"SHOW ME THE MONEY" VIEWS on HOW to make MONEY GR

[GrnBay007]

Live rent free (or low amount of rent) with your parents for a few years!!! .....and save, save, save!

[MJZiggy]

So, lets say I am fresh out of school with a job and the wind to my back. I have 3,000 riding in the bank and 10k in student loans the day I graduate. I need a place to live. What is the best thing to do to maximize wealth later on in life?

I'll try this one. You do everything I didn't do and should have. Live in the cheapest place you can (if you can stand it, Mom's Place usually has good rents, but a lot of times they expect free labor and the landlady can be a little nosy).

During this time, put the max you can into your 401K and don't buy anything unless you'll have the money to pay for it before the bill comes. Save up an easily liquidated emergency fund of about 3 months salary and keep it as just that--an emergency fund. As your salary increases, remember to add to the fund a little. Once you have that done, start saving so that when you're ready you can buy a house. The goal here is to save enough so that you don't have to pay PMI insurance.

While you are saving for your emergency fund and down payment, You may want to start looking for someone to share it with (as a matter of fact, roommates or buying a duplex is not necessarily out of the question but really I was referring to wife). Then, hopefully, you should be good to go. Ok, guys, what did I miss?

[Fosco33]

So, lets say I am fresh out of school with a job and the wind to my back. I have 3,000 riding in the bank and 10k in student loans the day I graduate. I need a place to live. What is the best thing to do to maximize wealth later on in life?

I'll try this one. You do everything I didn't do and should have. Live in the cheapest place you can (if you can stand it, Mom's Place usually has good rents, but a lot of times they expect free labor and the landlady can be a little nosy).

During this time, put the max you can into your 401K and don't buy anything unless you'll have the money to pay for it before the bill comes. Save up an easily liquidated emergency fund of about 3 months salary and keep it as just that--an emergency fund. As your salary increases, remember to add to the fund a little. Once you have that done, start saving so that when you're ready you can buy a house. The goal here is to save enough so that you don't have to pay PMI insurance.

While you are saving for your emergency fund and down payment, You may want to start looking for someone to share it with (as a matter of fact, roommates or buying a duplex is not necessarily out of the question but really I was referring to wife). Then, hopefully, you should be good to go. Ok, guys, what did I miss?

I was in the near exact situation described above 4 years ago to the day (except I had about 10K in credit card debt and I had to move out of WI for my job).

So, I found a cheap place to live - well not cheap in Sconnie standards but I didn't want to pay more than 20% of my disposable income in rent.

I paid off the CC in about a year and, of course, locked in my student loans at the lowest possible rate and pay the min each month. I got into my companies 401k as soon as I could (most make you wait a year or so) and maxed the Roth each year.

You need possessions to live - so I got 'entry level' things - furniture and other household items. I figured I'd have to buy new things if and when I get married anyways. For almost three years, I did without a car (thus saving almost 800/mo in car payments and insurance - offsetting the higher cost of living/rent of being in Cali).

I don't know about the emergency fund savings right out of college. There are just so many options if you find yourself out of steady work (move back home, get a lower paying job, go back to school) that this money could be used for investments first. IMO, the emergency fund is definitely needed if you have a house but not before then.

I had a roomie for a little while but I couldn't stand the guy after 6 months. I've live w/ my girlfriend now - splitting it like 70/30 for rent and utilities.

Partial, you're in a good spot. Get the job you want and don't settle for less. Don't stress too much about money and just find a plan and stick w/ it. I believe you'll live longer and have more fun this way.

[Bretsky]

I'm strongly considering making my first real estate investment. 2,000 sq foot home on Whitewater Campus that normally is rented out to students for $1200 per month. From what I could pick it up as a FSBO for around 120G and I'm pretty sure it's worth more. The owner just wants to get rid of it after having two wrestlers do serious damage to the place; he's got er looking good again but wants out.

Any landlord's in here ? Anybody want to share good or nightmare experiences ? Or Biases ?

The scary part is that location and house wise it's the ultimate party house everybody would dream of renting in college.

My bias would be to try to rent to chicks; right or wrong it's my view they'd take care of the property better. Stict lease...etc.

Thoughts to share from experience ?

Maybe Retailguy would talk me out of this as a bad idea ?


Cheers,
B

[Partial]

Only rent to girls, definitely will work out better for you in the long run. Interview the group too, before you lease.

[MJZiggy]

I believe it was Motley Fools said a few years ago that that's how you should always house your children for college. You buy the house before they go in, rent it to your kid and a bunch of their friends and your student housing is paid for. You're just doing it a little before you actually need it. 1200 a month on a 120K investment doesnt' sound too bad to me. If possible, try to rent to adults returning to school or students paying their own way. They don't have time for parties and if they're older, don't necessarily mix much with the younger students.

[Partial]

yes, look for high GPA females with time consuming majors. I think that is the best way to go. That's a steal a friggin' steal at 120k.

[PaCkFan_n_MD]

Man, I have been tring to catch up with this thread and read it all, but so far really great advice.

[Partial]

so, i've been running the idea of opening my own business in my mind, does anyone have any tips or books on how to form a solid business plan? I would much rather work for myself then anyone else!!

Problem is, I don't know what there is a huge need in in the milwaukee area!!

[MJZiggy]

Try the Small Business Administration. They have classes, etc. on what to do to get started and if it's the right choice for you.

[the_idle_threat]

Bretsky---

If you become a landlord, be very careful to avoid an appearance of bias in renting the place out. If you express a preference in terms of gender, race, religion, family status, disability, etc. you could be opening yourself up to a discrimination lawsuit.

[Partial]

Bretsky---

If you become a landlord, be very careful to avoid an appearance of bias in renting the place out. If you express a preference in terms of gender, race, religion, family status, disability, etc. you could be opening yourself up to a discrimination lawsuit.

He'll be alright as long as he doesn't make an non-politically correct statements. I think its retarded that a renter has to worry about a lawsuit, they should be able to give their property to whomever they feel comfortable with. Stupid, stupid supposedly progressive but really just a pain in the ass laws.

[Fosco33]

so, i've been running the idea of opening my own business in my mind, does anyone have any tips or books on how to form a solid business plan? I would much rather work for myself then anyone else!!

Problem is, I don't know what there is a huge need in in the milwaukee area!!

I've got experience. PM me if you want some details.

[the_idle_threat]

Bretsky---

If you become a landlord, be very careful to avoid an appearance of bias in renting the place out. If you express a preference in terms of gender, race, religion, family status, disability, etc. you could be opening yourself up to a discrimination lawsuit.

He'll be alright as long as he doesn't make an non-politically correct statements. I think its retarded that a renter has to worry about a lawsuit, they should be able to give their property to whomever they feel comfortable with. Stupid, stupid supposedly progressive but really just a pain in the ass laws.

I agree that these laws can be a pain in the ass, but I wouldn't be so quick to dismiss their reach ...

Jancik v. Dept of Housing and Urban Development was decided the 7th Circuit Court of Appeals in 1995. Wisconsin is part of the 7th circuit, so this ruling is binding precedent in Wisconsin with regard to the Fair Housing Act (FHA).

In this case, an apartment owner in Illinois got nailed to the wall to the tune of over $55,000 in damages, fines and opponent's attorney fees. This does not include his own attorney's fees. His indiscretion? He ran a newspaper ad that contained the phrase "mature person preferred," which led a local watchdog group to set him up with two "test" renters to see if he would discriminate against them. He asked several very politically incorrect questions which touched upon race and family status, and the watchdog group filed the complaint. Aside from a $10,000 civil penalty, the remainder of the damage award went to the watchdog group to pay "damages" and attorney fees.

The legal reasoning in the case held that an advertisement alone violates the FHA even if the offending statement does not "jump out at the reader," and that "the statute is violated by 'any ad that would discourage an ordinary reader of a partiucular [protected group] from answering it.'"
Protected groups under the Act include "race, color, religion, sex, handicap, familial status, or national origin." So he was guilty just for the ad, separately and in addition to his inappropriate questions in the interviews.

So my point is: if you are going to be a landlord, be very careful. Jancik's verbal indiscretions were fairly substantial, but I think the ad was pretty mild. What landlord wants to rent to "immature people?" The situation you guys were describing above (where a gender preference was stated) could be cause for trouble. And as seen in Jancik, you don't even have to go so far as to deny housing to an actual bonafide applicant to be liable. Your newspaper ad could be cause enough, and/or a watchdog group could "test" you and earn a big payday in the process.

This above is not legal advice, by the way, even if I were in a position to give it.

[woodbuck27]

"They don't have time for parties and if they're older, don't necessarily mix much with the younger students." MJZiggy

Uhh ? Dam right College students find time to party. Big Time Ziggy.

Yes B. Rent out to 'the Ladies' as young men or alot of them - don't know how to wipe their arse. That is 'a fact' I discovered - living with about 55 people in three year's to get my degree.

Young people are a blast of fun though. I have many great memories of those I met at University.