Comments by "bighand69" (@bighands69) on "Kevin O’Leary Reacts To My $10 Million Dollar Investment | Shark Tank" video.

Raising rents means that he can cover inflation but on the other hand not raising rents means he can be super competitive in the marketplace. It can also lower vacant properties on his portfolio. Nothing worse than a property sitting empty as it can form damp and rodent issues.
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Debt is a tool for many people that can help them grow their wealth. Too much debt is madness or having debt when you do not need it is madness.
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@adeshkantha7034 We think he is worth 400 million it could be half that or twice that but he is orders of magnitude above the young guy.
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You need to do everything you can to obtain more cash. Work double hours, buy and sell things, find extremely cheap things do a little bit of work on them and sell them on at a profit. If you current work 40 hour per week then start working 80 hours per week. In a few years you will be far wealthier.
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If you do not raise rents it means you will have your investments lowered by inflation. At the very least having it match inflation is important. Now the upside to not increasing rental prices is that he stays competitive and lowers vacancies in his portfolio.
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The people O'Leary was talking about were wealthy they just took on too much debt. You can have 10 million in cash with a 20 million dollar loan on a boat or property. That person with 10 million cash is still wealthy but has put them self in a high risk state with the debt. He is not talking about people making $200,000 per year with a pile of debt looking really fancy.
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If you can diversify when you are younger do it.
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You need to find more ways to make money. If that means working extra hours or buying and selling small things so as to snowball your wealth. 9 out of every 10 wealthy people start with absolutely nothing. I came from a poor family where my father was out of work for a good period of time. My first job was cleaning filthy toilets for $0.5 per hour and it was a smelly disgusting job but I was glad of the money and I was working 80 hours per week.
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Being bankrupted at 25 can just be as hard on people as it is on 65 year old people. I have seen people with wealth and money lose it all and never recover. They wasted their most productive years.
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They are not going to help him.
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@chrisparker9672 But is it really a fixed uncallable debt?
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@Octopussyist If there is a 1929 style crash and a two decade economic depression then that debt will become a massive weight even if he has a few million now. If banks think that he has cash they may come after him in a crisis for the cash. It really depends on the contracts for his debt.
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He will not necessarily go bankrupt but he will eat into his growth if he does not compensate for inflation. What he probably should do is advise new tenants that he does not do upwardly rent reviews but he does raise prices to cover inflation every year. I suspect what he does do is raise the rent every several years to compensate and probably went a tenant moves out.
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@Joel Cuddy The key word Joel is average. Most people are not deep investors they take a lump of money and just want it to grow. Stocks would be a terrible investment for them as they would be investing for all the wrong reasons such as like a business because of their product like Apple or trying to pick the next big thing because people tell them to. If you are an investor you need to be able to analyse the value of the stock you are buying, judge if the business is good or bad and be confident that business is going to be around in several years time. I have grown my own investment portfolio over the last few decades by 27% per annum purely on stocks as I am an investor not a speculator. By the way you can lose money on index investment as well.
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Business is not rude it is business. So when you see him on tv give his opinion it is purely for show but also he is telling the truth. I once had to tell a young women that her business idea was one of the dumbest things she could ever come up with and she went on ahead and lost a pile of money. I could have been polite and told her to reposition and to try and spread her risk of investments and showed her the financial flaws in her business but that would not have world. Sometimes being honest and extremely truthful is the only way to be. If the idea is horrible you have to tell them outright what it is.
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