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Started By
Message
Investment and building net worth
Posted on 12/22/11 at 5:24 am
Posted on 12/22/11 at 5:24 am
I have been contracting overseas for a little while and have paid off my debts save the house. When I wrap up here in the late spring, I should have close to 100 in the bank.
My ultimate goal was to start opening franchises and I have my eye on 2. One is only available in the county and while I think I would make a return, I am skeptical of how much and it is really my option 2. My option 1 is a franchise that I could get in the location I want, but I am short on net worth.
There aren't a lot of options to build the additional NW I will need safely. I am not willing to take a ton of risk through penny stocks or anything like that, so I was looking @ buying foreclosures as a way to build the NW and generate a little bit of cash in the interim. My problem is I just don't see a huge opportunity here either. Am I wrong? I know a lot of people make a good living through real estate and maybe I am just missing on some key points here, but it seems like the foreclosed homes are in shitty areas and/or are not very far below market value.
So, 2 questions here. Anyone with franchising experience in the food industry that has any tips/pointers would be greatly appreciated. 2nd, anything in the housing sector, or is it a slow developing gig where I would do better investing conservatively in the stock market?
TIA.
My ultimate goal was to start opening franchises and I have my eye on 2. One is only available in the county and while I think I would make a return, I am skeptical of how much and it is really my option 2. My option 1 is a franchise that I could get in the location I want, but I am short on net worth.
There aren't a lot of options to build the additional NW I will need safely. I am not willing to take a ton of risk through penny stocks or anything like that, so I was looking @ buying foreclosures as a way to build the NW and generate a little bit of cash in the interim. My problem is I just don't see a huge opportunity here either. Am I wrong? I know a lot of people make a good living through real estate and maybe I am just missing on some key points here, but it seems like the foreclosed homes are in shitty areas and/or are not very far below market value.
So, 2 questions here. Anyone with franchising experience in the food industry that has any tips/pointers would be greatly appreciated. 2nd, anything in the housing sector, or is it a slow developing gig where I would do better investing conservatively in the stock market?
TIA.
3
Posted on 12/22/11 at 7:24 am to homeskillet
I believe the common answer for a food franchise will be that the best ones are very expensive and not a wise investment if you don't have any experience in the industry
Posted on 12/22/11 at 7:32 am to homeskillet
So, your question is, "how can a make a good bit of money, fast, and without a lot of risk?"
I'm bookmarking this thread.
I'm bookmarking this thread.
Posted on 12/22/11 at 7:38 am to TheHiddenFlask
quote:LOL...I guess when I re-read it reads that way. But no, I am more interested in quality investments and "quick" is relative. I am saying in the next 5-10 years.
So, your question is, "how can a make a good bit of money, fast, and without a lot of risk?"
I need more NW, so with that being said, slow growth stocks vs. real estate investment is a better way to put it I guess.
Posted on 12/22/11 at 7:43 am to homeskillet
XOM Stock, with dividend reinvestment. "Set it, and forget it."
Posted on 12/22/11 at 7:43 am to TheOcean
quote:True...
I believe the common answer for a food franchise will be that the best ones are very expensive and not a wise investment if you don't have any experience in the industry
I have some pretty decent management experience, but none in the food industry although I have put a few years in there, it has been a while. The one I am looking @ is 300k startup, top 10 in every franchising list I have seen over the past few years.
I am looking more to be a multi-unit owner, so hiring good management would be key.
Posted on 12/22/11 at 9:42 am to homeskillet
Key to franchise success:
Location, location, location
Solid daily manager(this may not be you so hire carefully)
Stay engaged
customer service
Don't skimp on marketing- if you no nothing about advertising- hire an agency
Franchises are high maintenance investments- think long and hard before you do this
Location, location, location
Solid daily manager(this may not be you so hire carefully)
Stay engaged
customer service
Don't skimp on marketing- if you no nothing about advertising- hire an agency
Franchises are high maintenance investments- think long and hard before you do this
Posted on 12/22/11 at 9:47 am to homeskillet
The franchise thing, you should go work in a few locations and ensure that is really what you want to do and if the margins are anywhere near what is represented to you, otherwise you could end up with a very marginal investment that devours your time, energy, and capital.
RE is not what I would envision as a vehicle to ramp up your NW quickly, rentals/foreclosures can become money pits if you are not able to handle a lot of work on your own or want to devote the time to it, and stocks are inherently risky over most time periods. There is no way to estimate today what financing options will be available to potential buyers of the property when you want to sell, and if you don't get a bargain purchase option that allows significant upside it is not going to increase your NW much, if any, over the short run. Maybe you should keep contracting as that seems to generate significant earnings for you.
Best way to grow NW quickly are win the Powerball, inherit big money, or be the second coming of Buffett, Klarman, et al. Big income and high savings rates work, but it still takes time and good investing fortune.
RE is not what I would envision as a vehicle to ramp up your NW quickly, rentals/foreclosures can become money pits if you are not able to handle a lot of work on your own or want to devote the time to it, and stocks are inherently risky over most time periods. There is no way to estimate today what financing options will be available to potential buyers of the property when you want to sell, and if you don't get a bargain purchase option that allows significant upside it is not going to increase your NW much, if any, over the short run. Maybe you should keep contracting as that seems to generate significant earnings for you.
Best way to grow NW quickly are win the Powerball, inherit big money, or be the second coming of Buffett, Klarman, et al. Big income and high savings rates work, but it still takes time and good investing fortune.
Posted on 12/22/11 at 10:21 am to tirebiter
thanks 357 and tirebiter. Solid responses.
@ 357, yes, location location location! I have a general area picked out and wouldn't do it without it being there. The foot traffic and income of people working in the area are very ideal.
Tirebiter, thanks for the input, especially on RE. I hadn't thought of the time requirement. My follow on job will require quite a bit of travel and I am a good handyman, but likely wouldn't be home for all of it. Would love to keep contracting for the money, but time spent over in Afghanistan and Iraq is about maximized for what me and my family can tolerate. I guess patience is key here as you alluded to. I am barely 29 and doing quite well for myself and family IMO. I just have to do it smart and realize it won't come overnight.
@ 357, yes, location location location! I have a general area picked out and wouldn't do it without it being there. The foot traffic and income of people working in the area are very ideal.
Tirebiter, thanks for the input, especially on RE. I hadn't thought of the time requirement. My follow on job will require quite a bit of travel and I am a good handyman, but likely wouldn't be home for all of it. Would love to keep contracting for the money, but time spent over in Afghanistan and Iraq is about maximized for what me and my family can tolerate. I guess patience is key here as you alluded to. I am barely 29 and doing quite well for myself and family IMO. I just have to do it smart and realize it won't come overnight.
This post was edited on 12/22/11 at 10:24 am
Posted on 12/22/11 at 11:07 am to homeskillet
quote:
I guess patience is key here as you alluded to. I am barely 29 and doing quite well for myself and family IMO. I just have to do it smart and realize it won't come overnight.
Sounds like you are ahead of the game. I own multiple properties-residential and commercial, I have come to the conclusion that residential is my least favorite investment. Not least profitable, but sometimes being a landlord can get old. Best thing about investing in public securities is they are portable and if you have done a sound job of establishing an investment plan and stick with it you can move wherever you want and not be tied to illiquid property/houses/land/offices/business. Personally, I would hate to be tied to a multi-unit franchise that is not performing and/or the franchise system is not providing support the franchisee is paying.
Keep thinking and grinding, you are way ahead of the masses.
Posted on 12/22/11 at 1:27 pm to tirebiter
quote:
My ultimate goal was to start opening franchises and I have my eye on 2. One is only available in the county and while I think I would make a return, I am skeptical of how much and it is really my option 2. My option 1 is a franchise that I could get in the location I want, but I am short on net worth.
does Huntsville have a momma goldbergs yet? I know the guys who opened the Birmingham locations and they are doing really well. Opened their first one about 4 years ago and now have 3 of them throughout town. don't think they require as much investment as a traditional chain. and none of these guys had any experience in the restaurant industry.
This post was edited on 12/22/11 at 1:29 pm
Posted on 12/22/11 at 1:38 pm to Alabama Slim
quote:Yes, there is one on whitesburg and airport road and it seems to do well. I have my eye on a competitor that is priced the same for opening.
does Huntsville have a momma goldbergs yet? I know the guys who opened the Birmingham locations and they are doing really well. Opened their first one about 4 years ago and now have 3 of them throughout town. don't think they require as much investment as a traditional chain. and none of these guys had any experience in the restaurant industry.
Posted on 12/23/11 at 2:52 pm to homeskillet
quote:
homeskillet
What line of contracting are you in?
Posted on 12/23/11 at 4:23 pm to RidiculousHype
quote:IT
What line of contracting are you in?
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