The average business owner makes around 60k a year.

[UpAndComing]

Lifetime 9-5 workers mad as fukk in this thread

 

[Hov]

I can see why the average person is broke. The lack of understanding how money and business work in this thread is amazing. And yes you can operate your business at a loss if it's a llc/corporation. You can't do it for more than 3 years as a solo proprietor. Amazon did it for what 10/15 years? Lol They operate under the same tax code as you.

Let me create an simplified example for the slow people in the back.

Let's say you own an apartment complex.
The complex has 20 units. Each unit could generate $1000 a month but only half are occupied.

So you are generating 10k a month. But because you are a business owner you get to write off the other empty units at a loss.

Revenue 10k
Unoccupied unit loss -10k
Tax burden 0

On paper it looks like you didn't make a dime but you are actually taking home 120k a year.

If the same person, made 120k at a 9 to 5 their take home would be around 85k.

Those dinky ass people you follow on the internet don't even scratch the service of what business is. Ya'll gotta smarten up.

There are so many legal ways you can freak this game its unreal.

Sorry for using you as an example, but just want to show this is how people lose in the game. The oversimplified meme talk.

“Let’s say you own an 20-unit apartment complex” - well, how did one purchase a 20-unit apartment complex? All cash? No debt?

How did one fix it up after purchasing it, to make it extremely livable and up to code and trendy or fitting for the environment/city it’s in?

How long did it take you to get 10 units filled post renovation AND how do you pay for maintenance etc - or are you a slumlord?

After your 10k, you are telling me you have no expenses from the building or permits or late rent or maintenance costs?

You actually would be in debt with your simplified example. And this is how LLC Twitter lies/misguides our people…

 

[Hov]

Lifetime 9-5 workers mad as fukk in this thread

I’m actually a full time business owner, 3x over. I’m here on Coli for jokes, but it burns me up to see our proper led astray.

It’s like telling someone to not go to college and go play in the NBA because Kobe and Garnett did it, without telling them the exact work that needs to be put in, along with the reality of the odds…

 

[Nigerianwonder]

Sorry for using you as an example, but just want to show this is how people lose in the game. The oversimplified meme talk.

“Let’s say you own an 20-unit apartment complex” - well, how did one purchase a 20-unit apartment complex? All cash? No debt?

How did one fix it up after purchasing it, to make it extremely livable and up to code and trendy or fitting for the environment/city it’s in?

How long did it take you to get 10 units filled post renovation AND how do you pay for maintenance etc - or are you a slumlord?

After your 10k, you are telling me you have no expenses from the building or permits or late rent or maintenance costs?

You actually would be in debt with your simplified example. And this is how LLC Twitter lies/misguides our people…

These folks have never run an actual business. That's why they speak in such simplistic terms and give out these unrealistic scenarios and what they could do instead of talking about what they have actually done.

A 20 unit apt will run you at least 4 million minimum in the south. Unless you got 4 million in cash laying around it would be financed and you would owe monthly. Plus you got daily operations cost and maintenance / repair cost. Insurance cost. Property tax, property mgmt cost, Turnover cost when folks move in and out etc... so at 50% occupancy you would be losing money every month and out of business in a year.

 

[UpAndComing]

I’m actually a full time business owner, 3x over. I’m here on Coli for jokes, but it burns me up to see our proper led astray.

It’s like telling someone to not go to college and go play in the NBA because Kobe and Garnett did it, without telling them the exact work that needs to be put in, along with the reality of the odds…

Yeah I just hate the discourse with Business Owner vs Worker like everything has to be Black and White

Like it is always painted as a Business Owner is some Casino gambler who hates school, can barely read, but works 80 hours a week, and gets his big break being a risk taker lol

Like alot of Business Owners have a 4 year degree, or have worked as a 9-5 worker for 10 years before taking the leap, or took over a family business, etc. All 3 options are less riskier paths than the media tries to paint

You would think with a low income average of 60k you would see less vitriol towards Business Owners, but I guess not lol

 

[mobbinfms]

I can see why the average person is broke. The lack of understanding how money and business work in this thread is amazing. And yes you can operate your business at a loss if it's a llc/corporation. You can't do it for more than 3 years as a solo proprietor. Amazon did it for what 10/15 years? Lol They operate under the same tax code as you.

Let me create an simplified example for the slow people in the back.

Let's say you own an apartment complex.
The complex has 20 units. Each unit could generate $1000 a month but only half are occupied.

So you are generating 10k a month. But because you are a business owner you get to write off the other empty units at a loss.

Revenue 10k
Unoccupied unit loss -10k
Tax burden 0

On paper it looks like you didn't make a dime but you are actually taking home 120k a year.

If the same person, made 120k at a 9 to 5 their take home would be around 85k.

Those dinky ass people you follow on the internet don't even scratch the service of what business is. Ya'll gotta smarten up.

There are so many legal ways you can freak this game its unreal.

Can you give me a citation to the provision of the tax code that permits you to claim a deduction for unoccupied rental property?

I’ve never heard of that, and my preliminary research suggests you are wrong, but I’ll wait to hear what you have to say.

 

[Primetime]

I do feel like unless you want to start a business for something that you are just dead set passionate about (and so the extra hours wouldn't matter to you), the best bet would of course be the 9 to 5 but then dabbling into one of those low/no expense "businesses" (side hustles) that have the potential to blow up. I'm talking:

TikTok
Youtube
Instagram
Twitch
Podcasts
Blogging
etc

It's over-saturated now i'm sure, but if you have even a smidge of charm, charisma, personality or insight, or travel often, you should explore monetizing yourself. Probably the most low expense "business" you can have. Low hanging fruit.

Above that, any and everything else will require a level of effort, research, and likely funds that may be harder to come by. Whether that's property/real estate, truck driving, personal training, stocks, etc.

 

[krackdagawd]

The way y’all just bullshyt and make up stuff. Do you know if you drive trucks, you can get your own truck, get an llc and be back on the road working the same hours? Do you go into stores and always see the boss there? They don’t have a manager or store manager or supervisor there? Nobody can ring up 5 shirts without needing the top dog owner daily?

Fact is, y’all trying to place a big huge blanket on business ownership when there’s millions of types of businesses with varying degrees of work needed. This also varies by how long you been doing it, your delegations to your team, etc etc


But to sit here and say “you got a business so you can go on vacation, can’t ever be off, work 80 hours and it’s easier to work whatever blanket job that pays the same exact money.”


No. No it doesn’t work like that. There’s motheruckers with a business who roll over and check their Etsy once a week and they make 100k in sales. Whole POD systems on full automation. Ask me how I know…. There’s businesses without physical stores. Hell brooklynzon been running the coli for 8 years and I’m not sure he did 40 hours of work on this thing in that entire period of time. All he gotta do is slap on an llc to it and he’s a business owner correct? Does he need to check the site everyday for these ads to pay him?

You got it. Next time try reading what i actually wrote breh.

 

[Nigerianwonder]

Can you give me a citation to the provision of the tax code that permits you to claim a deduction for unoccupied rental property?

I’ve never heard of that, and my preliminary research suggests you are wrong, but I’ll wait to hear what you have to say.

Pretty sure you can only write off expenses related to maintaining a vacant unit (cleaning/ maintenance/ marketing to renters etc.). You cannot write off the actual rental income you did not earn.

 

[Bubba T]

Awe you rent out houses and apartments? Put a breh on game. What's the best way to go about stacking money and buying houses and multi units?

My credit score is already decent, tryna hit 750 in 2 years or so

The first issue I noted was you mentioning getting a 5 unit building for $400k. I don’t know where you are from but that isn’t realistic in most areas of the country where people want to live.

But for arguments sake let’s say you found one at that price. Even with a 72k down, you still looking at over a 300k mortgage. Since the property has 5 units, you’ll be looking at a commercial loan. Commercial mortgages are more expensive than residential mortgages while having shorter terms.

With commercial mortgages, the bank is looking at the loan more stringently than they are with residential mortgages. Does your business model work? Are you actually going to make enough money to pay back your loan? This goes back to where your property is located. A 5 unit building in LA is different than a 5 unit building in Cleveland, which is different from a 5 unit building in Houston. $1200/month (assuming that’s market rent for the area) for a 5 unit building that is worth $400k doesn’t make sense unless you are buying a HUD home, and that’s a different can of worms.

Really, there is much more things to consider and other factors that come into buying, maintaining, attracting residents to, and ultimately being profitable from buying commercial property. @Hov touched on it pretty well in this thread.

 

[Brolic]

I can see why the average person is broke. The lack of understanding how money and business work in this thread is amazing. And yes you can operate your business at a loss if it's a llc/corporation. You can't do it for more than 3 years as a solo proprietor. Amazon did it for what 10/15 years? Lol They operate under the same tax code as you.

Let me create an simplified example for the slow people in the back.

Let's say you own an apartment complex.
The complex has 20 units. Each unit could generate $1000 a month but only half are occupied.

So you are generating 10k a month. But because you are a business owner you get to write off the other empty units at a loss.

Revenue 10k
Unoccupied unit loss -10k
Tax burden 0

On paper it looks like you didn't make a dime but you are actually taking home 120k a year.

If the same person, made 120k at a 9 to 5 their take home would be around 85k.

Those dinky ass people you follow on the internet don't even scratch the service of what business is. Ya'll gotta smarten up.

There are so many legal ways you can freak this game its unreal.

That wasn’t the point of this thread. If you have a successful business, good for you.
People try to knock 9-5s. I was pointing out most business owners aren’t living a luxurious lifestyle.

 

[Brolic]

These folks have never run an actual business. That's why they speak in such simplistic terms and give out these unrealistic scenarios and what they could do instead of talking about what they have actually done.

A 20 unit apt will run you at least 4 million minimum in the south. Unless you got 4 million in cash laying around it would be financed and you would owe monthly. Plus you got daily operations cost and maintenance / repair cost. Insurance cost. Property tax, property mgmt cost, Turnover cost when folks move in and out etc... so at 50% occupancy you would be losing money every month and out of business in a year.

Nah, you just need 750+ credit score.

 

[Ezekiel 25:17]

The first issue I noted was you mentioning getting a 5 unit building for $400k. I don’t know where you are from but that isn’t realistic in most areas of the country where people want to live.

But for arguments sake let’s say you found one at that price. Even with a 72k down, you still looking at over a 300k mortgage. Since the property has 5 units, you’ll be looking at a commercial loan. Commercial mortgages are more expensive than residential mortgages while having shorter terms.

With commercial mortgages, the bank is looking at the loan more stringently than they are with residential mortgages. Does your business model work? Are you actually going to make enough money to pay back your loan? This goes back to where your property is located. A 5 unit building in LA is different than a 5 unit building in Cleveland, which is different from a 5 unit building in Houston. $1200/month (assuming that’s market rent for the area) for a 5 unit building that is worth $400k doesn’t make sense unless you are buying a HUD home, and

that’s a different can of worms.

Really, there is much more things to consider and other factors that come into buying, maintaining, attracting residents to, and ultimately being profitable from buying commercial property. @Hov touched on it pretty well in this thread.

That's why I said I was figuratively speaking. Most people that get started in real estate are using their income from their 9 to 5.

Either way you look at it, it's definitely possible to buy some more property with a $120k salary

 

[The Devil's Advocate]

Not as many trips as the people on social media act like you can.
Yes, because I have PTO and they always clear it with a 4 week notice.
I already make more than that working a 9–5.
You’re assuming all 9-5 jobs suck.

No fam I didn’t. I said “I’d work for myself IF I made the SAME money at a 9-5”

Now if I make more at a 9-5, then I need to ask how much more and how good is the 9-5. That’s why im saying just laying a blanket over llc’s or 9-5’s is silly. There are so many varying factors and jobs and businesses.

 

[The Devil's Advocate]

Sorry for using you as an example, but just want to show this is how people lose in the game. The oversimplified meme talk.

“Let’s say you own an 20-unit apartment complex” - well, how did one purchase a 20-unit apartment complex? All cash? No debt?

How did one fix it up after purchasing it, to make it extremely livable and up to code and trendy or fitting for the environment/city it’s in?

How long did it take you to get 10 units filled post renovation AND how do you pay for maintenance etc - or are you a slumlord?

After your 10k, you are telling me you have no expenses from the building or permits or late rent or maintenance costs?

You actually would be in debt with your simplified example. And this is how LLC Twitter lies/misguides our people…

Actually everything you named as expenses is also written off on your taxes. Like maintaining, fixing, advertising…. Those are all business expenses.


But I’ll keep saying it. Every business and job is different. So you ain’t always going to be right and neither is he. Cause it depends on 1000 factors