stublackwell
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@igortachkent Bro, buy a house. Shit is getting expensive.
I am 19, I have around 100k ready to put into a business. What should I do?
- Thread starter igortachkent
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galileesilk
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@stublackwell 
but depends on what state/city,
but depends on what state/city,lily_pad_96
New member
@stublackwell Tough time for that with mortgage rates where they are at 7-8% and the rising cost of homes. Plus he would need a good credit history to get the lowest rate. Rates have jumped 5-6 points in the past 4 years.
musicismyreligion
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@stublackwell Is now the best time to buy?
musicismyreligion
New member
@igortachkent do you own your house? If not, buy a house, or as much of a house as possible.
100k is a tricky number. It's more than enough money to bootstrap a fairly humble trade business, but it's not quite enough to jumpstart something massive and start paying other people's salaries.
I'd strongly suggest, if that 100k is all the money you have, that you put maxiumum 20k of it into starting a business. At your age, you could go to uni for free with that money, which will give you a huge leg up for the rest of your life. You could also sink it all on the first bad idea you find and lose it all in weeks.
Honestly, 100k is worthy of a couple of hours with a financial planner. I appreciate the want to start earning capital, but at 19, there are many, much smarter moves you can make with 100k than buying some unsellable waste from china.
100k is a tricky number. It's more than enough money to bootstrap a fairly humble trade business, but it's not quite enough to jumpstart something massive and start paying other people's salaries.
I'd strongly suggest, if that 100k is all the money you have, that you put maxiumum 20k of it into starting a business. At your age, you could go to uni for free with that money, which will give you a huge leg up for the rest of your life. You could also sink it all on the first bad idea you find and lose it all in weeks.
Honestly, 100k is worthy of a couple of hours with a financial planner. I appreciate the want to start earning capital, but at 19, there are many, much smarter moves you can make with 100k than buying some unsellable waste from china.
musicismyreligion
New member
musicismyreligion
New member
@musicismyreligion Sure but that would be independent of the balance in the account.
@musicismyreligion Real estate. Find a cheap house in a safe area you can rent out, if you can find something in the area that’s 100k, can likely rent it out for 1200 earning about 300-400 a month. Do that a few times.
In general though, you’re too young to have good credit or have people respect you that work for you. Maybe you can find a way around that but you’d be a miracle child.
Also, I highly recommend keeping what you have. Automate what you can, find someone to manage the rest. I’d rather make 10% and do nothing than making 100% and doing everything.
I really have a hard time believing anyone here who says go to uni is an entrepreneur. Absolute worst investment you could make if you’re already running a profitable business. That’s 5 steps backward. We’re self starters here, we got the internets and don’t need no school.
In general though, you’re too young to have good credit or have people respect you that work for you. Maybe you can find a way around that but you’d be a miracle child.
Also, I highly recommend keeping what you have. Automate what you can, find someone to manage the rest. I’d rather make 10% and do nothing than making 100% and doing everything.
I really have a hard time believing anyone here who says go to uni is an entrepreneur. Absolute worst investment you could make if you’re already running a profitable business. That’s 5 steps backward. We’re self starters here, we got the internets and don’t need no school.
@musicismyreligion House doesn't appreciate fast, & doesn't give OP a steady stream of income. OP would have to buy a house and then start another business or get a job.. not thing OP needs to do since they already figured out how to make money from a profitable business.
OP should buy a house if it's a business- as in tenants. Or OP should buy another business.
OP should buy a house if it's a business- as in tenants. Or OP should buy another business.
musicismyreligion
New member
@act
That isn't the point of a house. A house is a necessary asset that is almost guaranteed to appreciate in value. Nothing else ever does that, and there's a reason that home ownership is considered the obvious first choice to put excess capital in.
Absolutely not, buy-to-let investments need significantly more capital than op has, especially assuming he doesn't own his home yet.
You absolutely will not find a business worth buying for 100k.
A business valued at 100k will have a P/E ratio so low that op won't be looking at making back that investment for almost a decade, assuming continuous business success.
That isn't the point of a house. A house is a necessary asset that is almost guaranteed to appreciate in value. Nothing else ever does that, and there's a reason that home ownership is considered the obvious first choice to put excess capital in.
Absolutely not, buy-to-let investments need significantly more capital than op has, especially assuming he doesn't own his home yet.
You absolutely will not find a business worth buying for 100k.
A business valued at 100k will have a P/E ratio so low that op won't be looking at making back that investment for almost a decade, assuming continuous business success.
@musicismyreligion 100k is not the price of the other business. It is for down payments & seller financing.
Also, buying a home for rent with tenants doesn't need "significantly" more.. OP can grab a beautiful duplex for 400k in certain markets, & put in 20% down. With a duplex, OP will get double the rent from 2 tenants.
OP has experience being an entrepreneur & figured out how to make money. OP needs to finesse this skill to earn more, Not get a job. OP has the necessary skills to provide jobs.
Also, buying a home for rent with tenants doesn't need "significantly" more.. OP can grab a beautiful duplex for 400k in certain markets, & put in 20% down. With a duplex, OP will get double the rent from 2 tenants.
OP has experience being an entrepreneur & figured out how to make money. OP needs to finesse this skill to earn more, Not get a job. OP has the necessary skills to provide jobs.
musicismyreligion
New member
@act I'm sorry, financing? Who on earth do you think is handing out business loans for 19 year olds trying to buy businesses over $100k?
You're absolutely right, but if you think anyone in their right mind takes all of their capital and dumps it into one single thing, then you really, really shouldn't be handing out business advice. Investing in the scale op is discussing is something you do once you've made it, not when you're 19, don't have tertiary education and your own home. Hell, I've been running a business for 10 years with 6 figure turnover, own a home etc etc and wouldn't even dream of just dumping 100k into buying another business.
You're absolutely right, but if you think anyone in their right mind takes all of their capital and dumps it into one single thing, then you really, really shouldn't be handing out business advice. Investing in the scale op is discussing is something you do once you've made it, not when you're 19, don't have tertiary education and your own home. Hell, I've been running a business for 10 years with 6 figure turnover, own a home etc etc and wouldn't even dream of just dumping 100k into buying another business.
@musicismyreligion Man of course you don't want to dish out 100k after 10 years of business. You have everything to lose. OP is just 19, OP can fail for the next decade & STILL be only 29 & create a life changing business in their early 30s.
At 19, OP can go all in on anything. If they use all their skills they learned from saving 100k in profit from a merchandising business that they started at 17, what more can they do??
And if they don't wanna go all in with 100k, that's fine too. They can stow away 30k to spend on themselves for the next 6-8 months, & the rest goes into the next business.
At 19, OP can go all in on anything. If they use all their skills they learned from saving 100k in profit from a merchandising business that they started at 17, what more can they do??
And if they don't wanna go all in with 100k, that's fine too. They can stow away 30k to spend on themselves for the next 6-8 months, & the rest goes into the next business.
lily_pad_96
New member
@musicismyreligion Housing market isn't great it has been over 20 years since mortgage rates were this high. Couple that with home prices being potentially overvalued. We don't know his location etc.
@igortachkent use it as a down payment for a multifamily house, unless you have a great free housing option right now. You could move out on your own become a landlord and just start saving for for the next property.
genericwhitegirl85
New member
@genericwhitegirl85 100k down is 20% of a 500k multi… that can get you 3-4 unit homes in some places. Tenants pay your mortgage and you pocket the rest. obviously a big jump for a 19 yr old though