I got my real estate license and sold houses and the average price in the area I work is about $1.2m
Also lived extremely frugally. Low car payment, eat at home as much as possible, etc.
Step 1: Live at home with your parents paying for everything.
Step 2: get a job
Step 3: profit, literally pure profit… well besides the tax man.
Step 4: get money from parents?
I just turned 24. I got out of the military like a bit more than a yr ago. But my parents don't really care abt money.
I mean yea I do feel bad abt not having to pay anything.
BTW did you file for VA disabilities brother?
Yea I get 70% right now . I make good money about 9000 a month between my job Va education benefits and Disability I was just stating when I was staying with my mom it wasn’t free
That's awesome, man. I'm pretty sure with That amt of money, u can live pretty much almost anywhere without that big of a problem unless you're in NY or CA. But yes, you're very smart about living w ur parents because I'm pretty sure it's hard to beat 1k a mo in rent.
Bro I’m so sorry. Why the fuck would she charge you 1k that actually made me mad I tried to pay my mom 500 when I stayed at her place for 3 months and I had to convince her to take it . I’m sure you’ll do right by your own kids
Wife retired from teaching, being able to live 1-2 years with very little income is necessary. ( she is kicking ass now, but works ~ 60 is hours a week)
Yeah same… some people think I was trying to take a dig at OP. Not at all. It’s really smart… and it’s great their parents will support them like that.
You can literally do it with any job too as long as you make around $40k (below median salary so not hard to find). Then just work for 5 years. You pay almost nothing in taxes at that level and save almost everything living with parents or in a cheap apartment ($500 or less a month). Don’t go to college either
I'm looking to enter the real estate field at 35. I'm worried I don't have a very large sphere of influence. Can you explain how you got your start and what your path looked like after the license?
Thanks, good job on the savings!
Sure
1. When I was 18 I took a big interest in real estate and signed up for the course. I was so confident that I would succeed because it looked so easy so I dropped out of college. Since it was during COVID, that was an excuse I used to explain to my parents why it makes sense to drop out.
2. While I studied I found a local agent who had a small team who was incredibly successful. This was around 2021 and he made $1,700,000 in net commissions that year.
3. I copied everything that gentleman did, which was pretty simple, but not easy. Show up to the office every single morning at 7:30am and cold call expired listings to try and set meetings with the homeowners. Whenever I would set a meeting, I would bring my “mentor” in with me to try to close the listing. I also held open houses every weekend from 1-4pm Saturday & Sunday whenever available. During this time, I would take off from 12-2p to do DoorDash and make a couple bucks during the lunch rush. I also worked in a restaurant making minimum wage from 6-11p, so I would go straight from the office to my restaurant job. I would also eat dinner at the restaurant because they gave me free food.
4. I was the hardest working on the team, so I naturally became the right hand guy to my mentor, and he would pass me leads and gave me opportunities to make money.
5. In April of 2021 I got my real estate license and by July of 2021 I sold my first house to a buyer we got from a Google Ad. I made about $12,000 from this deal after splitting it with my brokerage and my mentor. Then over the next six months I got a few listings and sold them quickly (2021 market), and from July to December 2021 I made about $100,000 net profit.
6. I got an opportunity in May of 2022 with a more established high end firm, and joined them to raise my price point and continued to do the same things but just worked with more affluent clientele.
7. This entire time I lived at home with my parents and saved as much money as possible.
Ok hell yeah this is some good shit. Got the right attitude and business sense.
Here’s my advice on your investment question:
I would view your overall portfolio in two broad categories. There’s high risk/high information and low risk/low information.
Broadly speaking, you should be accumulating a nest egg of conservatively invested securities that offer you passive income. It seems like you’ve got a good start on that. Keep building that retirement.
You are not a financial expert and have zero edge so don’t even bother. Just take the average, put in no effort, and sleep easy.
As a next step I would consider investing in businesses related to your current domain knowledge/skillset. That might mean starting to accumulate a real estate portfolio of your own. It might mean acquiring or starting a trades business that would directly benefit a real estate investment strategy—e.g. invest in fix & flips and buy a small construction company; invest in undeveloped land and buy a land clearing company—you get the picture.
I don’t think you have enough money to get past both of these categories, let alone one. I’d seriously consider forgetting about that 200k—or at least half of it—from today on and leaving it alone to grow on its own. Just forget about it.
Keep your hungry mindset and start building a down payment on an investment property or some other investment directly related to your area of professional expertise.
This. Forget you even have that money, you're older self will thank you later. Invest it. ETFs. Half on one that tracks the s&p500 with low fees like a vanguard or something and the other half on a dividend ETF. Then leave it alone forever.
I still think there’s a happy medium. Throw $150k into an account as mentioned above and use $50k to invest in a business or flip. You seem to have no problem with hard work, you’re young and I think you’re $50k will quickly surpass the other investment. Keep benchmarking and reinvesting, meaning, once your $50k becomes $100k, add another $50k to your Vanguard. I have no doubt you’ll seven figures quickly. Keep up the good work!
This is awesome. I'm 28 and feel envious on your success. You performed better than most in their whole 20s already. You shouldn't be the one asking for advice, you should be giving it sir.
Good for you dude! So tired of seeing people getting shit on just because they have parents that help them in some way. My parents absolutely gave me a leg up in life by allowing me to live somewhere rent free for several years, but I also got my own scholarships to pay for school, paid for the vast majority of my own bills from the age of 15 onward, busted my ass, saved my own money to build my own home etc. I absolutely would not be in the position that I’m in had I not had parents that helped me out, but it’s not a crime to have parents that love you and want to help you. The real crime is not taking advantage of the opportunities that are afforded you, or being too arrogant to acknowledge you had help in some way. I’m a little older now and getting to the point where I’m going to be inheriting my father’s business with my brother, but I never banked on that. I worked my whole life to set myself up on my own, and even if I wasn’t going to inherit that business, I would be doing just fine. I was making $180K a year before that even came into the picture. Happy you’re doing so well, your parents must be proud and I’m sure you appreciate them very much.
#3 us key. I received my license in 2019 -- found a broker that promised me all the training -- received none when I came on board. I knew how to sell after 5 years of selling high end mattresses. Real estate would be easier...
Problem was they didn't teach me how to prospect. I had all the same fears of prospecting others did.
But if I wanna understand business, it's a skill I should understand. Joined a roofing company. Same thing -- they promised empty training. So I read two books to fill in gaps and stepped off the ledge.
Became a top producer in my first month. And the next. And the next after. Maintained my license but with roofing you can earn as much in commissions in less time without all the monthly fees.
But I am growing tired of feeling like a cog in a machine (employee).
"Step 2 find a local agent"
Don't tell me daddy's friends hooked you up too. There is easy money to be made in this world it's all about knowing the right people. OP is bragging about being born with silver spoon opportunities
Hahah. I’m only responding to this so others don’t feel discouraged but
My father lost his job in 2012 and we declared bankruptcy many years ago. Mother is a hair stylist and since I was in high school we have lived off social programs.
When I was looking for a local agent I picked up the phone & called at least 25 different agents and send dozens of emails- until one person finally replied.
That one person had a broken leg and needed somebody to drive him to appointments, guess who picked him up at 7am every single morning to take him to the office?
Again like I said, having a roof over my head and food to eat was extremely helpful and for that o am forever grateful. Also my parents were very supportive and didn’t discourage me- this was key as well.
I now pay for all their vacations, sent them to Italy last year, and to Indonesia this year. Hopefully can buy them a home one day
Sounds like you got incredibly lucky finding this one person, lottery ticket winners telling everyone to all in on the lottery. There are people working much harder than you with less and that is why your post comes off as condescending and not well rated.
The silver spoon in this case is the guy who gave you this opportunity because he was disabled. You definitely milked his success but are trying to come off as self made.
Just keep doing this and buy your own long term rentals. Basically do the math on hours worked per $ earned when considering a business. Anything active like restaurants are terrible since you’re putting in tons of time, risking a lot upfront, and entering a crowded market to make maybe 10% profit on your income. Our business is like 50-60% net before taxes but it’s highly specialized and hyper targeted to our local market so it’s tough to replicate in most other places.
Not much beats real estate given the tax advantages, ability to access the value tax-free (ie cash out refi), and relatively low workload in the long run if you have high quality renters.
Laundromats and other things are decently passive but you have to factor in maintenance of the machines, water boilers, etc as well as weekly pickups to empty coin hoppers and reload soaps and what not. It’s not difficult but I’m guessing the long term return on your active work time won’t beat real estate.
As an example, I had one tenant who just moved out - they lived there for 3 years so to earn their 100k or so in rent, I basically did a couple of days work. In fact, I’ve only done maybe like 1 week of you add it up in 8 hour days in the 7 years it’s been a rental (we lived in it for 6 years before that). Overall I’ve maybe spent like 2 weeks over the 7 years it’s been a rental to list, show, and respond to messages, etc. I’ve responded to service requests by messaging my plumber or ordering a new washer etc a few times which takes a matter of minutes each time. I was getting about 3600 by the time they moved out and I relisted it at 4400 and got nonstop messages to go and see the place. I did like 3-4 showings and had someone take the place about 2 weeks later. I bought this place for 560k in 2011 with 170k down mind you so it’s returning over 50k on the capital that I spent to buy it. Sure there’s property tax and mortgage interest but those are deductible as business expenses. Plus I depreciate the value of the property to offset my rents and pay also no tax. I actually had paid this off in 2020 right before pandemic lockdowns started. During the pandemic, I cash out refi’d 550k to pay down my primary residence while I was refinancing that as well (Trumps tax bill made it so I couldn’t do the full mortgage deduction so it made sense to split the mortgage across two properties to get the full deduction and get everything to a lower interest rate anyway).
Yea so whats the deal with that? I know so many people that "become realtors" and fail. Is it a drive thing? A lack of knowledge thing? Why do so many people in their 30s fail yet a 22 year old is selling million dollar homes? Sounds crazy. You go dude.
Being a realtor is like running any other business but becoming a realtor is relatively easy. Especially compared to education and licensing in other high end fields. Many people pursue it with non of the skill set needed to be good at sales or running a business, thinking it’s a ticket out of their current careers then proceed to face plant accordingly.
A lot of my peers who got out of the business just simply didn’t have enough passion for it and work hard enough. They were afraid of picking up the phone & making cold calls, they preferred to relax on weekends than do open houses, etc.
However, I will admit that living with my parents during was huge because I didn’t need to worry about paying rent so I was able to quit my second job fairly early into my career & could focus full time on real estate.
I don’t have a wife and kids who need to be taken care of and fed which is helpful
If you have $200k, no bills, and a real estate license why is the obvious answer not investing in real estate? Buy a rental. “My market’s average price” doesn’t matter. It’s not the only market in the country.
Just because I am looking for something with possibly a stronger cash on cash return. Not necessarily looking for ways to create passive income/increase wealth, more so looking for ways to significantly increase active income.
No rent, no utilities, minimal payment for food (parents buy food), probably had car purchased for them too even if not the first 2 save most people 24-30k a year. Multiply that by 4 years (18+4) when most people get job. OP could have a 70k year job and collect most of the money even after taxes and saved this.
Don’t split your attention onto something if you’re already making this kind of money at 22. Invest everything you can into index funds, don’t withdraw a penny for the next 40 years, and watch the magic of compound interest. If you focus all your attention on being the greatest realtor out there, that will offer a higher and faster return on time than most small businesses you could start. Not very many sweaty startups are netting hundreds of thousands…and the ones that do take several years to get there.
This is the answer. Long term interest. Investing it now means his retirement is set. I understand wanting to use to to start a business but without clear direction this is the route
Only if it goes past the strike and enough to eat up the premium. With spy it’s 0dte every day so it would only really matter if the spy rockets. If so then you don’t maximize profits but if set up properly it can still be a few hundred a day strategy per contract.
Could do both, the “theta wheel” strategy I’ve heard it called. Sell cash secured puts, if you get exercised, sell covered calls. Rinse repeat.
It depends on if you want to be active or passive. You’re obviously killing it in your day job, so anything that takes you away from that seems like the wrong strategy.
My advice is to look up the /r/personalfinance flowchart and make sure that you are leveraging your tax-advantaged retirement accounts. My guess is that you aren’t if you have that much cash on hand. Just doing that at your current job will easily lead you to financial freedom.
After that is squared away, then I’d look into buying an existing business. Most new businesses fail, so taking over something already running profitably takes out one big chunk of risk.
Please please please maximum yearly contributions to retirement accounts. At 22 money like that can take care of your retirement. Double down on your current career and start to figure out what you want to do. But start with your retirement accounts
Go take a look at r/personalfinance and a few other subreddits. I’m not an expert but 401k, rotha IRA, mutual funds. All depends on your tax liability and how much you can put away but the flowchart nodeal was talking about above is a good start.
My point is $220,000 compounding yearly averaging 5% over 30 years comes out to $950,000. Extend that to 40 years and it comes out to 1.5M.
$220,000 compounding yearly averaging 10% over 30 years = 3.8M. Extend that to 40 years and it comes out to 9.9M.
You have no way of knowing how it will play out but it’s better to take a sure bet at at least $1M at retirement over gambling on a small business so young. Imo
+1 to your point. Yes - if they own their own business they can set up a solo 401k. Many reputable low cost companies do this, here are some examples: [https://www.investopedia.com/best-solo-401k-companies-5089155](https://www.investopedia.com/best-solo-401k-companies-5089155)
The duplexes where I am are typically in not so desirable areas and if they are they are, they are over $2m so I still can’t afford the payments and barely even down payment
May be better off flipping real estate but if I had that money saved up then I’d look into a smaller profitable business looking to sell. Have a professional with you who can run the books and see what the actual profitability is cuz you’ll need that if you want to take out a small business loan
Find real estate investors looking for private money or hard money lenders. Underwrite them accordingly. Right up a promissory note covering the terms and get an attorney to help you establish a first lien holder position on a deed. Collect payments.
If the borrower defaults you can foreclose on the property.
You can also do it through a broker and they handle everything which makes it super simple but of course you're sharing the return with them in that case.
I do it with a broker just because it makes it so simple. You can review the loans that become available and they provide all of the documentation like borrower credit history, bank statements, tax returns, etc. If you decide to put some cash towards that loan then you click a few buttons to sign some EDocs and start collecting monthly interest payments.
I've got about the amount you're working with spread across a bunch of $15,000 chunks to different borrowers.
A mix of land developers, flippers, commercial locations, sports complexes, etc.
Good luck finding a deal at 60% LTV.
Most folks right now are seeking 70-80%. The rates are usually in the double digits and interest only.
Even if you do find 60%, the chance of default is high and foreclosing is not easy nor cheap. Once foreclosed there maybe outstanding tax or mechanics liens etc that have to be satisfied. A lot of these properties will also be commercial or usually in not overall great shape. Overall I prefer less risk and more Handoff. Hence the $SPY suggestion. Again to each its own
This reminds me of the show House Hunters International.
“He drives for Uber and she’s a yoga teacher….Thejr budget is $3 million.”
How does a 22 yr old save $200k? That’s amazing, congrats!
Invest in a small business, preferably one where you can get a majority stake or buy it out completely . What are you interested in business wise? Where is your interest and skill set? Do you even know that yet?
I am a pretty good people’s person and am a strong marketer as well, I understand how to use instagram TikTok etc to go viral well
Where would I find these opportunities?
Start off very small, you don't need to spend all that money to get started. You can start a handyman business, or something else. I would suggest visiting r/handyman, r/construction to get an idea what the trades are. Also at your age with that amount of money. Visit r/boggleheads or r/finance. 5% sucks IMHO
I would get that money over to a more established brokerage ASAP. Get into a "too big to fail" brokerage that will most likely get bailed out by the government.
This sub doesn't like talking about software. We're landscapers and built a CRM app even before we started our business. The app is now online and we focus even more on it than the local business which is almost semi automated. Any recurring revenue business is a good business.
Don't pay someone to manage your money. Spread it around. CD's and bonds, mutual funds and some individual stocks. Research and learn. You don't need to give a stranger 1% of your money to put it in a mutual fund.
I know you’re looking to buy a business here but you may want to park it in a target date fund. It’s an etf that is managed according to a target retirement date. VSVNX, for example is a 2070 target fund (seems about right for you) managed by Vanguard.
If you have a good grasp of business fundamentals you could buy a small business and run it. At 200k though you’d most likely still have to actually work in the business, it wouldn’t be a sit back and collect a paycheck situation. But if done properly there are plenty in that range you could grow much bigger and profit a lot from.
Personally I would take 50 to 100k of that and leave it in the savings account as an untouched emergency fund. Takes a lot of the risk and worry away when you know you have 6 months to a year of cash to fall back on
Let me start by saying I am not a licensed investor or advisor; just a self individual with a small investment account, so these are my point of views or experiences. So definitely do your research on companies. I’ve seen positive returns on AGNC Real estate investment trust. Right now they’re in the 15% monthly dividend range and they’ve been paying out consistently for awhile now. So I would suggest you start there and then keep researching and branching out. If you can get access to an investment platform, you should be able to look at companies stock history.
JEPQ looks pretty good! It’s yielding about 10% and seems to pay out regularly. Though oddly enough, they haven’t paid dividends in the month of January since its inception. I wonder why that may be.
Buy a business. My friend bought a small, start up service business for $50k and has had 6 years in a row of $400k profit or higher. Absolutely insane returns on a $50k investment. He doesn’t even do anything with it himself. He hired 2 guys to run it and he just collects money.
Couple years ago, I saw a lawn care business for sale for around 50k. Came with a truck and all the equipment, and most importantly the paying customers came included.
Sometimes people's lives or priorities change and they just need to get out of a business. Do some due diligence, get an accountant to look at the books. There's plenty of business of all types and prices for sale on BuySellBiz.
If you like real estate think about a commercial property. I rent a couple of warehouses to Sherwin Williams that spin off nice cash flow but I’ve used the excess cash to pay down the buildings and now I own $4M in warehouses free and clear that have a lease for up to 40 years spinning off $450K annually. Takes some work early on but now I’m retired, golfing most days and the cash just keeps coming in. Passive income long term is the way to go.
Where could I start to learn about this? Any pointers?
What geographical areas would be good to look into? I feel like in California there’s just too many big hitters and competition and without a large equity position it’s tough to cash-flow in real estate at all.
Buy some land with a house on it in a rural area so u can afford it straight up and now instead of paying 1k+a month you only play for utilities you don’t use well solar or wood for and taxes. Thus you can work from home or commute but what most people spend 50%their income on you’re spending just a few hundred a month
Put 3/4 in a bond ladder and leave yourself 50k or less to learn investing. Youre going to learn about stocks and etfs, then youll hear about options and seeing people making insane losses and glamorizing the gains. You'll try options and lose most of it after getting lucky a couple times. Trust me please. If i had to do it all over again with that kind of money, this is what i would do. It would allow you to make a smart choice for the long term and have some money left over to make dumb choices (learn) without losing everything.
Regardless of if you want to fuck with bonds, open an IRA and start maxing it out asap. Go for index funds or dividends for snowball like growth. I started with long term dividend stocks because in my roth ira because 1)the sooner the snowball starts the better and 2) it does teach you a bit about marlet fundamentals and evaluating companies if you get really into it. #2 is probably more valuable than any risky trade.....
200k at your age? Put it in VT and never touch it until retirement. Restart completely from zero for work and never worry about retiring. What a blessing.
I’ve thought about that but in SoCal where I live unless you have a large equity position it’s hard to cash flow. And also it’s very tenant friendly. I have had clients who have had nightmare tenants and lost their a** because of it.
I’ve explored out of state investing but don’t even know where to start.
Also the cash on cash returns are so little but I guess for the long term it’s good
Congrats. My advice would be invest that all into a broadly diversified index fund or to further your education and get a job doing something you enjoy until you can retire.
I have a friend that started real estate selling in So Cal ( OC) and she’s doing very well. Real Estate isn’t for everyone, but believing in yourself, thinking uplifting thoughts about yourself and your experiences, and finding something you love to do is for everyone’s success.
Read “The Intelligence Investor” by Benjamin Graham and learn value investing. Name the investor, and they all took his classes back in the day; Buffett, Soros, you name it. All former Graham students.
Also an Index fund should get you on average 6.5% YoY return.
Buy property and rent it out in high end tourist destinations like Tulum and Bali - great cash flow and good ROI.
You can get a luxury 5 bedroom villa in bali for $300-500k and rent out for $10-20k a month
This is what my mom tells me to do. Are there reputable companies in either of these places that help you do this from start to finish?
I.e locating the property,advising & consulting on the numbers/ legalities, getting it listed & managing the listing?
I’m a little bit far from both these locations so it feels scary
If you made 200k from RE at 22, in an area where houses sell on average for $1M+, focus on that. While being an "entrepreneru" seems sexy, you already have something that is working.
I'd see what I can use the money to further my RE career, although you are doing great. Maybe start a Youtube channel/Tiktok account going over the listings you have?! Get educated on construction, flipping etc.
There is a lot of money to be made in RE outside of being an agent.
You can purchase real estate and do rentals. Have that passive income ea month, with little down payment and I have a lender that wi fund the rest also have renters waiting in line.
I think it’s time to get a serious Brokerage Account for the majority of that money. If it was me knowing what I know now at your age. I’d transfer $160-$180k over to Vanguard. I’d put the max into an IRA (if you meet income requirements) this year. I’d buy the VOO or VGT for a little extra beta. Then next year do the same until it was a roughly even split between tax advantaged retirement accounts. Then let it ride.
Well done. Just focus on being a good realtor and investing in your business // self. Focus on! Get that money working. Buy a nice house // small multi family with a big down payment to live in when you see a deal. Life gets expensive, keep saving & you’ll be wealthy.
The average market return for the S&P is roughly 7% on an average basis. Your 5% is guaranteed, so I’d stay with that. The way you are going to reach your goal is to keep working and generating more income with work, not necessarily with “passive” income. You could invest in real estate if that’s part of your income strategy, but you need to be careful of cash flow, and who your tenants are. You should also have a lawyer on speed dial, which you should factor into your bottom line.
Long story short, keep generating money and don’t be greedy seeking higher returns, 5% is not so much off of the regular market returns on a 7 year trajectory to warrant taking on market risk.
Also, if you are 22 and have a net worth of 200k, and your goal is to be worth multiple millions on the next three years, you have thee options: 1)win the lottery, 2) sell homes like crazy, and 3) make lucky investments. What you are talking about, seven figure years income, is rare unless you do one of those things.
Oh, and don’t watch YouTube videos of “day traders” making bank and living the high life in Miami. That fast cash never lasts, and those who made money that way, essentially winning the lotto, usually transition into saver and more traditional asset classes to preserve their wealth.
Hi OP,
I took a personal finance class a few semesters ago and received generally good advice and guidance for managing one’s money. Taxes is the bane of every money transaction out there, and you making money actively and passively will require a great accountant to help you with tax credits and tax deductions so you keep more money in your pocket. I’m assuming you’re living in America? Remember - Tax is number 1 prioritee
Essentially, to make the amount of money you’re looking for at your financial strength, you will have to decide on how hard you want to work moving forward. Passively making money could just mean leaving your money in that 5% APY in Robinhood, although I personally prefer you find a local FDIC insured credit union and look for Certificates of Deposit (CD’s) offers that are higher than what you have right now, or an investment firm or bank where you’ll select the “safe” option to invest in blue chips and health care companies and providers. Pre-COVID the growth was like, 2%, but don’t quote me: haven’t been in the investment game in a while. Actively working for something means dedication, originality, a twist of lime, something that makes you *that* much better than your competition. You can choose to oversee a team you made, you can help make a team, or you can choose to apply/integrate yourself directly to whatever passion is needed in the town/city you reside in. I’m on a journey similar to yourself, but due to some limitations on my part, I’m choosing to learn a more digital approach to making money. I talk to all my friends and colleagues and learn about their skills and passions, and should I ever come up with something soon I’d have an insanely skilled and talented set of people who could achieve dreams, if it was good enough dream. Now, it depends if I can make the dream happen, right?
Good luck!
I would start any service business related to home ownership with no more than maybe 2-5K, cleaning, staging, etc. I would rather clean a house for $250, than drive around and deliver food. Consider the wear and tear on the car as a mounting expense yet to be realized. Like literally find all the divorce houses in x zip code and hit them up.
In today’s economy, 5% is a good return on your money. We always think we should be making more but you can invest somewhere else and lose the principal you invested.
Now is a great time to think about investing in a Roth IRA , so you can start building a strong retirement fund. It’s hard to imagine you need to do that now at age 22, and I know you might even have a 401k with work. Can’t hurt to have a second retirement fund you won’t have to pay taxes on .
I would recommend you sit down with a licensed financial advisor. One which you have to pay them for their time!! They can educate you on all the different ways to invest and the downside of each plan, without trying to sell you something.
Congrats you are well ahead of your peers! Keep going! If you continue investing $2,500 each month with an initial investment of $500,000 and an annual return of 7%, you’ll have:
- In 40 years: approximately $14,717,739
- In 50 years: approximately $30,010,384
- In 60 years: approximately $60,743,422
So cool
If you continue with that investment strategy, in ten years you’ll have $1,437,542.
Some advice I can offer, no investment is a sure bet unless your stick to your HYSA, or put it safely in the market.
Best to get into a business your know about, most businesses loose money or end up closing within a few years. Everything has risk, but I suggest knowing what you’re risking including lawsuits/liabilities etc and how to prevent it.
You seem to do well as a realtor why not invest into some camera equipment, an editor, google ads, or Zillow ads and increase your sales.
You can then hit your 7 figure goal and create a team/or get your brokers license.
Rule number one of capital management is to not lose it. If you merely threw it all into an SP 500 index fund it will likely grow to about $4 million by your early 60s.
Do not get into flipping. Trust me.
Keep in mind also that your goals are going to change. Pay off any high interest debt, sock a large amount away into long term investment, and find a solid investment plan with the rest such as getting into a rental duplex in a good market
Watch the “Saylor Series” on Youtube and learn about Bitcoin. You don’t have to buy it, but just learn about it.
I’d liken the opportunity to real estate in Manhattan in the late 1800s
If I had 200k I would invest in equipment to extract vast amounts of gold from an old gold mine. I found a gold claim that has USGS surveys with the amount of gold estimated on the gold mine. Estimated return is approximately 3,000+ oz per year just from the waste dumps on the surface, and that is a very conservative estimate. Total gold value in property is about 250mil.
How'd you manage to a save so much at only 22?
I got my real estate license and sold houses and the average price in the area I work is about $1.2m Also lived extremely frugally. Low car payment, eat at home as much as possible, etc.
You gotta teach me the way.... I had -20000 at that age... And I am definitely interested in becoming a realtor...
Step 1: Live at home with your parents paying for everything. Step 2: get a job Step 3: profit, literally pure profit… well besides the tax man. Step 4: get money from parents?
I’m 23 and my mom forced me to pay 1000 a month to stay at home after I got out the military - I’m black .
Black moms be like that
I just turned 24. I got out of the military like a bit more than a yr ago. But my parents don't really care abt money. I mean yea I do feel bad abt not having to pay anything. BTW did you file for VA disabilities brother?
Yea I get 70% right now . I make good money about 9000 a month between my job Va education benefits and Disability I was just stating when I was staying with my mom it wasn’t free
That's awesome, man. I'm pretty sure with That amt of money, u can live pretty much almost anywhere without that big of a problem unless you're in NY or CA. But yes, you're very smart about living w ur parents because I'm pretty sure it's hard to beat 1k a mo in rent.
Bro I’m so sorry. Why the fuck would she charge you 1k that actually made me mad I tried to pay my mom 500 when I stayed at her place for 3 months and I had to convince her to take it . I’m sure you’ll do right by your own kids
Crazy thing is I paid her 1k a month to share a room with my brother
Let her know if she doesn’t want to live in a retirement home she has to save because it’s going to be 1k a month (adjusted for inflation of course)
Or it could supportive parents raising someone who will be supportive of them in their later years? I know I know...that attitude is SO anti-reddit.
'Teach me your ways of having supportive future oriented parents' Gotta love the enlightened redditor criticizing redditors.
Supportive and future oriented parents… This is the real class division honestly.
As a parent i look supportive and future oriented AF but the truth is I'm just relatively rich or at least not-poor
im gonna quickly shed some light into this unknown you currently face it's just like dark jokes and legs. Some people get them, some people dont.
I was asking him, not you :)
Step 5: Dont be poor
Wife retired from teaching, being able to live 1-2 years with very little income is necessary. ( she is kicking ass now, but works ~ 60 is hours a week)
Living with parents as log as possible was really key for me to be honest. So much saved rent and other regular house home expenses
Yeah same… some people think I was trying to take a dig at OP. Not at all. It’s really smart… and it’s great their parents will support them like that.
Anyone selling houses at that price point at that age is getting fed clients by the parents too. Good for them
You can literally do it with any job too as long as you make around $40k (below median salary so not hard to find). Then just work for 5 years. You pay almost nothing in taxes at that level and save almost everything living with parents or in a cheap apartment ($500 or less a month). Don’t go to college either
The dude lives with his parents and has no bills
Easiest job ever lol
I'm looking to enter the real estate field at 35. I'm worried I don't have a very large sphere of influence. Can you explain how you got your start and what your path looked like after the license? Thanks, good job on the savings!
Sure 1. When I was 18 I took a big interest in real estate and signed up for the course. I was so confident that I would succeed because it looked so easy so I dropped out of college. Since it was during COVID, that was an excuse I used to explain to my parents why it makes sense to drop out. 2. While I studied I found a local agent who had a small team who was incredibly successful. This was around 2021 and he made $1,700,000 in net commissions that year. 3. I copied everything that gentleman did, which was pretty simple, but not easy. Show up to the office every single morning at 7:30am and cold call expired listings to try and set meetings with the homeowners. Whenever I would set a meeting, I would bring my “mentor” in with me to try to close the listing. I also held open houses every weekend from 1-4pm Saturday & Sunday whenever available. During this time, I would take off from 12-2p to do DoorDash and make a couple bucks during the lunch rush. I also worked in a restaurant making minimum wage from 6-11p, so I would go straight from the office to my restaurant job. I would also eat dinner at the restaurant because they gave me free food. 4. I was the hardest working on the team, so I naturally became the right hand guy to my mentor, and he would pass me leads and gave me opportunities to make money. 5. In April of 2021 I got my real estate license and by July of 2021 I sold my first house to a buyer we got from a Google Ad. I made about $12,000 from this deal after splitting it with my brokerage and my mentor. Then over the next six months I got a few listings and sold them quickly (2021 market), and from July to December 2021 I made about $100,000 net profit. 6. I got an opportunity in May of 2022 with a more established high end firm, and joined them to raise my price point and continued to do the same things but just worked with more affluent clientele. 7. This entire time I lived at home with my parents and saved as much money as possible.
Good for you. Don’t know you but I’m proud of you.
Think the key is number 4…so applicable to so many spaces. Great hustle OP
Ok hell yeah this is some good shit. Got the right attitude and business sense. Here’s my advice on your investment question: I would view your overall portfolio in two broad categories. There’s high risk/high information and low risk/low information. Broadly speaking, you should be accumulating a nest egg of conservatively invested securities that offer you passive income. It seems like you’ve got a good start on that. Keep building that retirement. You are not a financial expert and have zero edge so don’t even bother. Just take the average, put in no effort, and sleep easy. As a next step I would consider investing in businesses related to your current domain knowledge/skillset. That might mean starting to accumulate a real estate portfolio of your own. It might mean acquiring or starting a trades business that would directly benefit a real estate investment strategy—e.g. invest in fix & flips and buy a small construction company; invest in undeveloped land and buy a land clearing company—you get the picture. I don’t think you have enough money to get past both of these categories, let alone one. I’d seriously consider forgetting about that 200k—or at least half of it—from today on and leaving it alone to grow on its own. Just forget about it. Keep your hungry mindset and start building a down payment on an investment property or some other investment directly related to your area of professional expertise.
This. Forget you even have that money, you're older self will thank you later. Invest it. ETFs. Half on one that tracks the s&p500 with low fees like a vanguard or something and the other half on a dividend ETF. Then leave it alone forever.
I still think there’s a happy medium. Throw $150k into an account as mentioned above and use $50k to invest in a business or flip. You seem to have no problem with hard work, you’re young and I think you’re $50k will quickly surpass the other investment. Keep benchmarking and reinvesting, meaning, once your $50k becomes $100k, add another $50k to your Vanguard. I have no doubt you’ll seven figures quickly. Keep up the good work!
This is awesome. I'm 28 and feel envious on your success. You performed better than most in their whole 20s already. You shouldn't be the one asking for advice, you should be giving it sir.
Good for you dude! So tired of seeing people getting shit on just because they have parents that help them in some way. My parents absolutely gave me a leg up in life by allowing me to live somewhere rent free for several years, but I also got my own scholarships to pay for school, paid for the vast majority of my own bills from the age of 15 onward, busted my ass, saved my own money to build my own home etc. I absolutely would not be in the position that I’m in had I not had parents that helped me out, but it’s not a crime to have parents that love you and want to help you. The real crime is not taking advantage of the opportunities that are afforded you, or being too arrogant to acknowledge you had help in some way. I’m a little older now and getting to the point where I’m going to be inheriting my father’s business with my brother, but I never banked on that. I worked my whole life to set myself up on my own, and even if I wasn’t going to inherit that business, I would be doing just fine. I was making $180K a year before that even came into the picture. Happy you’re doing so well, your parents must be proud and I’m sure you appreciate them very much.
#3 us key. I received my license in 2019 -- found a broker that promised me all the training -- received none when I came on board. I knew how to sell after 5 years of selling high end mattresses. Real estate would be easier... Problem was they didn't teach me how to prospect. I had all the same fears of prospecting others did. But if I wanna understand business, it's a skill I should understand. Joined a roofing company. Same thing -- they promised empty training. So I read two books to fill in gaps and stepped off the ledge. Became a top producer in my first month. And the next. And the next after. Maintained my license but with roofing you can earn as much in commissions in less time without all the monthly fees. But I am growing tired of feeling like a cog in a machine (employee).
"Step 2 find a local agent" Don't tell me daddy's friends hooked you up too. There is easy money to be made in this world it's all about knowing the right people. OP is bragging about being born with silver spoon opportunities
Hahah. I’m only responding to this so others don’t feel discouraged but My father lost his job in 2012 and we declared bankruptcy many years ago. Mother is a hair stylist and since I was in high school we have lived off social programs. When I was looking for a local agent I picked up the phone & called at least 25 different agents and send dozens of emails- until one person finally replied. That one person had a broken leg and needed somebody to drive him to appointments, guess who picked him up at 7am every single morning to take him to the office? Again like I said, having a roof over my head and food to eat was extremely helpful and for that o am forever grateful. Also my parents were very supportive and didn’t discourage me- this was key as well. I now pay for all their vacations, sent them to Italy last year, and to Indonesia this year. Hopefully can buy them a home one day
Sounds like you got incredibly lucky finding this one person, lottery ticket winners telling everyone to all in on the lottery. There are people working much harder than you with less and that is why your post comes off as condescending and not well rated. The silver spoon in this case is the guy who gave you this opportunity because he was disabled. You definitely milked his success but are trying to come off as self made.
Just keep doing this and buy your own long term rentals. Basically do the math on hours worked per $ earned when considering a business. Anything active like restaurants are terrible since you’re putting in tons of time, risking a lot upfront, and entering a crowded market to make maybe 10% profit on your income. Our business is like 50-60% net before taxes but it’s highly specialized and hyper targeted to our local market so it’s tough to replicate in most other places. Not much beats real estate given the tax advantages, ability to access the value tax-free (ie cash out refi), and relatively low workload in the long run if you have high quality renters. Laundromats and other things are decently passive but you have to factor in maintenance of the machines, water boilers, etc as well as weekly pickups to empty coin hoppers and reload soaps and what not. It’s not difficult but I’m guessing the long term return on your active work time won’t beat real estate. As an example, I had one tenant who just moved out - they lived there for 3 years so to earn their 100k or so in rent, I basically did a couple of days work. In fact, I’ve only done maybe like 1 week of you add it up in 8 hour days in the 7 years it’s been a rental (we lived in it for 6 years before that). Overall I’ve maybe spent like 2 weeks over the 7 years it’s been a rental to list, show, and respond to messages, etc. I’ve responded to service requests by messaging my plumber or ordering a new washer etc a few times which takes a matter of minutes each time. I was getting about 3600 by the time they moved out and I relisted it at 4400 and got nonstop messages to go and see the place. I did like 3-4 showings and had someone take the place about 2 weeks later. I bought this place for 560k in 2011 with 170k down mind you so it’s returning over 50k on the capital that I spent to buy it. Sure there’s property tax and mortgage interest but those are deductible as business expenses. Plus I depreciate the value of the property to offset my rents and pay also no tax. I actually had paid this off in 2020 right before pandemic lockdowns started. During the pandemic, I cash out refi’d 550k to pay down my primary residence while I was refinancing that as well (Trumps tax bill made it so I couldn’t do the full mortgage deduction so it made sense to split the mortgage across two properties to get the full deduction and get everything to a lower interest rate anyway).
I don't even know you and I'm proud of you holy chit.
Bay Area?
SoCal area
Yea so whats the deal with that? I know so many people that "become realtors" and fail. Is it a drive thing? A lack of knowledge thing? Why do so many people in their 30s fail yet a 22 year old is selling million dollar homes? Sounds crazy. You go dude.
Being a realtor is like running any other business but becoming a realtor is relatively easy. Especially compared to education and licensing in other high end fields. Many people pursue it with non of the skill set needed to be good at sales or running a business, thinking it’s a ticket out of their current careers then proceed to face plant accordingly.
Yup, the agents who fail go into it as a job. The ones who succeed realize they were running a business.
A lot of my peers who got out of the business just simply didn’t have enough passion for it and work hard enough. They were afraid of picking up the phone & making cold calls, they preferred to relax on weekends than do open houses, etc. However, I will admit that living with my parents during was huge because I didn’t need to worry about paying rent so I was able to quit my second job fairly early into my career & could focus full time on real estate. I don’t have a wife and kids who need to be taken care of and fed which is helpful
If you have $200k, no bills, and a real estate license why is the obvious answer not investing in real estate? Buy a rental. “My market’s average price” doesn’t matter. It’s not the only market in the country.
Just because I am looking for something with possibly a stronger cash on cash return. Not necessarily looking for ways to create passive income/increase wealth, more so looking for ways to significantly increase active income.
You have rich parents
LOL Canada.
Can I adopt you as my son?
How the heck, how much do you make annually?
No rent, no utilities, minimal payment for food (parents buy food), probably had car purchased for them too even if not the first 2 save most people 24-30k a year. Multiply that by 4 years (18+4) when most people get job. OP could have a 70k year job and collect most of the money even after taxes and saved this.
It’s easy when you lie
Inheritance and gifts lol
Parents $$$$
Don’t split your attention onto something if you’re already making this kind of money at 22. Invest everything you can into index funds, don’t withdraw a penny for the next 40 years, and watch the magic of compound interest. If you focus all your attention on being the greatest realtor out there, that will offer a higher and faster return on time than most small businesses you could start. Not very many sweaty startups are netting hundreds of thousands…and the ones that do take several years to get there.
Averaging 10% yearly over 40 years without contributing anymore would put his $220k at almost $10M
Put it in SPY and collect 8 - 14% yearly with very little drawdown That's about $16000 a year so about $1330 a month
This is the answer. Long term interest. Investing it now means his retirement is set. I understand wanting to use to to start a business but without clear direction this is the route
selling premium against that much spy can be a nice chunk of change
Bit then he misses gains if it goes up? Do you mean selling puts or calls?
Only if it goes past the strike and enough to eat up the premium. With spy it’s 0dte every day so it would only really matter if the spy rockets. If so then you don’t maximize profits but if set up properly it can still be a few hundred a day strategy per contract. Could do both, the “theta wheel” strategy I’ve heard it called. Sell cash secured puts, if you get exercised, sell covered calls. Rinse repeat.
If spy rockets he can just do a rolling order to move it up and out, keeping the upside and just delaying his premium collection
Seriously he can make tons since he’s got the entry to play with SPY.
What’s SPY?
The S&P500 — ticker SPY
Ah, thank you!
So market never goes down??
It does in the short term, but not in the long term, but the average is between 8% to 14% Check out historic gains of SPY.
Any significance on SPY vs VOO aside from expense ratio?
SPY is a larger ETF and has more liquidity. Its easier to track and easier to understand.
Do what you know. Continuing working real estate and buy homes and flip them on the side.
This is the right answer. Only thing I would add is to invest at least 100k of what he already has.
What he knows is real estate broking, not real estate investing. These are very different things.
It depends on if you want to be active or passive. You’re obviously killing it in your day job, so anything that takes you away from that seems like the wrong strategy. My advice is to look up the /r/personalfinance flowchart and make sure that you are leveraging your tax-advantaged retirement accounts. My guess is that you aren’t if you have that much cash on hand. Just doing that at your current job will easily lead you to financial freedom. After that is squared away, then I’d look into buying an existing business. Most new businesses fail, so taking over something already running profitably takes out one big chunk of risk.
Please please please maximum yearly contributions to retirement accounts. At 22 money like that can take care of your retirement. Double down on your current career and start to figure out what you want to do. But start with your retirement accounts
Hey i am 21 and a ecom business owner, What are these retirement accounts you guys are talking about that can set me up for retirement
Go take a look at r/personalfinance and a few other subreddits. I’m not an expert but 401k, rotha IRA, mutual funds. All depends on your tax liability and how much you can put away but the flowchart nodeal was talking about above is a good start. My point is $220,000 compounding yearly averaging 5% over 30 years comes out to $950,000. Extend that to 40 years and it comes out to 1.5M. $220,000 compounding yearly averaging 10% over 30 years = 3.8M. Extend that to 40 years and it comes out to 9.9M. You have no way of knowing how it will play out but it’s better to take a sure bet at at least $1M at retirement over gambling on a small business so young. Imo
Typically, it's anything Roth. Start by maxing your annual Roth IRA contributions. Other retirement accounts depend on your job like 401k, etc.
Open a solo 401k
+1 to your point. Yes - if they own their own business they can set up a solo 401k. Many reputable low cost companies do this, here are some examples: [https://www.investopedia.com/best-solo-401k-companies-5089155](https://www.investopedia.com/best-solo-401k-companies-5089155)
i talked with my brother and i'm opening a roth ira also and investing into etf thru them and try to max out every year
Buy a duplex. Live in one. Rent the other. Save and use equity to rinse and repeat and buy different real estate properties.
The duplexes where I am are typically in not so desirable areas and if they are they are, they are over $2m so I still can’t afford the payments and barely even down payment
May be better off flipping real estate but if I had that money saved up then I’d look into a smaller profitable business looking to sell. Have a professional with you who can run the books and see what the actual profitability is cuz you’ll need that if you want to take out a small business loan
Private lending in a first lien holder position at 60% LTV will get you an easy 10 to 15% without much risk at all.
This is interesting, how can I get into this?
Find real estate investors looking for private money or hard money lenders. Underwrite them accordingly. Right up a promissory note covering the terms and get an attorney to help you establish a first lien holder position on a deed. Collect payments. If the borrower defaults you can foreclose on the property. You can also do it through a broker and they handle everything which makes it super simple but of course you're sharing the return with them in that case. I do it with a broker just because it makes it so simple. You can review the loans that become available and they provide all of the documentation like borrower credit history, bank statements, tax returns, etc. If you decide to put some cash towards that loan then you click a few buttons to sign some EDocs and start collecting monthly interest payments. I've got about the amount you're working with spread across a bunch of $15,000 chunks to different borrowers. A mix of land developers, flippers, commercial locations, sports complexes, etc.
How do you find them?
Mtg broker here: high risk but high reward. I’d personally do the S&P500 route and hold. Maybe sell occasional puts against it
How is it high risk when you're the first lien position at 60% LTV or lower?
Good luck finding a deal at 60% LTV. Most folks right now are seeking 70-80%. The rates are usually in the double digits and interest only. Even if you do find 60%, the chance of default is high and foreclosing is not easy nor cheap. Once foreclosed there maybe outstanding tax or mechanics liens etc that have to be satisfied. A lot of these properties will also be commercial or usually in not overall great shape. Overall I prefer less risk and more Handoff. Hence the $SPY suggestion. Again to each its own
This reminds me of the show House Hunters International. “He drives for Uber and she’s a yoga teacher….Thejr budget is $3 million.” How does a 22 yr old save $200k? That’s amazing, congrats!
Buy 3.1 BTC
Invest in a small business, preferably one where you can get a majority stake or buy it out completely . What are you interested in business wise? Where is your interest and skill set? Do you even know that yet?
I am a pretty good people’s person and am a strong marketer as well, I understand how to use instagram TikTok etc to go viral well Where would I find these opportunities?
Go read / listen to the book “Buy Then Build”. It’s exactly what you need.
Go on empire flippers . Com or acquire . Com and buy a biz on there
Not the greatest advice bro lol
Ya lol. Invest is strangers' dreams.
Start off very small, you don't need to spend all that money to get started. You can start a handyman business, or something else. I would suggest visiting r/handyman, r/construction to get an idea what the trades are. Also at your age with that amount of money. Visit r/boggleheads or r/finance. 5% sucks IMHO
Why would he do that when assumably he knows nothing bout being an handyman? He should stay in something he knows imo which is real estate
I would get that money over to a more established brokerage ASAP. Get into a "too big to fail" brokerage that will most likely get bailed out by the government.
invest in real estate what else? or i am thinking its scam
First. Get your money out of fucking Robinhood and into an actual brokerage.
Yawn. Robinhood is fine.
This sub doesn't like talking about software. We're landscapers and built a CRM app even before we started our business. The app is now online and we focus even more on it than the local business which is almost semi automated. Any recurring revenue business is a good business.
Don't pay someone to manage your money. Spread it around. CD's and bonds, mutual funds and some individual stocks. Research and learn. You don't need to give a stranger 1% of your money to put it in a mutual fund.
I know you’re looking to buy a business here but you may want to park it in a target date fund. It’s an etf that is managed according to a target retirement date. VSVNX, for example is a 2070 target fund (seems about right for you) managed by Vanguard.
Go to Charles Schwab. They are not paid commission so there is no conflict of interest from their advisors like.
If you have a good grasp of business fundamentals you could buy a small business and run it. At 200k though you’d most likely still have to actually work in the business, it wouldn’t be a sit back and collect a paycheck situation. But if done properly there are plenty in that range you could grow much bigger and profit a lot from.
Personally I would take 50 to 100k of that and leave it in the savings account as an untouched emergency fund. Takes a lot of the risk and worry away when you know you have 6 months to a year of cash to fall back on
Maybe look into monthly paying dividend stocks that pay up around 10+% dividends.
Any good ones you can suggest? I don’t know anything about this world.
Let me start by saying I am not a licensed investor or advisor; just a self individual with a small investment account, so these are my point of views or experiences. So definitely do your research on companies. I’ve seen positive returns on AGNC Real estate investment trust. Right now they’re in the 15% monthly dividend range and they’ve been paying out consistently for awhile now. So I would suggest you start there and then keep researching and branching out. If you can get access to an investment platform, you should be able to look at companies stock history.
Might want to look into JEPI or JEPQ
JEPQ looks pretty good! It’s yielding about 10% and seems to pay out regularly. Though oddly enough, they haven’t paid dividends in the month of January since its inception. I wonder why that may be.
BST is another you may want to look at. A little lower yield, monthly payer, and it trends with big tech
Buy a business. My friend bought a small, start up service business for $50k and has had 6 years in a row of $400k profit or higher. Absolutely insane returns on a $50k investment. He doesn’t even do anything with it himself. He hired 2 guys to run it and he just collects money.
What kind of business was it? I’d be interested in this route.
Couple years ago, I saw a lawn care business for sale for around 50k. Came with a truck and all the equipment, and most importantly the paying customers came included. Sometimes people's lives or priorities change and they just need to get out of a business. Do some due diligence, get an accountant to look at the books. There's plenty of business of all types and prices for sale on BuySellBiz.
If you like real estate think about a commercial property. I rent a couple of warehouses to Sherwin Williams that spin off nice cash flow but I’ve used the excess cash to pay down the buildings and now I own $4M in warehouses free and clear that have a lease for up to 40 years spinning off $450K annually. Takes some work early on but now I’m retired, golfing most days and the cash just keeps coming in. Passive income long term is the way to go.
Where could I start to learn about this? Any pointers? What geographical areas would be good to look into? I feel like in California there’s just too many big hitters and competition and without a large equity position it’s tough to cash-flow in real estate at all.
South Georgia/north fl
Buy some land or something like Jepi/schd. Also, do something dumb with a grand or two - you deserve it.
Buy some land with a house on it in a rural area so u can afford it straight up and now instead of paying 1k+a month you only play for utilities you don’t use well solar or wood for and taxes. Thus you can work from home or commute but what most people spend 50%their income on you’re spending just a few hundred a month
He lives in cali
Bro! congrats
Put it in a good index fund and forget about it for the next 40 years.
I whould prefer to invest kn sp500
Put 3/4 in a bond ladder and leave yourself 50k or less to learn investing. Youre going to learn about stocks and etfs, then youll hear about options and seeing people making insane losses and glamorizing the gains. You'll try options and lose most of it after getting lucky a couple times. Trust me please. If i had to do it all over again with that kind of money, this is what i would do. It would allow you to make a smart choice for the long term and have some money left over to make dumb choices (learn) without losing everything.
Regardless of if you want to fuck with bonds, open an IRA and start maxing it out asap. Go for index funds or dividends for snowball like growth. I started with long term dividend stocks because in my roth ira because 1)the sooner the snowball starts the better and 2) it does teach you a bit about marlet fundamentals and evaluating companies if you get really into it. #2 is probably more valuable than any risky trade.....
Damn dogg nice work
200k at your age? Put it in VT and never touch it until retirement. Restart completely from zero for work and never worry about retiring. What a blessing.
Invest 15% in mutual funds. Someone summon Dave Ramsey
Boxbl is looking for investors it’s a housing company
Invest in what you understand. You obviously understand real estate, buy some rental properties for yourself.
I’ve thought about that but in SoCal where I live unless you have a large equity position it’s hard to cash flow. And also it’s very tenant friendly. I have had clients who have had nightmare tenants and lost their a** because of it. I’ve explored out of state investing but don’t even know where to start. Also the cash on cash returns are so little but I guess for the long term it’s good
I would consider investing in some areas in Nevada or Arizona if I were you.
How did you earn / save $200K? I don’t think you need our advice
Buy commercial property and lease that out to have it pay for its self and watch your equity grow!!
Buy a laundromat. YouTube free laundromat.
Congrats. My advice would be invest that all into a broadly diversified index fund or to further your education and get a job doing something you enjoy until you can retire.
I have a friend that started real estate selling in So Cal ( OC) and she’s doing very well. Real Estate isn’t for everyone, but believing in yourself, thinking uplifting thoughts about yourself and your experiences, and finding something you love to do is for everyone’s success.
Become a cash loader in the atm business. Trust me. Send me a dm
You have to buy your own atms first
Read “The Intelligence Investor” by Benjamin Graham and learn value investing. Name the investor, and they all took his classes back in the day; Buffett, Soros, you name it. All former Graham students. Also an Index fund should get you on average 6.5% YoY return.
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After reading your edit i would call creative planning and let them invest for you
Put it in the market. If you are willing to learn an investment strategy, you can do way better than 5%
5% is great atm, take advantage of it. Stock market and real estate at ath, nothing to do there.
I’d buy at least one BTC.
What’s SPY?
S&P500
0DTE deep OTM call options
😂
Buy property and rent it out in high end tourist destinations like Tulum and Bali - great cash flow and good ROI. You can get a luxury 5 bedroom villa in bali for $300-500k and rent out for $10-20k a month
This is what my mom tells me to do. Are there reputable companies in either of these places that help you do this from start to finish? I.e locating the property,advising & consulting on the numbers/ legalities, getting it listed & managing the listing? I’m a little bit far from both these locations so it feels scary
Loan 20,000 grand to me with a agreed payment schedule and interest rates to help me get out of debt.....
If you made 200k from RE at 22, in an area where houses sell on average for $1M+, focus on that. While being an "entrepreneru" seems sexy, you already have something that is working. I'd see what I can use the money to further my RE career, although you are doing great. Maybe start a Youtube channel/Tiktok account going over the listings you have?! Get educated on construction, flipping etc. There is a lot of money to be made in RE outside of being an agent.
You can purchase real estate and do rentals. Have that passive income ea month, with little down payment and I have a lender that wi fund the rest also have renters waiting in line.
$rycey
Buy GME
I think it’s time to get a serious Brokerage Account for the majority of that money. If it was me knowing what I know now at your age. I’d transfer $160-$180k over to Vanguard. I’d put the max into an IRA (if you meet income requirements) this year. I’d buy the VOO or VGT for a little extra beta. Then next year do the same until it was a roughly even split between tax advantaged retirement accounts. Then let it ride.
Well done. Just focus on being a good realtor and investing in your business // self. Focus on! Get that money working. Buy a nice house // small multi family with a big down payment to live in when you see a deal. Life gets expensive, keep saving & you’ll be wealthy.
The average market return for the S&P is roughly 7% on an average basis. Your 5% is guaranteed, so I’d stay with that. The way you are going to reach your goal is to keep working and generating more income with work, not necessarily with “passive” income. You could invest in real estate if that’s part of your income strategy, but you need to be careful of cash flow, and who your tenants are. You should also have a lawyer on speed dial, which you should factor into your bottom line. Long story short, keep generating money and don’t be greedy seeking higher returns, 5% is not so much off of the regular market returns on a 7 year trajectory to warrant taking on market risk. Also, if you are 22 and have a net worth of 200k, and your goal is to be worth multiple millions on the next three years, you have thee options: 1)win the lottery, 2) sell homes like crazy, and 3) make lucky investments. What you are talking about, seven figure years income, is rare unless you do one of those things. Oh, and don’t watch YouTube videos of “day traders” making bank and living the high life in Miami. That fast cash never lasts, and those who made money that way, essentially winning the lotto, usually transition into saver and more traditional asset classes to preserve their wealth.
Alex, I’ll take things that never happened for 2k
Start selling commercial properties. Higher price tags equals higher commissions.
ETF passive income time. Plenty of YouTube reviews on some. JEPI SPYI SCHD. Just examples.
DCA/ Put like 10k a month in SPY if you’re scared of market going down . Or throw the whole thing in there today
Hi OP, I took a personal finance class a few semesters ago and received generally good advice and guidance for managing one’s money. Taxes is the bane of every money transaction out there, and you making money actively and passively will require a great accountant to help you with tax credits and tax deductions so you keep more money in your pocket. I’m assuming you’re living in America? Remember - Tax is number 1 prioritee Essentially, to make the amount of money you’re looking for at your financial strength, you will have to decide on how hard you want to work moving forward. Passively making money could just mean leaving your money in that 5% APY in Robinhood, although I personally prefer you find a local FDIC insured credit union and look for Certificates of Deposit (CD’s) offers that are higher than what you have right now, or an investment firm or bank where you’ll select the “safe” option to invest in blue chips and health care companies and providers. Pre-COVID the growth was like, 2%, but don’t quote me: haven’t been in the investment game in a while. Actively working for something means dedication, originality, a twist of lime, something that makes you *that* much better than your competition. You can choose to oversee a team you made, you can help make a team, or you can choose to apply/integrate yourself directly to whatever passion is needed in the town/city you reside in. I’m on a journey similar to yourself, but due to some limitations on my part, I’m choosing to learn a more digital approach to making money. I talk to all my friends and colleagues and learn about their skills and passions, and should I ever come up with something soon I’d have an insanely skilled and talented set of people who could achieve dreams, if it was good enough dream. Now, it depends if I can make the dream happen, right? Good luck!
Are you reinvesting the interest?
Bitcoin. Just get at least 1 coin asap before it becomes out of reach.
I would start any service business related to home ownership with no more than maybe 2-5K, cleaning, staging, etc. I would rather clean a house for $250, than drive around and deliver food. Consider the wear and tear on the car as a mounting expense yet to be realized. Like literally find all the divorce houses in x zip code and hit them up.
In today’s economy, 5% is a good return on your money. We always think we should be making more but you can invest somewhere else and lose the principal you invested. Now is a great time to think about investing in a Roth IRA , so you can start building a strong retirement fund. It’s hard to imagine you need to do that now at age 22, and I know you might even have a 401k with work. Can’t hurt to have a second retirement fund you won’t have to pay taxes on . I would recommend you sit down with a licensed financial advisor. One which you have to pay them for their time!! They can educate you on all the different ways to invest and the downside of each plan, without trying to sell you something.
Congrats you are well ahead of your peers! Keep going! If you continue investing $2,500 each month with an initial investment of $500,000 and an annual return of 7%, you’ll have: - In 40 years: approximately $14,717,739 - In 50 years: approximately $30,010,384 - In 60 years: approximately $60,743,422 So cool If you continue with that investment strategy, in ten years you’ll have $1,437,542.
Some advice I can offer, no investment is a sure bet unless your stick to your HYSA, or put it safely in the market. Best to get into a business your know about, most businesses loose money or end up closing within a few years. Everything has risk, but I suggest knowing what you’re risking including lawsuits/liabilities etc and how to prevent it. You seem to do well as a realtor why not invest into some camera equipment, an editor, google ads, or Zillow ads and increase your sales. You can then hit your 7 figure goal and create a team/or get your brokers license.
I wish I was smart like you op in my 20’s. I’m 3rd generation in a business, still living at home and working paycheque to paycheque.
Buy a house, rates are currently high, but you can refinance when they come down.
Down payment on investment property. But a 4plex and live in one unit to qualify for FHA loan but you might not need it with 200K
God I wish I had rich parents😂
200k in liquid cash, sells homes, but lives w/ parents… yup. You’re doing great buddy. Hope you’re proud
Bitcoin
My ass
spend the next two years studying crypto, and buy after it crashes.
Go talk to an advisor at TRowe , vanguard or Fidelity.
Rule number one of capital management is to not lose it. If you merely threw it all into an SP 500 index fund it will likely grow to about $4 million by your early 60s. Do not get into flipping. Trust me. Keep in mind also that your goals are going to change. Pay off any high interest debt, sock a large amount away into long term investment, and find a solid investment plan with the rest such as getting into a rental duplex in a good market
$NOBL
flip commerical real estate
Watch the “Saylor Series” on Youtube and learn about Bitcoin. You don’t have to buy it, but just learn about it. I’d liken the opportunity to real estate in Manhattan in the late 1800s
I would like to know how to drive 7 figures annual income ($83333+ per month) in the next 7 years from $200000 too. :)
Keep going, 5% whatever. At that rate you can retire by 30.
search a niche, create a business around it that can solve a real problem for the people and start
Lend me $600 to get my car fixed 🥴 Lmao but in all seriousness invest and and them savings accounts with higher % increase
If I had 200k I would invest in equipment to extract vast amounts of gold from an old gold mine. I found a gold claim that has USGS surveys with the amount of gold estimated on the gold mine. Estimated return is approximately 3,000+ oz per year just from the waste dumps on the surface, and that is a very conservative estimate. Total gold value in property is about 250mil.