In fact, I will be developing some top tier (very top tier) domain names for my friends dad who bought them back in the mid 90′s. Sort of a random connection, but I mentioned in passing that I’m sure I can make more money with them than his domain parking service and now that the income has dropped out he’s coming back to give me a try.

If you have a good idea you can also outsource the work to be done. To help keep costs down I try and do as much as I can without getting coding help but I always have to have one of my coders hop on and fix a few things. You’re in the opposite situation though so you could just say “I want the website to look like this, work like this etc. etc. here is money. Go do it.”

Many entrepreneurs would prefer to have more capital and less time, as they would have the opportunity to start hiring right away. Whether it’s web designers and SEO specialists, or just someone to analyze real estate deals for you, I would use the capital that you have to hire someone to do the heavy lifting and technical work for you.

Good point…I personally love that book. Although what Tim teaches is certainly more time intensive, building a passive income business.

Then in terms of capital gains there is leverage. Let’s say you bought a $10,000 worth of stock and it went up 10%. You’d make $1,000.

But with real estate you have leverage. $10,000 can get you a $100,000 house. So if the house went up in value just half that much, 5%, you’d get a 5% increase on the $100k not the $10k. So you’d make $5,000. Leverage and using other people’s money is key. Nobody will loan you or I money to buy stocks, but banks will lend you money all day to buy real estate.

Then look at the tax benefits. The deductions you get with real estate make the cash flow (12%) basically tax free. The interest you pay on the mortgage is all deductible, the depreciation, all repairs, etc. Your deductions far exceed your income from the property so it’s tax free income (not to mention 1031 exchanges, etc).

Then look at the risk. The stock market changes wildly from day to day with huge swings. In a worst case scenario you could lose half your portfolio in one day. It has happened to many people – worse if you are all in one stock like Enron. But look at real estate. Much less volatility. Even in the worst possible case (say a home in California you bought at the peak of the bubble) it might take a YEAR to lose half it’s value. Not a day. It’s much easier to see that train coming down the track and get out of the way whereas the stock market can blind side you.

Real Estate kicks the crap out of stocks. It’s not even close.

Good luck original poster!

If you want to step into my realm of taking a lot of risk for a lot of money, then I think that is a great idea for you because of two reasons.

1. You are young (24 years old)
2. You have a lot of income (120K/yearly)

If you can learn how to take some risk in the stock market (since you don’t have much time) you can really build something big. I usually trade and make about 10-30% a week on average.

With your type of income and that kind of percentage gain the stock market, you can be looking really nice in the next couple of years (maybe months).