Top Real Estate Dividend Picks For The Day

Performance in the real estate sector generally tracks the economic cycle. During periods of high growth and inflation, real estate investments usually post strong returns. However, during an economic bust, these investments tend to underperform. During these times, companies such as Hersha Hospitality Trust and

What are some realistic ways to get rich in 5 years? I’m 25 now and want to hit around 200k USD by the age of 30. What are my options?

$200k by 30? How about 500k by 30?

I can see where you are coming from, you (and I) grew up hearing this our whole life:

“Go to school, get good grades, get a good job, save 10% of your paycheck, get married, be frugal, live below your means, trust your life-savings to the stock market, and one day, when you are maybe, 70 years old, you can retire rich.”

I’ve finally woken up and it seems you have as well!

I’m 24 (almost 25) so we are in the same boat. I’ve realized that entrepreneurship is the way to become rich if that’s my goal. There are only so many hours in a day. In addition, I will get (if the company does well) a 3% raise at the end of each year. How is that motivating??

First, let me tell you about what I’m learned about having success with entrepreneurship. Second, I will tell you about the two ways I’m looking to build wealth.

First, every successful business is able to satisfy the following 5 things:

  • There must be a need for your product or service
    • Good luck trying to sell me (or anyone) on a brick phone from the 90s.
    • Find out what problems people have and look to provide a solution.
  • There must be a reasonable entry point for your product or service into the marketplace
    • How much luck do you think you will have creating a search engine and competing with Google? Creating a new social media network and competing with Facebook? I’d guess 0 luck.
    • There are so many niches out there which I’m looking to explore. If you can capture 1% of a niche market, you can become well off.
  • You must be in control of your revenues
    • Essentially, stay away from multi level marketing schemes (unless you are the creator of them!)
  • The business must be able to scale
    • Starting up a coffee shop in your hometown probably won’t result in massive growth because there are only so many hours in a day and people in the town.
    • The internet has unlimited scale. You have access to potentially 7 billion people!
  • You must be able to leverage time by being able to step away and still make money
    • Can you generate passive income off of your investments or business?
    • It’s still a job if you have to work 14 hours a day! (Caveat, if at some point, you can step away and work 1–2 hours a day and collect checks, then your business satisfies the requirement).

Another point I’d like to make: if you want to make millions, you have to reach millions. Look to provide value and make an impact on other people’s lives. This goes back to point #1: if you provide value and figure out a solution to some group of people’s problem, you can make money.

Now to answer your question more directly, here is what I’m looking to do in the next few years:

  • Continue to invest in real estate
    • Real estate is awesome if you get the right deal. There is definitely potential to get caught up in a bad situation, but you can mitigate this by being patient and smart with your purchases.
      • You make money when you buy, not when you sell.
    • I love real estate because it is:
      • Accessible – Anyone can buy it
      • Appreciable – Can increase in value over time
      • Leverageable – You can buy on margin and borrow against equity
      • Rentable – Cash flow baby!
      • Improvable – Through sweat equity or contracting out
      • Deductible/Depreciable/Deferrable – Amazing tax benefits
    • In the past 2 years of owning my house and renting it out to friends and roommates, I’ve been able to build some nice wealth and save a decent amount of money.
      • If you can get roommates, I’d highly recommend it. I claim the rent paid to me on my taxes and as a result, can claim any home improvements as expenses which lowers my tax bill.
    • I’m looking to pick up another property in 2017. The market near me is relatively hot, but there still may be a deal or two to be had! Like I said, you make money when you buy, and therefore I will have to be picky.
  • Continue to learn more about the internet, blogging, content marketing
    • Late in 2016, I started a blog called The Mastermind Within.
      • The Mastermind Within team is made up of myself and two other friends who post book reviews, personal finance tips, and entrepreneurship tips.
      • We recently came out with a free debt destruction tool! You input your debts and it shows you your savings if you apply 1 of 2 debt pay off methods.
      • Right now, we are still building our presence online. We had about 3,000 views in March. The ultimate goal here is to help people with their situation, either financial, personal, or entrepreneurial!
    • In my spare time, like I said, content marketing is a huge interest of mine.
      • Google search engine (SEO marketing) is a game I want to play and do well at.
      • If I can learn how to write content in such a way that Google will put me at the top of the search ranking, then I will get traffic for free! This satisfies the Time and Scale of the business equation.
    • We are going to look to consult individuals and businesses on various things
      • The concept of “We are experts in personal finance, we can help you get out of debt and onto financial freedom. We offer a 15 free consultation and afterwards, we can either schedule paid 1–1 coaching, paid email coaching, or ad-hoc emergency coaching.”
    • Finally, an e-book!
      • Like I said above, if you want to make millions, you have to reach millions. If you write an e-book and price it at $1. If you sell 100,000 of it, you just made $100,000!

I’m very excited for the future.

To recap, I believe real estate and the internet are great ways to build wealth.

I have a few book recommendations for you:

So, actionable steps for you. In this year, figure out a way how to generate $100 in passive income a month. You can do this a number of ways (like I said above, I’m using real estate and the internet).

Another possibility is buying dividend stocks. If you have $50,000 in an investment portfolio, a 3% dividend yield will give you roughly $100 a month in dividend payments. As time goes on, this yield will increase and you can add to your portfolio. Many people are using this strategy right now. There is a whole community of dividend growth bloggers who talk about it.

“The world is full of money. Some of it has my name on it. All I have to do is collect it.”– Felix Dennis

Thanks for reading… I got a little carried away!

Erik

 

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