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Free registration at the forum removes this block.I just read this interesting article about buying an established small business:I'm actually about to be in this situation. Leaving my slow lane banking job to take some time to travel, relax, and focus on health and happiness. Once my house sells, I'll be sitting on about this much in liquidity.
Presently almost all my net worth outside the equity in my house is in the stock market in various diversified ETFs.
The plan at present is to buy an established profitable business (e.g. a baby boomer owner looking to cash out and retire). It needs to be large enough to have leadership and processes already in place so I'm not replacing one job with another. I know the business will require some time commitment but I'd like to minimize that as much as I can. Goal would be to grow it with the intent to flip it in a few years with enough money to ride off into the sunset.
In the meantime, during my time off, I'm going to take a small amount of capital and explore option trading as a potential fastlane as others here have done. This is appealing on many levels, particularly as it's much less cumbersome than owning a business. That being said, I have no delusions of grandeur given the risk involved and the discipline it takes to do it smartly.
google translator!Coke and Hooters?
Lol. Here its -0,55- -0,75%!In my country put all the money in Bank Fixed Deposit (Bank owned by the government) . With interest rate around 6-7% you will not have to work ever in life .(Though I wont recommend it)
I would repeat the same manner in which allowed me to obtain $1M in the first place.
If it was inherited, I'd invest in a business, or buy one with an existing track record of net earnings.
I love your hookers. I imagine that sexual frustration does not exist in Germany. Anyway ... I hit a million in liquidity. All I can think about now is doubling it .... and hookers in Germany. I even like the 25 euro ones. I apologize for the perceived misogomy .... but truth be told it is a best value from my perspective like stated .... and by the way not illegal. Two million would be so much better. I kinda think that a million is a lifetime of slow lane. That's if you are lucky and live right .... as they say.google translator!
In German we say "koks und Nutten", "cocaine and hookers" maybe better in english
I think he should invest most of the money in stocks, stay at his job until he proves that he can get paying customers and validate his business idea, then leave his job and use ~$100k to work on his business full-time for a year. If it doesn't work out he has the skills to find a great programming job.
$4m worth of Real Estate
Are you going to learn the Asian languages first? That would seem like a threshold issue to know what you are doing. Since you read and write English, you might start with that.Build one of the best PC models out there,
buy a lot of coding books and courses online and hire an intelligent but broke aspiring tutor from Asia to teach me coding in several languages.
I never recommend 20% down real estate deals unless it's your personal home... and that's all the down you can scrape up. I've seen too many people drown in all of that debt and go down in flames. If the property needs work, you can't do 20% down anyway. I would like to see him buy an ugly property for cash, fix it up and rent it or sell it. It's amazing the deals you can get with wads of cash.If going this route, I would say $2m maybe up to $3m real estate with 20% down. He needs cash reserves. At $4m worth, if a couple units are empty he will be hurting. Start at $2m, until he gets comfortable or rents go up, then expand.
I never recommend 20% down real estate deals unless it's your personal home... and that's all the down you can scrape up. I've seen too many people drown in all of that debt and go down in flames. If the property needs work, you can't do 20% down anyway. I would like to see him buy an ugly property for cash, fix it up and rent it or sell it. It's amazing the deals you can get with wads of cash.
India? I was pitching dividend portfolio to my Indian prospects who always told me they could get that kind of yield risk free at home.In my country put all the money in Bank Fixed Deposit (Bank owned by the government) . With interest rate around 6-7% you will not have to work ever in life .(Though I wont recommend it)
The textbook answer to this is it depends.I'm curious about how Fastlane entrepreneurs would invest one million dollars. Would you put it in stocks? Invest in real estate? Bootstrap a business from scratch? Buy an existing business?
We see it completely differently. I started in real estate in 1976 -- 43 years ago. I was doing flips in the Los Angeles ghetto when we still called them Equity Purchases and it was an unknown business. So, I have a LONG perspective on things. Yes, you can use leverage. You can also lose your whole nut in a heartbeat. I have seen several business cycles come and go over the years. I watched friends go from owning fortunes to standing with their hat in hand, in bankruptcy court. I lost a huge amount during a riot one time. No, fire insurance doesn't work during civil unrest -- and the banks still came after me for their money... But, who am I to give advice????What?
If the real estate cash flows at 20% down and they understand how to operate the asset they would be fine.
You're wrong on the property needing work and not being able to put 20% down too. It depends on the lender and what you define as needing work. As long as it's not condemned I cant see a lender not loaning to you unless you're completely incompetent or the property needs to be torn down in which they may still lend on the land.
If you buy an ugly property for cash, you lose the ability to leverage your capital on the asset and improve your return. You make money in real estate in the spread, cash flow, and equity appreciation.
You may think that by paying cash your return is increased but thats not true, your return is decreased but so is the risk. There is a balance in debt and equity that everyone needs to pick for themselves, but without contest having debt on property is one of the primary methods of wealth creation.
If going this route, I would say $2m maybe up to $3m real estate with 20% down. He needs cash reserves. At $4m worth, if a couple units are empty he will be hurting. Start at $2m, until he gets comfortable or rents go up, then expand.
Slow and steady wins the race. Equity and cash-on-hand are the king. Collecting (not making) payments and receiving rents are the end goal.If going this route, I would say $2m maybe up to $3m real estate with 20% down. He needs cash reserves. At $4m worth, if a couple units are empty he will be hurting. Start at $2m, until he gets comfortable or rents go up, then expand.
I think this demonstrates that investing in your skills may be one of the best investments you can make. This guy made about $1 million on stock options using his programming skills in someone else's startup. He's a self-taught programmer! Before that, he was working a non-technical job for $40k.I have a friend who made it working as a software developer in someone else's startup, but he is tired of being an employee and wants to start his own business. He doesn't feel like the 1 million is enough money to leave his job to work on his biz full-time, so he is working on the biz part-time to get traction. The job + his family is taking up the majority of his time though, and he's also not interested in raising money and giving up equity in his business.
I'm not sure how to advise him. I think he should invest most of the money in stocks, stay at his job until he proves that he can get paying customers and validate his business idea, then leave his job and use ~$100k to work on his business full-time for a year. If it doesn't work out he has the skills to find a great programming job.
Thoughts?
Smart man. Unproven ideas and business plans are a dime a dozen.BTW I tried to get him to invest some cash into MY new business, but he told me I need to show more traction before he thinks it's a wise investment.
I'm curious about how Fastlane entrepreneurs would invest one million dollars. Would you put it in stocks? Invest in real estate? Bootstrap a business from scratch? Buy an existing business?
Having an office and people are both overrated. The PC has made the idea of having office space yesterday's plan -- unless you just happen to own the building... Most activities that an employee can do, can be outsourced.Depends on your goals for sure.
Right now I want to unscript so if I earn 1 million I`ll probobly invest half of it in real estate, that`ll be enough for me to quit my day job.
With about 25% I`ll be able to buy my own house + alot of land (thats a personal choice, I WANT land) which will kill most of my current expenses.
The rest I`ll put into my business. Its a SaaS platform and we broke even about 2 months ago.
When december started we had a couple of hundred dolars in profit, so thats good for now, but we dont have money for office and people yet.
BTW I tried to get him to invest some cash into MY new business, but he told me I need to show more traction before he thinks it's a wise investment.
how is your new business doing? How old is it?
I agree! This makes the most sense to me.If this is where he's at, he should not be investing any of it. Imagine he invests $1m in stocks and the market hits a small downturn and now it's worth $800k. No way he's ever quitting his job now. He's too risk adverse.
Basically he should keep it all in cash, use some of it to fund his start up and keep working until his business is making some money. He will never take that leap without alternative cashflow if he can't do it with a $1m cushion.
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