In this case, the scammer may even use the name of a reputable real estate agent, one who holds a license in D.C. But when the prospective renter calls, they

If you could only pick one form of investment would you pick gold, stocks, annuity, or real estate?

Answered 3-29-2019

If you could only pick one form of investment would you pick gold, stocks, annuity, or real estate?

Do you consider stocks or gold a worthwhile investment?

Peter Taradash says:

The answer depends on your age, ambition and net worth at the time you start.

If I were 21, a recent college grad with zero net worth, & if I knew or could learn a little bit about subdividing & developing real estate, that would be my first venture:

I’d talk to farmers or owners till I found a nice 1000 acres in the path of any city’s growth. I would make a deal to subdivide this land. There are a zillion ways to structure the deal, and a zillion possible similar deals. I might even get the land for a dollar an acre if I bid it in at a tax sale.

More individual fortunes have been made in real estate than in all other industries and businesses combined.

How to proceed:

You draw up little squares on a map, creating a new subdivision from your creative imagination, maybe with amenities like swimming pools & tennis courts. You get a bridge loan to pay for roads, utilities and sewers. You lobby the “City Fathers” to get the needed permits. You get your subdivision annexed to the nearby city or town. And on & on.

Then you sell off building plots at $20,000 per half-acre or whatever the traffic will bear. Example? Retail sales price of the whole shebang, $40,000,000. Cost of everything including broker’s commissions, $5 Million. All paid for by the bridge loan.

I might even put up some homes and a shopping center for an extra few million in profit to myself.

Trouble with the above plan is that it requires a lot of work, stress, organizational ability, negotiations, marketing, salesmanship, etc. But after about 2 years, at the age of 22, you, as a real estate developer could walk away with a net cash profit of say $35,000,000. Plus, you have done the world a lot of good by creating an attractive gated subdivision and commercial area to serve it. The above story is similar to what I did and what at least a dozen of my classmates who graduated from Wharton actually did. With variations of course.

After all the stress of such a real estate deal, I kept a few of the places I built for rental income sheltered by depreciation. Then I retired and went back to school abroad (in Paris France & Mexico City) for a few years. After that, I wrote the book about how to get rich in real estate (or the enterprise of your choice). It’s called Think Like A Tycoon. It is still available.

In the process of making my first $30 million before I was 30, I became entangled with my 1st wife (of 5 altogether). That was an expensive disaster. You can read about my views on marriage in my other QUORA answers.

Avoiding marriage is your best investment. My rich friends and more successful classmates did all kinds of different things with their lives. Two were actually multi-billionaires. But guess what? They are both dead! I am still alive and kicking. The moral of that particular story is that once you are financially independent, quit worrying about what to invest in. Just try to hold on to your assets. It’s not a bad idea to cut out the stress, get rid of your ex-wives (and alimony & child support) one way or another, and maybe put your dough into gold coins. How much you need to retire early depends on where you go, and what your desired lifestyle will be. In the Philippines, you can live comfortably on the fumes from an oily rag– with a couple of beautiful women to cater to your every need. Like me!

Getting a reliable intelligent 3rd World woman like this whom you can show how to get very rich in a deal or two is your best investment.

Now, as an 82 year old geezer who doesn’t want any more stress, GOLD would be my 1st choice. More important than investing, choose a loyal much younger Mistress or two (see picture of latest one). They will be much better and cheaper (instead of marriage) to take care of reservations, driving, packing paying bills, & all the other necessities of life. Like sex. See my Quora answers about Sugar Daddies & Mistresses.

Back to Investment Choices!

The big advantage of bullion gold in the form of coins is that holding gold does not require management or reporting. You can put it in a safe place & then easily sell a coin or two if you need spending money. Standard gold coins like Kruger Rands have great liquidity. There is always a buyer or seller to take them off your hands at or very near to the quoted “gold melt” price. You can see these prices on the INTERNET at KITCO or many other places. I am always a buyer of genuine coins at 2% below melt. I am always a seller at 4% above melt. Talk about stress-free? Nothing is easier than dealing with reliable counter parties in C.O.D. gold coins. (To my readers – don’t bother me with gold deals unless you are a well known respectable dealer in said product. There are too many scammers around usually with fake Chinese Panda coins. After being swindled & burned in many ways, I am too experienced to be scammed any more. )

Gold is relatively stable in price. As of 2019 it is a bit below its historical average price. I’d consider it more like insurance against poverty than a great investment likely to make you or anyone else rich. Gold is now (April 2019) around $1300 a troy ounce. It could conceivable go up to $2000 or down to $1000 in the next couple of years. That is it’s “trading range.”

Stocks, cyber-currencies or futures options are better for gambling. Their trading range is zero to infinity.

Annuities?

You gotta be kidding. You give away your money to a big insurance company to pay you nominal sums — well below the inflation rate. Then when you die, they keep your money. The only slight advantage there is that your crappy income is “judgment proof.” If ever there was a lousy investment, that is it.

Real Estate:

It should be a business, not just a passive investment! I once had 250 properties Now I am so glad to have cashed out of that business! There is more to life than maximizing your net worth —

Once you have enough to live in your comfort zone for the rest of your life it’s time to devote you time to stuff you like to do. In my own case, I wrote another book about that called “PT” … Excerpts from that book are to be found in my QUORA answers. P.T. is about tuning in, turning one & dropping out — enjoying life in the playgrounds of the world —just as I have been doing for the past 40 years. The only foolish thing I do is to write for QUORA for no pay. But when you are rich, you can do foolish things if they are fun for you.

If you read my other answers about real estate on QUORA or visit my website, you can simply follow the advice in my real estate book Think Like A Tycoon to get very rich. Trouble is, it is a lot of work, and can take years!

What’s that advice?

You must fully understand the local market, make deals, manage your own properties, get good loans and above all only buy distress property with low down payments. The problem with real estate direct investment is that it requires time, energy and is stressful. But more individual fortunes have been made in real estate than in all other industries and businesses combined. If you invest in real estate securities like REITS or Partnerships, that is like stock! You are not in control. You will make the entrepreneurs, dealers or general partners running these shows rich, but not yourself. “Investing” —that is buying other peoples “products” at retail —is for suckers. Make money in your own biz. You must be the dealer or the person who creates the product !

Bottom line: Gold may be the best passive investment there is, but in terms of potential, it is way below what you can make as a wheeler dealer, or in any business where your own brain power, expertise , skill or expertise is utilized.

To make (much) more money, stay healthy, and improve your sex life, read my other QUORA answers &/or see my website. I wouldn’t mind an up vote if you liked this. //

PeterTaradash.com//