There is this dude on Facebook I really can’t stand. Even worse, I’ve been getting targetted ads from him
Sorry to publicly blast you dude, but you are a fucking parasite.
He’s got the sexy board about how you can easily start a hedge fund and be making #billions in no time and that it’s just so easy to do. Why doesn’t everyone just buy his inevitable course for $997 and he’ll teach you to be #rich with a Lamborghini in two sections.
I can guarantee he doesn’t make money as a hedge fund. He makes money from selling courses. I know this because of some of the best hedge funds in the world are my clients. This random dude in Utah doesn’t compete with them. A legit hedge fund takes at least $30M in startup capital, often more. Also, the average hedge fund only lasts 5 years before failing because the competition is so high.
Guys like Tiger and Shaw and Citadel invest hundreds of millions in building high-frequency networks. Think this course parasite is investing that much in building his network?
Someone else who understands hedge funds put him on blast in the comments, to which this POS responded with a picture of him and three dudes that say $10M AUM by 30.
That’s designed to impress you. However, that’s not how much money he has, it’s how much he manages. It’s a big distinction based on earnings.
A hedge fund makes 2% and 20%. They get 2% of the AUM as operating expenses, and then make 20% of the profits.
So between the three of them, they make total:
- $200,000 a year in operating income (2% *$10m)
- $160,000 a year in profits (20% * $10M AUm * 8% return, assuming matching the market)
So the three of them have a total revenue of $360,000 a year. Expenses are at least $100,000 for legal and compliance, which means the three of them make ~$250,000 a year. Split amongst the three of them, that’s $83,000 a year.
Much less impressive than $10M, right?
But, I’m sure he uses that $10M to sell courses to unexpecting people and that’s where he makes money. He’ll lease a Lamborghini at 12% interest rates a year because he put $5,000 down, and tell himself he’s a badass successful entrepreneur. He’ll put all over social media that he’s an entrepreneur.
It’s pieces of shit like this dude that have led to me doing this case study.
I think a conventional understanding of what an entrepreneur is has eroded thanks to guys like this dude and Tai Lopez. An entrepreneur is now a course seller who drives a Lamborghini. An entrepreneur is now not something to be admired, they are a parasite.
This is bullshit.
An entrepreneur is someone who absorbs true risk and difficulty in order to produce something of value to the world.
An entrepreneur is Brian Chesky who endured years of Thanksgiving dinners of lectures from family members about how he was throwing his life away. An entrepreneur is Chesky maxing out a dozen credit cards to help pay for his startup that no one cared about.
An entrepreneur is Brian Chesky pushing through all of that for years of struggle to ultimately produce a company called Airbnb and deliver significant value to the world.
Entprenreuers go through the struggle to produce value. My goal in this case study is to show you the struggle, and hopefully one day, show you the value.
I’m also not selling you a fucking course. You guys don’t even know my real name.
Yesterday there were 1,587 days until I turn 30 and need to make $10K a day passively. Here’s how I spent it in pursuit of that goal
The current phase of the plan
I’m in Phase #3: The Business Phase. You can read more about the phases and my plan to get to $10K/a day at 30 here.
I still consult, and I still have a job. I’m looking forward to removing both of those ASAP.
Wake up & sleep:
I woke up at 7:21 after going to bed at 11:22, for total sleep of 7 hours and 16 minutes and a total recovery of 70%
I’m shocked it was a recovery of 70%. I was a zombie all day and had so little energy. I’m not terribly sure why, but I was very low energy.
I didn’t move all day because I was working. Day strain was better at 10.0
Stress was probably a 2/5, with 1 being the highest. I am on my last few days here of work, and if things go well soon, I should be done promptly with consulting for a while.
Coffee, protein shake, some oatmeal.
My Day Job
Nothing much. I really don’t know what they think I’m doing all day.
Investment real estate
I called one of the banks we work with for these deals and had a really great conversation with the banker there. He’s excited about the potential deal on the table for ~the 49 units and thinks it could be a big win for everyone. If we can all work together and get this deal done, then I think we’re in a good spot.
The bank is going to want 10% down, and we were hoping for 5% from us and 15% from the seller. We might bee able to swing it though since this is not our first deal together.
My Actual Business
Ugh. Almost done
Market Research & Customer Interviews
I had a meeting with my client. Overall, I think it went pretty well. There are some adjustments that I need to make, but nothing significant to the point it will cause a horrible time and effort to rectify and fix
Sourcing new work
Nothing really here
Published the daily post.
Walks with fiancee
Rescue Time Daily Screenshot
What I made today
Current Income Streams
- Job: $170
- Rental Income (13 rental units): $43
- Framework: $250
Planned income streams
- 15 websites
- My Startup
- Local Serviced Based Business (cleaning business)
- WordPress Maintenance Site
- Content sites
- Dividend Income (municipal bonds)
Today’s pro-rated amount of monthly & yearly expenses
Life Expenses: $89.73
- Rent, utilities, Internet: $63.33
- Phone Bill: $1.57
- Heath Insurance: $8.90
- Ladder Life Insurance: $0.83
- TrueBill for Budget tracking: $0.10
- Car: $15
My Startup’s Expenses: $0.16
- Bluehost Domain name: $0.16
Health Expenses: $12.00
- Peloton: $3.20
- Gainful Protein Powder: $1.80
- Care/of Vitamin pack: $3.00
- Whoop fitness tracker: $1.00
Productivity Expenses: $2.25
- SuperHuman to save time on email: $1.00
- Rescue Time to keep me honest on my productivity: $0.20
- Fantastical as my main calendar: $0.20
- Evernote to track everything: $0.27
- Grammarly to keep my emails looking okay: $0.38
- BackBlaze to keep my files backed up: $0.20
Consulting Business Expenses: $302
- Gusto to pay myself: $1.50
- Quickbooks to track expenses: $0.40
- Google Business Email Account: $0.40
- Fiverr for virtual support: $0
$10K a day: $12.42
- Kinsta for hosting: $1.00
- Bluehost for domain names: $0.03
- WP Rocket for speed: $0.14
- Link Whisper for SEO: $0.14
- Elementor for site design: $0.14
- Astra for theme: $0.14
- Rhino Rank for SEO: $10.83
Real Estate Investing: $0.52
- Legal Zoom Registered Agent (all LLC’s): $0.52
Today’s Income (pre-tax)
Topline of $463, spent $119, which means….
Made $344 (pre-tax).
My plan for tomorrow
Tomorrow is Thursday, and I need to do:
- Wrap up my big project for my client by completing the report
1,586 days until I turn $30. I’m making $10K a day passively by then