2014 Investments Thread (housing, franchises, startups, etc)

@xbiker47 my day trading account will be 10-15k at start then I get 6x intraday margin. I also have an intermediate timeframe "swing" trading account which has a similar balance and then a long term investment account. I know a trader that took his 2k account to 100k in about a year and a half. My goal maybe lofty and I may not get there in 3 years but "direction is more important that speed"

glad to hear some of you getting that investment property money :smokin
 
I worked in collections. The 3 owners were collectors that pooled their resources together to purchase old debt for pennies on the dollar, so chumps like me could scare people into making payments for accounts that were no longer on their credit report. You would need a signicant amount of start up money because the debt portfolios would cost over 100k (but they might be like 10 mil on paper).
 
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What cities are you guys looking into for rental property? 

Anyone out there w/ success in this area already? 
 
I'm looking into starting a few ventures. Funds have been my Achilles heel though. I know I can do it w/ funding, even just the registration of the business, etc, just gotta get the money together. Making $26k/yr aint gettin me that money though :smh:
 
i remember the last investment thread on here. one of the first comments was "bit coins" when they were at $29 a pop :lol: :smh:
 
Guys I have to say this and I know a large number of people who look for security and long term will not agree but;

You can not make money putting funds in 401ks and mutual funds and all those other scams that banks tell you to do. Your barely beating inflation, and at that point just saving a little bit of money and making the banks millions.

Put your capital towards better things.

There is still a lot of money to be made in retail.

I'm going on to my second year of opening up a spirit Halloween store starting august 15th- nov 3rd

Easy franchises like calendar club which consign you location in malls and rent and inventory offer great return on a 3 month (Christmas season, nov-jan)?venture.

I have worked these positions past three years, and past 2 years actually owned them. To give you facts and numbers.

Halloween store, also all consignment, we average about 800k-1 mill per season net sales. As an operator/owner you take home 40%, which you use to pay employees managers, advertising costs, signage etc. so your looking at 250k in three months. There is a long list to be on and you need 80k start up to be considered. Spirit Halloween.

Calendar club, also all consignment including rent and location, my store last year made 167k selling games and calendars from nov 15-jan16. Your take home rate is 15%. Calendar club is sort of a one man job, so standing 12 hr days for 3 months in a mall seems hectic, but you save employee costs.
 
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Guys I have to say this and I know a large number of people who look for security and long term will not agree but;

You can not make money putting funds in 401ks and mutual funds and all those other scams that banks tell you to do. Your barely beating inflation, and at that point just saving a little bit of money and making the banks millions.

Put your capital towards better things.

There is still a lot of money to be made in retail.

I'm going on to my second year of opening up a spirit Halloween store starting august 15th.

Easy franchises like calendar club which consign you location in malls and rent and inventory offer great return on a 3 month venture.


Word of advice: Don't be ignorant when it comes to money. Open the mind and know the options. Savings accounts is what isn't beating inflation. The stock market, historically, is...Go back to the drawing board.
 
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Concur. Stock market is not for you noobs. The amount of misinformation i have seen in this thread is staggering.

Ill give u a stock tip. Invest in tesla. Put more money into it as fast as you can for the next 6 months. Forget about it. Check back in 5 years. Smile cuz you will feel like u hit the lottery.
 
I'm not sure if you guys are agreeing with me or not, but ya I said saving accounts hardly make you money and I don't even consider them investments or investing. Stock market for sure there is a lot of money to be made, lots of money to loose too, if you are misinformed.

At the end of the day it your hard earned capital, do no blow it. Were all here to share.

Btw if you don't have capital, accumulate that first.
 
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I have to agree I think buying a new car right out of college is so dumb. I think people do it to show that they are doing good in life.

Read Rich Dad Poor Dad if you want to get into investing. Changed my entire mentallity on how to invest, teaches you about cash flow and the difference between an asset and a liability. A house is not an asset, neither is a car.
Not sure if SRS. Just cause you read it in his book doesn't make it FACT.

Ask any wealthy person how they amassed wealth and 9 out of 10 will tell you real estate.

I have over 400k in equity in 1 property and is set to go up another 12% at the end of the year. I owe 130k, If I sell at peak, I'm selling at 650-700k. I can roll that into a beat up house on the best street for 150-200k and have 300k in cash ( a lil less after uncle sam takes his cut) that I can let sit and invest or flip properties with.

I understand why some say it's not an asset but it's very subjective. If you know what you're doing, having real estate is probably 50-60% of retiring with enough money to actually retire with.
 
Homes are definitely assets.

How are you certain that your value is going to rise 12% in under 6 months though?
 
Homes are definitely assets.

How are you certain that your value is going to rise 12% in under 6 months though?
zestimate, redfin, comps.

House across from me just sold for 600k. All our houses hit 280-300k when the market crashed in 08-09. It's been going up ever since. When I bought the house, it appraised for 850k (back when the banks were giving out free money, lol).

Not to turn it into race issue, but the buyer was white. The last 4 buyers on the block have been white. Gentrification is part of the rise, DTLA is expanding, USC is expanding, everyone who moved to the I.E., Valley, Lancaster, etc, want back into L.A., and I've benefited. I'm the youngest and only 1 of 3 minorities that own property on the block...they can gentrify all they want. I'll sell out.
 
 
Homes are definitely assets.

How are you certain that your value is going to rise 12% in under 6 months though?
zestimate, redfin, comps.

House across from me just sold for 600k. All our houses hit 280-300k when the market crashed in 08-09. It's been going up ever since. When I bought the house, it appraised for 850k (back when the banks were giving out free money, lol).

Not to turn it into race issue, but the buyer was white. The last 4 buyers on the block have been white. Gentrification is part of the rise, DTLA is expanding, USC is expanding, everyone who moved to the I.E., Valley, Lancaster, etc, want back into L.A., and I've benefited. I'm the youngest and only 1 of 3 minorities that own property on the block...they can gentrify all they want. I'll sell out.
Just curious bro what city is your property in?

Gentrification is ongoing in various cities throughout LA. Very interesting dichotomy in these cities where you have million dollar or close to million dollar renovated homes right next to some rundown looking houses. Going to open houses last year in Silverlake, Echo Park, and Mount Washington it was truly interesting driving through the neighborhoods and seeing the contrast from house to house, block to block.
 
 
Not sure if SRS. Just cause you read it in his book doesn't make it FACT.

Ask any wealthy person how they amassed wealth and 9 out of 10 will tell you real estate.

I have over 400k in equity in 1 property and is set to go up another 12% at the end of the year. I owe 130k, If I sell at peak, I'm selling at 650-700k. I can roll that into a beat up house on the best street for 150-200k and have 300k in cash ( a lil less after uncle sam takes his cut) that I can let sit and invest or flip properties with.

I understand why some say it's not an asset but it's very subjective. If you know what you're doing, having real estate is probably 50-60% of retiring with enough money to actually retire with.
I should have been more specific, I was talking about your home specifically not a rental property, fixer upper etc. Your home is not an asset unless you are renting out a room, or have an rental space in the basement. Of course if you are buying a house for the sole purpose of flipping it it is an asset, but just to live in nah I don't consider it an asset. I do believe real estate is one of the best investments to get into, but I will never consider the home I live in to be an asset. Just because it is worth X amount today doesn't mean it will be worth that in the future (housing market crash). 

I want to get into real estate when I turn 25, so I have a little under 4 years to prepare. How did you all get into real estate, and what do you all think is the best way to make money? (rental properties, fixer uppers,etc). Also, how did you get the funds to start investing in real estate?
 
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Guy talks about misinformation then acts like a great bubble stock like TSLA will be a sure homerun. Could it double or more in 5 years sure, but you don't just put money in a company as volatile as that one and then forget about it for 5 years.
 
Earnings 7/31 too so who knows which way it goes.

http://finviz.com/quote.ashx?t=tsla

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I'm just not a fan of thinking anything that's speculative and fundamentally flawed is a home run hold and forget. Personally, I just don't have trust in the overall market to think that things will continue running perfectly like they have the past few years. I'd grab a couple of TSLA leaps if I was a believer of the stock, but I'm not going to accumulate the stock without a stop in mind.
 
 
Just curious bro what city is your property in?

Gentrification is ongoing in various cities throughout LA. Very interesting dichotomy in these cities where you have million dollar or close to million dollar renovated homes right next to some rundown looking houses. Going to open houses last year in Silverlake, Echo Park, and Mount Washington it was truly interesting driving through the neighborhoods and seeing the contrast from house to house, block to block.
Historical West Adams. 
 
To touch on what wizards23 said. Having a trading plan is essential. All I've been doing is using the trading simulator and fine tuning my plan. If you don't have rules to follow while you trade your going to end up using emotions to trade which in the long run usually spells disaster.

With trading you want to maximize profits while minimizing your losses. One thing your def going to have is losses.
 
Your home is not an asset unless you are renting out a room, or have an rental space in the basement. Of course if you are buying a house for the sole purpose of flipping it it is an asset, but just to live in nah I don't consider it an asset. I do believe real estate is one of the best investments to get into, but I will never consider the home I live in to be an asset. Just because it is worth X amount today doesn't mean it will be worth that in the future (housing market crash). 

I want to get into real estate when I turn 25, so I have a little under 4 years to prepare. How did you all get into real estate, and what do you all think is the best way to make money? (rental properties, fixer uppers,etc). Also, how did you get the funds to start investing in real estate?

That's not true. owner occupied home's are assets, just like a brand new car you drive daily (depreciating asset). rental properties are just income producing properties, they produce a yearly return on investment, just like a CD, stock shares, bonds etc.. If his property is appreciating that much then of course he's not exactly benefiting until he liquidates the property and profits on the rise in equity.

All investments are subject to volatility, but there is not going to be a housing crash anytime soon. Credit is very tight and most importantly the people buying homes the past few years are legit financially, all the money is real that's being used to buy.

There's several ways to get into real estate, property management(rentals), broker/agent license (buying & selling), mortgage brokers (financial). investment funds are a form of private equity. I work for an investment firm, they buy mostly distressed property (short sales, foreclosures, REO's etc.) and then rehab the property and sell it for an appreciated value. likewise it's extremely capital intensive. another thing people don't understand is that rehabbing is very expensive depending on the sq. footage & work to be done, it's a lot cheaper if you can do the work yourself but few can, so outsourcing the work is going to cost more.

you might want to research wholesale real estate, if you're interested in rehabbing.
 
Water could potentially become a commodity in the future so it's worth familiarizing oneself with water companies/stocks etc. in case it happens.
 
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