Post: #1

How many of you are on your way to becoming rich or are already there?
When I say rich I mean 100m+ in liquid assets. ie; never thinking about what something costs ever again.

Any aspiring oligarchs lurking in the shadows here?

Post: #2

Very few I would imagine.

I am doing ok for myself but I have periods of extended game that really eats into my time and energy.

Most of the very, very rich people I know have had the same wife since they were at school and are 100% focussed on money.

It is impossible to reach those heights without that level of focus imho.

Post: #3

The only legit reason IMO, for having so much money is so you don't have to worry about it. Focusing your whole life around money seems pointless and incredibly stupid

Post: #4

(05-20-2014 05:43 AM)Architekt Wrote:  How many of you are on your way to becoming rich or are already there?
When I say rich I mean 100m+ in liquid assets. ie; never thinking about what something costs ever again.

Any aspiring oligarchs lurking in the shadows here?

Yes, I'm there. I've posted some of my experiences here to help out aspiring entrepreneurs. BTW, you still think about how much things cost. It depends on how you were raised and what people you surround yourself with.

Post: #5

(05-20-2014 07:11 AM)CrashBangWallop Wrote:  Very few I would imagine.

I am doing ok for myself but I have periods of extended game that really eats into my time and energy.

Most of the very, very rich people I know have had the same wife since they were at school and are 100% focussed on money.

It is impossible to reach those heights without that level of focus imho.

This is accurate. It tends to consume your life. The trick is being able to slow down at one point. Still staying in the business game but having more free time. Not many people can do that.

Post: #6

(05-20-2014 07:58 AM)Gringuito Wrote:  

(05-20-2014 07:11 AM)CrashBangWallop Wrote:  Very few I would imagine.

I am doing ok for myself but I have periods of extended game that really eats into my time and energy.

Most of the very, very rich people I know have had the same wife since they were at school and are 100% focussed on money.

It is impossible to reach those heights without that level of focus imho.

This is accurate. It tends to consume your life. The trick is being able to slow down at one point. Still staying in the business game but having more free time. Not many people can do that.

Just wondering...are you just rich or you also look rich? Do you feel a big difference in terms of pulling females? Do you drive expensive cars? Is it way easier for you to get the lay now that you drive an expensive car comparing to when you didn't?

i would be glad if you could offer some insight on what's like for the rich man when gaming.

Post: #7

(05-20-2014 08:17 AM)pitt Wrote:  Just wondering...are you just rich or you also look rich?

I'm not sure what looking rich would be. Someone I know who works with the 1% said most wealthy guys dress down but wear a $30k watch. That's more my style.

Quote:Do you feel a big difference in terms of pulling females?

Yes, it makes a very big difference in how women treat you. When they find out you are put in the beta-bux box immediately and strongly. It's funny how you could hookup with a girl before she knows. When she finds out suddenly she's a new virgin that never did that before and she shit tests like crazy to put you into her beta-provider model.

Quote:Do you drive expensive cars? Is it way easier for you to get the lay now that you drive an expensive car comparing to when you didn't?

I have quite a few cars spread around. Some are very nice and some are lower key but none are inexpensive. Rolling to a club in a fancy car gets you noticed by the wrong type of girls. I'm done with my Ferrari/Lamborghini phase for now. I prefer something more like a Bentley.

Quote:i would be glad if you could offer some insight on what's like for the rich man when gaming.

Pros:
- You hook up with some extremely beautiful women
- You're treated very well by most people (social proof)
- You don't worry about getting laid and you don't put women on a pedestal

Cons:
- You're put into beta-provider roll unless you game very heavily. Then you're put into the rich playboy roll that many women don't like
- Tons of gold-diggers and bottle whores to deal with
- Many girls try to get you to bang them without condom. They're looking for the 18-21 year free ride
- You have to be worried about false rape accusations because they could extort tons of money from you
- Your public image has to be protected

Post: #8

This thread just might be the next "digital project management"

Post: #9

(05-20-2014 05:43 AM)Architekt Wrote:  How many of you are on your way to becoming rich or are already there?
When I say rich I mean 100m+ in liquid assets. ie; never thinking about what something costs ever again.

Any aspiring oligarchs lurking in the shadows here?

The question should be, where have you been?

Post: #10

(05-20-2014 08:59 AM)Gringuito Wrote:  Yes, it makes a very big difference in how women treat you. When they find out you are put in the beta-bux box immediately and strongly. It's funny how you could hookup with a girl before she knows. When she finds out suddenly she's a new virgin that never did that before and she shit tests like crazy to put you into her beta-provider model.


Cons:
- You're put into beta-provider roll unless you game very heavily. Then you're put into the rich playboy roll that many women don't like
- Tons of gold-diggers and bottle whores to deal with
- Many girls try to get you to bang them without condom. They're looking for the 18-21 year free ride
- You have to be worried about false rape accusations because they could extort tons of money from you
- Your public image has to be protected

I am nowhere near 100M+, but I am in my mid 20s making low-mid 6 figures in LA. I never tell ppl what I do, play it really mellow, because god-forbid I drop my job title and boom, girl acts prude or super slutty (both variant suck tbh).

I've pulled a decent amount of girls straight from the club (before they knew what I do) and the minute they get into my lexus LS460 the questions start coming. Do you have a GF? Are you a playboy? Do you do this every weekend? Where do you live? Blah blah blah.

@ 30k watch and the casual dress- Hahaha. Thats how my main Partner-in-Crime rolls, except w/650+ dollar sneakers. V-neck, jeans, balenciaga sneakers+ 15-30k watch. <---- odd mix but he rocks it well. Total contrast to me suited up, shirt blown up, with a contrasting pocket square.

On the flip-side because he is so casual, its hysterical when he compliments girls on their brand clothing that has no tags- "Nice rolex, nice "xxxx" brand. Fly Rich Girls get mindblown that a dude can see their "undercover brand".

Post: #11

@rustler working on some exciting prospects. Asking because I'm aiming at 50-100m liquid by the time I'm 30. Gonna be a fun ride

Post: #12

(05-20-2014 07:11 AM)CrashBangWallop Wrote:  Very few I would imagine.

I am doing ok for myself but I have periods of extended game that really eats into my time and energy.

Most of the very, very rich people I know have had the same wife since they were at school and are 100% focussed on money.

It is impossible to reach those heights without that level of focus imho.

also not rich here, but doing well for my age.

i agree with everything CBW said. You can't focus 100% of your efforts on both money AND women. if you want to be exceptional in any particular category, you need to concentrate on just one or you'll end up half-assing both.

Post: #13

I definitely think this thread could potentially become the new digital project management sort.
Gringuito, can you share with the rest of us what do you do? Do you invest in start ups or real estate?
I am no where rich but have the potential to have a nice fat income as I progress in my career and with my connections but I d like to hear whatever is the rich guys over here or the ones making some solid figures have to share with the rest of us.

thanks gringuito and to the OP

Post: #14

(05-20-2014 10:50 AM)GyopoPlayboy Wrote:  

(05-20-2014 07:11 AM)CrashBangWallop Wrote:  Very few I would imagine.

I am doing ok for myself but I have periods of extended game that really eats into my time and energy.

Most of the very, very rich people I know have had the same wife since they were at school and are 100% focussed on money.

It is impossible to reach those heights without that level of focus imho.

also not rich here, but doing well for my age.

i agree with everything CBW said. You can't focus 100% of your efforts on both money AND women. if you want to be exceptional in any particular category, you need to concentrate on just one or you'll end up half-assing both.

Being rich means you don't act like average people money-wise, it doesn't mean you're different in other life areas. Most men get a wife and try to keep her, so do most rich men, they just keep them longer because they don't get divorced as much.

When you're rich, I'm not sure casual sex requires more effort and focus than a wife.

Post: #15

I would say the goal is 10m and earn 5% on that money for life. That gives you 500k a year to do whatever you want, and for me personally, that'd be far more than enough.

Post: #16

Thanks for sharing Gringuito it is impressive to see such successful guys sharing on the forum.

Post: #17

I like the thread topic. With such a small sample size, if you set the bar really high (at $100mm+) you are looking at a very small number of people. We are lucky to have one among us, but I assure you that your subset is now n=1. I think people often underestimate just how much money you need to make in order to get some serious liquidity. When people hear about someone pulling off a $100mm deal, they instantly think that the guy is worth $100mm or something close to it (or even half of that).

Let's break down a more realistic example:
- You pull off an "event" that results in $20mm in proceeds
- Next there are for sure going to be some closing costs (lawyers, bankers, accountants, etc.). Let's peg this at 10% costing $2mm. There is $18mm left.
- Next, the IRS bangs you for 40% costing $7.2mm.
- Depending on where you live, there is likely additional state/local/other taxes. Let's call this ~6% for now, costing $1mm. (yeah, not exact...but there are other costs that will get you here).
- There is now $9.8mm leftover.
- To get to a $20mm event, most people will have diluted their ownership. They either have a partner(s), they have raised capital, promised profits interests to employees, they have taken on some type of debt that is basically equity, you get the point. You have probably done a great job if you still have a full 50%. (and yes, props to those that keep 100% but this is difficult at this level). Let's set the retention at 50%.

Your final check that is wired into your account is now $4.9mm. But, we have to add the "jack ass tax" of, say, 25%. This costs you another $1.225mm before you stop being a jackass.

You now have $3.675mm in your account. You can now dust yourself off and go on to the next big thing. (I think the "hickies" I've put on the above transaction is actually pretty kind, this guy ends up stashing about 20 cents on the dollar)


Key take-away:
- If you are someone that has a goal liquidity number, you should plan on your "event" needing to be a good 5 or 6 times that number. I think this is fairly linear, so, if you are truly "planning" to have $100mm...you need to aim for something like a $600mm+ event. (kind of hard/rare)

I personally don't have "a number". Someone asked me what I'd do if all of a sudden I won the lottery and was worth $3BN. My response: First, I wouldn't want to make my money that way, but if I did...then I'd take a few months off and then go sit in a café in Buenos Aires, pull out a yellow pad, and scratch away until I had my next big adventure planned (armed with a HUGE war chest on this go round...which would make things really fun!)

Post: #18

(05-20-2014 07:29 AM)Architekt Wrote:  The only legit reason IMO, for having so much money is so you don't have to worry about it.

Agreed. The point of getting to that level of wealth is to do be able to live life on your terms without the constant possibility of money running out nipping at your heels.

Post: #19

Gringuito's dropping some great knowledge here
Thanks

Post: #20

(05-20-2014 01:10 PM)TravellerJay Wrote:  Gringuito, can you share with the rest of us what do you do? Do you invest in start ups or real estate?

Yes, I invest (though mostly it's just buying) small companies in the space I'm experienced in. I don't invest in real estate, I stick to what I know. I own houses of course but they are just to live in. There's another thread here about starting a business where I touch more on this.

On the non-business side I run a private charity and do mentoring of entrepreneurs. Before I get asked, this is done through a program of a large accounting firm.

Post: #21

(05-20-2014 04:03 PM)anonymous123 Wrote:  I like the thread topic. With such a small sample size, if you set the bar really high (at $100mm+) you are looking at a very small number of people. We are lucky to have one among us, but I assure you that your subset is now n=1. I think people often underestimate just how much money you need to make in order to get some serious liquidity. When people hear about someone pulling off a $100mm deal, they instantly think that the guy is worth $100mm or something close to it (or even half of that).

Let's break down a more realistic example:
- You pull off an "event" that results in $20mm in proceeds
- Next there are for sure going to be some closing costs (lawyers, bankers, accountants, etc.). Let's peg this at 10% costing $2mm. There is $18mm left.
- Next, the IRS bangs you for 40% costing $7.2mm.
- Depending on where you live, there is likely additional state/local/other taxes. Let's call this ~6% for now, costing $1mm. (yeah, not exact...but there are other costs that will get you here).
- There is now $9.8mm leftover.
- To get to a $20mm event, most people will have diluted their ownership. They either have a partner(s), they have raised capital, promised profits interests to employees, they have taken on some type of debt that is basically equity, you get the point. You have probably done a great job if you still have a full 50%. (and yes, props to those that keep 100% but this is difficult at this level). Let's set the retention at 50%.

Your final check that is wired into your account is now $4.9mm. But, we have to add the "jack ass tax" of, say, 25%. This costs you another $1.225mm before you stop being a jackass.

You now have $3.675mm in your account. You can now dust yourself off and go on to the next big thing. (I think the "hickies" I've put on the above transaction is actually pretty kind, this guy ends up stashing about 20 cents on the dollar)


Key take-away:
- If you are someone that has a goal liquidity number, you should plan on your "event" needing to be a good 5 or 6 times that number. I think this is fairly linear, so, if you are truly "planning" to have $100mm...you need to aim for something like a $600mm+ event. (kind of hard/rare)

I personally don't have "a number". Someone asked me what I'd do if all of a sudden I won the lottery and was worth $3BN. My response: First, I wouldn't want to make my money that way, but if I did...then I'd take a few months off and then go sit in a café in Buenos Aires, pull out a yellow pad, and scratch away until I had my next big adventure planned (armed with a HUGE war chest on this go round...which would make things really fun!)

Anon, of course you're correct about needing a deal size that's a multiple of the final amount you get to keep. If you've been planning properly the multiple can be lower though. I think the 5-6 times would be closer to a non-prepared first time selling your company multiple. This is just my experience and I admit I've been very lucky most of my deals to date.

Just to touch on a few of your points:

- Accountants and lawyers will eat some of the deal. The larger the deal the smaller the %. At the 20M since it can be a good chunk but as you get bigger it gets to be a smaller %. Don't get cheap when picking accountants and lawyers. Good ones will earn their pay be helping structure the deal better.

- The IRS % is the one where pre-planning really becomes important. You do NOT want to be paying short-term capital gains rates. You also need to be domiciled in a state that has good tax treatment. Be very careful when one of the Goldman types tries to sell you one of these complicated tax structures to hold your deal. If it's too complicated for you to understand the IRS most likely will come after you for breaking the "spirit" of the tax code. Goldman won't defend you if their fancy scheme doesn't hold up to IRS scrutiny.

- I personally avoid business partners and I only like diluting my ownership stake with my employees. They end up getting 10-20% of the total deal in the end. I don't like raising capital until I'm cash flow positive when I get much better terms and dilute much less or not at all.

Post: #22

In case some of you missed it. Gringuito has a whole thread where he is killing it with his business advice:

/thread-33451.html

Post: #23

Doing well. But not Ultra rich. Just chilling in Panama right now which makes me like a billionaire compared to the local population but the women. So fine, like the smoothest chocolate after a 20 ounce steak.

Post: #24

(05-20-2014 02:49 PM)TheFinalEpic Wrote:  I would say the goal is 10m and earn 5% on that money for life. That gives you 500k a year to do whatever you want, and for me personally, that'd be far more than enough.

Nobody with 10M in assets is focused on earning 5%. "10M" and "5%" and two very disconnected things to be thinking about.

Post: #25

(05-20-2014 07:32 PM)Gringuito Wrote:  Yes, I invest (though mostly it's just buying) small companies in the space I'm experienced in. I don't invest in real estate, I stick to what I know.

Gringuito, do you also invest in publicly traded technology companies on the Nasdaq? If yes, how much research would you do before buying shares in a small fast growing company?