Describe what being a "Millionaire" feels like.

[biophase]

Lol makes sense. I had a buddy who said he was a millionaire because he did 100k in consulting a year and claimed a 10x multiplier. Obviously overstated for him - but always wondered for myself what my business asset was worth considering our profits.

I'd use 2.5X to be conservative. But if you sell, you give up 10% to broker commissions and 20% to taxes, so if you sold a biz for $1m, you'd get $700k. Not even close to being a millionaire.

But it really doesn't matter does it. Your buddy making $100k is far far away from being a millionaire, which is why he cares about the number.

If you are making $250k a year, you will become a millionaire in 4-5 years easily assuming your business grows a little each year and you don't spend all of your money. At that point your goals are to be worth $5M, not $1M so you don't even really calculate it.

 

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[rpeck90]

King156 is dedicationforex on instagram and runs a secon page called thefinanceking. If you want anything on this kid, give me a shout some 20year old kid named Alex who thinks he worked at Goldman Sachs LOL but is a bedroom trader lol

What do you know about him?

My friend went to meet dedicationforex in London and told me he is the real deal. His real name is Alex James and he talks to him on Skype regularly. Has an office (and I believe apartment) in Kensington and a large house in Surrey. He's not twenty either, he said in his thirties. I've not met him but everything I've seen suggests he is real.

 

[MJ DeMarco]

King156 is dedicationforex on instagram and runs a secon page called thefinanceking. If you want anything on this kid, give me a shout some 20year old kid named Alex who thinks he worked at Goldman Sachs LOL but is a bedroom trader lol

I don't care what, where, or who he is. He represented himself as a money-chasing douchebag who's "faking it until he makes it" -- which is pretty much every Instagram hack with a feed of photos of themselves standing in front of a financed 10 year old Gallardo.

Would you be considered a millionaire to have a business asset that profits north of $250K/Year and no debts or liabilities? Assuming a multiplier of 5?

Conservative would be 2X ... as @biophase said, after taxes and broker commissions. Whenever I valuate my business interests, I use 2X. However that would change if your business has a moat, or something unique and tangible that isn't easily replicated.

 

[TreyAllDay]

Thanks @MJ DeMarco & @biophase for your insights.

To answer the actual question - ALTHOUGH I am not a millionaire. I did experience a good 6 months before I really grew the business where I had 99% passive income, my profits far exceeded my expenses and I had barely any time commitments so I took it easy for about a month.

It's pure bliss (for a while) to be able to sleep in to any hour and still make money - my favourite thing was going to movies during the daytime and having an empty theatre.

 

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[MikeC]

I'd use 2.5X to be conservative. But if you sell, you give up 10% to broker commissions and 20% to taxes, so if you sold a biz for $1m, you'd get $700k. Not even close to being a millionaire.

But it really doesn't matter does it. Your buddy making $100k is far far away from being a millionaire, which is why he cares about the number.

If you are making $250k a year, you will become a millionaire in 4-5 years easily assuming your business grows a little each year and you don't spend all of your money. At that point your goals are to be worth $5M, not $1M so you don't even really calculate it.

Damn, brokers get 10%? How hard is their job?

 

[Real Deal Denver]

Damn, brokers get 10%? How hard is their job?

Anyone can do it. I do. It's not what I know that counts - it's who is on my speed dial.

I can do a deal in a very short time and make you a lot of money. Am I worth $30,000 for doing that? No. But if I "find" you an extra $60,000, you would probably want to do business with me. Many here wouldn't though - we have big rollers here. I'm a peon and I deal with peons... LOL.

Good brokers don't cost money - they pull their weight and make you money. Right now I am building a portfolio of clients that will buy something that I recommend. I know what they want, and if I find it, they'll buy it.

I had lunch today with a contact I work with who clears a million a year. You'd never know it. She's one of the nicest people you'd ever meet. How does she do it? She knows everyone, and everyone she knows loves her. She has the connections. I'm just super glad that I'm on her list too. I can make a deal happen just with one phone call to her. She will know someone to connect the dots, and then it's a done deal. I'll gladly pay her for her influence that opens doors for me. THAT'S how a good broker works.

 

[MikeC]

Cool, thanks for your insight. It caught my attention because 10% on a business sale is pretty significant cash. It seems like being a broker for business sales could be a lot more lucrative than real estate or a similar commission based "connecting" job.

 

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[The Abundant Man]

View: https://youtu.be/Eod-1KE0wqY

 

[sparechange]

Being a millionaire is awesome, you can afford a broken house with a small lot. Goodbye to paying rent baby!





For the people that don't know Vancouver that house is a few blocks from the beach so its ''prime location''

Great deal IMO

Wonder what the property taxes would be on that, any REI peeps here?