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

43, at Pfizer for 10 years. I own 9 houses and 2 multifamily. I cheated and inherited the multifamily at 22. So I buy my SF houses when I get 50% down payment saved up. I also live a very affordable southern state. I profit 7,300 a month take home.

Whoever the people are that are talking about their real estate being a mental cushion against layoffs is right. This Allergan thing burns me but I know worst case scenario is that I can literally walk away and not work anymore and I could squeak by on my cash flow.

 

Awesome. You have a nice portfolio. Did you think about taking the multi unit you inherited and getting a line of credit on it to buy more houses? The most valuable asset is Pfizer time and you can use their time to continue to build your portfolio.

 

No I wouldn't get a line of credit. I want zero debt so barrowing against a paid off asset isn't my style. I have a home equity loan to get in for some minor repairs but that won't go over 8k at any one point. I don't take on debt that takes more than a month to pay off. I did forget to mention that I have 10 year mortgages on my properties. My local bank helps me set them up internally. If I had 30 year notes I think my monthly profit would go up by 60%. I just can't pay that much intrest.

 

Based on this thread Pfizer sales reps own more real estate than Donald trump . You guys are so full of shit ..

 

They couldn't compare to a pimple on Trumps Ass. They watch too many infomercials.

 

I dont get this quote fella. Owning houses as an investment vehicle is older than dirt. Its normal for many people. Most reps here work outside of the most expensive markets in the country. I follow this thread daily and I never see people who may own multiple houses in San Fran, NY or LA. Middle America locations make owning property really easy. Add in sales reps that can put together a few years of 150K+ and you end up with some quality capitol to spend on property. Pay one house off or put a large amount down payment and you have the groundwork for buying 2 more and repeating. I am surprised at the amount some people own but I'm fresh out of college what do i know. This board is why I gutted up and flipped a house this year and bought my first rental with the proceeds. Stop being a jerk.

 

I flaunt this fact in my managers face. I let him know about my houses all the time. Its my investment path and he cant tell me what to do with my money like he cant tell me when to sell a stock. I disclose everything so they cant come back at me like I was hiding some second business. Call HR and tell them what you own and ask them. Then tell your manager what they said. They will tell you its OK.

 

Being a pharmaceutical rep for over 18 years you can break down pharma reps into a few categories. I will not judge any category for right or wrong but in my experience this is what I found.

1. Largest category. These reps think the money the make being a rep is great. The freedom is great. They can take their kids to school, go to the gym at 3:00, have lunch with a friend. They take their time at the offices, they talk to other reps, they stop for coffee. They are in no rush and feel they need to be in the field 6+ hours a day. These people live a good life and spend most of what they earn.

2. Smaller category. These reps want something more. They read investment books. They save some money. When it comes down to it mutual funds and 401k are their only risks.

3. Smallest category. These reps realize Pfizer time is valuable. They start early, have a daily plan, get done and use Pfizer time to their advantage. They do their job well but efficient. They don't get into long discussions with the staff, they don't care about other reps and they eat lunch in the car. From 1:00 on becomes investment time. They are doers. They buy property, stocks, etc and invest the profits they make. They are always looking to learn and looking for the next investment. They realize Pfizer is a stepping stone to better things. They appreciate the Pfizer money but realize Pfizer time is as important. Management opportunities sound interesting but they rarely take them because they are giving up freedom. They will stay at Pfizer as long as they need to or a manager requires to much of them. There will always be doubters, people calling them liars but at the end of the day it doesn't matter. If the end result is financial freedom this is the best category. If the end result is knowing the office staff cats name or who the Merck rep is dating then category 3 is not for you.

 

u joke and a girl

 

Winner right here boys.

 

I have been here 12+ years. I'm glad I made the dumb error in thinking a dividend portfolio and few houses in my bag could get me out before I turned 50. I was right. This guy is correct. I'm one of two people on my sales team that think this way. Its been nice having someone to talk with and go see property with during the day. My dividends keep paying a slow steady return and my houses grow yearly. Many years ago pharma looked like a cake walk to retirement. Now with 2008, downsizing and right sizing and now Allergan I'm glad that I have been in category 3 all this time. I may not make it here at Pfizer many more years but I dont have to have many more years to get to my goal. Make a plan and stick with it and you can find success.

 

“Beauty" and sexuality are both commonly misunderstood as some transcendent inevitable fact; falsely interlocking the two makes it seem doubly true that a woman must be "beautiful" to be sexual. That of course is not true at all. The definitions of both "beautiful" and "sexual" constantly change to serve the social order, and the connection between the two is a recent invention.

 

Geez, you don't read this thread for a few weeks and it blows up. Here are my stats. 27 I live in a duplex I bought as my own home using an FHA loan. So far so good. I might do this again in a few years. Renting the downstairs unit has been easy so far. I only pay 100 a month on my mortgage because of the rental cash flow from unit 2. Pfizer sucks ass

 

People are like stained - glass windows. They sparkle and shine when the sun is out, but when the darkness sets in, their true beauty is revealed only if there is a light from within.

 

Sounds like a plan...I took the classes many years ago at a community college but never sat for the test because life got in the way! Interested in knowing who you took them on line through...thanks for your help!

 

I cant contain myself. If you where in the market from 2000 to today your returns would dwarf anything you put into property. Wake up dummies. I make more cash sitting in my paid for car than you do with your doofy sweat equity.

 

So let's explore your statement. Let's use the Dow as our benchmark. In January 2000 it was 11,000 (rounding) and today is 17,000 (rounding). So it increased 65% in 15 years.

An example of mine is I bought a home in 2002 - my 2nd investment home for $35,000 cash. Put $15,000 cash into it and sweat equity. Current market value if I wanted a quick sale is $110,000.

I receive $1200 a month in rent or $14,000 a year. After taxes, insurance and average expenses I make a profit of $9000 a year (on average).

In 13 years I made, after expenses, $117,000 off my $50,000 investment and I still own my $50,000 investment which is now worth $110,000.

So if I sold today my profit would be $117,000 + $60,000 (increase in value)= $177,000 off a $50,000 investment. My time is not calculated as an expense. Taxes will need to be paid off profit but depreciation deduction is large.

If I took the same $50,000 and put in Dow it would be worth $82,500 . Long Term tax rate would be paid if sold. I would receive some dividend payouts in the 13 years so you might add an extra $1000 (2%). A total profit of $33,500


So which is more $177,000 or $33,500? Please correct me if my calculations are incorrect .

 

Ha Ha, you got schooled son.

 

Here is my reason for not owning any stock at all and only owning houses. BTW u post a lot on this thread and really enjoy it.

My reasoning is that in retirement real estate provides constant cash flow monthly coupled with continual appreciation and inevitably paid for asserts. The rents always go up and so does appreciation (over the long term; in general)

Stocks on the other hand become a finite resource once you retire. No more money gets put in the pot and the money you take out is limited and if you take out to much that's it you are done. The returns vary and if something like 2008 happens you could loose it all. Versus real estate where the value of property could drop but the underlying rents remain the same.