Hey , Im a Teenager and I want to be a Entreprenuer . I have some buisness ideas, I would like to have my own REALTY, by buying houses for 40,000 and fixing it up with 20,000 and selling it for 120,000 . I know I can do this , because alot of people turned ot wealthy doing this . I would also like too Sell Clothes , so I would like to have a CLOTHING STORE at a mall , and sell many clothes and I know kids like to buy alot of clothes . I could also Have a RESTAURENT , because i always dreamed of having a McDonalds or a Burger King . Which should I havee ?
for real estate – you have to have enough income and good credit to be able to get a mortgage and investment property requires at least a 20-25% down payment, plus another 3-6% for closing costs, so even on a $40,000 house (do they even exist where you live?), you will need at least 10,000 cash up front, then you will need another 20,000 for repairs and you will have to make mortgage payments while you fix it up and a house like that is probably NOT going to sell for anywhere near 120,000 – houses just don’t sell for $60,000 under their true value in the real world – and NO ONE is getting rich flipping houses in the current real estate marketplace – that only works when demand is high and prices and quickly rising – that environment collapsed 2-3 yrs ago. there is way too much housing supply on the market right now and prices are still going down, or may soon head down again with the new wave of foreclosures coming – houses may never see 20+% annual price increases that are almost required to make house flipping profitable – 4% increases per year are normal – not 10-30% like we had before the housing crash – and the avg house is taking 7-10 months to sell, so you might have to be making payments for that long, which will quickly eat away your profits if you don;t have someone renting the house
you pretty much have to already be very rich to be able to buy a McDonald’s or BKing franchise – like having at least $250,000 in cash and having good enough credit to be able to get a mortgage to build a new restaurant from the ground up
a clothing store would probably NOT make you rich – lots of clothing stores have been doing pretty bad during this recession – you need to know a lot about marketing AND fashion and business – it costs a lot of money to rent a store in a mall and there is no guarantee you will even make enough to pay rent, never mind labor, taxes, utilities, advertising, yourself, profit, etc
if you want to have any chance of doing any of these things by the time you are 40 yrs old (or ever), you need a college degree – probably in something business related, get a good job first – work for 20 yrs and save lots of money and THEN maybe you can pursue your dream
March 1st, 2011 at 4:56 am
definitely something that involves insurance. its where the money is at. everyone ive ever met whos involved in insurance makes a lot of money and live very comfortably.
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March 1st, 2011 at 5:08 am
first of all you have to have some money to begin with to buy a house for 40g.. the bank wont just loan you that money.. second of all you basically have to have over one million dollars in assets to open your own mcdonalds and burger king.. so before you decide to do all these nice money making things, you need a REAL job. and REAL education.
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March 1st, 2011 at 5:33 am
maccas & burger king are both franchises so unless you owned the whole lot you would have to run it just like the rest of them not your own way & heres another tip finish school then worry about it
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rich = smart = educated
March 1st, 2011 at 5:52 am
First and foremost you can do all of these things and be successful. But to narrow it down you should (if you are of age (16) start by working at a business that is doing what you would like to do one day. It is summer and if you can work, get a job at McD’s or BK. Because as an owner(one day) you always want to know how to do every job. That way if someone doesn’t come to work you can jump in. Same goes for clothing store or interning with a Realtor. Ask family or friends if they know anyone that may hire you or just let you come and watch what they do at work. Hopefully that will help narrow down what you want to do then go from there. Then go to school, study, succeed.
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March 1st, 2011 at 6:30 am
for real estate – you have to have enough income and good credit to be able to get a mortgage and investment property requires at least a 20-25% down payment, plus another 3-6% for closing costs, so even on a $40,000 house (do they even exist where you live?), you will need at least 10,000 cash up front, then you will need another 20,000 for repairs and you will have to make mortgage payments while you fix it up and a house like that is probably NOT going to sell for anywhere near 120,000 – houses just don’t sell for $60,000 under their true value in the real world – and NO ONE is getting rich flipping houses in the current real estate marketplace – that only works when demand is high and prices and quickly rising – that environment collapsed 2-3 yrs ago. there is way too much housing supply on the market right now and prices are still going down, or may soon head down again with the new wave of foreclosures coming – houses may never see 20+% annual price increases that are almost required to make house flipping profitable – 4% increases per year are normal – not 10-30% like we had before the housing crash – and the avg house is taking 7-10 months to sell, so you might have to be making payments for that long, which will quickly eat away your profits if you don;t have someone renting the house
you pretty much have to already be very rich to be able to buy a McDonald’s or BKing franchise – like having at least $250,000 in cash and having good enough credit to be able to get a mortgage to build a new restaurant from the ground up
a clothing store would probably NOT make you rich – lots of clothing stores have been doing pretty bad during this recession – you need to know a lot about marketing AND fashion and business – it costs a lot of money to rent a store in a mall and there is no guarantee you will even make enough to pay rent, never mind labor, taxes, utilities, advertising, yourself, profit, etc
if you want to have any chance of doing any of these things by the time you are 40 yrs old (or ever), you need a college degree – probably in something business related, get a good job first – work for 20 yrs and save lots of money and THEN maybe you can pursue your dream
References :