Wysiwyg
Everyone wants money
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What are your tips for acquiring wealth and riches?
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Jeez this threads now on a roll!
For a slightly different perspective but with the same goals.
Gota lov it “Debt is King”
“Do not be afraid of debt”
Hey it’s great to be optimistic but.......
One shouldn’t have to point out that the world’s economies are in trouble because of these debts!
So could it mean 90-95% of people just failed and just 5-10% succeeded? ............ Does not mean all of the 95% never tried!
Many have made some money incorporating debts into various business ventures. It does not mean that it is neither the only way nor the safest way to succeed. It can still be done without heavy debts just takes a little longer.......perhaps? Being heavy indebted can result in you ending up with nothing in a very short space of time. And what about the emotional strains on one’s self and family. Business ventures with little to no debts still succeed and what’s better you live to fight another day if things turned for the worst.
Control that greed. Slow but steady still wins the race, but perhaps not make it to the super rich list.
Unfortunately with tax deductions etc. etc. etc. the governments view is "debt is good."
For a slightly different perspective but with the same goals.
Gota lov it “Debt is King”
“Do not be afraid of debt”
Hey it’s great to be optimistic but.......
One shouldn’t have to point out that the world’s economies are in trouble because of these debts!
So could it mean 90-95% of people just failed and just 5-10% succeeded? ............ Does not mean all of the 95% never tried!
Many have made some money incorporating debts into various business ventures. It does not mean that it is neither the only way nor the safest way to succeed. It can still be done without heavy debts just takes a little longer.......perhaps? Being heavy indebted can result in you ending up with nothing in a very short space of time. And what about the emotional strains on one’s self and family. Business ventures with little to no debts still succeed and what’s better you live to fight another day if things turned for the worst.
Control that greed. Slow but steady still wins the race, but perhaps not make it to the super rich list.
Unfortunately with tax deductions etc. etc. etc. the governments view is "debt is good."
Trembling Hand
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How far off the mark are you??
Lots.
If you use debt for non-productive means we get the mess we are in now.
A million miles away from using it as leverage in a profitable scalable biz.
MR...we are not advocating you load your self up to the hilt with debt....
at the moment I probably have 30-40% debt...I forget the exact figure
to begin with apart from a 20% deposit...I bought some debt to buy an IP, 8 years down the track the debt has diminished to less than a third of the value of the asset... (dont bother with the mv to drop by 200% or whatever figure the kids are using today)
I also spent money increasing the value of the asset, doing improvements and renovations...
I repeated the same plan several times.....if I were to liquidate the assets now...I would walk away with a rather handsome profit and a large amount of cash.
Or I could have done nothing and just be holding the 20% deposit.....and that is what most people do.....they do nothing.... or they borrow for bad debt...credit cards, cars, tv, boats, etc
Oh and one last prop I bought....I did lots of things to increase its earning potential, together with a lot of time and effort on my part....it was similar to time spent on a part time job....but without any income at the time...after a couple of years came pay back time....it now generates sufficient income, that I only work part time now...
the OPM that I bought to fund the purchase represents less than 1/10th of the mv of the asset.
hence when we say debt is good....but its only good on an asset that does not lose value...bad debt is when you buy a car, tv or the like
at the moment I probably have 30-40% debt...I forget the exact figure
to begin with apart from a 20% deposit...I bought some debt to buy an IP, 8 years down the track the debt has diminished to less than a third of the value of the asset... (dont bother with the mv to drop by 200% or whatever figure the kids are using today)
I also spent money increasing the value of the asset, doing improvements and renovations...
I repeated the same plan several times.....if I were to liquidate the assets now...I would walk away with a rather handsome profit and a large amount of cash.
Or I could have done nothing and just be holding the 20% deposit.....and that is what most people do.....they do nothing.... or they borrow for bad debt...credit cards, cars, tv, boats, etc
Oh and one last prop I bought....I did lots of things to increase its earning potential, together with a lot of time and effort on my part....it was similar to time spent on a part time job....but without any income at the time...after a couple of years came pay back time....it now generates sufficient income, that I only work part time now...
the OPM that I bought to fund the purchase represents less than 1/10th of the mv of the asset.
hence when we say debt is good....but its only good on an asset that does not lose value...bad debt is when you buy a car, tv or the like
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How far off the mark are you??
Lots.
If you use debt for non-productive means we get the mess we are in now.
A million miles away from using it as leverage in a profitable scalable biz.
TH, I don't think I'm a million miles off the mark, but I understand what you are implying.
The problem is the two are linked!
Take the car makers their expansions were based on demand like all business expansions, thus driven somewhat by that non-productive means.
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Town X has a mining boom .
mr X expands his mining equipment lease business using a large debt borrowing based on his equity on his house and other assets to supply mining boom
town X no longer has mining boom
mr X 10 new loaders sit in mr X,s yard
mr X now has a problem
finance supplier steps in sells mr X, s new loaders at repo auction but still mr X owes more
finally mr X sells house and other equity bearing assets and says "yeah all that debt was great"
mr X expands his mining equipment lease business using a large debt borrowing based on his equity on his house and other assets to supply mining boom
town X no longer has mining boom
mr X 10 new loaders sit in mr X,s yard
mr X now has a problem
finance supplier steps in sells mr X, s new loaders at repo auction but still mr X owes more
finally mr X sells house and other equity bearing assets and says "yeah all that debt was great"
hmmmm, re the car makers...
truth was demand was not there,,,hence the strife now...they insisted on making the bigger gas guzzling cars....even after the market had turned against the gas guzzlers a couple of years ago...
they had not kept in touch with the market place...just doing the same thing they had always done.....
the private jets ??? borrowed to buy same....govt handouts for research...nope none done...borrowed to pay bonuses to the chiefs...yes
heard Russia is stockpiling the same big cars....but keeping the factories going and people employed...the cars never make it to a car yard....
whole towns are employed in that workforce....so to shut it down, the whole towns goes down with it.......how stupid is that....who is in charge of this show....probably going on in other countries too
debt was used for all the wrong reasons
the community had taken the greenhouse thing seriously, and wanted greener smaller cars....but the car makers never listened....
now Obama may stop them in their tracks...no more funding...tell them to get real
truth was demand was not there,,,hence the strife now...they insisted on making the bigger gas guzzling cars....even after the market had turned against the gas guzzlers a couple of years ago...
they had not kept in touch with the market place...just doing the same thing they had always done.....
the private jets ??? borrowed to buy same....govt handouts for research...nope none done...borrowed to pay bonuses to the chiefs...yes
heard Russia is stockpiling the same big cars....but keeping the factories going and people employed...the cars never make it to a car yard....
whole towns are employed in that workforce....so to shut it down, the whole towns goes down with it.......how stupid is that....who is in charge of this show....probably going on in other countries too
debt was used for all the wrong reasons
the community had taken the greenhouse thing seriously, and wanted greener smaller cars....but the car makers never listened....
now Obama may stop them in their tracks...no more funding...tell them to get real
nunthewiser....where was Mr X's plan b, or plan c.....sounds like he over committed.... ?
one would have to do the sums to check that one would generate sufficient income to cover the cost over a set period.....and then review the plan,
since it was just a boom...
leave the boom time big committments to the bhps of this world..they have the finance and the backing...
most small business operators take it slow and steady...and keep it as a going concern
one would have to do the sums to check that one would generate sufficient income to cover the cost over a set period.....and then review the plan,
since it was just a boom...
leave the boom time big committments to the bhps of this world..they have the finance and the backing...
most small business operators take it slow and steady...and keep it as a going concern
tech/a
No Ordinary Duck
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In the above case which by the way isn't all that uncommon--IE All associated business which hooks on to the car industry.
Its a principal of business that you should not have all your eggs in the one basket.
You must be able to implement plan "B" and "C" and "D" to avoid catastrophic consequences.
Poor business planning.
Regardless of the size of the business.
T/H has hit it on the head.
Productive and un productive debt.
kincella
Leadership an interesting topic.
I also see we crossed replies.
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Mr Y is an aspiring property investor
he borrows X amount of dollars for his first investment place using the equity in the family home and the fact that intrest rates are so low
he rents said place out and figures why not buy another one , grab another loan , she,ll be right the tenants can pay it off with a lil addition from mr Y to cover the shortfall as it is 2009 and houses just dont seem to be cheap enough to provide a positive geared scenario
mr Y gets a bad tenant
mr Y is now trying to cover the mortgage on family home , the mortgage on investment property and the shortfall on other investment property
mr Y decides to sell a property as his income just cant cover his day to day expenses plus all his mortgages
mr Y takes a loss , it is 2009 after all and the property market isnt what it used to be
mr Y still has to pay family home mortgage , shortfall covering on investment property mortgage, oh and the balance of the other mortgage which whixch was not fully paid on the sale of other proprty
Mr Y, other tenant loses job and decides that the current laws mean that he can just hang out in mr Y, rental property for 3 months before he can be finally removed
mr Y is a lil short in his repayments for 3 months
bank has enough , and views mr Y as a dangerous investment choice
bank sells the family home and remaining rental and covers all monies owed
mr Y thinks "yep all that debt was great"
he borrows X amount of dollars for his first investment place using the equity in the family home and the fact that intrest rates are so low
he rents said place out and figures why not buy another one , grab another loan , she,ll be right the tenants can pay it off with a lil addition from mr Y to cover the shortfall as it is 2009 and houses just dont seem to be cheap enough to provide a positive geared scenario
mr Y gets a bad tenant
mr Y is now trying to cover the mortgage on family home , the mortgage on investment property and the shortfall on other investment property
mr Y decides to sell a property as his income just cant cover his day to day expenses plus all his mortgages
mr Y takes a loss , it is 2009 after all and the property market isnt what it used to be
mr Y still has to pay family home mortgage , shortfall covering on investment property mortgage, oh and the balance of the other mortgage which whixch was not fully paid on the sale of other proprty
Mr Y, other tenant loses job and decides that the current laws mean that he can just hang out in mr Y, rental property for 3 months before he can be finally removed
mr Y is a lil short in his repayments for 3 months
bank has enough , and views mr Y as a dangerous investment choice
bank sells the family home and remaining rental and covers all monies owed
mr Y thinks "yep all that debt was great"
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yep all over the midwest ... yards full of machinery ........ even the places like "coates hire " etc etc ....looking a lot different to a year back ....... lol most need bigger yards to store all this stuff sitting there unused now
Tech/a...I keep hearing stories like that....or change it 10 investment properties, or 10 horses for the horse riding school.....apparently majority of small businesses fail within 3 or 5 years...
unbridled (pardon the pun) enthusiasm.....like the stock traders...in the boom time they think it will last forever...
but we can see why those operators go out of business....its a failed plan to begin with...
and sometimes I wonder if those stories are so common....???
most of the people I have been involved with are more conservative...prepared to take each step along the way....not leap from the ground to the top in just one step
unbridled (pardon the pun) enthusiasm.....like the stock traders...in the boom time they think it will last forever...
but we can see why those operators go out of business....its a failed plan to begin with...
and sometimes I wonder if those stories are so common....???
most of the people I have been involved with are more conservative...prepared to take each step along the way....not leap from the ground to the top in just one step
nunthewiser...
a. you are either hanging out in the wrong company...of losers...or wild boys..otherwise known as cowboys....
or b. you are making up stories
or c. are there really so many silly people out there?
regarding investment properties...even the bank factors in a vacancy of 4 months each year....so should the investor....budget and allow for same..
a. you are either hanging out in the wrong company...of losers...or wild boys..otherwise known as cowboys....
or b. you are making up stories
or c. are there really so many silly people out there?
regarding investment properties...even the bank factors in a vacancy of 4 months each year....so should the investor....budget and allow for same..
Mr Y didnt have a buffer , didnt have LL insurance and didnt do his DD well enough.
No one will ever go forward if you do nothing because of what may be the worst case scenario - make sure you are covered for it if it ever happens, but most likely it wont.
No one will ever go forward if you do nothing because of what may be the worst case scenario - make sure you are covered for it if it ever happens, but most likely it wont.
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just to keep it fair
MrZ is itting in his lounge in the late1990,s suckin on a stubby and says"geez i reckon we have seen the top of the intrest rates and bottom of the house prices for now i might go borrow a bucket load of cash and buy 15 dirt cheap investment propertys because the rent will cover the mortgage with 10 bucks left over on each one each week"
mr Z sells 2 to mr Y in 2009
mr Z loves debt because now he no longer has any
MrZ is itting in his lounge in the late1990,s suckin on a stubby and says"geez i reckon we have seen the top of the intrest rates and bottom of the house prices for now i might go borrow a bucket load of cash and buy 15 dirt cheap investment propertys because the rent will cover the mortgage with 10 bucks left over on each one each week"
mr Z sells 2 to mr Y in 2009
mr Z loves debt
because now he no longer has any
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lol "hang of it" .good grief
Trembling Hand
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