Passive Income
Discussion
Soir said:
How do you pay the mortgages on 50 properties off in 5 years? (assuming you already have a fair few and that the rentals wouldnt cover it?
I buy right up front to add value, so low mortgages to start with (I buy them cash initially) but am fortunate that I've good income elsewhere to pay down the debt. Kudos said:
It would, but I employ someone F/T to do all the management and build/refurb for me at the minute. They've plenty of downtime so also do building work for others on the side to generate extra income and subsidise their salary!
I travel a lot and the last thing I want is a call at 11pm on a Sun night saying that the toilet is blocked
May I ask what you do full time/ your main line of work is? (that allowed you the deposits on so many properties0I travel a lot and the last thing I want is a call at 11pm on a Sun night saying that the toilet is blocked
jonny70 said:
May I ask what you do full time/ your main line of work is? (that allowed you the deposits on so many properties0
According to his profile, "I own some companies, some more successful than others - IT, Property Developer, renewable and traditional energy producer"I don't see "miracle worker" in the list though.
jrinns said:
Dont trust advise from Kudos..
He has made some bad decisions in life judging by his car history and one of those was purchasing a 3.0 V6 Pug coupe - same mistake I made ;-)
Best car I ever had, loved that. Baby blue with tan leather seats. Got written off by some dick driving out in front of me. He has made some bad decisions in life judging by his car history and one of those was purchasing a 3.0 V6 Pug coupe - same mistake I made ;-)
Eleven said:
According to his profile, "I own some companies, some more successful than others - IT, Property Developer, renewable and traditional energy producer"
I don't see "miracle worker" in the list though.
As per profile, I own some companies that people run for me and I dip in and out if for board meetings. I don't see "miracle worker" in the list though.
My main job is consultancy, I have some specialist IT skills which are luckily in demand. This pays for my toys and cash flows a lot of things.
No miracles, just been lucky. Setup a company and sold it to a Nasdaq listed company which kicked off things for me
Kudos said:
Eleven said:
According to his profile, "I own some companies, some more successful than others - IT, Property Developer, renewable and traditional energy producer"
I don't see "miracle worker" in the list though.
As per profile, I own some companies that people run for me and I dip in and out if for board meetings. I don't see "miracle worker" in the list though.
My main job is consultancy, I have some specialist IT skills which are luckily in demand. This pays for my toys and cash flows a lot of things.
No miracles, just been lucky. Setup a company and sold it to a Nasdaq listed company which kicked off things for me
The people I see doing best tend to be those who do something else and see property as merely a store of wealth, with no imminent plans to rely upon it for a life on the golf course.
Eleven said:
I didn't mean to sound flippant, though inevitably I did. Your post to which I replied suggested that you saw buying and paying down properties as a quick route to wealth and it rarely is. I have seen many people try and fail, some spectacularly.
The people I see doing best tend to be those who do something else and see property as merely a store of wealth, with no imminent plans to rely upon it for a life on the golf course.
You are right. My investment plan works for me (hopefully) but won't work for others.The people I see doing best tend to be those who do something else and see property as merely a store of wealth, with no imminent plans to rely upon it for a life on the golf course.
I knew a guy who used to sell 2nd hand jeans from the boot of his car. Fast forward 10yrs he was "worth" £300m with his own jet. Fast forward another 3yrs and he's no longer worth £300m
Kudos said:
Best car I ever had, loved that. Baby blue with tan leather seats. Got written off by some dick driving out in front of me.
I had a silver V6 with black leather and 19 inch OZ wheels, purchased with some redundancy in my early 20s ( a long time ago). Not a wise move but I used to love it. Depreciated a little tho !
Kudos said:
As per profile, I own some companies that people run for me and I dip in and out if for board meetings.
My main job is consultancy, I have some specialist IT skills which are luckily in demand. This pays for my toys and cash flows a lot of things.
No miracles, just been lucky. Setup a company and sold it to a Nasdaq listed company which kicked off things for me
Interesting and good for you Kudos, always good to hear of people doing well. If you don't mind which area of IT are you're skills in and what did the company do that you sold? My main job is consultancy, I have some specialist IT skills which are luckily in demand. This pays for my toys and cash flows a lot of things.
No miracles, just been lucky. Setup a company and sold it to a Nasdaq listed company which kicked off things for me
Eleven said:
I didn't mean to sound flippant, though inevitably I did. Your post to which I replied suggested that you saw buying and paying down properties as a quick route to wealth and it rarely is. I have seen many people try and fail, some spectacularly.
The people I see doing best tend to be those who do something else and see property as merely a store of wealth, with no imminent plans to rely upon it for a life on the golf course.
In other words , property is a long game, a long term investment. People i know that have been successful investing in property are those that have been in it a long time through a combination of obviously of long term property prices rises, inflation an paying down the mortgages. The people I see doing best tend to be those who do something else and see property as merely a store of wealth, with no imminent plans to rely upon it for a life on the golf course.
The vast majority if my assumptions are right are those that buy highly leveraged and "as a quick rich" like relying heavily on short term capital appreciation rather than the income an as they try to build portfolios quickly ( well one could pre 2007) its almost all entirely build on debt with a reliance on short term capital growth , (and if the market falls , they get wiped out)
Is this what you mean?
jonny70 said:
Eleven said:
I didn't mean to sound flippant, though inevitably I did. Your post to which I replied suggested that you saw buying and paying down properties as a quick route to wealth and it rarely is. I have seen many people try and fail, some spectacularly.
The people I see doing best tend to be those who do something else and see property as merely a store of wealth, with no imminent plans to rely upon it for a life on the golf course.
In other words , property is a long game, a long term investment. People i know that have been successful investing in property are those that have been in it a long time through a combination of obviously of long term property prices rises, inflation an paying down the mortgages. The people I see doing best tend to be those who do something else and see property as merely a store of wealth, with no imminent plans to rely upon it for a life on the golf course.
The vast majority if my assumptions are right are those that buy highly leveraged and "as a quick rich" like relying heavily on short term capital appreciation rather than the income an as they try to build portfolios quickly ( well one could pre 2007) its almost all entirely build on debt with a reliance on short term capital growth , (and if the market falls , they get wiped out)
Is this what you mean?
Firstly, it is very difficult to consistently buy bargains. Bargains include properties where it is relatively easy to add value, by the way. What this means in practice is that the majority of people who want to be out five years after they start end up buying properties that they probably should not. They end up illiquid, miserable, poor and sometimes bankrupt. The last silly sod I saw do this went down for £10m. Ironically had he been more experienced he would now be worth £10m, which brings me on to...
There are some things that only time and experience can teach you and five years is probably the minimum requirement for becoming basically experienced in the business and to stop making daft mistakes*. It took me a lot longer and I am not immune from them twenty years after I started!
The property market has a habit of ironing out the cock-ups and bad buying decisions. I am not at all sure that five years from today will be long enough to float all boats.
- Unless your father or other very close mentor is permanently looking over your shoulder to spot cockups before they happen.
Edited by Eleven on Wednesday 26th February 12:39
Interesting thread.
I've been trading futures and options for years with the aim of building a reliable & growing income. I've made many expensive mistakes along the way, not managing risk &/or cash properly, but as I've learned how to do so, its been doing very well for the last couple of years.
Now I'm trying to find a way to legally do the same for other people's money in return for a share of their profits.
Ironically, a currently-passive income could become my sole source of income!
I've been trading futures and options for years with the aim of building a reliable & growing income. I've made many expensive mistakes along the way, not managing risk &/or cash properly, but as I've learned how to do so, its been doing very well for the last couple of years.
Now I'm trying to find a way to legally do the same for other people's money in return for a share of their profits.
Ironically, a currently-passive income could become my sole source of income!
sideways sid said:
Interesting thread.
I've been trading futures and options for years with the aim of building a reliable & growing income. I've made many expensive mistakes along the way, not managing risk &/or cash properly, but as I've learned how to do so, its been doing very well for the last couple of years.
Now I'm trying to find a way to legally do the same for other people's money in return for a share of their profits.
Ironically, a currently-passive income could become my sole source of income!
Interesting reply Sid and great username choice! ;-) I tinker with equities, can you give me an idiots guide to Options and Futures and how you make money? I've been trading futures and options for years with the aim of building a reliable & growing income. I've made many expensive mistakes along the way, not managing risk &/or cash properly, but as I've learned how to do so, its been doing very well for the last couple of years.
Now I'm trying to find a way to legally do the same for other people's money in return for a share of their profits.
Ironically, a currently-passive income could become my sole source of income!
sideways sid said:
Interesting thread.
I've been trading futures and options for years with the aim of building a reliable & growing income. I've made many expensive mistakes along the way, not managing risk &/or cash properly, but as I've learned how to do so, its been doing very well for the last couple of years.
Now I'm trying to find a way to legally do the same for other people's money in return for a share of their profits.
Ironically, a currently-passive income could become my sole source of income!
Well in our business there's the developers and the investors. Typically if an investor is putting up all the capital for a developer the cost of money is deducted from the profit and then the profit is divided 50/50 between the developer and the investor. I've been trading futures and options for years with the aim of building a reliable & growing income. I've made many expensive mistakes along the way, not managing risk &/or cash properly, but as I've learned how to do so, its been doing very well for the last couple of years.
Now I'm trying to find a way to legally do the same for other people's money in return for a share of their profits.
Ironically, a currently-passive income could become my sole source of income!
Probably best to use Google &/or the brokers (Interactive Brokers, et al) for a guide to Futures & Options.
for me, money comes from the premium received for selling out-of-the-money options, plus positions on the underlying futures, such that the future hedges the option in the event that the option expires in-the-money.
for me, money comes from the premium received for selling out-of-the-money options, plus positions on the underlying futures, such that the future hedges the option in the event that the option expires in-the-money.
not me, I pay people ..Eleven said:
There are several strings to what I mean.
Firstly, it is very difficult to consistently buy bargains. Bargains include properties where it is relatively easy to add value, by the way. What this means in practice is that the majority of people who want to be out five years after they start end up buying properties that they probably should not. They end up illiquid, miserable, poor and sometimes bankrupt. The last silly sod I saw do this went down for £10m. Ironically had he been more experienced he would now be worth £10m, which brings me on to...
There are some things that only time and experience can teach you and five years is probably the minimum requirement for becoming basically experienced in the business and to stop making daft mistakes*. It took me a lot longer and I am not immune from them twenty years after I started!
The property market has a habit of ironing out the cock-ups and bad buying decisions. I am not at all sure that five years from today will be long enough to float all boats.
Very interesting and thanks for posting.Firstly, it is very difficult to consistently buy bargains. Bargains include properties where it is relatively easy to add value, by the way. What this means in practice is that the majority of people who want to be out five years after they start end up buying properties that they probably should not. They end up illiquid, miserable, poor and sometimes bankrupt. The last silly sod I saw do this went down for £10m. Ironically had he been more experienced he would now be worth £10m, which brings me on to...
There are some things that only time and experience can teach you and five years is probably the minimum requirement for becoming basically experienced in the business and to stop making daft mistakes*. It took me a lot longer and I am not immune from them twenty years after I started!
The property market has a habit of ironing out the cock-ups and bad buying decisions. I am not at all sure that five years from today will be long enough to float all boats.
- Unless your father or other very close mentor is permanently looking over your shoulder to spot cockups before they happen.
Edited by Eleven on Wednesday 26th February 12:39
Im considering my first BTL an was told to buy on the income/rent/yield. I live in the NorthWest .Whats your take /advise for newbie considering there first (something like a 70-80k house on the outskirts of manchester , no crappy areas and a decent rent )
Got nay good advise/pitfalls to avoid etc
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