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No, no they aren't. Renting is a money pit. Buy a duplex and live for free. That's just one example of how they aren't.
NT: Official Personal Finances Thread
No, no they aren't. Renting is a money pit. Buy a duplex and live for free. That's just one example of how they aren't.
fontaine
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While I applaud you for your business habits and having a plan...
Interest covers a broad spectrum so don't be too quick to bad mouth it.
Interest isn't just what the bank charges you on debt, or what credit cards charge you for a LINE of credit, or what Sallie Mae charges you for school loans
It's essentially what YOU charge investors who work on behalf of you...
So, with your 300k sitting under a pillow... it loses value BECAUSE inflation...
But if you were to have it on something that generates a certain return rate, you will be a fan of interest then, my friend...
Also, millineal is not TOTALLY off when he is talking about a home being a money pit.
The thing most people don't get is a home is a consumption good that's very illiquid depending on the market, location, the buyer's preference, etc...
If you have 300k in a REIT vs 300k in a home... You're REIT investment is more liquid and less likely to be hit hard by a dip in the market because it's more diversified...
300k across multiple homes, apartments, buildings, etc vs 300k in 1 home... that's diversification...
Of course, you may not be able to cash in as strong if you have a diversified 300k as opposed to 300k home as the price shoots up...
Money pit is strong because it does serve utility that can't be quite measured in excel.
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You are basing homeownership cost off of a kitchen renovation project one of the most expensive renovation jobs outside of bathrooms. You do know that you can buy a house with a good kitchen right?
You don't have to be a RE mogul to own investment properties
. Renting is a money pit you can't control rent prices and they will continue to rise over the next decade I can't wait to rent to people like that think owning a home is a money pit. I will be residing in my home for free thanks to you all
It's funny because right now it is actually cheaper to buy a house than rent.
@letsgetit22 No car payment, rent free until November (mortgage payments start), minimal bills.
I set an amount of money I want to save and I base my spending habits off of my savings rate.
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Eh, yes and no....I see what you are saying but you have to buy the duplex which is what? 300k+?
If you rent it minimizes your overhead while enabling you to invest in things with much greater return than 0$
Owning a home is not what it's built up to be, anything the government wants you to do you should approach with caution.
You mention live for free, but even if you own a home you best believe the government getting some action.....you'll be paying property taxes in the 4k-8k range and that is on average...It can get relatively higher than that in other states....Add in insurance and maintanence and the word free goes out the door.
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More than one thousand ways to skin a cat. I know a dude making 50k a month off renting houses. I hate the government as much as the next man. But after the taxes you're still killing it with some nice rentals under your belt.
fontaine
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50 k profit or revenue?
And that's wassup. He must have a legit management company going
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Profit. He has like 35 nice houses. Does it all through a management company.
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fyi...
i live in Toronto, one of the hottest markets in north america...
to get into a 3-4 bedroom house you are looking at 600-800k...depending on location and condition....
prices are over inflated by 25% most expert say (artificially due to low interest rates as a result of a ****** economy)....so i think i'll pass on a house as an 'investment'....
you can't run away from all the crap in this world...i.e. paper currency...but i rather have that than a house on which i have to pay out of my pocket every year without any return...
i'm not looking to leave my kids with a house and fancy cars...i'll take care of their life and their education and give them some start up money....the rest is up to them...
so that 300k available to me...plus monthly income coming in will have me comfortable....plus at ease...
that 300k is just to live and enjoy my life...the investments in theory would have already been made...not looking to make more investments unless its something concrete after a certain age...
i live in Toronto, one of the hottest markets in north america...
to get into a 3-4 bedroom house you are looking at 600-800k...depending on location and condition....
prices are over inflated by 25% most expert say (artificially due to low interest rates as a result of a ****** economy)....so i think i'll pass on a house as an 'investment'....
you can't run away from all the crap in this world...i.e. paper currency...but i rather have that than a house on which i have to pay out of my pocket every year without any return...
i'm not looking to leave my kids with a house and fancy cars...i'll take care of their life and their education and give them some start up money....the rest is up to them...
so that 300k available to me...plus monthly income coming in will have me comfortable....plus at ease...
that 300k is just to live and enjoy my life...the investments in theory would have already been made...not looking to make more investments unless its something concrete after a certain age...
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well of course that makes sense, that's not a duplex situation, nor a common one.
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What I'm saying is he started with one house. Anyone can do it. Just be smart. He didn't just cop 35 cribs one day.
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I'm trying to make money with my money, b. Invest,stock, whatever. I Need this paper. Someone school me 
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@copped - you seem like you got good business sense and that hustlers mentality which is hard to teach. looks like youre on the right track. i know you mentioned that interest is against your faith and i can appreciate someone sticking to their guns for their faith, but objectively speaking interest isnt a bad thing. you never want to put your money up. put other peoples money up. its about mitigating risk. if you have to pay a few points to use someone elses money, so be it. as long as you can still clear a profit, the points you pay are worth more than worth it.
the path to wealth is not stacking cash. the path to wealth is leveraging debt.
the path to wealth is not stacking cash. the path to wealth is leveraging debt.
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You need mentors. I hang with dudes that are doing it and teaching me. I'd always be asking my old land lords how they do it. They are filthy too. That stuff starts to rub off on your and before you know it they are asking you to work with them.I'm trying to make money with my money, b. Invest,stock, whatever. I Need this paper. Someone school me
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Uhhhhh
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Financial advice snooty wild would give.
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$tacy
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Between 3-3500 mth. Save maybe 800 smh. Between food, gas and kicks that's over a grand then rent and bills.
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Dude that's life. 800 per month savings is good off that. All the people talking big plays are doing just that. Talking.
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if this was referring to the post i made, i dont understand the reference. care to elaborate?
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I was referring to dude saying you're gonna be calling investors and banks daddy.
He's just a rapper.
He's just a rapper.
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I was referring to dude saying you're gonna be calling investors and banks daddy.
He's just a rapper.
hahahaha got it.
sorry, im old and lame. i dont know bout that kinda stuff.
i dont pretend to be anything im not. im a salary man with dreams of wealth but nothing concrete thats headed me on that path. i've worked in lending for 10 years now which has given me a sliver of insight into how the world of finance works. NO ONE plays with straight cash. My company has a line of credit where we borrow at X and lend at 10X. The bank we borrow from (a major US financial institution who runs commercials that ask "whats in your wallet") isnt even lending their own money to us. They probably borrow from a bigger bank at Y and lend to us at 2Y. That bigger bank probably borrows from the federal reserve.
According to our boy @millenial, dudes like Jamie Dimon probably call Janet Yellen "daddy" errrrrr "momma"
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I wont say how much I make. Its more than the american median salary. Partially thanks to student loans I dont save anything. Such a bad habit I need to get out of.
I keep saying "when I achieve this salary, when I achieve that salary" then go back on word
I keep saying "when I achieve this salary, when I achieve that salary" then go back on word
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Dame Dash did it with his own cash, So did Q Worldstar and Ben Baller and many other self made entrepreneurs. In the other thread the successful people on this board put up their own capital they even said it
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child...
i dont even know why i bother debating this with you. we arent talkin bout dudes like ben baller or dame dash. we talkin bout dudes like ray dalio or george soros, who by your definition all call someone else "daddy" cause they've leveraged debt to build their wealth.
read a book. seriously.
