Post: #1

Hey brethren, I've been lurking on RVF for years to great benefit. Some of y'all are kind enough to share REAL info based on your hard-won experience. I could really use some.

I would like--no, I am going to be spending some extended time in EE or Colombia. My plan is to suss out places and chicas where I could stay with long term and be happy.

I've got 30K cash and a 750+ FICO. I have no returns/w2's (I've been working abroad) so no conforming mortgage loans are avail to me.
I can get 'firm terms' stated income house loan for anything over 100k, the limiting factor is the 30% down required. I could pony up to 50k. This is an ARM at 7.5%.After mort, ins, taxes, misc-- I might net 1000 free per month.
My idea is to rent the property and live humbly abroad on the income and my online editing work. I'm thinking ~$1500-2k per month might be a doable minimum.

I live simply. I cook for myself and work/recreate on the net. I like cafe's and pubs - but drink little. I'm pretty handy with a guitar and enjoy jamming and working on tunes with my boys. My big costs are I'm a sportsman: country club sports + gymwork mostly. I see myself daygaming and looking for a few dating steadies (harem is too player a term for what I'm seeking) to penetrate and sightsee with.

Since I'm going abroad poss. to stay, I was thinking 'why are you getting tangled up in property?' Could I do just as well trading? I haven't much experience in that-- although I'm very numerate (MBA)and was a bond analyst back in the day. Forex? Options? Stocks? Or d'ya think I would just piss it all away learning?
My goals seem so modest -- $50/day trading-- that the confident part of me says, 'sure, no prob'. So big brothers, what would you do??

I appreciate y'alls insights.

Post: #2

(Honest disclaimer: education in finance, but I'm younger and less educated / experienced than you. Below based on theory, reading, and observation rather than hands-on experience)

Day trading - are you paper trading? I wouldn't want to trade on daily noise without ample experience and a good track record. There's a reason why you get to trade for pennies with most platforms - Wall street pros line up to trade against uninformed order flow.

Real estate investing, especially rental, would be much less volatile, and you will have the ~3x leverage in your favor. If the property is close to where you live, you can save on a property manager, else you'll need to find a good one and give him a cut. You might be able to get a rental property, renovate, and travel for half the year, doing more of your upkeep when back in town, and have it managed at other times.

It sounds like you're not sure of your abilities or how much time you want to spend. You need to decide if you want a fly-by-night hustle or a long term investment.

Post: #3

elsupremo,

Real estate investing is one of those things that often causes headaches even with all the worse case scenarios factored in. If you are living far away from the property, it may be hard to keep it rented. Rehab costs for when new tenants can be as low as just cleaning to new carpet, paint and other items.

Maybe you could build up your capital by doing a couple of flips. I am not sure where you are located in the US.

I would not get into an ARM. Rates are low now, but when they move up, I think just basic math tells you that everything moves against you including resale because people can afford less home with higher rates on the same income and down payment.

Also, it seems like a lot of stress trying to get your 50 bucks a day. You need to make 24k a year? On 30k capital? 50k capital?

Not trying to poo poo your idea, I would love to do the same. I just don't want to see anyone get hurt.

But I think you need to raise some more capital first to safely play the real estate game remotely.

Do you have skills that could translate locally or work that you could do remotely. Or services you could offer that would make you 50 a day? There are a bunch of hire consultant websites ( I hear) - maybe you could work on prepping those skills for remote income. Business plans, etc.

Not sure what your current skill set is.

I hope you post often about this journey and I'll help with input, however I can (if you consider it valuable).

Stories like these just remind me of what I want to do.

Thanks.

Post: #4

I want to do the same thing but have a little more capital. But I keep getting stuck on, "Well, you could whore yourself out to a thousand fat chicks for 50 bucks apiece. Or - or - or 50 *really* fat chicks for a thousand bucks."

Post: #5

I just want to follow up on my post and a great reply I got back. Mostly, I'm surprised it didn't get more traction in that I would've guessed that a lot of other guys are strategizing their long term overseas adventure/relo.

I will readily admit that 30k may not be enough to set up an income vehicle for living abroad for most but not all. I'll explain:
In a lot of the third world 30k has the purchasing parity of 3-4x what it does in North America (and N. Europe). That means you can get more - a lot more- for your money overseas. That means that you could open or buy a business that would satisfy your cash flow needs --- in fact many guys- specially retiring military- do just that. This extends to property as well.
The hangup is that in many cases you should be fluent in the local language, be very hip to the local laws and culture (or get a dependable partner), and be ready to be hyper-vigilant over your inventory, receipts, employees, etc.

The other thing is to work abroad: now know that I've done it - both high and low. As it happens,the most desirable places to live and bang are unfortunately the same places that are a bitch to earn a living in. There are many threads written - and to be written -about long term strategies to turn that truism upside down e.g. earn an oil/gas dependent tech degree and learn a foreign language.
But in the short term your options are really limited: work/sell/trade online, teach English, import/export. I can't discuss them all here but I'll tell you that they are all viable. The simplest - teaching English - is a short-term solution (we can discuss) and again, the truism holds: the most (bang lifestyle) desirable locations pay the worst.

My own ? about trading online was skewered - fairly and politely- by samsam: 50 bucks a day day or swing trading is NOT easy for a novice trader. I'll be lucky not to lose more than x% of my principal as I learn my way. The advice - which I am taking as I speak- is to learn, read, sandbox trade, start slow, etc etc until you can see you're making small profits then try to make them consistently.

But for me, I'd like to set up a cash cow up here - it's safer and more predictable. You can knock NAm society for all its many faults but as soon as you get a few dollars together --that you'd like to make into more dollars-- you can't help but love our systems of laws, property rights, and financial infrastructure that works. I don't mean necessarily in a macro, philosophical way --- I mean when it's YOUR own private little nest-egg your trying to grow and protect.

One of the best ways ,given a little capital and good credit is , as samsam suggests, to flip properties. As it happens, I have accidentally backed up into such a deal and hope to soon have close to double my $ in the kitty Flipping too has its challenges. In fact, there is no shortage of ambitious, smart, and often cutthroat guys all over competing with you. On the other hand, there's a lot of real-estate...

BTW, I disagree that ARM's are such a great threat. I foresee rates rising slowly - if at all- for at least the next 3-5yrs. Managing rentals from abroad is now, thanx to tech, much more feasible. Tenant selection is key as is having help - locally- to help. Many properties - speaking of FL- hereabouts can kick off 400-900/month depending.

Soooo, for me, the answers are still out there -- I'll keep an eye on the skyline; you never know what the winds will blow in: this is hurricane country.

Post: #6

30k can safely and sustainable kick off $1,200 per year

This is 4%. More than this either:

(1) you're putting in your own sweat to make it work
OR
(2) you are taking on more risk
OR
(3) you might not be sustainable. A key to sustainability is being able to keep up your cash flow with inflation

In short, I believe $30k is too little to generate a sustainable income stream to live off of without substantial effort or risk

Post: #7

calwinston mentioned on this thread that in certain countries you could buy a business for 10K USD.

/thread-30247-...#pid676319

Just something to think about. But would love to hear more people share their experiences and financial info (as much as they are willing of course.)

Post: #8

THere's a saying on Philippines forums

"How do you make a small fortune in business in the Philippines?"
"Start with a large one."

Consider you don't know the scams, the pitfalls, the resentment from locals too poor to open a business, and also that it may be illegal ( it is in the Phiippines) to simply open a business without a Filipino partner.

Opinion follows:
In tropical cultures, contracts and agreements and, indeed, reality are considered to be much more vague than in Western Europe and USA.

The needs of everyone involved may make the contract/agreement seem unfair after the contract is made, and the needs of the poor Filipinos of course are more pressing than that of the rich Kano. "Borrowed" money between family and or friends is often not repaid to a greater extent than more money centered cultures.

The climate truly affects how people perceive reality-- things grow fast, die fast and the important of "right now", whenever that is, is much higher relative to a future that is not considered very certain than some agreement made in a much different time-- like three weeks ago.

As far as day trading to make money, I think the stats are at least 80%, certainly 80% of beginners, lose money not make it.