Need your guys input on a business decision

ok so I'm posing this question on here because you all are gym rats and thats the people I'm interested in opinions from

so , as most of you know I own a gym. its a pretty sweet little facility (6000 sq ft is all) with some good equipment (all the bodybuilding stuff you'd ever need, plus olympic lifting platforms, multiple deadlift platforms, multiple rack and squat stations, chains, bands, specialty bars, belted squat machines, I've got a dedicated closed off room just for powerlifting.. etc. etc..). I've got about 740+ members or so. its also a 24 hour 'private' facility (doors are locked 24/7 but members have key card access 24/7).

now this is the decision I'm looking to make

the space right next door to me is vacant and up for lease .. its about 2800 sq ft. it was set up as a physical therapy clinic. it has your basic receptionist area, office, 2 private treatment rooms (like a doctor office) and then a big open space where they had equipment.
the walls of this space back right up to the walls of my front office in my gym. so can cut a door in easy.

anyhow.. I'm thinking of obtaining this space. as a bit of a gym expansion, but not quite. thinking of turning it into my personal training studio and making it a 'sports performance center' . instead of training clients in the main gym, I will mainly train them in this more private setting (don't worry , I'll load this bitch up with awesome equipment , probably all Rogue racks and platforms etc.).

I will also then rent out the two medical rooms to local aspiring Chiropractors, sports massage people, ART therapy people, etc.. they will pay to rent 'time' in my facility and use the private medical rooms and tables and book with their own clients..plus I can refer gym member and clients to them (they can build their business working with me and in my facility)

now keep in mind, I train more then just bodybuilders and do contest prep . I have football players, soccer players, etc. and just general athletes.

NOW this is the catch. I can't just offer this entire sports performance facility and training as an expansion of my gym. it has to be its own thing (financially speaking).
so right now to be a member at my gym cost $45 per month.

now I'm thinking with the training studio expansion I build. thats just going to be for clients ONLY. you join the sports performance center for the whole purpose of being trained and having a private studio to train in (plus get free access to my main gym).

so people that sign up are signing up for the facility itself , plus included is some personal training , and I over see their complete programing and diet . so its not like a standard gym membership. if your an athlete for example, you sign up and get access to everything 24/7, but you automatically get me as your strength coach to over see your whole program and train you.
obviously it wouldn't include unlimited training (I can't do that on top of all my online coaching). but lets say a base price, for example, is 180$ per month. you have access to my top of the line private training facility, plus my gym , plus get coaching and training services along with that.

so guess my question is .. do you guys think people will pay to be members of a private training studio (yes I know, most of you guys are gym rats and do your own training, but you'll be surprised how many people rely on coaching and training just for basic shit)
??

what do you all think


note- for you business minded people . keep in mind I live in a very upper class area and your average car is a Mercedes, Tesla or Range Rover, and there are 2 country clubs and 3 golf courses in the area, and a lot of the houses around here are 7000-12,000 sq ft luxury homes..
so theres lots of $ . I'm not trying to provide a premier service in a low income area.. having said that there are some very cheap ass old people that are rich around here that complain about 45$ gym memberships lol

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Originally Posted by GearHeaded

ok so I'm posing this question on here because you all are gym rats and thats the people I'm interested in opinions from

so , as most of you know I own a gym. its a pretty sweet little facility (6000 sq ft is all) with some good equipment (all the bodybuilding stuff you'd ever need, plus olympic lifting platforms, multiple deadlift platforms, multiple rack and squat stations, chains, bands, specialty bars, belted squat machines, I've got a dedicated closed off room just for powerlifting.. etc. etc..). I've got about 740+ members or so. its also a 24 hour 'private' facility (doors are locked 24/7 but members have key card access 24/7).

now this is the decision I'm looking to make

the space right next door to me is vacant and up for lease .. its about 2800 sq ft. it was set up as a physical therapy clinic. it has your basic receptionist area, office, 2 private treatment rooms (like a doctor office) and then a big open space where they had equipment.
the walls of this space back right up to the walls of my front office in my gym. so can cut a door in easy.

anyhow.. I'm thinking of obtaining this space. as a bit of a gym expansion, but not quite. thinking of turning it into my personal training studio and making it a 'sports performance center' . instead of training clients in the main gym, I will mainly train them in this more private setting (don't worry , I'll load this bitch up with awesome equipment , probably all Rogue racks and platforms etc.).

I will also then rent out the two medical rooms to local aspiring Chiropractors, sports massage people, ART therapy people, etc.. they will pay to rent 'time' in my facility and use the private medical rooms and tables and book with their own clients..plus I can refer gym member and clients to them (they can build their business working with me and in my facility)

now keep in mind, I train more then just bodybuilders and do contest prep . I have football players, soccer players, etc. and just general athletes.

NOW this is the catch. I can't just offer this entire sports performance facility and training as an expansion of my gym. it has to be its own thing (financially speaking).
so right now to be a member at my gym cost $45 per month.

now I'm thinking with the training studio expansion I build. thats just going to be for clients ONLY. you join the sports performance center for the whole purpose of being trained and having a private studio to train in (plus get free access to my main gym).

so people that sign up are signing up for the facility itself , plus included is some personal training , and I over see their complete programing and diet . so its not like a standard gym membership. if your an athlete for example, you sign up and get access to everything 24/7, but you automatically get me as your strength coach to over see your whole program and train you.
obviously it wouldn't include unlimited training (I can't do that on top of all my online coaching). but lets say a base price, for example, is 180$ per month. you have access to my top of the line private training facility, plus my gym , plus get coaching and training services along with that.

so guess my question is .. do you guys think people will pay to be members of a private training studio (yes I know, most of you guys are gym rats and do your own training, but you'll be surprised how many people rely on coaching and training just for basic shit)
??

what do you all think


note- for you business minded people . keep in mind I live in a very upper class area and your average car is a Mercedes, Tesla or Range Rover, and there are 2 country clubs and 3 golf courses in the area, and a lot of the houses around here are 7000-12,000 sq ft luxury homes..
so theres lots of $ . I'm not trying to provide a premier service in a low income area.. having said that there are some very cheap ass old people that are rich around here that complain about 45$ gym memberships lol

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What is the demographic?

What do you think is the most moneymakinhg demographic and how do you appeal to them?

Without a doubt in my mind the single most moneymaking demographic is the lazy that want to do better and get a membership then come five time and never come back.

Planet fitness exploited that demographic to its fullest.

Serious people cant lift there.
The ones that look good are scorned because its a lazy fuck zone of never returns, eating pizza and donuts peddling a bike.

The motivated and newer are the ones you would be training mostly in my opinion so you would be getting desperate housewives in yoga pants and teen/college kids mostly.

Reaching the kids is easy.
You make them fill out an application as this is not an all are allowed place ;)

The desperate housewives want to catch you looking at their ass and they will keep returning.

The rest is people that know when they see someone who knows what they are doing like you.
You give them a path and they will give you results. **and they will love you for it**

That type is rare though.
Most arent as serious as us.

I think it would be a wise investment if you can sell it to each demographic and dont leave a hired dumbass to sell new memberships.

You gotta work them and keep them returning by playing on their desires. A hired guy cannot do that. If you find one that can better hold on to them.

Seems shitty but this is how I look at business.
I win a lot of contracts I get outbid on because they trust me to do the best at first impression.

Its not accidental, I put that face on because I already know their desires and fears before they sign.

:evil2:

What you have to ask yourself is will the lease be worth the increase income. Have you done the math to see how far ahead you will be financially and how long it will take to pay back the investment?

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Originally Posted by Bio-Active

What you have to ask yourself is will the lease be worth the increase income. Have you done the math to see how far ahead you will be financially and how long it will take to pay back the investment?

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it'll only take about 18 clients/members to cover the lease payment. it sounds easy enough to get just 18 members (heck my gym has 700s). but still, your right the math has to make sense .

the initial investment in loading it up with bad ass equipment will likely cost me 20K or so

I would pay a lot more to be trained by you btw.

I think just making it a private facility that costs more will make upper class want to sign up there anyway just because it is more expensive.

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Originally Posted by GearHeaded

it'll only take about 18 clients/members to cover the lease payment. it sounds easy enough to get just 18 members (heck my gym has 700s). but still, your right the math has to make sense .

the initial investment in loading it up with bad ass equipment will likely cost me 20K or so

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I would do the math and see how long it will take for you to get the return on your investment. Your clearly passionate enough that if it pans out you know you will be happy. Also look at if you can afford the initial investment. If you don’t have to borrow then your business can pay you back with interest

just to put it in perspective . the only competing gym near me is a anytime fitness (thats a franchise) . the owner of that gym signed up to become a member of my gym because I have bad ass equipment he wanted to use..

Attachment 177121
I spent 5k for a belt squat . just cause I have to have bad ass shit. its just how I do things

That’s a nice piece of equipment. The only thing I like about anytime fitness is you don’t have to worry about the gym hours. There is something to be said about being able to train whenever you want. However you have to make it work based on the limited equipment. It’s not a place I could train daily

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Originally Posted by GearHeaded

just to put it in perspective . the only competing gym near me is a anytime fitness (thats a franchise) . the owner of that gym signed up to become a member of my gym because I have bad ass equipment he wanted to use..

Attachment 177121
I spent 5k for a belt squat . just cause I have to have bad ass shit. its just how I do things

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Lol I use anytime.
Its like planet fitness without the judgement free crap.
Super clean.
Thats funny though.
You are dead on with their membership fees in my area at 48 per month

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Originally Posted by Bio-Active

That’s a nice piece of equipment. The only thing I like about anytime fitness is you don’t have to worry about the gym hours. There is something to be said about being able to train whenever you want. However you have to make it work based on the limited equipment. It’s not a place I could train daily

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exactly why my gym is also 24 hours .. only where around here can you load up 600 pounds on a competition certified bench press, with 100 pounds of chains and 100 pounds of band tension,, plus add eccentric lifting hooks on top of that :)
I've got a 24 hour gym model with a full power lifting center with all the bells and whistles.

not going to find that too often . but also why I have a top of the line video monitoring system, software systems to monitor everyone that comes and goes,, direct line (safety switch) button connected to 911 (just push the big button on the wall)..

not many places you can bodybuilding, olympic lift, and train for a powerlifting meet at 3am..

the private facility I build next door will be similar set up , only way more exclusive and for clients of mine only .

idk.. kicking idea around . if I had enough bank I'd just build my own building. but thats costly. the 1 acre lot next to me is for sell, for $530,000.. fuck that. heck I'd have to had another half mill or more on top of that to build a basic building .
so leasing is all I got right now. and this space is right next to me

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Originally Posted by GearHeaded

exactly why my gym is also 24 hours .. only where around here can you load up 600 pounds on a competition certified bench press, with 100 pounds of chains and 100 pounds of band tension,, plus add eccentric lifting hooks on top of that :)
I've got a 24 hour gym model with a full power lifting center with all the bells and whistles.

not going to find that too often . but also why I have a top of the line video monitoring system, software systems to monitor everyone that comes and goes,, direct line (safety switch) button connected to 911 (just push the big button on the wall)..

not many places you can bodybuilding, olympic lift, and train for a powerlifting meet at 3am..

the private facility I build next door will be similar set up , only way more exclusive and for clients of mine only .

idk.. kicking idea around . if I had enough bank I'd just build my own building. but thats costly. the 1 acre lot next to me is for sell, for $530,000.. fuck that. heck I'd have to had another half mill or more on top of that to build a basic building .
so leasing is all I got right now. and this space is right next to me

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Trust me man lease is the way to go. Even big companies that buy the property usually renovate it then sell the property and lease it. Most say why? Because if big competition comes in and crushed the volume of your business you can finish your lease and either walk away or relocate the business. If you own it then you are stuck there making the payment till you sell or go under

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Originally Posted by Obs

What is the demographic?


The desperate housewives want to catch you looking at their ass and they will keep returning.

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this sounds the most promising thus far :) if yoga pants are involved, I can definitely make this work

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Originally Posted by GearHeaded

this sounds the most promising thus far :) if yoga pants are involved, I can definitely make this work

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Serious question...
Does your gym have a trainer leading a bunch of slightly overweight 25-40 year old women over a circuit?

I figured women in that demographic were the most common.

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Originally Posted by Obs

Serious question...
Does your gym have a trainer leading a bunch of slightly overweight 25-40 year old women over a circuit?

I figured women in that demographic were the most common.

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nope.. but have been hired a ton from such demographic. which I usually consult with, do their diet, do an initial training program for to get started.. then have my wife finish off the actual in person training sessions and I just over see things . but there are plenty of rich soccer moms driving their Range Rover and Mercedes around here while wearing yoga pants

Better yet... What is the most common age, sex, and life position?

In my gym it is that group.
There is always ten replacements for ever one of them that doesnt return.

The rest is scattered men of all ages and life positions. Middle aged guy in a shit car older guy that owns his business, cops, young guys skinny and fat.

There is at least 18 in my gym that would pay more for training if they could because it was someone that knew what they were doing.
The trainers we have are all kids that look... meh, maybe they lift, who knows...

The females that lead the groups of females are in better shape.

They both look like ponies from the back from 5 billion squats and leg raises.

The group you would be appealing to are tge ones that want the best and that will pay for it.

Most guys are too hard headed to want a trainer from what I have seen. So the guys you would get would be the real deal. I would solicit them.

Most women at my gym are doing group training that is cheap and a joke quite frankly. They wont be there long enough to accomplish much and probably wouldnt pay more but rather dont want to look stupid and honestly have no clue how to build a routine.

I think you are the perfect guy to make an elite section.
You build your programs person specific rather than bullshit cookie cutter.

Surely you can find 50 serious people in an upscale place.

My gym is incredibly big for an anytime.
We dont have as big of a rich demographic as your area though.
Sorry to sound shitty but rich are more motivated on average and finish shit they start. Middle class are usually motivated for a bit and drop it.

Sounds to me like you probably are right on track for success in you area with elite one on one training for bigger bucks.

Here are my 2c on this. As I ventured into the fitness space about 4-years ago to try something new (I'm a computer engineer) we defined exactly what it is that we wanted to do. We wanted to a) provide PT service at a much higher quality that what was currently available, b) Allow users of that service to easily track their progress in a measurable way, c) Provide a solution that allowed users to show up in their work clothes and we provided everything, gym clothes, water bottle, towel and so on. We decided to provide a premium service at a premium price based on the assumption that if you gives users a high quality product they will pay for it. It worked. Instead of basing our pricing on how rich people were or any of those factors we simply assumed that provided the right product people would pay for it and they did. We ended up charging people ~$200/month (Reminder that this is in India) for three 60-minute sessions/week.

My point here is that providing a service people really want is much more important than basing it on what one think people can afford to pay for it. Even people with less money can many times choose to pay for a premium service as that is what they chose to spend their money on.

My 2c, not sure it is worth that much or a cup of coffee at Star Bucks.

The price point is difficult. You say the average income is high, so if you have a lot of soccer mom's around with a good income your private training are is a great idea. Other than that, your average gym goer doesn't really care if they're being trained with others around. Usually (unless it's old money), people are wealthy because they're good with money. i.e. they will opt for the cheaper option most times. They don't know you, people don't like spending money. So a lot of times spending an extra 135 / month is a lot (regardless if they can afford it, the willingness to pay just isn't there). When you break it down, they don't want to spend more than 10-20/hr on a trainer, and trainers don't want to make that little money. Here is the catch, if you have that room with the right equipment (cables, bands, etc) and have physical therapists in there (you mentioned up and coming, so they need all this stuff), they will be able to use that equipment themselves. You can adjust the rent accordingly (probably include gym access as well, but build it into the rent as an amenity don't do per hour). That way, economically, if you don't have enough clients who sign up for the private stuff, the ones who do just end up being more profit because you're making back your money from the chiropractor and physical therapist (for example)
Make different tiers as well (for example):
Gym membership 40
Optional training packages:
" W 1/week 1/2 hr 50
" " 1 hr. 90
" " 1/2hr Private 90
" " 1hr Private 140
+ Scale the prices if they sign up for 1, 3, 6, 1yr (since you will get people who sign up for a year and stop showing after 3 months)
That's 25/hr for training. Idk what your operating costs / hr is. I assume there is a high fixed overhead cost and small variable costs. I live in an area of MA where the average income is quite high, and 25/hr is probably a good median of where I would be able to sell a good amount of packages with training. There's a reason the old place shut down, but I think if you have that on top of the training, you will be in a good spot
It's just tough in business. Bc people say they want quality, but don't want to pay for it, and they just buy cheap. Once again, unless they're old money, ridiculously rich, or a soccer mom with expendable income, they always opt for cheap
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.
.
Good luck brother! Let us know what you end up doing. I wish your gym was in my area, I would definitely be a member, sounds great

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Originally Posted by cylon357

Just thought of another insurance related question because yeah, risk is a thing.

Any special liability associated with advising someone on AAS use? That is assuming they don't have a prescription of course.

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well this has been a risk since "gurus" have been around and given AAS advice.. every bodybuilding coach out there is at risk and numerous bodybuilders have died at shows under a coaches supervision (I think there were 3 deaths this contest season at shows)..

but at the end of a day , what a person puts into his body is his own choice . just like when a bodybuilder shows up on stage out of shape because he cheated on his diet eating cheese cake, he chose to eat the damn cheese cake, no on else did.


but I still do try and protect myself .. all the clients who are members here and have worked with me can attest they have gotten protocols built with a waiver that says all the drugs they choose to take are to be legal where they live and under a doctors prescription and direction only . its there own choice if they don't actually end up doing that.

its a risk that is taken though . insurance won't cover that .. its also something where bodybuilding coaches having to take on such a risk probably don't get paid near enough $

I got paid 10x the amount of money I make now in my last career before I became a gym owner and coach, yet that last career my liabilities were covered (I owed a million dollar a year commercial contracting company). but my insurance cost was through the roof . I paid around $20,000 per year just for basic lialbity insurance coverage (but I had a bunch of employees to cover as well)..
owning a gym and training business I think my insurance is probably only about 2k per year. yet I have 800 customers and a facility

ill just throw this out there as I don't really know if it matters but I belong to a really decent gym that's 5 min from my house...this gym probably has 500+ members and it stays open and survives with several competing gyms like planet fitness and orange circuit...now that said there is this very small exclusive gym right next door to my gym that serves from what I can tell from the parking lot people with $ and also fitness goals that this owner caters too...they have been open for about 5 yrs now and seem to be doing well when we all thought they would be closed in a year...and just for other reference I live in Maine so there isnt a lot of people or $ out here in the sticks...

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Originally Posted by ghettoboyd

ill just throw this out there as I don't really know if it matters but I belong to a really decent gym that's 5 min from my house...this gym probably has 500+ members and it stays open and survives with several competing gyms like planet fitness and orange circuit...now that said there is this very small exclusive gym right next door to my gym that serves from what I can tell from the parking lot people with $ and also fitness goals that this owner caters too...they have been open for about 5 yrs now and seem to be doing well when we all thought they would be closed in a year...and just for other reference I live in Maine so there isnt a lot of people or $ out here in the sticks...

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Yupp! I love Maine, I would move there in a heartbeat if there were any decent paying jobs

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Originally Posted by HoldMyBeer

Yupp! I love Maine, I would move there in a heartbeat if there were any decent paying jobs

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yes it tough here as the taxes are ridiculous and the fact that you have to heat our homes is quite a burden it gets cold here fast...in fact we had our first frost today and its still technically summer...that said it is beautiful and quiet with lots to do if you love nature...I have a good paying job here, its easy if you drive a truck or are involved in healthcare like nursing or have other technical skills used in manufacturing...

Just buy it and rent it out. Perfect spot for an anti aging clinic. Find a good HRT Doc and have him set up shop in that space. Take a percentage.

Just get on with it and do what you really want, Open an Irish bar.

In all seriousness this sounds really interesting. Help me understand are you saying that the current people you train/coach are going to have access to the proposed additional facility or is an above and beyond cost to those people. Also do you believe the new facility will draw enough new members to be viable on its own, meaning if it were considered a separate entity would it add income that is worth your time?


Sent from my iPhone using Tapatalk

GH, sorry I didn’t see this.

How did the physical therapy clinic do there & what was there reasoning to shut down or move?

We have a LOT of these private gyms here in Los Angeles.

I love the idea of integrating in sports medicine, chiro, deep tissue work & hey how about a cryo-chamber?

The people want an update gh!

Just do it. Colorado is closer than Oxygen Gym.

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Originally Posted by ghettoboyd

ill just throw this out there as I don't really know if it matters but I belong to a really decent gym that's 5 min from my house...this gym probably has 500+ members and it stays open and survives with several competing gyms like planet fitness and orange circuit...now that said there is this very small exclusive gym right next door to my gym that serves from what I can tell from the parking lot people with $ and also fitness goals that this owner caters too...they have been open for about 5 yrs now and seem to be doing well when we all thought they would be closed in a year...and just for other reference I live in Maine so there isnt a lot of people or $ out here in the sticks...

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Damn you cut up a lot!
Nice abs!

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Originally Posted by Obs

Damn you cut up a lot!
Nice abs!

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thank you brother ive done a lot of mountain biking this summer and it has paid off...

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Originally Posted by GearHeaded

but at the end of a day , what a person puts into his body is his own choice . just like when a bodybuilder shows up on stage out of shape because he cheated on his diet eating cheese cake, he chose to eat the damn cheese cake, no on else did.

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Fortunately I prefer carrot cake!

Finally had time to read this -

Imo - gyms are almost always a bad business investment. You’d be the 1st to be hit when the economy tanks.


I have been shopping around for a small to medium business for months now & I see gyms going for under equipment costs

+ I have seen independent gyms here fail one after the next - yet there are still a few that are making it. . . But, making it is not what I’m after.

The chains here(eOS, LA, LifeTime & MountainSide) are the ones who have the market cornered & pushed almost everyone else out.

gyms are very market and location dependent . you can't just open up a gym and expect people to flock to it. there has to be a real demand and need.

I live in a growing and booming upper class area. new houses are being built everywhere , from basic 4000 sq ft little family homes to 12,000 sq ft luxury mansions.. something like 80 new families move to this area every month.

in the last few years my gym has went from upper 200 members to 800 members (with no real advertising). We are #1 and top of the page on google, without paying for SEO.

BUT this is all because of location location location ,, and the need in the area for a "real gym" (rather then the country clubs and rec center type gyms that are around here)..
I have a bunch of racks, powerlifting equipment, chains, bands, specialty bars, bumper plates, Olympic lifting platforms, etc. etc.. which your not going to find in the country club down the street.

take my gym and put it in the inner city or in some area that is already established and isn't really growing and booming, and the gym could end up being a total bust.

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Originally Posted by < >

Imo - gyms are almost always a bad business investment. You’d be the 1st to be hit when the economy tanks. .

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this is very true . gyms have an 80% failure rate. thats 8 out of 10 gym start ups fail within 2 years.

which was why it was a huge risk for me starting my own gym and cashing out all my investments and retirement to do so.. but sometimes you gotta go out on a limb and get uncomfortable and take risks to get what you want out of life

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Originally Posted by GearHeaded

gyms are very market and location dependent . you can't just open up a gym and expect people to flock to it. there has to be a real demand and need.

I live in a growing and booming upper class area. new houses are being built everywhere , from basic 4000 sq ft little family homes to 12,000 sq ft luxury mansions.. something like 80 new families move to this area every month.

in the last few years my gym has went from upper 200 members to 800 members (with no real advertising). We are #1 and top of the page on google, without paying for SEO.

BUT this is all because of location location location ,, and the need in the area for a "real gym" (rather then the country clubs and rec center type gyms that are around here)..
I have a bunch of racks, powerlifting equipment, chains, bands, specialty bars, bumper plates, Olympic lifting platforms, etc. etc.. which your not going to find in the country club down the street.

take my gym and put it in the inner city or in some area that is already established and isn't really growing and booming, and the gym could end up being a total bust.

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I know which city your in though not the exact area but I know there’s some extremely nice areas of town down there. People with lots of money to spend. I am in retail and consumer spending is just tanking. People are worried. This impeachment stuff, tariffs, the fed lowered rates again. I feel there’s a negative atmosphere for consumer spendign at the moment. Plus as we all know the economy is cyclical and we haven’t had a correction since 2008 crash. It’s abot a 10yr cycle every time. I do believe the economy will have a correction and it will go down fairly soon. That being said our state is in an awesome postion because of how much we’ve grown and how many new houses we have, etc. but that’s a double edged sword also. Our states economy particularly housing market has to level out/go down soon. The cost of housing is so artificial right now. As soon as people stop moving here by the thousands shit will hit the fan.

Anyways my .02 would just be cautious cuz there’s a correction coming soon. I’m already seeing it across the board in retail sales

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Originally Posted by Family_guy

I know which city your in though not the exact area but I know there’s some extremely nice areas of town down there. People with lots of money to spend. I am in retail and consumer spending is just tanking. People are worried. This impeachment stuff, tariffs, the fed lowered rates again. I feel there’s a negative atmosphere for consumer spendign at the moment. Plus as we all know the economy is cyclical and we haven’t had a correction since 2008 crash. It’s abot a 10yr cycle every time. I do believe the economy will have a correction and it will go down fairly soon. That being said our state is in an awesome postion because of how much we’ve grown and how many new houses we have, etc. but that’s a double edged sword also. Our states economy particularly housing market has to level out/go down soon. The cost of housing is so artificial right now. As soon as people stop moving here by the thousands shit will hit the fan.

Anyways my .02 would just be cautious cuz there’s a correction coming soon. I’m already seeing it across the board in retail sales

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I owned a small real estate investment co for a lot of years. had several single family homes, condos, etc.. I'm now completely out of that market. things have went down hill in that market and I didn't make near the $ I thought I would. in fact the last house I sold was my own home that I owned for 7 years and I lost money on it.. so I agree. even though on the surface the economy here looks to be really booming and growth is happening everywhere, the actual 'brass tacks' of it is peoples personal finances are not doing as well as it appears

Every millionaire I know has been swearing the real estate market is gonna hit the floor soon and it will be a prime time to buy.

Many are connected with billionaires and all have substantial real estate investments and either hold rental properties or flip houses as a diversity of their primary income.

A lot of these guys I know and respect have ceased buying entirely even though they have the capital to do so. They are just holding tight and waiting.

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Originally Posted by Obs

Every millionaire I know has been swearing the real estate market is gonna hit the floor soon and it will be a prime time to buy.

Many are connected with billionaires and all have substantial real estate investments and either hold rental properties or flip houses as a diversity of their primary income.

A lot of these guys I know and respect have ceased buying entirely even though they have the capital to do so. They are just holding tight and waiting.

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most millionaires are diversified and self employed . I became a self made millionaire at 33 years old (just barely though, net worth was 1.3 mil , so just barely got into that wealth bracket).. I have not had a 9-5 job since I was 20 years old. I started my own businesses and investing at 21. real estate was a big part of that as I was able to purchase my first house at 21 years old (which is the youngest person I know), and it wasn't some crappy condo, it was a custom built house on 2 acres of prime rocky mountain land just 30 mins outside of a major metropoliton area. its prime real estate now. I had purchased it 20 years ago . but I sold it when I was like 23, made $ then bought another house that was a fixer upper ,, fixed it up sold it made $ again,, bought another house, same thing. I was moving every couple of years. then I stopped selling houses and kept them and turned them into rental properties or lease to own properties. and I'm not talking low income shit holes, I'm talking houses that I had built that were 6 bed 5 bath with brazillina cherry wood floors and granite counter tops, etc.. the works.
I then developed a pretty good profile of investments and went into stocks and mutual funds, IRA's etc.. and of course ran several business I started (mainly commercial contracting focused .. I owned a commercial HVAC company for 18 years, specializing in a lot of high end stuff , did a lot with medical buildings, clean rooms, building automation and DDC control systems etc.. also owned a building maintenance company . and heck even a commercial snow plowing business)..

my point .. being a millionaire generally requires a whole lot of diversification . there are a whole lot of doctors and lawyers that make 250k per year that are not millionaires simply because they lack the diversification , the more they make the more they spend and thus they never really make any $


now I'm just a lowly gym owner and trainer and coach.. I don't make shit for $ and lost all my wealth due to injuries, surgeries, and 3 years of negative health problems and a bad addiction to prescription pain pills.
but heck I enjoy what I do . its my passion. I provide for my 4 kids and pay the bills and make ends meet.. I can still afford a few luxury items in life like a couple nice cars and my gun collection. but my tax returns are no longer 90 pages long, I don't own 2 million in real estate anymore (heck I'm a lowly renter), and I'm kinda happier for it .. less headaches

Quote:

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Originally Posted by GearHeaded

most millionaires are diversified and self employed . I became a self made millionaire at 33 years old (just barely though, net worth was 1.3 mil , so just barely got into that wealth bracket).. I have not had a 9-5 job since I was 20 years old. I started my own businesses and investing at 21. real estate was a big part of that as I was able to purchase my first house at 21 years old (which is the youngest person I know), and it wasn't some crappy condo, it was a custom built house on 2 acres of prime rocky mountain land just 30 mins outside of a major metropoliton area. its prime real estate now. I had purchased it 20 years ago . but I sold it when I was like 23, made $ then bought another house that was a fixer upper ,, fixed it up sold it made $ again,, bought another house, same thing. I was moving every couple of years. then I stopped selling houses and kept them and turned them into rental properties or lease to own properties. and I'm not talking low income shit holes, I'm talking houses that I had built that were 6 bed 5 bath with brazillina cherry wood floors and granite counter tops, etc.. the works.
I then developed a pretty good profile of investments and went into stocks and mutual funds, IRA's etc.. and of course ran several business I started (mainly commercial contracting focused .. I owned a commercial HVAC company for 18 years, specializing in a lot of high end stuff , did a lot with medical buildings, clean rooms, building automation and DDC control systems etc.. also owned a building maintenance company . and heck even a commercial snow plowing business)..

my point .. being a millionaire generally requires a whole lot of diversification . there are a whole lot of doctors and lawyers that make 250k per year that are not millionaires simply because they lack the diversification , the more they make the more they spend and thus they never really make any $


now I'm just a lowly gym owner and trainer and coach.. I don't make shit for $ and lost all my wealth due to injuries, surgeries, and 3 years of negative health problems and a bad addiction to prescription pain pills.
but heck I enjoy what I do . its my passion. I provide for my 4 kids and pay the bills and make ends meet.. I can still afford a few luxury items in life like a couple nice cars and my gun collection. but my tax returns are no longer 90 pages long, I don't own 2 million in real estate anymore (heck I'm a lowly renter), and I'm kinda happier for it .. less headaches

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An "employed millionaire" is a kiss ass hanging by a thread.

The ones I respect started with zero and went to a million or millions per month from nothing.
I mean nothing.
No co-signer, no credit. Just balls, drive, and a checkbook.

My point is I have heard so many say it that are politically unaffiliated, something has to be coming.
Politically unaffiliated means they realize it doesn't matter because they are politicians and appeal to the masses. Money is their motivator.

They know trends and people. They dont have friends, just business acquaintances and hired bitches that strive for them that think they are their best buddy. Lol

I studied the shit out of them and used to bust my ass to impress them until I understood the game, then left employment.

Large commercial construction projects are planned years in advance and huge contracts for bid have been totally withdrawn the past year. These are market predictors to the people who create the economy well before it takes effect.

Little business is always two steps behind huge business with plans for future endeavors.

"Omg the economy is booming!" always comes before a crash.

This is why you see the idiots two steps behind and common folk blaming the current administration for something that was set into motion years previously.

Few will ever truly be self made.
There was usually a co-signer involved or capital from parents that set it into motion.

Richest man I know personally was newly divorced and living in an apartment with a $10k backhoe and a piece of shit truck 10 years ago

https://youtu.be/T5qcoP0cRPI

Gotta have a loud speaker to hear this video but Ice T lays out business strategy 100% from employed to self employed.

You already know this but the employed usually don't.

Quote:

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Originally Posted by Obs

An "employed millionaire" is a kiss ass hanging by a thread.

The ones I respect started with zero and went to a million or millions per month from nothing.
I mean nothing.
No co-signer, no credit. Just balls, drive, and a checkbook.

My point is I have heard so many say it that are politically unaffiliated, something has to be coming.
Politically unaffiliated means they realize it doesn't matter because they are politicians and appeal to the masses. Money is their motivator.

They know trends and people. They dont have friends, just business acquaintances and hired bitches that strive for them that think they are their best buddy. Lol

I studied the shit out of them and used to bust my ass to impress them until I understood the game, then left employment.

Large commercial construction projects are planned years in advance and huge contracts for bid have been totally withdrawn the past year. These are market predictors to the people who create the economy well before it takes effect.

Little business is always two steps behind huge business with plans for future endeavors.

"Omg the economy is booming!" always comes before a crash.

This is why you see the idiots two steps behind and common folk blaming the current administration for something that was set into motion years previously.

Few will ever truly be self made.
There was usually a co-signer involved or capital from parents that set it into motion.

Richest man I know personally was newly divorced and living in an apartment with a $10k backhoe and a piece of shit truck 10 years ago

https://youtu.be/T5qcoP0cRPI

Gotta have a loud speaker to hear this video but Ice T lays out business strategy 100% from employed to self employed.

You already know this but the employed usually don't.

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LOL .. this is very true . this is actually part of my own personal downfall. at the end of the day I ran out of enough people with talent that I could "pimp out" .. simply put , no one around had the talent or skills. I was offering pay of $40 per hour, 3k signing bonus, company vehicles, all the benefits, etc.. but there was just no one qualified to do the work . I over extended myself in being involved in to high of a field with not near enough qualified people to support it..

so if your going to be a pimp , you need to first make sure there are plenty of hot hoes around first and foremost

Quote:

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Originally Posted by GearHeaded

LOL .. this is very true . this is actually part of my own personal downfall. at the end of the day I ran out of enough people with talent that I could "pimp out" .. simply put , no one around had the talent or skills. I was offering pay of $40 per hour, 3k signing bonus, company vehicles, all the benefits, etc.. but there was just no one qualified to do the work . I over extended myself in being involved in to high of a field with not near enough qualified people to support it..

so if your going to be a pimp , you need to first make sure there are plenty of hot hoes around first and foremost

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I will stuggle with hoes until I break my back.
I was a good hoe.
I was "prince" walking in when the label holders were slapping him on the back in front of the other hoes to make them try harder, because I was gonna impress my pimp at all costs and be the best little hoe out there.

Wiggled my ass just right.
Just a stepping stone in learning the game and just about everyone has to do it unless they are born into it.

Though I know some rich people that pimp their own children out.

Quote:

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Originally Posted by Obs

I will stuggle with hoes until I break my back.
I was a good hoe.
I was "prince" walking in when the label holders were slapping him on the back in front of the other hoes to make them try harder, because I was gonna impress my pimp at all costs and be the best little hoe out there.

Wiggled my ass just right.
Just a stepping stone in learning the game and just about everyone has to do it unless they are born into it.

Though I know some rich people that pimp their own children out.

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I'm like you . I started out as a hard working mofo.. I grew up in a basic blue collar low class family. 2 days after I graduated high school I was working for a commercial hvac company and was an official "union" member (I had applied months in advance).. my first construction job was retrofitting a large high schools hvac system.. well I think my boss wanted to just see what I was made of (or just wanted to give me something to do) and it became my full time job to dig a 5 foot deep 4 foot wide ditch about 100 feet from the boiller room to an adjacent outbuilding.. that way new boiler and chiller lines can be set.

umm . don't they make tractors to do that shit in just a day . of course. but I fucking dug that bitch myself alone by hand 9 hours a day every single day until it was done.
after I did that shit so quickly without even a hint of complaining.. the boss gave me the keys to his company truck and made me his personal assistant. I was no longer digging ditches just cause I was a young newb, I was hands on learning the ends and outs of commercial hvac at an advanced level.
I moved up the ranks extremely quick to the point I started my own business at 21 .. my friends from high school were still living at home working odd ends jobs and drinking and partying all the time.. I on the other hand just dug the shit out of that ditch that had to be made , that work ethic and mind set made me successful