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Old 12-25-2016, 04:48 PM
 
Location: Formerly Pleasanton Ca, now in Marietta Ga
5,509 posts, read 4,113,614 times
Reputation: 7315

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[quote=Burkmere;46614765]
Quote:
Originally Posted by aslowdodge View Post

Um, the Palo Alto comment was sarcasm which apparently you weren't able to pick up. LOL. Well, let's see how all the folks who buy a bunch of property now do with the 40 year bond bull ending.

For me, I preferred the mouse click and I'm retired now with no properties to take care of. Just free time.
But that's just me.
I knew it was sarcasm used as a way to discount what I said. I just figured I'd throw it back at you as something you said as just plain silly.

I realize you retired your way, I just presented an alternative with real estate to which you said it was way too much work and couldn't be done which is not the truth. had I had stable w2 jobs and income for 40 years I might well have done it your way. But circumstances gave me a much shorter timeline to accumulate a retirement income.
I too am retired, earlier than planned because of the real estate investments. I have properties that ultimately I am responsible for that you don't, but outside of once a month using online banking to check all my rental deposits and pay contractors for any work performed and maybe a few emails from my property manager, it takes minimal time. Then at the end of the year putting everything together for my cpa for my taxes.
I didn't plan for this to turn out that way. Circumstances left me without a job or the ability to get one . I had money to buy a business but after thinking it over I realized I understood real estate more than any franchise or whatever was out there. I did a lot of research and figured out I would move to an area that had rentals that cash flowed and my job would be to self manage them. If I spent 40 hours a week well then I just bought myself a job. As I got more efficient working with rentals I thought there was a good chance I could manage the rentals at way under 40 hours a week.
Long story short I bought in different areas that I had planned for and the property manager did so well in making it so easy for me not to do much of anything that I bought everything there. Since the property manager took care of pretty much everything I decided I didn't need to move to where the rentals were.

If you think that's way more work than you can handle, I would just say for the little extra work I do, it was worth the trade off of retiring years earlier than most people. I'll do those few hours in exchange for a year of time off earlier than my expected retirement age.

Last edited by aslowdodge; 12-25-2016 at 05:00 PM..
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Old 12-28-2016, 09:07 AM
 
22 posts, read 10,047 times
Reputation: 10
[quote=aslowdodge;46616468]
Quote:
Originally Posted by Burkmere View Post

I knew it was sarcasm used as a way to discount what I said. I just figured I'd throw it back at you as something you said as just plain silly.

I realize you retired your way, I just presented an alternative with real estate to which you said it was way too much work and couldn't be done which is not the truth. had I had stable w2 jobs and income for 40 years I might well have done it your way. But circumstances gave me a much shorter timeline to accumulate a retirement income.
I too am retired, earlier than planned because of the real estate investments. I have properties that ultimately I am responsible for that you don't, but outside of once a month using online banking to check all my rental deposits and pay contractors for any work performed and maybe a few emails from my property manager, it takes minimal time. Then at the end of the year putting everything together for my cpa for my taxes.
I didn't plan for this to turn out that way. Circumstances left me without a job or the ability to get one . I had money to buy a business but after thinking it over I realized I understood real estate more than any franchise or whatever was out there. I did a lot of research and figured out I would move to an area that had rentals that cash flowed and my job would be to self manage them. If I spent 40 hours a week well then I just bought myself a job. As I got more efficient working with rentals I thought there was a good chance I could manage the rentals at way under 40 hours a week.
Long story short I bought in different areas that I had planned for and the property manager did so well in making it so easy for me not to do much of anything that I bought everything there. Since the property manager took care of pretty much everything I decided I didn't need to move to where the rentals were.

If you think that's way more work than you can handle, I would just say for the little extra work I do, it was worth the trade off of retiring years earlier than most people. I'll do those few hours in exchange for a year of time off earlier than my expected retirement age.
Thanks for sharing this thread it has a been a great read. Sorry could not respond to your PM because of new member limits but this thread has been extremely helpful!
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Old 01-27-2017, 02:34 PM
 
1 posts, read 401 times
Reputation: 10
Lost big in the stock market crash 80's/90's. We own 3 residential properties and 1 residential on a 5 acre ranch. We have 2 rental homes (paid in full) in San Diego and Imperial County CA. We chose Housing Authority tenants as the homes are well taken care of and rent is paid timely. Total rental income $3500.00/mo. The rental $$ allowed us to buy a large 5 bedroom 3 bathroom home in an upscale neighborhood in SD during the recession 2010. We now use it as our vacation home but it can be rented out at $3000.00+/mo (mortgage $1200). I can potentially earn $6500.00/mo if I rented all 3 properties. We'll soon receive retirement pensions 100% health benefits and Social Security Benefits. We're happy and content with that. If we'd be in it for the $$ we could be raking in $16,000.00/mo. Money isn't everything nor does it guarantee happiness. Calexicans are simple folks.
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Old 01-30-2017, 07:50 PM
 
7 posts, read 3,444 times
Reputation: 10
Stock market. Hands down. Plus, you can also invest in Real Estate by investing in REIT stock and/or funds. No one will call you late at night because a pipe broke. No prop taxes, no insurance, no tenants, etc
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Old 01-30-2017, 08:22 PM
 
Location: Forests of Maine
30,693 posts, read 49,488,800 times
Reputation: 19136
Quote:
Originally Posted by Randyri View Post
Stock market. Hands down. Plus, you can also invest in Real Estate by investing in REIT stock and/or funds. No one will call you late at night because a pipe broke. No prop taxes, no insurance, no tenants, etc
And no tax benefits.
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Old 01-31-2017, 12:13 AM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
22,649 posts, read 40,020,325 times
Reputation: 23806
Quote:
Originally Posted by Randyri View Post
Stock market. Hands down. Plus, you can also invest in Real Estate by investing in REIT stock and/or funds. ...

...accumulation strategy?
It Depends:
REITs vs. Rental Property (Comparing Apples to Oranges)

wealth building? (holding / trading props) or investment? (Reit)

Lots of choices. Everyone of us will have different, priorities, strengths, successes, available options.

Best wishes on YOUR choice!


Retire early!!!
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Old 01-31-2017, 07:52 AM
 
Location: Formerly Pleasanton Ca, now in Marietta Ga
5,509 posts, read 4,113,614 times
Reputation: 7315
Quote:
Originally Posted by Randyri View Post
Stock market. Hands down. Plus, you can also invest in Real Estate by investing in REIT stock and/or funds. No one will call you late at night because a pipe broke. No prop taxes, no insurance, no tenants, etc
While you won't have to address these things yourself, investing in the reit means the reit has to deal with those and it will be reflected in the return which of course will be lower. Then you will also be paying for their administration and management which will lower your return. Also you will lose the tax benefits that you won't get in the any stocks.
It seems people like saying that people who own real estate get late night calls all the time. I've been a landlord for well over 30 years and have never had that. Maintain the property reasonably and you will never have that happen short of some natural disaster.
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Old 01-31-2017, 10:42 AM
 
60 posts, read 20,156 times
Reputation: 195
A wise strategy relies on alternative assets to diversify market risk. Real estate is an excellent alternative asset which is available to everyone. REITs are highly correlated to stocks, so do not provide the needed diversification. Direct ownership of real estate provides several tax advantages, the cash flow pays the costs and excess cash flow can be distributed for income.

The two main objections people offer are 1. dealing with toliets, tenants and trash and 2. losing everything in a correction. Item 1 can be mitigated by effective management. If you do it yourself, you must realize it's a business and your involvement will pay for itself. Hiring a manager is still not entirely passive, but reduces the workload. The second objection can be mitigated by maintaining a reasonable loan-to-value (LTV) position on the mortgage and keeping enough reserves on hand to weather any disruption.

Investing in private equity through LLC or other legal structures reduces the need for direct involvement in day-to-day problems, but also reduces control and returns. I am happy to pay the managers to handle all the problems and deposit money in my account every month.

Lastly, commercial real estate is completely different than renting out single family homes. There are many sectors to choose from (retail, office, industrial, warehouse, self-storage, hospitality, multi-family, etc.) the tenants usually pay all utilities, taxes and maintenance, the leases are typically iron-clad and provide substantially more security than single-family rentals do.
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