How Do The Warriors Invest Their Online Income Offline?

[pheonix44]

Hello Warriors, I was just sitting here thinking to myself after posting a thread I read earlier about someone expressing uncertainty about the financial stability of the online world. I was just wondering how would people go about using some of the money they earn online to invest off-line.


I was just thinking that if I was making a few thousand dollars a month online what are a few ways I can use some of that money to set up passive income streams off-line.


Real estate would be an example. If I can invest some of my money in real estate and I was able to become educated enough in it than I would be able to set up income streams that would possibly last for years and years to come, especially seeing as real estate is priced really low nowadays.


It also seems to be better to invest in things that you have no intention of seeing any immediate return from when it comes to the off-line world. I have been learning to adjust my thinking in such a way that I do not want to see my money just sit in the bank doing nothing.

Do any of the Warriors invest their money off-line in ways that they'll be seeing passive income, or at least semi-passive income, because I believe that no income is truly passive. If you do would you mind sharing with the rest of us so that we can all get some insight on how to build up long-standing power houses both online and off-line so we can kick butt for years to come? Thanks

[myob]

You are right on track. I invest in foreclosed houses; fix them up and rent them out. Also made a nice little fortune in the stock market. There is opportunity just about everywhere right now.

[SMP]

To date, the only thing I've invested in is property for just the reasons you've outlined here - long term investment and passive income.

I bought a piece of land that I'll build on one day, a property at auction which I renovated and rent out, and a property with my brother-in-law (who happens to be a builder) which we intend to renovate and sell.

When I started making money online, it took a while to settle all of my debts (nothing new there, I guess) and, more importantly save enough 'fall back' money so I could give up the day job and do this full time.

I'll continue to invest in property as long term investments.

Happy days.

Steve.

[futuremills]

Originally Posted by myob

You are right on track. I invest in foreclosed houses; fix them up and rent them out. Also made a nice little fortune in the stock market. There is opportunity just about everywhere right now.

my goal right there

[activetrader]

I invest in bills, rent, food, clothing, medical bills. The rest is just sitting in the bank

[pheonix44]

I invest in bills, rent, food, clothing, medical bills. The rest is just sitting in the bank

If the rest is just sitting in the bank it is not doing anything. Making money is one thing, letting your money make money for you is entirely different. I try to take at least 5-10% of my income and put it towards some kind of investment in myself. Self help books, info products, software tools, automation, learning valuable skills that will help me take my income into the offline world and make a killing. One will feed the other.

[Dan Grossman]

Long term stock investments in companies with good fundamentals and steady dividends, purchasing gold and silver bars, and I keep some money in a wide number of currencies to hedge against any inflation of the US dollar resulting from the "bailouts".

[pheonix44]

Long term stock investments in companies with good fundamentals and steady dividends, purchasing gold and silver bars, and I keep some money in a wide number of currencies to hedge against any inflation of the US dollar resulting from the "bailouts".

This is definitely a way to build long term wealth. My ultimate goal is to leverage my online income into offline commercial real estate investing and forex trading.

[brainfreeze]

I hope to be writing what I'm doing with my online money offline once I start making online money. I'll will be back soon i hope. Congrats to you all on your success

[kf]

Originally Posted by pheonix44

Do any of the Warriors invest their money off-line in ways that they'll be seeing passive income, or at least semi-passive income,

Several investments will give you an option of compound or simple interest. In the simple interest scenario, your principle doesn't grow but you are paid interest monthly (or quarterly). If you like, you can call this passive income. Some second mortgage holdings are paying out at 12% (even now), and dirty math on that is, 10K = 100/month (50 = 500, 100 = 1,000, etc.).

Be sure you can switch between the two. IOW, if you start with compound you may someday need to switch to simple, then when the need is no longer there, switch back to compound.

Basically the same scenario as being paid dividends on stock.

Real estate can be awesome also. There's three ways to make money with real estate (and no, it's not 'location, location, location' ...):

1. Buy below market value
2. Income (rental)
3. Equity/capital (leverage for other projects)

In any case, keep in mind that the right investments can decrease your tax, and some will suddenly be worth less than you thought b/c of capital gain tax, etc. An hour and a few bucks with a professional (your accountant and an investment advisor - one who doesn't work primarily on commission) will be good value.

[pheonix44]

Several investments will give you an option of compound or simple interest. In the

simple interest scenario, your principle doesn't grow but you are paid interest monthly (or quarterly). If you like, you can call this passive income. Some second mortgage holdings are paying out at 12% (even now), and dirty math on that is, 10K = 100/month (50 = 500, 100 = 1,000, etc.).

I am not sure if I understand this right.Could you break this down a little more?

[drmani]

My preferred list:

Stocks.

Real estate.

Education/Skills training.

Team building.

Building automated systems.

All success
Dr.Mani

[Amy Bass]

Getting 100% completely out of debt is the best offline investment you can ever make. That way no matter how much your income fluctuates you don't stress as much because you don't owe any money to anyone.

[activetrader]

Originally Posted by pheonix44

Making money is one thing, letting your money make money for you is entirely different.

No doubt about that. Money always makes money.

I used to flip real estate some years back. Made good money. My next thing was oil in which I started investing in 2004 and cashed out in 2005. Can you imagine?

[debra]

Let's see...

There's TXU Electric, Atmos Gas...can't forget the city water department.

Oh...and AT&T.

But, I still think the neighborhood Kroger sees most of it.

I quess this should be my own hint to look into Bonds for retirement? I'll have to look into that.

[TheDebtEliminator]

Excess profits should be spend on excess pleasures


All Joking aside a small amount (10% t0 20%) should be put into gold and held for a while

If the economy goes far south, gold will double quickly as inflation eats away at the dollar's value.

Why not outsource something in IM, then rinse and repeat in a completely opposite niche and diversify that way

Best Regards

[pheonix44]

No doubt about that. Money always makes money.

I used to flip real estate some years back. Made good money. My next thing was oil in which I started investing in 2004 and cashed out in 2005. Can you imagine?

I just have to ask if your picture is the real you, if it is then you are friggin HOT

[MichaelHiles]

Buy undervalued assets... anything, real estate, businesses, cars, whatever people are desperate to unload because they need quick cash.

Sit on them until you find a buyer for a price that represents more of a true, fair market value.

I bought a lot of vintage and collectable firearms when they were really inexpensive. Now they're insanely priced because of the market demand.

[IM Headlines]

I invest the money that I earn online on the internet
so that I can grow my business even further.

Usually I only invest in real estate when it comes to offline
money...

Regards,
IM Headlines

[MisterMunch]

Currently I am investing the money I make online on articles and backlinks. This helps me grow my online income on a steady basis.

I have sat this limit of online investments to $ 2000 a month. I am only making 6-700 a month right now (great, by the way), but when I reach 2000 I will invest anything above that in cutting down my house debth (250.000) student debth (50.000) as well as buying stocks and bounds (50/50 debth and investments). I also pay down my debth acording to the 30 year plan the Bank put up for me. This with my day job money.

When the debth is gone, my online income will be very good, and I will have 300.000 in my stock portefolio (+ or - interrest) and will be ready to quit my job. I am pretty OK with my work right now, and as I outsource most of my online work, I do not spend much time on it.

As you can see I am not realy making any money online, but I am building my online properties with the dollars it generates. (OK. I spend some once in a while)

[kf]

If I understand what you're asking ...

For simplicity of the math, let's say you put 10,000 into an investment that pays simple interest at 12% and it pays out quarterly.

Every 3 months, you'll get a cheque for $300

- 12% annually x 10K divided by 12 months x 3 months

10,000 x 12% = 1200 (annual interest on the 12K)
1200 / 12 = 100 (interest paid out monthly)
100 x 3 = 300 (interest paid out quarterly)

Using the above formula, 50K invested will yield $500/month, 100K will give you 1K/month.

Simple interest is not a great long-term investment b/c your principle stays the same. When you no longer need that extra $ each month, you should convert the investment to compound interest so your money will grow.

HTH.


Quote:
simple interest scenario, your principle doesn't grow but you are paid interest monthly (or quarterly). If you like, you can call this passive income. Some second mortgage holdings are paying out at 12% (even now), and dirty math on that is, 10K = 100/month (50 = 500, 100 = 1,000, etc.).
I am not sure if I understand this right.Could you break this down a little more?

[drmani]

Originally Posted by CaribbeanDream

My house, property and car are all paid for, so, I'm going to build a small school for the kids in my local village to learn computers and internet on. The school they have now is only about 16 X 20 ft and has no books, no desks, no electricity, and the bathroom is outside. That is for about 50 kids. Most of them only go until age 12 then just hang out in the area and play soccer. They graduate just barely able to read and add, not much else. Anyway, that's my goal, only need about $8,000 to pull it off, so it's doable.
C. DREAM

I'm reading Greg Mortenson's book, "3 Cups of Tea".

With your interest in building schools, I'm sure you'll find it a great
inspiration.

Good luck with your noble work.

All success
Dr.Mani

[pheonix44]

What about investing in tax lien certificates? I have heard this is a good investment.

[birdfood]

Originally Posted by pheonix44

This is definitely a way to build long term wealth. My ultimate goal is to leverage my online income into offline commercial real estate investing and forex trading.

I would not call forex an investment in money. Most of the people have are successful forex traders recommending starting with a small account and using your profits to grow the account. NOT pumping outside funds into your account.

[cscarpero]

Tax lien certificates. 18% in Florida baby!

[BrashImpact]

Currently we are investing in Lease Option real estate where
we go on title. We get Quit claimed on, and quit claim the
previous owner off.

We are currently buying existing Virtual real estate, lol websites,
that are grossly undervalued or have a potential for a huge
upswing with a Marketer behind it who understands marketing.

We continue to invest in ourselves and our own sites by creating
more sites and more products with profits from other
ventures.

Lastly and this one is the best, we are about a month out from
becoming mini- venture capitalists. We are looking at business's and
ideas that folks have that need capital. Our preference is those
people with no background in Internet Marketing at all. This gives
us huge huge leverage.

Thanks for taking the time to give us a thougth provoking post.
Regards,
Robert Nelson
"The Maverick Motivator"

[Joshua.E1]

This is an interesting treat.

I do invest in offline and even online investment.

One point I like to stress on is that if you do not understand the business that you are investing in, do not go in till you understand it.

I invest in real estate rental mostly.

[lakshaybehl]

I am not so good at handling things offline, but both my parents, fortunately, are.

So, I just hand over the excess cash to them and they take care of it for me.

But here in India, the value of property is really low right now, and you can buy some really delicious houses very cheap, if you make enough offers. It's again a numbers game. So we are buying residential properties, and then renting them out to couples/groups of students/ small families etc. so we have constant flows of cash come in on a monthly basis. I'd like to take this income to 1.5 times my current expenses and that is where I would say I am wealthy.

But to be very honest, I am easily lured by the fancy cars and shiny toys, so I just buy them. I do not have a lot of control over my spending.

[cheesy]

I tried the stock market, made quite a loss, so i kinda gave up with off-line and went back online i find much more oppertunities online. Maybe when i have enough money, i might get into buying and renting out houses, and then selling them off when house prices are up xD

[Kim Standerline]

What a fabulous investment for the future, investing in today's kids

Kudos to you

Kim

Originally Posted by CaribbeanDream

My house, property and car are all paid for, so, I'm going to build a small school for the kids in my local village to learn computers and internet on. The school they have now is only about 16 X 20 ft and has no books, no desks, no electricity, and the bathroom is outside. That is for about 50 kids. Most of them only go until age 12 then just hang out in the area and play soccer. They graduate just barely able to read and add, not much else. Anyway, that's my goal, only need about $8,000 to pull it off, so it's doable.
C. DREAM

[Mr McDonald]

Iam a member of a private investment club, all high end investments. Use my online income to purchase pre-listed shares for various companies. The most exciting one is a company that is building a whole series on holiday complexes on a number of islands in the pacific.

[pheonix44]

What about penny stocks, does anyone here do that.I have been looking into it and it seems pretty low risk.

[Dan Grossman]

Originally Posted by pheonix44

What about penny stocks, does anyone here do that.I have been looking into it and it seems pretty low risk.

Riskier than you think, then.

[pheonix44]

I would imagine it would be less risky then regular stocks without you having to invest too much money. Everything is going to carry a risk so it is not like I am going to shy away from everything because there is risk involved. Internet marketing is risky but I still do that.

[Dan Grossman]

If you invest $1000 in a penny stock, and $1000 in a NASDAQ company, and both shares drop 50%, you've lost $500 either way.

But the amount of information you know about a no-name company you're trading versus a large company with millions of investors, and all the pump-and-dump schemes in penny stocks, means there is more risk involved with that little co.

If you are only going to invest $20 because it buys you a bajillion penny shares, why bother investing? If it doubles you made a couple bucks. That's not an investment strategy.

[sashas]

Real Estate in my country is crazy these days..I remember a friend who got a piece of land five years back that's now worth 7x the original amount. And that's the standard rate of appreciation in most major cities here

[Kenster]

There are tons of opportunities out there in the offline world and everybody should be taking advantage of these opportunities if they have the means. Real estate property and raw land can be bought for 50 cents on the dollar. If you can wait out the storm, you will likely see a great return.

venture capital...private equity...there are tons of opportunities right now

Online income is not going anywhere as a whole, but individual streams may, so make sure you diversify and have multiple streams of income. I focus on CPA marketing, but I know any month can be the last of the huge paychecks. So I have increasingly been investing in other strems like web development etc

Diversify as much as possible...online, offline, everywhere

Good luck!

[Jimerson Farveez]

Real estate, Establishing learning centers, Establishing small shopping centers are other options when it comes on offline business.

[pheonix44]

Let me put it this way,if you put your money in the bank it won't do anything just sitting there. Even though real estate might not be liquid it is more secure then having money in the bank which only insures it up to 250.000

[TheRealDomainer]

How do I invest my money that I earn online?
1. I buy properties and built on them.
2. I invest a lot of money in producing printed books that I still sell as ebook online with copyrights and sell them during my monthly Internet Seminars. I started this after reading a book titled "How to make money out of thin air by Brian Sheer'.
I have to make passive income from all of my printed books, videos and tapes as they are in bookshops and vendors who make money in partnership with me
3. I invested my money in running a school where I teach along with my teachers who passes through my mentorship.

[Saul']

I don't have much to invest yet, but I've already invested some in gold as much as I could. Looking forward to invest in real estate in the near future.

[ha_squared]

Originally Posted by activetrader

I invest in bills, rent, food, clothing, medical bills. The rest is just sitting in the bank

That is hilarious but true. I don't think there's too many marketers making that much money that they can start investing into big grand offline projects. It's probably best to save for a rainy day unless you've got millions, then I guess you could invest in a small island in Dubai.

[pheonix44]

I think some people are getting me wrong. Investing can mean anything, it could mean investing in yourself, investing in someone else, or investing in resources that can help to grow your existing business.

[patman3d]

I just started out so I do not have anything to invest in... yet... but when it does start rolling in, I think I would invest in more/better computer equiptment.

[pheonix44]

I just started out so I do not have anything to invest in... yet... but when it does start rolling in, I think I would invest in more/better computer equiptment.

Then how about you invest in yourself as corny as that may sound. I remember before I had a computer I would go to the library everyday to use theirs. Then I bought a cheap one off of craigslist for a good price. Then I kept learning and parlaying. This is why I say invest in yourself because that way even if you were to lose all of your money you would still have the knowledge to make more.

[Jeff Casmer]

Hi,

I invest in my children....

They will of things go well keep giving back to you and society for decades....

Take care
Jeff Casmer

[pheonix44]

Hi,

I invest in my children....

They will of things go well keep giving back to you and society for decades....

Take care
Jeff Casmer

I like that, maybe I will be able to say that one day really soon if I ever manage to find a girl who understands me.

[pheonix44]

Just as a non-marketing tip, don't ever mention to a girl that you're having a hard time finding a girl that understands you.

Wouldn't matter anyway, I am so busy with this IM stuff I would not have time anyway. But even when I mention I have never had it used against me. Some girls like it when you actually appear to have a standard.

[RyanCoisson]

Hey Phoenix44,

I invest some of the profits I make online offline into several places. For example I have a seperate retirement account where I invest in index funds, I have traded lots of stock options in the past and done some real estate in the past.

Those are all viable options. You could also look into buying tax liens or I know people that actually buy other businesses that product positive cash flow.

Hope that gives you some ideas.

Ryan

[Saul']

Originally Posted by Jeff Casmer

I invest in my children....

They will of things go well keep giving back to you and society for decades....

Going a bit off-topic, but I can't relate to that. I can't imagine myself seeing my children as a cash cow. Whatever they will earn they will earn for themselves and whoever they will want to earn for, regardless of what I've "invested" in them.

Everything I will invest in my children, I will invest because they, as a value, are valuable now and then more than the money I invest (if that makes sense). To expect a return from children as an investment is missing the point in what children are for, in my opinion. It's not about what they will become, it's about what they are.

Just my 2c.