All Forum Posts by: Terra Padgett

Instant liquidity or long-term asset growth? What's your pick? 

@Becca F. I like your diversification strategy 

@Dan H. 
You are free to have your own beliefs. You are also free to do your own research. It's sad this post has struck such an emotional chord with you. lol. Good day....

Quote from @Dan H.:

Quote from @Terra Padgett:

Quote from @Dan H.:

Quote from @Terra Padgett:

Quote from @Eric James:

Is this based on some data regarding actual "millionaires" or is this just made up?

Also, what people do with wealth once they have it isn't necessarily how they made it to begin with 

No, it’s not made up. There has been research done on the topic and it’s just a common theme found from analyzing financial habits of wealthy individuals. 

Can you provide the source?  There are a lot of things that people believe is fact but are not.  In sports the belief that the more times you beat a team the better chance the other team has to win.  Statistically this is false even though it is believed by many people.  there are countless other samples.

I used to see on this site that investing for cash flow was king.  There were some of us that would point out that statistically that was not true.  Today the sentiment on this site is very different than 5 years ago.

Research from the IRS, the Census Bureau, and studies on self-made millionaires. 7 streams is more of a guideline or general rule per se rather than a strict hard rule for every single millionaire. The key takeaway being that diversifying income is a common trait.

 The census bureau nor irs collect or releases that type of info.  It is not in their responsibility.   I use census data regularly (on virtually every underwriting) and am fairly familiar with their website. 

I join the others that skeptical to your list unless you can provide a link to a half way reliable source showing the data.  You may be simply passing on info you have heard somewhere, but that is NOT a reliable source   

Both the IRS and the U.S. Census Bureau publish data on income sources and wealth distribution, but they don’t explicitly release reports stating, “Millionaires have seven income streams.” Instead, researchers analyze those datasets to draw these conclusions. You don’t have to agree or believe the trends. However many millionaires do, in fact, have multiple income streams. 
Thank You for your comments and thoughts! 

Quote from @Dionna Graham:

id invest in the deals that my colleagues are trying to sell lol some good stuff out there! 

Are you referring to the financially distressed multi family sellers?..

Quote from @Ron Ramsden:

Buy Land

Love land: Where would you buy it?

@Eric Gerakos 

I generate income from 6 out of the 7. Some deliver greater returns than others and carry a larger share of the load. However still multiple income sources. Again, not a hard and strict rule for every millionaire but certainly a common theme

Quote from @Alessandro Di Luciano:

To give a quick not thought through response...All things being equal (from effort to cash flow) Give me 20 properties. This gives me the ability to sell a single property should I need to free up some cash, also the diversification of location gives some freedom to exit a declining market.

what about you?

I’m torn with this one. I see pros and cons to both. Agree with your assessment with diversification and ability to exit. Also a spread of risk with properties likely being in different areas. But then a Multifamily would be way easier to manage at one location. You could also control and drive prices for the property with more doors in a single area and the valuation. One transaction, one loan, one tax bill, etc as opposed to multiples. But again, I’m torn as I see benefits and challenges with both so really I’m undecided on what I would definitively choose. 

Quote from @Dan H.:

Quote from @Terra Padgett:

Quote from @Eric James:

Is this based on some data regarding actual "millionaires" or is this just made up?

Also, what people do with wealth once they have it isn't necessarily how they made it to begin with 

No, it’s not made up. There has been research done on the topic and it’s just a common theme found from analyzing financial habits of wealthy individuals. 

Can you provide the source?  There are a lot of things that people believe is fact but are not.  In sports the belief that the more times you beat a team the better chance the other team has to win.  Statistically this is false even though it is believed by many people.  there are countless other samples.

I used to see on this site that investing for cash flow was king.  There were some of us that would point out that statistically that was not true.  Today the sentiment on this site is very different than 5 years ago.

Research from the IRS, the Census Bureau, and studies on self-made millionaires. 7 streams is more of a guideline or general rule per se rather than a strict hard rule for every single millionaire. The key takeaway being that diversifying income is a common trait.

Would you rather own 20 rental properties or invest in one 20 unit apartment? 🤔