If you had $100,000 to start your own business, what would you do and why?

[Barca]

good luck with that :thumb: your cynicism barely equates to the realism surrounding you, thus you happily live in your disconnect.

LOL!

Says the guy who made money in a bull real estate market. Newflash. Everybody makes money in a real estate bull market. Even those who aren't trying. But there never are any bear markets in real estate right? Riiiiight.

You remind me of the guys who think themselves geniuses for making money during the tech bubble and then wonder what went wrong when their portfolios went bust. I am sure their "realism" was fun. Make money in a bear real estate market and then come talk to me. Unless you're willing to argue there never are any bear real estate periods?

Smart money is already exiting real estate in Canada while the little guys like you are left holding the bag. Go ahead and double up, leverage yourself to the tits in real estate and we'll see what happens.

Disclaimer: I made money in real estate in Canada and have already exited my various investments and positions. I am now in the US and Europe. Cap rates in Canada are ridiculous. There is no value and making money in real estate is all about picking up undervalued holdings. That is almost impossible in Toronto right now.

 

[MissCroft]

It does require some maintenance. People like going to clean Laundromats. Machines have to be maintained. Supplies need refilling. But I know one guy who has a day job and at night tends to his shops. Makes a killing.

You can hire a cleaner or clean yourself at night. And hopefully be able to do most repairs/machine maintenance on your own. I've actually given it serious thought. Location is crucial.

 

[Barca]

You can hire a cleaner or clean yourself at night. And hopefully be able to do most repairs/machine maintenance on your own. I've actually given it serious thought. Location is crucial.

That's where a proper business plan comes into place though. Sure you can hire a cleaner but that makes the business plan less profitable. Unless you have multiple sites, this is one of those hands on types of businesses. In fact most small businesses are. Outsourcing and subcontracting only provides value for businesses with scale.

 

[Mr Bret]

US real estate.
Your 100k start up will go much further than here and you can manage everything remotely through a good property manager.

 

[|2 /-\ | /|/]

This truly is a pathetic response.

I don't care how much money you have and what kind of sucess you have as this is a personal response...check OPs first post and what he asked. I have provided an opinion and an example of which condo is good to invest in and how it worked out for me in the past and all you provided is worthless words and personal attacks that mean nothing or contribute little value to OPs original question or this thread.

The condo market has worked out well for me , the little guys, lol, and this is all that matters and I know how to make it work in the future for me. Hey its enough to live a simple life and have some hobby funds on the side which is enough for me. Simple as day, I don't need lots of money to feel content...

Seriously little guys, labelling, making accusations and resorting to throwing monkey poop becuase somebody has a difference of opinion, trully pathetic and low.

Get off your high hoarse and smell the realism of the fecies your walking in but can't see it.

LOL!

Says the guy who made money in a bull real estate market. Newflash. Everybody makes money in a real estate bull market. Even those who aren't trying. But there never are any bear markets in real estate right? Riiiiight.

You remind me of the guys who think themselves geniuses for making money during the tech bubble and then wonder what went wrong when their portfolios went bust. I am sure their "realism" was fun. Make money in a bear real estate market and then come talk to me. Unless you're willing to argue there never are any bear real estate periods?

Smart money is already exiting real estate in Canada while the little guys like you are left holding the bag. Go ahead and double up, leverage yourself to the tits in real estate and we'll see what happens.

Disclaimer: I made money in real estate in Canada and have already exited my various investments and positions. I am now in the US and Europe. Cap rates in Canada are ridiculous. There is no value and making money in real estate is all about picking up undervalued holdings. That is almost impossible in Toronto right now.

 

[Dickus]

I would start a cell phone company.

 

[Barca]

This truly is a pathetic response.

I don't care how much money you have and what kind of sucess you have as this is a personal response...check OPs first post and what he asked. I have provided an opinion and an example of which condo is good to invest in and how it worked out for me in the past and all you provided is worthless words and personal attacks that mean nothing or contribute little value to OPs original question or this thread.

The condo market has worked out well for me , the little guys, lol, and this is all that matters and I know how to make it work in the future for me. Hey its enough to live a simple life and have some hobby funds on the side which is enough for me. Simple as day, I don't need lots of money to feel content...

Seriously little guys, labelling, making accusations and resorting to throwing monkey poop becuase somebody has a difference of opinion, trully pathetic and low.

Get off your high hoarse and smell the realism of the fecies your walking in but can't see it.

I don't know what "fecies" is so I probably won't know if I ever step in it. Maybe it's something dropped by this "hoarse" in the "realism" that I live in. Jesus, if you're trying to sound smart, it helps if you spell correctly and use proper words. What the hell does "realism" mean exactly???

Anyway, on to the real point, You are making the classic mistake of taking past results as an indicator of future performance and then get bent out of shape when the fallacy is pointed out. I assume when people post asking for advice they're actually looking for good advice. As such, whenever bad advice is posted, I feel no qualms about pointing out the gaping holes.

You made some money in this current bull run of real estate. I believe you. Like I said, it didn't take a genius to make money in it. The only ones that didn't were the ones too poor to buy real estate in the last 10-15 years. Otherwise, pretty much everyone else did. But much like every other asset class that people invest in, the real test to see whether someone knows what they are doing is when the easy money isn't there anymore and not everything is turning to gold. Does your investment thesis hold up in a bear market? I think the opposite. While your strategy may hold up in a rising or stable market price environment, you tell me, how does it hold up in a bear market? Yeah, people have been calling for it for a while, it doesn't make it any less likely that it will eventually happen. In fact, it actually raises the likelihood it will. So throw some numbers at me. What happens if condo prices correct 5, 10 or 20%? They did exactly that in the 90s (actually they went down even more) and it took over a decade for condo prices to recover. In the meantime, what was once leveraged to the limit is now over leveraged. What do you do then? And isn't it better to look at better and more undervalued opportunities, even while still in the real estate space? Does that not make more sense?

Pathetic is being taught something and refusing to learn. By refusing the advice of someone even you have deemed to be successful for the sake of your limited experience is what shows the real hubris.

 

[GPIDEAL]

It's a ton of work though and there is so much competition out there. Except in Toronto where food trucks have lagged behind other major urban centres in NA.

The voice of reason.

 

[GPIDEAL]

Obviously detached homes are a way to go. However, not everybody can afford this in the prime GTA areas.

Condo market is still going strong...http://m.theglobeandmail.com/report...booming-again/article23239275/?service=mobile

During the recent economic down turn and 2008-2009 recession my condo still went up. What is needed? Well you need to be smart, have a good team to support you (lawyer, lender, agent), you need to understand your risk and have a contingency plan if it goes bad and you have to know where to buy. I would stay away from downtown core or lakeshore areas.

Here is an example of where I would buy right now and I know its a full proof investment, credible builder and prices are good value for the area and package you are getting..http://www.tridel.com/communities/islington-terrace-condos/ Honestly, if you had 100k I would invest in this place in a heart beat.

I don't live far from there but didn't notice this new development. I always thought it was saturated with older apartment buildings. (Have they started building?)

 

[GPIDEAL]

Or a Laundromat. I knew a married couple who opened one. You don't even have to hire employees and fairly low maintenance.

There's a coin-op car wash and laundromat facility not far from where I live. The owner must make a killing for this stand-alone, dual purpose development. One thing is security, but with the cost of surveillance cameras, etc. being lower, it is doable. However, the cost of hydro might be high, not including rent.

 

[GPIDEAL]

$100K isn't much so you're limited on what you can do. Most start ups need $1M or more of seed capital.

I'd try to do something healthcare related. Perhaps a store that sells sleep therapy products - so many people out there have sleep apnea (diagnosed/undiagnosed) and there are relatively few stores out there supplying them. Plus they charge an arm and a leg. You can get products in the US that are up to 50% cheaper than here.

Well said again.

Right now, I'm having a relapse of back pain. Need to do all those core exercises again. Also, need newer lumbar supports for my chairs and car seat. I can only think of the SDM specialty store at Six Points Plaza or a CBI Physiotherapy Clinic that sell good ones too, so not many places around. Sure, drug stores sell some product, but not the range that specialty stores have, which are few and far between.

So a healthcare store like you say is probably a good idea.

 

[|2 /-\ | /|/]

Again, your are not learning and just throwing sand, making dust and little insults here and there, although this time you sound a bit more reasonable.

You say give us numbers, and I have given numbers and very fine specifics and examples. If you think you can do better then give your concrete example of how and where you would invest this $100k, what is the length of time, and what is your return ect... Very simple question.

Here are my numbers. $44k downpayment over 5 years and I got $120k back after sale of condo and paying the mortgage break fee. In this scenario I also ended up paying mortgage, tax, lawyer fees etc...but also covered my need for living. So it is not really $120, but in addition to this I covered down my principal and pumped a bunch of money for downpayment to make my mortgage payment low as possible. This was done during the worst time to invest which was the 2008-2009 recession. With that tridel condo on Islington I would expect similar results and have a contingency to rent it out to students if I am not happy with price I would get until the mortgage is fully paid off. I make sure that my mortgage payments + taxes and what I could get for rent would be very close. I would also have a contingency set asside in the event something goes wrong.

BTW this condo fear mongering, talks about the bare market, condo, especially the 90s bust bust ect. ect. I have been hearing since 2002. Looks like you have a great quality to regurgitate the condo fear mongering that has been going on for over a decade now. IMO there are still good deals out there to invest in, you need to where to look for them.

So give us your scenario with numbers and contribute some value to this dscussion.

I don't know what "fecies" is so I probably won't know if I ever step in it. Maybe it's something dropped by this "hoarse" in the "realism" that I live in. Jesus, if you're trying to sound smart, it helps if you spell correctly and use proper words. What the hell does "realism" mean exactly???

Anyway, on to the real point, You are making the classic mistake of taking past results as an indicator of future performance and then get bent out of shape when the fallacy is pointed out. I assume when people post asking for advice they're actually looking for good advice. As such, whenever bad advice is posted, I feel no qualms about pointing out the gaping holes.

You made some money in this current bull run of real estate. I believe you. Like I said, it didn't take a genius to make money in it. The only ones that didn't were the ones too poor to buy real estate in the last 10-15 years. Otherwise, pretty much everyone else did. But much like every other asset class that people invest in, the real test to see whether someone knows what they are doing is when the easy money isn't there anymore and not everything is turning to gold. Does your investment thesis hold up in a bear market? I think the opposite. While your strategy may hold up in a rising or stable market price environment, you tell me, how does it hold up in a bear market? Yeah, people have been calling for it for a while, it doesn't make it any less likely that it will eventually happen. In fact, it actually raises the likelihood it will. So throw some numbers at me. What happens if condo prices correct 5, 10 or 20%? They did exactly that in the 90s (actually they went down even more) and it took over a decade for condo prices to recover. In the meantime, what was once leveraged to the limit is now over leveraged. What do you do then? And isn't it better to look at better and more undervalued opportunities, even while still in the real estate space? Does that not make more sense?

Pathetic is being taught something and refusing to learn. By refusing the advice of someone even you have deemed to be successful for the sake of your limited experience is what shows the real hubris.

 

[|2 /-\ | /|/]

Not sure as I don't live there anymore. Resale condo prices are very good in this area. I know the buildings your are referring to but it won't affect condo value since your are so close to the subway station and in a good area. Just NE of there and you are getting into $1M+ houses. I lived very close to there and had no issues with the people or the area.

I don't live far from there but didn't notice this new development. I always thought it was saturated with older apartment buildings. (Have they started building?)

 

[|2 /-\ | /|/]

Unless they are into money laundering.

The voice of reason.
Originally Posted by K Douglas
It's a ton of work though and there is so much competition out there. Except in Toronto where food trucks have lagged behind other major urban centres in NA.
The voice of reason.

 

[JackBurton]

I'd like to change my answer: I'd say fuck it to North America and the cold, open up a surfboard and bike rental place in Costa Rica and put most of the $ down on a house there and live by the beach. Less worries, no stress and lots of beer. Fuck the rat race, best to just get your life into a manageable order and enjoy it and the hot yoga girls that show up in Costa Rica looking for healing after their break up with some douche back home. Like this guy: http://www.thefrogpad.com. A surf rental, Internet cafe, library and DVD rental shop. Dude has life figured out

 

[Barca]

Again, your are not learning and just throwing sand, making dust and little insults here and there, although this time you sound a bit more reasonable.

Learned what? You haven't informed anyone of anything new. In order to learn someone has to teach something of value.

You say give us numbers, and I have given numbers and very fine specifics and examples. If you think you can do better then give your concrete example of how and where you would invest this $100k, what is the length of time, and what is your return ect... Very simple question.

A basic reading of my post clearly asks for numbers going forward not past results which is exactly my point. A good investment thesis looks at all possible outcomes. Yours only looks at the past and assumes similar results going forward. Any year 1 student knows that's foolish.

BTW this condo fear mongering, talks about the bare market, condo, especially the 90s bust bust ect. ect. I have been hearing since 2002. Looks like you have a great quality to regurgitate the condo fear mongering that has been going on for over a decade now. IMO there are still good deals out there to invest in, you need to where to look for them.

So give us your scenario with numbers and contribute some value to this dscussion.

I don't recall hearing anything in 2002 so perhaps your problem is lumping all naysayers into the same camp, the ones using fundamental analysis with the ones who just have "gut feelings". I can only shake my head at that.

The REALITY (not realism) is that only in the last 5 years (and mostly in the last 3) has every major Canadian and Global institution taken this position and raised alarms at the level of debt and the unsustainability of the rate of growth of prices, and a great majority have raised the possibility of a price correction at some point. That kind of consensus is rare. This directly addresses the problem with your own investment outlook. The truth is your past experience is so unlikely to be able to be repeated, I'd risk calling it impossible and you'd have to be willfully blind to the risks unless you know better than the Canadian banks who lend into the market or CMHC that insures mortgages or the IMF or Deutsche Bank or the freaking Federal government!

You sound exactly like the real estate bulls of the US market pre 2008 who were just as critical of bear analysts. And it took a while for it to happen there too but the correction eventually came. There is no getting around the economic realities of basic supply and demand. With conditions deteriorating in Canada bordering on a possible recession if oil prices stay low and the spectre of raising interest rates at some point with Canadian debt at record levels, the conditions for another 90s style correction are beginning to emerge and yet you're willfully putting your head in the sand because you made $80k on a condo once (which isn't even accurate since like many who post their real estate "gains" you've minimized your costs making it far less impressive.)

Until people have an honest discussion on real estate, an entire generation of investors is going to get burned again.

Those who cannot remember the past are condemned to repeat it. - George Santayana

 

[|2 /-\ | /|/]

Like I said you have nothing concrete to offer...just trying to sound big and bring me down...lol...until you can back it up and give us an example of what you will do with your $100k and how this will bring you a higher return then my condo investment example then we will talk. Until then, you are just trolling and not contributing useful information to OPs original request.

Trully pathetic that you can't back up your big macho statements with a concrete example.

All talk and no substance!

Learned what? You haven't informed anyone of anything new. In order to learn someone has to teach something of value.



A basic reading of my post clearly asks for numbers going forward not past results which is exactly my point. A good investment thesis looks at all possible outcomes. Yours only looks at the past and assumes similar results going forward. Any year 1 student knows that's foolish.



I don't recall hearing anything in 2002 so perhaps your problem is lumping all naysayers into the same camp, the ones using fundamental analysis with the ones who just have "gut feelings". I can only shake my head at that.

The REALITY (not realism) is that only in the last 5 years (and mostly in the last 3) has every major Canadian and Global institution taken this position and raised alarms at the level of debt and the unsustainability of the rate of growth of prices, and a great majority have raised the possibility of a price correction at some point. That kind of consensus is rare. This directly addresses the problem with your own investment outlook. The truth is your past experience is so unlikely to be able to be repeated, I'd risk calling it impossible and you'd have to be willfully blind to the risks unless you know better than the Canadian banks who lend into the market or CMHC that insures mortgages or the IMF or Deutsche Bank or the freaking Federal government!

You sound exactly like the real estate bulls of the US market pre 2008 who were just as critical of bear analysts. And it took a while for it to happen there too but the correction eventually came. There is no getting around the economic realities of basic supply and demand. With conditions deteriorating in Canada bordering on a possible recession if oil prices stay low and the spectre of raising interest rates at some point with Canadian debt at record levels, the conditions for another 90s style correction are beginning to emerge and yet you're willfully putting your head in the sand because you made $80k on a condo once (which isn't even accurate since like many who post their real estate "gains" you've minimized your costs making it far less impressive.)

Until people have an honest discussion on real estate, an entire generation of investors is going to get burned again.

Those who cannot remember the past are condemned to repeat it. - George Santayana

 

[Barca]

Like I said you have nothing concrete to offer...just trying to sound big and bring me down...lol...until you can back it up and give us an example of what you will do with your $100k and how this will bring you a higher return then my condo investment example then we will talk. Until then, you are just trolling and not contributing useful information to OPs original request.

Trully pathetic that you can't back up your big macho statements with a concrete example.

All talk and no substance!

There's plenty of substance in my posts you have merely chosen to ignore them. Your choice. You just don't like that I called your plan dumb. Fair enough. I can see why you'd be offended. Doesn't make the plan any less dumb.

As for suggestions on what business to start, that's where you fail to realize the foolishness of trying to advise someone on the Internet where to spend their money on a business venture. Investments and business building are an extremely personal thing where one persons plan will massively differ from another's and both could be successful or not. My role now is to analyze and invest in private equity opportunities. These are before they go public in IPOs where the true art of building an emerging business needs careful attention. I know enough to know I don't know enough about the OP to be able to recommend one solution over another or any for that matter. Either could be viable or none could be. What is required is critical thinking and proper business planning, neither of which you have chosen to do with your investment recommendation. What is happening in this thread is like a person looking for medical advice online. It's good conversation but the reality is nothing here is actually useful.

Do with that what you will.

 

[doggystyle99]

Looking to hear your ideas about starting your own business.

Having my own company and being asked this question often how to invest in a business and how to make it a successful one more often than I can count.
The best advice I can give anyone starting their own business is to invest in a business that they love and have a real interest in. Also have the expectation and the ability to not take any money out of your business for the first 2-3 years as that is when you need to invest in your business and make it grow.
I started my company with $70k cash and within 2 years of starting my company my revenue was just north of $600k. The reason why it was so successful is because I have a true passion for what I do and I had a vision that I followed. Many of my friends and family thought and some still think my initial investment was a lot higher and are very shocked when I tell them how much it was.

So do something that you have a true passion for and surely it will be successful, it might not be within 2 years like my company but in time it will, as long as you set realistic goals and have a vision on how to achieve it. They say any business you start up you should not expect to make money for the first 3 years which is quite true for the majority of businesses.

Good luck

 

[|2 /-\ | /|/]

I am not taking your troll bait. You are being disrespectful and immature resulting to name calling and insults. When asked to back up your statements with numbers you have chosen to run and can not provide anything concrete and keep sticking to trolling this thread off its intended course. It was intended to be a fun thred. Nobody thought that OP wanted actual expert advice, it is just PERSONAL OPINION he was after.

Fact is that many people in the GTA are making great investments through condos and still the market is strong and I have friends who are in this business and have done quite well for themself. Surely all these people can't be that dumb.

I have no more interest to what you have to say, or going back and forth with you on this.

There's plenty of substance in my posts you have merely chosen to ignore them. Your choice. You just don't like that I called your plan dumb. Fair enough. I can see why you'd be offended. Doesn't make the plan any less dumb.

As for suggestions on what business to start, that's where you fail to realize the foolishness of trying to advise someone on the Internet where to spend their money on a business venture. Investments and business building are an extremely personal thing where one persons plan will massively differ from another's and both could be successful or not. My role now is to analyze and invest in private equity opportunities. These are before they go public in IPOs where the true art of building an emerging business needs careful attention. I know enough to know I don't know enough about the OP to be able to recommend one solution over another or any for that matter. Either could be viable or none could be. What is required is critical thinking and proper business planning, neither of which you have chosen to do with your investment recommendation. What is happening in this thread is like a person looking for medical advice online. It's good conversation but the reality is nothing here is actually useful.

Do with that what you will.