I want financial freedom by the time I'm 21

[backbreaker]

someth ing else I want to comment on is the social aspects of things.


Now, believe it or not, you can have a life.

But it has to be structured just like your business.

For instance, most guys my age would just sit around and say "it's friday, we are giong to kick it tonight" and sit around all day long waiting for night time, go out and come home. Wasted an entire day.

Me, I knew on Sunday if I wanted to go out on Say, Thursday, and I would take in account everything I had to do and plan around going out on Thurday. There has been times, espically x-mas time, where I couldn't afford to go out because I couldn't be groggy the next day at work.

 

[SELF-MASTERY]

I'm going to become an online poker cheat and profiteer to build enough money to go into a more profitable line of work.

 

[longwood]

Originally posted by SELF-MASTERY
I'm going to become an online poker cheat and profiteer to build enough money to go into a more profitable line of work.

Finally, someone who actually makes sense

 

[Double]

what you mean with cheating??running an odds calculator??

 

[SELF-MASTERY]

I'm not commenting about the poker thing.

They say do what you're passionate about and the money will follow. It's more like, find something that makes money and you will become passionate at it!

This might be the best quote I've ever read on the internet.

Have you guys ever thought about buying a pre-existing business? I was scanning some business seller website and looking at all of these companies for sale. You would have to carefully audit their books to determine how profitable of an investment it would be, but it is a great option. I've seen businesses for sale for 150K, some lower and some much higher. The same amount spent on real estate would take several years to become truly profitable, making 200 over your mortgage isnt ****, but a waiting game.

If the 150k business nets you around 50k your so much ahead of purchasing 150k in investment properties. Right now my goal is to work on my credit score, find a second job and save. In the next 2 years I want to buy someone elses profitable business with a built in customer base. My target businesses are ones that do not require alot of the owners time. Hell, i would take less of a profit and let some mid-level manager type play king for me.

I think that that would be more profitable than buying and holding real estate. I think flipping and wholesale re are better for ppl who want money NOW.

 

[Page]

the problem with flipping is that it depends on the market. Now is a good time to flip b/c the market is at a high, and it's definitely a seller's market. In a few years, the market will turn and prices will go down, and it will be a bad idea to flip.

Buying a pre-existing business can get you money, but first you should have some experience in running a business. Before you put the business on auto-pilot and have other people run it for you, you should run it yourself for awhile to get a feel for it and to learn the basics of the trade. This is important because you have to be able to check employees for incompetence and dishonesty, and that can be hard to do unless you yourself are familiar with what they are doing. The best way to get experience is to start your own business and learn from your own mistakes and successes, and just learn how to survive in and grow a business in general. The reason for this is chances are, a lot of the businesses that are for sale are probably on the rocks or will be soon, and you need to know how to turn a failing business around in order to make it profitable. Some people are born with the instincts you need to do well in business and investing, but those are a select few. The rest of us have to develop the instincts through experience.

Also, keep in mind that business and Real estate investing are totally different games, and what will work in business might completely fvck you over in investing.


in regards to the poker thing... I hope you are kidding.

 

[SELF-MASTERY]

I'm completely serious about the poker thing:woo: I cheat ppl and take their money, we're all gamblers anyway.

I think starting your own business first is the long way to profit. Why not jump right in. Do your due dilegence (spllng) audit the business you plan to buy and just do the damn thing. Your more likely to fail starting a new biz than with one that is already established and has a reliable client base.... Why make things any harder. What exactly do you learn from your failed business??? I think some lessons can be learned from others.

 

[STR8UP]

Have you guys ever thought about buying a pre-existing business?

Keep in mind that MOST people involved in business would probably be better off working for someone else. It takes a certain kind of person with multiple talents to make serious money in business. If you don't have the ability to oversee, motivate and lead people forget it. You also have to be efficient at marketing and many other areas just to keep your head above water.

I wouldn't even want to begin to go into all of the skills needed to run a successful business. If you only remember ONE thing though, it should be that in business the real money is made on the asset end (creating a VALUABLE business) which is usually all about leveraging your system and ideas. You probably won;t get rich if you don't replicate and multiply your business.

 

[longwood]

buy a subway

 

[Page]

Str8up, maybe you can explain something to me.


I've heard that it's possible to get cash (several thousand $$$ ) in your hand when you buy property, but I've never understood how "cash at closing" works. Please explain it to me.


Thanks.

 

[Page]

Originally posted by longwood
buy a subway

Unfortunately, that's a franchise, which teaches you nothing about business b/c everything is done for you. It's better to develop your own business model and learn for yourself through trial and error.

 

[Smooth Player 056]

Originally posted by Page
Unfortunately, that's a franchise, which teaches you nothing about business b/c everything is done for you. It's better to develop your own business model and learn for yourself through trial and error.

agreed



- Smooth Player 056 -
Founder and Creator of the HSDJBC/ Contest

 

[SELF-MASTERY]

Originally posted by Smooth Player 056
agreed
- Smooth Player 056 -
Founder and Creator of the HSDJBC/ Contest

Disagree. People who own a subway do receive help from the corp office, but at the end of the day their marketing skills, and ability to lead is what makes them a profit. I just read an article last week about a guy who bought a subway franchise from a guy who couldn't make a decent profit, he told subway that he could make some crazy amt in profits in the next 3 months, and he did it!!! He took the subway model and branched out into delivery, school and bizness catering, and extended hours. Who want to risk their hard earned money own Bill's sub shop, when subway already has a BIG name and fatties every where dying to be the next Jared.

This whole create from the ground up **** is too idealized, who wants the higher failure rate???? iF you must live this fantasy start a low overhead bizness.

 

[STR8UP]

Originally posted by Page
Str8up, maybe you can explain something to me.


I've heard that it's possible to get cash (several thousand $$$ ) in your hand when you buy property, but I've never understood how "cash at closing" works. Please explain it to me.


Thanks.

It's all about borrowing as much money as you can when you buy.

Sometimes you can work out a deal with the seller to hold financing. You might be able to write the sales contract for more money and get the seller to give you a kickback for closing costs. There are MANY different creative ways to do this, you just have to figure out how to assemble a few of them together to make it work for a particular deal.

Lenders are getting tighter on their seasoning requirements (the amount of time you must hold title to the property before you can refinance), but one of my first properties I bought and remodeled with credit cards then turned around and obtained a 90% investor mortgage on the new higher appraised value which paid off all of my expenses and gave me $7,000 at closing! This was only my second property, so you can imagine how elated I was.

 

[Page]

Originally posted by STR8UP

Sometimes you can work out a deal with the seller to hold financing.

What do you mean by "hold financing"? I googled it and came up with nothing that made any sense.

Anyway, here's what I've been up to:

Yesterday I went to a place that was zoned for multiplexes and I wrote down the addresses of some nice little 3 and 4-plexes that were somewhat distressed. Tommorrow I'm going down to city hall to find the owners in public records.

Also, would now be a good time to get a nevada corporation?

 

[diablo]

Interesting thread thus far. As many of you on here are doing as well, I'm always looking for ways to increase the amount of money I've got going into my bank account. I read this thread over the course of the last half hour and was motivated enough to start doing something I'd been sitting on the fence about.

I'm an eBay powerseller, and a registered Trading Assistant. Recently I developed an idea to cold-call business, contractors, manufacturers, etc in the area and offer to sell any stuff they don't want on eBay. While I'm not going to go into specifics regarding what I say or how I say it, let's just assume that it's a very convincing speech.

The first call I made got a voicemail. A second business got me in touch with the guy I wanted to talk to - who has a $1500 widget that he'd like sold... 35% of which will be mine. The third call I've made today (back to back) landed me with a potential goldmine of items (35% once again). I'm both impressed and surprised at how easy this really is - it's true that it's all in how you sell yourself. Just thought I'd share that, it's back to the phone for me.

 

[Page]

Str8up, i just thought of something else.

Most of the time, a property that I will be buying will not be owned free and clear by the owner, so there is the issue of existing mortgages/loans. Will I have to pay these off in addition to my own loan/mortgage or is there a better way to deal with them?

please advise.

 

[sifer]

Originally posted by Page
Str8up, i just thought of something else.

Most of the time, a property that I will be buying will not be owned free and clear by the owner, so there is the issue of existing mortgages/loans. Will I have to pay these off in addition to my own loan/mortgage or is there a better way to deal with them?

please advise.

No you won't and yes you will.

Some seller want to sell it off without paying it off, you can assume mortgage.

Some seller want to pay it off thus selling you the house full price, so you can buy it with a new mortgage.

Depends.

 

[Page]

Property location field report

Well, I've had an interesting day:

I went down to Long Beach City Hall, (which was pure hell to find even though I had an address-- it was hidden in a maze of tall commercial buildings and narrow one-way streets) and after being given the standard runaround I found out that I had to go to the LA county Tax assessor to get the owners of properties. Well, I went home and called them up and while they could provide me with the name of the owner of the property in question, they couldn't give me a phone number. Fortunately, the building I wantto buy has a vacant unit (hmm..... possible leverage? I would think so b/c the place pretty much looks like hell (peeling paint, dead lawn, etc.)) and there is a sign with the phone number I need out front.

 

[STR8UP]

Originally posted by Page
Str8up, i just thought of something else.

Most of the time, a property that I will be buying will not be owned free and clear by the owner, so there is the issue of existing mortgages/loans. Will I have to pay these off in addition to my own loan/mortgage or is there a better way to deal with them?

please advise.

There is no simple answer to this question. You can get into sticky issues with due on sale clauses and such. There are ways to get around most any problem though, and that is the key to putting together a successful deal.

Best thing to do is read up on no money down techniques (which apply to what you are asking as well). Sheets, Whitney, Allen, they all have good ideas. Too much for many for me to go into detail on here, thats for sure.