/biz/ - Business & Finance

>>10194706
No

>>10194706
Yes anon. Just don't go all in.
Some stock, some real estate, some crypto, some cash. And live frugally.

>>10194706
No, but it's enough to start making serious money

>>10194706
Yes, but $1.5mm USD would be comfier.

>>10194706
Im almost certain I could retire on $500,000 if I tried. Im only 24, but im the most frugal son of a bitch you can meet.

I got a car with very nice gas mileage, a small apartment, and I get 90% of my food from the dollar store. The money that I save goes into stocks. Not troll stocks, the big boys. and the indexes. Everytime I save money while shopping, I can invest that money in liquid index funds that I can make further money off of.

There, I just solved poverty. Live within your means.

>>10194756
Lol you're fucked this year

1 mill is arbitrary

It all depends on what you want out of retirement.

If all you need is internet, vidya, simple food and gym... Well the cost is low, I can already sustain this but not quite at retirement yet.

If you want two holidays a year, money sucking trophy wife and show off to friends, this will cost considerably more.

>>10194756
so when do you plan on starting to live?

>>10194706
If you have no debts, and housing and vehicle are settled. You need to generate 6% return. 4% to live off and 2% to increase the principal to protect inflation.

Then you could supplement your income with some work to keep you connected with people and same. But some bulshit part time gig. So people don't know your making it.

But, a total net worth of 1 mil. Isnt

>>10194756
I'm all for living within your means and not pretending to be a rapper and buying jewelry and 4 cars and 3 houses or what not

But buying all of your food from the dollar store is the most pleb thing ever. I can't imagine eating dollar store food on the regular and feeling good about my day, Nothing beats a really good meal and you could be making top tier food for ~$10 a meal if you know how to cook right. The richer I get the more steaks I'm going to eat. I tend to measure wealth in good food tbqh

>>10194706
Why wouldn't you try to start a business with 30%?

>>10194841
Because you could lose it as most businesses fail.

It really comes down to if your debts and housing is all paid for (as someone already mentioned).

If my house was paid off, and I had 1 million in the bank (29 years old here)... I would definitely consider retiring. For me, it's not so much about actually retiring; it's about being able to retire. I think overall I would be happier with my life if I knew no matter what happend with my job, I would be OK

>>10194849
Even so, you have a lot of tries with that kind of money.

>>10194849
All businesses fail, but some make it beforehand

>>10194706
It is if you're debt free

If you use a good bank or credit union you can buy around $10MM of real estate with $1MM cash.

Rent everything out. You can probably afford 20 decent properties each work around 500k and each renting around $5,000 a month. If you structure your mortgages competitively you can probably net at LEAST $1,000 per property per month after mortgage and expenses.

So you can turn your $1MM into a ~$20,000 monthly income.

Think you can live off that?

Why don't more people think like me?

>>10194706
For 10 years maybe. Not enough though.

>>10194985
>If you use a good bank or credit union you can buy around $10MM of real estate with $1MM cash.
3% down, bitch
1 million down is 33 million in real estate

>>10194985
Because thats a really risky strategy that will leave you peniless if you fuck it up

>>10195004
That's not a thing for investment properties.

But hey if you can do it go for it

>>10194756
>Live within your means.
you're never going to make it anon

>>10195006
>buy a newer property near a college or major city
>get a nice camera
What the fuck is risky about it? If you can't rent you sell the equity you own.

Yes absolutely, if you can't retire on $40,000 a year you are a fucking retard

Daily reminder that most old Americans live off of basically Social Security and Medicare and nothing else

>>10194813
the point of cooking on your own is so that you aren't paying $30 a day to feed yourself, and you don't end up dropping $11k a year on food alone

>>10194985
>Why don't more people think like me?

no one wants to be a landlord and take care of 20 properties you stupid fucking hillbilly

1m hasnt meant anything for over 20 years, if you dont mind leading a risky retirement with little money to spend on anything 1m might get you by.

but putting 1m away and just spending it over X years is about the stupidest way to waste 1m.,

>>10195054
>no one wants to be a landlord
>oh no I might have to paint a wall once a year! I could never do that for a lifetime of freedom otherwise!
I'll never fucking understand slave mentality

>>10194985
>If you use a good bank or credit union you can buy around $10MM of real estate with $1MM cash.
How?
I have more than $1m, but no bank will give me a big loan as I don't have an income beyond that cash. As far as I am aware.

>>10195054
>no one wants to be a landlord
imagine believing this

>>10195110
You can look up mortgage offerings online. If you put up over 10% (And I mean like 10.1%) as a down payment you'll automatically get like 5 different mortgage offers with rates in the 4 percent range.

>>10194985
>So you can turn your $1MM into a ~$20,000 monthly income.
>Think you can live off that?

because who the fuck wants to deal with assholes complaining about a leaking pipe, dealing with one tenant is enough of a pain in the ass, but if you multiply it to 20 of these assholes you're just going to end up their bitch and it'll take up all your time. You also cannot guarantee that these tenants will stay in your flats forever and you are guaranteed to have at least one nigger tenant that will break your shit and never want to pay which adds additional legal costs to evict them.

>Why don't more people think like me?

because you are stupid and will waste time and money.

>>10195134
>I would literally rather spend my life wagecucking rather than respond to the OCCASSIONAL EMAIL about some issue with a house
I honestly cannot fathom this mindset.
It is so fucking bizarre to me. I'm having serious issues with even comprehending how you can possibly believe this is a serious inconvenience versus the other options of getting through life.

>>10195030
And what happens when the value of the property halves and rental demand dries up? If it would be just free real estate as you make it out to be, then banks would invest money themselves, not loan it to you

>>10195113
oh sorry, I meant no one with actual money

dumb rednecks leveraged up to the hilt with nothing to show for it but a collection of stick built shitpile duplexes who think they're hot shit businessmen like their idol Donald definitely want to be landlords, even though they are essentially nothing more than middlemen between the renters and the bank they pay interest to

>>10195160

no you're the fucking idiot here.

why not just take some time to study about investment principles and create a well diversified portfolio of dividend generators that creates passive income. You'll be making money without lifting a finger.

>hurr durr i'm going to spend all my time being errand boy for Tyrone, huurrrr can't go on vacation, Ahmed clogged the drains, gotta sort it out)

being a landlord just means you're an employee for the tenant.

>>10195189
Rental values are not exactly the same as property values. They're different markets.

But I agree to wait for a dip if you can.

Also banks make way more money just loaning out money than they do getting into real estate, which admittedly you do have to do SOME work to upkeep. Oh no, the occasional email! You might have to develop a relationship with a white guy contractor and tell him to look at stuff!

But yeah nothing beats just loaning money and making money for free. I don't have that kind of cash. But banks also accept real estate as collateral, and that says a lot.

>>10195215
>huurrrr can't go on vacation
Yeah I know man email doesn't work now you can't just tell your contractor to go there from Mumbai or wherever the fuck you are.

>>10195160
Or, you know, hiring a fucking manager and repair guy for each property

>>10195054
You can target commercial property. It has its own set of problems to consider, but many commercial leases stipulate that basically everything associated with maintaining the property is the responsibility of the tenant.

>>10195243

>lets overstretch my finances and incur millions in debt via mortgages to pay for properties who will be rented out to strangers that may or may not take care of it and pay my mortgage on time. If one of them leaves i'm picking up the tab.

>lets wait 10 years for the property to appreciate

>>10194706
only if you're like age 45 or older, and even then it'll be a humble, frugal life.Unless you want to retire somewhere cheaper than say the US or Canada.

>>10195303
Also this:>>10195244

Has anybody here even lived in an apartment? There ARE owner managers, but tons of apartments are run by a management company. It cuts into your profits a little, but you're paying to do absolutely nothing so I don't see how it is possible to complain much.

>>10195316
this is a good summary, however if you have millions and buy a property with good tenants (businesses) it can work

Lmao at the retards here. Assuming this is post tax you can retire on $500k. Would it be comfy? Probably not. But you could live a low / middle class lifestyle in the USA or a upper class lifestyle over seas.

Following the 4% rule you could safely withdraw $40,000/year from your 1mil. That is 40k spending money a year, which is comparable to 60k-70k income + saving. And you make that in your sleep so you can work 10-20hr/week doing stuff that makes money on the side if you want. Stuff you like and would do anyway to keep you busy.

You can easily live a comfy live on that spending in low cost of living areas, house + car, etc. You could live in a city, but it would not be comfy, you would have to rent a cuckshed or be a condo cuck.

4% is very conservative. If you a good investor you could withdraw much more. So yes, 1mil is easy to retire on. You just won't be rich.

>>10195316
Have you ever heard of a security deposit?

It also doesn't hurt to be a little racist in your tenancies.

And this isn't about relying upon the property to appreciate enormously. Take a look at my example earlier in the thread. 1MM for 20k monthly. That's 240k yearly, or 24%.

The important aspect of real estate versus your shitty investments is that the returns in real estate are ADDITIVE. Each property you invest the more you get. May not be worth it much for 1 property but 20? Hell yeah.

Tell me what boomer investment is going to net you 24% returns. With fairly low risk, regardless of your shitty FUD.

>>10194706
To Thailand, India, Sri Lanka, Bulgaria, Hungary or Colombia probably but you don't want your wealth going down in a crash while you are living on the interest

>>10195231
Rent-seeking is really a particularly leech-like frame of mind. Looking for opportunities to absolve yourself of as much responsibility for the asset as possible. Banks obviously do that when they demand collateral, but you can also do that with renting out equipment that demands a deposit or anything else. It's possible in the latter case somebody could incur damages to the equipment beyond the deposit, and that they may duck any attempts to collect on the damages, but if you find the right niche it will be an uncommon enough occurrence that you can reliably price it in. The goal is almost always to do as little work as possible.

1 million is nothing, I can make that in 6 years.

>>10195376

Where are you getting $20k monthly? Where I live a $1m house would get you about $7k in rent a month max. Then you have to pay for everything, downtime between tenants, non owner occupant tax, tenants that don't pay, deal with tenants that sue you, etc.

>>10195430
See
>>10194985

>>10195327
>but you're paying to do absolutely nothing
so how exactly does this outperform a REIT in the long run?

>>10195351
>You just won't be rich.
you would be a teeny tiny percentage of people who earn a middle class income without lifting a finger
that's rich in my book

>>10195376
you aren't going to rent 20 properties for $5000 a month
you aren't going net $1000 per property
you're also on 1099 income which means now you're also paying both sides of FICA
we don't even need to present an alternative investment because your returns aren't real

>>10195376
real estate is the backbone of a boomer "investment" portfolio. stay poor and kys.

>>10195377
aren't there safeguards against crashes when you invested in conventional stocks/etfs? like i assume in a managed ETF they would use some kind of stoplosses, right? so even if we entered some crazy recession they'd just sell off and give you the remainder back?

>>10195457
>muh 10% cap rate is unrealistic
>1099 income
Brainlet. What the fuck is wrong with people. Literally just don't be braindead with your housing selection or your tenancies and this is extremely simple.

>>10195231
They're tied to the property value in the sense that if the rental demand dries up, you'll have to pay the loan out of your own pocket. If you run out of money, the bank will take the property and sell it to cover the loan. And if the property prices have halved since you took the loan and the selling price doesn't manage to pay for the loan, you're fucked.

>>10195527
Limited
Liability
Company

>>10195439

oh so you assuming you are leveraged 10x

>>10194706
Not really, $2MM is the go-to amount in order to retire anon

>>10195457
>so how exactly does this outperform a REIT in the long run?
That would probably depend on your market. It's not as easy as just buying some apartments somewhere and fucking off, that's for sure. You have to play it like any other market to try to beat the regular returns. But just as far as industry profits I'm aware of an industry research report company that our company uses which claims of its surveyed companies the average profit rate for apartments in 2017 was around 30%. I've never personally owned an apartment, though I've looked at some business plans for them before that aim for those returns a couple years out for new development.

>>10195545
Care to explain? I'm not a burger

>>10194706
It depends where you live.

>>10195634
The jews created a legal fiction called an "LLC". Basically the house you are renting is treated like a company itself, and you personally are removed from the reach of creditors.

So in the scenario where the house has devalued, the bank would still only be able to collect against the assets of the LLC only (which is just the house) NOT against you.

But you have to avoid those types of banks which would require that you sign a personal guaranty.

>>10194706
Absolutely. I only spend 7-8k euro per year, and most of that goes for rent. I'd save a lot of money if I had my own house. You could save even more by going to a country with a low cost of living. 1 million USD would be 15k per year for 65 years, which I could easily do.

>>10195676
Is there something like this in the UK?

>>10195701
No idea, am a burger

>>10194756

>Die at 55 due to eating nothing but dollar store food, thus ensuring you'll never die in poverty

>>10195739
I don't know what's in a dollar store, but you can eat very cheaply and healthily with rice, beans, potatoes, eggs, vegetables, etc.

>>10195316
If you have a 1 million dollars, take enough of that to get a 1 million dollar loan and then buy property to rent (you can even buy the property with mortgages and have you tenants pay it off). Use the rest of your money on something else. Diversify. Get some more property to sell as airBnb, buy stocks, etc, etc. Putting the whole million into a big loan is foolhardy.

>>10195462
Real estate, which is just a proxy for land, is the number 1 asset in human history.

>>10195676
That sounds too easy to actually work. Mind you, I find the premise itself rather appealing, I'm only fudding to search for holes in the idea. Would it really be possible to get a $10 mil loan with only the properties themselves as collateral? Wouldn't you need to show a significant and stable income as well?

>>10195826
What's more, if you separate the 10 properties into 10 distinct LLCs you don't even have to expose the properties to each other for individual foreclosure actions.

The terms will really depend on the bank. Some banks will require you to guarantee the mortgage personally, basically ruining most aspects of the LLC. Some banks are more lenient. Having an income is certainly helpful for obtaining a mortgage. It would be difficult to obtain all 10MM at once. Having a good rental history with 2 or 3 properties may help in getting more. It really all depends.

But remember mortgages are juicy for banks. If you pay them mortgage interest for 5 years and default, they'll come and take the house, okay. But that basically means they got 5 free years of mortgage interest for a house they bought.

It's still a net win for them.

>>10195133
It's not as simple as you outlined, unfortunately.
In the UK at least.
You need to put at least 20 - 30% as a deposit for the amount that you want to borrow, in addition to having an income. So even if you have 1 million, most banks won't give you a loan, unless you have a large early income in addition to that.

>>10195938
I would think my real estate scenario is still attractive even if you can only buy 5MM worth of it with 1MM instead of 10MM

>>10196014
It will takes fucking decades before you start making a profit though.
You could just buy a million worth of property with your own money and make the money back from rent in 10 years, in addition to the property value being higher by that time. No bank needed.

>>10194813
This.

God damn you cheapass fuckers, what's the point of living life like that? You only have one of them and there's so much to indulge in out here. Living frugal is gay as hell, you make big money and you spend big money. It's the only way for me. One day you're going to die anyways, and best believe dollar store shit is killing your faster anyway. Enjoy your life. You Jews treat money like it's the end all be all and it will also keep you young forever.

>>10194706
in a shit hole country, yes

>>10195676
>you have to avoid those types of banks which would require that you sign a personal guaranty

So WHY would any bank ever allow you to hold the house under an LLC without signing a guaranty? Wouldn't they naturally be concerned about collecting whatever you owe them?

Also when you hold a home under an LLC, do you have to initially purchase it with that LLC (and so already have the mortgage worked out with the bank beforehand) or can you purchase it personally and then transfer to an LLC after (and I assume have to renegotiate mortgage if so)

>>10194756
Even if you live in the cheapest location, inflation is going to fuck you over.

>>10195739
Food price is not correlated with nutritional quality.

>>10196173
>you make big money and spend big money
Enjoy staying poor

>>10196184
You can transfer after the fact.

And to your other question, like any market, there is a market for mortgage terms from banks. SOME are more lenient

>>10196320
interesting, thanks for the info

>>10195676
lol no bank is gonna lend to a LLC without making you cosign unless you've already been in business for a while and the LLC already has other assets and stuff.

>>10196173
get a load of this good consumerist goy
conditioned just like THEY want you

>>10194706
Ya if you're good with money and invest it properly. I know a guy that purchased a shitty triplex for $400 grand. Everytime a tenant moved out, he moved in, renovated it and jacked up the prices. All in, he invested $500 grand when it was all said and done and the income from that rental property is $5000/month. So based on that investment he is pulling in $60k a year for minimal effort (still has to go fix some minor things here and there). So if you had a million, you'd still have $500k to purchase a house for cash, etc. Or buy another triplex and do the same.

So tl:dr
Yes you can retire if invested properly.

>>10194706
kek. fucking losers on this board don't know how to live without wasting all of their money. 1 mil is more than enough to retire on if you're not a mongoloid

>>10194985
>20 rental properties

Why not just buy a small apartment for a few 6plexes or something? Fewer properties to maintain.

>>10195244
Yea but I'm a tradesman and I'd feel like I'm being cucked paying someone to do something I can do for half the price. Plus if I'd be bored as fuck if I didn't have some work to do here and there.

>>10194891
Not really, you're like the guys that think if they won 1 million they would travel the world, buy lambos and fuck supermodels every day.
With that kind of money you have max two tries before running out of money.

>>10194706
Depends how old you are and what your lifestyle is

>>10194706
retirement is for boomers only

>>10196173
>You Jews treat money like it's the end all be all and it will also keep you young forever.

my favorite part about retard goyim like this is that after a lifetime of bad money management and degenerate hedonism they turn around and blame the jews that have been diligently saving for rainy days, a better future, and wealth to pass on

>>10194785
Houses and vehicles fall apart. People need to factor that in.

>>10194813
>I can't imagine eating dollar store food on the regular and feeling good about my day, Nothing beats a really good meal and you could be making top tier food for ~$10 a meal if you know how to cook right. The richer I get the more steaks I'm going to eat. I tend to measure wealth in good food tbqh
>$10 a meal
Dude you're doing it wrong. I can make meals that would get your taste buds to orgasm for $1-$3 a meal. I buy in bulk, shop around for discounts, and grow certain vegetables/herbs from seeds/water/dirt no pesticides. I know a barber that's a millionaire from being frugal like this, and it saves money and that man can cook.

>>10194706

2-2.5 mio is the magical number

yes i could do it. Make a few high % trades a year and youre set

>>10195701
Yeah, it's called LLC.
Almost every country in the world has limited liability companies.

>>10196173
>God damn you cheapass fuckers, what's the point of living life like that? You only have one of them and there's so much to indulge in out here. Living frugal is gay as hell, you make big money and you spend big money. It's the only way for me.
>t. Nigger

>>10196173
This is the same mentality as the lottery jackpot winners who blow through most of their winnings within a few years.

>>10196901
low IQ

It is in the current year but not enough after inflation.

>>10195502
That'd work in an actively managed ETF but there's no reason to think some manager can beat the market unless you are part of a massive hedge fund and can afford the best of the best,