Real Estate Consultant · Somerville, MA · Member since 2008 · 339 posts · 52 votes
19y
Here's some boring, practical advice...put some of it away so that you don't end up being stupid and losing it all.
A lot of pro athletes and others who end up with a lot of money at a relatively early age don't do proper planning. As Warren Buffet says: stocks, bonds, cash, and real estate. Have a little of each. Put some away for 10 years from now, some for 20, and some for 30+. Once you have that network taken care of you might consider:
-taking care of any family members who need help. Not handouts, but intelligent, collaborative deals that empower them to move forward in life
-creating a scholarship fund to help kids get to college
-funding a local civic center, cancer research institute, Walk for Hunger, or whatever tickles your fancy
-tithing to your church
Life has been good to me, too, and I certainly spent a lot of time pursuing skydiving and such. I've hiked the Himalayas and dove the Great Barrier Reef and a lot of great stuff in between so I understand how you feel. I felt the same way. But after the dust settled, I found that I got the most satisfaction out of using my resources and energy helping others to achieve similar or greater heights in their lives.
Real Estate Investor · Las Vegas, NV · Member since 2008 · 1k+ posts · 447 votes
19y
The big question is: what do you want to do? You are looking at earning 1 million a year, to some that is unimaginable and to others it is no big deal. You are in a position to go after anything that you want, you just need to figure out what that is.
Ya I'm not sure what I'm gonna do after that. I guess I could just take break until the next deal comes along. But I think it would be great to come up with some kind of new career of some sort. I haven't worked at a job for 9 years now. So sometimes I wonder what it would be like to work just a regular job again. Just for fun and for the social element of it. Just a thought.
Real Estate Consultant · Somerville, MA · Member since 2008 · 339 posts · 52 votes
19y
Here's some boring, practical advice...put some of it away so that you don't end up being stupid and losing it all.
A lot of pro athletes and others who end up with a lot of money at a relatively early age don't do proper planning. As Warren Buffet says: stocks, bonds, cash, and real estate. Have a little of each. Put some away for 10 years from now, some for 20, and some for 30+. Once you have that network taken care of you might consider:
-taking care of any family members who need help. Not handouts, but intelligent, collaborative deals that empower them to move forward in life
-creating a scholarship fund to help kids get to college
-funding a local civic center, cancer research institute, Walk for Hunger, or whatever tickles your fancy
-tithing to your church
Life has been good to me, too, and I certainly spent a lot of time pursuing skydiving and such. I've hiked the Himalayas and dove the Great Barrier Reef and a lot of great stuff in between so I understand how you feel. I felt the same way. But after the dust settled, I found that I got the most satisfaction out of using my resources and energy helping others to achieve similar or greater heights in their lives.
Homeowner · Teaneck, NJ · Member since 2008 · 25 posts · 0 votes
19y
Boy, how I wish I had $85,000 after expenses every month! :lol: Care to share with a motivated REI who is pretty new to the game? I'd love to be where you are financially.
I totally agree wiith takleberry, invest some of that money for the future, you just never know.
If I had money to spend like that, I would travel. Traveling can be a very humbling and mentally broadening experience.
Helping others is also a very good feeling. Having a scholarship foundation to help underpriviledged children would be awesome.
Have you ever wanted to own a franchise (gym, fast food, taxes etc)? This is an option.
Have you ever wanted to play an instrument or perform? Maybe you can take classes! Seriously, I could go on for days.
If you have information that you would not mind sharing with others on how you got where you are at a pretty young age in this business, that may also be fulfilling.
Last but not least, you really should tithe if you go to church.
Good luck with everything and if you want to start your charity work, you can start by sharing info so that I can get to where you are financially. :mrgreen:
Homeowner · Teaneck, NJ · Member since 2008 · 25 posts · 0 votes
19y
Since you are well on your way in REI and you like online gaming...maybe you can create a new game? I dunno, you have to figure out what is the thing you love best other than REI. Once you come up with that other thing you love, turn that into your next career/job/business. In life you never has too much education, maybe go back to school to study something. The answer lies within you.
What a great spot to be in. My wife and I were having this discussion awhile ago - it was the 'What if all our financial goals were met earlier than our planned date' question.
I had a hard time answering this question too. I am 27 now, but spent 7 years pursuing my degree - thus, those 7 years devoted to that singular purpose. After awhile, you stop asking yourself what you WOULD do and have to focus on DOING and getting by. Now that I have established my career, I can again ask myself what I would do if I could.
For me, I love the outdoors, hunting, fishing, camping, etc. First thing would be to buy as much wilderness land as I could reasonably manage, and build a nice cabin on a lake. I think many young kids today do not get the opportunity to experience the things I was fortunate to do. I would spend a lot of my time introducing kids to the outdoors. Teach them to fish, hunt, shoot a bow and arrow, paddle a canoe, conservation, etc.
Take a few long leisurely boundary waters canoe trips, too :)
Perhaps you can come here to MN and teach me a few things about REI!
Sounds nice. Ya that sounds pretty good. Get a cabin somewhere to go out too. I should think about that myself. There is this really nice lake I know of but unfortunately the prices there now are through the roof. But who knows.
Actually the interesting thing is that I haven't been into REI for too long. Only since 03. Everything you need to know can be learned by simple getting the Calton Sheets No Downpayment Course" and getting into the habit of turning your drive time into study time. The drives to and from work each day are your 2 daily classes teaching you how it all works.
But I think from all of that teaching the simpliest way to become successful in REI is to simply do house flips at first because you can generally make five figures net profits from each flip. Then after you flip for a while and you've saved six figures, look for an apartment building to purchase.
Because once you get to that point where you're doing a lot of flips and you have enough funds on your side you can quite your job and just do it full time. And once you get your first apartment building I guarantee you'll probably stay with that because there's no risk and the cash flow will set you up for life. As as I said so many times you can buy an apartment easy with 10% down. In some cases maybe even just 5% if you're lucky.
Ya we could if you want. In the mean time go to ebay and buy Carlton Sheets "no downpayment" course. It's like $40bucks for a used copy. Best tiny little investment you'll ever make bro. If you wanna become a serious REI you need that course.
Real Estate Coach · Grand Rapids, MI · Member since 2008 · 204 posts · 188 votes
19y
I cant tell you what to do with your money, but I can tell you that you will probably have to start looking inward for happiness. As interesting as it sounds, once you reach your financial goals and start having more than enough money then you end up in a wierd place of "Why am I not happy,I have all this money?" For some this process takes a day, a week or a year but eventually it will happen to most.
What tends to happen is your references end up stretching and you will have to expand outside of what most people believe would lead to happiness. How many times have you heard "Man, If I had money like that? or "Shoot, If I had a car like that?" to the outside person without alot of money, it seems that the money or the toys will bring some kind of joy. Little do they know that the answer to "If I had money like that" or "If I had a car like that?" is only "you would then have money like that or a car like that", nothing less, nothing more. Many people live this happyness is just around the corner lifestyle, and some make it around the corner only to find out there is just another corner.
The problem is that you never realize that money doesnt bring any happiness, until you get alot of it. At least this has been my experience, I remember the year my wife and I made around $230,000 and we were living in a $105,000 home. I had my dream job, and everything that I "wanted", yet on a happiness scale from 1 to 10, I was still at an 8-9, which is exactly where I was when I was a broke college student. Slowly my happiness level started sinking, but not because I was miserable with anything in my life. I was just thinking "I should be happier, I have everything that I have always wanted", then I started feeling guilty for not being happier, which brought even less happiness.
Kurt Cobain killed himself over thoughts like this http://www.geocities.com/SunsetStrip/Venue/6582/Nirvana/suicidenote.html ,
I didnt fall into it myself, but I have a theory that drugs are so common in the wealthy and affluent because it is the only means they have, to reach the level of happiness that they think they "should be at".
If you put it in terms of mountain climbing once you have all of your needs met you have essentially reached the top of the mountain, there can be no more talk about how great it will be when you reach the summit, you are there. It is then, that you know that it is time to go back down and find some other mountains to climb.
Bellevue, WA · Member since 2008 · 156 posts · 57 votes
19y
Since I don't think "Give all your money to me" will work . . .
In the US we have an organization called Junior Achievement which tried to teach pre-teens and teenagers about business and money. I've always tried to support them because I think it is tragic to have the leader of the capitalist world do such a poor job teaching our kids about capitalism. I don't know if JA exists in Canada, but if it does, that is a worthy place to invest in the future.
Rental Property Investor · Twin Cities, MN · Member since 2008 · 94 posts · 10 votes
19y
The common thing that folks I know that are in this type of position, is that they continue doing deals, because they are enjoyable. It is fun. When the business becomes less about making money and more about the fun of the chase, it gets less stressful. People need to be added to help growth, but overall that seems to be common with friends who are financially free from having to work.
Well I'm sure there might always be some new stuff coming up to keep me busy. Just that the last several years have sort of been a roller coaster ride. I was doing extremely well with my other business, then I had a problem with it and had to re-establish the whole thing which put me back down to square 1. So then I was flipping houses and working on my business. Got my business back up to par. Then I did a couple major flips in 06. Closed on a large apartment in early 07. Then I just sold my building and the I'm buying these three more which I have all under contract, which will be closing in June and August. But then after that I almost feel like I'd like to give up with real estate for a while. Just have to figure out something new to occupy my time. Even now though it's just kinda frustrating cuz I wake up and there's like nothing to do. I have to call my mortgage broker today which will be a 5 to 10 minute conversation. Whoppie! That's my work for the day. And yesterday I didn't even have that to do while I'm waiting on these deals to close. Well actually I had a 1 minute conversation with my realtor who informed me one other development in regard to the deal. So I just feel like it would be nice to do something interesting with my days again.
Rental Property Investor · Twin Cities, MN · Member since 2008 · 94 posts · 10 votes
19y
So, you must have a management company and maintenance crew then. They don't require any day to day management?
No apartment turnover or showing your units to deal with?
If not enough to do, Home Depot or your local home improvement center could always use your help I am sure.
Bellevue, WA · Member since 2008 · 156 posts · 57 votes
19y
Hey R2, have you ever thought about just being a source for private money? You would still get to use your experience as an REI, but you would get the extra cool factors of being an "elder statesman," and you would get to see deals all over North America. Kinda the best of both worlds.
And if that doesn't work, take a look at privateislandsonline.com. Worth it just for the pictures.
Bellevue, WA · Member since 2008 · 156 posts · 57 votes
19y
Originally posted by "r2d246":
I think private lending is a whole other ball park.
You meant to say "a whole new challenge". Positive mental attitude and all that.
I have an old boss who owns a mail-order company. He's pretty well off ($10M+). When he was looking for new challenges, he talked about opening a bank -- mainly because it was something people just didn't do. It's all about framing the challenge.