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

Being a Pharma rep and spending all the free time (Pfizer time) to build a business like rentals is how to reach freedom by eventually leaving pharma. Took me over 10 years to build a rental business which produces more than I made in pharma. It is all priorities. I gave up all the free time in my 30s to be financially free the rest of my life. Imagine a cash register that pays you more money than you need every month by doing minimum work. No suits, no meetings, no feeding ungrateful people. That's what is available in any type of business if that is your priority.

 

THIS, is what most people dont get. Real Estate is better than any stock market BS. Because when you own rentals the price of the building may go up and down here and there but almost universally your rents never diminish. With stocks your return is always contingent on the value of the your portfolio but real estate is so much better. I had 4 properties in 2008. The value was cut in half of what they where worth at their peek. I had good cash flow and raised rents in the recession. Now my values are up again but I had 7 years of good rents coming in while I waited.

Thats why you own property. Rents never go down and you always make BANK.

 

Real estate is a LOT OF VERY HARD WORK so do not kid yourself. You will work for that money. Tenants of any kind are demanding and you are like a doctor CALL WHENEVER so do not kid yourself about real estate. It is an excellent investment. I just found out my house has appreciated 25% each year since 2010.

 

Agree its hard. Would you put in 10 years of hard work using your own time and Pfizer time to be able to retire in your early 40's? How about having a monthly profit that is about double the average Pfizer rep compensation? Still receiving calls from demanding tenants but no more demanding managers. It all depends if you believe sacrifices now are worth the pay off later. I did.

 

Real Estate , your own business, stocks...its your money and time... all have risk/reward but you're the one driving the ship and seeing into the future (you'll find out real quick how that rental or sub franchise is doing).. with pharma or most corporate jobs you really don't have a clue what's coming.

 

Total BS on appreciation of 150% in 6 years. You just gave your stupid self away. Get back in your double wide in that trailer park.

 

So what do you RE investors think will happen with your tenants in the government enacts forbearance and you can’t evict someone if the stop paying rent?

 

Bingo!

 

I'd like to buy my first rental property, but my problem is I travel too much and do not live within my territory, so unlike a pharma role, I don't have a lot of spare time. I'd most likely hire a firm to handle the management for me. I've been told that can be anywhere between 8-10%. I'm still learning how to spot a good deal. Seems most of the places I see on Zillow and whatnot are overpriced considering the amount of cash flow I'd be receiving in rent versus their asking price.

 

Well lotta frickin DA!!! Are you being sarcastic? Please tell me you are... you dont need to buy a rental...... WE ALL WISH WE COULD SHIT GOLD. Reread your post outloud in the mirror!!! Go home and buy a CD.... Go put that money in the bank. Until you are ready to clean a toilet with a baby diaper full of shit clogging it at 830 pm on Sunday nite girls nite out dont buy a rental. Buy a REIT. I should charge you for that peice of wisdom....

 

That may be the funniest and most honest answer to a question on here ever..... somebody is an idiot for the reference post!!!

 

I personally don't think owning multiple rental properties is idiotic by any means. The cash flow generated is more dependable than an REIT. Now do you have to deal with a lot of shit if you are managing them yourself? Absolutely. But is it idiotic? No.

 

Owning real estate can be a great way to diversify investments. Rental properties are work, but they are an inflation hedge and a way of writing off lots of expenses. Times like these are a reminder that you should avoid leveraging too much debt for investment real estate because you might not be able to break even during tough periods.
Landlords will need to take each case on an individual basis - but if the tenant cannot pay rent, their obligation should roll forward with no penalty. They put down a security deposit that can apply toward rent, if need be. It is an uncertain time for everyone.

 

The trick is to have a ton of cash waiting to pounce on a property in an up and coming gentrified neighborhood that takes a dive in a down market.

Rent income is pure income and the property values will increase over time.

Is it easier said than done? But it can be done.

There’s always “wholesaling”. Contract to Buy a shitty broken down dump and find an investor to sell/assign the contract. You take your money at the closing.

 

You all watch too much HGTV

 

Maybe so, but it’s nice to have $10K in mailbox money each month.

 

real estate is a bad investment. 3-5% net return after headaches. Stocks always better.

 

You are correct, unless you swoop in on super deals. For example, I bought a house in 2006 for $330k. In 2008 The market collapsed and my brand new neighborhood collapsed even further because most buyers were investors and defaulted on these new houses. My value dropped to, according to Zillow, $130k. Most Other homes in my subdivision dropped to around $70k. They sold new for $250k or so. Half were empty and were up for shortsale. If I didn’t put all of my cash into the down payment, I would have bought 2 or 3 of those brand new homes for $50k or less and rented them out at $1500/each. Today those homes are selling for $225k+.
Imagine, $1500x3x12 for 11 years is $594,000 in rent alone with no mortgages. Subtract expenses and call it $500k net before taxes. Now look at the profit of $200k for each house if I sell them. That’s $600k before taxes and closing costs, but I could 1031 exchange them and defer taxes. So as a side gig for 11 years I would have gross profited $1,194,000 on a $150k investment.

Instead of such brilliance, I could only rent out my house and after the rent paid me back my losses and the value came back, I sold it and broke even. Pulled my $150k down payment out and just bought in this downmarket like rich people do.

Hold your cash for crashes and pounce. I learned my lesson well.