15 Investments Rich People Make The Poor Know Nothing About

rich people are making bank in ways everyone else isn't even aware of if you watch Until the End you'll realistically learn more about money in this video than you did in an MBA course here are 15 Investments rich people make the poor know nothing about number one whiskey and wine here's something the average person doesn't understand you get rich by selling things for profit you stay Rich by holding on to things that appreciate and value over time and rich people love leveraging time for their financial gain let's take whiskey for example a 2023 whiskey isn't worth much but a 20 year old whiskey is poor people buy whiskey at the supermarket by the bottle rich people buy it at The Distillery by the barrel you don't even have to take physical possession of the barrels many of these distilleries or third-party providers will hold on to it for you and even arrange the sale when the time is right for The Distillery this creates cash they minimize the overhead while aging and it mitigates the risk of losing money and before you brush it off aging whiskey generates 10 to 15 percent returns per year and when it comes to Wine well well since 1988 investment grade wines have seen a compound annual growth rate between 10 and 11 percent in both cases this is a higher return on investment than many other stocks the S P 500 has an average return of about 10 percent per year number two collectibles rare books comic books toys stamps coins sports memorabilia sneakers movie Collectibles trading cards there's even a market for Hummel figurines these Bad Boys sell for as high as five thousand dollars a piece two years ago in July 2021 a Pikachu illustrator card sold for 5.275 million dollars that's a one Pokemon card a Superman number one comic book sold for an astonishing 5.3 million a pair of sneakers worn by Michael Jordan in the 1998 NBA Finals recently sold for 2.2 million dollars setting a new world record for the most expensive shoes ever purchased and the list goes on okay if there is a demand for it people will start bidding but be careful if the demand goes away so will your money we've seen this happen with both beanie babies and nfts with the rise of generative AI the nft Art Market went completely down the drain number three luxury watches and purses have you ever noticed how rich men tend to collect watches and rich women have dressing rooms filled with luxury bags or specifically with this particular model this is the Hermes Himalayan Birkin worth five hundred thousand dollars and if more of them were to show up on the market people would jump at the opportunity to snatch them up rich people focus on high demand products that have a very limited Supply most people don't know this but you cannot walk into a Rolex or an air mass shop and buy yourself the products that's just not how it works in rich people land the stores are mostly for display purposes only if you qualify meaning that if you align with the brand correctly they'll put you on a waiting list and call you when the product becomes available Royal Oak has a waiting list of two years it's the same with most Rolex watches and sometimes even with luxury cars in the case of the Hermes Birkin bag you buy your way up you get on the waiting list and first they offer you a lower tier bag which you have to purchase or else you'll not be invited back if you keep on shopping with them over time you'll build up enough social credit to be offered a Birkin bag there are long waiting lists that can stretch up to six years just to buy yourself a bag and what's more is in the store you'll pay between ten to fifteen thousand dollars for a Birkin bag but the moment you walk out of the store with it you could easily find buyers online for thirty to forty thousand dollars the same thing happens with luxury watches a Patek Philippe Nautilus which will sell at retail between Thirty to fifty thousand dollars will sell on the secondary market for over one hundred thousand number four private banking you know how for most people keeping money in the bank is costing them money they charge you when you deposit they charge you when you withdraw and they charge you just for keeping it there well that's not what happens in the case of high net worth individuals rich people are treated very differently by Banks they call it private banking this is what the average person gets for a savings account with for example the Bank of America but know that it's a similar story with almost every other bank the interest rate how much money you will get for keeping your money with the bank is [Music] 0.01 meaning that if you deposited ten thousand dollars into a savings account for 12 months one of the largest banks in the U.S will give you an interest rate of one dollar just one dollar if you qualify for whatever Advantage savings Diamond honors means they'll give you a whopping four dollars as interest on the 10 thousand dollar deposit this is hilarious on one hundred thousand dollars that's ten bucks on a million dollars the interest paid would be one hundred dollars and all of this happens in times when inflation is eating away at your buying power five percent plus year over year have you ever wondered what kind of return rich people get from keeping their money with the bank prepare to be shocked okay most private Banks yield an average between seven to thirteen percent yearly on cash deposited yup while the bank is paying poor people ten dollars for every one hundred thousand dollars deposited that same bank is giving rich people ten thousand dollars for every one hundred thousand deposited in Europe we received an offer for eight percent State guaranteed return on deposits over one hundred thousand dollars every bank has their own tier system but you should be able to qualify for private banking services at around two hundred and fifty thousand dollars not to mention the plethora of perks the bank will give you once you are a top tier client like the concierge service access to private events memberships and massive discounts on luxury products and experiences number five art now one of the most famous but also mysterious Investments for the ultra wealthy is fine art luxury multi-million dollar Works quietly appearing in mansions and Yachts via mysterious dealers only making headlines when they sell for billions as a part of a tech CEO's collection a large part of the one trillion dollar plus Art Market is invisible if you're not in the one percent and this exclusivity means the ultra wealthy no art will behave differently as an investment it's a market driven by those who actually grow richer in times of turmoil people who then store that money in the form of famous artworks just look at the data last year high net worth collectors doubled their spending on Art even as other markets around the world saw losses topping an unbelievable 36 trillion dollars now here's the real secret the billionaires haven't bought up all the art the global value of art is expected to grow a whopping 1 trillion dollars by 2026 which means there's still time for everyday investors and that's why what Masterworks is doing is so special in fact to date Masterworks is Art investing platform has already sold over 45 million dollars worth of artwork with the net proceeds distributed straight to investors like you with Masterworks instead of buying an entire painting you're investing in a portion of it with the profits from reselling it split amongst the shareholders Masterworks has gone 13 for 13 every single exit handing back a return to investors like you in fact Masterworks just sold two more offerings while a banking crisis unfolds with such an opportunity it's understandable that there's a wait list for most new investors to get onto the platform but we're a long time partner so if you go to alux.com art or click on the link in our description you'll get to skip the waiting list right away and claim your free account right now that's alux.com art number six hotel rooms most people don't know this but you can actually buy and own hotel rooms use them whenever you want and when you're not there the hotel will rent it out and you split the profit there's actually a low barrier of Entry when it comes to hotel rooms while the entire hotel is worth several million dollars hotel rooms typically range from thirty thousand to two hundred and fifty thousand dollars but don't be mistaken luxury hotel rooms or Suites can easily go above the one million dollar Mark but if you're looking to own something abroad and not have to worry about the maintenance of it well this is a phenomenal way to go actually this is one of the cornerstones of Trump's real estate Empire you can still buy apartments and rooms in most of his hotels and they'll monetize them for you when the new Atlantis opened up in Dubai most of the apartments in the hotel were already sold to International investors for an average of three to four million dollars a pop simply go to websites like Zillow and add hotel as a keyword most of these are hotel rooms or condos in hotels that can be monetized by the hotel on your behalf number seven rooftop rights if it can be monetized rest assured someone will find a way to do it a couple of months ago we were approached to invest in a startup that is quietly buying up the rooftop rights of buildings in a couple of cities in the U.S so why are they doing that well they're installing solar panels up there the residents get to enjoy lower electrical bills and they get to sell the electricity for profit up until now rooftops were pretty much wasted space and you got to purchase rooftop rights for a fairly cheap since most of them go unused but that's probably not going to be the case for very much longer you know all these delivery workers bringing you your Amazon ubereats and whatnot well pretty soon they'll be replaced by drone deliveries which will need a safe space to land to drop your order rooftops well they're going to be having a moment pretty soon number eight mineral and water rights there are plenty of valuable resources out there that go unexploited spring and water rights are one of them you can purchase the rights to the spring water and then sell it commercially we learned about this from a Serial entrepreneur Jean valviz who's got quite an interesting story he found a spring with high quality water bought the rights from the state bottled the water and created dorna a couple of years later he sold the dorno water brand to Coca-Cola but his thirst wasn't quenched yet once his non-compete expired he found another spring and founded another water brand called aqua carpatica which he last year sold to Pepsi multiple water exits using basically the same business formula over and over again every country has what's called mineral ownership records it's a database to see who owns the rights to what in terms of Natural Resources just search mineral rights for sale plus your country and you should be able to find an auction platform where people are bidding for them number nine buying other people's debt well this is a fun one did you know you could actually buy and own debt for pennies on the dollar not only yours but multiple peoples payday loans personal loans overdraft medical debt mortgages even bill payments are all trading on a secondary Market when someone doesn't pay their debt immediately the company that's owed the money can choose to either try to collect it themselves or sell it off to someone else to bother with it that's what collection agencies do the company that's owed the money usually bundles all of the unpaid debt into a single package and sells it off to someone else for 15 to 30 percent of the value of the debt the agency then tries to collect and keep the difference as profit there are even auction sites dedicated to buying and selling debt that you probably weren't even aware of number 10 coaching and counsel rich people leverage other people's expertise to get ahead in life faster than everybody else here's something that we want you to remember without external help and guidance your only way to grow is through trial and error getting professional help like a mentor or coach cuts the distance between where you are and where you want to be because you're using other people's learnings to your advantage this is the biggest secret and most powerful tool you have at your disposal to get there as fast as possible have people who've done it to show you the fast way there but mentors aren't available everywhere and coaches who actually know what they're doing are incredibly expensive which is why only the rich have access to this unfair advantage that is until now we found those mentors and coaches some of the smartest people in the world and paid them to share their insights on your behalf everything they've learned is in the a lock sap where for less than the price of eating out you get a full year of coaching and mentorship go to alux.com app right now start your subscription and see just how much faster you make progress 91 of our app users have already achieved their primary goal in life or have made significant progress toward it while you're out there just waiting for a sign well this is it my friend get the app it's only 99 a year and just see what happens really what do you have to lose number 11 private equity and early stage startups did you know that you don't have to be an entrepreneur or start a business to make money off of one welcome to the land of private Equity let's say you and a couple of friends come together and purchase 51 of a bar you keep all of the staff and current management but you retain most of the profits well it's the same with most businesses real estate will get you six to eight percent per year plus appreciation a floral shop for example will get you 45 to 100 per year in the case of early stage startups you write a twenty or fifty thousand dollar ticket in exchange for 20 to 33 of a new business the entrepreneurs execute the vision and if it plays out you're making bank you might not realize this but most millionaires have their wealth tied into real estate but all billionaires have made their billions through private Equity by owning parts of a business number 12 investing in Emerging Markets these are the current emerging countries meaning their transition is already in progress most of these countries have already seen an uptick in real estate prices in the last decade where the money is right now is in the country's bordering these emerging GEOS let's take turkey for example you don't want to go south because the situation is unstable but you can go north and you find the country of Georgia did you know that you could buy a one-bedroom apartment by the seaside for thirty five thousand dollars they're building five-star hotels in Belize where you can buy hotel rooms for under one hundred thousand dollars and get twelve percent per year yield this is just an example take Thailand or Indonesia people know of Phuket or Bali but there are other parts of the countries where investment opportunities are still cheap African countries are going through a technological boom right now so office space decent units for rent and business centers are all still really affordable and if you're looking for long-term Investments buy AAA property in areas of incredible natural beauty in 1959 someone bought a large property on a cliff for ten thousand dollars in the tamarama neighborhood in Australia beautiful property overlooking the bay adjusted for inflation that ten thousand dollars would be the equivalent of three hundred thousand dollars today but last Wednesday the tamarama house just sold for 47 million dollars setting an Australian record back then the Australian coast was an emerging part of the world and keeping with the real estate Trend number 13 square footage for Real Estate developments investors get secret deals when it comes to property development when a new office or residential building is being built the developer doesn't want to use their own money so they go to private investors AKA rich people and offer them to sell square footage at Cost developers usually sell 30 of the square footage of the new building to these private investors and then use that money to secure a loan for the rest from the bank and then get to work you don't know what or where your square footage will be maybe it'll turn out to be Apartments Studios or office space but since you're buying it at Cost you'll certainly make a profit we've done these kinds of deals in the past but they require a minimum investment of 1 million the realized yield was 110 percent return on our money after five years the only downside was a longer wait time on your investment to pay out since you're investing at the earliest stage possible but if you're partnering with a high trust developer the profit is almost guaranteed and there are other real estate options with smaller Developers for example you can get 12 annual returns with home developers and their investment ticket starts at only fifty thousand dollars per ticket with a lock period of 18 months so you're getting a total of 18 return for the 18 months you give them your money these kinds of behind closed doors examples are the main reason why people subscribe to alux you won't know about these deals unless you've done them so if you're not subscribed yet you're definitely missing out number 14 hedge funds hedge funds are institutions designed to make as much money as possible for investors remember the private banking example of how poor people get screwed over by Banks and how private banks are offering 10 Returns to their top tier clients well there's a level above that and these institutions are called hedge funds it used to be that the minimum amount to get started with a hedge fund was one hundred thousand dollars but honestly unless you have at least a million or a half a million with great connections any respectable fund won't even talk to you the goal here is to outperform the market but the key word is consistently a fund might have a great year and you'll see returns of 30 to 40 percent for that single year and maybe the next they'll only do five percent or even lose money so if the S P 500 returns 10 on average your fund should be able to at least beat that for example Jim Simon's fund Renaissance Technologies which is seen as one of the most consistent performers in this space returns an average of 40 percent per three-year brackets these are the Bobby Axelrod funds The Wolf of Wall Street kind who are always looking to be one step ahead of the market in order to maximize returns and the last item on our list number 15 marrying rich now this is something that telenovelas and children's stories popularized the idea of the prince marrying the poor servant the idea of the wealthy millionaire falling in love with the sales associate at the store but it doesn't actually happen that way poor people talk a lot about marrying rich but it almost never happens you usually end up marrying within your level of income or slightly up but almost never one thousand times above marrying rich is something that happens disproportionately more often among the wealthy even if that wealth disparity is multiple times higher so what that means is if you're a millionaire you are more likely to marry into a billionaire family than you are to marry into a millionaire family if you are poor the main reason is just proximity the differences in lifestyle between millionaire person billionaires isn't really that high so statistically speaking you're more likely to be in the same environments and get the same opportunity to engage so if you want to marry rich and this applies to both men and women you gotta make yourself rich first and then marry up you're here because you're smart enough to realize there's another world of possibility out there beyond your current reality so we're curious to know Alexa which of these Investments do you find the most interesting and which ones would you love to explore or learn more about let us know in the comments and just to keep up the tradition of course here's a secret bonus reserve for you for watching the video until the very end Network Commission information and Trust exponentially goes up in value the higher the numbers on the table so what that means is the right connection the right intro could be worth a fortune the largest commission we know about being paid for an intro was 2.5 million dollars just for someone to set up a meeting this was between a big commercial developer and one of the richest people in the country a third party arranged the meeting and the resulting investment was in the hundreds of Millions the third party vouched for both sides of the table and assured both sides the other is trustworthy enough to move forward with the deal that's the power of reputation and being connected you can get paid for bringing people to the table on a lower level there are plenty of examples of finder fees if you bring a great investment opportunity to an investor even if you don't have the money to put into it yourself you can still get a cash finders fee or a small percent of the outcome by the way Grant Cardone does this all the time where he cuts deals without using any of his own money he just leverages his reputation to retain 30 percent of the deals he creates for other people well now you know if you want to be rich you have to think and act like the rich do you have to see how the game will play out into the future the better you are at understanding what's happening behind the scenes the better the deal you'll be able to make if you're ready to move different deals moving forward write the word deal in the comments let's see how many of you learned something valuable here today

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Keywords: Alux, Alux.com, Alux Youtube, fine living, rich people, poor people, billionaire lifestyle, money motivation, things rich people do, things poor people do, poor life, how to become a millionaire, how to make money, rich people habits, how to invest, rich people investments, investments rich people make, invest like the rich, poor people investments, investments poor don't know, rich investments alux, alux investment video, good investment video, best investment video

Id: X5rVPc7lvjQ

Length: 24min 27sec (1467 seconds)

Published: Sun May 14 2023