Big Money Talk on MRT

I was on the MRT going back home when I overheard this conversation between a middle-aged man and a guy in his late twenties. The young chap was probably a property agent and talking to this middle-aged man who was also probably a property agent himself. They were talking about flipping properties and the young chap was eager to learn from the middle-age man.

Young man: So you buy and sold a lot of properties?

Old Man: Yes. A lot. In the past, just buy and then sell, and you make lots of money.

Young man: How much money do you make per sale?

Old Man: Good money.

Young man: So 30K?

Old Man: No lah! 30K is peanuts. I am talking about 6 digit here man... 30, 40K is peanuts!

Young man: Wow. *suitably impressed

Old Man: In 2007, any property on the market, you just buy and sell. Surely make money.

Young man: Wow. So you must have made a lot of money.

Old Man: Enough to survive lah. Nowadays it's just consolidating.

Young man: So how much do you make from all your transactions? Got 200K?

Old Man: No lah! Please! 100-200K is peanuts I tell you. Chey..200K is nothing man, I tell you.

Young Man: Wow....

Even when I heard this conversation, I was like "Wow". 200K is peanuts??

Some people do not even earn $200K after working for ten years and here was a man talking quite loudly in the MRT about $200K being peanuts and how he has made a lot from flipping properties.

Food for thought!

10 comments:

  1. You should have immediately call him "Master, I am here to learn from you!". LOL

    ReplyDelete
  2. Funny, if 200k is peanuts, why is he still on the mrt (since making peanuts of 200k was only less than 3 years ago), and that a "peanut" car cost much less than that??

    Interesting. Talk big nia la.. haha..

    ReplyDelete
  3. I believe it is possible when the property market is hot. As their income also fluctuates with the property cycle, he may also go through lean times when economy is bad. I have heard of several who became millionaires from properties, although only one who actually flips. The one who flips is a young property agent. I discourage flipping. Always be careful with property investment. Don't get caught with pants down when the tide is low.

    ReplyDelete
  4. Property investing(buy and hold for 10yrs at least) and speculating(not advisable if you don't have the cash to back it up - flipping or selling within 10yrs) is the only investment that preserve wealth and appreciate wealth.

    After listening to the countless rich men (proven rich type - I know), the peasant millionaire in me says I need to start allocating more to properties.

    Everyone else will tell you leverage is bad and blah blah blah. For those who tell you negative stuff, what are their financial status now? Leverage is essential to get rich, it is the fools that leverage to the hilt or over-stretch. Prudent leverage is always as safe as without leverage.

    So far, the richie rich I know either make their money thru' properties or thru' their business. NONE I spoke to..I REPEAT.. NONE.. ZILCH.. make it thru the stock market.

    I'm not saying there is no one who will get rich thru' stocks. But could it be the probability of becoming rich is easier thru the above two rather than thru stocks?

    ReplyDelete
  5. how come some pple can achieve that 1st million so easily but others take dono how long to achieve it?

    ReplyDelete
  6. Oh btw, the reason why the property agent thinks $20-30k is peanuts .... A $1mil property at 1% is 10k commission(split between agency and him). He can sell a few of these in a month to get $30k easily.

    Those higher end ones go for the >$10mil market and easily earn $100-200k per transaction. But whether he is the higher end type.. i dunno...

    ReplyDelete
  7. The flipper I refer to are those who sell their properties in less than 3 years, usu before TOP.
    Some sell in less than a year.

    ReplyDelete
  8. WJ,

    What you said is quite true. Most of the people I know who are rich either got there thru their business or property. None made it rich thru the stock market. In fact very few.

    Most of the ppl I know who play the stock market have lost money in it or are just comfortable..but never really rich.

    I guess leverage works both ways.

    ReplyDelete
  9. Very true. Make enough money from stock market to be comfortable or able to reach financial independence. So hard to become rich without leverages.

    ReplyDelete
  10. Hey FF,

    That is a truely interesting conversation! haha.

    But now the properties are very expensive too. As the saying goes "The rich get richer". They either use the money to invest in other things like business opportunities and properties. But for poor people, it's gonna hard to get extra money to invest and do business. That's the truth of life.

    However, there are still many ways to build passive income actually...from blogging, online programs, leverage investing etc.

    It can be done guys!

    ReplyDelete

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