Over $350k Portfolio Breakdown

[theferrariboy]

Hello fastlaners,

Its an awesome gift to be able to freely talk about money without judgement. I wanted to take the time to breakdown my portfolio for you all who are just getting going. Like I said in my intro, I will advise anyone on getting from 0 to 100k/300k but am not qualified to help people get to a million as I'm not there YET. I will also not reveal my name. Just a preference I'm sure you all understand!

1. Commercial Real Estate – 135k+

a. I invested 100k (how I got this 100k is another real estate story and would be happy to dive into it if enough people want to know) into a deal with other partners almost 2 years ago. We purchased a building over 30% below tax value because it wasn’t being rented and the previous owner was hemorrhaging money on the place. The way the deal was structured instead of receiving a monthly payment proportional to my investment, it is reinvested into paying down the mortgage where I make a bit less than 2k a month in asset appreciation. The money is invested before being taxed allowing me to make money off of “borrowed money” from the government.

2. IRA – 65k+

a. When I was 15 I started investing in my Roth IRA. I worked and invested LITERALLY EVERY PENNY into my IRA not spending a dime until it was maxed out 5k per year, now 5500 per year. Yeah yeah yeah I know this is slowlane BUT even if I don’t invest another F*cking penny, and I don’t touch it, and I fail at everything else and am broke besides this one account, barring an apocalypse, I will be a millionaire when I retire.

3. 401(k) - ~9k

a. we all know what this is…

4. Buying a home fund – 100k

a. I have 100,000 dollars in cash on standby when I decide to purchase a home. “but but you could invest that money!?!!?!?!?!” I don’t care. I want to purchase a home. Cash is king and you get a much better deal when purchasing a home when you can deal all or mostly in cash. I also don’t believe in buying things I can’t afford and absolutely hate and have never been in debt.

5. Newly purchased business – 6k

a. Just purchased an ecommerce company

b. The average sale price of an ecommerce company is 2.57x profit

6. The Fun Stuff – The Toys ;-)

a. Jetski – 7k

i. I have a standup jetski that I love going out on the lake in the summertime.

b. Rolex Submariner – 7k

i. Here is an example of my “smart saving.” I had a few grand laying around from my summer job while in college and there was a gentleman who needed money fast so I got this for about 60% of its value… cash is king.

ii. When you buy something like this where you are wearing a car on your wrist always get a separate policy for it. It costs about 1% of the value of the article per YEAR. This means if on average, you would lose it, it would get stolen, breaks and falls off, once every 100 years, you break even!!!! I can’t stress this enough. Don’t be penny-wise and pound foolish.

iii. For this I had to get an appraisal.

c. Car – 10k

i. It’s a nice car, reliable.

d. Smart Saving – this was my way of saving money when I was younger (make it unspendable)…. If you’d like to know more about this feel free to let me know and Ill make a thread going into detail

i. 3k – money collection (quarters, bills, etc.)

e. Very expensive bottle of Scotch – 600

i. This is ONLY to be opened when I hit a 1 million dollar net worth. Bought it when I was 21 for my birthday

7. Rainy Day fund’s

a. 3,400 – Random cash in a savings account probably to invest in ecommerce business

b. 1,900 – Savings to go towards new car/repairs (75$ - 100$ out of every paycheck goes into this fund)

i. I ONLY pay cash for cars.

8. There’s about 10k – 15k unaccounted for with random assets like computers and such.

That is my portfolio at 24 so far. If you have an questions, let me know.

-theferrariboy

****On the "toys" my point wasn't showing that I have toys it is to more show the ratio of toys to investments to show what you can budget (or at least what I do) because it is important to reward yourself for progress made.****

 

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[davedev]

Thanks for posting @theferrariboy

 

[The-J]

If you wouldn't mind, could you elaborate more on the busines you purchased? You spent a fraction of your total portfolio on it. Where do you see them going, and how do you plan to get them to where you want them to be?

A lot of people here aren't too interested in your toys, or even your RE holdings. But they WILL be interested in seeing you take a $6,000 e-commerce business (if you paid 2.5x revenue, then it's only grossing $200/mo, if you paid 1x then $500/mo, which isn't a lot of money by any means) and turning it into a $100,000+ business. Why did you buy an e-commerce business?

I ask out of curiosity

EDIT: I said you purchased it for $9k. You purchased for $6k. I have trouble with numbers.

 

[theferrariboy]

If you wouldn't mind, could you elaborate more on the busines you purchased? You spent a fraction of your total portfolio on it. Where do you see them going, and how do you plan to get them to where you want them to be?

A lot of people here aren't too interested in your toys, or even your RE holdings. But they WILL be interested in seeing you take a $6,000 e-commerce business (if you paid 2.5x revenue, then it's only grossing $200/mo, if you paid 1x then $500/mo, which isn't a lot of money by any means) and turning it into a $100,000+ business. Why did you buy an e-commerce business?

I ask out of curiosity

EDIT: I said you purchased it for $9k. You purchased for $6k. I have trouble with numbers.

Good point @The-J ****On the "toys" my point wasn't showing that I have toys it is to more show the ratio of toys to investments to show what you can budget (or at least what I do) because it is important to reward yourself for progress made.****

The business I purchased is a business that used to do a significantly higher amount of sales. Over 2 million in revenue but has been in highly incapable hands. It is a "turn-around artist" type project. Buy low, sell high. People buy crappy houses and fix them up, and sell them for a profit all the time. Same with businesses.

It has a lot of upside, and with the right love and attention it could turn very profitable.

My idea behind this strategy is one popularized in Jim Collins' book "fire bullets then carefully calibrated cannonballs"... While this had a purchase price of 6k I am planning on purchasing more similar businesses.... 6k being a bullet, and 4 or 5 more just like it, giving it some attention, and when the model starts working, fire a cannonball (i.e. start throwing a lot of money towards it)

There is no sense in throwing money at something just because I have it. Just because I have the money to invest, doesnt mean I throw 50k at something instead of investing a small portion, seeing if it works, and when it does, then throwing another 50k at it with little room for error.

Prove the model works, then pump it with adrenaline so to speak

 

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[ebms]

Good post. I'm interested in hearing how you made the 100k in RE and your smart saving strategy.

 

[Harry321]

I'd love to hear more !


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[theferrariboy]

If you wouldn't mind, could you elaborate more on the busines you purchased? You spent a fraction of your total portfolio on it. Where do you see them going, and how do you plan to get them to where you want them to be?

A lot of people here aren't too interested in your toys, or even your RE holdings. But they WILL be interested in seeing you take a $6,000 e-commerce business (if you paid 2.5x revenue, then it's only grossing $200/mo, if you paid 1x then $500/mo, which isn't a lot of money by any means) and turning it into a $100,000+ business. Why did you buy an e-commerce business?

I ask out of curiosity

EDIT: I said you purchased it for $9k. You purchased for $6k. I have trouble with numbers.

Also, you said "grossing" .... I said PROFIT. It grosses a lot more than 200$ per month, the profit is only around 200 to 400$ per month depending on the seasonality.

 

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[The-J]

Also, you said "grossing" .... I said PROFIT. It grosses a lot more than 200$ per month, the profit is only around 200 to 400$ per month depending on the seasonality.

Why the thin margins? I'd be interested in a progress thread outlining how you turn a little web business into something serious. You'd pull serious rep+ here doing so, too (say what you want about internet reputation but it helps at meetups).

Do you think you can turn it into $100k a year? $500k? $1m? Bigger?

 

[theferrariboy]

Why the thin margins? I'd be interested in a progress thread outlining how you turn a little web business into something serious. You'd pull serious rep+ here doing so, too (say what you want about internet reputation but it helps at meetups).

Do you think you can turn it into $100k a year? $500k? $1m? Bigger?

The margins arent that thin. I can post a thread about what I am doing with the site and progress reports along the way.

I'm not sure what you're talking about with rep+ and internet reputation and meetups?

 

[The-J]

The margins arent that thin. I can post a thread about what I am doing with the site and progress reports along the way.

I'm not sure what you're talking about with rep+ and internet reputation and meetups?

Don't worry about it. I, for one, would be very interested in seeing what the site grows into

 

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[theferrariboy]

Don't worry about it. I, for one, would be very interested in seeing what the site grows into

Sure, and I think it can grow to 100k profit a year. That is my goal for it. It could be much more than that because of the niche but 100k suits my needs very nicely.

 

[Stu_Hefner]

Where did you purchase your site from? I'm currently looking to invest in ecommerce sites at the same kind of price range as you. But everywhere I look the sites are either out of my price range, or the ones inside my price range seem to be all phony with their earnings reports ect.

Any advice?

 

[theferrariboy]

Where did you purchase your site from? I'm currently looking to invest in ecommerce sites at the same kind of price range as you. But everywhere I look the sites are either out of my price range, or the ones inside my price range seem to be all phony with their earnings reports ect.

Any advice?

The reason this type of business isnt for everyone is because of the level of difficulty around purchasing an ecommerce website with value.

While you have sites like flippa, most of them are "get rich quick" sites for 500$ or ones that have been in business a few months with Adwords profits.

Finding a gem like the one I found takes time and effort. Also when you find a site, they are clouded in such a high level of secrecy that it is impossible to find the owner of the site to make an offer.

As far as a site like flippa, set your parameters, sift through the crap, and every once in a while, a gem will surface. Good luck!

 

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[Stu_Hefner]

The reason this type of business isnt for everyone is because of the level of difficulty around purchasing an ecommerce website with value.

While you have sites like flippa, most of them are "get rich quick" sites for 500$ or ones that have been in business a few months with Adwords profits.

Finding a gem like the one I found takes time and effort. Also when you find a site, they are clouded in such a high level of secrecy that it is impossible to find the owner of the site to make an offer.

As far as a site like flippa, set your parameters, sift through the crap, and every once in a while, a gem will surface. Good luck!

Definitely understand that. That's why I'm not lookin at flippa. I'll keep digging. Thanks for the input


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[theferrariboy]

As this is a progress thread, here is my progress to date.

My portfolio just hit 540k and I turned 25 not too long ago. Gosh I feel old. I'm still trying to figure out how to grow it exponentially, trying and failing at various ventures, investing in things that have worked a little but turned out not to be scaleable, and learning a ton along the way. I'm sure I will find something as I keep plowing on.

As this is the fastlane, I guess this is why it requires a V12 instead of a 4-cylinder. ;-)

I am considering a change of scenery, where I am right now is getting old. Ironically when I went to do the "Make my decision" the other choice I was considering was "Move to Phoenix" (I have a friend who is moving there... girl obviously haha) and the example on the site was Move to Phoenix, maybe it's fate! haha

 

[Phones]

@theferrariboy , Interested in the 0 to 100k$ story

 

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[Determined2012]

(how I got this 100k is another real estate story and would be happy to dive into it if enough people want to know)

I'd like to hear the story also.

 

[JAZI]

I am interested in the 0 to 100k story as well

 

[theferrariboy]

It's been a while since I posted here so here is an update.

I am actually taking some time to enjoy my 20s at this point and consider myself semi-retired. I am 25 at this point and sitting on a net worth of somewhere between $550k - $600k which I know isn't a lot but it grows everyday.

I own a 3 bedroom condo in NC and have 2 roommates who rent the other 2 rooms generating me an extra 900$ per month I wouldn't otherwise have which more than covers my expenses. I don't have a mortgage on the place, paid cash entirely so I net after all expenses, even my share of the utilities, around 500$ a month. I'm only "home" about 4 days a month. The rest of my time I spend in Florida, Michigan, or Phoenix (Actually looking at trading my NC condo for one downtown in Phoenix and moving there). About a month ago I bought my first Ferrari (360 Spider) with the standard red and tan interior, with a convertible roof. She is my baby and I paid all cash for her as well.

As weird as it may sound I am actually taking some time to diligently date and look for a life companion and the woman of my dreams so I guess I would consider that my career at this point.

As far as business goes, I have my money in commercial real estate which is pretty passive but has been doing extremely well.

-theferrariboy

 

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