You make a very good point. This isn't just about women, it is about having a good quality of life and getting out of the collapse environment (perpetual poverty through QE). You make really good points about cars. Even if I moved (I am not now, since I got a job offer here), it would not make financial sense to own a car. I try to reduce spending, although I have been on a binge lately. And I do have a side hustle on Amazon. But yeah, I am thinking going the real estate route, then maybe trade a bit on the side. I really think my income could go a lot farther abroad. Thanks for the comments. I am thinking of going PT, and eventually have an alternate point if shit hit the fan (South America).djfourmoney wrote:Saving 101 is spending less than you have going out.zacb wrote:I see. I was just worried about the basics. I live a lower class lifestyle right now (grandparent sand mom), and the most expensive thing I would spend money on would be tinkering and such adruino. Maybe some sport scard sand that. I am kinda frugal, so it seems like 1000 or so would be enough for a little entertainment. Then the rest can be invested.OutWest wrote:2-3 thousand in Davao would get you by splendidly. Hard to say exactly, but somewhere aroundzacb wrote:It seems like if you lived frugal in the US (basics), you could live on what most people live on where I live (1,500), and still have some. Maybe I am missing something. What if I wanted to live in Davao, have a 2-3 bedroom house, occasionally go out, and invest the rest into investments? Would 2-3k a month do?The_Adventurer wrote:$2400 seems excessive to me, for living in the Philippines. My friend lived there with a pension of around $1200 per month. He lived in a gated subdivision that looked like you were somewhere in San Diego. His rent was 12000php. Electricity approached 10000php because he had tons of computers and other tech constantly running. He had a car and a live in helper. I'd say he was living better than most Americans.
600 might be like 1,500 in a midwest town...not all that much fun frankly....but some find it ok.
As to 2,400 being excessive, I guess it depends on how you are living. We entertain quite a bit...some people do not. We could live on less it is true. I think we spend more than 500 per month just on kitchen related- food and drink. Could we spend less? Certainly. That includes perhaps 2-3 hundred that my wife has in her pocket for girl stuff...shopping etc...all in all...adds up.
I don't pay rent, directv, landline, smartphone or broadband bills.
That's how I make $300-$400 a month work...
By the end of the month if I decide not to spend a penny, I would have $500+
As I understand it you're in long forgotten part of the country, so apps like Gigwalk might not help you but apps like Shopkick could, as long as you're near a few stores like Target and Walmart which seemingly every small berg has.
Rule #1 Stop being money on "bait" for women. IE, do you need a car? If public transport is good enough, then stick with that. Cars are money pits, if you're okay with that, then fine, but don't complain about the cost of gas, brakes, oil, tires, tune ups, air filters and the like and that's with a NEW CAR. At some point a used car is going to need some major (read:expensive) work done on it.
Rule #2 Reduce spending. As I mentioned above, with Shopkick if you are diligent, you can earn a $25 Gift Card from Target every month. That should cover things like toothpaste, deodorant, etc. Apply for EBT if you're working a low wage job and GR if you are unemployed and can't collect unemployment.
Rule #3 Find alternative income streams. This is also an opportunity to look at your options for passive income. There many things you can do, comment on popular culture, problems in the world, problems in America. Maybe a hobby you have, almost anything can generate an income if you think about it.
Also consider donating Plasma, I don't know how many times I have to suggest this. If you are an unfortunate breast you lives in a forgotten part of the United States; I don't know what to tell you. But that's $250-$320 for 3-4 hours of your time (twice a week).
What investments? Bitcoin is trading for over $1,000. You can get Quark Coins, some say the most secure 10 for $29.99 on Ebay. These will be debuting on the Chinese exchange sometime this week I believe. Otherwise silver, gold and other commodities are ideal.
Have you checked out early extreme retirement? - http://earlyretirementextreme.com/ or Mr Money Mustache? - http://www.mrmoneymustache.com/
Sigh... I would stop concerning myself with being frugal and stop looking for cheap places to live without understanding WHY they are cheap. Can you make $1,000 work? Yes in just about any country in Latin America.
$1,000-$1,200 would allow you to have most things people take for granted in the US. That would easily pay for housing, food (as long as you ate like a local), high speed internet, cell, clothes (more expensive in some places than others) and public transportation (such that it is).
The truth is however that your dating pool will be mostly the lower middle class/working class in whatever country you choose. Can you find a cute girl among that population? Sure, but you must maintain your "Gringo Advantage" by pretty much living like a Gringo, NOT A LOCAL.
That is unless you're like Falcon and just don't care what they look like.
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I love cars, I can't shoulder it at the moment, maybe in a few months we'll see.
Real Estate as I think a few people have gone over this is not a set and forgetting investment, you will need to pay a company to oversee your property if you're an absentee owner.
I would focus on passive and semi-passive income. If you have relocated out of America successfully and have improved your quality of life, share that with the world.
E-books, How-To Videos on YT, Podcast all those things can be used to tell the world they can do what you did and its easy as long as you follow some simple rules.
You can live in Brazil six months at a time and I think your Visa last for up to ten years, I have to check that.
Why not consider becoming a substitute teacher? I know a guy that lives in Argentina but returns to the US every 6-8 months to work as a substitute teacher. He works for a few months and that's enough for him to live on the rest of the year.
Men don't need much and I didn't say that women were unimportant, but they are apart of overall happiness unless you're asexual and I don't get that impression.
There is no greater experience than the support of a loving woman that believes in you when nobody else does.
Don't discount that if you haven't experienced it.
I never discounted that, I mean my original reason for going abroad was not women, it is just a side benefit. I understand about passive income, I just would like to have some hard assets, but I get that it is not a set and forget investment. But I think it is my best chance at wealth, and I don't plan on permanently moving anytime soon (need to visit a few places to find my niche). So I could imagine doing part time here, and kinda dip my foot in there, and see how it goes. Once I have a decent block of them, I could have someone manage them. But since I am more into investing than other things at the moment, it seems like that would be a good place to start as a base income. As for side things, I wouldn't mind trading a bit (have a bit of experience in it), which would be my dream job anyways. But your point is well taken.
You DO NOT pay. Your property manager or property management company receives a portion of the rent that your tenants are paying.
And for the record, you NEVER want to manage a property by yourself.
Always use a property manager and you can still come out with a positive cash flow per month.
"Allow me to show you the Power Cosmic!" - Silver Surfer
Also with real estate, you can rennovate your property and increase its value.
If inflation is still going up, in a few years, you can refinance your property and put extra cash in your pocket due to appreciation while you are still getting a cash flow.
"Allow me to show you the Power Cosmic!" - Silver Surfer
That is if you can find a trustworthy person, I don't automatically assume because if men picked women like they pick people to do business with, you see the results.
Also if you don't have property management experience, who is going to teach your property manager?
Finally real estate is expensive, unless its in some long forgotten part of America. You got $50K? I don't (I did at one point) and I know Zacb doesn't.
I am not knocking real estate, but unless you're ready to babysit your property for a few years its not passive income.
There will be another bank and housing crash... You can't have housing prices continually going up and wages being stagnant, look at the crisis, its still ongoing and all they have been doing is trying to prop up property values.
That will come to an end before the end of the decade. If you don't mind being underwater that's fine me with.
There are other things you can do with similar startup cost to real estate, I much rather do that, it is set and forget...
True. But I am not aiming for the beautiful side , it is more cash cows. Where I live, you can find 2 bedroom houses in the country for 10-14k. You can definitely find houses for under 30k here. So if I am figuring right, at 20-30% percent down, I could probably get a decent cash cow. And with lower costs in taxes and such, after taxes and insurance, I could at least earn 350-400 a month off it. It needs some work, but nothing too major. The only thing I have an issue is with it's competitive advantage. But for 12k, and at paying it off at a clip of 5,800 a year, you could have it payed off in a year or two. (12k-4000 down payment=loan-5,800=2,200 left to pay after one year). It will need some repairs, so that amount may or may not change ever so slightly. But I agree, normal real estate would not be worth the ROI (stocks would be better in that regard). But anyways, that is where I am coming from.
Real estate is only worth it if you've got significant startup capital, as you mentioned. If you've got a property mostly or entirely paid off and are renting it, it doesn't matter if the housing market crashes. You aren't selling it in the short term, and your property tax will go down to the decrease in property value. Rents, however, do not decrease during a market crash, so you will still be pulling in the same amount of money but paying less taxes. If you hold onto the property for long enough, you can likely recoup your initial investment, but it might take a few years.
When you invest in rental property, you shouldn't be looking at the value of the property itself. You aren't looking to make a profit off of flipping the house, you're looking to make a profit off of the largest difference between expenses (mortgage, property taxes, repairs, property management fees) and income (rent) you can find. You shouldn't plan on selling property the property at all. Once you acquire it, you add the net profit on rent to your cash flow and save until you can buy another property that will further increase your cash flow. The only time you should be looking to sell is when you are looking to invest in a property with a better ROI, never to line your own pocket. The trouble with this is that rental properties do require a large initial capital outlay to be profitable (in my state, roughly 50% of the property value as a down payment just to break even after rent and other expenses), which, as you mentioned, might be money spent elsewhere if you have other skills.
This last part is in response to the above comment by Silver Energy on taking out an equity loan. You should never take on equity loans to make further investments unless you have a substantial cash flow and can easily pay down the loan. If this is not the case, if one of your investments goes bad, you end up with a mortgage+equity loan but no extra income to compensate for your extra expenses. You're putting your property portfolio at risk when such a situation results. I've heard of guys that were doing really well that took out equity loans to buy more property prior to the bubble bursting, and their entire portfolios fell like dominoes because they were overleveraged. They lost everything and ended up in bankruptcy court to boot.
You make a lot of good points. And as Simon Black said, owning hard assets (more income producing assets), it is like having your own printing presses. And you know how many widows survived during the Great Depression? Renting properties.
You do NOT need your own money to invest in real estate. You can use a private lender or partner with others.
Even if you do use your money, the banks can and will provide at times 75 to 80 percent of the costs of buying that property.
Plus, real estate is a great hedge against inflation.
Of course, you should only refinance once you are successfully getting positive cash flow per month and have added value to your property.
Then when you do this, you can put money in your pocket by paying off a mortgage with another one.
When you invest for CASH FLOW in real estate, you put money in your pocket in good AND bad markets.
I was only saying that you CAN make money through appreciation but I ALWAYS invest for CASH FLOW first.
So when people are losing money investing in stocks, mutual funds and bonds in BAD MARKETS, I will be getting a CASH FLOW monthly check in real estate and stocking up on gold and silver on the side.
"Allow me to show you the Power Cosmic!" - Silver Surfer
Well Zach is lucky he finally found a job. To make his plan work, he would need to get his wages up to the FHA min. Like the UK's Help To Buy Scheme, getting a loan guarantee from FHA isn't hard as long as you meet the income requirements.
Investment is minimal I think its 10% of the home's value. So if the house is 10-15-30K as it said, then he can get in for low, low investment. But as I said this is only possible in forgotten parts of the country and the only people that haven't left are old, lazy or poor. Are these the people you want to rent your house too? I guess those tenants can be good if you screened them properly.
Then you can charge enough rent to pay the principal.
I would get a equity loan however because honestly any property you are paying $15-20K for is going to need a ton of work. All you have to look at is the comps for the area you're considering purchasing. If the house is well below market value, then there reasons for that, usually expensive repairs as most people want a house they can immediately move into.
I am not po-po'ing the idea of real estate investment and even Carlton Sheets no money down works still, even more so with the millions of foreclosure homes on the market. But as I said this really only applies in long forgotten areas because you are competing with flippers and private interest for foreclosed homes near popular metro areas. The private interest guys are there with a blank cashier's check at auction, do you really want to get into a bidding war with those guys?
If you're investing in stocks you're on the wrong side of the transaction, as Max Keiser said about three years ago, "I don't know what's stopping you guys, get your brokers license". He's right, win or lose, you get paid. The company you work for charges enormous fees in most cases. Its unethical of course but its normal in that space and if you can handle that, I wouldn't be investing in stocks, I'd be a broker instead. Build up about $40 Million, live in a four wall box for about 5-10 years and cash out, retire.
Of course there's Bitcoin, Lite Coin and Quark Coin... I'm sure there others but these are being mention in investor circles.
The trouble with a low initial investment in real estate is that it makes actually getting cash flow out of a property very difficult. In my old state, the average 2 bedroom home sells for well over $300,000. Let's say you luck out and get a 2 bedroom home for $250k, but better yet you actually get it appraised at $250k and luck out with some lower taxes. The average mill rate in my old state in towns where people rent is about 35, so you're paying 35 dollars per thousand dollars of home value per year in taxes. That comes to $729 a month in taxes alone. Now if you put 20% down and get the home with a 200k mortgage and don't need to get supplemental PMI. You're looking at a $1,108.13 a month mortgage payment on a 30 year fixed rate at 5.28% (average rate in this state is 4.28%, and banks always add 1% extra if it is not your principle home of residence). This leads to a minimum payment of $1,837 just to break even, without providing any utilities. Trouble is, average rent for a 2 bedroom in the area is about $1,200 with heat and hot water included. Worse still, you should plan for repair expenses equivalent to one month's rent per year, and a vacancy rate of one month per year if you are playing it safe. This leaves you with an $11,318 deficit (Your mortgage is $637 per month too expensive, and you have a $3,674 buffer that is not accounted for in relation to repairs and vacancies) in cash flow on the property per year that you need to somehow fix, either by bringing in outside income, convincing someone to pay way over market rates and hoping they'll stay, or by putting more money down on the property to begin with. And this is if you are managing your own property. The numbers are even worse if you hire a management company, which will want 10% of rent to deal with your issues. That puts you down another $2,204.40 per year if you are charging full rent, or $1,440 if you are charging the market rate.
There are states where the numbers work better, but you need a combination of low home prices, high rents, and low taxes to make it work if you aren't putting down more than 20% and want to actually get cash flow from the property rather than just break even. Trouble is, you should never invest in a housing market you are unfamiliar with, as you could end up with property in a bad neighborhood or an unstable tax climate, plus you won't be living nearby (in my case, not even in the same state) as your property, so a management company will be a necessity.
Multiunit apartment buildings are the best way to go, no matter what way you slice it. They really help your investment to return ratio, but have a much higher initial investment cost. You could also try getting some foreclosures, but it is easier said than done. Many in the local market are auctioned off at bank-only auctions first, after which the leftovers are passed on to the public. What is left is usually extremely rundown, in a bad area, or a combination of the two.
Yeah. After a year I might try 20% down, and see how that goes, or maybe FHA depending on the situation. But I figure at between 20%-30%, I could figure something out. And at 500 a month, subtract home owners insurance and taxes, and 350-400 sounds like a reasonable amount. But this will take at least a year to get to this point. Might try IM as well (got a coach).
Look up your potential market's mill rate, average home price, mortgage rate, and average rent and run the numbers before you jump into anything. Make sure you know what you are getting into. Taxes in some areas cost more than what you will charge in rent per month, I was shocked when I discovered how high they are back home.