When Can You Declare a Profit?

[nmrounder]

AA is right, the American dream is all about money, and money NOW.

As quoted from Boiler Room:

"There's no honor in an after school job at McDonalds, honor's in the dollar kid"

We as a society have grown from the white house with a picket fence and an average job, dream of the 50's and 60's into wanting everything, and now.

Oh yea, by the way, I'm a newbie [img]/forums/images/icons/smile.gif[/img]

[Mash]

AA,
I would have responded sooner, I was pitching baseballs to my 5 year old. His MLB draft is only 13 years away so we have no time to spare.

Seriously though...
I agree with everything you are saying and I've realized it for over 10 years now. I don't take it as you being discouraging because I have the same attitude.

Some people tell me I am bitter, maybe so, but I tell them back that they have no sense of what is going on around them in the world. People who are happy going to work everyday, working for somebody else and making their bosses rich have no clue. To me having a job is a cop out. Centuries ago, the majority of people work for themselves and only a few people worked for others. Now everyone wants to go out and get a "good" job, while only a few people own the businesses. How many family run stores has Walmart put out of business the last 10 years. Same with Home Depot, how many local hardware stores have gone tits up because of them. Nobody but the rich can make it anyone. You bring up Oprah, she is a billionaire now which pisses me off as much as it does you. She is a billionair for doing what?? Having a chick show and making women feel worthy? Give me a freakin break. I need to think of a "scam" as good as that one. Carleton Sheets is another scam I wish I would of thought of first. Sitting by the pool taping his informecial telling everyone how you can buy Real Estate with no money down and sell it the next day for many thousands of dollars profit. I wonder how much money he claims each year for his kits that he sells compared to his buying and selling real estate.

I agree with your 4 categories that you made 100%.

Like I said in my previous post, if my stock would go up ten fold (it wasn't too far out of reality last year at this time and it was at that mark in 2000, but I didn't have enough vested at that time). If it hits that mark tomorrow I can retire, because I feel I could invest it right in Real Estate and create a residual income. If not at least I would go down trying and would be able to sleep at night knowing I took a shot at finicial freedom. The funny thing is my colleges who have the same amount of stock I do in the company would keep on plugging away showing up for work each day as happy as can be. I know because we have had many conversations about this. They say that money would not be enough to retire. I keep telling them if they do things right and our not idiots it would be plenty, they a scared to take a chance which is why they have ass kissing jobsin the first place.

I do currently have 1 rental that I bought last year, and yes so far I have had to do my own maintenance. At least I can say I am trying. Soon 1 will turn into 2, 2 will turn into 4, 4 will turn into 6 etc...If I win a WSOP event I won't be giving it back playing every tourn that comes up. I will buy about 10 more rentals and live off the residual and be done working...I can always hope.

If I can think of something better I will let you know, it never hurts to have a few contacts who have the same attitude that I do.

Later...

[brad]

'
No to respond to your Devil's Advocacy... Why is *anyone else* so special that I should have to work for *them*.
'

heh, just saying it works both ways.

but really i live in the early 60's (american dream owning own home, solid job (father *only*, mom stays home), kids to college ...) and i wasnt even born then!

not that its so cut and dried, but i think future generations will point to homeland security act (as prelude of what was to come), and say, thats when america ended. (eg, youre gonna have to have a 'security clearance' to work in a restaurant, etc., cant fly on airplane if you have bad credit, etc.)

i honestly regret not contributing to socirty in meaningful way but then look at what is done with it, and resort to first do no harm.

[AmericanAirlines]

Hi Mash,
I have to give you credit though, you *do* have the grit to go out and start small, with that one property.

I do believe you will make it, but you've already seen through the BS and are taking action.

Though I'd be the first to say :"measure twice, cut once"... in contrast to the usual BS about "take action, any action... sitting still is always wrong" I have to admire that you are doing something.

In the end, "quick" profits in real estate means that the other guy left some equity on the table.

To be honest, I don't see that happen to terribly often. Even someone in foreclosure might rather let it foreclose than let someome profit off thier misfortune.

I have seen it go otherwise though. Years ago a bud of mine and business partner, really did have the moxy to walk in pre-foreclosure and ask for quit claim deeds... and get them. Something I couldn't do in good conscience.

Anyways, long story short... his wife left and took half!

:-)

Anyways,no insult to the ladies intended there as I feel the main use of wealth is to make your lady happy.

If there were no women, us guys would all be couch potatoes anyway.

:-)

As far as taking chances goes though. I've taken many, and to be honest I don't go along with that rhetoric about high reward = high risk. High risk means high probability of failure. You have to figure it out as two things. 1) The EV, 2) the variance characteristic.

For example, playing a 4 flush draw on end comes in once in 5 times. So you lose 4 times. That characteristic would look like 4 descending steps and 1 bigger step upwards:

Some risks look exactly the opposite... You chip up and up and up... then take a big fall.

So you have to consider how that fits with your bankroll and personality for sure.

Since I've actually gone broke (well $400 dollars and two cars left... about a month away from getting evicted in that case)... I don't blame people for appreciating having a job and being able to eat regularly!

I once lived on one of those houses my bud had got... without electricity and ate oatmeal cooked over a tin can stove. I used Cedar shingles for fuel.

Actually it was a little fun. But I knew when my house sold I'd have some cash to go back to normal life... but that was before I got down to that $400 figure a few years later. Let me tell ya. The last 5/10 thousand go like flushing toilet!

What perturbs me is that people are afraid to talk about class structure and issues surrounding it, and are afraid to stand up and say, "yes, being a worker bee is to be exploited".

They can't step outside thier ego and take an objective look. Yet it's just a fact.

Oprah... yes Oprah... It would be interesting to know the details of her story. Got to give her credit, she did it somehow. Credit where credit is due.

Given that her ancestors were slaves 150 years ago or so, and mine were not. Seems here family try was smarter than mine, or I'd have the billion right?

What blows me away, is that somehow the collective economy voted her that billion. After all dollars are votes in an economic sense.

Same for Tiger Woods, or any other celeb, sports star, etc.

We hand the money to these folks. Can't figure it out.

Can't figure out who gets the $$$ and why.

I know of 6 talented gals in a Nashville band. Tour the country and europe every year. Been signed by 2 major labels. They're still living a relatively "normal" life in terms of dollars.

Yet, Britney Spears or Eminem, who have no more talent (probably less... honestly and objectively) are worth millions. I just don't get it.

Anyways, keep on keepin on. Hopefully your real estate ventures will work for you. Think about it. 10 paid off units by the time you retire should cover you from there on out. That's what I always used to think about when I as trying that out. 10 paid of units... just 10!!!

Sincerely,
AA