You have $200,000 to invest in a passive income stream in 2021. What would YOU do?


N20GT

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how the fuck is your boomer ass only 36 the fuck

In the Auto Discussion threads where he posts incessantly about throwing a giant NA crate engines in to everything under the sun, I think he's 14. Then in the bored thread when he said he yells at the starbucks baristas on the reg, I was convinced he's a 67 year old female that's president of the HOA and just got out of church

Very mysterious dude

Deployments and marriage has not been kind to me.
Literally lol'd :ROFLMAO::ROFLMAO::ROFLMAO::ROFLMAO:
 

98GrandPrixIraqVet

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In the Auto Discussion threads where he posts incessantly about throwing a giant NA crate engines in to everything under the sun, I think he's 14. Then in the bored thread when he said he yells at the starbucks baristas on the reg, I was convinced he's a 67 year old female that's president of the HOA and just got out of church

Very mysterious dude


Literally lol'd :ROFLMAO::ROFLMAO::ROFLMAO::ROFLMAO:


I blame it all on PTSD. Im just thankful thus far Ive never made the evening news.......
 

Sprayin

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In the Auto Discussion threads where he posts incessantly about throwing a giant NA crate engines in to everything under the sun, I think he's 14. Then in the bored thread when he said he yells at the starbucks baristas on the reg, I was convinced he's a 67 year old female that's president of the HOA and just got out of church

Very mysterious dude


Literally lol'd
Oh come on, trying to go fast n/a is the most Boomer thing you can do.
 

Intel

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Dividend portfolio is the most "passive income" option. If you can DRIP/reinvest all of your earnings year after year for a while you will be surprised how quickly it grows for you. If you are also adding to it it can add up even quicker.

This guy is playing with 500k right now, and is bringing in 16k a year in dividends

Rentals, Storage, Car wash, Laundrymats
More work involved in getting things going and creating systems so you are not always on the lock/working on them. Can scale pretty well. I am personally looking to buy 1-2 rental properties next year as an extra form of income for my car budget. Rents are pretty much always going up. Even in my area a house that has a mortgage for 1600 is renting for 2400-2500. Other areas I am looking at a 80-120k 4 bed 2 bath, 2 unit place has a mortgage for around 600-800 and rents for 1600-1900 depending on market and condition of the place.
 
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Outlaw

Outlaw

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Look at this. This is on ONE $200k investment, with NO reinvestment (meaning you cash out your dividends each quarter).


View attachment 103467

This is enticing, something I have zero understanding of and would have to dive into to understand. Might be worth doing with a portion of the money, but investments have always been voodoo to me.

One night I went down a rabbit hole of researching self serve coin-op car washes. In some cases a turn key business could be purchased in the $200-$300k ball park. From the little bit of reading I did, they return around $80-$100k annually after cost of maintenance and consumables.

I've gone down the same rabbit hole on more than one occasion. I know an old timer that owns one in Round Lake, and was considering asking him if he's ready to sell. He sold most of his rental properties this year, the coin-op is all he has left. Goes there every morning, empties the change sprays the walls of the bays down and empties the trash cans. Said he netted around 120k last year after expenses, but my assumption is rent/mortage isn't one of those expenses at this point.

Dividend portfolio is the most "passive income" option. If you can DRIP/reinvest all of your earnings year after year for a while you will be surprised how quickly it grows for you. If you are also adding to it it can add up even quicker.

This guy is playing with 500k right now, and is bringing in 16k a year in dividends

Rentals, Storage, Car wash, Laundrymats
More work involved in getting things going and creating systems so you are not always on the lock/working on them. Can scale pretty well. I am personally looking to buy 1-2 rental properties next year as an extra form of income for my car budget. Rents are pretty much always going up. Even in my area a house that has a mortgage for 1600 is renting for 2400-2500. Other areas I am looking at a 80-120k 4 bed 2 bath, 2 unit place has a mortgage for around 600-800 and rents for 1600-1900 depending on market and condition of the place.

Maybe I'm totally wrong here, but I don't see making $16,000/yr off of $500k as being all that great. Sure, if you want it to be truly PASSIVE its fine. I guess my definition of passive means it's not a 60hr/week job most of the time. I know in 10-15 years it would grow to be way more than that, I guess I'm just horrible at seeing a long-term plan like that play out. The walgreens stock I received pays a dividend that is set up to DRIP.

If I was going to do rental properties I'd for sure be shooting for those 80-120k 3-4bed 2ba places. Also something that wasn't my first house, I lived in and enjoyed just to watch someone fuck it up.
 

frank

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Why not do what the rich do “ use other peoples money “ use as little of your money as a down payment on a rental residential property or a Commerical warehouse to rent out, then take a mortgage, seeing that you are going to move in with your gf shouldn’t be much of an issue to obtain. have the tenants pay the mortgage etc… use left over money to purchase outright a second rental property for cash as in land, housing, warehouse, boat slip etc… double dip on rent coming in and reinvest into more properties.

Just remember to start a LLC for all your rental endeavors to show income and finance more property in the future.
 
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Outlaw

Outlaw

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I did plan on using other people's money if possible. Key point though... I don't pay myself shit out of my current business, so while my credit is great and I have extensive history, I may be walking into a situation only cash can resolve. If I try and buy a building and show a personal income of $30,000 and a business that's showed a loss on its taxes since incorporated I'm not quite sure what they'd say to me lol.
 

OffshoreDrilling

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I’m too dumb to do anything on my own. I’d start with a rental property though.
 

frank

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I did plan on using other people's money if possible. Key point though... I don't pay myself shit out of my current business, so while my credit is great and I have extensive history, I may be walking into a situation only cash can resolve. If I try and buy a building and show a personal income of $30,000 and a business that's showed a loss on its taxes since incorporated I'm not quite sure what they'd say to me lol.
If you use an accountant …. They Could redo your past tax returns to correct income reported ? i Know someone who is going through this at the moment.
 
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Outlaw

Outlaw

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I’m too dumb to do anything on my own. I’d start with a rental property though.

You're way smarter than me lol. I'm good at one thing. Buying things for less than I can sell them for, outside of that is uncharted territory.
 
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Outlaw

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If you use an accountant …. They Could redo your past tax returns to correct income reported ? i Know someone who is going through this at the moment.

My pops is a CPA so him and I do it all. I do all my quarterly filings and him and I do corpo and personal annuals.
 

Sprayin

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Just remember to start a LLC for all your rental endeavors to show income and finance more property in the future.

I see people say stuff like this all the time. How does this actually work? Have a good reference for me to read up on?
 
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Outlaw

Outlaw

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+1 on some good reads on the best way to structure it. I understand the jist of it... Run it all through the LLC so the earnings are there in black and white. Use the LLC in good standing to finance future deals. But I'm sure there's a ton of nuance I'm missing out on.
 

willizm

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Rentals have worked well for me. One of the houses we bought in Plainfield at 166k about 8 years ago. We’ve rented it the past 4 years at $2060/month minus about 25% for expenses, taxes, repairs, and insurance. It’s now worth about $320k and the rent could be $2600 in that area. So we doubled our investment and made 75k in passive income with the same tenant the whole time.
 

frank

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I see people say stuff like this all the time. How does this actually work? Have a good reference for me to read up on?
You are basically starting a company say “ sprayin real estate LLC “ anything related to your business will be ran under this company, taxes, mortgage, utilities, repairs, company cars, building insurance bank account where the money from rent will go to. You pay yourself dividends which you will be taxed on and then able to receive a w-2.

so basically the money coming into you LLC will not be-taxed until you take it out via a paycheck which then you pay taxes and get a w2. So one could have a million in your business LLC bank account and draw a salary of 25k a year and only be taxed on the 25k you paid yourself.

but…. When you want to withdraw all your money from the business LLC you will be taxed on the amount removed.
 

Turk

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I second the dividend fund. Businesses fail, a lot.
With 200k in dividend funds you could probably get around 4% annually along with 4-6% annual appreciation of the fund.
 
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