Post: #51

FYI guys bonus number for front office Wall Street at age 30 and below should be 100% of base salary or so. This year numbers were as follows:

100-150 entry level, 150-250 next level, $250-550, $250-$1M plus.

Sounds like this was more back office commentary which would be below tier 3.

http://wallstreetplayboys.com/?p=499

Otherwise, you're at UBS.

Post: #52

I just love this topic. In Europe it's the same. Everybody sits in their office, does not go out during break and have a married life. Filling their life's with useless meetings and useless tasks. I often try to imagine those guys having sex, dominate their woman. I can not !

But I often think about it the other way: they think the same about YOU. This guy doesn't have a life. He's not married, he doesn't have kids. He lives in the city, not somewhere in a house on the countryside, etc...

I do disagree about your real estate statement. I have my own place in center of city. In suburbs the prices are just too high. When I'm old I sell the whole thing and buy a cheap house somewhere in Spain. I'm thinking about buying a 2nd property and renting it out.

I also think a lot about a way of cheating the whole system. Jobs you can do remote are not plenty-full. I know a lot of people who tried entrepreneurship and they all failed miserably and live now in poverty. The system is made so people try to be an entrepreneur and when they fail they lose all their money. It's a fucking trap.

Post: #53

(01-28-2013 01:18 AM)WestCoast Wrote:  FYI guys bonus number for front office Wall Street at age 30 and below should be 100% of base salary or so. This year numbers were as follows:

100-150 entry level, 150-250 next level, $250-550, $250-$1M plus.

Sounds like this was more back office commentary which would be below tier 3.

http://wallstreetplayboys.com/?p=499

Otherwise, you're at UBS.

Or MS.

Also work in the office, came in today and couldn't confidently answer myself wtf I am even doing here. But the end is nigh!

Post: #54

I don't think it's quite as bad as this in the UK, there is an after work drinking culture so it's fairly common for people to head to the pub after work and people don't seem to let themselves go so much (at least in London) i.e don't become fat slobs. Also it's the norm for people in the UK who are making reasonable money to have travelled a lot, it's very easy to make short trips within Europe with all the cheap flights available.

Post: #55

(01-26-2013 11:09 AM)MattC Wrote:  I hear you mate. I work in Barclays in London doing graphic design so I have first hand experience with the banker cunts. Their diet is horrible, their lives are shitty and they are all betas. There's literally 3 out of about 150 bankers on my floor that I can bear talking to.

These guys think they're living the life but I've seen them working anywhere between 15-20 hours a day and they still come in on weekends for something similar. Cogs in a machine with no personalities, honest to God. There is no charisma to be found in these buildings because they all adhere to the cringey propaganda and "beliefs" the bank enforces onto them.

When I was working in the City (in a non-banking job) there'd be very rare occasions I'd go into the office extremely early. And every time I'd meet the same banker types there early as well. The thing, though, is that they were rarely working. Usually hanging out in the lobby and other public parts of the building. I came to the conclusion that although the hours are long, many of them don't actually work all the hours they are at the office. A lot of their time seemed to be spent goofing off. Which raises the question: Why are you at the office goofing off instead of living your life in the broader world. Maybe the office is the only place they feel at home, who knows.

Post: #56

(01-26-2013 08:25 PM)bacon Wrote:  several years ago i worked in an office. one night i left work to go to my car in the parking garage. as i was walking to my car i saw one of my bosses (mid 40s, married w/ 2 kids) just sitting in his car staring ahead. i stopped walking and watched him. it felt like an hour but for the next few minutes all he did was sit and stare while sitting in his car. i don't know what was going on in his life, as far as i could tell nothing serious as i would have heard, but just watching him do that was a wake up call for what office life does to a man. i wondered what was going through his head as he sat and stared while sitting in his car? thoughts of a shitty homelife? the futility of his existence? how miserable his life had become?

the funny thing was this boss didn´t give off a depressed vibe at work, it took me seeing him in a honest moment to get a glimpse into the sadness of his existence. yea, im glad i no longer work in an office..

Of course you also have to entertain the possibility that his secretary was, at that very time, crouching on the floor on the passenger side and giving him a blowjob.

Post: #57

(01-28-2013 12:35 PM)Jalouse Wrote:  I don't think it's quite as bad as this in the UK, there is an after work drinking culture so it's fairly common for people to head to the pub after work and people don't seem to let themselves go so much (at least in London) i.e don't become fat slobs. Also it's the norm for people in the UK who are making reasonable money to have travelled a lot, it's very easy to make short trips within Europe with all the cheap flights available.

Yeah Britain gets a bad rap but the part about easy travel to Europe is very true. I mean, I can hop on a plane tomorrow for a fairly low price and by in Milan in two hours. Completely different climate and culture. That's what I love about Europe. All the countries have very distinct identities yet are literally next to one another. A lot of American's lump all the Southern Euro, 'Latin', countries together. However, Italy and Spain for example are very different.

Post: #58

(01-27-2013 12:29 AM)StarcraftGG Wrote:  All throughout NJ and PA, there properties that you can purchase for cash flow which give you a cap rate (cash on cash), of 12% or more. For example, if I pay cash for a home at $100K (no mortgage at all), with a 12% cap rate, that means the property has a NOI (Net Operating Income) of $12,000 per year, which is money in your pocket after all expenses including taxes, insurance, utilities, vacancy factors, maintenance reserves, property management fees, etc are considered. 12% is good. Now it gets even better. I'm pretty sure TheCaptainPower has great credit. If he gets a mortgage at 75% of the purchase price (borrowing $75,000) from the bank at a fixed 4% over 30 years, his monthly payment (including both interest and principal) comes out to about $450 a month. This works out to $5,400 of payments a year. This $5,400 has to be deducted from your $12,000 NOI, leaving him with $6,600 net. But, since you only have $25,000 still in the property, this results in a return on investment of 26% per year! Each month that goes by, you get rent money, and your renter pays down some of the principal. If the property goes down in value, it doesn't matter - it's a cash flow property. If it goes up, you can the benefit from the upswing when and if you decide to sell. Plus, the property is insured.

So if he fully deploys his $200,000 cash (into $800K worth of properties) in the manner above getting 26% ROI, that's $52,000 a year. In this situation, I would book a one way ticket to my beloved Cali, Colombia where the weather and women are better, and cost of living is far lower. With the excess cash, I would start building up another pool of rainy day savings, and would plow the rest back into paying down the principal. So, let's say the properties are fully paid off in 25 years. TheCaptainPower is now 58 years old. Now, he has $800,000 worth of paid off properties (assuming 0 appreciation and 0 rent increase) with no more mortgage payments, which suddenly result in his yearly income leaping to $96,000 a year (12% of $800,000) since he no longer has mortgage payments.

So, above scenario, TheCaptainPower invested $200,000 of his own money. It earned him $52,000 a year for 25 years, and then he decides to sell all of it for $800K after that time. That's $2.1 million total (assuming 0 appreciation).

If you purchased $200K worth of stocks, it would need to go up approximately 10% per year every year for 25 years straight without you touching any of it before it reaches $2.1 million in value. I bet stocks suddenly don't look as attractive anymore.

Welcome to the fast lane.

GLHF everyone (Good Luck, Have Fun in Starcraft speak)

Great Post Starcraft GG. I think we have started off in another tangent, Do help me understand what you mean by Cap rate (Cash on Cash) of 12 %. From what I can understand is if a House is bought by casj of $ 100,000. and it brings in rent of $1,000/month that is 12,000/yr or 12 % per year.

On another Note all the sentiments mentioned for Fianancial Sector do apply for Healthcare Industry as well and I have found Physicians to have very Unhealthy Lifestyles, working their assess off to pay off loans and possessions.

Post: #59

(01-26-2013 08:25 PM)bacon Wrote:  several years ago i worked in an office. one night i left work to go to my car in the parking garage. as i was walking to my car i saw one of my bosses (mid 40s, married w/ 2 kids) just sitting in his car staring ahead. i stopped walking and watched him. it felt like an hour but for the next few minutes all he did was sit and stare while sitting in his car. i don't know what was going on in his life, as far as i could tell nothing serious as i would have heard, but just watching him do that was a wake up call for what office life does to a man. i wondered what was going through his head as he sat and stared while sitting in his car? thoughts of a shitty homelife? the futility of his existence? how miserable his life had become?

the funny thing was this boss didn´t give off a depressed vibe at work, it took me seeing him in a honest moment to get a glimpse into the sadness of his existence. yea, im glad i no longer work in an office..

Similar thing happened to me the other day at work. Very early before anyone else was in a director bigwig pulled up outside my window in a brand new aston martin. He then spent the next half an hour sat in his motor sobbing uncontrollably, part of it whilst on the phone. I saw the same bloke an hour later in a breakfast meeting holding court with some other corporate schlongs like he didn't have a care in the world.

Post: #60

(01-28-2013 06:10 PM)lush1 Wrote:  

(01-26-2013 08:25 PM)bacon Wrote:  several years ago i worked in an office. one night i left work to go to my car in the parking garage. as i was walking to my car i saw one of my bosses (mid 40s, married w/ 2 kids) just sitting in his car staring ahead. i stopped walking and watched him. it felt like an hour but for the next few minutes all he did was sit and stare while sitting in his car. i don't know what was going on in his life, as far as i could tell nothing serious as i would have heard, but just watching him do that was a wake up call for what office life does to a man. i wondered what was going through his head as he sat and stared while sitting in his car? thoughts of a shitty homelife? the futility of his existence? how miserable his life had become?

the funny thing was this boss didn´t give off a depressed vibe at work, it took me seeing him in a honest moment to get a glimpse into the sadness of his existence. yea, im glad i no longer work in an office..

Similar thing happened to me the other day at work. Very early before anyone else was in a director bigwig pulled up outside my window in a brand new aston martin. He then spent the next half an hour sat in his motor sobbing uncontrollably, part of it whilst on the phone. I saw the same bloke an hour later in a breakfast meeting holding court with some other corporate schlongs like he didn't have a care in the world.

In his defense, we all have our moments when we are down. You have no idea what is going on in his world. Mom died, kid has cancer, all kinds of shit. At least he left his shit in the car and did not bring it to work with him like a lot of women do.

Post: #61

(01-28-2013 03:43 PM)Lothario Wrote:  Great Post Starcraft GG. I think we have started off in another tangent, Do help me understand what you mean by Cap rate (Cash on Cash) of 12 %. From what I can understand is if a House is bought by casj of $ 100,000. and it brings in rent of $1,000/month that is 12,000/yr or 12 % per year.

When I read what you wrote about it bringing in rent of $1,000/month, I immediately think that is a "gross" number. The tenant actually writes you a check for that much, but it's not a "net" number where all the expenses have been deducted. Cap rate is the net amount (money left over after expenses) divided by your cash in the property.

So in your example, I see $1,000/month gross rent. Then I would deduct insurance, property tax, vacancy factor, maintenance factor, property management, utilities, etc., to arrive at a NET of... $500/month for example. Multiply this by 12 and you get your yearly NET of $6,000. NET divided by Cash in the property is $6,000 / $100,000 = .06 = 6% cap rate.

Post: #62

(01-28-2013 10:39 PM)StarcraftGG Wrote:  

(01-28-2013 03:43 PM)Lothario Wrote:  Great Post Starcraft GG. I think we have started off in another tangent, Do help me understand what you mean by Cap rate (Cash on Cash) of 12 %. From what I can understand is if a House is bought by casj of $ 100,000. and it brings in rent of $1,000/month that is 12,000/yr or 12 % per year.

When I read what you wrote about it bringing in rent of $1,000/month, I immediately think that is a "gross" number. The tenant actually writes you a check for that much, but it's not a "net" number where all the expenses have been deducted. Cap rate is the net amount (money left over after expenses) divided by your cash in the property.

So in your example, I see $1,000/month gross rent. Then I would deduct insurance, property tax, vacancy factor, maintenance factor, property management, utilities, etc., to arrive at a NET of... $500/month for example. Multiply this by 12 and you get your yearly NET of $6,000. NET divided by Cash in the property is $6,000 / $100,000 = .06 = 6% cap rate.

Thanks for replying Starcraft, Your explanation makes more sense now as I think rental properties don't get you more then 5-6 % net profit which would make this unwise to use your cash to buy property, I would much prefer to buy 4 properties using $100,00 and get the renters to pay for it and wait till it's paid off, That would be the sweet end for me. easier said then done, lots of headaches of renters , maintenanace along the way but he who takes the headache makes the money.

Post: #63

(01-29-2013 03:07 AM)Lothario Wrote:  Thanks for replying Starcraft, Your explanation makes more sense now as I think rental properties don't get you more then 5-6 % net profit which would make this unwise to use your cash to buy property, I would much prefer to buy 4 properties using $100,00 and get the renters to pay for it and wait till it's paid off, That would be the sweet end for me. easier said then done, lots of headaches of renters , maintenanace along the way but he who takes the headache makes the money.

I would recommend not relying on what you said about "I think rental properties don't get you more than 5-6% net profit." Investing, like red pill knowledge, is something that people need to get educated about. It's not something that you want to rely on common sense for. With bank financing at 4%, 25% return on your cash is readily achievable using rental properties. It happens all day long every day. I know you might be skeptical, but think of it like you telling a beta AFC that it's possible to meet a woman and be having sex with her within 2 hours. The beta's response would be "I think it's not possible to do that." Meanwhile, we know that 2 hours is not fast... and that something even faster like 30 minutes is doable. You just need to know what you're doing. Does it happen with every girl, no. You won't get high returns like that on most real estate. With the girls you need to screen, with the real estate you need to know what to look for.

I recommend joining a real estate club - not some crazy multi level marketing trap where they sucker you in for thousands to take classes and up-sell you. Something for real investors - talk to them and see what you come up with for your area.

Post: #64

I see both perspectives. But what happens if you lose a tenat or get a housing collapse crisis like now. Doesn't that mean people are not inclined to rent? I'd imagine the ideal place to do this would be in a college area where you are guaranteed a steady stream of renters who can pay. What happens if the renters drag out the eviction process and you aren't getting paid but still having to pay multiple mortgages? Wouldn't one be better off just building the houses and selling them if they could obtain 600k loan + 200k base?

Post: #65

Rental properties can also sink you if you buy before a bubble collapses and rents adjust to below your mortgage costs. I've seen that happen to a guy.

Post: #66

(01-28-2013 06:14 PM)kenny_powers Wrote:  

(01-28-2013 06:10 PM)lush1 Wrote:  

(01-26-2013 08:25 PM)bacon Wrote:  several years ago i worked in an office. one night i left work to go to my car in the parking garage. as i was walking to my car i saw one of my bosses (mid 40s, married w/ 2 kids) just sitting in his car staring ahead. i stopped walking and watched him. it felt like an hour but for the next few minutes all he did was sit and stare while sitting in his car. i don't know what was going on in his life, as far as i could tell nothing serious as i would have heard, but just watching him do that was a wake up call for what office life does to a man. i wondered what was going through his head as he sat and stared while sitting in his car? thoughts of a shitty homelife? the futility of his existence? how miserable his life had become?

the funny thing was this boss didn´t give off a depressed vibe at work, it took me seeing him in a honest moment to get a glimpse into the sadness of his existence. yea, im glad i no longer work in an office..

Similar thing happened to me the other day at work. Very early before anyone else was in a director bigwig pulled up outside my window in a brand new aston martin. He then spent the next half an hour sat in his motor sobbing uncontrollably, part of it whilst on the phone. I saw the same bloke an hour later in a breakfast meeting holding court with some other corporate schlongs like he didn't have a care in the world.

In his defense, we all have our moments when we are down. You have no idea what is going on in his world. Mom died, kid has cancer, all kinds of shit. At least he left his shit in the car and did not bring it to work with him like a lot of women do.

Yea not knocking the bloke, just an observation. You never know whats happening in peoples lives.