#Entrepreneurship #SmallBusiness #FinancialFreedom #SuccessStory #BusinessVenture
Buying a business for $380k in 2019 and now listing it for $1.75M might seem like a dream come true for many, but it also comes with its own set of challenges and decisions to be made. As you navigate through this exciting yet crucial stage in your life, it’s important to seek guidance and consider all options to make the most out of this opportunity. Here are some practical solutions and advice to help you on this journey:
## Evaluating Your Options
Assessing Your Financial Situation
– Take stock of your current financial standing post-sale, factoring in commissions, capital gains, and other expenses.
– Consider the risks and rewards of investing in a new home in Southern California and its impact on your overall financial stability.
Exploring Investment Opportunities
– Seek professional advice on potential investment avenues such as CDs, growth funds, and bonds to diversify your portfolio.
– Evaluate the tax benefits and implications of using your new home as collateral for future business endeavors.
## Making Informed Decisions
Weighing Your Lifestyle Choices
– Reflect on your lifestyle aspirations and long-term goals to align your financial decisions with your personal values.
– Explore the possibility of pursuing new ventures or opportunities that resonate with your passions and interests.
Seeking Guidance and Support
– Reach out to financial advisors or mentors who can provide valuable insights and advice based on your unique circumstances.
– Join entrepreneurship forums or networking groups to connect with like-minded individuals and share experiences and best practices.
### Embracing the Future
In the midst of this significant transition, it’s essential to stay true to yourself and stay grounded in your values and aspirations. Remember that success is not just about financial gains, but also about fulfillment and happiness in all aspects of your life. Embrace the unknown with confidence and optimism, knowing that each decision you make is a step towards a brighter future.
Whether you choose to embark on new adventures or continue to grow your current business, trust in your intuition and surround yourself with a supportive community that uplifts and empowers you. Your journey is unique, and your path to success is yours to define. Good luck on this exciting chapter in your entrepreneurial journey! 🚀💼
Did we really need to know about the penis enlargement surgery
What kind of business?
Care to share more about your story for the dreamers? What industry? I figured capital gains would be higher
Cool
Building a business for a surgery is kind of crazy but hey whatever motivates you
How big is it now?
You need a good financial planner. The bulk of your gains from your sale should be invested. 39 is pretty young, so protecting your nest egg is important. How you allocate your money across asset classes is critical. At your age, equities should play a meaningful role.
I would encourage you to put a modest sum down and borrow the balance for a new home. Always use other people’s money when you can. In this instance, a mortgage is sensible. Optimize your interest deduction. The increase in credit capacity will also open up opportunities for more credit should you want to buy another business down the road.
Congratulations on your success and good luck!
Get out of CA if you hate winter, So Cal winters are turning colder and rainy and save taxes
[This is what $1M gets you](https://www.redfin.com/CA/Los-Angeles/3961-S-Centinela-Ave-90066/home/6739604) in SoCal. 1300 square feet in a postage stamp yard, and $15,000 a year property tax bill. Minimum wage and a 4% safe withdrawal per year on the rest of your money will still be a rough life. I’d look more at a medium or lower cost of living area (maybe Vegas or Phoenix area) where you can get a lot more for about half the price.
Apparently people love working at Trader Joes so much, there are few positions available – same with Costco – so I’m also considering it!
I don’t really have much to add other than good luck on the surgery. Hope you get to 7!
Before buying a house ( at least a permanent one ) try renting a place in the city/neighborhood for a year. See if you like it. Explore new countries as well, the exchange rate in some countries will ensure you don’t live a mediocre life but a great one especially considering you are burnt out and just planning to bag stuff. You sacrificed alot and deserve a good life don’t settle for less.
invest in real estate. Do not buy a home cash. Thats a terrible move. Use that money to make more money.
Buy a duplex or a four plex, live in one unit and rent the others out. They’ll pay your mortgage for ya.
Watch out for those CA taxes. Even without a substantial income you’ll have high property taxes etc.
At any rate, congrats on the potential sale! Love to see stories like yours.
Move to a quiet town by the beach……..
Personally I wouldn’t put the entire $1m into a house, that’s too much for a low return. SoCal is super expensive, prices likely won’t drop much, but rates will, so take your time.
Id put down the min down payment to where you don’t need Mortgage Insurance – which I believe is 20% down / 80% LTV loan, buy SMART – which is hard in SoCal. As mentioned $1m home won’t get you anything nice. You can prob get something nice for $1.6m in San Diego, 10-20 min from the beach, good neighborhood. Even 10% down is only $160k. Anything west of the 5 highway will be $2m.
Take the majority and invest in something safe and get 10-15% returns. I’m biased toward real estate, but there’s numerous ways to passively make 10-20% annual returns. Let that compound and consider working a remote online consulting gig (help write off a ton of taxes) and make enough to cover your mortgage/cost of living ($120k+ in SoCal).
You’ll really want to plan the sale with an experienced CPA. Taxes will be your best investment (of time/money in cpa) overall. CA taxes aren’t cheap. So make sure to complete the sale in your state. Consider renting in SoCal for a while if you’re never been (renting is still cheaper than buying here). Take time to find your purchase, there are deals out there if you work with the right network of people.
Good luck!
Where did you list it?
A house in california would evaporate your gains. Spend 500k on a nice home in TX and invest the rest
Congrats. It $1.5 isn’t going to go far after buying a house. I’d do some consulting on the side and just hang out.
Also if you want good weather you can come to florida
Wow. No taxes in the sale proceeds? Nice. Let us know how you’re doing that.
Haha personal choice I would have just gotten a fancy car!
You’d eventually be unable to afford the upkeep and taxes on a million dollar home, even if it is paid off, working as a “bagger”.
If you got $1.7, even clear? You’d be best off finding some place in the Midwest, for around $300k to $440k. THEN… you’d still have to get a better job than Trader Joe’s bagger in order to ensure you’d keep up with taxes and inevitable upkeep on the property.
If it were me I’m going to a state with no state income tax and buying a larger home in a suburban neighborhood in one of those states.
Sticking everything else into an index fund, finding a job that’ll pay me 45-60k a year so I can afford the property tax and upkeep, maxing out my 401k and retiring at 50.
If you put a million dollars in an index fund and didn’t even contribute to it until you’re 50 it’s like 2.5 million dollars if I’m doing the math right.
If you like it, I’d recommend keeping it. Taxes will eat a large chunk of your earnings.
You should take out a loan against the business for $1M and take the money. Use the business income to pay it off and then do it again in another couple years.
A million dollar house in Southern California will buy you a glorified shack
HELL YEAH!
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I bought a business for $750K in 2019 and just had a guy flake at $650K.
Im a RE agent in so cal so take this with a grain of salt. 1.5mm into multi-family should net you 5-7 or so 1mm properties (20% down) making 10k a month after mortgages conservatively. Puts you on cruise control for the rest of your life.
Move to SE Asia. Buy a condo. Put $$ in to a monthly income ETF like JEPQ. Pay no income tax on your first 100k as an expat. Enjoy your life.
What kind of business
Congratulations, well done!!! I would say get a real money advisor. It might be better to rent a year. Sometimes it’s more important to control (rent) then to own (buy) and less expensive and more flexible. But well done!!
whats the business?
I moved to Central America and invest in real estate, property development and a few other tourism related ventures. Worth a look.
That’ll be my next venture. I ways wanted to build my own brand and go from there and idea and a logo to a sale. It took forever but I finally did it. Now that I checked that off the list, I’ll be selling this in a couple years and buying something that’s already cash flowing. Not sure what yet but I’m gonna take my time deciding. Congrats btw.