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My High School friend also had a goal of $1M by 27, which was more than 15 year ago. I think he missed it by a year or two, but he was extremely focused on wealth building and was extremely frugal...I am kind of middle of the road on these things. He's got lots of money and seems happy. I have less money and am happy, too.
So if you invest 40k a year for more than a decade when the market when it is up 150% since 01/01/09 and you invested in real estate that has recovered to the tune of 50%? Well doesn't seem shocking
3330 a month @ 8% for 10 year is 610k plus 200k in real estate gains it's his ability to save a high portion of income and the discipline to keep plugging away
So if you invest 40k a year for more than a decade when the market when it is up 150% since 01/01/09 and you invested in real estate that has recovered to the tune of 50%? Well doesn't seem shocking
3330 a month @ 8% for 10 year is 610k plus 200k in real estate gains it's his ability to save a high portion of income and the discipline to keep plugging away
You miss the point. Most people never figure that out. And most of the ones who do are decades older than that kid, who made the epiphany at 16 years of age. He is credited.
You miss the point. Most people never figure that out. And most of the ones who do are decades older than that kid, who made the epiphany at 16 years of age. He is credited.
He is take a huge risk with the Real Estate, i would advise most folks don't take the same risk, he is able to maximized his wealth because of his luck, what if the Real Estate went down in value? He will get killed because of the huge leverage.
Quote:
In 2009, Ivanov put down $80,000 on a $400,000 condominium in San Diego, which he rents out for a $36,000 a year (he nets about $12,000 a year after making his mortgage payments). Today he estimates the property’s value is well over $600,000.
Basically he earned $200,000 from his $80,000 original investment(down payment). That's about 250% return in 4-5 years. Historically speaking, Real Estate appreciated 3%-4% year. So we shouldn't consider his bubble price at this time since the Rates are artificially low unless he sells it and profit the difference.
That's the exact reason why Dave Ramsey went bankrupted in his 20's.
He is take a huge risk with the Real Estate, i would advise most folks don't take the same risk, he is able to maximized his wealth because of his luck, what if the Real Estate went down in value? He will get killed because of the huge leverage.
Basically he earned $200,000 from his $80,000 original investment(down payment). That's about 250% return in 4-5 years. Historically speaking, Real Estate appreciated 3%-4% year. So we shouldn't consider his bubble price at this time since the Rates are artificially low unless he sells it and profit the difference.
That's the exact reason why Dave Ramsey went bankrupted in his 20's.
You may be right. It's hard to gauge from the article what % of his net worth is real-estate based.
This guy really took his risks in real estate, and luckily for him they paid off. I plan to do something similar through index funds, but without leverage risk, meaning I'll be financially independent in my early 30's.
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