How to get rich?

Joe B: How to get rich?
I would like to know what to invest in to get rich? I am 30 years old and would like to know what is better stocks or real state? I would think real estate is better. If so where is a good area to buy at? I was thinking of buying a house and renting it out. Thanks for answering my question.

Answers and Views:

Answer by Aiirracuhh
Once you find out, let me know.

Answer by O-Qua Tangin Wann
Let me know when you figure it out

Answer by fakeplastictrees00
die trying

Answer by salvador l
good question i am also seeking information on that,,

Answer by shop2early
Real Estate. Buying a home and renting it out is a good thing. Try to find a good location, where there is little or no crime. Good Luck with that.

Answer by Moondog
Tough business. I bought 5 rental properties and the happiest day in my life was when I got rid of the last one. If you are extremely handy, stable in your location and willing to put up with enormous amounts of c&%p from tenents and then able to be tough on them when thye don’t pay and screw up your places then go for it.

Answer by sandman
Recently saw numbers advising against paying down mortgage early,rather invest in the market,tax deferred,and cash out at retirement to pay off mort.The days of flipping houses are over.Possibly, managing several rentals,letting someone else pay the mortgages essentially,would be lucrative,but prices are high,this would take alot of cash.and I believe any decrease in taxes thru depreciation must be made up when you sell.I have invested heavily in health stocks,predicting large spending by baby boomers to maintain current lifestyles.Returns are in the 10-12% range currently

Answer by billcox71
Don’t buy in Michigan.Buying a house is supposed to be a good investment.I bought a house four years ago,put $ 15,000.00 into it and it’s in a good neighborhood.However,due to the economy I have lost equity.I paid $ 128,500.00,I owe $ 123,000.00 and will be lucky to get $ 115,000.00……that’s prettys sad when buying a house is a bad investment.Michigan sucks these days.

Answer by Jim F
The key to getting rich is doing something you love. If flipping houses, finding deals, and renting them out is something you love to do, study up on it until you can study no more… then the money will follow.

Getting rich requires a lot of hard work. Only 1% of people get rich quick, and that’s through luck.

Answer by njss
How to get rich? We all want to know ! hindsight is a wonderful thing you can be saddened by letting a bargain get away but more often you are relieved that you didn’t buy a problem. Its a lot of work and scary to say the least and after all is said and done your still poor. Real estate seems to be a good thing there have been slumps but things have recovered and continue to rise and rise. However if you buy for an investment there are problems you can meet some of the most incredible tenants; sure there are good ones but if you hold the property for a decade you will wonder! Do you need the extra stress in your life or does a profit make it all worth while? Shares are another worry should you sell should you buy more and so it goes ! However I don’t want to slow you down do your homework and research— buy what you can afford. Your own house is a good starting point. Try and reduce the mortgage as much as you can whenever you can. You still need holidays and some time out just keep it low cost don’t over commit also if you have a partner you need to agree on how your income is spent so good luck and go to it time is a wasting…….

Answer by Erizu
invest in PRULIFE UK will double youre money in 7 years but there is a limit per person so have a policy for your entire family. say a family of 5,1 million each at 15% in 7 years youl be a 10 millionare.

Answer by Eric Fernwood
I am a Realtor in Las Vegas and my wife is a serious investor in the stock market. In the past, I’ve owned several rental properties and made very good money and my wife makes very good money investing. So, either is possible. The essential element to being successful in anything is to really know the market space in which you are investing and be highly consistent. You will not be able to make a couple of decisions and get rich; it’s a long term prospect.

It also requires money whether you are in the stock market or the real estate market. If you are considering buying rental property, you need an entry plan, a growth plan and an exit plan (read about 131 exchanges). Are you good at handyman work or you can use a property manager? Do you want to buy homes which are in poor condition and fix them up and resell them? You can make money doing many things – if you are good at it. For example, you can make money flipping homes if you do things right. But making money consistently is not an accident or luck. Consistently making money is about having a well thought out plan and consistently executing it. Here is how a few of my clients make money by buying distressed properties, fixing them up and reselling them. I offer this not as a recommendation to you (since I do not know where you live or what your financial ability or skills are) but what a high level game plan would look like for flipping homes.

The key to being successful flipping properties is finding the right property at the right price in the right area. The best way to know if you can make money flipping is to start at the eventual sales price and work backwards. First, determine what price homes are still selling. Let’s say for example that homes in XXX area selling for $ 250,000 are still selling well. Then, you need to locate a property in that area such that once you buy the property, rehab the property and sell the property for $ 250,000 you still made a profit. I am oversimplifying the elements below but hopefully the following will give you an idea.

Eventual Sale Price: $ 250,000 – be pessimistic as to what the home will sell for. This is a soft market.

Now subtract all the cost elements:

Profit: $ 20,000

Cost to Sell property: Use 7% or 8% (agent charges, state taxes, etc.) or .07 x $ 250,000 = $ 17,500

Improvement Cost. This will be different for each home. Use $ 40,000 as a typical number.

Holding costs (it takes time to repair a home and to sell the home and you have to make the payments during this time): $ 10,000

Acquisition costs: Use 3% of the purchase price or about $ 5,000

$ 250,000 – $ 20,000 – $ 17,500 – $ 40,000 – $ 10,000 – $ 5,000 = $ 160,000

Thus, the MAXIMUM you can pay for the property is about $ 160,000. And, this has to be a property that once restored will sell for $ 250,000.

When you look at all the costs I listed above, the only one you can really control is the improvement cost. It is critical that you do not over rehab the home. If homes in the area with 5 year old stoves sell well, you do not need to install a new stove; a used stove that looks nice and is in good repair is the right answer.

In summary, whether you decide to do real estate or stocks, you need to know all aspects of your market. Also, accept that there are no “get rich quick schemes”. Take the time to develop a plan that can be successful and execute on it. When it does not work well, fix the plan and try again. You have a lot to learn in order to consistently make money but hundreds of thousands of people do it and so can you.

Eric Fernwood
[email protected]

Answer by skiingstowe
Hi,
Real estate is one way to get “rich”, but beware you’ll earn every penny if you get into rental property. Most every person that has “made it” has worked very hard to get where they are at. There is no get rich scheme. It is a good rule of thumb to get properties that have at least four units. This way if one or more units are not rented you can still pay the bills. It’s like having an insurance policy. Also, it’s good to know that most of the time you’ll have only 80% of you units rented at any given time….don’t be fooled into thinking they’ll rent at 100%. There are also problems with evictions and heavy legal fees to get deadbeat tenants out. Stocks aren’t bad as an investment, but you need to do you home work and research the company you’re investing in. My suggestion is to have both if you can afford it. A good book to read is Multiple Streams of Income. This book will give you a good idea how to get “rich” Good luck!

Answer by Mark T
Are people REALLY not sure which perform better??

Look at value of stocks over last 5 years, 10 years, 15 years and 20 years.

Now do the same with property.

Please explain to me why the results do not stand out like racing dog’s bollox for all to see?

Good place to buy? Bulgaria is likely to be enjoying extreme growth for a few more years to come – as are other “new” European members.

Another thing – Leverage.

Let us say you had £10,000 to invest. Let us also be VERY generous and say that stock would increase 10% – and be mean and say house price would only increase 5%.

You find a house you want for £100,000, pay £10,000 as a deposit and get a tenent in to pay your interest only mortgage payments for the next year. In practice you would find a house below market value and use that so you don’t even need a deposit (back2back mortgage) but we will ignore that.

OR you buy £10,000 worth of stock.

A year goes by.

If you went the stock route, you now have £11,000 (ignoring fees and tax etc). Not bad, you are 10% up on your initial investment. If you sell up, you walk out with £11,000 less tax. Congratulations, you are now £1,000 up on the deal – assuming a full 10% rise of the stock market.

If you had gone the property route, the house is now worth £105,000, and has a mortgage of £90,000. You sell up and (again ignoring fees/tax) walk away with £15,000 – a 50% return on your investment – even though we only allowed for a 5% increase in property values.

Of course, in practice, the stock market will be doing well to claim 5% these days – but MANY areas can realsitically get 10% on property.

If that had been the case, then the figures would have been £500 profit on the stock market and £10,000 profit on the property. I just wanted to prove tat the figures worked out even when you stack things in favour of stocks and against property.

Answer by timboson2003
Well after some study it seems it pretty much breaks down into 3 categories. Amongst the first being real estate. Secondly, self employment and last the stock market. Real estate appears to be one of the fastest ways to wealth. However, real estate isn’t just comprised of physical properties. you have real estate stocks and other vehicles. In building your portfolio to wealth be sure and include tax deeds and tax liens. these investments offer fairly close to a guaranteed return in some areas as close to 20% or you get the property at hand. If interested there are some informative links about these categories and accumulating wealth.

Answer by ryanforinvestments
As the sales manager for a national real estate investment company, the majority of the business we are doing is in parts of Texas and North Carolina.
Last week the Wall Street Journal had an article talking about the national trend of real estate as mentioned these areas among others as areas that were appreciating.
Check out our website for properties in these areas

www.eliteteaminvestments.com

Email me with any questions you might have.

Answer by Closer
This guy above me is really good. He made me some money last year and it was surprisingly easy.

You should check him out.

Thank you – Good Luck