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20K -> BUY FORCLOSED HOUSE? or INVEST INTO NEW WEBSITE IDEA?

Discussion in 'BlackHat Lounge' started by KHMNTCPR8, Jul 23, 2010.

  1. KHMNTCPR8

    KHMNTCPR8 Regular Member

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    Ok I'm teetering on the idea of selling my main site for as much as I can get. If I can get around 20k for it then I'll have to consider what to do with the money.

    Currently I still live at home but I'm still going to school and will graduate within a year. I really want to be a home owner and not just waste 1k a month on rent and never get to keep the place. I'd probably get a piece of crap house in some ghetto or I could get lucky with a 1-2 bed foreclosure property. Either way I'm gonna love the place because its mine and I'm going to have the peace of mind knowing that I own it and not just rent it.


    But if I spend the 20k on a home/condo I will not have my asset anymore which is currently generating my income. As with many niches in IM, mine is prone to ups and downs so its hard to give an average month's earnings. But its generally $500-5,000. I do however have a great idea for a new site thats COMPLETELY original.

    Its going to take some serious time, money and learning to complete. But if it is completed as I envision it to be, it will be like a mini Plentyoffi$h. Its not dating but it would be a community of sorts, and I have all kinds of ideas on what will make the site addicting AND beneficial to the users' lives.

    There are NO sites out there like it, but I'm not sure what the level of demand is for the site I wanna create. I know everyone could benefit from it but really its designed for more proactive people who want to take control of their life.

    Anyway... If you read this much, do you have any comments or advice? Should I use the 20k to get my own place then get a job while doing BH IM to make extra cash to save up? Or hunker down in the basement of my parents home until I've created a new site... damn over-analyzing plagues me again..
     
  2. SEO20

    SEO20 Elite Member

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    Why don't you use the money you get from your site to outsource the creation of your new project - then you could be done in no time and you don't have to sell your website?
     
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  3. Nookie Monster

    Nookie Monster Senior Member

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    ^^^
    Excellent idea.

    I don't know where you live, but in my city 2 sites making at least 500 a month would pay the mortgage payment. :)
     
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  4. noob411

    noob411 Junior Member

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    why don't u do both, you don't have to buy a house where you live. Buy one in like ohio or florida where foreclosed houses are super cheap.
     
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  5. chickenLittle

    chickenLittle BANNED BANNED

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    lol. you are a funny man, cock!!
     
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  6. Dayum

    Dayum BANNED BANNED

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    Never spend all your IM earnings when it's going to bring you back to square one. it's much easier to make money when you have money, I would keep your site, and use it to fund other projects to make you even more money. Sure you can buy a house, but then what? You lost your sites income, houses still cost money for power, water, etc, can you provide that? It might be tempting to have a nice chunk of change but I think you'd regret it.
     
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  7. noob411

    noob411 Junior Member

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    lol i don't think he was going to buy a foreclosed home to live in. Its a easy flip or rental where the renters pay for the electricity LOL :)
     
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  8. Ramsweb

    Ramsweb Senior Member

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    Just be in your mom's basement for another year and try to get that other website running by that time. When you have two good websites, sell one and get a place for yourself.

    I don't know how young you are but I think you are young enough to still live with your parents and not be embarrassed about it.
     
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  9. Dayum

    Dayum BANNED BANNED

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    "I really want to be a home owner and not just waste 1k a month on rent and never get to keep the place. I'd probably get a piece of crap house in some ghetto or I could get lucky with a 1-2 bed foreclosure property. Either way I'm gonna love the place because its mine and I'm going to have the peace of mind knowing that I own it and not just rent it."


    No, he's talking about living in it. Forclosed homes are cheap, that's why.
     
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  10. KHMNTCPR8

    KHMNTCPR8 Regular Member

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    Yeah, I would live in it until it became a good idea to flip it/ rent it out. I've seen some 2 bed places for under 100k (20% downpayment is 20k), which means I could rent the other room out to a friend! But reading Rich Dad Poor Dad again I remember that a house is a liability not an asset. Its only an asset when I've bought it at a great price, so it'd have to be a good deal.

    I guess my plan now, is just to take my current site and make it earn MORE per month, its already getting stronger in the SERPs and I can now rank page 1 for movie keywords with NO SEO involved, just pure authority. I figure if I wait a while and keep churning out pages and driving my traffic and profits up, I'll have a more valuable asset generating enough money it all.

    But damn this is a long term game.. I really need to step it up within the next 18 months... otherwise I'll be behind my peers.. Hmmm I think I'm gonna need to JV with someone on my next website..
     
  11. blackhataffiliate

    blackhataffiliate Senior Member

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    I have never read this, but keep hearing people quote things from his books and definitely plan on getting the book. I have always been told that owning a home is an asset. So what would justify a great price to make it an asset and why if your buying a home that is building equity does he say it is a liability?
     
  12. KHMNTCPR8

    KHMNTCPR8 Regular Member

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    your house is an asset ONLY when its BRINGING more money to your pockets than you are spending on it.

    you house is a liability when YOUR LOSING MONEY each month on it.

    so if you buy a house at a great price, are able to rent it out, or atleast 1 room you could have an asset. OR if the property value is increasing (but kiyosaki says you should never buy a house and hope the value goes up, you should always try and buy the house at a good deal)


    http://www.youtube.com/watch?v=P1KO_Sjsq2U
     
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