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Old 01-12-2017, 10:11 AM
 
Location: SoCal
13,225 posts, read 6,320,879 times
Reputation: 9827

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Quote:
Originally Posted by foundapeanut View Post
I know a guy who NEVER made more than $50,000 per year and is worth around 20 million. All from real estate investments (bare land, west coast) bought in the 60's and 70's and being sold the last few years. He give 15% to charity for every sale he makes.

His investment guy told us.
I'm surprised nobody has posted here accusing you of making this up. I know they are all out, full of venom when I posted something similar.
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Old 01-12-2017, 10:32 AM
 
Location: Omaha, Nebraska
7,316 posts, read 4,154,596 times
Reputation: 18308
Real estate has always been a way for people of modest means to significantly increase their wealth, because it can be purchased using significant leverage. But leverage con only go so far; if someone barely has two pennies to rub together, they're simply in no position to take advantage of real estate's potential for appreciation and income generation.
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Old 01-12-2017, 10:48 AM
 
Location: Sylmar, a part of Los Angeles
3,982 posts, read 2,538,731 times
Reputation: 8508
I was a hourly employee all my life, machinist, and I always thought I was poor although I guess I did make fairly good money especially compared to non college educated today.
I was married briefly but have been single most of my life I suppose that helps, also I was a alcoholic for 20 years so that didn't help.
I have been a miser all my life, my house modest but in expensive southern Calif. I did wind up with 2 rental houses.
My financial advisor says I need to spend more, I do have quite a bit in investments.
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Old 01-12-2017, 10:56 AM
 
Location: USA
1,815 posts, read 2,242,977 times
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Compared to most of you, I would be considered low income as I've never made over $45K (unless I was working two full time jobs).


I have a paid off house (only took 13 years to pay off), no debt whatsoever, no pension, no company 401k or any other retirement help. I have always saved.


Once the money went into savings, it NEVER came out -- no matter what. Too many people use their savings/investment money like an ATM machine.


I am one of the rare people here that could totally live on my SS income alone and be very happy and still have plenty of funds for any emergency or "wild fling" I may want to indulge in.
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Old 01-12-2017, 11:07 AM
 
7,578 posts, read 2,225,450 times
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Quote:
Originally Posted by foundapeanut View Post
I know a guy who NEVER made more than $50,000 per year and is worth around 20 million. All from real estate investments (bare land, west coast) bought in the 60's and 70's and being sold the last few years. He give 15% to charity for every sale he makes.

His investment guy told us.
I believe that. $50,000 in 1962 is worth $285,000 in 2015, according to inflation calculators.

The average salary in the U.S. in 1962 was $4,291.40 according to Wikipedia.

So that guy made 10x the average salary. Of course he could afford to buy real estate.
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Old 01-12-2017, 11:16 AM
 
Location: Tennessee
23,579 posts, read 17,561,360 times
Reputation: 27650
Quote:
Originally Posted by Aredhel View Post
Real estate has always been a way for people of modest means to significantly increase their wealth, because it can be purchased using significant leverage. But leverage con only go so far; if someone barely has two pennies to rub together, they're simply in no position to take advantage of real estate's potential for appreciation and income generation.
Keep in mind that many areas, especially the most affluent areas, have seen basically "once ever" run-ups in values in raw percentage of terms. I can't see a house that sold for $50,000 in the Bay Area a generation ago but is worth $2,000,000 today appreciating another forty fold.
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Old 01-12-2017, 11:20 AM
 
Location: The New England part of Ohio
18,664 posts, read 23,241,522 times
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Quote:
Originally Posted by NewbieHere View Post
I think if you are poor all your life, the government will take care of you.

Sadly, that does not appear to be the direction in which we are headed.

As to the question, no. I do not know of anyone like that.

The reason we even hear about someone who knows someone of modest means who managed to save...is because it's an ANOMALY.
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Old 01-12-2017, 11:28 AM
 
1,945 posts, read 1,336,026 times
Reputation: 3327
Quote:
Originally Posted by newtovenice View Post
I believe that. $50,000 in 1962 is worth $285,000 in 2015, according to inflation calculators.

The average salary in the U.S. in 1962 was $4,291.40 according to Wikipedia.

So that guy made 10x the average salary. Of course he could afford to buy real estate.
The poster never said the guy made 50K in 1962, but that he never made more than 50k a year in his lifetime. It's quite possible that person made under 5K in 1962 but was very shrewd by buying property back in the 60's with his low income.

Those types of stories I've heard from time to time. Where I live there are some seniors that lucked out by seeing their rental properties worth millions where they paid only tens of thousands at the time.
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Old 01-12-2017, 11:39 AM
 
Location: SoCal
13,225 posts, read 6,320,879 times
Reputation: 9827
Quote:
Originally Posted by sheena12 View Post
Sadly, that does not appear to be the direction in which we are headed.

As to the question, no. I do not know of anyone like that.

The reason we even hear about someone who knows someone of modest means who managed to save...is because it's an ANOMALY.
Maybe if they don't live in California. But I know of one who came here with money, but blew it all and toward the end of his life, he was on welfare and housing. Sadly he died of a heart attack before he turned 60.
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Old 01-12-2017, 11:55 AM
 
7,578 posts, read 2,225,450 times
Reputation: 9129
Quote:
Originally Posted by Stockyman View Post
The poster never said the guy made 50K in 1962, but that he never made more than 50k a year in his lifetime. It's quite possible that person made under 5K in 1962 but was very shrewd by buying property back in the 60's with his low income.

Those types of stories I've heard from time to time. Where I live there are some seniors that lucked out by seeing their rental properties worth millions where they paid only tens of thousands at the time.
The post said he bought real estate in the '60s and '70s. And that he never made MORE than $50,000 his entire life. Which means, he WAS making $50,000 a year at some point.

The average salary in 1962 was around $4200. The average salary in 1979 was around $11,000.

I am guessing this guy who managed to reach almost 5x the avg salary at the end of his buying real estate period was well off. And that he was not an avg salary worker for his working life. No one jumps that high overnight.

OTHERWISE: poster would have said, I know a guy made the $4200-$11,000 a year, and purchased real estate. Which is not the case. This example shows someone who has money to invest, not an avg worker.

So, yes I do believe he had money to spend COMFORTABLY on real estate. Or there is that bolded part.
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