"A 27-year-old millionaire reveals how he built his wealth"

All good points and I agree it's not "news".

 

I simply enjoyed reading about a 27 year old (immigrant or not) who is down to earth, hard working and okay with not having a lot of material possessions which he determined would not make him happy.

 

So many of his generation have an attitude of entitlement and they want it all NOW, and think they should be living in a rock star "crib" and driving an exotic car and don't want to wait until they can afford it. It was nice reading about a guy who is working hard and trying to better himself and not expecting someone to hand him success.

 

Agreed! Nice to see some discipline and systematic investing. From what it sounds like, while he may not be living like a rock star yet (or in the future given how humble he sounds), the kid's mindset and discipline alone is setting himself up for a comfy retirement by the time he is 40 or 50 (if not sooner).

 

I don't understand this article then? He doesn't own those properties the banks do. He only owns the liability and the payment. The values they give are what he "claims" they are worth. His second property is not even 10% payed off....

This guy is one bad day away from bankruptcy. He only has maybe 150k in real actual liquid assets that he could obtain on short notice yet owes over 600k.

How did this guy get an article on how to be good with your money? 600k for 2% roi while being in debt past your eyeballs?

 

Did you read the end of the article? The guy has 106k in his bank account alone. Another $189k in a brokerage account (not as liquid as cash and subject to regular market fluctuations of course), and $175k in funds set aside for real estate expenses (I'm assuming another savings account). While he may not have a ton of equity in the property he bought recently for $430k, he also lives in it. So in addition to the moderate little $12,000 it is cashflowing, it is also free housing after all expenses are paid while he continues to build equity.

 

He also states he has almost $400,000 in equity in the other property he owns (if it is indeed worth $600k), which gives him a fairly big cushion if the real estate market plummets again, OR if he has to get out from the other property he owns and lives in).

 

Not too shabby at all IMO.

 

While not "Sprite Status" yet, I'd say he is doing pretty well for a 27 year old immigrant that started with nothing.

As someone who is currently in the Navy (23 years old), I have a similar strategy to this guy. I have the same type of IRA that this guy has, and I'm currently getting into the real estate field. My goal is to patent 2 ideas next year, and spend half of my money made from real estate on investing, next year, (Stocks, buying real estate, etc), and to spend the other half of my money on a salvaged countach. I really hope it works out!

 

Before I joined the Navy, I was working full time minimum wage jobs to pay for my car and other hobbies.

 

I was really surprised when watching the video to find out that this guy was in the Navy!

As someone who is currently in the Navy (23 years old), I have a similar strategy to this guy. I have the same type of IRA that this guy has, and I'm currently getting into the real estate field. My goal is to patent 2 ideas next year, and spend half of my money made from real estate on investing, next year, (Stocks, buying real estate, etc), and to spend the other half of my money on a salvaged countach. I really hope it works out!

 

Before I joined the Navy, I was working full time minimum wage jobs to pay for my car and other hobbies.

 

I was really surprised when watching the video to find out that this guy was in the Navy!

Good luck and thank you for your service.

 

 

I don't get the fascination with depriving yourself in order to save for a better life sometimes in the future, live in the moment, money is not the magic elixir for happiness, maybe I should write a damn book, I would save lots of people a lot of time, stress and headaches

 

Sometimes one has to deprive themselves early on in order to build up their business and thus enjoy the fruits of success later. Living in the moment is great, but sometimes temporary sacrifices are required to build up the big fortune.

Sometimes one has to deprive themselves early on in order to build up their business and thus enjoy the fruits of success later. Living in the moment is great, but sometimes temporary sacrifices are required to build up the big fortune.

 

Do you REALLY feel the need to lecture the guy with a targa top HOUSE on the fundamentals of amassing a fortune?

 

REALLY WHEELS?

 

Do you REALLY feel the need to lecture the guy with a targa top HOUSE on the fundamentals of amassing a fortune?

 

REALLY WHEELS?

 

 

I am not lecturing anyone. That is why I said "sometimes," not every time. There are plenty of people with fortunes who have written about how they had to do without for awhile in order to build themselves up. However I see your point,. Maybe I should have made my point in the form of a question.

I am not lecturing anyone. That is why I said "sometimes," not every time. There are plenty of people with fortunes who have written about how they had to do without for awhile in order to build themselves up. However I see your point,. Maybe I should have made my point in the form of a question.

Wheels, if you are ever on Jeopardy let me know. That I would watch.

 

 

How the hell is this guy a millionaire?

Regardless of if the buy is a millionaire or not, I'm pretty sure he is on his way to be and not only that, he's doing a hell of a lot better than most other people my age or others in their twenties, and nobody can deny that.

Sometimes one has to deprive themselves early on in order to build up their business and thus enjoy the fruits of success later. Living in the moment is great, but sometimes temporary sacrifices are required to build up the big fortune.

 

Wheels I am talking from experience, no offense

 

My comment was perhaps a bit oversimplified, I might write something on the subject in the near future and I will try to explain myself better.

 

 

Good luck to him...

Aren't majority of self made millionaires in the US immigrants?

I also don't get why this would be a revelation to anyone...

 

its not really a rocket science story, I'm sure many here have done much the same, I know its how I started, but that said as mentioned above, shit can happen in your life and ruin the best laid plans you can lose it as fast as you make it.

 

Wheels I am talking from experience, no offense

 

My comment was perhaps a bit oversimplified, I might write something on the subject in the near future and I will try to explain myself better.

 

No offense taken

Agreed! Nice to see some discipline and systematic investing.

 

 

Did you read the end of the article? The guy has 106k in his bank account alone. Another $189k in a brokerage account (not as liquid as cash and subject to regular market fluctuations of course), and $175k in funds set aside for real estate expenses (I'm assuming another savings account). While he may not have a ton of equity in the property he bought recently for $430k, he also lives in it. So in addition to the moderate little $12,000 it is cashflowing, it is also free housing after all expenses are paid while he continues to build equity.

 

He also states he has almost $400,000 in equity in the other property he owns (if it is indeed worth $600k), which gives him a fairly big cushion if the real estate market plummets again, OR if he has to get out from the other property he owns and lives in).

 

Not too shabby at all IMO.

 

While not "Sprite Status" yet, I'd say he is doing pretty well for a 27 year old immigrant that started with nothing.

 

Then he needs to pay off the first property so he actually owns it. All those liquid assets add up to "flat broke" when you factor in the debt. Equity in real estate means nothing if the economy collapses again. He would be lucky to sell no matter how low of a price he went on it. Atleast if he owns it he doesn't have to worry about next months mortgage. And at 90+% leverage on the other place he is dangerously close being being WAY upside down if the economy declines. He needs to sell that place an build up more actual cash before buying. His current situation is not much different from taking a 400k loan to a casino. Maybe it will work out if everything goes peachy but he is upside down otherwise.

 

This is exact same logic and behavior that led to so many losing their ass during 2008 yet now we have a news article about how smart this guy is? And he wants to own 8 more properties in 12 years? I shutter to think the kind of debt he is willing to risk to make that happen. Expect the worst and plan around it, rather than hoping things will stay positive for a 15+ year loan.

 

If he has an adjustable rate loan on any of those properties he could be in trouble within the next few years.

I don't understand this article then? He doesn't own those properties the banks do. He only owns the liability and the payment. The values they give are what he "claims" they are worth. His second property is not even 10% payed off....

This guy is one bad day away from bankruptcy. He only has maybe 150k in real actual liquid assets that he could obtain on short notice yet owes over 600k.

How did this guy get an article on how to be good with your money? 600k for 2% roi while being in debt past your eyeballs?

 

AKA, living the American dream bro.

 

How the hell is this guy a millionaire?

 

 

He just tied himself down to >500k debt.

 

Call me crazy, but I would rather have $100 and be free, than have those obligations.

 

Granted, things will work out for him long term, he will be more than ok. Smart kid! Wish more were like him.

American dream as in:

Debt

Repossession

Eviction

Austerity

Money illusion

I don't see a millionaire. I see a mountain of debt.

I don't see why people are poo-pooing this guy. I wish more people would learn to live within their means.

I don't see why people are poo-pooing this guy. I wish more people would learn to live within their means.

 

Assman you do know LP has a no mercy policy LOL

 

Whatever this guy is doing isn't very significant therefore not special enough in the eyes of many hence the poo-pooing I guess.

 

Based on my own experiences living within your means has little to do with you being able to amass a lot of wealth quickly (if that's what your goal is), it would take me 10 lifetimes of living within my means while on minimum wage in order to save the money I need just for one of my deals.

 

I am not saying one should be wasteful, I am VERY far from being wasteful, what I am saying is that just by starving yourself while on minimum wages will not cut it, not in a million years, yes to a certain degree you will have the opportunity to rise about the greater majority but it will take a long time and until you get there you will be miserable along with everyone else around you, the key is making more money not really saving your pennies and for that you really have to know what you are doing and have a massive pair of elephant balls!

 

The guy's strategy is wrong because he's too exposed, you have to minimize your exposure along the way but for that you can't be small, he's way too small, not enough volume going on, hopefully he will learn soon and change his strategies but generally people learn only after the get burnt I wish him the absolute best, nothing makes me feel better than seeing people having the drive to have a go!

Seems like modern North America debt is seen as wealth... a lot of "ballers" I see have 2 leased luxury cars and a multi million dollar house with 90% of it mortgaged. As Fortis said your too exposed.....if interest rates take a hike you could be screwed. I agree with Fortis...do what you do, work hard, be smart about your steps, don't accumulate debt and the rest will follow. These days the old Andre Agassi ad rings true "image is everything"..... long term tho it's a house of cards

Assman you do know LP has a no mercy policy LOL

 

Whatever this guy is doing isn't very significant therefore not special enough in the eyes of many hence the poo-pooing I guess.

 

Based on my own experiences living within your means has little to do with you being able to amass a lot of wealth quickly (if that's what your goal is), it would take me 10 lifetimes of living within my means while on minimum wage in order to save the money I need just for one of my deals.

 

I am not saying one should be wasteful, I am VERY far from being wasteful, what I am saying is that just by starving yourself while on minimum wages will not cut it, not in a million years, yes to a certain degree you will have the opportunity to rise about the greater majority but it will take a long time and until you get there you will be miserable along with everyone else around you, the key is making more money not really saving your pennies and for that you really have to know what you are doing and have a massive pair of elephant balls!

 

The guy's strategy is wrong because he's too exposed, you have to minimize your exposure along the way but for that you can't be small, he's way too small, not enough volume going on, hopefully he will learn soon and change his strategies but generally people learn only after the get burnt I wish him the absolute best, nothing makes me feel better than seeing people having the drive to have a go!

 

I wish I had Fortis's articulation skills, I would have simply said the Russian is a poser and full of shit.

Anyways, its the over exaggeration of reality which bothers many on here. I think Yahoo was desperate for a story and this is what happens.

If you walk into most real estate clubs here in Socal you will find much better success stories even at his age.

 

 

Assman you do know LP has a no mercy policy LOL

 

While I understand completely his way is flawed and not the way to make millions, we need to look at the readership of that article. We have a lot of highly successful people, but the majority of people that read that article will obviously be in the lower 85%. So if the take away is, live frugally within your means, save and invest, then goddamn I'm all for it being read as a role model. It's much better than assholes saying do what you want because the government will save you and bail you out.

 

That's my point.