00k
10-24-2012, 01:14 PM
One idea would be to spend a few years building up a series of relatively low investment franchise businesses in your particular town. Keep an eye out for a trusted friend/relative/employee who would be able to run the business in your absence. Once you have a good income coming in from the franchises and you have installed a trusted manager you should be able to physically leave for long periods of time. Provided you're not a control freak who thinks the world will stop turning without your intervention.
I mention franchises, rather than other types of businesses, because it's easier to leverage that $500,000, when you are running an established franchise rather than a completely new business. i.e. a bank is more likely to olan you money. Say you have 5 franchise locations where your investment is $100,000 into each, while you raise another $400,000 in loans for each location. You do your due dillgence and work your arse off to make sure each franchise is returning more than the interest rate you're paying on the loans and you're leveraging your $500,000 to give you a great return. A lot less dangerous than real estate, which in my opinion is way over-leveraged.
I mention franchises, rather than other types of businesses, because it's easier to leverage that $500,000, when you are running an established franchise rather than a completely new business. i.e. a bank is more likely to olan you money. Say you have 5 franchise locations where your investment is $100,000 into each, while you raise another $400,000 in loans for each location. You do your due dillgence and work your arse off to make sure each franchise is returning more than the interest rate you're paying on the loans and you're leveraging your $500,000 to give you a great return. A lot less dangerous than real estate, which in my opinion is way over-leveraged.