out).

This can work out quite well IF you do your homework, but there's competition here just like anywhere else. Being a landlord is still work unless you really want to cut into your bottom line, and the ROI on most property before it's paid off is less than a Total Stock Market fund. If it was more, then REITs would have a crazy return, but they don't.

Just something to keep in mind - you need money to make money. Once you get into the property business, you're also essentially stuck to living in one area unless you want to do remote landlording, which again will eat your bottom line alive.

A duplex that cash flows about $700 a month, which is a pretty good first deal. property appreciates about 5-6% per year in the area, but I don't put too much weight on appreciation when looking at a real estate investment.

When I analyze a deal, I always factor in 10% of my income going to a property manager. I refuse to manage property myself if I can help it; I don't have the experience, and I only have lots of book knowledge. I leave the management to the pros. I know enough to be able to interview and identify a good manager. I'd rather spend my time looking for my next deal. This also gives me geographic freedom, assuming I select a solid property manager. I can move anywhere I want. All I have to do is manage my managers.

real estate up in my neck of the woods has persisted fairly well when compared to the rest of the country in 2008. Prices have fallen from the RE bubble, but they remain elevated. The problem where I live is that taxes can eat up a proportionately larger part of ones bottom line than elsewhere since they are higher here. A combination of higher town taxes and lower selling value have been a reality for some homeowners, and fewer still have actually come out underwater.

Perhaps one of the bigger players in RE now is low interest rates. While banks require *some* money down, one still does not need a huge downpayment. Think about it, if interest rates are near the prime rate and certain mortgages offer interest only payment, someone with a 70,000 dollar per year job can afford a much more expensive house than they could otherwise. In a way, lower IRs combined with loaning practices can actually drive housing prices up.

As for me, I have a business idea in the works. My current job is providing some ample startup capital, and I am spending some time working out a BP, but mostly financial feasibility. Thankfully, this won't involve green fuels or government grants ( of which there will be few in the future). whew!

Know all taxes, insurance, and fees before you go into the deal. If you can still make money even with a higher than normal tax rate, it's a good deal. Obviously do your due diligence and find out WHY taxes are so high, and what they are predicted to do in the next few years. Besides, higher taxes usually indicates that the area is being taken care of well. Usually.

You don't need money to buy real estate. You certainly don't need a bank to buy real estate either. Just approach the owner and ask them for seller/owner financing and work out the terms between you two.

 

[Vice]

Guys, real estate is picking up here in the south, those of you that aren't in the game need to start learning, by the time you educate yourself you will have the ability to act in your local area.

 

[Tenacity]

Bump