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 Post subject: Another "get rich quick" or solid advice?
PostPosted: Wed Aug 08, 2012 1:24 pm 

Joined: Thu Aug 02, 2012 1:56 pm
Posts: 12
I read an article about making creative "risky investments" and buying assets to pay for your toys and luxury items. This reminds me of Kiyosaki and his Rich Dad Poor Dad non-realistic ideas (which he of course made millions selling books and seminars about).

What do you guys think this?

http://foreverjobless.com/how-to-buy-a-ferrari-for-20k/

I just think there are way too many flaws in this method. What about paying for costs of gas, insurance and maintenance for the ferrari? Even if the $2,000/M revenue from this investment covers the monthly payment for the car, you need at least another $1,000-$2,000 to cover the misc expenses.

Also it's easy for him to to say it's not risky because he is doing internet business. What about someone with no prior experience? Sounds like a great way to lose your money.


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 Post subject: Re: Another "get rich quick" or solid advice?
PostPosted: Wed Aug 08, 2012 2:21 pm 

Joined: Fri Sep 12, 2008 12:29 pm
Posts: 1627
Location: Seattle, WA
Get rich quick. Definitely.

First off, the deal was hypothetical. If you wade through long enough, he reveals that another buyer offered more for the business.

Second, the Ferrari buyer would be an idiot to sign up for a lease for the full amount of the income from that business. Unless he had a bunch of other, non-correlated income streams that he could cover the expense with.

Third, the Ferrari buyer is really sticking it to the other two. He puts up 20% of the capital and maybe 10% of the effort and gets 25% of the revenue, 1.25x his share if it was divided simply by capital invested. I am not sure who is getting screwed more - the silent partner who gets only 0.5x his share, or the author who gets only 1.2x his share (less than the Ferrari buyer) despite putting in 90% of the effort.

Finally, if they have regular access to deals like that, then why would he waste the money on a Ferrari lease? He would earn $20k profit in 10 months. He could invest those in another similar business opportunity, doubling his income. Then again after 14, 18, 21, 23, and 25 months. From then on he could buy such a business every month. Or, he could just save up the money for a year from that point, and buy himself a Ferrari for cash after three years total from today. Then he could retire and do nothing but drive it around all day if he wanted.

On the other hand, if they don't have regular access to deals like that... well, then blowing his wad on a Ferrari would be a pretty dumb move, wouldn't it.


Last edited by stannius on Wed Aug 08, 2012 5:01 pm, edited 2 times in total.

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 Post subject: Re: Another "get rich quick" or solid advice?
PostPosted: Wed Aug 08, 2012 4:00 pm 

Joined: Thu Dec 30, 2010 4:59 pm
Posts: 62
Location: San Diego, CA
Total garbage. I couldn't even stomach reading 1/3 of the article.


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 Post subject: Re: Another "get rich quick" or solid advice?
PostPosted: Thu Aug 09, 2012 6:42 am 

Joined: Tue Mar 11, 2008 12:19 pm
Posts: 1776
Location: Ottawa, Canada
Seems like the "secret sauce" is "find someone willing to sell a profitable business for an outrageously low multiple of 1.0 x net earnings."

That's great advice - any idea where I can find such chumps?

Classic get-rich tripe. The risk and effort are understated, and returns are overstated.


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 Post subject: Re: Another "get rich quick" or solid advice?
PostPosted: Thu Aug 09, 2012 8:18 pm 

Joined: Thu Aug 09, 2012 7:56 pm
Posts: 14
fortunecookie wrote:
I just think there are way too many flaws in this method. What about paying for costs of gas, insurance and maintenance for the ferrari? Even if the $2,000/M revenue from this investment covers the monthly payment for the car, you need at least another $1,000-$2,000 to cover the misc expenses.

Also it's easy for him to to say it's not risky because he is doing internet business. What about someone with no prior experience? Sounds like a great way to lose your money.


I wrote the post and saw there was a thread here about it.

I think you missed the point of the article. It was based on a person who had other money, not someone who only had $20k to their name.

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http://foreverjobless.com/


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 Post subject: Re: Another "get rich quick" or solid advice?
PostPosted: Thu Aug 09, 2012 8:21 pm 

Joined: Thu Aug 09, 2012 7:56 pm
Posts: 14
stannius wrote:
Second, the Ferrari buyer would be an idiot to sign up for a lease for the full amount of the income from that business. Unless he had a bunch of other, non-correlated income streams that he could cover the expense with.


He did. He bought a Ferrari for cash a few months later, with money from other businesses.

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 Post subject: Re: Another "get rich quick" or solid advice?
PostPosted: Thu Aug 09, 2012 8:22 pm 

Joined: Thu Aug 09, 2012 7:56 pm
Posts: 14
stannius wrote:
Third, the Ferrari buyer is really sticking it to the other two. He puts up 20% of the capital and maybe 10% of the effort and gets 25% of the revenue, 1.25x his share if it was divided simply by capital invested. I am not sure who is getting screwed more - the silent partner who gets only 0.5x his share, or the author who gets only 1.2x his share (less than the Ferrari buyer) despite putting in 90% of the effort.


knowledge = value. he got extra equity for the value he brought. money is only one form of value.

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 Post subject: Re: Another "get rich quick" or solid advice?
PostPosted: Thu Aug 09, 2012 8:24 pm 

Joined: Thu Aug 09, 2012 7:56 pm
Posts: 14
kombat wrote:
Seems like the "secret sauce" is "find someone willing to sell a profitable business for an outrageously low multiple of 1.0 x net earnings."


no

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 Post subject: Re: Another "get rich quick" or solid advice?
PostPosted: Fri Aug 10, 2012 4:44 am 

Joined: Tue Mar 11, 2008 12:19 pm
Posts: 1776
Location: Ottawa, Canada
Billy Murphy wrote:
kombat wrote:
Seems like the "secret sauce" is "find someone willing to sell a profitable business for an outrageously low multiple of 1.0 x net earnings."


no


Well, you got me there, can't argue with that logic. I concede the point.


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 Post subject: Re: Another "get rich quick" or solid advice?
PostPosted: Sun Aug 12, 2012 1:22 pm 

Joined: Thu Aug 09, 2012 7:56 pm
Posts: 14
kombat wrote:
Billy Murphy wrote:
kombat wrote:
Seems like the "secret sauce" is "find someone willing to sell a profitable business for an outrageously low multiple of 1.0 x net earnings."


no


Well, you got me there, can't argue with that logic. I concede the point.


When you don't understand something, instead of finding out more about it and asking questions, you immediately shoot it down. That's a lot about what the post was about. I talked about you in the post.

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 Post subject: Re: Another "get rich quick" or solid advice?
PostPosted: Sun Aug 12, 2012 3:23 pm 

Joined: Sat May 14, 2011 9:44 am
Posts: 139
He gave a quick readout of what he took from it. I would tend to guess the majority of the people around here (myself included) would agree with him after reading it.

You have yet to offer anything of substance here.... "no" doesn't say much. Please do enlighten us.


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 Post subject: Re: Another "get rich quick" or solid advice?
PostPosted: Sun Aug 12, 2012 5:14 pm 

Joined: Sun Aug 12, 2012 4:48 pm
Posts: 5
While I'm waiting for some laundry to finish, here's my question: how the heck do you buy a ferrari for $2000/month? The Ferrari California (which I think is the one pictured) runs $200,000 and up depending on options. Basic math says that'll take 100 months to pay back before interest. That's an 8+ year loan. Or you are getting into some sort of odd financing like a balloon loan (so you aren't actually getting the car for $2000/M once you factor in the balloon) or a lease (which of course means you aren't buying a car at all). And even the lease deals I was able to find say a $30,000 payment to start then $2000/month. At best, even if the rest of the story were true, which it clearly isn't, you would be renting a Ferrari for $50,000.

I'm also pretty sure that getting the money from the business to your pocket is heavily affected by taxes; that is, to have $2000/month to spend on a car, the business needs to be returning $2500 or more, depending on what your marginal tax rate is. You can't hide the car as a business expense and expect to survive an audit.


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 Post subject: Re: Another "get rich quick" or solid advice?
PostPosted: Sun Aug 12, 2012 6:11 pm 

Joined: Tue Mar 11, 2008 12:19 pm
Posts: 1776
Location: Ottawa, Canada
Billy Murphy wrote:
When you don't understand something, instead of finding out more about it and asking questions, you immediately shoot it down. That's a lot about what the post was about. I talked about you in the post.


No no, I understood it just fine. My comment was not about not understanding it. Quite the contrary - the key is perfectly clear, and my comment was accurate. The only reason the scenario worked was because it hinged on someone selling a profitable business for an unusually low price/earnings multiple. Such deals are nowhere near as easy to find as suggested in the article.


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 Post subject: Re: Another "get rich quick" or solid advice?
PostPosted: Sun Aug 12, 2012 9:12 pm 

Joined: Thu Aug 09, 2012 7:56 pm
Posts: 14
kombat wrote:
Billy Murphy wrote:
When you don't understand something, instead of finding out more about it and asking questions, you immediately shoot it down. That's a lot about what the post was about. I talked about you in the post.

Such deals are nowhere near as easy to find as suggested in the article.


yes they are, you're just not aware of them so you assume they are hard. that's kind of the point of the article. people like you assume things are "too good to be true", so you assume it's rare, and you just keep mindlessly grinding away saying, "that can't be done." guys like you are great examples as to why making a lot of money is easy, because it's non-competitive since so many people like you give up before you even try.

there's nothing wrong with not trying, that's fine. it's better for the people who want to make a lot of money. it's silly to state things you have no idea about thought just because you're too lazy to figure them out.

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 Post subject: Re: Another "get rich quick" or solid advice?
PostPosted: Sun Aug 12, 2012 11:16 pm 

Joined: Thu Dec 30, 2010 4:59 pm
Posts: 62
Location: San Diego, CA
Well lookie here, Billy is still here spreading his bs. What's wrong? Does this forum rank too high on the search engines for you to market your snake oil?

Let me look into my little crystal ball here and take a stab at predicting the future. By future I mean the future of Billy's site in question http://foreverjobless.com.

Here's exactly what's going to happen. 1st he's going to start writing a bunch of stories about how to get rich quick. He's going to throw out a bunch of statements that he can't back up and make it sound like he has some secret way to wealth that only HE knows. He's going to try to get YOU excited that with just a little investment YOU can have the good life with NO effort. He's going to play to your emotions. That's his schtick actually, playing on your emotions making you want his secrets.

This is phase 1. Get people excited.

Anyone with the sense to disagree with Billy is going to get flamed. He's going to attack you on an emotional level. a) You're not smart enough b) You'll never be rich c) You have questionable parentage d) anything to get under your skin.

Phase 2 is gather the sukkas. Eventually billy is going to start to talk about getting some great deal together that he's working on with some of his friends. This is going to follow the same pattern as his stories the only difference is this one is going to happen in the future. Since this is all BS anyway what he's really doing seeing if anything is exited enough to contact him about getting in on the deal. Obviously he's going to jerk them around saying how he can't really trust the sukka and that they will have to prove themselves.

Phase 3 is all about getting the money out of the super sukkas. In fact he's hoping these super sukkas will be so enamored with getting rich that they'll practically be begging billy to take their money. He'll have them sign some terrible contract and take their money and try to buy some marginally profitable blog, gambling site, or something like that. Whatever he does he'll strip all the value out of the asset and kill the possible future return. Leaving the super sukkas with all the liability and he'll just take whatever money he can get his hot little hands on.

Need more proof?

example from Billy's blog

Billy Murphy wrote:
K would be putting up $20k, and would bring in another $30k from his friend.

He would help advise on the site, but would not have to manage any of the day to day. His other friend wouldn’t have to do anything, he just wanted to be in on the deal. I would put $50k in and be in charge of it. Because of what people were bringing to the table, here is what we agreed on:

K: 25%
Friend: 15%
Me: 60%


1st there is no K.
2nd billy wants the friend to be YOU
3rd Billy isn't going to put up anything.

How does this work. Well you're just on of many sukkas. If billy finds 3-4 sukkas willing to put up 30% of the money for a 15% cut where does that other 50% of their money go? Answer: Billy's share.

..add more bs here..

So there you have it ladies and gentlemen. Billy has been exposed as the scam artist he really is. The beauty of it is he has been exposed in the same form and style of his own blog 1) devoid of facts 2) terrible grammar 3) full of logical fallacies.

20k ferrari my ante!


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