How Many People Are Rich?
I was just thinking about this... and wondering how many people on here are actually rich investors? I know that the term "rich" can be defined in so many ways. But I'm asking specifically how many people on here have actually gone out and done enough deals to reach the seven-figure mark? There are alot of investors out there today and to be honest, probably not too many actually work hard at going out and closing those deals. So I'm wondering if investing is really all it's hyped up to be. After all, that's why we're all here isn't it... to learn to invest, network, and become financially free? I know that's why I got into it. So let's here is folks, any of you guys in the seven-figure club because of investing? Thanks, and please don't flame.
As a newbie, sort of...Here are my definitions I got from one of many REI books. And my personal goals also
Paper Millionaire: controlling 1,000,000 worth of assets.
Net Millionaire: Actual Net worth of 1,000,000.
Cash Millionaire: ability to come up with 1,000,000 in cash within 72 hrs.
I'm still working on the paper, but making good progress.
Dave
Based on your profile, I'm guessing you're an IRS employee bucking for a promotion. Sorry, you're not going to get it based on my reply. I've only been involved in real estate a relatively short while. But I've set some goals for myself and that's what I think is key to eventually being in that 7 figure club. What are the goals?
$1 million property value within 2-3 years
$1 million equity within 5 years
$1 million cash within 10 years
Although I must admit that I'm starting to rethink that final goal line. If I end up having a million in cash sitting around, that sounds like a waste. A good chunk of that should probably be back in the fight earning even more for me. Hmm, something to ponder for a while.
[addsig]
$1 million property value within 2-3 years
$1 million equity within 5 years
$1 million cash within 10 years
Although I must admit that I'm starting to rethink that final goal line. If I end up having a million in cash sitting around, that sounds like a waste. A good chunk of that should probably be back in the fight earning even more for me. Hmm, something to ponder for a while. <IMG SRC="images/forum/smilies/icon_lol.gif">
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I totally agree with the above post. That woul be waste carrying $1,000,000 in your bank account. Make your money work for you.
There is money to be made in real estate, but it does take work. about 30% investors that I work with (I'm a realtor) have done really well with real estate over the past few years, 30% are struggling to get into real estate investing, and 30% want to invest, but are too afraid or too cheap (looking for the elusive great deal) to really make any money.
The one's that seem to be doing the best, are the ones that know the market, and buy reasonable deals...make a little, move on to the next deal.
A good example: one client had to beg/borrow and negotiate to get his first house. Made less than $5,000 on it..took the money, bought another one, made a little, moved on..... Now he is worth millions and in less than 5 years.
I would love to say that I am the one that made him rich...I just brought him reasonable deals.... He took a chance, a little money and made a lot..by knowing the market and believing. Good luck!
I am so in the red on my first real estate deal, its not even funny.
Almost makes me want to get out completely. Nothing but stress.
I think it is imperative to mention that it is never easy to make a quick buck in real-estate or any type of investment. There are exceptions to the rule and people can find some amazing deals but for most people it takes time.
$1 Mill. in cash is definately a waste when you could have it diversified in several investment's not just real-estate.
Now back to the guy in Red on his first deal. What are the specs in that deal and did you make sure the numbers worked from the beg.? Maybe we can help you out. Just remember to be successful you continue to learn, it never ends.
You really should read "The Millionaire Next Door". 2 lessons that you'd learn: Those who look like they have money often don't, and those who don't look like they have money, very well may. Secondly 8 out of 10 self made millionaires use real estate as their vehicle. Many make a name for themselves by doing other things after that, but they make their $ in RE first.
I can understand the reason for your question. You want to know if money can REALLY be made doing the things that are discussed here. This has been discussed previously also.
This needs to be an anonomous poll. People are private about their finaces. Would you want your tentants to find out that you made $3M per year when you're raising their rents???
I personally know a number of "millionaire" users here on TCI. I could give you the usernames of many that are millionaires (by several definitions)......but I won't because I respect their privacy. You may want to check out the survey results at:
http://www.thecreativeinvestor.com/modules.php?name=Surveys&op=results&pollID=55&mode=nested&order=0&thold=0
5% did 20+ units/houses/deals last year, and probably got $100 per month cf (at least) or $4000 profit from each ( on the low end). That said, 48% of the users here did at least one deal last year. Keep in mind, one deal can net $30K, so even the users in the 1-5 units category (35%) may have done well financially from it.
Donald Trump isn't on here because #1. He already has a system that works, and #2. He's busy working or busy playing. There are some people on here that are here to help people because they enjoy it. Most of us have some things to figure out still. After all...will you be logging on to TCI everyday after you're worth 10M and not worried about money?
Here are a few examples of investors that I know personally (some on TCI, some not).
70 year old woman. Owns 44 units of apartments, 1.5M net worth, hasn't had a job in 50 years.
23 yr old student: First rehab made $400 CF for one year (to avoid short term cap gains) and recieved $35K one year later. - Rehab took 3 months (while he was working his other job and in school).
35 year old investor. Started 4 years ago. Does mostly short sales. Does about 6 deals per month, $25K + per deal. Do the math.
43 (or so) year old investor. Even if he does nothing, he'll bring in 500K cash in the next 3 years as his lease options are refinanced.
yet another...5 years after starting investing in RE he was a millionaire. Still investing.
and another friend....First deal cash flowed a couple grand a month and netted $400K in equity
another bought real estate with student loan money. Pays 3% interest and owns 5 homes (2 of them free and clear) and he's still in school.
I could go on, as could many of you, but I won't.
YES YOU CAN MAKE MONEY IN REAL ESTATE. Most people don't, BEAUSE most people don't ever really try . If you educate yourself, put in your time, and work smart, there's no reason why you can't do well in RE. Period.
Imagine you use only ONE of the investing techniques below and get good at it:
Short Sales:
4 deals per year
$20-30K (and up) per deal
Sub. To:
12 Deals per year
$1-2K up front (per deal)
$100-500 CF per deal per month (per deal)
$10-20K at the end (3 years later) (per deal)
Lease Option:
(see sub. to)
Wholesale:
10 deals per year
$4-10K per deal
Birddog/Flipping Contracts:
30 deals per year
$1-2K per deal
Rehab:
5 deals per year
$30K per deal.
Buy and hold:
10 units per year
$200 CF per month (per unit)
10-30% equity (if you buy right)
It's realistic to do any one of those scenarios part time and without quiting your day job. Now do 2 or 3 of them and double the numbers. Or get your system down and do one of them, but 10 times the volume.
Making money in real estate isn't easy.....but it's an easy way to make money.
jwilson, you are so inspiring! I just hope not to be that guy that became brave when the investing in RE take a deep. hey, who dears wins. Right?
Great post Hibby.
Wow Hibby,
That sure was a good post Motivational is one but actually stating that people have actually done it and made it big or close enough does give the confidence that it could happen to anyone of us!! So keep trying folks and Riches to all!
Thanks
Father-in-law worked for years as a broker/agent and won many Realtor awards.
He did well financially; he would be considered 'comfortable' at about $150K per year.
Three years ago, he rolled the dice, sought out commercial tenants and built buildings for them. He leases to the companies but owns the buildings and therefore now has a net worth of $5 million plus, with his equity growing by the day. The key here is finding strong, national companies who will sign 15
year leases.
Was it quick and easy? Not at all...it was very risky and he called in many favors from his days as a broker to get the deals done.
I own a non-RE business and have made and lost and re-made two fortunes over the past few years. I can tell you from experience that NO business is a sure bet and in most cases, it takes years to build a fortune, not months.
Don't get caught up in the hype. There are many succesful people on these boards but also many wannabees who are full of ambition but lacking in real-world knowledge. They will parrot back information from their guru tapes without any first-hand knowledge. Stick with those that have been there, done that.
Yes, you can make a fortune, but you can lose it too. Tread cautiously and build relationships.
Hope this helps.
Hibby have you thought about writing a book? ha ha......go for it
I have worked for big coporations, liltle companies and all in between for a pay check and security. What security? I have been downsized twice (fired) my wife has been downsized once.
Four years ago I started investing full time. A year after that my wife became a full time mom.
What is our goal? Never ever, ever again have to go get a real job!
I think the point of having a million in cash at the bank is that you are so rich that it really doesn't matter. It's your pleasure and play money.
Think about it; do you really think Bill Gates looks at his bank account and says "oh no I have 1 Million in the bank just sitting, I better invest it." No, it's play money to him. A drop in the Bucket.
pr_feedback ....very well put.
Hibby - Please submit that reply you posted to TCI as an article, I think everyone should have the chance to read that. Very well written and highly motivational.
Mike
I really enjoyed "the millionare next door", in fact I have a copy on my shelf.
I want to spend "all" my time doing what pays the best! Why be terrified of something with only a 20% return?.
I am going to define rich (well off anyway) and a few other statistics.
If you earn 100K a year or more you are in the top 10% of income earners in America.
Most wealth in America is in the hands of people with less than 2 years college education. For every year of college you diminish your chances of being a millionaire exponentially yet we still send our sons and daughters en mass to college so they can be "successful".
85% of all millionaires made their money in real estate.
My wife graduated top of the nation with honors and suma cum laude in pharmacy. She makes a solid $500-700 a day in a job that she hates. This isn't bad, in fact it has kept us afloat a couple of times. I am a college dropout (by necessity) and I am no Guru, I run another business,and do consulting. but I have made well over 100K a year off of real estate part time in the past, (100K isn't really that impressive, more is better but by all means a decent vehicle to wealth. I rarely get the cash on cash returns anywhere else! In my business I have to invest 500K to make 100K not really impressive (in fact often I am terrified!). That is why I am selling the business,moving to a larger market and jumping into it full time with both feet ( and a sugar momma to help get me going
Having money in the bank(any amount), income that exceeds your expenses (I live on 2000 a month budget generally), and the abilitiy to do the things you want to do however large or small is what I define as materially rich, Hey! I guess I am
[ Edited by Stockpro99 on Date 02/26/2004 ]
I barely make enough to support my family right now, however, before I am 30 years old I plan to have 2 Million dollars in the bank. I want to live off the interest for the rest of my life. That way I don't have to worry about my everyday bills. I figure once I have my initial 2 mill I will have the credit and the know how to do it all over again and the new money I make will be my play money. Sounds like a plan to me but right now I will continue to struggle with the everyday rat race.
Jim
HIBBY,
Hey, thanks for taking the time on Saturday to teach me by sharing all your experiences. Its fun to actually be around people that think BIG and are actually in the process of it.. I thought my 4plex for my first deal was good. But after pulling into your 24 unit apartments, and letting me know that this was your first deal, blew me away. Looking forward to coming back down to discuss "buisness" over lunch again. Thanks..
P.S. I like that book idea. hahaha Its all about Passive Income...
Excellent post hibby, WoW...
I too applaud Hibby's great post!
typeRguy,
I think that as you get more involved in REI you will meet more and more people who are at least "well off". You will meet people whose position you can target for yourself. There are several people from whom I have bought properties who are very comfortable and who have become friends, mentors and people with whom I can exchange ideas.
Most of these have been buy and hold people and have accomplished over a relatively long time.
There is one "race horse" I know that started only four years ago. He lives in a house worth over 3 million and has 30 rental properties and grosses over $70K per month and nets about $30K. I have met him only recently so I don't know the history of his success yet other than most of his stuff is in Dallas. I intend to spend some time with him soon!
Time invested following your passion...whatever that may be, regardless of the investing style, will usually complement an investor's chemistry...risk taker, conservative, compulsive deal maker...discover what style suits you and follow that track...long term success means cash flow to support lifestyle and growing NW 10% annually...most investors should endeavor to achieve $2-5M assets and assuming 60-80% leverage, 10-20% ROE, yield $40-160k net cash flow...do the math and time will compound to a good deal of net free cash flow...voila.
Looking back over my many clients who were rich, semi rich, show rich etc.
The ones that really made it in the field of Real Estate Investment mostly just put in the time. It was no big clever move, no fantastic analysis of the social/economic movements.
I always took the approach that you should know as much history and the interplays of social systems to look at and draw information to apply in present time. It worked for me.
But the really big winners. They just bought and held. They went high leverage. Sweated on the occasional downmarkets, but held on did not sell, did not remortgage every time interest rates dropped. Oh sure, they borrowed to buy something else.But with great care.
Their Motto. Only so much land and always more people!
When I got out of the service in 54 I started buying small houses, moved in fixed them up room by room and then sold and then did another one. I think I did about 20 in about three years. Oh I did other things but this was what a swinging bachelor did,Carpentry, Plumbing, Painting etc.
At the same time a friend of mine a stock broker was buying and holding. Some months he went negative, just dipped into his salary and paid the difference. His holdings to day way over $20 to 30 million. His game plan, simple. Could not think of anything else to invest in so he just bought the little houses. then a few apartment houses, then a little commercial along Santa Monica Blvd. So he built an office building and soon another one, then the storage buildings. A few baby malls he was rich.
His house today is prettier, his cat fatter then mine. He also got divorced. The usual Calif trip. We have coffee almost every morning. He is retired and bored. Likes to play verbal Chess, no fair using the board. Thats it. Says to me. "Can I go to work with you Lucius?" Doing what? Hold a ladder? Carry plans to the Planning Department?
My question what has all this wealth done for him? Educated his kids, gets a card from them on his birthday. His ex wife died a few years back ate a BonBon too fast and choked. He does drive a Ferrari, which spends most of the time in the shop thus he usualy arrives for coffee in a rental car.
I now have wealthy children, time they did something. I think I made them happy. What is the old saying, "So you think money won't buy happiness? Well stop by the liquor store and buy a fifth."
Looking back I think I take more pleasure in the events and movements that occured in time. The accumulation of wealth was always more of an aside then the main endeavor.
At age 81 I own nothing, just a newbie starting all over again. But the Containers are fun and I do enjoy and it keeps my mind off the dumb verbal Chess Matches with Charlie, which reminds me. Charlie, Check Mate.
Lucius
Lucius........ Fantastic thoughts!
I am 24 and haven't had a job in at least 6 months. I lost 3 jobs in the last two years (so much for security). There is no way I am going back to work for someone else! I always knew a job was bad news and that I wanted to be a business owner of some sort. I remember when I was a kid (before I knew what REI was) talking with my dad and him telling me how much people pay to rent a house. I thought "WOW that sounds good!" Interesting how certain events in your life lead up to bigger and better things. I am not rich yet. Infact I am dirt poor. I think of myself as the poorest millionaire in the world. I have a millionaire mind and a very tight budget. But that is this month. I know how to make money now and I am going to make a lot. I should easily be a "paper millionaire" this year. By next week I should have about a 1/4 of a million. I am scared to death! One of my partner's realtor told me a few months ago that I shouldn't do REI as a full time thing. And that I should think of it as "extra income". What a loser!! If I am only going to make "extra income" in Real Estate that I am not going to do it, or I am getting another realtor. I already took the plunge and I am not going back to some stinking job I hate. I do odd jobs when I need to but I am a Real Estate Investor!
Josh
[addsig]
Lucius.........
Capitan!!!
Great topic! Hibby..great post my man.... I have a looooong way to go, much to learn, and even more to put into action! I am not afraid to work or fail, for it will only make me stronger. I have not set my goals yet, but they are gonna be high...no doubt about it!!! I will get there!!
Good luck to all...
Brian in Atlanta
There is a big difference in having $1,000,000 in the bank and having billions in the bank. Today $1,000,000 seems like alot but it isn't. Sure that's all of our goals to be financially secure and have the title of millionaire. I like to think back to the good steward in the bible. The son who used his money and doubled it was the one in favor in the site of his father. Just because we have doesn't mean we should take for granted. We should always use what we have to the best of our ability and use it to help others.
Quote:
On 2004-02-26 01:37, jlbolls wrote:
There is a big difference in having $1,000,000 in the bank and having billions in the bank.
I would rather have it on paper, not in my bank. Waste of money if it is sittin in the bank. Just my opinion, you can do with it what ever you feel like...
$1,000,000.00 doesn't go as far in California or New York, as it does in Ohio or N Dakota. About 15 years ago, I was flat broke. Drove an old Nissan with a busted turn signal that would turn on the lights and drain the battery if I didn't adjust it just so. Also had a mid 70's GMC PU that we had to get towed from the Taco Bell drive thru window. (Truck was to loud to place the order so I turned it off and it wouldn't start). Rent was $175.00 per month and was tough to come up with. 15 years later I own a Used Car lot (sales 1.5M-2M year), Some SFR's, coupla duplexes, a triplex a MH, a MH park. Have a 4 br with 4ba 2car garage. Don't own a personal car, but supply my retired partner an 04 Lexus gx470, I have an 03 Eddie Bauer expedition, and an 02 Caddy in the drive. Oh yeah, I recently opened my own warranty company for the car lot and opened a rent to own portion for the car lot. Yep I am L/O cars now. I guess i am doing all right. Why am I telling you this? Dunno, stupidity perhaps. Just be careful out there folks, Success gives you a whole host of other problems. Running all this has cost me an awful lot of time. 2 weeks ago I finally hired a part timer to help w/ the paperwork. I've been working a lot of hours and it causes stress at home. I haven't been online near as much because of sheer lack of time. I have the plans and the properties in place that if I never buy another property, I will be very well of in 10 years. Very well off, income and asset wise. However it is a disease. I can't stop chasing the deal. It has become my obsession, my reason for being. I am trying to balance everything and still be a good father and husband. Our families all love us, but how can we, who have it all, ever complain? There is a lot of jealousy out there. Who can we go out with on a friday night? Some of our friends think that spending a couple hundred to go out is scandalous. (They can't afford to). Just be careful what you ask for in life, cause you might just get it.
Good Luck,
Shawn(OH)
Glad to hear of your success loanwizard..... God Bless you and your family...... In society's view my wife and i are well off making 120k a year but like you i get a rush from making deals...... i have a full time job and do real estate part time but eventually want to go full time..... Posts like yours give the rest of us newbies encouragement and advice to enjoy life......life is too short not to enjoy it and i don't mind spending a couple of hundred dollars to take my wife to a nice dinner........ Thanks for your posts
I would like to add that my goal is: To obtain $6K a month in CF from RE and pay down all my debt and expenses to $2K. That will leave me with $4K a month in CF. I think wealth should be measured in both, net assets and positive cash monthly income.
I did three deals last year. I bought a condo to rent out, did a sandwich lease option deal and a quick flip. All three deals were great, one did go bad but I still made money. I am now working on another deal that will give me $400 monthly CF.
While we are talking about goals, try to create short-term goals that will help to accomplish long-term goals. For example, one of my short-term goals is to obtain at least one rental and/or flip a year and that helps to accomplish my long-term goal listed above. I also make sure I spend time everyday learning about RE, either working with my lawyer, view prosperities, reading books or just talking to my partner who sits next to me.
It's also important to learn other investing areas like the stock market, small business and eventually secure investing like CDs or Bonds. My Real Estate profile went up 55% last year and my Stock Profile went up 63%. The combination of streets smarts, patients, positive attitude, consistency, Salesmanship and luck has allowed me to become successful in all types of investing.
Ken
I'm not nearly as far advanced in my real estate investing career as some of you but while we are sharing success stories I thought I'd share mine. Right now I only have 4 units but these 4 units have doubled my gross income in less than 2 years. So far I control over a quarter of a million dollars in assets. I know thats not much but I'm only 24 and like I said, bought my first place about 2 years ago. It was a duplex that I bought using fha financing. I think it only cost me about 3k out of my pocket. I actually got some of that back at closing and made the rest back in a few months from the rental income. I lived in that house 2 yrs and 1month and just bought another duplex using 100% financing. Of course I still had to pay closing costs but about a year ago, I took out a cash advance for 4k and deposited it in my savings. the old place cashflows about $400/month (not too bad for a duplex). The new place doesnt cash flow great but is in a much nicer area . Anyway, I've spent all my free time continuing my education. Anything I can get my hands on I read. Financing, real-estate, self help, etc... I greatly contribute my success to this. I just found and investor willing to invest 25k and have a contractor eagerly awaiting to partner up on rehabs.
Good luck and as lucious said. Put in your time and I think you'll do well.
Ryan
Hi everyone! You will have to excuse me but this my first post. I'm not rich or even have any real estate "yet". That will all change soon. First I want congradulate all the experienced and new investors on the site. Second I have a question ( How many of you veteran or new investors started out with a business plan or do you just jump head first?) . Or do just treat every new investment as a business plan. The reason I ask is because before I start investing i wanted to come with one. Or am I just delaying myself? JEB
Jerombarker,
I spent 13 months researching and learning about real estate before I made my first investment. I read 36 books and 3 audio systems. I also looked at about 100 properties in my target market before my first purchase. The reading and view properties gave me the courage and confidents to buy my first property.
Ken
You probably hear this all the time, but i think its a good rule of thumb. Just like the post before said, look at 100 properties, put in 10 offers, hopefully 3 accept, no more though or you are offering to much.... and take 1 out of the 3....
If I knew 20 years ago what I know today.... Well, I'd be rich. Now I'm about 12 years from retirement and only been in REI for about 2 1/2 years. I'd really like to retire in five years but as someone said above a million dollars isn't what it used to be. I hope that others who are in their 20's and 30's and want to do this really take it to heart and go out there and get it. 20 Years from now (when you're 45) you could be retiring and living the good life.
Hi:
Loanwizard:
Thank you so much for your post. Your honesty and openess really goes a long way in helping us beginners get the whole and real picture. A good question I ask myself is "once you are financially free then what will you do with your time?" I think it is important to fill your time with something meaningful to you or making more money will be the only thing that satisfies you. Sounds strange, but it can happen if you do not constantly take a pulse of where your life is leading and remember that it does not have a mind of its own. Easier said then done, I know and that's why I love learning from other seasoned investors.
Thanks everyone for sharing. I am an inspiration junkie---it is my therapy. So I appreciate all of the candid and motivational comments.
BTW: I am new to investing myself and don't have any real wealth to speak of yet, but with my ambition, desire and thirst for knowledge, I know I will not be denied.....
Take care
jerombarker,
I am a strong believer in having a plan and wrote an article on using a spreadsheet to generate a plan. That being said, I suspect that very few (including me) have written a plan before buying a first property. My plan runs out about 7 years and describes what I will do for each year (how many properties I will buy, where, what type--etc.). You might start on one after you have picked up a property or two.
typeRguy,
You are already rich. Let's put it in a better perspective:If you have food in the refrigerator, clothes on your back, a roof overhead and a place to sleep ...you are richer than 75% of this world
If you have money in the bank, in your wallet, and spare change in a dish some place ...you are among the top 8% of the world's wealthyBeing rich is relative. Count your blessings and have a great day.
Well just like you say, it's perspective. Personally I don't consider myself anywhere near wealthy or rich. But that's just me. Others may see me differently. But it just depends on who's definition it is. If I were to ever consider myself rich, I'd have over a million invested in different aspects of business to diversify my portfolio and I'd have another million readily available to invest/spend/do as I wish with. But that's just me. I know this topic is way to broad to really give a definate answer.... especially since it's such a sensitive subject. I know many are probably hesitant to say for various reasons. But then again, there are always those select few who are extremely wealthy and don't mind sharing their experiences and comments about. Even if you don't want to let us know with an exact lump sum, what about sharing some stories about how you were able to achieve financial freedom and became in your terms rich (how long did it take, how old are you, what sort of deals have you closed that helped you in the road to success)?
Anyone?
I am extreemly rich!
I'm healthy, my parents are still alive, have several friends that I can call any hour of the night, single, but a girlfriend that cares about me, and teamed up with some good folks on TCI.
However, this thread was about MONEY.
There is more to life than money. Money can be considered the measure of success by some. For those people the bar is set for each at a different level. No one can define it or compare it to one another. One person might want the Ferrarri and another be content with vehicle that just runs with cold A/C. Some people will consider themselves rich if they so much as can just smell the flowers others have to own ALL the flowers and charge per sniff.
Set your goals then achieve them one at a time. Personal and financial. If you do this then you will always be successful and rich.
WD[ Edited by WheelerDealer on Date 03/09/2004 ]
Quote:
On 2004-02-25 15:13, jwilson wrote:
There is money to be made in real estate, but it does take work. about 30% investors that I work with (I'm a realtor) have done really well with real estate over the past few years, 30% are struggling to get into real estate investing, and 30% want to invest, but are too afraid or too cheap (looking for the elusive great deal) to really make any money.
The one's that seem to be doing the best, are the ones that know the market, and buy reasonable deals...make a little, move on to the next deal.
A good example: one client had to beg/borrow and negotiate to get his first house. Made less than $5,000 on it..took the money, bought another one, made a little, moved on..... Now he is worth millions and in less than 5 years.
I would love to say that I am the one that made him rich...I just brought him reasonable deals.... He took a chance, a little money and made a lot..by knowing the market and believing. Good luck!
Why haven't you done the same?
Quote:
On 2004-02-25 15:13, jwilson wrote:
There is money to be made in real estate, but it does take work. about 30% investors that I work with (I'm a realtor) have done really well with real estate over the past few years, 30% are struggling to get into real estate investing, and 30% want to invest, but are too afraid or too cheap (looking for the elusive great deal) to really make any money.
The one's that seem to be doing the best, are the ones that know the market, and buy reasonable deals...make a little, move on to the next deal.
A good example: one client had to beg/borrow and negotiate to get his first house. Made less than $5,000 on it..took the money, bought another one, made a little, moved on..... Now he is worth millions and in less than 5 years.
I would love to say that I am the one that made him rich...I just brought him reasonable deals.... He took a chance, a little money and made a lot..by knowing the market and believing. Good luck!
Why haven't you done the same? Why are realtors seemingly so reluctant to invest? Is it the broker that gets in the way?
_________________
[ Edited by iammagi on Date 03/09/2004 ]
Quote:
On 2004-02-25 15:19, Emster wrote:
I am so in the red on my first real estate deal, its not even funny.
Almost makes me want to get out completely. Nothing but stress.
Please give details, Emster. We would like to know what to not do.
Quote:
On 2004-02-26 20:00, Sandbahr wrote:
If I knew 20 years ago what I know today.... Well, I'd be rich. Now I'm about 12 years from retirement and only been in REI for about 2 1/2 years. I'd really like to retire in five years but as someone said above a million dollars isn't what it used to be. I hope that others who are in their 20's and 30's and want to do this really take it to heart and go out there and get it. 20 Years from now (when you're 45) you could be retiring and living the good life.
I'm 27, and by going thru the 401K investment planning worksheets, I'll need $4-6M to retire and keep my current lifestyle. Inflation is a killer...
I'm 20 yrs old and I own 3 single families and 1 5-unit building. I'm on my way but not anywhere near the finish line. I started when I was 16 reading books. I have read most of the posts on this thread and there are a couple of things that I was thinking about when I got finished. I think two many people are caught up in the money. Money can't make you happy. Happiness can only come from serving others. When you help someone own their own home that wouldn't have been able to without your help, that is serving others. That is where the joy comes from. Mark 10:43-45 says, "...whoever wishes to become great among you must be your servant, and whoever wishes to be first among you must be a slave of all. For the Son of Man came not to be served but to serve, and to give his life a ransom for many." Also I think to many people are setting their goals to low. Some people seem satisfied to have a million in the bank. I think they should set their sites higher. I think as long as we realize where real wealth comes from we can all accomplish our goals. Ephesians 3:20 says, " Now to him who by the power at work within us is able to accomplish abundantly far more than all we can ask or imagine." I hope this post doesn't offend anyone. I felt compelled to post it so i did. Good Luck
Well, I'm new to this forum, but it's nice to hear everyone's point of view. I also like the Millionaire breakdown above, I haven't seen that before, but it is REALLY close to what I have set my goals to be.
I have been studying, learning, reading about real estate investing for 8 years, but Finally got off my butt 2 years ago (April 2002).
I currently have 5 properties worth 414K with 318K financed. That's approx. 96K equity.
I'm starting to do foreclosures which are incredible. For those of you not interested, good...I would hate competition. I made 35K this month on a foreclosure turnaround. You bet, I'll be doing a lot more of these, probably with a L/O exit strategy. I could easily do 1 deal a month like that in my area.
I wish you all luck in your investing. It CAN be done, and it WILL be if you set your mind to it. Read Napolean Hill's "Think and Grow Rich"
I just came back to this after reading the first few posts a while back. At first I felt puffed up and full of myself because I am on paper worth, well a lot more than I should be..I had to sacrifice a LOT to have what I now have and others gave a lot as well. I started like most by buying my personal home, a few years later I sold for bout 50k profit and bought another one but this one had a mother inlaw unit which I had to refurb and then started renting it out (about 4 years ago) This brought my payment down a lot and made things easier...well I was a tight a$$ and had to be to live in CA and raise a family on one income since my wife had comitted to be a full time mother.. (best choice we ever made by the way)
so we did nothing.....but kept looking for something to come our way...well it did.........my father was killed in a car Crash last year and he never having anything ended up thinking more of me and my family than he thought of himself. He didnt have any large insurance policie but he had a lot of small ones like 7-8 of them and they added up quick.....he also had a condo that was almost paid off but was a mess........we ended up with that as our next rental after a LOT of work........and used some money to buy a duplex with 20% down..............in December his Mother (my grandmother) died at 91 and we suddenly had a 3/2 sfr no mort.. we have just locked in another duplex and we will close next month so we will have 7 rental units 5 of which are 3/2 and 2 are 2/1 (one thing I did get from C Sheets was buy family homes for rentals so 3/1 is the best) but all of this came with much sacrifice and I would definitely trade it all back in a heart beat to be a paycheck to paycheck type..for my father to be here..but since I was given this opportunity I will continue to use it to benefit my family.........I work hard as well as my wife looking for properties that will cash flow right away, out here they dont come along too often.....we got lucky on this last purchase and have probably bought equity on a property that will be a turn key cash flow.........My job as a teacher (music) will probably be gone at the end of the year but I can say I almost dont care because I have done REI now and have the confidence to know I can do more.........and will
Best friends both worked and both made what I made so they had double but they were always broke, didnt know how to manage what they had spent foolishly and dreamed big but never acted....They bought the Carlton Sheets No money down stuff off of TV watched and read but never acted, so me being the tight wad that I am borrowed it and my wife and I studied it thoroughly, knowing the whole time that he was in a different world than us (remember I said we are from CA) and looked at the concepts and continued studying markets etc...well we didnt have any money or the nerve to ask someone to just hand me their house and trust me (simple version of the course <IMG SRC="images/forum/smilies/icon_lol.gif">
Get out take advantage of the cheap money available right now take some risk cover your a$$etts and enjoy every moment just keep it all in perspective because Money is not everything
We have made this a family busines and my teen age boys help with remodels and such, they are learning life lessons and we get to spend time together................and they are working on their inheritance.........which I have learned the hard way the value of......
<IMG SRC="images/forum/smilies/icon_smile.gif"> [ Edited by BMan on Date 03/09/2004 ]