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I didn't mean to make you desperate. Though its good to see you back to changing your arguments all the time. Is that your way of not being wrong all the time?
Takes lots of money and time. Had a relative who was a land speculator. Saw first hand how someone who does not know what they are doing fails. He bought way too early and not enough. You have to buy just before scarcity appears. It also helps to have inside information like someone moving in or kicking something back to a politician who will tell you where the water is going or the highway. Takes a while to put together a Mongol hoard too.
Though I must apologize because I just assume we are trying to maximize the human condition and promote prosperity. I could be way off on that being a majority opinion.
Though I am forced like everyone else to defend myself from absurd laws that move wealth to the top without working. So I also have rolled wealth into assets and away from labor and capital which are taxed. Most corporations have realized this as well which is why GE, GM, Walmart etc have become FIRE sector.
Doesn't take much of either. You and four guys put up $4,000 each. Take the $20,000 and find a $100,000 single-family home. Finance $80,000 over 15 years. Your cashflow should be break-even at the average rent, including taxes and some upkeep. In 15 years, sell it for $150,000 at 3% increase per year. Divide the profits. $150/5 = $30,000 each. You invested $4,000, and recoup $26,000 profit over 15 years. Do the math on that return. Every year buy one more property. Start when you are 30, and do this for 25 years.
The entire time you are doing this, work a full-time job, treating the real estate as a long-term investment. Don't touch it. Have patience. Discipline.
At age 55, count your loot, drink Peet's Coffee, watch the waves at Half Moon Bay, and drive around NorCal in your Winnebago with the wife.
What you describe is pretty much what I did on my own. Bought my first home in 1977 for $24k, live in her as I fixed her up and sold it two years later for $38.5k. Never looked back, after 15 years and three more flips I was doing cash transactions. Haven't borrowed in nearly 20 years and retired in my early 50's. I now help others getting their start.
Living in the project home allowed me to use the tax laws to deduct any carrying costs. I worked as a carpenter/contractor so any down time from that was devoted to increasing equity. Worked 7 days a week for many years.
Quote:
Originally Posted by TrapperJohn
Doesn't take much of either. You and four guys put up $4,000 each. Take the $20,000 and find a $100,000 single-family home. Finance $80,000 over 15 years. Your cashflow should be break-even at the average rent, including taxes and some upkeep. In 15 years, sell it for $150,000 at 3% increase per year. Divide the profits. $150/5 = $30,000 each. You invested $4,000, and recoup $26,000 profit over 15 years. Do the math on that return. Every year buy one more property. Start when you are 30, and do this for 25 years.
The entire time you are doing this, work a full-time job, treating the real estate as a long-term investment. Don't touch it. Have patience. Discipline.
At age 55, count your loot, drink Peet's Coffee, watch the waves at Half Moon Bay, and drive around NorCal in your Winnebago with the wife.
So simple a caveman can do it... as long as that caveman lived during a real estate bubble. What about now? What if you don't have four friends that are willing to hang together over the life of the investment? What if you are black? What bank is going to give anything except a sub-prime mortgage (if that) to five unrelated African Americans? Or a single one? Every time someone tries to fly the contrarian argument they use an anecdote about them. An individual success story that cannot be repeated by the average person. Tiger Wood's, Steve Jobs, Bill Gates, hard working _______ who bought low and sold high in nineteen freaking seventy-seven. In 1977 my aunt bought her first house for $50K in Cambria Heights (Queens), New York. She sold it last year for $600K. That's her first house. She still owns the second one but she no longer lives in NYC. She spent well over $150K putting her daughter through college but my cousin will not likely be able to realize the kind of real estate success that her mother has. Pathetic... we sit here scratching each others eyes out over why we are not successful and how its our own fault because successes exist. And we should leave them to it. I agree. I don't want to take from the wealthy to benefit myself. I do not, however, want to take care of the wealthy. I worked for a company where the women would throw showers for each other when they got pregnant. The brass never came to these events or bought gifts. When any of the brass got in the family way all the low paid administrative staff pooled money or individually bought gifts for the superior and paid for the cost of throwing a shower. Its a small thing but it illustrates the kind of entitlement the rich have. The middle class run homeless shelters and soup kitchens and other charities to benefit the poor. And they pay 30% Federal Taxes on everything they make. The wealthy pay taxes only on the first 250K of income and nothing on wealth and get richer every year. They give to charity but their investment in the poor ends there. They wouldn't give at all except that the gifts are tax deductible. Some wealthy even manage to show a net loss at tax time and are paid subsidies etc. to help them out. Don't tell me that none of you people don't have adult children that have returned home. If that isn't proof that the whole system is breaking down then I don't know what more to tell you.
Tiger Woods' ex wife recently purchased a $12 million home in Florida and demolished the 17,000 square foot mansion to the ground so she can build an every grander home on the same spot.
My question is why aren't we taxing these people when it appears that they have so much money to burn in idiotic fashions? Are we supposed to feel sorry for the likes of Paris Hilton, this Elin gal and the Kardashians?
There are many men who will benefit from the demolition/construction of her new home.
Tiger Woods' ex wife recently purchased a $12 million home in Florida and demolished the 17,000 square foot mansion to the ground so she can build an every grander home on the same spot.
My question is why aren't we taxing these people when it appears that they have so much money to burn in idiotic fashions? Are we supposed to feel sorry for the likes of Paris Hilton, this Elin gal and the Kardashians?
There's no shame in being a have-not, but there's great shame in being sick with envy. It's her money. She can as she damned well pleases with it.
How many times have I listened to a wingnut go off on the lazy bum sitting at their computer screwing around, producing nothing. You know those lowlifes that consume and take value out of the economy while putting zero back.
While they are probably talking about the welfare class and our barely working poor that description also fits the wealthy leisure class and day traders that make their income exploiting the system stacked in their favor by their buddies.
I didn't mean to make you desperate. Though its good to see you back to changing your arguments all the time. Is that your way of not being wrong all the time?
Another poster who doesnt know the difference between wealth, and income. Its shocking to think many of you guys have claimed to be old enough to be posting here but dont know the difference.
Well golly gee wizz there pqluless thats funny that ole Eddie Lampert was selling the real estate. Odd how the Vornado Realty Trust bought into it.
I don't know how you support your habit, but you are on the hallucination train. You say it and viola, it isn't true, again.
By Bloomberg News | March 22, 2005
Vornado Realty Trust, the real estate company that is buying Toys "R"' Us Inc. with two buyout firms, will support the acquisition of Sears Roebuck & Co. by Kmart Holding Corp. Vornado will vote 1,176,600 Sears shares in favor of the $11 billion takeover, Vornado said Monday. The shareholders of Sears and Kmart will vote on the deal Wednesday in Hoffman Estates. The combination of Sears and Troy, Mich.-based discounter Kmart will create the third-largest U.S. retailer, to be called Sears Holdings Corp.
As the company closes stores, it expects to generate $140 million to $170 million of cash as inventory is sold and the company leases or sells its commercial properties.
And more
There are tax advantages to NOT OWNING the property such as writing off the lease expenditures as a business expense.
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