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A little unsure about the lending part in The Millionaire Fastlane.

Anything related to investing, including crypto

VigilantCMDR

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Hello,

I read the book back in August. I haven't been on the forum in a while as I started to seriously put some time into my website. Today alone, that website generated me $40. I don't expect that to be consistent everyday, but I need to know what my next steps are.

Obviously leaving it in a savings account at 1% APR isn't a horrible idea, but it's not generating anything really worth my time and it's just a sidewalker strat.

In the Millionaire Fastlane MJ DeMarco talks about how he makes 8% interest lending his money to people. I was wondering if @MJ DeMarco could maybe come and elaborate on how he's doing that, or if any of you have experiences with it and how you go about it.

Truth is, I just want to make around 1 million, then just set it in the bank and make like anywhere from 5-8% interest on it. I want a solid $40k a year to live on that I get from the interest so I can just live "comfortably" and not have to work. I just want to relax and have fun in life. Is this a good way to do it?

Thank you all for your help!
 
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The-J

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Research 'hard money lending'; some real estate investors do deals that are cash only and time sensitive and they need the money now, so they'll borrow hundreds of K at high interest rates to make it happen.

Although if you don't currently have money in the bank there's really no point in having this info now.
 

MJ DeMarco

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talks about how he makes 8% interest lending his money to people.

Wuh? I don't recall ever saying that.

hen just set it in the bank and make like anywhere from 5-8% interest on it.

No bank pays 5-8%. Not sure what book you read, but it doesn't sound like mine. Otherwise, there is a comprehension issue.
 

SEBASTlAN

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In the Millionaire Fastlane MJ DeMarco talks about how he makes 8% interest lending his money to people. I was wondering if @MJ DeMarco could maybe come and elaborate on how he's doing that, or if any of you have experiences with it and how you go about it.

Truth is, I just want to make around 1 million, then just set it in the bank and make like anywhere from 5-8% interest on it. I want a solid $40k a year to live on that I get from the interest so I can just live "comfortably" and not have to work. I just want to relax and have fun in life. Is this a good way to do it?

Thank you all for your help!

I think you're referring to LendingClub?
 
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Tourmaline

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Getting passive income by investing or lending in safe things that give 2-10% is what you do AFTER you've made your million.

I'd focus more on making that million and figure out what you're going to do with it later.

Though I'm guessing you don't live in the USA as $40k/yr you can survive off of sure, but it doesn't exactly leave much room for fun.
 

VigilantCMDR

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@MJ DeMarco "
Even in this low-interest-rate environment I can find safe investment yields in the 4%–6% range, some tax-free. While most people shudder at the thought of an interest rate increase, I love it. I get a pay raise. A 1% interest rate hike translates into thousands per month for me. And since inflation rises in unison with interest rates, my income has an element of inflation protection. If inflation rises, so do interest rates. So how does all of this become a reality? I created a passive income stream via my Internet businesses (a business money
tree seedling), which funded my passive income system from lending. While my Internet business was 85% passive (yes, I had to work several hours per week), my lending passivity is 99.5%. I do virtually nothing and the checks arrive."

This specific passage, I was wondering if you could please share how to keep that passive income coming.

Thank you! :)
 

VigilantCMDR

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I make around 9-11% on a portion of my cash and retirement funds by lending. These are loans secured by real estate, so they are relatively safe short-term, and much more than relatively safe long-term. The process for making these loans is quite simple, and there isn't a lot of overhead or management involved.

The downside -- like with any lending/investing -- is that you have to have some level of expertise in the assets that you're lending against. If you have a decent amount of cash that you want to put to work for some safe returns in the 10% range, it may be worth spending some time learning about real estate investing and how to lend to investors.

How did you go about getting that setup? Do you just contact your bank you're with or is there a big company to use?
 
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SteveO

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You are wasting your time looking for returns on money you don't have. Kick that money making into high gear. Then you can worry about what to do with it.
 

MJ DeMarco

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I can find safe investment yields in the 4%–6% range

Yes, but you claimed I said 8%.

Read Unscripted . It doesn't get any clearer than what I wrote in there, I believe it is Chapter 48. I'm not gonna rewrite something I've already written.

You are wasting your time looking for returns on money you don't have. Kick that money making into high gear. Then you can worry about what to do with it.

Amen.
 

VigilantCMDR

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Yes, but you claimed I said 8%.

Read Unscripted . It doesn't get any clearer than what I wrote in there, I believe it is Chapter 48. I'm not gonna rewrite something I've already written.



Amen.

Oh okay, I didn't know if you covered it more in Unscripted sorry. I'll start reading it tonight, thank you!
 
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VigilantCMDR

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Getting what set up?

Simple process:

1. Find someone that needs money;
2. Get them to sign a contract to repay that money, and get good collateral in case they don't;
3. Give them the money;
4. Wait for them to repay (or take the collateral).

#1 I do through my network.
#2 I have an attorney or title company do for me.
#3 I have an attorney or title company do for me.
#4 should happen automatically.

Thank you!
 

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