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Location: Was Midvalley Oregon; Now Eastside Seattle area
13,077 posts, read 7,519,082 times
Reputation: 9798
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Quote:
Originally Posted by aslowdodge
What happens if no marriage?
Plan B: out-of-wedlock or "illegitimate" is OK.
Plan C: find someone who wants to a sperm donor (not me).
Plan D: old joke on CollegeConfidential that I was trying to get a hookup with DD's of CC. Probably not going to happen on CD.
Plan E: Political causes (this has been moving up)
Plan F: His cousins.
Location: Formerly Pleasanton Ca, now in Marietta Ga
10,351 posts, read 8,574,670 times
Reputation: 16698
Quote:
Originally Posted by mathjak107
there is no such thing as anything worth doing that is truly passive .. even indexing requires rebalancing , it goes with the territory ...
with investments , time is always your friend . this is why i don't like to see people channeling to much in extra payments in to their homes to pay them off faster , before they will p/u the investing .
they put a lot of pressure on their time frame being a good one by delaying kicking in to high gear until years later . the greater the time you give yourself the greater the pressure is off to have better then average returns to make up for time .
we owned a load of real estate through the years but not something we want to have being retired . especially because here it can take months to get a tenant out and expenses run high as well as so do legal fees . eventually the best tenants can go bad from - divorce-illness- job loss .. no matter how you vet them .. .
If time is your friend then I think I had no friends so I had to do something different. I agree paying off a house when you can get more on investing doesn't make sense, but we've agreed on that before.
Bad tenants can come up and you lose money, stocks can drop and lose too no matter how much you research them, so tenants are no different then the ebb and flow of the market. Both of us have that factored in already
Location: Formerly Pleasanton Ca, now in Marietta Ga
10,351 posts, read 8,574,670 times
Reputation: 16698
Quote:
Originally Posted by Cabound1
Did you buy during the 2006 - 2012 time period?
I have a friend here in the Bay Area who bought 4 properties for a total of 600k, cash, in 2010-2011. Cash flow was over 100k. He decided to unload them all over the last year. Over 2M total. I think he sees another downturn in real estate prices. Knowing him, he will stick the money in CDs and rebuy more properties if prices crater again.
I don’t have what it takes to be a landlord, but for those who do, real estate prices do ebb and flow, and they do it so slowly, that a killing can be made as long as you have cash on hand when prices are low. You don’t risk missing the handful of big movement days like you do in the stock market. And you can get out “in time” if the **** hits the fan.
Lots of positives to it if you can deal with physically owning properties. I can’t. I can’t even stand owning the roof over my head.
Unfortunately my job/business was dying off at the same time. I did catch one at the end around 2014. Sold it a year later for almost 250% more. Even if it didn't go up it handed out a nice 10% return in income each year and I spent maybe 15 hours there over the course of a year running it.
I met a guy who bought some cheap homes in Oakland in a not so great area all in the 100K range. He bought 15 of them. I see they are worth about $450K now. Nice little 5 million dollar profit. The area still looks sketch to me.
I wish I had the temperament, patience and handyman skills to be a landlord. At least I will never have to deal with tenants, court cases chasing my money, and crooked contractors ripping me off for things that have to renovated. So time consuming and stressful owning property.
Location: Formerly Pleasanton Ca, now in Marietta Ga
10,351 posts, read 8,574,670 times
Reputation: 16698
Quote:
Originally Posted by leastprime
Plan B: out-of-wedlock or "illegitimate" is OK.
Plan C: find someone who wants to a sperm donor (not me).
Plan D: old joke on CollegeConfidential that I was trying to get a hookup with DD's of CC. Probably not going to happen on CD.
Plan E: Political causes (this has been moving up)
Plan F: His cousins.
If time is your friend then I think I had no friends so I had to do something different. I agree paying off a house when you can get more on investing doesn't make sense, but we've agreed on that before.
Bad tenants can come up and you lose money, stocks can drop and lose too no matter how much you research them, so tenants are no different then the ebb and flow of the market. Both of us have that factored in already
broad funds have never not made money over the long term . in fact a 50/50 mix never lost money over any 10 or 20 year period . anyone who owns diversified funds has never likely lost money by markets staying the course , they only lost if they exhibited poor investor behavior .
Location: Formerly Pleasanton Ca, now in Marietta Ga
10,351 posts, read 8,574,670 times
Reputation: 16698
Quote:
Originally Posted by mathjak107
broad funds have never not made money over the long term . in fact a 50/50 mix never lost money over any 10 or 20 year period . anyone who owns diversified funds has never likely lost money by markets staying the course , they only lost if they exhibited poor investor behavior .
You bring up that even the best tenants will have problem eventually. Guess what, the market will have a bad run eventually too. Over the long haul you say the market wil make money. Guess what , so will real estate. Having a bad tenant is not a permanent situation. You get rid of them, get a different tenant, just like when you reallocate your portfolio.
Guess what, I’ve had a lot of good tenants that never had job loss or death while they’ve been with me. If they did, they moved on and I got another tenant.
You said the market only lost if the person exhibited poor investor behavior. Real estate only loses if the person exhibits poor real estate investing behavior.
I also didn’t have 20 years to wait for that fund to break even orvshow a plus, I was too old for that. I needed money now.
Show me how my 650k that is worth nearly double now and throws off over a $100k a year in income after a five period can be beaten by the market and I’ll listen more intently.
Location: Formerly Pleasanton Ca, now in Marietta Ga
10,351 posts, read 8,574,670 times
Reputation: 16698
Quote:
Originally Posted by Stockyman
I wish I had the temperament, patience and handyman skills to be a landlord. At least I will never have to deal with tenants, court cases chasing my money, and crooked contractors ripping me off for things that have to renovated. So time consuming and stressful owning property.
I’m not going to lie , it isn’t easy at first. You have to learn the ropes and research your market. In the 5 years I built up my portfolio I was not that involved.
All my property is out of state, so I can’t effectively deal with all that you listed. My property manager does all that you listed. Dealt with tenants ( I never met them), if it gets to court cases, the attorney and her deal with it. Rehabs and renovations, she did scope of work and hired people. She found tenants and collected rents.
I already mentioned I spend about an hour a month dealing with the whole thing.
Yes I pay her to do these things, but it’s factored in. I can make more if I did it myself, but I make a more than comfortable income while still paying her to take care of it. I like my free time
Some of the houses I wound up getting for free after they were rehabbed, appraised for higher value, and cash out refinanced where I got all my money back out and then some, but still have a 30 percent equity position in them. Plus they still cash flow a few thousand a year and with depreciation I don’t pay income tax on few thousand.
Those houses have an infinite roi since no money of mine is invested yet every year they generate a cash flow.
When you put money in them market you don’t deal with day to day issues of the companies. You don’t deal with strikes, logistics, etc of those companies. It’s similar for me in that I don’t deal with day to day issues of the rentals either.
If you would have timed the equity markets right.... gotten in in March 2009, and out in mid-2118, you probably would have done better.
I think you need good timing in both markets, but that’s where real estate is easier to invest in.... it moves glacially compared to equities..... much easier to hit highs and lows. It’s just the buy and hold part that sucks, imo. But if it works for you, great. You won’t ever have to wake up to seeing your net worth fall 25% in one day, like I’ve seen a couple times now with equities (I’ve also seen it up 25% in a day several times).
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