Beginners guide to becoming WEALTHY

[CadillacCTS]

I guess the people who were in this thread are too busy making money on RE, that they forget about this thread

On serouis note, I think this thread has potentialy life changing information and it would be a shame to let it die...

 

[CrzyBadBoyDJ]

To the original poster, thank you so much for the recommendation on the Building Wealth book.

 

[CadillacCTS]

I just turned 18, so I think I'm gonna get my feet wet in real estate

 

[proScribe]

resurection

I am really interested in Real Estate as either a profession or investment opportunity. I am in HS right now, I took a real estate class(for the first semester only) which basically went over how to get a license and some of the paperwork you get to have fun with =]. I just wished i paid more attention to my grades/schoolwork, because i felt like that class was a real advantage as our high school is the only one in the state that provides it.

oh well. There are a thousand ways to learn. I would like to know if any investors/realtors have anything else to say on money i would much like to read it. If not just treat this as a bump I couldnt let this information sit by idlely.

Pook had a post that suggested we have a financial board. After all, it is very much self-improvement. I thought this was a great idea and his post was the reason that i read all 12(!) pages of this one. The only problem that was seen was having enough people that knew anything about finance to post on it, which is truely a shame, because i could use an information source such as this.

I have to say I learned quite a bit from this thread. Actually, this site in general has completely revamped my life, and after reading this it might have helped even more than I had first imagined. I am very interested in exploring more about finance. Under that mindset, is why i decided to download and read as much as possible about all this. I just got rich dad poor dad, and someother ebooks which i think might help.

A question I have for anyone in the know, is what should I focus on now as a high school student? In rich dad poor dad, robert talks about aquiring more assets than liabilities, in just doing that you will satisfy rule no. 1 ("Rich people acquire assets. The poor and middle class acquire liabilities, but they think they are assets"). So could anyone give me a list maybe of a bunch of income generating assets? Also, Should I work on building credit in the hopes of later being able to draw large amounts of money from different banks, in order to purchase my assets? Also, is it even possible to build credit until I am 18(ie: will it even count)?

I hope someone finds the rest of this useful information helpful in the real world.
Thanks.

 

[TinyFzzyKiwi]

is there any classes in high school that would help you prepare for something like this?

 

[Baruch]

unfortuntely high school nor college teach you anything about the real world.

working with someone as an intern and getting experience would give you that.

 

[TinyFzzyKiwi]

ok thx man. I'm still a sophmore, but this is the sorta thing I'd like to do. I'm taking a class about international business next year, not sure if it will help or not, hopefully it will. But so far, I keep planning on going to college, I'm just not sure if it's worth the money if it won't help get me ready for what I plan on doing.

 

[MetalFortress]

Your first purchase should be Rich Dad, Poor Dad, by Robert Kiyosaki. This will teach you the fundamental differences between the minset of the rich versus the mindset of the poor and middle class.

Agreed in full. I just finished it, and at age 20, my financial mind was a blank slate ready to be written on. At this rate, the way of the rich is the only way I will even understand within a few years (I am reading The Richest Man In Babylon and I have 11 more financial/investing/wealth/etc books on my reading list after that)

 

[Centaurion]

^^

instead of reading all those books, why dont you get your ass off the couch and do something about it!? it doesnt matter how many books you have read, what matters is what you do in the real life. and i've got a newsflash for you, real aint what it is portrayed in those books.

 

[Joe The Homophobe]

I did some internet reading on the 'no money down' system and from what I read this is supposedly illegal in many places. Not only that but people that sell these tapes and videos have been arrested, have had trouble with the law as well as money problems. These get rich authors are shady characters most of them.

before you spend your money on get rich tapes and videos do some research. This stuff rarely works, many have gone to jail trying, the authors themselves are shady characters, while only a few end up getting rich because of it.

like the old saying goes, "if there was a quick way to get rich everyone would be doing it"

 

[proScribe]

i hear you knocking

good point joe, but in this day and age, everything has to be taken with salt, it sucks really.

I dont know about the no down payment thing as being illegal, i really doubt that. As it is the sellers choice, you are not forcing him to sign his name, its more probable that he would take an offer that gave him the downpayment... wherever you read that it would be good to have like a hyperlink just so i can check it out, itd be nice to know before i become a criminal =].

and yes i do agree that buying the 200 dollar board game that robert kiyosaki sells, is a waste of money.

thats why i havent bought any of his stuff(besides rd,pd) I either read it at the barnes and nobles for free with a nice iced caffe mocha, OR find and read it in an ebook format.

After all... if you dont do anything with the books and stuff you buy... isnt that a liabillity? i see that as kind of ironic.

I am more concerned in information about how stuff works like Roth IRA's and 401K funds (which both, before this thread, i had no idea what they were, proof in itself that this type of information is useful) and the way that taxes work just anything that would be useful. The thing I love about this board is that people at very specialized, which helps out everyone. If i needed to know about cars, I am sure i could post about it and a cool DJ could break it down for me. Thats what I love about this thread its good stuff everyone should know.

at any rate, i finished reading rich dad poor dad and while i learned alot its nothing i could go get rich off of. The best teacher is expierience.

That being said, the book did teach me a lot about how business works, I made a connection the other day about making a company that buys and sells your stuff for you on ebay. Like you tell me what you want bidded on, and I'll bid on it for you at the lowest price posible. same with the selling part, I would take pictures and stuff of whatever it is u want gone, and make sure everyone bid on it. something like that... although, i dont really see where a profit would come in lol. as people that shop on ebay are trying to save money anyways.

oh well, again if anyone wants to share information on money do it here, i will try and rely anything i read back to you, ive just been real caught up in homework lately. but maybe maybe we can get educated about money. Good to know, rich or poor.

food for thought,
pro

 

[STR8UP]

Wow, this thread is still going! Glad to see that there is still interest in the subject.

Haven't been on this board in quite a while but I thought I would pop in and see what's been going on. Looks like there is still plenty of buzz about "no money down" techniques and such.

Just to confirm with everyone (whether you believe me or not), YES, it is possible to buy real estate with no money down. This is especially important when you have NO MONEY, but even as their bank acounts begin to grow the SMART investors put as little of their own money into a project as possible.

Lets say you inherited $100,000 from your dead uncle. In many areas you could use this to pay cash for a condo. If you did so you would likely generate a positive cash flow every month, and on top of that you would benefit from the appreciation over the years. Probably not a bad investment.

If you were to split this money into multiple down payments on the other hand, you would be able to purchase more units that tenants ultimately pay for with THEIR money, and you will be the one collecting the payoff on MULTIPLE properties in the end.

This is the most important (and most basic) principle behind acquiring large scale wealth. ANYONE with a little discipline can shove $100 per month into a 401k and have a nest egg in 30 years. It takes guts and determination most people don’t have to build wealth in less than half that time. Leverage is the incredible tool that allows you to make it happen.

And to anyone who challenges leverage as being “risky”, OF COURSE IT IS! It can send you to the moon or sink you to the bottom of the sea. But if you have the knowledge, experience, and resources to back you up you will find that it isn’t NEARLY as risky for you as it is for the people crying “watch out!” from the sidelines.

I also noticed more criticism towards the “gurus”. Hopefully those of you who are serious about making things happen for yourselves don’t let it discourage you. Most anyone who has managed to accumulate great wealth in a short period of time will tell you that they made their fortune by doing things others said couldn’t be done. I have read dozens of books from various authors and have yet to find ONE that didn’t pay for itself several times over.

I apologize to everyone who has sent PM’s. Unfortunately I haven’t been around so there are too many accumulated to answer. The question most people have (I am ___ years old and don’t know how to get started….can you tell me what to do?) I don’t really have an answer for anyway. Please refer to the reading materials I recommended to learn more. YOU are the only one who can answer this question by learning and then trying different things to find out what is right for you.

Happy investing!

 

[h2o]

awesome thread...can't believe this information is all free...don't get any ideas

STR8UP,

Thanks a lot for this great thread. There is so much to learn from here (I've only had time to read the first 6 pages so far - so, hopefully the question I've asked below hasn't been asked on pages 7+). I actually stumbled on this thread in January. I read "RDPD," and am now halfway through "Building Wealth." I am a 20yr-old full-time college student now, with about $4K. I'm using Whitney's idea of getting loans and paying them back early. I'm also close to purchasing my first property in a month or so, a 4BR/4BA condo (around $95-$105K) that I'll rent out to other college students. I'm going to try and buy it with no money down. I've also figured that after mortgage/HOA fees/taxes, that I'll have a cash flow of about $200/month. The problem I'm facing now is that the realestate market in my state has hit a plateau, and prices are not really rising, so I'm going to have to hold for a while. It's not that much of a problem, it's just that I wish there was a way to make more money a bit quicker. (which leads to my question below)...

What type of property did you first purchase? I think that going with a condo at first could be better because there's less maintanence involved, and it would give me a feel for taking care of a place, managing etc, and looking after tenants/rent payments. After this one I'm going to try and get a distressed property to fix up (using Whitney's contracting tip)...and meanwhile I'm attending some investing seminars.

In a way though, I have a feeling that maybe getting my hands dirty with a distressed property at first may be a good challenge and help me to learn better? What would you suggest...? Since I really haven't signed anything yet. I know I could make more money with this type of investment also.

...besides, this is something that isn't really discerned in BW...he just says go buy property...doesn't say what type is best to start out with

Thanks a lot.
-h2o

 

[STR8UP]

Re: awesome thread...can't believe this information is all free...don't get any ideas

Originally posted by h2o


What type of property did you first purchase? I think that going with a condo at first could be better because there's less maintanence involved, and it would give me a feel for taking care of a place, managing etc, and looking after tenants/rent payments. After this one I'm going to try and get a distressed property to fix up (using Whitney's contracting tip)...and meanwhile I'm attending some investing seminars.

In a way though, I have a feeling that maybe getting my hands dirty with a distressed property at first may be a good challenge and help me to learn better? What would you suggest...? Since I really haven't signed anything yet. I know I could make more money with this type of investment also.

...besides, this is something that isn't really discerned in BW...he just says go buy property...doesn't say what type is best to start out with

Thanks a lot.
-h2o

My first purchase was a duplex. Best to start with bread and butter properties, duplexes, single family homes, or condos. I like duplexes because the cash flow tends to be better (although not always the case).

As for fixer-uppers....you are correct about them being a good learning experience. It is always good to know a little bit about repairs and such to help you make an informed decision when buying a property and to avoid being overchanged for repairs. Only thing is be careful not to try to do everything yourself. Remember, REAL money is made with a pen, not a hammer.

There is really no right or wrong. You have to get in and try a few things to find out what fits for you. Also, keep reading. Most of it might not make sense in the beginning but make an effort to try to look past your preconceptions and eventually you will feel like a light switch was turned on inside your head revealing the truth behind amassing wealth.

 

[Page]

Okay, i'm ready to jump into this. I've been reading Rich Dad Poor Dad for the past month, as time permits, and it is really making sense to me. I have yet to read any of the other books, but I plan to get on it ASAP. My parents have already said it wouldn't work, but the more they tell me this, the more I want to try it.

I'm only 21 and I already hate working a job to get my bi-weekly pittance. I want more out of life, and Real estate investing is apparently the way to go. I keep a savings account, but interest is piss-poor and there's no way it could keep up with inflation, so i plan to draw the money out to use with this.

Str8up: I live in Southren california, and properties are so high right now that you have to pay through the balls to get anything. (My parent's house just apraised for $700K, and the average place in their neighbourhood is about $500K for a typical 50-year old 3 bedroom house). How would this affect the investing process, if at all? Would I stil lbe able to buy property for zero down at that rate? (Even though my parents live in a nice fairly-upscale neighbourhood, properties are still high all across Southren Cali, even in the ghettoes) Could i even secure a loan for that much given my current age and job (I'm a part-time merchandiser abnd full-time college student) even if I had great credit?

My goal at this point is to own my first property by age 27 (or earlier, but i've set 27 as my final self-imposed deadline. ) Is this a realistic and attainable goal? I'm currently working on getting a credit card with the purpose of building good credit. About how long does it take to build credit?


My first property is probably going to be a duplex, most likely a foreclosure or motivated seller. Since I plan to live there for free in one of the units I want the place to be in decent shape. (I don't want to live in a broken-down shytty dwelling, and my tenants wouldn't either--- I'd end up being my own slum lord... heheh. ) My question is this: Are foreclosures and Motivated sellers usually in good shape or would i have to gut most of these places and remodel them? That would take time and money, and I would be losing shytloads of money if I had a gutted building that no one could live in for several months, plus all the building fees....


Please advise.

 

[SexPDX]

STR8UP, the books you recommended are all good books. I can agree with you there.

Having said that, why would you call this thread ST8UP's beginners guide to becoming WEALTHY when all you did was recommend a bunch of books other people wrote? I admit I have not read the entire thread but from what I have seen the material you have contributed to this thread yourself is stuff that is obvious to any multicellular organism who has devoted minimal attention to the subject.

Anybody who has really got it figured out how to make money just goes and does it. They don't talk about it on the Don Juan forum. Since you see the poor as simply losers who are unwilling to help themselves, why are you so eager to help people on this forum by typing as much as you have here yet doing little to actually help them beyond pointing the way to other people's material which would have been easy to find for anyone who was genuinely interested and possessed the grand motivation of which you speak?

I love the investment guru wannabes we occasionally run into on this site. They're hillarious.

-PDX

 

[Dimebag_Darrell]

I can't believe this thread is still in rotation. I read this thread like 3 years ago and it has some useful stuff.

 

[TinyFzzyKiwi]

Something my mom was telling me the other day about my sisters friends dad (hope that's not to confusing) was about how they have so much wealth. My mom told me that the guy has alot of money invested in real estate and land. The real estate part everyone already realizes, but if no ones thought of it, you can also buy farming land and rent it out to share cropping farmers, which is a portion of what this guy does.

 

[Stud]

STR8UP,

Reading this thread intially sparked my interest in real estate and by reading various books about this subject, I am getting ready to invest probably next year. I would like to thank you for "opening the door" on this great wealth building venture.

That being said, you have been investing for quite some time. If you don't mind, would you please elaborate on your current financial situation? I am hoping to become a full time investor, and the prospect of being wealthy while doing something fun is very exciting. Are you involved in any other ventures (ie. franchises, other businesses, etc.)? I would think that once the money starts rolling in, that other oppurtunties consitently produce themselves.

Thank you for your time.

 

[STR8UP]

>Str8up: I live in Southren california, and properties are so high right now that you have to pay through the balls to get anything.

Fortunately for me I live in an area where up until recently real estate was relatively cheap compared to the rest of the country. As of the last couple of years this has started to change and prices are skyrocketing. That being said, I couldn’t begin to give you advice on a market like California. I do know that there are people in EVERY market who make money. I am pretty sure that you should be able to find books and such tat deal specifically with that locale. If not check and se if there are any real estate clubs in your area. Nothing better than getting to know other active investors!

>Having said that, why would you call this thread ST8UP's beginners guide to becoming WEALTHY when all you did was recommend a bunch of books other people wrote?

The most common question people ask about building wealth is “How do I get started?”. I could write a 150 page thread on the principles of wealth but 1) The principles have all been covered by the authors I have mentioned 2) Although I have written specific tips and strategies I have personally developed, the last thing I am going to do is post them on a message board where I then lose the copyright! Until I have a book in print (should it ever happen) I would rather refer people to the books that have inspired or assisted me along the way. 3) The most important step anyone can make is to TAKE ACTION. This thread is nothing more than a starting point. The point of it is to MOTIVATE. If I inspired anyone to do so I have accomplished my goal.

> Anybody who has really got it figured out how to make money just goes and does it. They don't talk about it on the Don Juan forum. Since you see the poor as simply losers who are unwilling to help themselves, why are you so eager to help people on this forum by typing as much as you have here yet doing little to actually help them beyond pointing the way to other people's material which would have been easy to find for anyone who was genuinely interested and possessed the grand motivation of which you speak?

Who says “Anyone who has really got it figured out how to make money just goes out and does it. They don’t talk about it on the Don Juan forum?”

Kind of like if I were to say to you “Anyone who has figured out how to get laid in less than an hour just goes out and does it, they don't post on a message board”. But that's different, right?

I enjoy discussing the subject and get satisfaction from helping others get started. Nothing more, nothing less.

And yes, the vast majority of the poor are poor because they choose to be (or rather they choose not to do what it takes to get themselves out of their situation), not because they are helpless pawns downtrodden by the "opressors". Americans are poor because their beer and lottery tickets are more important than their future. Get out and travel the world a little more and you will see what TRUE poverty is.

>I love the investment guru wannabes we occasionally run into on this site. They're hillarious.

I would invite you to take a tour of my operation, but I doubt you would take me up on it.

>That being said, you have been investing for quite some time. If you don't mind, would you please elaborate on your current financial situation?

Despite the probability of others doubting the validity of my claims....

1- I am involved in a retail business of which I am basically a silent partner at this point which provides me with my monthly income. Will likely be selling this business soon.
2- Have a business overseas (eastern Europe) that has yet to turn a profit. Not a lost cause yet, we shall see.
3- Within the last 6 months I have sold two of my three duplexes to concentrate on the condo market in an emerging metropolitan area. My biz partner and I have closed on 11 mid rise luxury condos and have another 7 contracts pending on high rise pre-construction units and a couple of low rise units. Recently signed a contract to purchase a fully equipped restaurant.

We have good contacts and would be able to buy more condos and commercial property if we had more resources so at this point we are focusing on selling the business and talking to other investors to generate more capital so we can do more.