Excellent advice about staying anon. Only reason not to be anon (unless your incomes comes from being a public figure, and even then you can be semi-anon if you set it up right) is ego. Like you say elsewhere, avoid at all costs.
One other point: Thinking about "competing" with Blackrock is silly. You can't "compete" with billionaires/institutions and you don't need to. If you're a wildebeest, you don't have to be faster than the cheetah, you just have to be faster than most of the other wildebeest. If you can cobble together 10 rental properties that cash flow in your 20's, you're doing great. It doesn't matter that Blackrock bought 10,000 in the same time period. Same goes with computer coins. Nobody is going to "compete" with Winklevii, but that doesn't mean we can't all get rich. As you say, we're still way ahead of 95% of people.
Eh should have clarified this. While yes you are doing well with 10 rentals, the point is that wealth is relative. If we know that big rich guys already know the game, it means you can't gain relative worth faster than them with real estate. Real estate is wealth preservation not wealth creation.
If an asset/investment is unknown = returns are unknown to them. Therefore you could do say 50% when they are doing 20% = you moved up the socio economic heirarchy.
One point I would make about real estate is it is super localized. If you can carve out a niche, you can compete with larger players in your market. There is a reason that large institutions partner with local developers in a LP/GP set-up. You need to have local knowledge to do well.
Yes, buying thousands of rental units across the sunbelt, you have no chance to compete. But if you can find a niche in your market, you can do quite well. Institutions are not writing checks in the $1-5MM space and under.
Yes, wealth is relative, but only to a certain point. As you've said, the difference between $25MM and $75MM just doesn't matter day-to-day. Likewise, whether you have $25MM or $100MM or $500MM, it doesn't compare to $20B. You can't "compete" so it's not even worth thinking about it that way.
There's a reason that many (most?) of the richest people in any given area are 70 years old and own large numbers of apartments. That's still a great way to grind towards the $100MM-$1B range. Especially when you can borrow institutional money for free and use other people's money. As Paisan says below, Blackrock isn't competing for smaller deals (or even $20MM deals, it just can't move their needle). Real estate is absolutely wealth creation if done right (and if you're lucky/smart enough to not get wiped out during recessions). It's just slow.
You're 100% right that you've got a better shot at getting richer, quicker if you identify unknowns. Downside is you either need to be the pioneer (i.e. startup founder), incredibly early and have the balls to hold, or relatively early and have access to capital (since, e.g. you're not getting to borrow institutional capital to buy bitcoin in 2015). In other words, nobody reading this is getting to $10B buying computer coins today. But that doesn't matter. Anybody in their 20s can get to $10MM+, which is plenty for most of them, even if a few others get to $50B in the same time.
It's tough because at some level it seems like if you don't take the most extreme OpSec approach, why do it at all? What do you all think is the proper protocol for establishing a separate metaverse identity that is able to accumulate assets and transact with the real world in an anon way?
I know the advice has been to stay in a lower cost of living area - and I would, except I have work opportunities in a metro market that's higher cost of living (Atlanta). I currently own a wonderful home in the countryside of PA that's appreciated about 75% since I bought it and now locked in at 2.75% 30 yr. I am uncertain what to do in this move. The house is 1 acre, a pool, a barn, a garage turned into an office and an old farmhouse. It has decent maintenance costs and is not an ideal rental, but if values continue to climb, I know I'll wish I held onto it. I am so torn between selling it and keeping as a rental. Moving to a new area and will probably rent for a year to decide what part of town we want to make our home.
Would there be any point of attempting to do both options if you can’t prevent *some* notoriety even if it’s niche?
For instance, if your success in the real world (maybe you end up running a successful fund) naturally builds a name for yourself by people in the know. But then also having that anon leverage of being able to communicate more freely and keeping your alt separate from your real life.
Fascinating about the comment that the rates cant raise because of defaults. I agree for developed markets, but in my market the interest rates never dropped much, property prices haven't gone up, and inflation is still lower than the high interest rates. The central bank actually screws over the economy that way too since interest rates are too high for debt to drive consumption.
As an old timer, I do think it matters who is in charge of the central banks and their political allegiance. It seems that once the currency needs to be protected, socialism/welfare grows too high, we will see the interest rate picture will change. If rates cant go up, and prices cannot reduce, how does this scenario play out? New buyers rent forever, and own nothing per the WEF? That can't be good...
Hi Bull great post, i sold my main residence and bought a newly build 1 last year. It is currently finished. Big improvement, and sold my old house with 400 k EUR profit. Now the new house has currently a net worth around 780k EUR. I have a morgage around 150k on it with a rate of 1,59%. Now in june i have the passing date so wil get the money from the bank. Now i am thinking to plus my morgage to 250.000-350.000 and put another 100k or 200k in computer coins 90% eth btc 10% in smaller 1s and nfts. You think it is smart or first pay the house debt free.Thanks
I understand the importance of low profile and not flexing in public but what are your thoughts on crypto education via YouTube where you’re not anon? Bad idea?
That is the only RE exposure you need. One primary residence owned, next to no shot any government is gonna go after middle class families who own one home and that's it
Keep it under $1M US Token rest of net worth = liquid.
Is it recommended to be in a low property tax state or high property tax state for the primary residence?
Right now I’m going to TX for the income tax benefit and renting at 10% of my gross income. Saving as much as I can. No primary residence yet. I convinced my girl for us to both pay low rent (luxury tho) compared to CA lol
Don't you guys think there's a good chance monke autists will figure stuff out regarding privacy?
There's gotta be a way to i.e. not only throw your ETH to tornado, but i.e. bridge to a future privacy L2, ZKP or even swap for stuff like monero etc. and swap back.
Yes but why take all this risk of being labeled as questionable, just do everything legit and move to a tax haven that is 100% legal and avoid the headache and stress
Got to think one step further. What if by coming out of one of those operations, the funds are flagged as tainted and no broker will let you change them back to fiat.
Sun Tzu says: When stuck between BlackRock and hard place; be like liquid
Excellent advice about staying anon. Only reason not to be anon (unless your incomes comes from being a public figure, and even then you can be semi-anon if you set it up right) is ego. Like you say elsewhere, avoid at all costs.
One other point: Thinking about "competing" with Blackrock is silly. You can't "compete" with billionaires/institutions and you don't need to. If you're a wildebeest, you don't have to be faster than the cheetah, you just have to be faster than most of the other wildebeest. If you can cobble together 10 rental properties that cash flow in your 20's, you're doing great. It doesn't matter that Blackrock bought 10,000 in the same time period. Same goes with computer coins. Nobody is going to "compete" with Winklevii, but that doesn't mean we can't all get rich. As you say, we're still way ahead of 95% of people.
Eh should have clarified this. While yes you are doing well with 10 rentals, the point is that wealth is relative. If we know that big rich guys already know the game, it means you can't gain relative worth faster than them with real estate. Real estate is wealth preservation not wealth creation.
If an asset/investment is unknown = returns are unknown to them. Therefore you could do say 50% when they are doing 20% = you moved up the socio economic heirarchy.
One point I would make about real estate is it is super localized. If you can carve out a niche, you can compete with larger players in your market. There is a reason that large institutions partner with local developers in a LP/GP set-up. You need to have local knowledge to do well.
Yes, buying thousands of rental units across the sunbelt, you have no chance to compete. But if you can find a niche in your market, you can do quite well. Institutions are not writing checks in the $1-5MM space and under.
Yes, wealth is relative, but only to a certain point. As you've said, the difference between $25MM and $75MM just doesn't matter day-to-day. Likewise, whether you have $25MM or $100MM or $500MM, it doesn't compare to $20B. You can't "compete" so it's not even worth thinking about it that way.
There's a reason that many (most?) of the richest people in any given area are 70 years old and own large numbers of apartments. That's still a great way to grind towards the $100MM-$1B range. Especially when you can borrow institutional money for free and use other people's money. As Paisan says below, Blackrock isn't competing for smaller deals (or even $20MM deals, it just can't move their needle). Real estate is absolutely wealth creation if done right (and if you're lucky/smart enough to not get wiped out during recessions). It's just slow.
You're 100% right that you've got a better shot at getting richer, quicker if you identify unknowns. Downside is you either need to be the pioneer (i.e. startup founder), incredibly early and have the balls to hold, or relatively early and have access to capital (since, e.g. you're not getting to borrow institutional capital to buy bitcoin in 2015). In other words, nobody reading this is getting to $10B buying computer coins today. But that doesn't matter. Anybody in their 20s can get to $10MM+, which is plenty for most of them, even if a few others get to $50B in the same time.
This anon dropping info on his day off. Thank you
Great post. hopefully you guys can share how to go anon like you did with your VPN post.
Would be great to get the BtB perspective on creating an online/pseudonymous identity. The best guide I've found (so far) is here: https://github.com/namcios/Pseudonymity-Guide/blob/master/03_2_create_identity.md.
It's tough because at some level it seems like if you don't take the most extreme OpSec approach, why do it at all? What do you all think is the proper protocol for establishing a separate metaverse identity that is able to accumulate assets and transact with the real world in an anon way?
Yes, all the money is being in the 'early innings' of an investment.
We're in the 7th or 8th inning of big tech -- everybody knows Facebook, Google and Amazon run the world.
Last year we were in the 2nd inning of the oil and gas trade, now we're in the 4th inning.
Atm we're in the first inning of the mining and metals trade, especially those that are needed for EV adoption: copper, nickel, etc.
2nd inning of crypto.
I'm with you. I am 60%crypto,10%metals,10% commodities. Rest is RE and cash
You think energy has more room to run? And why so early for metals? You think metals will be “the trade” of 2022?
I know the advice has been to stay in a lower cost of living area - and I would, except I have work opportunities in a metro market that's higher cost of living (Atlanta). I currently own a wonderful home in the countryside of PA that's appreciated about 75% since I bought it and now locked in at 2.75% 30 yr. I am uncertain what to do in this move. The house is 1 acre, a pool, a barn, a garage turned into an office and an old farmhouse. It has decent maintenance costs and is not an ideal rental, but if values continue to climb, I know I'll wish I held onto it. I am so torn between selling it and keeping as a rental. Moving to a new area and will probably rent for a year to decide what part of town we want to make our home.
Couldn’t be more on with this post. Subbed 1month because of how on point this is.
Some background: Golf course neighborhood houses with
frontage sold for $1m 7 years ago. Houses
across the street for $600k-800k. House
on golf course hitting this month 2.4USD
Houses across the street close this week
$1.2m. Blockrock vs anon. The growth has been exponential. But the ceiling…..has been hit?
Would there be any point of attempting to do both options if you can’t prevent *some* notoriety even if it’s niche?
For instance, if your success in the real world (maybe you end up running a successful fund) naturally builds a name for yourself by people in the know. But then also having that anon leverage of being able to communicate more freely and keeping your alt separate from your real life.
Sure that can work, just don't become a public figure.
Fascinating about the comment that the rates cant raise because of defaults. I agree for developed markets, but in my market the interest rates never dropped much, property prices haven't gone up, and inflation is still lower than the high interest rates. The central bank actually screws over the economy that way too since interest rates are too high for debt to drive consumption.
As an old timer, I do think it matters who is in charge of the central banks and their political allegiance. It seems that once the currency needs to be protected, socialism/welfare grows too high, we will see the interest rate picture will change. If rates cant go up, and prices cannot reduce, how does this scenario play out? New buyers rent forever, and own nothing per the WEF? That can't be good...
Stay anon, stay stealthy.
Hi Bull great post, i sold my main residence and bought a newly build 1 last year. It is currently finished. Big improvement, and sold my old house with 400 k EUR profit. Now the new house has currently a net worth around 780k EUR. I have a morgage around 150k on it with a rate of 1,59%. Now in june i have the passing date so wil get the money from the bank. Now i am thinking to plus my morgage to 250.000-350.000 and put another 100k or 200k in computer coins 90% eth btc 10% in smaller 1s and nfts. You think it is smart or first pay the house debt free.Thanks
I understand the importance of low profile and not flexing in public but what are your thoughts on crypto education via YouTube where you’re not anon? Bad idea?
That's up to you!
lol i will use this line when i smile node and agree
What about primary residence? Seems like buying is a no brainer if semi-stationary. Otherwise rents keep squeezing higher. What am I missing there?
That is the only RE exposure you need. One primary residence owned, next to no shot any government is gonna go after middle class families who own one home and that's it
Keep it under $1M US Token rest of net worth = liquid.
You think its wise to go rural/off-grid or is that just a meme and you should look for something that will appreciate in value?
Anywhere you're happy to live for 10 years.
Is it recommended to be in a low property tax state or high property tax state for the primary residence?
Right now I’m going to TX for the income tax benefit and renting at 10% of my gross income. Saving as much as I can. No primary residence yet. I convinced my girl for us to both pay low rent (luxury tho) compared to CA lol
What do you suggest? Thank you!!
Regarding privacy:
Don't you guys think there's a good chance monke autists will figure stuff out regarding privacy?
There's gotta be a way to i.e. not only throw your ETH to tornado, but i.e. bridge to a future privacy L2, ZKP or even swap for stuff like monero etc. and swap back.
Yes but why take all this risk of being labeled as questionable, just do everything legit and move to a tax haven that is 100% legal and avoid the headache and stress
Can you share a post on options outside of PR for USA citizens to look into? Like Singapore / Asian countries? Thank you!
Got to think one step further. What if by coming out of one of those operations, the funds are flagged as tainted and no broker will let you change them back to fiat.
Many thanks to you Mr. Bull.
danke for reminder