You forgot to mention

1) the massive tax advantages they get (income splitting, vehicle write off, fuel etc) for running their own business and employing themselves

2) they probably teamed up with their mates in electrical, plumbing, carpentry etc to build their house for a fraction of retail

There are two other options

1. Sales
2. High end corporate gigs with share options and large bonuses

Nope

Those two things require labour, and therefore the income potential is limited by the number of hours of labour you can contribute

Wealth requires exploitation of capital

You don’t. You either upgrade to a super high paying wagie job, you start your own business and actually become successful or you invest and save and scrap for 40 years til you can finally retire

Crime it is

Based on the wealthiest people I know, and I know a few moggers, they all have 1 thing in common. They own their own business. Several of them are family businesses that are continuations that keep growing.

The problem with wagie jobs is that the tax system considers you like a leech almost. A consumer. You have little write offs, you get taxed on your labor, earning potential is capped. However, it is much more comfortable because you have less risk/responsibility. The company is responsible for feeding mouths and keeping jobs. You just do your job and run out.

Owning your own business is much more stressful and is a lot more responsibility. The tradeoff though is that you are seen as a provider in the tax system. Your business serves your community by bringing a service or creating jobs, bringing more business for local businesses, and so on. That's why you get tax cuts and can take full advantage of a tax system set up for businesses. Your earning is basically uncapped depending on your sector and how much you can or want to scale it. If you bust your balls it will usually work out in due time. Also you can reinvest into your company and avoid a lot of taxes while also either scaling a lot or buying up tons of assets for your business.

That's my goal. No idea what my business would be, but ultimately I'd rather have that responsibility than only be a cagie wagie unitl I'm 67.

don't rental properties require a minimum of 20% down? unless you're buying homes worth $150k I don't see how $30k is enough to buy

But arent those relatively good gateways to wealth? Are there not people who started off with labour to eventually become wealthy? You can't get wealth without capital.

If you're making $200k as a salesman and only live on half that, that's $100k gross leftover. You can literally buy 1 house every year. In 10 years you'll own 10 houses. If you made a profit of $400 each, that's another 48,000 gross.

Not if you live in them for a year first.

true. I'm not willing to do that though lol

You gotta start somewhere. You can also say you live in it, but if you don't, that's fraud.

I think he's just using that as an example. I'd say $40k is a more realistic number.

The downside is you need very high 6 figures to buy rental properties. Someone making $80k/yr won't be able save in a timely manner to keep buying properties. Even if you saved $1000/month, that's still 4 years.


Heres an idea, maybe buy a multifamily unit? Buildings with 4 apartments are still classified as residential and you're making 4x the income than just a single family home. The initial down-payment would be higher, but you're already ahead of someone just buying single family homes.

Lmao what

You get one property, the value of that goes up, you use that equity to acquire the next and so on

Then when your risk profile changes and the market is right you can start selling them down and using the capital more aggressively eg new developmentLol

If you start off with nothing, like I did, then you have to leverage up

Da fuq you think new money is using their wages to finance their projects? Gtfo

These threads are actually enlightening because we get an understanding of why people stay poor

What do you mean by leverage up?

Where would someone who makes $80k/yr start? You need cash down to get started. Even if you did manage to get a property with zero down, assuming it's a $400k multifamily unit, you can't make that mortgage on a $80k salary. It'd be a race to fill all units and keep them full

it takes time for property to appreciate. here in the USA you can not buy an investment property unless you put 20% down or otherwise live in your property for a year and put 5% down.

I'm not willing to live in a rental property for a year to be able to put down 5%.

yes, you can scale up as you gain equity but with interest rates the way they are right now, you're not gaining anything in equity for a long time unless your chosen market sees significant appreciation in the short term.

I legit don’t know where to begin with you guys

Dfs

I'm financially retarded.

You make it seem like a wageslave making $80k can jump up and buy a property. Is it that easy? From my understanding you need 20% down or as stated 5% if you stay in the unit for a year


I still dont know how someone who makes $80k is supposed to buy a property without cash. And what happens if that rental unit is ever empty?

You only need to down payment for the first property. From then on you use the equity as the down payment for subsequent properties.

And of course you never pay more for an asset than the net present value of the income it produces.

That’s a get-comfortable-slowly strategy though. Ok if you’re very risk averse.


To achieve anything meaningful you need capital. Not YOUR capital, but capital.

From a bank, from investors, whatever.

Your first point makes sense. Your second point I don't understand what you mean by getting capital. If you get capital from a bank for a down-payment aren't you effectivity paying for 2 loans, the bank loan and the rental mortgage? Whereas if you used your own cash, you're just covering the mortgage. Unless you use the equity to pay the bank back??

How would you go about getting $120k?

I'm looking at random units like the one below. Would need $120k for the down-payment and closing costs

https://www.realtor.com/realestatean...=srp-list-card

Brutal

Are you fukken serious right now?

The tenants pay back the loan and all other costs for you.

Imma stop responding now cause ya trollin

You have to stop being a pussy and just give up wageslaving

OK, so you roll the bank loan into the mortgage?

Building is $500k
Borrow $100k for down-payment.
$600k total
Whatever the monthly payments are for the $100k loan, you roll it all into units so the tenants are paying for everything.


They don't teach you this in highschool.

In 30 years that’ll be middle class

No

Buy what you can afford with the down payment you have

Create equity by rehabbing or getting plans approved for redevelopment

Get it revalued or sell it and use the profit to bankroll the next one

lot of canadajeets did that too but it's a house of cards cause when interest rates go up, you lose one thing then everything else follows after. when things are good though, life's really good

Which is why you take your profits when you can and deleverage over time

Main goal is to have your properties earning more money (in rent, capital growth or both) than your wage

I don't take ozempic. So there's that.

Why are you in this thread at all, you're a brokie that wears fake chains and watches.

Work a 9-5, create your own online business (personal training, coaching etc) gain a bunch of following and have a quality page. Put all your extra 9-5 money towards your coaching business with ads etc

This of course won't work if you have no skill to offer. But then again you don't deserve to be rich then

Most people can't save money. That's their biggest impediment to becoming wealthy. To become wealthy, you need to invest or convince someone with money to invest in you.

It ain't happening without money, and when you use someone elses money the terms usually aren't great.