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Of course, but you get rid of the problem and move on. If you are in the market long enough those great stocks can turn south and those companies that have problems , those problems are now your problems.
My first 2 years of my photography business I was talking with a colleague and telling her I had no problem clients. She said,”you mean yet”.
True enough eventually I did get them. But you deal with it and move on and in the scheme of things you come out ahead. You get a string of clients all ordering $4000 or more. Then eventually you get one that spends $100 or worse asks for a refund. You deal with it and continue on and in the end you turn a profit.
Over the last few years I have seen a lot of people on cd have been hooting and hollering on all the money they made in the market. Then the last few months it was bad and some people started freaking out. Was it the end of the world?
No, it will pass and even now it’s recovering.
You yourself told people stay the course, it’s a dip that will eventually recover. Look at the long game, not the short.
If you are in real estate, Getting a bad renter is just a matter of time, but it too is a dip like what you get in the market. I can’t understand why you continually bring up a good renter may possibly turn bad on you. You act as if once it happens it will always be bad forever for the real estate investor.
It’s temporary just like a bad run in the market. If you get a bad renter you can take action to remove them. In the market if it goes south, all you can do is sit on your hands and wait.
I get bad tenants still, but it’s all factored in and in the end I get them out and still at the end of the year make money. If a good tenant turns bad and it becomes that big of a problem like you say it is, then part of the blame is on you on being a poor real estate investor.
broad based index's and funds have no real individual company risk . never has the s&p 500 never not come back because of any company ..stocks that don't cut it are booted ... so individual company risk is never a problem long term . .
we have been lucky with tenants for the most part . we had just one tenant who turned bad. she got divorced and stayed in the apartment ..
she fell behind and it took 6 months to get her out , we had 8k in damage and renovation work to do and couldn't get a penny from her in the end .. so depending how many properties you have you can lose your income for quite a while in these parts plus have expenses to pay on the properties . a foreclosure we got in a tax lien sale in new jersey took almost two years from start to finish to acquire the property , evict the old owners , rebuild the damage in the house and finally sell it .
so we have found real estate to have all the risks and expenses of a business which is why it is nothing we want to do in retirement.
for me , real estate served it purpose but it's time came and went for us .
Last edited by mathjak107; 02-04-2019 at 02:41 AM..
Location: Formerly Pleasanton Ca, now in Marietta Ga
10,353 posts, read 8,581,497 times
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Quote:
Originally Posted by mathjak107
broad based index's and funds have no real individual company risk . never has the s&p 500 never not come back because of any company ..stocks that don't cut it are booted ... so individual company risk is never a problem long term . .
we have been lucky with tenants for the most part . we had just one tenant who turned bad. she got divorced and stayed in the apartment ..
she fell behind and it took 6 months to get her out , we had 8k in damage and renovation work to do and couldn't get a penny from her in the end .. so depending how many properties you have you can lose your income for quite a while in these parts plus have expenses to pay on the properties . a foreclosure we got in a tax lien sale in new jersey took almost two years from start to finish to acquire the property , evict the old owners , rebuild the damage in the house and finally sell it .
so we have found real estate to have all the risks and expenses of a business which is why it is nothing we want to do in retirement.
for me , real estate served it purpose but it's time came and went for us .
I’ve never had a tenant take that long to get out, even in California which is very tenant friendly.
Both the market and real estate are tools to achieve financial security and independence. You used both to achieve your position. When you are done, you are done. But having one bad tenant doesn’t invalidate the concept of real estate investing.
As I said, real estate can make financial goals much quicker albeit more effort. That’s why some people find re to be popular. Some people can take your advice with one bad tenant and simply decide it’s not for them. I have friends that say they lost their butts in then market, everything was great until it wasn’t. But that doesn’t mean investing in the market is bad, does it?
When you make a short statement that says a great tenant will eventually go bad you infer that a rental is doomed to failure.
But it’s been proven to be a great wealth builder hence it’s popularity.
I have friends that say they lost their butts in then market, everything was great until it wasn’t. But that doesn’t mean investing in the market is bad, does it?
Nothing that has happened in the stock market in the last 40 years would have caused someone to "lose their butts" unless they took extreme risks or had no idea what they were doing.
I imagine it's the same with the real estate market.
I’ve never had a tenant take that long to get out, even in California which is very tenant friendly.
Both the market and real estate are tools to achieve financial security and independence. You used both to achieve your position. When you are done, you are done. But having one bad tenant doesn’t invalidate the concept of real estate investing.
As I said, real estate can make financial goals much quicker albeit more effort. That’s why some people find re to be popular. Some people can take your advice with one bad tenant and simply decide it’s not for them. I have friends that say they lost their butts in then market, everything was great until it wasn’t. But that doesn’t mean investing in the market is bad, does it?
When you make a short statement that says a great tenant will eventually go bad you infer that a rental is doomed to failure.
But it’s been proven to be a great wealth builder hence it’s popularity.
it wasn't the tenant taking that long .. it was the court system taking that long to remover her .. she kept stalling and the court kept rescheduling because she had a young daughter .. in fact if i went after her for the back rent and damages she would have declared bankruptcy .
odds are the court would have given her another month on my dime to get her act together so my lawyer said forget it , it would delay things more.
i wish my stabilized tenants would not pay the rent ,, oh man i dream of that ..
Location: Formerly Pleasanton Ca, now in Marietta Ga
10,353 posts, read 8,581,497 times
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Quote:
Originally Posted by mathjak107
it wasn't the tenant taking that long .. it was the court system taking that long to remover her .. she kept stalling and the court kept rescheduling because she had a young daughter .. in fact if i went after her for the back rent and damages she would have declared bankruptcy .
odds are the court would have given her another month on my dime to get her act together so my lawyer said forget it , it would delay things more.
i wish my stabilized tenants would not pay the rent ,, oh man i dream of that ..
Every so often you get that one oddball event. What ever happened to her after you got her out..ever wonder? Or just give thanks she someone else's problem
But every time my photographer friend complains they just had a customer spend $200, I ask how the last 5 were and she says a $1800 avg, I just tell her you can't make judgements on one event ,you have to look at the whole.
Location: Formerly Pleasanton Ca, now in Marietta Ga
10,353 posts, read 8,581,497 times
Reputation: 16698
Quote:
Originally Posted by BigCityDreamer
Nothing that has happened in the stock market in the last 40 years would have caused someone to "lose their butts" unless they took extreme risks or had no idea what they were doing.
I imagine it's the same with the real estate market.
I think we can all agree when it come to shorter windows it might be possible.
Every so often you get that one oddball event. What ever happened to her after you got her out..ever wonder? Or just give thanks she someone else's problem
But every time my photographer friend complains they just had a customer spend $200, I ask how the last 5 were and she says a $1800 avg, I just tell her you can't make judgements on one event ,you have to look at the whole.
i have no idea , after she was out i think she may have gone to her parents in the carolina's .. my son and his girl friend took the apartment after that and then my ex has been there since .
Are there technical indicators that predict real estate market swings like they do stock market swings?
I do not think we have found indicators that are predictive of stock market swings.
But I do believe for real estate, indicators like building permits applications would be telling of future real estate market swings, in that an increase above the average would be good and a decrease from the average would be bad.
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