How to MAKE a million bucks!

[Oilers82]

My only problem with this strategy is that in Toronto, there aren't any huge deals like this to be had. Much more competitive environment in the GTA. I don't have the time to deal with any problems that arise in another city, so it has to be something that can be done easily in Toronto.

Agreed. The RE investment strategy is very difficult (never say impossible) in the GTA these days with prices the way they are. I took a long hard look at RE investing a couple years back and decided to shy away because the numbers didn't make sense. You also need to make enough capital to start up that cycle of income-generating properties.

Mookie no truer words than #3 on your list!

[Jungle]

Mookie that was a great post, thank you for spending the time to write all that out! Hopefully this thread helps a lot of people.

[indexxx]

holy crow- where are these $60,000- $100,000 properties?? I need to get the hell out of Vancouver... 1 bedroom apt in a crappy eastside building will start at least $200-250k. Studios apts start at 150-175k.

[Causalien]

Here's my waterfall plan. Escalating investment based on the cost of capital of each investment. The reasoning is time and leverage. Obviously if I just stay with step 1, it'll take about 40 years to get there.

Step 1 leverage ratio 0%: To begin, have nothing but time, Networth $0: Find job. Work until networth is 50k.
Step 2 leverage ratio 20%: Next, some savings from job: Start investing/trading from 50k to 200k
Step 3: leverage ratio 500%: Now, enough money for condo or rental units: RE investment from 200k to 500k
Step 4: leverage ratio 0%: Can finally buy businesses: Buy businesses from 500k to $1million

[Just a Guy]

holy crow- where are these $60,000- $100,000 properties?? I need to get the hell out of Vancouver... 1 bedroom apt in a crappy eastside building will start at least $200-250k. Studios apts start at 150-175k.

A quick search on MLS showed me Three places in Surrey between 78k-106k, 10 places in Richmond...you just have to look a little outside.

For GTA people I found apartments starting at $44.5k, 3 bedrooms for $69k.

Not saying any of these are in good areas, or are a good investment just that they exist.

[ddkay]

Yeah there are $50K apartments/condos if you want to buy in North Etobicoke or Jane & Finch

[mrPPincer]

holy crow- where are these $60,000- $100,000 properties?? I need to get the hell out of Vancouver... 1 bedroom apt in a crappy eastside building will start at least $200-250k. Studios apts start at 150-175k.

That's just crazy. If I had work in Vancouver I'd live in a van and shower in the YMCA or something.

[HaroldCrump]

If I had work in Vancouver I'd live in a van

The parking spot for the van will cost $100K a year

[SlowandSteady60]

Quick reply for now but on the Real estate ideas, look for student rental units, near a College or University, look for responsible second year students who are serious about their studies, take care of your condo and your students and all is good. Real estate in Toronto, as far as I can see, does nothing but go up. For a good read, "Building Wealth One House at a Time" by John W. Schaub is an excellent read. Being a millionaire is very achievable but it takes patience and contrary to what others have posted, I'm a "richer" man with two grown boys who are as frugile as their parents. Having kids is a good thing. Good luck to you. Money isn't everything.

[ghayoor]

I imagine the thread will be full of examples of the old adage "It takes money to make money" and survivorship bias.

How to make a million dollars: The recipe.

1. Get good paying job.
2. Save money.
3. Invest that saved money in something (Stock market, Real Estate, whatever).
4. Wait until you have a million dollars.

I screwed up the first step.

With a family income of 60k a year and two small kids, it'll be a long time until I end up with a million in cash. But I'll get there (when a million is only worth 500k today)

You are 100% right that is all we need to do in our life.I am also going to finish my first step then will consider else remaining what do u say about rapid progress?