For SERIOUS investors only

[STR8UP]

Originally posted by sifer
A-Unit says...
Not true. To be LIKE the rich, or pro's, you have to IMITATE them.


I personally disagree. Why? Simple, imitation is suicide. You never walk in the same path the king did.

You do have to imitate the things that rich people do in order to be wealthy. Basically, you have to buy assets. The better you are at it, the more money you make.

That's not to say that you don't develop your own strategies and find your niche. Absolutely...there is no one right path. EVERYONE takes a different path, but it all comes back to the fact that in order to be rich you have to buy assets. Most of the time when you are developing your own system you will find that OUR OWN ideas end up being better than anything you aver learned about.

Be an innovator, but don't ever be afraid to emulate the methods of the wealthy.

 

[STR8UP]

Originally posted by sifer
Stock does not work like real estate.

You cannot change stock like you can with real estate.

You cannot negotiate price in stock like you can with real estate.

You cannot get a big loan for stock like you can for real estate.

You cannot KNOW how much you'll get on your returns in stocks unlike real estate which you generally KNOW (except in God's will, when there's an earthquake or tsunami, in which case... ah what the heck, people's lives are at stake then, stop worrying about your pile of broken house and go help those poor guys!).

You cannot maintain your stock like you can with your real estate.

You can send chocolates to the company you invest in and say "please do well, my brother, please..." but you can do the same in real estate too. My soon-to-be partner (I'm getting a new one, my other one is moving out of state to live with his girlfriend [or soon-to-be wife]) told me he sends a card and a chocolate on occasions like birthday and holidays. That helps.

This is what these doom and gloomers don't seem to understand.

When you own a company or RE you have so much more direct control over the fate of your money. You aren't at nearly as much risk as you are when dealing with an over-exhuberant stock market where any joe blow can gamble $1,000 by opening an Etrade account in a matter of days. THAT's what killed the stock market. Ain't gonna go down that way with RE, I'll tell you that right now. People will ALWAYS need a place to live. Last time I checked, owning a few shares of stock isn't essential to life as we know it.

The stock market is a convenient, pre-packaged investment vehicle that is easy to get into and out of. But when investing in this sort of thing you have to take the negatives tight alongside the positives. One of the BIG negatives is not having direct control over your money. You are simply relying on other people to do it for you and the good graces of the market and economy as a whole at any given time.

Last time I checked, RE prices don't fluctuate by 5% in one day because CNN announced some kind of a disaster or strike on the other side of the world. Now THAT'S instablity.

Sifer hit the nail on the head with this post. To compare stocks and real estate is ridiculous.

 

[Egoist]

Re: Re: Re: Re:

Originally posted by al77
You have to look closer how stock can give you 1000%.
Start with looking at stock below $5. There are plenty of them. Some will go up and split a couple of time. If you catch thsi early when the stock goes to $50-100 you will have your 1000% retrun.

The problem is there are too many of such stocks.. we can't bet even on most of them.


Ok, here is a practical example: XMSR and SIRI.

One will win in terms of standards and I believe will eat the other company. The winner will go up a lot. But I don't know which them win and when. Would you bet even $10k on any of them now?
You would probably say "ahh.. tehy do not promise much now". right. Thats why they have a potential to go up 1000%, but now nobody wants to buy them since they are not even making profit.

dude, no offense, but like have you ever made significant money in the stock market? because it really doesn't sound like it

 

[STR8UP]

Originally posted by Bible_Belt
You cannot negotiate price in stock like you can with real estate.

"Negotiation" with stocks is buying when most people are selling. The bid/offer system is such that every trade is actually a successful negotiation between a buyer and a seller.

You aren't negotiating the price so much as you are paying MARKET price at any given time with a stock, that is what he is saying.

You can't get a stock for a lower price than the average seller is selling for at that given moment in time. With RE you CAN get a price that is lower than the rest of the market is selling for at any given time. Anywhere from a small discount to pennies on the dollar is possible. YOU CAN'T DO THAT WITH STOCKS! And that's a big reason why the stock market is such a wait and hope gamble. No matter how good you are you can't get excess value when you buy.

Smart investors take what the market will give and ride it for all it's worth. But when things change, they find something else that the market is giving.

Which is a great reason to become a smart investor.

Gains are given by the market, not generated by anyone's individual brilliance.

Again,this is assuming that everyone who is making money in RE is doing so because of a rapidly appreciating market. The smart investors you refer to above know better.

My RE agent calls me up once or twice every month with a new project that I can get into. I look at the area, the market, the terms, etc. and lately I have decided to pass on most of what I see becuase I just don't see the value.

On the other hand, he contacted me recently about a condo conversion project that is in a rapidly developing area close to a high end shopping mall. I literally have first shot at whatever I want, and since the units start at only $135k (it's tough to find anything here nowadays for less than $175) I intend to buy a couple of them. Costs me $5k down, and they won't even be ready until late this year (which likely means a bonus in the form of appreciation).

So basically, I am buying into a profit with only minimal funds. I am also buying TIME for the unit to possibly go up in value even more. But the point is, I will have already made money when I sign the papers. That's what's important.

 

[STR8UP]

Re: Re: Re:

Originally posted by Egoist
which fvcking world do you live in????

find me a stock with a 15% chance of going up 1000%, and I will bring you fvcking millions tomorrow.

you guys should like stick to talking about broads that you can't get or something.





no sh!t, right?


thats why i say once again, this is a board for discussing broads, not attempting to give or receive investment advice.

Dude, I don't know where the negative attitude comes from, but I assume you are interested in this stuff cause you always have a pissy comment to make.

I can assure you that if you don't check the attitude you aren't gonna get very far with money, that's for sure.

 

[Egoist]

Re: Re: Re: Re:

Originally posted by STR8UP


I can assure you that if you don't check the attitude you aren't gonna get very far with money, that's for sure.

my accountant and my employees would disagree.

but you guys should like get back to discussing rich dad poor dad and how to make 10x return on ****ty stocks

 

[Luveno]

I can get a close to $150000 LOC with an annual rate of prime, which was 4.75% interest last time I checked.

Somehow I think that prime rate is a little steep to be using to make an investment. That's near $7000 a year on top. That would mean that my investment would have to more than that a year.

Of course, I suppose it all comes down to how much rent I charge. Around here it's competitive to say that rent is $500~600/mo. If I have...4 BR, then. 2400x12 = 28800. Now that is profit. But to actually get an investment property I'll need another 150000 (ie a partner) and that cuts profits right in half to 14400. That means my 150000 would take a long long time to pay off.

What I'm also concerned about is the general cost of upkeep etc. And taxation is something I have to research.

Question:
Do you think I could get a better loan than that? Keep in mind I'm in Canada, where it appears that the dealmaking and loan negotiation isn't as flexible as it is in the US.

 

[STR8UP]

Re: Re: Re: Re: Re:

Originally posted by Egoist
my accountant and my employees would disagree.

Yea, right.

but you guys should like get back to discussing rich dad poor dad and how to make 10x return on ****ty stocks

Just goes to show that you don't know nearly as much about money as you think you do. Pretty much anyone who has been through it will tell you that Richdad principles are solid.

Maybe you should cut the complaining and try to learn something from these threads. But then again, you got it all figured out, don't you?

 

[A-Unit]

All For Naught

Though it isn't MY reality, I assume those who WANT to make money want to discuss the positives and negatives of certain investments, INSTEAD of bickering over who's "ego" position is stronger.

It's the light bulb idea, that it took 1000+ failures to get the 1 light bulb right. It will take ALOT of looking to find 1 good investment, but in the end, IF it goes the right way, you're golden. And success in investing is a function of due diligence, knowledge, temperment, experience, and ability.

Those who "naysay" other methods limit their thinking, and if what you say is the ONLY WAY THAT works, then it wouldn't be profitable, because OTHERS could imitate, copy it, and drive the profit RIGHT out of it. Over time of course.

It comes to the personality. If you're a flipper, maybe you like day-trading, or buy/selling options. Maybe you'd like currencies, or the futures markets.

I wouldn't naysay ANY investment style that applies, because markets differ. INFACT, I'll congratulate those MOVING away from the 95% and taking control of their finances?

Why aren't other's doing that?

What do you gain by naysaying other people's styles?

In doing so, are you going to train them your supposedly concrete methods?

Are you so widely trained that you can speak out on said topic and subsequently tutor us?

If you had a network of investors, some with burgeoning success, other's with apparent millions, would you criticize the others, yet they've walked a line you haven't???

--------------------------

You could say ONE style doesn't work, but that's only because YOUR PREMISE is wrong.

I know of a gentleman in NH who has his own business, and buys land, too.

Cry out: It's overvalued!!!

Yet, he doesn't NEED to flip now. In fact, lots of his land afronds lakes or the lake he is on, as well as commercial property he has. This is something he's been doing for years, maybe years. He KNOWS his area, both his hometown AND vacation land, a well sought-after hotspot. Lake front land WILL always be valuable, b/c it can't just GO up, and he'd hold until he say BETTER VALUE ELSEWHERE. If you can find BETTER VALUE elsewhere, you're likely to find a GOOD market, and to me, it's not about the MARKET being good, but about the investor being wise and ready to take chances, with minimal risk (not no risk).

The market (stock) always has stocks on the rise and decline, money can always be made, but some are thinking in only 1 direction.



I'm just not sure how anyone, including those doing it, benefit by naysaying one style, one instrument, or even one method. You're no richer. You have no more friends than before. You're no wiser. You're just bitter, and supposedly intelligent. At least to yourself.




A-Unit