I am 24 What did you have to do to get a ferrari?

buy a lottery ticket

 

Good post. I think the 'automotive-ADD' point is important for the reason you mention (depreciation), plus the fact that for those of us buying older cars it takes some time to get things sorted. After a year or so, I'm more confident in my car than I was the day I bought it, and I know that all the critical stuff -- fuel lines, brakes, cooling system, etc. -- is in top shape now.

Unless you can devote your full attention to your cars, I think there's some benefit to buying a Ferrari you plan to hang onto for at least a year or two before 'flipping' it.

And my Fiat X1/9 was good training. Very cheap, very involving, kind of exotic, rare, fun to drive. (About as fast as a mail truck, however...)

 

The writer of "Rich Dad, Poor Dad" has also been running around with Trump poo-pooing mutual funds and traditional investing and touting the huge gains that are waiting for you in real estate. Nevermind the fact that real estate can be pretty risky.

Save, save, save. Spend less than you make. Right now, I am on a budget that I adhere to. I am putting up a bunch of money. This is what you must do. Use Excel to create a spreadsheet.

Education is key. The more education you have, the better. It is not a guarantee to riches, but take a look at the majority of high school dropouts; they ain't drivin' ferraris.

I don't own a Ferrari, but sound financial principles will enable anyone to achieve the level of success necessary for Ferrari ownership. Find something you really love to do, work hard, and work for yourself, if possible. Put in 60 hours/week. That's how you obtain success. Create it, dude.

 

See what happens when you don't stay in school? You never learn to spell words like steal and end up looking silly on public internet forums.

 

Man, I was thinking the same thing when I saw that!!!!




And regardless of what we tell you... Education offers the hands down greatest odds of Ferrari ownership.
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And to think that I thought working underground in a mine earning AU$100K p/a at 17yrs old would have the best odds of Ferrari ownership.
Education Rules!!

Quote Apollo Creed from Rocky 1......."Stay in school. Be a Doctor, be a Lawyer, carry a leather breifcase. Forget about sports as a profession. Sports make you grunt and smell. Be a thinker...........not a stinker."

 

One way to have a good condition older car is to buy it new and maintain it for 30 years or so. When you buy a used car, you have to take into account that you're buying someone else's problems.

Of course, the cars built today aren't really designed to outlast their electronics. (20 years or so.)

On a 12 year old Celica, I had to replace the factory suspension with coil-overs to get the alignment back -- the factory parts have no adjustment for wear.

Short of an open track day, sometimes the less capable machines are more fun -- lower limits can be more fun to explore. It's getting tough to find a place to challenge a Ferrari's limits.

I thought maybe he was talking about joining the auto worker's union. The people who wrap steel around cars are the next generation of shop stewards: With cars going to plastic, the people who specialize in steel bodies will be pushing for the union to protect their jobs.

 

Architecture marries up well with real estate development, which tends to make nice sums of money. So, you're not in a bad position. In fact, I was stunned to get an architectual estimate recently... made me think about going to school to learn it if only for the savings! Also, its impossible to find an architect with spare time around here.

Advice - buy a house, don't rent. Even in this "depressed" real estate market, opportunities exist and you'll grow your net worth while netting some nice tax benefits. I bought property as soon as I left college and it was 100% the right move.

Finally, you are incorrect in assuming that if you could buy 1 Ferrari, you can afford to buy 2 or 3 more. The real deal is maintenance and repair, which seem to add up much more rapidly than the costs on Hondas.

 

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be smart, have a strong desire not to be poor and be willing to work harder and longer than the next guy.

Ray

 

I have been investing in Real Estate since i was 19 and had just finished highschool, I never went to collage. I also invest and trade in the stock market on the side. I have bought and sold over 15 properties in the past three years (im 22 now). I own a 3family and a 2family for long term rental income and retirment which i will keep adding more properties to. I do this full time (make my money work for me) and have alot of fun, i play golf atleast 4 days a week when the weather is good. Although i have enough cash saved to buy an Fcar in cash (355 or 360) i still havent becuase that would be reckless. Sure i would have a nice Fcar but i would also be broke and right back were i started. I want to be financially free first, I want to be able to spend 20% or less of my liquid net worth. Therefore i will need to have 600,000k cash in the bank before i will allow myself to drop 120k on a 360. I figure this will take me atleast another 3 years. This may put things into perspective for you, comming from somone who is in your age group and started with absolutly nothing. Some people are satisfied by working for the man and just getting by others like myself are not. It really depends on how bad you want it and how hard your willing to work for those goals Nothing comes easy and it takes a certain type of person to make something from nothing. I have many freinds my and your age whom want it all but dont want the hassle that comes with it. It takes alot will-power and hardwork so you'd better be up to it. Read Investment books like others have said and make your money work for you, dont make other people rich by working for them. Good luck.

 

Did you have an inheritance or win the lottery to get you started in the real estate business? That is alot of money involved for a young guy straight out of school.
As mentioned in my earlier posts, my workmate's son, 17yrs old, has a job earning AU$100K and he would have trouble trying to buy and sell that many homes in todays market. The last 5 years has been hard for 1st home buyers worldwide, yet you claim to have bought and sold 15 of them.........and you invest in the stock market?

 

I am not trying to brag, just put things into perspective for the guy. I certaintly dont consider myself wealthy by todays standards or my own standards. I guess it all depends on what "you" (each person) considers wealthy. I definetly took a different approach and dont regret it but I dont have a college education that i can look back on with pride like many others can. There are many ways to purchase properties using little of your own money, Many of my deals have been very creative (Assuming loans that are non-assumable). They have had to be because i started with nothing at all. Motivation is the key factor not money to start with. If you are motivated you can make anything happen whether it be doing creative flips like myself or getting 100% financing on properties. The only loans i have ever taken out and personally gauranteed have been on my two multi-fams that im holding long term. The market in the U.S. has been extremly easy for buyers inpart because of the aggressive lending practices as of late. I get many calls from these people who bought at the top of the market and overpaid with adjustable rate mortgages that some scrupulous lender got them in, now there monthly payments have gone from $800.00/month to $1,900.00/month and there facing foreclosure. Im not exactly sure on the figure but i think it was 15% of all subprime loans are now in default. Anyways my point wasnt to brag and i certaintly dont have to prove myself.

And NO i didnt win the lottery or i would already have a Ferrari and definetly no rich relatives, sorry to dissapoint mate.

 

Of course you dont........

Every Country is obviously different, as I did not understand 3/4's of your post about "assuming loans, subprime loans, multi-fams" ect.......

Anyways............the reality is. That my young friend (even myself. I am on the same wage, but I have 2 properties and my 348, all being paid off by me) could not buy and sell 15 properties in 3 years. To begin with, each property here, undergoes a 1 month contract. The market here has gone up 200% in the last few years. The average home here is now around AU$300K+. You have to save a 10% deposit to buy a home here, which you have to prove you can save that money, not money given to you or something along those lines. AU$100K gross is around AU$70K take home. Of that AU$70K, you have to save at $30K for a home deposit, not including a few AU$K for fees, stamp duty ect...... That will mean that you can realistically afford 1 house per year. Saving $30K deposit, which is AU$2500 per month, is still hard to do, but very acheivable. 3 homes, 3 years, IF you are lucky. Sh*t happens along the way.

Another way............buy old, thrashed homes, then fully renovate inside and out and re-sell the home to make a profit. I did that, and currently live in this home. It took 1.5 years to renovate this place, after work and on weekends with my brother. That was when were both working Mon-Frid. Big job. Can be done, but takes time. Still would take longer than 3 years to do that to 15 homes. I have a workmate, who is on a different shift. He is a builder by trade, but works in the Mines driving trucks. He works the same roster as me, 4 days on, 5 days off. Since he moved here 1 year ago with his family, he has bought and sold 2 fully renovated properties that he worked on non-stop on his 5 days off from truck driving. He made good money on those homes, but again, could only manage 2 homes in 1 year. Big job as stated.

The point being, I dont really see how you could buy and sell 15 properties, for any sort of profit in a market that has already boomed. Buy, then resell and make money? That is selling 3 homes per year. Every 4 months or so, you sold a home and made a profit? Right? Did you do anything to them to make that profit? You would have had to make some money to be able to buy the next property? Or am I going silly here?

Money makes things happen, then motorvation is the key to keep the ball rolling to further your property portfolio or business ventures ect.
How did you buy your 1st home?? MONEY? You did not get it for free...........or did you? Money makes the world go around young fella.

 

This past year of 2006, I have met 4 F-chatters. All of them are great guys and all of them own or have owned Ferraris. From what I have seen, the most common thing they share other than their cars, is that they have their priorities in order. Which goes 1) Family 2) Career 3) Home 4) Ferrari. When they have 1-3 taken cared of, then Ferrari comes into place. Their kids are not going to go without braces because their Ferrari needs brakes. They are not going to skip out of work early in the afternoons because the weather is nice and they want to go driving. Their house is not going to go without new shingles and gutters because their F-car needs a 15k servicing. Have your priorities in order, and it will come. You want to be not only a Ferrari owner, but a successful Ferrari owner. You want to do it right.

 

Yes, you are a hero.

Indeed.

In the U.S. 100% financing is very common and 10% down is no longer required unless its considered an investment property, even then theres ways to get around it.

Yes, many of my deals have been rehabbs. Think about how long it takes you and your brother to do a house then think how quick it would take if you hired a crew of 5 people working everyday while you play golf like myself or work your job in the mine like you do and then just manage them. Genius huh?

Yes i see the point being that your trying to be sarcastic, maybe im imagining things or your just high on weet grass? I will not do a deal unless there is $25k in net profit, further if money partners are involved then i will only take deals with $50k profit and up because they are getting cut in on the action.

Again, must be more of that weet grass juice. The phrase "It takes money to make money" is old and outdated. Im amazed you have made it as far as you have thinking like that but to each his own and good on you. My first deal was done with zero money. I put a property under contract for 70k (it needed major work 50k but was worth 200k fixed) I found someone willing to pay 100k for it in the same condition before i even closed. I assigned my contract rights over to them and i cashed out the difference (30k) using NO money of my own, well except the $10.00 dollars i used as a down payment.

To everyone, im sorry this turned into a pissing match/real estate discussion. My intentions were to give an example of what it takes to make the kind of money that ferrari ownership entails. This is the reason i dont post often because of people who own one ferrari and they think they rule the world.

 

anybody can own a ferrari the trick is not letting it get repo'd the following month!

 

Oh, dont get me wrong. I believe every word you posted.
And I dont think I rule the world.........I just think you are pulling your dick.

On that final note.............
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Call me if you'd like, id be happy to school you on all matters concerning real estate, my fee is $300/hour, seriously. http://www.supremect.com/

 

I had no intention of posting again, but this made me laugh pretty hard. Did the 10 bucks seal the deal?

I know a little something about real estate. No bank is going to work with a 18 year old who has no money down. No bank is going to give you a loan. THAT INCLUDES ASSUMABLE LOANS. You can't just say "I'll take over the loan". It does not work that way. The title is held by the bank, not the owner. That is why it is called a mortgage.

Now assuming the owner of the property did not owe money or have a mortgage, it is possible they would allow owner financing. There are things called Land Contracts where an owner typically provides the financing for a property for less than 5 years, and then allows part of that money to be used by the buyer to get a traditional loan at the end of the period. But once again, I doubt a seller is going to get locked into that type of contract with an 18 year old who has no money down.

But here is my burning question. You said you had no money. You purchased with $10 bucks down. But you had a crew of 5 people working 40 hours a week. Where did that money come from? Did the crew work for free while you played golf?

It is possible for people with knowledge to make good real estate deals. But the number you posted sounds ridiculous.

 

Explain this to us. I am waiting for your reply.

 

Did you not know, he had the crew of 5 working on an 'I OWE YOU' deal while he was out playing golf and sipping pina-colladas. The bank would laugh any 18yr old out their bank if they showed up asking for a loan with no money........or job in Jamesbonds case. He was out playing golf the whole time the renovations were being done. He is a genuis and to I think I thought I was doing ok in the realestate biz. Then again, if I did not buy my 348, I could have had 4 properties on the go at 25yrs old. Not too shabby.

 

Are you kidding me? You say you know something about real estate and then you say the bank holds title, this is not a car MORON. The owner of the property has title and has the ability to deed that title to anyone he so chooses by form of deed. Again i said i DONT get loans, Its called taking title subject to an existing mortgage try looking it up GURU. To answer your your burning question, this was an example of the first deal i did with no-money at all, i had to build up to be able to pay a crew to do rehabs myself and even then theres ways to get hard money loans if the deal is right or take out credit card loans to fund a rehabb. If theres one thing i have learned it is in business people dont care about your age, only how much money can be made in a deal. Im signing off now, this is rediculous.