Can you get Rich and Retire Early in Real Estate?

[ENP]

As an employee earning a modest middle income wage, can you do it in say 20 years or would you need to own a business? (I'm 21 right now)

I was having a conversation the other day with my parents and some family friends when they were round for dinner.

I've always been a very entreprenuerial person, thinking up all possible ideas to make an extra dollar here and there, but they have all been little ideas, such as flicking things off on trade me, making crafts and growing a few vegetables to bring in an extra couple of hundred dollars and stuff.

The asked me... what's your next big business idea. I told them I'd pay off my student loan then save up for property investments. They said, quote "Every man and his dog plays that game... you need to get into a business to make your millions"

I've always wanted to have a business of my own, but I can never think of decent ideas that will turn into a BIG business, the only ones I can come up with are little ones like selling stuff off on trade me and these types of things.

I'm quite down and confused now because I thought if I saved hard for a deposit, bought a rental of two, then I'd just keep building up and buying more houses? Or can't it be done? Do I need to own a mid/big business?

Thanks

[essence]

ENP

Ask yourself, what examples have my family/friends done to create wealth?? If you can't see any positive examples, why would you listen to their advise.

Always be very careful of the "knockers aka Tall Poppy Syndrome" in this life. People who have done nothing but still insisting that their weak uninspired point of view is valid. It maybe - to other weak uninspired people!!!

My advice to you - join a local Property Investment Association and meet people who are like minded. Offer to take people out to lunch/coffee - BE INSPIRED!!!

Oh and btw - I consider my investments AS MY BUSINESS, any reason why I wouldn't???

[ENP]

Good point...

None of them have invested in real estate apart from their houses. I'm pretty sure none of them have been in business apart from owning a cafe for 1-2 years about 25 years ago.

I've read in books that people you surround yourself with might bring you down? Is listening to my parents the best thing then? They aren't very business minded and have been working since forever in jobs as employees.

[essence]

A J.O.B. (Just Over Broke) is a sad pinnacle of one's life, don't you think??

Love your family and friends.

Surround yourself with people who think like you.

They are not mutually exclusive - they can be, but they don't have to be.

Sometimes family just don't "get" you?? A lot of people who are into property know exactly what you're talking about.

Just remember, people who are truly rich have a portion of their portfolio in property.

Donald Trump seems to have done "okay" from property and there are many more examples.

I heard a saying which I think is great - "Do one thing every day that frightens you". Think about it. It doesn't have to be physical, it could be mental, emotional, financial, anything.

Grab life by the cojones and have fun!!!

[drelly]

ENP - every man and his dog starts a business too and most of them fail. Just because most people fail, is that any reason not to try?

[Halfway To Paradise]

The asked me... what's your next big business idea. I told them I'd pay off my student loan then save up for property investments. They said, quote "Every man and his dog plays that game... you need to get into a business to make your millions"

Thanks

In my opinion setting out to pay off your student loan will be a mistake. I would only pay off what you have to
(I do). This is the cheapest loan you will ever get. It amazes me how many people borrow money for property, cars etc and talk about paying student loans off ASAP.

Student loan rate 0%
Mortgage rates (at the moment) under 6% up to around 8%
Car loans can easily range from 15-20% or more.

[ENP]

The student loan scheme put in place gives a 10% discount if you pay any lump sums off over $500. Basically, that's a completely risk free "investment" where I'm getting 10% return.

Also, with the likes of Donald Trump, as quoted from above, he's more into property development. So is the likes of the guy who owns the Phoenix Football club, these people didn't make that much renting out 3 bedroom homes in West Auckland did they?

So maybe property development rather than investing? Or no?

[Tan]

I've read in books that people you surround yourself with might bring you down? Is listening to my parents the best thing then? They aren't very business minded and have been working since forever in jobs as employees.

Although I love my parents, I really try to avoid their influence as I help them unwind the tangle they have ended up in as they attempt to retire. I see myself having their thought processes which scares me.

Luckily I have my Aunt and Uncle who have done very well for themselves as mentors. They started off much worse off than Mum & Dad too.
My Aunt & Uncle were farming, and are now in property. Still actually farming, but not doing the work. I try to run my decisions through the part of my brain that now thinks like them. I find it amazing how they can look at a situation (like when I went broke building my house) from so many angles and come up with a simple logical solution that never would have occured to me to fix an impossible situation. It's experience. People now think I can come up with lots of good ideas, but I'm just a beginner, and they don't know any better.

Yesterday I was speaking to my boss who has also done well for himself in property - well, he can afford to employ me after all! He was just off to mentor some young people.

(When I saw this job come up as PA to him and admin for his company I persuaded him to employ someone underqualified on the basis that enthusiasm would make up for it. I don't think either of us has regretted it.)

These people who have done well for themselves really enjoy mentoring, and do it for free. If I didn't have one already, there are several people in my Property Investor Association who have been there done that and would be great. In fact I have been known to chat on the footpath for more than an hour in the dark after meetings. These are normal people, not big scary businessmen.

As essence says, property is a business. It also needs to be run like one, and we all know people unsuccessful in business. Make sure you are successful by running ideas past those who have done well in it.

They said, quote "Every man and his dog plays that game...

BTW, every man and his dog don't play the game. Every man and his dog stop at 1-2 rentals.

[imd6662]

Diversify.

Keep all your options open.

[ENP]

So there is no reason you can't be an EMPLOYEE, run a property investment portfolio after work and weekends and still achieve everything you would like to?

I don't have to own a business like a traditional business of a retail store, etc.

[imd6662]

Businesses should be profitable. However many 'businesses' are little more than poorly-paid jobs, so choose carefully.

You might some of this thread http://www.propertytalk.com/forum/sh...ad.php?t=20539 interesting.

[drelly]

ENP,

I think that you're making this harder than it needs to be and trying to set your focus before opportunity has arisen. You don't have to choose property or business or investing or whatever. Lots of us on here have a business and property and other investments.

And no, being an employee doesn't mean you can't own property. Being an employee can also be a good way of getting into owning a business. Lots of my clients took over their businesses from their previous employers.

All I'm saying is keep your mind and options open. Don't assume that there's only one way to succeed.

[imd6662]

Wise words.

[Tan]

So there is no reason you can't be an EMPLOYEE, run a property investment portfolio after work and weekends and still achieve everything you would like to?

I don't have to own a business like a traditional business of a retail store, etc.

You can be an employee - enjoying holiday pay, sick pay, regular wages, regular hours etc and run properties only with an understanding boss.
It was a nightmare at my last job where I couldn't have 5 mins to take or make a call or sign a contract. My boss said "A woman in your position should not be buying rental property". I have never forgotten that. (She was old and broke. I earned more that year from property than my wages).

It's heaps easier to get a mortgage if you have a wage or other proven income.

You can work in the industry which will advance your knowledge for free - either self employed or as an employee, in any of a huge number of roles from property management to real estate agent (not this year!) to valuing to accounting etc.

If you are running a retail shop, how are you going to get time and energy to do stuff? I guess some people do it, but I don't imagine it is the easiest path. Retail is a real tie, and only the best make more than a wage.

As you get more properties, you can decide whether to get them managed and continue your day job, or some other mix.

[spaceman]

Feeling down???

A big cyber-hug from me to you

Confused as well ..... confusion normally comes from having to many options...... walk down the sunny side of the street and celebrate the fact that you have lots of options!!!

Out of all those options you have the choice to pick the one that you like the most and run with it....... and even better you don't have to decide right now ..... make the best choice for you in your own time.

Even better ....if you make the wrong choice now, you can always change the road you're on ...... when I was 21 I was an instument of death and destruction in the service of the state. Now many years later I'm making the world a better place in the service of peace and dishing out cyber-hugs. I had no clue that I would be doing what I'm doing now when I was 21 or that I would be a PI.

Nothing wrong with being in with every man and his dog, some times it's best to run with the pack until you find your feet.

As for getting rich, if I was you (this is stolen shamelessly from The Richest Man In Bablyon) I would take 10% of what you earn a make it YOUR money live on the other 90%...... wish I'd had done that when I was 21..... what you do with the 10% is a tricky question.

Good luck

Cheers
Spaceman