[quote=AN]If I was old enough and had $50k in 1998, I could have made a few millions by 2000. There are opportunities everywhere, not just in RE. The kind of opportunity you had in 1994 is not available to everyone. You just happened to be in the right place at the right time. But you failed to jump on that opportunity. BTW, you compared near bottom of the last cycle to the near top of this cycle. There’s nothing interesting about that. You don’t even need to have a very special property in a special area either.[/quote] (emphasis added)
Having 50K in 1994 would not have been enough to take advantage of this opportunity.
AN, you seem a little defensive. FWIW, you can consult other Piggs on this, but the “bottom of the last cycle” was Fall 1997. The “top of the current bubble” was Fall 2005. I wasn’t even thinking about “cycles” at the time when this thing fell in my lap in May 1994. I was thinking that this property was exactly what “I” wanted. Unfortunately, I did not have full say at the time. My spouse needed a hunk of flat land outside the back door so he could keep close tabs of all his vehicles and we couldn’t carry two properties.
[quote=AN]What do you mean active income is fleeting? You need to have/had active income to build enough asset to grow your passive income.[/quote]
Again, we seem to be going around and around on this but income is also inherited (or the principal by which income is derived from) or left in trust for a future heir to use while one is still alive.
The continuation of “active” income is completely out of one’s control unless they have seniority in a union, their position is protected by public law or are under an iron-clad contract with a buyout provision. The rest of the “worker-bees” can be put out on the street with their COBRA papers in their armpit with little to no warning.
[quote=AN]How did that house got bought in the first place? Be it by their parents or grand parents? Don’t they need income to buy that?[/quote]
Yes, they probably did. They needed $4,000 to $30,000 cash or the ability to make payments of $64 to $190 mo. (+ taxes & ins.) for 20 yrs. (on a new loan) depending on the location. In most cases when they took out loans, down-payments were not required. Many loans were assumed from the prev. owner with no money down.
[quote=AN]I bought a fixer myself and did a lot of DIY projects on it.[/quote]
Do tell us. Did you make a profit when you sold this property?
