My Plan B------> Real Estate

Prices are stable. More renters, not enough rentals. I expect east coast prices where I live to increase in 2016. Low vacancy rates. Minimum turnover.

 

Yes, rents are increasing......lets hope people caant keep affording to buy homes. Rents are great collect when others cant afford a mortgage. Once the FED raises rates 70% of the population wont be able to afford to buy.

 

Not only will there be fewer buyers, adjustable rate mortgages will increase in monthly payments. This will eventually lead to more foreclosures and more renters. When demand increases this allows landlords to become picky on the tenants who they will rent to.

 

Good thread! Some people actually have a brain in pharm!!

 

What broke posers ! If you are associated with Pharma DONT make any large purchases
Half you assholes on here are renters yourselves Who you trying to bullshit ?

 

Now get to work and SELL, before you go from renting to living under a bridge in a box.
No Joke !

 

It's great when the life long pharma reps can't believe or understand their peers are using the Pfizer job as a way to build a successful business. Not every rep has a goal to stay in corporate America forever. If you saw the assets I have acquired which produce me a huge monthly passive income you would ask me how to get started. Some of us stay in pharma because it is a 6 figure part time job. Others want benefits. Between pharma and my passive income I make more money per year than Directors, VP and other high level leaders. You don't need to believe me and you can continue to believe that a rep can only be a rep.

 

You're a troll bum who hangs all day on boards. You broke Lonely fool !! So Sad

 

I agree with this guy. In the last three years I finally bit the bullet and got back into real estate after the 2008 crash. I'm all about building income with property. If things continue at least through next summer I am on track to have spent about 400k on buildings that after renovation are worth over 800k and I should be near a passive income stream of 10k a month from 9 rental units in total. If my new construction flips workout I can put another 200K on the board by the end of Spring 2016.

I do know a lot about rentals and I'm not lucky I just drive all day long around neighborhoods and use my company vehicle to track down leads or I meet contractors or I manage my job sites. The job here gives an income and health insurance and I love it because without this job I wouldnt have been able to save money and buy property again. 2008 almost cleared me out. Anyone can begin again.

 

This thread is a microcosm of the country. Some reps look back and have very little to show for their work outside of their 401K while some own lots of property and businesses that make lots of money. The key indicator I see is mentality towards the end. Lots think the company will be there until the end and so will your job. But the last 10 years have really flipped that over on its head. Is anyone reading this in their mid 40's with kids who would be homeless in a year if they lost their job????? I was like that before I changed my mindset. Let this job be your avenue to other things. Especially rental income or small business ownership. I cant afford 1 house in my city let alone a portfolio. I called old friends and frat brothers to ask about affordability in their parts of the country. I found a city in Texas I can afford lots and lots of property in. I studied demographics for a year and met 15 Realtors on scouting trips to this city. I pay 290 bucks a quarter to fly out and see what I purchased and I walk through my houses with my property management company. I am buying 50-75k 3 bed 1 bath world war 2 houses twice a year for the last 5 years and all are mainly financed with my Pfizer quarterly bonuses money as down payment. Im making about 400 dollars a month from each house give or take. Now I can at least sleep easy at night knowing if I get laid off I have something in the chamber ready to fire and get me through the hard times.

 

Well done- let the naysayers starve when it hits the fan.....

 

I got a rental next to FDA headquarters And across. from the college our CEO graduated from.

 

Good for the real estate guys,, whatever you do , do something! Plan B , C , or D beats just plain old plain A, working as a rep....

This job is fantastic in giving you a decent salary and most importantly time to make a Plan B....whether real estate , small business or education, playing golf , you name it...Here's an ice breaker, ask your docs what side businesses they have....you might get a few surprise answers what they're up to..might even present an opportunity...sure beats asking doc for a signature and let'em know that your product is on some preferred tier.

 

awesome thread. So here's a newbie question. I have about $100k I can use to invest, maybe $200,000. It's not my 401k but some inheritance money. Everyone says start slow, but is that because most people can't afford to buy a larger multi unit or is because you need to get experience before you're ready to buy a big piece. Housing is cheap here; you can get 12-30 unit places for 500-700. I'm not planning on getting an apartment building right away but I'm wondering if it would be foolish to start with a four unit, or should I really go slower? I'm 45, 15 years in pharma and I can feel the clock ticking, I know I don't have as much time to ramp up my passive income.

 

It is hard to give advice without more information. How much time could you dedicate weekly to the real estate>? Are you handy - can you make your own repairs? What is your tolerance for risk? If you lost 1/2 of your investment money would you be devastated? Is your credit great and are you able to borrow and get low cost loans?

 

Time, im a drug rep, I have time. Handy, no, can't do much with that, I would need a handyman or prop mgr. Tolerance for risk, good question, in some ways very tolerant but I hate losing money. My credit is very good. We don't live above our means either. As I'm answering this I'm realizing I need to start out small. Just because I could afford something bigger than 20% down on some $75,000 duplexes around here, doesn't mean I should right away.

 

I think a duplex would be a good start. $20k to get in. Learn the ropes. Identify contractors who are fair and do a good job. Determine if the risk/reward is worth it.

My advice: don't buy the first duplex you see. Look at 10-20 properties. Identify 3 or more which are suitable. Low ball them with price. Do not be afraid you are going to hurt their feelings by offering a really low ball offer. The worst they can say is no. Remember you can always raise your offer. If they have existing tenants review the leases prior to making an offer.

 

Thanks. I am looking at my first property this week. I'm going to try and stay within 90 minutes from home, nothing further, preferably closer.

 

90 minutes is far. I feel that is too far unless you are buying a property that is under 30 years old or has been fully rehabbed. I am 30 minutes from the bulk of my properties and I think it is a little too far. I have many in that area so I am there 5 times a week. If you only have a few 90 minutes away you might be able to make it work, but if you are considering putting a portfolio of properties that far away you might want to reconsider.

 

DUDE........if things are that cheap use 70% of your cash on a big multifamily or even 50% to be safe as your down payment then keep the rest in an emergency account to make sure you are all good with tenants, repairs or problems. Then after a year pay down the mortgage more or keep it on the bank to be safe. You are golden