Beginners guide to becoming WEALTHY

[STR8UP]

Originally posted by diplomatic_lies
By the way, do you always sell houses yourself instead of getting a real estate agent to do it? I read it somewhere about saving costs for selling property.

I haven't had to sell anything yet. I did list one property through a friend of mine awhile back, but I'm glad I didn't sell it because I paid about $48,000 for it in 1996, and remodeled it for about $12,000. It appraised for $123,000 last week.

Anyways, I have a real estate license so I always have the option of listing that license to share part of the commission should I choose.

Its too bad I can't afford a single piece of land now. I don't think a college kid with less than $20K and no assets is liable to buy property, much less manage it while studying for a transfer to law and balancing a social life.

Can't, don't, won't, couldn't, shouldn't.....you could go on forever making excuses but that's exactly what they are, excuses. Fortunes are made proving you CAN do something instead of thinking you can't.

Hmm, one of the things I hate is the government stamp duty on property, as well as their taxes. I was told recently negative gearing isn't as good as it sounds, specially with soaring tax rates in Australia.

I know nothing about the market in the next town let alone your country. You'll have to do your own research and apply the knowledge to your situation.

 

[Aztec]

I know that there's a lot of cashflow in real estate business, but I don't want to jump in based solely on word of mouth advice.

Would going to seminars or real estate courses make a big difference?

 

[STR8UP]

Originally posted by Aztec
I know that there's a lot of cashflow in real estate business, but I don't want to jump in based solely on word of mouth advice.

Would going to seminars or real estate courses make a big difference?

Absolutely. The only thing is, you're going to spend thousands of dollars on live education. If you USE the knowledge they teach you, it's worth it, but just getting started it may be hard to come up with the few grand to attend a couple of seminars.

Check this out- click here and here

Read these two articles then go poke around the rest of the site. LOTS of good info...I read for a couple of hours last night and didn't even make a dent in all the info

 

[STR8UP]

Also go to the money ideas section of cre online http://www.creonline.com/money-ideas/index.html ...it's A GOLDMINE!

Check out this article http://www.creonline.com/money-ideas/mm-008.html

It illustrates beautifully why you should basically never pay off your mortgage.

 

[alboh]

I've read Rich Dad, Poor Dad from cover to cover and it went straight into the trash. Rich Dad sounds like a miserable SOB and Poor Dad sounds like he actually had a fulfulling life. Poor Dad "went to his grave leaving nothing for his family." Oh great, now the American family has turned into a business venture?

I don't believe in tax shelters either. Calling all poor people "deadbeats" is a convenient way for greedy people to alleviate their guilt but it does nothing to advance society. I live in Canada, with an even higher rate of taxation (my dad makes $130 000 and gets taxed for half of that!!!) and I'll still gladly pay my taxes. A strong social net is a critical part of any advanced society.

If I had to pick between being Rich Dad and Poor Dad, I'd take Poor Dad. he actually sounded happy. Rich Dad slaved away night and day for a few convenience stores that'll be bulldozed and forgotten in 50 years. Poor Dad enjoyed life.

I hope to end up somewhere between the two. I'm switching to part-time school so I can get a waitering job. I'll build up some savings in case I lose my job, and then I'm going to buy a motorcycle on credit, which is one of the most expensive things you can buy with no credit history. Plus I want a motorcycle . After I've finished payments on my bike and re-sold it for a few hundred dollars less than I paid for it new (motorcycles have rediculously high re-sale values) I'm going to try and mortgage a small home to rent out downtown, then after property values downtown increase I'll sell it for a small profit and put that money into investments for retirement. Then I'll get a normal job and live life at my own pace, since my retirement is secure.

 

[STR8UP]

Originally posted by alboh
Oh great, now the American family has turned into a business venture?

Wake up kid. I don't know how it works in your country, but if you live in America and expect to live happily ever after off of social security you have a rude awakening ahead of you.

There is absolutely nothing wrong with the desire to acquire wealth. It's puds like you that perpetuate the false belief that getting rich should be accompanied with shame.

I don't believe in tax shelters either. Calling all poor people "deadbeats" is a convenient way for greedy people to alleviate their guilt but it does nothing to advance society.

Advance society? You're a punk.

What you're REALLY saying is that MY hard work should go to fund the escapades of beer swilling Joe trailer trash that doesn't see fit to get off his lazy ass and work for a living. How exactly is paying people to do nothing serving to "advance society"?

I live in Canada, with an even higher rate of taxation (my dad makes $130 000 and gets taxed for half of that!!!) and I'll still gladly pay my taxes. A strong social net is a critical part of any advanced society.

Pretty smart. Let the government take HALF of what you make to benefit others.

I have an idea! After you let the government take half why don't you take the other half and hand it out on the street corner. I'm sure everyone will appreciate your generosity for about a millisecond before they piss it away on hit of crack or whatever the hell else makes them feel good for a few minutes.

I'll build up some savings in case I lose my job,

See, that's the difference between people like you and people like me. I don't have a job! I don't need savings. I have a postive net worth.

That's right. I'm a GREEDY s.o.b. that started a business and hired people to work for me so I don't have to. And I'm such an ******* for leaving for taking a trip in a couple of weeks while my employees are slaving away to make money for me, right?

I'm going to try and mortgage a small home to rent out downtown, then after property values downtown increase I'll sell it for a small profit and put that money into investments for retirement. Then I'll get a normal job and live life at my own pace, since my retirement is secure.

First of all, working your "normal job" won't allow you to live your life at your own pace. Been there, done that. Financial independence allows you to live life at your own pace.

Since I have begun to see a return on my hard work recently, I visited Key West in November, Vegas in January, Europe in a couple of weeks, and I will be vacationing in the mountains of Georgia the first week in May. And probably a cruise a few months later. THAT'S living life at your own pace. I wouldn't trade my situation for ANYTHING.

You will be punching a time clock forever and die poor with your attitude.

Also, one small house isn't going to be much of a retirement plan, I'm sorry to say.

 

[livin large]

str8up - I'm glad you saw that post before me. You were a lot nicer than I would have been, and I'm sure you were even nicer than you wanted to be. The good news is there will always be people like him to work for people like us.

 

[Sire]

I'm almost finished with Rich Dad, Poor Dad and I think it's an excellent book. Anyone who doesn't get the concepts in this book deserves to work for chump change the rest of their life.

Hey STR8UP, Do u have any book recomendations that would give me some good info on corporations and the tax benefits from owning one? I'm in the process of aquiring a small LLC, and need all the info I can get on running a small start up company.

Sire

 

[Cesare Cardinali]

Hey Alboh,

Once you get out of high school and if you ever start earning some decent cash, you will NOT be happy at all when 53% of it gets taken by the tax man.

Using your dad as an example is really stupid here, at least if you were directly experiencing this than you'd have some credibility. Let me ask you: "Is Daddy happy paying 53% of his income to the tax man?". I doubt it.

We are both from Montreal and I know that when I get my paycheck (which is quite high ), I am always baffled by how messed up it is that I have to pay 53% of it as taxes.

And you know what else, once you walk away with 47% of your money, you then have to pay an extra 15% sales tax whenever you buy stuff. Is your daddy happy about that too? Do you think you will be? Grow up dude.

One last thing, have you ever been to a hospital recently? Most people in the emergency room stay 12 hours without getting looked at because our health care system sucks sh*t.

All the tax dollars they take, and we have people who can't get beds in the hospital because there are no funds to pay for health care. Doctors go on strike, their is mold in the hospitals. How is that for a "strong social net"? Our own Prime Minister goes to the US when he needs any medical treatment.

And look at our Universities! The tuition is subsidized with our tax dollars and so anyone can afford it. Wonderful.

Tons of people graduate with Bachelor's degrees and can't get decent jobs so they go to the US. Ask your daddy about the "Brain Drain Phenomenon".

And not just that, but we can't attract any descent professors to teach at the University level because we can't pay them competitively. What does this do to the quality of education that we are offering?

You may want to read a newspaper occasionally....

Cheers,

Cesare Cardinali

 

[alboh]

Originally posted by Cesare Cardinali
Hey Alboh,

Once you get out of high school and if you ever start earning some decent cash, you will NOT be happy at all when 53% of it gets taken by the tax man.

Using your dad as an example is really stupid here, at least if you were directly experiencing this than you'd have some credibility. Let me ask you: "Is Daddy happy paying 53% of his income to the tax man?". I doubt it.

Actually yes he is. I think I'd know since he's my father and all.

And look at our Universities! The tuition is subsidized with our tax dollars and so anyone can afford it. Wonderful.

Tons of people graduate with Bachelor's degrees and can't get decent jobs so they go to the US. Ask your daddy about the "Brain Drain Phenomenon".

The "Brain Drain" is a MYTH constantly pushed forward by the National Post and the Fraser Institute. Statistics show that a lot of the few Canadians who moved to the United States are now MOVING BACK because they find the quality of life here much better. My "daddy" actually worked for the National Post for awhile.

Canada needs MORE skilled workers and creative people. That is why we subsidize univesities. More educated people = a better society to live in. I'd argue this further but since it has nothing to do with the GDP it would probably be lost on a lot of you.

Like I said before, it's all about what kind of society you want to live in. Social services don't just benefit the poor, they benefit everyone. 99% of poor people are NOT lazy. Being on welfare is not an easy time by any means. The fact is that capitalism will always produce a large class of poor.

When I was growing up in Toronto, as I've said before, my parents made sure our house was in a mixed-income community. I found out why this was when I would visit the houses of my dad's rich friends, and later when I went to an exclusive private school. These people were MESSED UP and anything but happy. A lot of the poor kids in my neighbourhood were happier than my rich friends in Forest Hill (a rich part of Toronto, more like a rich ghetto) who had two-floor bedrooms.

I give up. I'll do my thing and you do yours. We'll see who's happier in fourty years.

 

[Cesare Cardinali]

Alboh,

What about our hosptitals? Is everyone benefiting from them?

You just completely ingnored that aspect because it is the BIGGEST embarassment that our province faces and it can't be justified by the government "not having enough money" when they tax the citizens to death.


Quote:
"99% of poor people are NOT lazy".

Where did you get this lovely statistic?

If welfare wasn't almost as high as minimum wage, then we wouldn't have so many poor lazy people using our tax dollars to be on welfare, and then work "under the table" to earn some extra bucks.

Dude, we can argue this stuff all day, but the idea that wealth is somehow bad for society is pretty f*cked up coming from a guy who grew up going to all the exclusive private schools.

What the f*ck? It would be like Brad Pitt telling the DJs that looks don't matter.

Cheers,

Cesare Cardinali

 

[Sire]

Originally posted by alboh
(a rich part of Toronto, more like a rich ghetto)

A rich ghetto???ROTFLMFAO!!!!!!!!!

 

[diplomatic_lies]

You have to find a good balance between tax rates and social services.



Tax rates in Australia are very high. You can lose 50% of your money if you go over the $50K mark.



However, if it wasn't for such rates, college/university wouldn't be so cheap. The government loans students interest-free money for college, and a law degree at the best university only costs $6999 per year or so. If you pay upfront its a 25% discount - and most students can really earn enough to pay upfront.



Some countries don't have high tax rates. China, for example, has very low tax. You don't even get taxed for foreign transactions. However, you also have to pay for everything - to purchase luxuries has an extra tax attached, most bridges have a "toll", and even in public toilets you need to buy toilet paper (I think it used to be 20 cents for 10 papers).

 

[STR8UP]

Originally posted by livin large
The good news is there will always be people like him to work for people like us.

Dontcha love it?

Every time someone's incompetence causes me grief all I have to do is remember that without all the fukkups there wouldn't be any way for me to get to where I'm at.

Hey STR8UP, Do u have any book recomendations that would give me some good info on corporations and the tax benefits from owning one? I'm in the process of aquiring a small LLC, and need all the info I can get on running a small start up company.

For structuring advice I would speak to an accountant. The few dollars you spend will pay for themselves. It is likely you will have to have one prepare the documents for you anyways, so just kill two birds with one stone.

One quick bit of advice...a consultant that knows his sh!t in your field will be worth his weight in gold. Don't spend six years learning the hard way; trial and error is WAY too expensive.

And you know what else, once you walk away with 47% of your money, you then have to pay an extra 15% sales tax whenever you buy stuff.

Holy friggin COW! Our sales tax is only 6.5% and income taxes are much less too.

You guys have it rough.

Social services don't just benefit the poor, they benefit everyone.

Yea, you're right. I'll try to remember that the next time I'm in the food stamp line. Abusers of the welfare system should be left to STARVE.

Natural selection shouldn't be stifled by a social system that artificially rewards those who don't pull their weight. Try living 10,000 years ago and crying that everyone else should feed, clothe, and shelter you because you are down on your luck. You would DIE. And rightfully so. Oh, but in a "civilized" society we don't allow that sort of thing to happen, do we?

99% of poor people are NOT lazy. Being on welfare is not an easy time by any means.

Most poor people lack ambition. Most would rather complain about why they CAN'T get rich rather than take the time and effort to figure out how they CAN. That is the ONLY thing that separates the rich and the poor.

Welfare is a WAY OF LIFE for too many people. A person should be allowed to withdraw no more than they deposit. Ms. Fukksalot popping out one child after another because that's how she makes a living shouldn't be allowed to live off my dime. If someone gets into a bind welfare should be there for TEMPORARY, SHORT TERM assistance.

The fact is that capitalism will always produce a large class of poor.

Go live in Iraq. We'll let Saddam bend you over for a couple of years and then see what you have to say.

 

[Aurelio Tiziano]

.....

In Italy the sales tax is 20%

Personal income taxes go up to 46%, and if you add all the regional and local taxes it goes up to 60%

Tax evasion here is very common. The fact is public services here are pretty shytty, and they just raised the public transport fares by 30%.

In Norway however, tax rates go up to 70% but their sytem is almost flawless


Cheers

 

[Aurelio Tiziano]

.....

Regarding the discussion of all people on welfare being scoundrels:

Many of them are people who have lost jobs and could not afford the rent anymore, and were left out.

I'm sure many overuse the sytem, but you can't tell they are all scoundrels who are lazy.

Unemployment is a serious matter


Cheers

 

[STR8UP]

Re: .....

Originally posted by Aurelio Tiziano
Regarding the discussion of all people on welfare being scoundrels:

Many of them are people who have lost jobs and could not afford the rent anymore, and were left out.

I'm sure many overuse the sytem, but you can't tell they are all scoundrels who are lazy.

Unemployment is a serious matter


Cheers

I realize that not everyone on here lives in the U.S., so I have to take this fact into account.

Look. There was a point in time when my family was on welfare and it helped us through a rough time. My parents lost a lot of money on a business transaction. We received food stamps and I've even enjoyed the epicure pleasure that is government cheese on a couple of occasions.

But the fact of the matter remains- most people ABUSE the system. They know that a safety net is in place and therfore put LESS effort into helping themselves.

There is absolutely NO EXCUSE aside from severe mental or physical disabilities that should prevent ANYONE living in the U.S. in 2003 from being a productive citizen.

 

[Brad23]

STR8UP!

Hey man this is turning into a really interesting thread.

One thing is, I'm from the UK and pretty much everywhere in this country the rental income you can expect to receive will rarely cover any buy to let mortgage you are granted.

I guess what I'm saying is, can UK citizens buy US land and property and develop it/sell it on for profit?

Or do you have to be a US citizen?

I know it may sound like a dumb question but land prices with planning permission in the UK are sky-rocketing, even with the threat of war.

Have you ever been involved in a project where you actually built a house or some other property from scratch and sold it on at a profit?

Because I get the feeling that the potential return on such projects would be phenomenally impressive, it's a big commitment to take on, but who cares when you consider the profits?

 

[kingNav]

A friend of mine decided to buy a condo/apartment which will cost him about 90,000 to own, with a 10k down payment. Immediately I started thinking about maybe buying one and renting it out. My question is, how do I find out if the prices of real estate in that area are at a high or a low..?

 

[STR8UP]

Originally posted by Brad23
One thing is, I'm from the UK and pretty much everywhere in this country the rental income you can expect to receive will rarely cover any buy to let mortgage you are granted.

It is the same way in the immediate vicinity if where I live, but fortunately you can still find potential positive cash flow situations in surrounding towns.

Not all methods will work in all areas. You really need to study materials from numerous authors and find something that is applicable to your locale.

I guess what I'm saying is, can UK citizens buy US land and property and develop it/sell it on for profit?

Of course. The area I live in has MANY UK investors. They buy properties for vacation (or as you say, holiday) rental. I don't know the visa restrictions. I'm pretty sure most of them have a lot of cash to begin with....probably not an ideal situation for beginning investors.

I know it may sound like a dumb question but land prices with planning permission in the UK are sky-rocketing, even with the threat of war.

Which is EXACTLY why you should do everything in your power to acquire as much property as you can. Then as values skrocket you laugh all the way to the bank.

Have you ever been involved in a project where you actually built a house or some other property from scratch and sold it on at a profit?

Contractors do it all the time. But do you really want to be a contractor? Real money is made with a pen, not with a hammer.