Unless you know what you are doing your money is much better off being invested locally with hands on investments such as real estate. I will likely steer clear of the stock market all together unless something drastic changes...
The best investments are in mutual funds. They have a history of always performing positively with good return. 7%-11% on average. I made 24% last year. Problem right now with the market today is it is a false market being pumped up by the feds. $80 billion a month. As unemployment goes down, they are set to lower that amount. I tend to wait for a crash before I increase my contributions into my 401/roth. There is a crash coming soon imo. Sent from my SAMSUNG-SGH-I317 using Tapatalk
I've made some money in weed stocks recently. and Bitcoin is down to $500 now, might jump on that if it drops some more
Just don't buy slumlord housing then. Rental market varies from meth trailers up to people with Doctorates. The lower the rent (ie slummier housing) the higher the cash flow. The margins are much tighter on higher level housing but your investment typically appreciates in value, your tenants are pretty easy to deal with, and the principal on the loan is being paid off by someone else. If you have the know how to do minor repairs and the time to collect rent/etc you can maintain these nicer houses for 15 years making minimal cash up front ($75-100/month if you are lucky) but 15 years later you own a house you paid $0 for that has appreciated in value along the way and is now generating $1000+ in rent/mo with no payment due on it from your end. At least in the South Central KY housing market that is... It's more long term investing the way I will approach it since my job will pay well enough that I won't need the income up front, just income to fall back on later when I no longer work (mirroring what my parents have built up thus far). I too know people making BANK slumming out housing that should likely be condemned... but whatever you sink in the housing is for the most part lost in the end so you better be cash flowing at an extremely high rate to deal with the loss in value and major headaches with lowlife tenants. I don't have it in me to put up with that mess...
There's more risk involved here than with mutual funds. Everyone likes to talk about how dave ramsey went bankrupt, this is exactly how it happened. Rental property is a good investment if you have the capital to invest. If your house is paid for, then it may be a risk worth taking. Sent from my SAMSUNG-SGH-I317 using Tapatalk
For sure. There are no fool proof plans to getting rich. With VERY few exceptions, the economy operates on a high risk high reward basis. The lower risk you take, the lower the possible reward available to you. As you said though, it takes some capital to get the snowball rolling down hill in real estate. Most all banks are requiring 20% down, so on an 80K dollar house, you need to come up with $16k to purchase it. A few years later you should have enough equity to buy another or two. then 3-4 more years after that. You could also take a loan against your current house to front the 20% as you suggested. Dave Ramsey strikes me as the type who tried too much too quickly in real estate. I doubt very seriously he is the type who lived across town from his rentals, collected rent in person, and was the one who painted, cleaned, replaced flooring between tenants or fixed the linky sink at 8pm on a Wednesday... The only way for the model to be darn near fool proof you have to be handy with a wrench and willing to put in the work yourself. Calling a plumber/electrician every time something goes wrong eats away any profit margin you could possibly have with higher level rentals. It takes a lot of work for sure (work many consider themselves above doing)... but you can have $100k in income annually sitting on over $1mil in property that you paid $0 for in 20 years if you do it correctly. I have seen it first hand several times and will be joining the crowd in a few short years.
He CLAIMS he did that stuff getting started. His lenders called in his loans and he was done. Not sure of all the specifics. Just did a little research on the loans of rental properties and due to the risk involved, the rates are higher than home loans. You either have to buy points or take a higher rate. It is advised to put 25% down on rentals to offset some of this. You would be well advised to invest in mutual funds NOW. If you were investing an average car payment of $400/month, that would be atleast 1 million by the time you retire and probably more. 400 may be alot now but you can start lower and increase as you get older. Imo, regardless of other investments, mutual funds should be a part of your retirement plans. Sent from my SAMSUNG-SGH-I317 using Tapatalk
No kidding, even at full production (all current facilities at 24/7 never shutting down).. the current production would be ate up by 20 guys buying 10 bricks/day in each state if it were distributed evenly among the states. There are plenty of people buying every scrap they can currently so it likely won't improve for the next couple years. I remember just 3 short years ago I was buying 500 round bricks for $16. Now ammo is bringing $50/brick when you can even find it.
I used to buy a brick whenever they were on sale at the feed store. I'd buy cci blazer bricks when they were $18.00. (and I thought that was a bit expensive) We still have some Winchester bricks from walmart that were $9.60 each. Those were the days! A rep from Remington was speaking at K's workplace. He said walmart wanted to buy *every* .22lr they could produce. Walmart would still be sold out on a regular basis.
