2 million bucks right now, or $4,000 every week for the rest of your life?

[Maschine_Man]

You have 2 million cash.

You can put down half on like 8-10 multi unit properties, take out mortgages for the rest of it. Interest rates are insanely low right now. You invest in minimal renovations. You rent them out and you would start collecting rent right away. The rent roll would be much higher than your mortgage payments.

Or you can find distressed properties and/or short sales and forclosures... renovate them and sell them off.

Or you can even invest in a commercial lot and rent out the storefronts.

One thing all rich people have in common, they own land. They own properties.

Under the 4K a week plan it would be 10 years before you can invest at this level and that's assuming you saved every penny.

this must have been written same time I wrote mine, see my previous post

 

[Zero]

For everyone taking the 2 million and flipping it, can you provide me with a concrete plan to match or exceed $16,000 in monthly cash flow :jbhmmdup:? I'm genuinely curious as to how you guys expect to make that happen.

If you believe it...you can achieve it

 

[Blackrogue]

You keep moving the goalposts:

I first addressed the fact that "solid business returns" aren't necessarily guaranteed and that not everyone is meant or interested in being an entrepreneur.

Then you said that you don't need to be a "financial genius" and that you can put the money into an account. I provided an actual breakdown with what rates are actually available right now and showed you what the side by side earnings would be in the same time period and even conceded to an extent that some people may like dropping the money in a savings account, (although I wouldn't just put an entire $2MM in there and have no money to spend now). Plus you'd still make more money with the weekly $4K in the same 5 year period.

Now you're saying that bank rates aren't shyt compared to business returns as a retort lmao.

You just went full circle and ended up at the start of my whole post.

The fixed deposit rate in Kenya for that figure is 8.50 percent for three months.
I hope that answers your first question about how easy it is to make money off interest. Imagine what it's be like compounding. I went away from the interest rate argument because the rates you guys are getting are much worse than what we have.


Deposit Interest Rates in KES and Foreign Currency | I&M Bank

 

[Alpha Male]

this must have been written same time I wrote mine, see my previous post

Your scenario doesn't work as well because you won't have nearly as much equity in any of those properties. Putting down 10% on a house means your returns on rent will be minimal at best.

Of course over the long haul you will make money but with 2 million you can get the ball rolling right away and keep that snowball effect going and going until you're ready to cash out and/or leave it to your family.

 

[Blackrogue]

But you are assuming that ppl taking the 16K monthly, wouldn't invest.



you can start a business with 4k/ week as well. You can have a franchise, do real estate, anything you want. 16/month is a lot of money to work with.


if you took 10K/ month out of your money you could buy a house every month, rent that out, and still hold 6 k per month to live....quite comfortably while collecting your rent or reflipping those profits.
except now you are using the banks money to work for YOU.

it's a much safer investment, and the money stacks up pretty, you will enjoy long term investment and equity and assets.


10K at 5% gets you a 200K house. you do that 12 times a year? and you are sitting on 2.4 Mil just in property. that is now being paid off by your renters.

and that means you STILL have your regular 72K coming in that you can live real comfortable off of.

that is just YEAR 1.

do the same thing in year two, year 3, year 4,etc.

Anything you can do with 4k a week you can do with 2 Million scaled up

 

[moa213]

Hilarious. Even funnier was what he suggested doing with the $2 million...


So he's suggesting you take all of your $2 million dollars and park it in coca cola stock so that you can live off a dividend of $5,500 per month before taxes and is saying that's better than getting $4,000 a week, untaxed. nikkas actually dapped this post too.


nikka, I make more than $5,500 per month now, why would I do this dumb ass plan if I suddenly came upon $2 million???

Smart dumb nikkas of the coli acting like $2 million is $2 billion where you truly could live and enjoy your life whilst your money makes money in the background. Like I said in my first post, $2M is the right answer IF you truly know how to flip it and have the desire to do the work involved with flipping it. You ain't gonna sit on your ass and beat $4k/week. Oh, and even if you do know what you're doing, you're still assuming risk that things won't go as you planned. The choice is simple, take the $2M and spend your time continuing to chase more and more money or take the $4k/week and live a better financial life than your current one without ever having to work again.

Easy choice for me.

I actually have a friend who got lucky with the one time oil payout in Ghana close to 2 mil. And what you mentioned "spend your time continuing to chase more and more money". The guy is doing the same, really anxious losing money and waking up early to check his other investments buying and flipping lands. Yes he still made some profits on his lump sum but he will never have the free time and financial freedom some with 4K a week will.

 

[Obreh Winfrey]

You have 2 million cash.

You can put down half on like 8-10 multi unit properties, take out mortgages for the rest of it. Interest rates are insanely low right now. You invest in minimal renovations. You rent them out and you would start collecting rent right away. The rent roll alone would be much higher than your mortgage payments. Not to mention these homes will likely increase in value over time so long as it's not a destitute location

Or you can find distressed properties and/or short sales and forclosures... renovate them and sell them off.

Or you can even invest in a commercial lot and rent out the storefronts.

One thing all rich people have in common, they own land. They own properties.

Under the 4K a week plan it would be 10 years before you can invest at this level and that's assuming you saved every penny.

Just remember that they own properties that generate income, they don't buy properties to resell on the hope of turning a profit.

Spend part of the money on real estate

Apartment complexes or picking up properties that have tax liens

The tax lien houses have great potential cuz you can't get loans for em, it's cash only. That means the prices are bargains cuz it's less competition

My friend is looking at a 6 unit complex for like 400k

He's putting down 80k, and after expenses he will profit 800 per unit every month

Corporate subleasing for people that travel to Houston for cancer treatment. I was just talking to a guy who is subleasing 4 apartments long term for cancer patients and he profits 800-1200 per apartment....and he does absolutely nothing


There's plenty of shyt to do if you got the money

See now we get to the crux of my argument which is capital gains vs cash flow. If your plan is interesting for cash flow through vehicles such as rental properties, I can gel with that. The problem is, with the 2 million you may have more immediate working capital which opens more options, but you leave yourself open to losing it all through bad deals. Despite this, I'll give you two props for having some plans and not throwing vague statements at me. I'd still wager that the vast majority of 2 million takers have bad money habits and would waste it all.

 

[Alpha Male]

Just remember that they own properties that generate income, they don't buy properties to resell on the hope of turning a profit.

They do both.

The flip game and the rent roll game are both avenues to wealth.

 

[Maschine_Man]

Anything you can do with 4k a week you can do with 2 Million scaled up

right,

but one is just the safer investment.

4k/week is just like having money already invested and you are living off that interest.
that money is fixed and continues to come in.

IMO, you are starting ahead of the game by doing that. because you don't have to wait for your money to come in AND, this money is already "pretaxed" where as any profit that comes from those other investments will be taxed.

Your scenario doesn't work as well because you won't have nearly as much equity in any of those properties. Putting down 10% on a house means your returns on rent will be minimal at best.

Of course over the long haul you will make money but with 2 million you can get the ball rolling right away and keep that snowball effect going and going until you're ready to cash out and/or leave it to your family.

In all honesty, the rental income is moot, because the real investment is having the renters pay off your mortgage.

Any small profits from rental will just go back in a holding account to cover any issues that come up with home ownership.

but this way, you are STILL taking home 6K/month. EVERY month. over the first year. again, that is only in one year.

sell a house? make a bit more, skip a month buy a better home.

shyt, in 5-6 months you'd have enough to buy a nice little apartment building, you can get a franchise off the ground.

you will have plenty of assets to leverage to get more money from the bank to invest,etc.

that is the snow ball effect just after 1 year.




plus, if ANY of these investments fail....well you are still getting 16K more next month, and then the following.

that safety net is there, and in reality , can even allow you to make riskier investments, knowing that your ass is covered for life.

 

[Houston911]

Just remember that they own properties that generate income, they don't buy properties to resell on the hope of turning a profit.


See now we get to the crux of my argument which is capital gains vs cash flow. If your plan is interesting for cash flow through vehicles such as rental properties, I can gel with that. The problem is, with the 2 million you may have more immediate working capital which opens more options, but you leave yourself open to losing it all through bad deals. Despite this, I'll give you two props for having some plans and not throwing vague statements at me. I'd still wager that the vast majority of 2 million takers have bad money habits and would waste it all.

they do both

Rent out a complex to generate profit, but he will sell that complex if the price is right

 

[MrWestGrand]

i told you its okay... you're not getting 1% monthly in a savings account. YOu can throw as much jargon and misguided logic you want. Maybe you'll confuse others who are in a similar financially uneducated place and they think you're right, but not me.

just to remind you, YOU said "leave it in a basic ass savings account and get 1% monthly"

you're wrong. Just admit it and move on. Or prove me wrong and post a "basic ass savings account" that is getting 1% a month.

I know how bank interest is calculated, but your problem is you tried to interpret something and and make it deeper than it was on the surface,

Simple math, 2mil with a APY of 1% sitting monthly accumulating compound interest> 4K a week.

Your critical thinking skills are lacking, about as much as your jargon....

Why don't you explain to the people how making 4K a week yields a greater rate of return than 2mil?

 

[Professor Emeritus]

This might be some woat level logic



"If you knew how to flip 2 mil then you would already have 2 mil"

Could tell you haven't thought this shyt through at all.

Imagine that you have a sure fire, low-to-no risk way to flip 2 million into a lot more. The only problem is....


You don't have the money, just your untested idea.

No one trusts your idea enough to give you the money.

You and all your friends can't even pool enough together to make it happen.

Ya'all don't even have enough in assets and mortgages and shyt to get a loan for the money.

And apparently you don't even have some lesser amount of money, no $500,000 or $1 million or anything, that will still make the idea work.



So apparently you don't have wealth, and no one around you has wealth, but you just know how to make wealth. We just have to "believe".

Sorry if I'm skeptical.


People with real money know - there are high-risk investments with good returns and there are low-risk investments with low returns. There ain't no magic bullet. You dump your entire $2 million into one investment, like so many of these guys are saying, and there is a GOOD chance that you're going to lose a good bit of it.

If that weren't true, CDs, US Treasury bills, money market funds, etc. with 2% returns wouldn't exist. Yet there is a LOT of money in that stuff...because people with money know that there are a lot of other ways to straight lose your money.

Either you're getting a low return, or your money is at risk. You can't have your cake and eat it too.

And nowadays, between a US government system in shambles, global trade deals falling apart left and right, spreading nationalist leaders, climate change, and the specter of terrorism and wars we can't get out of.....all with a stock market AND real estate market which are both still wildly overvalued....

 

[iBrowse]

The fixed deposit rate in Kenya for that figure is 8.50 percent for three months.
I hope that answers your first question about how easy it is to make money off interest. Imagine what it's be like compounding. I went away from the interest rate argument because the rates you guys are getting are much worse than what we have.


Deposit Interest Rates in KES and Foreign Currency | I&M Bank

So now we're depositing in Kenya

I live in the U.S. so I referred to what is available in the U.S. lmao.

Your shilling is weaker against our dollar so there's that.

 

[Alpha Male]

@Pink_Freud

At 4k a week you would earn about 200k a year.

What travels further and quicker, 2m or 200k?

Even if you wanted to play it safe and pocket 500k, which you definitely should, what travels further... 200k or 1.5m? Which is going to net you a greater return?

Can you still make money investing if you chose the 4K a week option? Absolutely, but it would be about 8-10 years, perhaps more depending on how much you truly saved and put aside... before you saw that same kind of profit.

By taking the lump sum you are starting ahead of the game. With the right real estate investments there's no reason you can't generate 200k by yourself that first year.

You keep doing this over the course of 10 years and your yearly income is just going to grow and grow, not to mention you own a shyt ton of properties that are all appreciating in value.

 

[Houston911]

Could tell you haven't thought this shyt through at all.

Imagine that you have a sure fire, low-to-no risk way to flip 2 million into a lot more. The only problem is....


You don't have the money, just your untested idea.

No one trusts your idea enough to give you the money.

You and all your friends can't even pool enough together to make it happen.

Ya'all don't even have enough in assets and mortgages and shyt to get a loan for the money.

And apparently you don't even have some lesser amount of money, no $500,000 or $1 million or anything, that will still make the idea work.



So apparently you don't have wealth, and no one around you has wealth, but you just know how to make wealth. We just have to "believe".

Sorry if I'm skeptical.


People with real money know - there are high-risk investments with good returns and there are low-risk investments with low returns. There ain't no magic bullet. You dump your entire $2 million into one investment, like so many of these guys are saying, and there is a GOOD chance that you're going to lose a good bit of it.

If that weren't true, CDs, US Treasury bills, money market funds, etc. with 2% returns wouldn't exist. Yet there is a LOT of money in that stuff...because people with money know that there are a lot of other ways to straight lose your money.

Either you're getting a low return, or your money is at risk. You can't have your cake and eat it too.

And nowadays, between a US government system in shambles, global trade deals falling apart left and right, spreading nationalist leaders, climate change, and the specter of terrorism and wars we can't get out of.....all with a stock market AND real estate market which are both still wildly overvalued....

People with real money know how to make money from money

I agree with a lot of what u said, but the whole "you would already have 2 mil" is silly breh