What's the /biz/ theory on this? I work some pretty sharp

>>1472248

Sorry for the typos, on my phone

>>1472248
because $120k isn't really that much money, and they probably run through all of it on living expenses.

They'll be wealthy when they're older. People that make that much tend to work their way out of debt and into equity pretty quickly. But they're probably never going to be full on retired multimillionaires on a yacht.

those people are business owners, not managers.

>>1472248
>real estate investing
Getting started in real estate investing means exposing your personal assets to risk of total loss. You can (and some do) lose your house, your savings, your retirement accounts, your kid's college fund. No one starting in real estate gets a bank loan without giving a personal guarantee.

That's way more risk than most sane people are willing to take. Why risk going back to square zero when you can stay the course and retire as as a millionaire while providing a good life for your family?

Furthermore, being intelligent is not a guarantee of success in any venture, let alone real estate.

So, in short, both your premise and your logic are faulty.

>>1472248
http://www.shnugi.com/networth-percentile-calculator/

This calculator uses 2013 Census data for wealth, based on age range.

As you can see, for many people raw accumulation of wealth isn't their top priority. Debt isn't seen as bad, no one knows what compound interest is, no one trusts "the stock market", no one wants to flip houses post-2008, no one wants to put in 80 hour weeks as an entrepreneur.

So they'll get the match on a 401(k), retire with 200k + SS, then blow it all on casinos and assisted living.

> Why don't people like this ever seem to be wealthy?
You don't get wealthy by wasting money on status symbols.

> Granted, they have families.
Maybe you answered your own question.

>So why do intelligent people gravitate away from opportunities like this?
Risk aversion.

>These guys are older than me but they're highly educated, work really hard and always seem to get things done. They >probably make athe least 120k (upper management).

Again, risk aversion.

Also, this:
https://medium.com/@nntaled/how-to-legally-own-another-person-4145a1802bf6#.7wr210r90

As someone with a modicum of success in real estate: It's an awful business for most people to get into.

There's a huge demand for low prices, and for whatever reason people are especially allergic to paying for housing. That means there's a huge amount of shitty landlords. Bigger companies do all sorts of underhanded sleazeball tactics to get you off prime locations.

People get emotionally invested in individual properties, and they fail. People don't properly plan their financing ahead of time, leading to them thinking they have more cashflow than they really do, and winding up with properties "in the red" because they didn't budget for long term expenses, random damage, bad tenants, no tenants, market changes, etc. People have a bad year, or 3, and start to panic, getting out of the business, often selling very low because they are convinced the world is ending.

When managed very well, it's immensely profitable long term, but you need a ton of specialized knowledge, and the most profitable properties require legwork to find.

>>1472248
Because money isn't everything
In fact most people would find it boring as fuck as a profession, same as being a banker

>>1472288
Pfff

Not if you have the slightest clue about asset protection.

That being said both my houses and all 6 of my cars are in my name. For now.

>nevada corporation
>couple llcs
>start another underfunded pipe dream biz
>move 1 or more houses into other
>proceed to learn more of asset protection

Profit?


Sue me. I'm not worth shit Dron!

>>1472487
This. My shanty is left empty at 400 bucks a month while i learn to better screen tennants.

$400 a month loss is fine since i pay 0 interest and its all on principle.

This makes it a liability but incan always pull my money out and reinveat. So, its more like a savings account that loses on inflation and i dont give a shit because (muh $400) is a lot less risk then letting some tweekers fuck my shit up.

Plus its like 10 feet from my house and the last assclown i rented to played the fucking drums...

>>1473068
What is
>alter ego
>veil piercing
>substantive consolidation

Son, if I want your assets, I take your assets. Stop being 12.

Why is real estate the number one to go for asset on this board. It boggels my mind when the average joe with no background and education wants to be a real estate "investor".

You guys dont have much clue what you are doing and will get burned some place in time.

Investing in anything means you know what you are doing. Everything else is just gambling and you propably are better of trading cryptos.

>>1473230
>Why is real estate the number one to go for asset on this board.
People who pay rent always dream of being the one who collects the rent. Even though they have zero clue what it entails or the risks involved. They just assume the money magically rolls into their bank account.

>>1473230
Because people can understand it. It has a low barrier to entry. Relatively low failure rate.

For many people it happens to be by far the best option. Especially considering the alternative is pissing away money on a restaurant or some tech product pipe dream.

Sometimes it's not so much about winning big, but about not losing while still beating the market.

>>1473087
You can stop veil piercing by having a real CPA keep you from fucking stuff up. Takes effort to establish the foundation, but some stuff can't be punctured.

Even the stuff that can, can't be punctured cheaply. A good lawyer will crush anything that isn't done absolutely perfectly, and when it comes to demanding info on land trusts, good fucking luck getting anywhere.

>>1473230
Real estate is the long game, and if you can play the long game, it's incredibly profitable. It also lets you leverage assets better than damn near anything else, and has great tax incentives.

The problem is that most people can't play the long game. Right now I've got several properties that are "in the red" because of random damage. Fires, blown pipes, and that sort of thing. They will dig themselves out eventually, but it's going to take nearly a decade.

>>1473230

I plan on buying a duplex or a multiplex in my local Texas market near Dallas to start. Tons of businesses are moving here and the pricing are only going to go up. Like another guy said, it's a long game. I have a finance degree and I work as a business analyst so I'd say I have pretty good odds compared to the average Joe.