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My residential side is mostly now single family or 4 units and under.
More than a few have decided to get out... one of my older friends said the handwriting is on the wall in the SF Bay Area... so he sold/exchanged his 9 single family homes... all rentals some with the same tenants for years and moved to commercial mostly out of California... so 9 rentals less as they become owner occupied... only one was bought by the existing tenant.
I expect to see a decline in the number of single family rentals as the market adjusts...
This is why I think the proposed rent controls are flawed if they apply to single family homes.
originally it was a choice to be stabilized . but if you refused your tax status would be changed to rediculous rates so building owners agreed to join. remember they were told they would always get fair rents , it was only to prevent gouging .
well they all got duped , so the co-op craze in the 1980's was their light at the end of the tunnel
As Capone said...you can get more with a kind word and a gun than with a kind word alone.
Join my low rent club or I'll be asking for additional protection money....
Same organization. Same tactics.
I'm back on board to hating it again.
To your later comment. It makes complete sense that most would be renters. I'm sure the city did nothing to ensure these rent controlled unit had cost controls. Owning property almost sounds like an lifetime obligation to serve someone there. Democracy at its finest...a wolf, fox and pig sitting down to decide what's for dinner.
it goes both ways , like the stock market . you can win and you can lose . i love stabilization as it created opportunity for us to make a lot of money .
but the negative side is you never know how many tenants will stay and not move out or take a buy out offer . we were lucky in our figuring that most will not live there when the pay checks stop . 7 out of 9 is a good record .
Not that everyone gets rich from it, but real estate is seen as a practical realistic way to get a second income or become independently rich. As already stated.
Most millionaires got their wealthy from... Real estate investing.
Quote:
Over the last two centuries, about 90 percent of the world’s millionaires have been created by investing in real estate.
For the average investor, real estate offers the best way to develop significant wealth. As with any and all forms of investing, it is best to get started early with real estate so you can put time on your side. A good way to begin is to buy your first primary residence.
My first job was a after school gopher at a Specialty Auto Restoration Shop... no family connection... just offered the job one day as I was a regular customer restoring my Model A at 13.
Anyway... most all the clientele were well off... it was fascinated hearing their stories and just about all were more than willing to offer advice.
Almost all had Real Estate as a significant portion of their wealth...
So their advice was to start young and keep at it... and this was a big part in my determination to buy my first home in the Bay Area at 22... even if all I could afford was one scheduled for a condemnation hearing...
Five rental units was the magic number to provide income and it took me to age 27 to reach that... a single family home followed by a duplex followed by a tri-plex... move in, renovate... repeat.
It was a lot of work but also rewarding... went to my 5 year reunion from High School as a home owner... free and clear... not that any of them would have wanted it but it was a springboard to growth...
In hindsight… I should have fully stayed the course... even if it was just adding a new property every 18 to 24 months... in a moment of weakness and wondering what the corp world would be like I accepted an offer to be Engineering Director at a local Hospital... thankfully I still kept the Real Estate going but at a much slower pace.
To this day... strangers and friends still ask if I inherited the properties or come from money... all I have to do is show them a picture of house number 1 and then they understand.
It's totally alien to my SFR in suburban L.A. However at least I have a private park, almost 1/8 acre. It's my back yard!
ETA: I just had a look at the floor plans, and wow! I can't believe how small those units are! I bet I could fit 3-4 of them into my SFR's square footage! I'm wondering how much bigger they are than my old 32' 5th wheel trailer.
Quote:
Originally Posted by Ultrarunner
My first job was a after school gopher at a Specialty Auto Restoration Shop... no family connection... just offered the job one day as I was a regular customer restoring my Model A at 13.
My first job was as a wild game collector, at about 13-15. I used to catch lizards and garter snakes camping with my parents. One day while home I walked into a pet store and saw they had snakes. I told them I could bring them garter snakes and we negotiated a price. For a few years I'd make a few bucks each family camping trip, already loving my job! I was catching them anyway, I just quit letting them loose!
My next job, a high school buddy's dad was a manager at a machine shop. Me and my buddy started working Saturdays, $1/hour, and that's before tax deductions! I would get all covered with that lube stuff the machines splash you with, sort of milky water mixed with oil (and metal burrs). I took it for 3 Saturdays before I told them I wouldn't be back!
I think a lot of us started earning money young, using our cleverness. I've always had little businesses here and there in my life, sometimes as a sideline, and sometimes my only income when I couldn't find engineering work.
There is a mindset that some people have. You work because you love seeing your labor or investment turning into cash! It's addictive!
Last edited by Lovehound; 10-20-2018 at 10:32 PM..
Not that everyone gets rich from it, but real estate is seen as a practical realistic way to get a second income or become independently rich. As already stated.
Most millionaires got their wealthy from... Real estate investing.
it is not that real estate is full of lucrative profits that make people very wealthy .
those who get very wealthy from real estate like my partner generally have a real estate business . it is not something they dabble in . they don't just buy a rental ,cross their fingers and hope it goes up along with rents . it is a full blown business with deals and situations most will never be privy to . other investing like stocks are generally passive investing.
passive investing is where we have our money work for us while we work for our money doing other things .
Location: Formerly Pleasanton Ca, now in Marietta Ga
10,351 posts, read 8,574,670 times
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Quote:
Originally Posted by mathjak107
it is not that real estate is full of lucrative profits that make people very wealthy .
those who get very wealthy from real estate like my partner generally have a real estate business . it is not something they dabble in . they don't just buy a rental ,cross their fingers and hope it goes up along with rents . it is a full blown business with deals and situations most will never be privy to . other investing like stocks are generally passive investing.
passive investing is where we have our money work for us while we work for our money doing other things .
Yes, but most of us will never become as wealthy as you mentioned no matter what we are doing. The goal is to get enough money to retire on and live comfortably.
You can certainly work your whole life and probably put money aside for retirement over the life of your career.
Real estate even if not on a large scale as you speak can still add to that or even accelerate it by a whole lot.
My acquaintances could have continued working their jobs and did nothing in real estate and worked for another 20 to 30 years and retired with their nest egg. They chose to work with real estate while still working their jobs and within 5 years were all able to be financially free and quit their jobs. They have the cash flow they would have had if not more now instead of waiting 20 to 30 years and are able to enjoy it at a younger age.
No one I know except one person is privy to special real estate deals. All of them started with a single rental and worked up from there. As time goes on you start to make connections and start to get access to things most of us aren't even aware of. I know a few younger people who now own multiple apartment complexes, but they started out with just a single house as a rental.
Imho it's no different that putting in the extra time to get an advanced degree to reap the rewards of a better paying job.
my market investments blew the doors off our conventional real estate investing , which is based on collecting rent and appreciation here in queens .
but the special situation stuff blew away the equity investing . but that was not a typical real estate investment , this was a business and it ventured in to the pool the pro's play in .
I just lost my interest in being a landlord. Yeah I made money but the PITA wasn't worth it. I'll gladly accept less profit in an investment that doesn't eat my time. If nothing else, maybe T-bills, CDs, or that ilk. Try to stay ahead of inflation. Better than dealing with lame tenants.
One of my landlord buddies just has the knack for it; I don't. (He's rich.) Another buddy and his brother have owned a couple apartment buildings in W. Hollywood for couple decades, making enough for professional property management, both brothers are rich.
I just lost my willingness to deal with tenants, and was not making enough profit to hire professional management.
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