My Regards to the community, I am working in a private firm and really want to secure my future by doing some investments as I can’t be so dependent on my current job forever for all my basic needs. . Can somebody help me, to make me decide that where should I invest my money to get long term profits?
Are real estate investments really beneficial?
- Thread starter ruminn
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- Oct 24, 2007
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Really open ended and all-encompassing question. My advice would be to attend a `Quickstart` and start reading up on the REIN system. It will get you off on the right path and help you decide if real estate is right for you!
QUOTE (ruminn @ Jul 13 2008, 11:06 PM) My Regards to the community, I am working in a private firm and really want to secure my future by doing some investments as I can`t be so dependent on my current job forever for all my basic needs. . Can somebody help me, to make me decide that where should I invest my money to get long term profits?
QUOTE (ruminn @ Jul 13 2008, 11:06 PM) My Regards to the community, I am working in a private firm and really want to secure my future by doing some investments as I can`t be so dependent on my current job forever for all my basic needs. . Can somebody help me, to make me decide that where should I invest my money to get long term profits?
- Joined
- Aug 30, 2007
- Messages
- 175
Hi,
I will not advise you but share some of my own experience in investing. Real Estate can be an excellent way to build long term wealth to give you choices and the freedom to make them. It can also be a time draining subject with many pitfalls along the way if you do not follow a system or get into bed with someone you trust.
The bottom line is it comes down to what you want long term. What is your personal plan in say 5 years? If for example you plan to get out of your job in that time then perhaps real estate could be for you or perhaps you will stay where you are and would like to invest in real estate without having to put your time in to either learn the industry or manage property.
Each will give you a different path and strategy you could take.
If you do not not have the time to invest yourself but would like to learn why not invest with a REIN members who does Joint Ventures and this way you can get into the market and see if you like it and then in the future you may do it yourself 100%
I will not advise you but share some of my own experience in investing. Real Estate can be an excellent way to build long term wealth to give you choices and the freedom to make them. It can also be a time draining subject with many pitfalls along the way if you do not follow a system or get into bed with someone you trust.
The bottom line is it comes down to what you want long term. What is your personal plan in say 5 years? If for example you plan to get out of your job in that time then perhaps real estate could be for you or perhaps you will stay where you are and would like to invest in real estate without having to put your time in to either learn the industry or manage property.
Each will give you a different path and strategy you could take.
If you do not not have the time to invest yourself but would like to learn why not invest with a REIN members who does Joint Ventures and this way you can get into the market and see if you like it and then in the future you may do it yourself 100%
- Joined
- Aug 30, 2007
- Messages
- 13,879
QUOTE (ruminn @ Jul 13 2008, 11:06 PM) My Regards to the community, I am working in a private firm and really want to secure my future by doing some investments as I can’t be so dependent on my current job forever for all my basic needs. . Can somebody help me, to make me decide that where should I invest my money to get long term profits?many many many options to invest: bonds, GICs, gold, ETFs, shares, mutual funds, real estate (at least 17 sub-catelgories like hotels, REITs, JVs, public companies, builders, shopping centres, land ..) , oil wells, campgrounds, oceanliners, oil pipelines, fast food restaurants, paving companies .. many many options to get rich or lose your shirt if done improperly !
There are really only 5 ways to make money .. and you can do all 5 in time ..
but you have to take them all seriously !
1) You work
This is the most common way to start. You work, i.e. you exchange your time for money. The more time you give, the more money you get. A pretty linear relationship. Proven though through centuries !
Many people fail at that stage already. They don`t take it seriously. They show up late. They chat with friends online. They do personal business on the side. They don`t understand the business they`re in. They don`t give 110%. Maybe 50% or 85% .. or 35%.
Yes, you can hide for a few days or a few weeks. Most employers realize after a while who is an excellent performer and who isn`t. If you work hard at your job, you get ahead. Give the extra 10% or the extra 4-5 hours every week. Read up on your industry. Go to industry conferences. Seek a mentor. You get promoted. You get more $s per hour. If you have more skills, you get more $s. So, yes, formal and informal education helps. If you work hard, and get more $s than you spend, you can save some $s. Hence:
2) You invest your own $s.
You buy real estate or mutual funds or stocks or GICs or bonds or whatever seems to fit your risk tolerance, skills and timeline. Like 1) it takes time to find out what a good investment looks like. Take it seriously. This investment could be more passive (say a stock or mutual fund) or more active (say real estate or active stock trading)
3) You invest other people`s money.
Once you`ve mastered 2) you have the right to ask for OPM (other people`s money) such as JV partners or money partners or mortgages or lines-of-credit to invest, for example in real estate: Usually a combination of your own time, your own money and OPM (mortgage, LOC, JV money or all 3). You borrow money at, say 6%, and invest it for 12% to 150% ! This assume a modest degree of risk as you must pay the rate your agreed with OPM but invest at a more uncertain, yet frequently much higher rate. This assumes 1) and 2) is in ship-shape !
4) You use other people`s time / employ other people
You have a small or large business where you pay people a wage/salary/hourly wage and then use their time to make money for yourself. This works usually only if you`re good at 1) 2) and 3) as usually your have to work hard too to lead by example and have some (of your own or other folks`) money at risk.
5) You have Intellectual property (IP)
Intellectual property or royalties make money for you once you have created them: maybe you have written a book. Maybe you have written lyrics or songs or music. Maybe you have painted a picture and it is copied widely for a fee. Maybe you have invented a name and copyrighted it. Maybe you have a patent or a system that can be used for a fee. Elton John makes money in his sleep today - but he was very good at 1) in the beginning of his career.
So, there you have it in a nut shell: 5 ways to make money. Are you aiming to fire on 5 cylinders ? Or is it only 1/2 ? Try harder .. or try different ways .. but usually they go in that order of: 1, 2, 3, 4 5 ..
Did I forget something ? Any insights from the REIN blog here or the world at large ?
Anyone out there with success in 3) or 4) or 5) and who did not work hard at 1) or 2) first ?
Fire away !
There are really only 5 ways to make money .. and you can do all 5 in time ..
but you have to take them all seriously !
1) You work
This is the most common way to start. You work, i.e. you exchange your time for money. The more time you give, the more money you get. A pretty linear relationship. Proven though through centuries !
Many people fail at that stage already. They don`t take it seriously. They show up late. They chat with friends online. They do personal business on the side. They don`t understand the business they`re in. They don`t give 110%. Maybe 50% or 85% .. or 35%.
Yes, you can hide for a few days or a few weeks. Most employers realize after a while who is an excellent performer and who isn`t. If you work hard at your job, you get ahead. Give the extra 10% or the extra 4-5 hours every week. Read up on your industry. Go to industry conferences. Seek a mentor. You get promoted. You get more $s per hour. If you have more skills, you get more $s. So, yes, formal and informal education helps. If you work hard, and get more $s than you spend, you can save some $s. Hence:
2) You invest your own $s.
You buy real estate or mutual funds or stocks or GICs or bonds or whatever seems to fit your risk tolerance, skills and timeline. Like 1) it takes time to find out what a good investment looks like. Take it seriously. This investment could be more passive (say a stock or mutual fund) or more active (say real estate or active stock trading)
3) You invest other people`s money.
Once you`ve mastered 2) you have the right to ask for OPM (other people`s money) such as JV partners or money partners or mortgages or lines-of-credit to invest, for example in real estate: Usually a combination of your own time, your own money and OPM (mortgage, LOC, JV money or all 3). You borrow money at, say 6%, and invest it for 12% to 150% ! This assume a modest degree of risk as you must pay the rate your agreed with OPM but invest at a more uncertain, yet frequently much higher rate. This assumes 1) and 2) is in ship-shape !
4) You use other people`s time / employ other people
You have a small or large business where you pay people a wage/salary/hourly wage and then use their time to make money for yourself. This works usually only if you`re good at 1) 2) and 3) as usually your have to work hard too to lead by example and have some (of your own or other folks`) money at risk.
5) You have Intellectual property (IP)
Intellectual property or royalties make money for you once you have created them: maybe you have written a book. Maybe you have written lyrics or songs or music. Maybe you have painted a picture and it is copied widely for a fee. Maybe you have invented a name and copyrighted it. Maybe you have a patent or a system that can be used for a fee. Elton John makes money in his sleep today - but he was very good at 1) in the beginning of his career.
So, there you have it in a nut shell: 5 ways to make money. Are you aiming to fire on 5 cylinders ? Or is it only 1/2 ? Try harder .. or try different ways .. but usually they go in that order of: 1, 2, 3, 4 5 ..
Did I forget something ? Any insights from the REIN blog here or the world at large ?
Anyone out there with success in 3) or 4) or 5) and who did not work hard at 1) or 2) first ?
Fire away !
- Joined
- Oct 23, 2007
- Messages
- 241
For me real estate has afforded me the opportunity to have the money work hard for me instead of me going out to work for the money. However, I do have one of those jobs where it`s a lot of fun to go to work. But it`s really a dangerous job and when I finally get fed up with it all, I will comfortable retire and reap the rewards & benefits of a passive income coming in so that I may do other things. SO I am working hard at my job & equally working hard building my real estate portfolio, but for me it`s not really work. It`s something I am quite passionate about and really enjoy doing. I Like having fun, making money, and making a difference. And I found that real estate investing offers me that opportunity as well... I hope that helps.
- Joined
- Sep 2, 2007
- Messages
- 12,690
QUOTE (ruminn @ Jul 13 2008, 11:06 PM) My Regards to the community, I am working in a private firm and really want to secure my future by doing some investments as I can`t be so dependent on my current job forever for all my basic needs. Can somebody help me, to make me decide that where should I invest my money to get long term profits?
The best solution I have ever found is to increase your financial literacy in the area you are interested in. It could be paper assets (stocks, bonds, options, futures) , real estate or businesses which include the internet. Surround yourself with like minded people who will assist you in your endeavor and always ask the magic question: What percentage of your income comes from your investments versus your job. That alone will tell you whether the person you are speaking with can help you move forward.
Build your network and expand your knowledge and then you will be able to answer your own questions about investing. It takes time but the journey is worth it!
The best solution I have ever found is to increase your financial literacy in the area you are interested in. It could be paper assets (stocks, bonds, options, futures) , real estate or businesses which include the internet. Surround yourself with like minded people who will assist you in your endeavor and always ask the magic question: What percentage of your income comes from your investments versus your job. That alone will tell you whether the person you are speaking with can help you move forward.
Build your network and expand your knowledge and then you will be able to answer your own questions about investing. It takes time but the journey is worth it!
- Joined
- Nov 15, 2008
- Messages
- 1
I think that the best option for you would be to go for real estate investing. It will be a profitable catch for you with the right realtors handling your investments. You need to select the right people for the job. There are many realtors that can help you to have a good investment in the Minnesota real estate.
- Joined
- Oct 22, 2007
- Messages
- 1,188
I think before starting to invest you have to know yourself. Your strengths and your weakness and once you start investing you will learn a whole lot more about yourself. Things such as patience, perseverance, impulsiveness, risk tolerance and many others.
As an investor, no matter what you invest in, you have to do one thing for sure: live below your means. That way you can build your investment funds. Secondly, you have to accept the simple seeming rule that `Cash flow is number one`, because as long as you can pay the bills you can sell your investments on your own terms rather than being forced to sell
When working with other people`s money, you are often not in control. Those people want their money back especially during bad times or just when you need it the most. Also, when you make money for them that is considered normal, but when you lose you`re truly in the dog house. As you can see, I personally do not like other people`s money.
Leverage, borrowed money, is a two edged sword, you can double your profits or more; you can also get wiped out in the blink of an eye. The only times I would consider using borrowed money (very conservatively) is in your own business or in real estate (which sometimes can be the same). My preference is to use my own money.
The next big question you have to ask your self is what is your goal in life and how will your investments get you there. Goals can be:
I want to retire on Belize; bask in the sun and play golf from age 45 until the end of my life.
or:
I want to have the freedom to do whatever I want - having my own business, take any job I please, invest, work for charity, teach real estate courses, or spend hours on forums such as this one.
Now that you have a goal, you can estimate how much money you`ll need to live your dream life. How much you`ll be needing may be surprisingly little or in the millions. I estimate for most people to retire at age 65, they`ll need to own a home that has been paid off and say a million dollars investments. Assuming inflation of 3% and a real return on investment of 5% that should give such a person about $50,000 per year (inflation protected) to live off plus Canada Pension and Old Age security.
So it is all in the eyes of the beholder.
Finally you`ll have to figure out how you want to invest: Real Estate, Paper Securities, Art, your own business that provides money without you being there, etc. Your field(s) of investment depends a lot on your own inclinations. Some only invest in real estate, some only in stocks or in the own business (es), some invest in a combination of these assets.
To decide what to invest in, you will have to learn about the various fields of investment. Often, that learning may mean a lot of tries and errors (including losses). REIN is great to learn about real estate investing, The Canadian Share Owners Association is great for learning to invest in stocks. Also, there is an endless supply of books on every possible investment topic and how to get rich. Read them while you save your investment money and get ready for the big move: your first investment - start small!
Hope this helps.
As an investor, no matter what you invest in, you have to do one thing for sure: live below your means. That way you can build your investment funds. Secondly, you have to accept the simple seeming rule that `Cash flow is number one`, because as long as you can pay the bills you can sell your investments on your own terms rather than being forced to sell
When working with other people`s money, you are often not in control. Those people want their money back especially during bad times or just when you need it the most. Also, when you make money for them that is considered normal, but when you lose you`re truly in the dog house. As you can see, I personally do not like other people`s money.
Leverage, borrowed money, is a two edged sword, you can double your profits or more; you can also get wiped out in the blink of an eye. The only times I would consider using borrowed money (very conservatively) is in your own business or in real estate (which sometimes can be the same). My preference is to use my own money.
The next big question you have to ask your self is what is your goal in life and how will your investments get you there. Goals can be:
I want to retire on Belize; bask in the sun and play golf from age 45 until the end of my life.
or:
I want to have the freedom to do whatever I want - having my own business, take any job I please, invest, work for charity, teach real estate courses, or spend hours on forums such as this one.
Now that you have a goal, you can estimate how much money you`ll need to live your dream life. How much you`ll be needing may be surprisingly little or in the millions. I estimate for most people to retire at age 65, they`ll need to own a home that has been paid off and say a million dollars investments. Assuming inflation of 3% and a real return on investment of 5% that should give such a person about $50,000 per year (inflation protected) to live off plus Canada Pension and Old Age security.
So it is all in the eyes of the beholder.
Finally you`ll have to figure out how you want to invest: Real Estate, Paper Securities, Art, your own business that provides money without you being there, etc. Your field(s) of investment depends a lot on your own inclinations. Some only invest in real estate, some only in stocks or in the own business (es), some invest in a combination of these assets.
To decide what to invest in, you will have to learn about the various fields of investment. Often, that learning may mean a lot of tries and errors (including losses). REIN is great to learn about real estate investing, The Canadian Share Owners Association is great for learning to invest in stocks. Also, there is an endless supply of books on every possible investment topic and how to get rich. Read them while you save your investment money and get ready for the big move: your first investment - start small!
Hope this helps.