Brought to you by the Every Dollar App. Start budgeting for free today. I'm 22 years old. I'm currently making about $30,000 to $90,000 a month.
I'm trying to figure out when to make a jump into real estate because that's where I want to take my end goal. Wow. Wow, Zach, we just talked to a caller who makes $850 a month. Yeah, can you spare some change for our friends?
Yeah, I did. What are you doing to make $30,000 to $90,000 a month? What? Primarily day trading, specifically the futures market.
Okay. How did you learn about this and are you using a platform? How does this all work? Yes.
I've been practicing for about three or four years now and then I decided to, my next one, that's $3,000 into an evaluation for a few proffirms. Yep. And essentially you use their capital and then you normally get to keep anywhere from 70 to 90% of the profits that you make. And so I did that back in October and I was able to pay my student loans off by doing it.
And I got a major in finance from Lipscomb. I graduated in December and so I kind of decided that if I'm going to go on on this, I might as well do it now and see where it took me. And how long have you been doing this? So with the live funded accounts since February or March.
Okay. Which is using your own money? No. So it's just the firms primarily at this point in time.
So here's the question. If you're so good at this, why not use your own money? Yes. So a lot of the times right now, I don't have $150,000 that I want to invest in it.
And I'm well aware of the risks. And if someone else is going to take on the risk for me, I was raised the rampy kid. So, you know, the less risk and the more success and that's kind of where I was going with it. Okay.
So what happens if you make a bad trade, you get kicked out of these proffirms, right? Yes. So there are systems in place to where essentially I have certain like drawdowns that I can hit and a lot of times with every single trade I take, I normally try and move the soft loss, which automatically sells me out of the market to break even. And so at that point, it's, I don't want to say it's impossible to lose money by any means whatsoever.
But like a bad day would be me breaking even or only losing about a thousand or two. Okay. How much money do you have now that is liquid? About $50,000.
What are you doing with the rest of this money? So I had to pay off my suit loans because I paid for my own college. Okay. And then I've been in the process of trying to move just somewhere else in Nashville.
So that's taken up a little bit, a little portion of it. So there's like the first month, last month's a metal thing. And then I tried to put away some for taxes because I have to do it. Obviously I get taxed after.
You're going to get hammered in the taxes. You're making 30 to 90,000 a month. Yes. That's 40%.
I have been my guy, Paul is a CPA. He's been trying to inspire me with some words of wisdom and he was, he's been big on like the 40 or 42%. Yeah. So do you have any debt left?
I do not know. Good. And that 50 K let's call that your emergency fund plus some. Yeah.
So that'll be like my emergency fund. And then you know, like something else happens like the family or you know, I like to take care of the people around me. Okay. And what's your question today?
I am trying to figure out, so I've always wanted to get in a real estate. And so I'm trying to figure out when the best time would be to make that move into starting to be real estate as well. Because the trading only takes me about maybe three or four hours a day. And so that's kind of where I'm missing out, I think.
And by real estate for you to own properties, for investment, for you to flip and make fake a spread for you. And then I would try to fix and flip when I could, when I have the time. Okay. So you're wanting to buy and hold and put renters in is what you're thinking.
Oh, absolutely. Yes. Okay. And that's the best way to go with that.
Yeah, for sure. Yeah. Well, with real estate, we always say if you're going to go beyond your primary residence, you want to do it with cash. And so being able to buy.
Own the home first. Well, ideally, yes, to have a primary residence before you go and start doing investment real estate. Yes. So that would be, that would probably be my goal for you, Zach, honestly, would to move out of your parents and get a place of your own and start renting.
You're not living with parents. Okay. Yeah. No.
So I moved down here from college. My family is in another state. I've been renting and I just I know the year long lease by myself. Okay.
I got you. What are your monthly expenses right now? All in? Probably only about three or four at most, that's probably expensive months.
Okay. So let's call it four grants. You're telling me if you make 30 grand, you set aside, let's say 40% of that. Right.
So you'd still have about 15 grand left to you just throw into savings accounts every single year. I mean, every single month. Yes, sir. So then you could save up a whole lot of money in a year.
I mean, you could have a down payment ready in six months. Ideally, yes. Yeah. So the real estate side of the investment portion is great, but it's not for income producing, right?
It's more to hold. So you're holding up money on that at the buy and then when you end up selling with all the equity, because you're holding it for so long, right? Yeah. I mean, decades.
You can't. Yeah. For a long term, it's sort of... That's right.
Yes. That's right. That's right. So, yeah.
I mean, I think it's a great goal, but I think the first step for usac would be to get your own property yourself, right? You know, for your primary residence before going and investing and getting a rental home and all of that, because a lot of people do it the opposite way, but what you'll end up finding is you're not really going to make a... I mean, depending on the home, obviously in the situation, when you do that kind of investing, you're not making a ton of money. I think a lot of people have their mind.
I'm sure you've earned the numbers or smart guy, but I think a lot of people in their minds have this like, oh my gosh, only making so much passive income. But by the time, especially if you go take a loan out, which a lot of people do for investment real estate, you're having to pay the mortgage, you're having to pay fees on top of that, you're having to pay everything it is to be a landlord for upkeep, all of it. And you end up from a net to gross standpoint with not a ton of cash. It's not like a big cash cow to have all of this in a residential market having one or two of these.
So I just want you going in, eyes wide open, just knowing what you're getting yourself into, and I just see stuff like this all the time on social media. And why has we done this? And I'm like, and it's not a bad thing. I like diversification.
I like having money in the market. I like having some real estate. I think all of that's really good. But it's not this thing that's like, oh my gosh, it's going to be making me a ton of money.
If anything flips, well, that's where we've actually seen, from a short-term perspective, actually see some pretty great returns. Because you're not even to wait on the market to appreciate because it's been a little stagnant last few years. And you can get some really crappy houses in Nashville and gut them if you know what you're doing. I mean, that's a whole other business that you actually want to help.
It's one that helped me out to a certain extent. And so, but then I would, as of right now, depending on even in like Antioch, I might have to take out a loan for the initial part, but then I could pay it off by the time I flipped it. So that was the other one. Right.
So that's the, that's the, that would be the wrong way to do it from Ramsey's standpoint because that's what, that's how Dave actually got going broke as he borrowed on all these homes. And then you get stuck and you're having to sell it quickly because you're like, oh my gosh, you know, we have to, it's a flip. And so we're going to make a profit and end up selling it for not as much as you want. And then you end up not making the spread that you want and then it ends up going backwards.
And it's not good. So cash is everything. If you could not count on this gravy train of day trading for too long, I would get out while you can when the getting's good, but just know this may not be a five year career. So I'd find something you can sink your teeth into with how smart you are, my man.
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