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Getting from mediocre to rich

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>built a house at 24
>cost 330k minus the 45k deposit
>275k mortgage now down to 205k 3 years later
>had the house evaluated last week and the bank valued it at 340k (fire sale so probably 350 if I put it on the market)
>have about 10k of silver and gold bullion in my safe

So that's where I'm at at the moment. My job pays 80k a year and I get $500 a month tax free from renting out one of my rooms. My job is secure and I'll probably be with company for the next decade but the highest salary I'll likely ever get to is about 100k unless I become an area manager. I don't wanna be a wage slave forever so I want advice on how I can make the next step towards eventually making a living predominantly from realestate.
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>>1753587

If you want to make money amass capital to acquire new properties, then rent them out or flip them for a profit. Both of these will probably turn into full time jobs if you want to succeed.

Seriously though if you're not going to get a raise for a decade why aren't you applying for other jobs elsewhere?
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>>1753605
this.. i think you can use 50% of the property value for another mortgage.. rent this one out.. rinse and repeat. keep buying property and renting them out..
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>>1753587
>330 minus 45
>275k mortgage

55k ??
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>>1753587
OP you're in a similar position to me. I'm looking at a 2 flat in a metro area for around 300k, I have 50k in cash to put toward the house. Will likely rent out a unit to a friend that won't fuck the place up, and live in the other. I plan on putting it back on market ASAP and using the increased value as my liquid investment capital for a 2nd and 3rd property.

Not sure if I'm just better off investing directly with the 50k.
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>>1753617
Typo. Went down to 285 not 275
>>1753605
It's not that I won't get another pay rise over the decade it's just that 100k is the highest salary that the company has without me moving into an executive position. Which is nit something I'm banking on because there are 9 other people in the country with my title and when the guy above us retires or quits, everyone will go for that job and there are more suitable candidates than me for that role. I'm already the youngest staff member in my role, there is no way I'd ever be considered for the area/general mangers role
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>>1753625
where
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>>1753626
You sound well accomplished all ready stop selling yourself short. Some people want eager younger minds
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How did your house not appreciate at all
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>>1753867
Being built in a brand new estate without any houses being sold for the first 2 years made it hard to gauge increase in value I suppose. It's in a developing suburb so it's likely that it will gain momentum faster as the years pass. In the few years Iv lived there Iv seen some great changes in shops and an upgrade to the hospital just around the corner has been approved to go ahead this year.
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>>1753587
Why would you pay down your mortgage with such cheap interest rates? Why is this a hard concept for people to grasp?
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>>1755434

To drop PMI.

Also how did op get a construction loan with less than 20 percent down?

Also, three household fag reporting in. Still renting out extra rooms of my primary, looking at a 4th before 30 to quit renting rooms out and live alone.
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>>1755466
I live in Australia and building is no different to buying as far as loans are concerned. Paid a little extra in mortgage insurance but not a huge amount
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>>1753627
At those prices I'm guessing Aleppo.
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>>1755510
Oh wow. Sorry made the ignorant assumption you were from the United States. Good work man.
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>>1755519
Chicago.

Housing prices here are cheap but the market is surprisingly strong depending on neighborhood.

Went and looked at a place today that needed about 50k in work done to it and was about 100k overpriced for the area and market.

Was a foreclosure and the bank is going to sit on it for months in all likelyhood.
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>>1753587
This OP. Passive income might make you retire as a millionaire but the only way to get truly rich is to start your own company.
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>>1755528
I don't know if I have the balls for something risky like that. I met to go backwards as far as my wealth is concerned and I just don't know if I could risk it all on something like that. Ultimately id love to own a bunch of properties early enough and then just have a decent wage from them and even still work full time until I'm 40. Id love to be truely rich as you put it but I'd be happy with just being what most people would considered rich. Be able to travel over seas each year and not have to worry about saving up and budgeting to do so. I know that that's not what this board calls rich but I'm trying to stay realistic
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>>1755558
That's ok, I consider option two to be far more sensible if you don't have some major inheritance or something.

>and even still work full time until I'm 40

That will be hard, you would need at least 1.5m in investments to maintain your salary at that point. Of course that equation changes when you still work part time, but not many professions at that wage level are suited for part time employment.
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>>1755560
Thanks to exponential growth and potential pay rises I would like to think that 1.5 mil is achievable in 13 years
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>>1755595
Exponential growth on what though? 10k in rare metals won't give you any serious returns and a large part of you salary will still be going into your home which as an investment nets you a meagre 6000 bucks a year.

A quick and dirty calculation gives me about 600k in net worth in 40 years assuming very modest living expenses (including house maintenance, car payments, insurance ect.) and a low tax rate.

I recon you would need about 25 years to maintain your salary at that point through passive income.
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>>1755768
*A quick and dirty calculation gives me about 600k in net worth in 13 years

Don't know why I wrote 40 there
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>>1755771
wow you are a faggot
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Sell that pos and rent a luxury condo
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>>1753587
>needing to be this rich
Why?
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>>1757392
th..thanks?
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>>1753587
the contractor that built your house grossed a third of a million on just that one job. He probably has lots of jobs like that.

you wanna make money, look at investing in the sorts of business you pay lots of money to.

building contractors for instance....
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>>1753611
this hasnt been true since 2008, because thats what caused 2008
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>>1753625
why do you assume the value will increase? do you know something we dont?
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>>1753587
get out of debt first. Then plan.
DOn't sell your wealth (house) which is solid wealth for potential air wealth which you don't even have a guaranteed return like the stock market.
In your case, its best to capitalize from the higher value of your home in the future, as you will have to still buy and pay for a home elsewhere and you won't get 500$/month tax free without it.
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>>1753587
Stop creating this thread.
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>>1753587
The way people make money from real estate (like actual money) is mainly due to the extensive resources the managing company (or individual) has access to. They can streamline the costs to get the best rates, they have good relationships with creditors, and they have the experience to identify opportunities.

This is typically why I advise ordinary people to avoid real estate. It's hard, stressful, and will require your undivided attention.

This whole idea of buying a house with credit and then paying it off using the rent money from the tenants is a complete farce. It just doesn't work like that in the real world. You encounter problems with the property, problems with the tenants, problems with the town/city, and so on.

Imagine what happens when you encounter your first tenant that doesn't feel like paying his rent anymore. Do you know how involved the eviction process it? What happens when some nigger decides you discriminated against him and some lawyer takes on his case pro-bono? Have fun paying $35 every 6 minutes for a competent attorney to defend you.

It's hard and I am sure there are people that have built a true real estate empire - but it's simply an idea not worth pursuing for the majority of people. It works when you have a lot of properties with efficient management. That is the only time.

With that said, commercial property might be a different story. I haven't looked into it.
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>>1753587
Do exactly what you did.

But instead of your house build duplexes.

If successful build 4 plexes.

For the average to mid toer investor 4 plexes are the least risk. And due to lack of extra walls. The most cost effective if u dont want to build apartments.

Keep it up anon.

Start studyibg tax and invesring law. Get some personal finance books.

Wait for me on the other side.
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>>1753587
Wait. You could remortgage your house and put in a modular home smewhere and rent it out.
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>>1753611
I thought it was 80%?
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>>1755108
Fuck. ...op.

Sell your house for ~350k.

Buy descent house for ~150k. Put 20% down on it. 30k.

Have 320k left over.

Get bank loan for descent or new duplex for 200k. Put 20% down or so on nice ass duplex = 40k.

Have 280k left over. Sit on it and study and research for 6 months.

Assuming no major problems and you are confident. Do it again. Also, refinance your house and duplex towards the next duplex or 4 plex or wtf ever.

Have 200k buffer and get rich doing this.

House shop in your sowntime and throw offers around.

Make 1 mill per year.

Retire.

Wait 6 months.

Pay cash for half million dollar house and die rich.>>1753867
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>>1758148

this guy is mostly speaking truth.

however, there simply arent many other good avenues for "passive" wealth

my parents own a few properties. they. fucking. hate. it.

almost impossible to evict bad tenants.
have to cave into retarded tenant demands just to avoid lawyer fees.

and this is even with the #1 rule in place, no niggers.

its not ez. its not ez. but its yours
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>>1758548
not everyone lives in some shithole where land has no value. where i am, in order to build a multi-unit in an area where it would be worth to build it, i.e. rent is high enough, i'd have to pay 100k+ for 1/10th of an acre.
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>>1758700
>>1758148
Well first advise of private real estate is stay the fuck away from residential.

Other than that, I mostly disagree. I've been managing real estate for 15 years now and it's almost exclusively commercial. Of course it's more work than one might expect and you definitely have to study the law and be aware of what you're doing but in my mind if you're spending a couple hundred grand on an investment that should be a given.

For some reference, for 5 different properties it takes me about a day per month of administrative work and maybe 5 days extra every year for legal and tax stuff. Repair work is all third party.
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>>1753605
>job
>rich
pick one
Thread posts: 40
Thread images: 4


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