Diane Kennedy
Bronze Contributor
User Power
Value/Post Ratio
25%
- Aug 31, 2007
- 780
- 193
...Before I post anymore, I will finish Russ' goal post...and then post it.
Your willingness to hear this is fantastic. You are courageous. Not too many people can hear what other people are saying...too busy making excuses about it or going on the attack.
I like the suggestion of either "build your current business" or "get another one."
On the idea of net worth or cash flow, one problem I see again and again is people going to passive cash flow too quickly. Fact is you need to either put money or time into a deal. If you don't have the money, you need the time..but that's against everything we've been told. That's being an active L2 business. So, people keep trying to find that one investment/business that doesn't take money or time....and except for the lottery, inheriting or divorcing well (and often), I don't know that anyone ever finds that.
So, let's say you can get a 10% R Score. (Your passive income divided by your net worth) You want to get to $100,000 passive income per year. That means you need $1 mill net worth.
MJ uses highly leveraged forced appreciation to turn URLs into cash machines which have a value. SteveO, I think, is doing the same thing with commercial properties. (Buying right, making changes to make the value go up) At some point, it could be that both guys (and me too) will just invest the net worth from these into very passive activities, giving up some of the return in exchange for not having to worry about anything.
My guess is that net worth will be the most important thing for you right now. Get your current biz on auto-pilot and THEN go look for a forced appreciation deal. But you've got to get the current biz to the point where you're spending less one day per week on it, or you'll be stretched too thin to do both it and the new project well.
The problem you face is not lack of opportunities, it's choking on opportunities.
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