Real Estate?? Your way out?

Quote

anonymous

Guest
So somewhere theres a huge thread about this here. Anyone think things are going to blow up soon and all our jobs are going into the toilet? I'm selling all my property this summer to buy more after the crash. Any thoughts?
 




anonymous said:
So somewhere theres a huge thread about this here. Anyone think things are going to blow up soon and all our jobs are going into the toilet? I'm selling all my property this summer to buy more after the crash. Any thoughts?
Click to expand...

That is a terrible idea. What if the market continues to climb for another 10 years? Now you've just taken a major loss on your gamble. Real estate is a notoriously bad investment with predictably bad returns.
 




To the previous thread: obviously you are not a business person but only a robot and know nothing about real estate. Do not comment unless you know what you are talking about; you do not.
 




anonymous said:
That is a terrible idea. What if the market continues to climb for another 10 years? Now you've just taken a major loss on your gamble. Real estate is a notoriously bad investment with predictably bad returns.
Click to expand...

A.) idiot - property creates more wealth for Americans that any other investment

B.) appreciation + cash flow from rents + depreciation + ability to write off expenses in the name of running a small real estate business = owning property the best long term investment you could ever make.

Retire with stocks only and it crashes then you are SOL. Own property and it's value crashes then you still live large because rents never go down so you keep cash flowing your lifestyle. Stocks are for idiots.
 




























I have about 45 properties listed currently valued around $6 million. I will lose on some win on some only makeing around a 3-5% return. It's a lot of work and not worth the headaches for only a 3-5% return. I am liquidating and looking into other opportunities.
 




anonymous said:
I have about 45 properties listed currently valued around $6 million. I will lose on some win on some only makeing around a 3-5% return. It's a lot of work and not worth the headaches for only a 3-5% return. I am liquidating and looking into other opportunities.
Click to expand...

Just about every other investment vehicle out there has a greater annualized nominal return and is far less volatile. People get so hung up on real estate and become blind to the fact its a terrible investment. Look up Endowment Effect.

That Rich Dad Poor Dad tho.
 




A previous poster had it close. Real Estate can usually bring you from 15-18% year to year returns. Its all based on the 4 areas of advantages spoken of above. THIS IS ONLY BUY AND HOLD APPLICABLE

1. Appreciation of the asset over time. If purchased wisely, like a stock, property in the right city and neighborhood has tremendous appreciation potential. ** My rule of thumb is think about how long I have until retirement and I look at a property and search its sale price that many years ago. I'm 25 years away from 65 so I look back 25 years and ask. Would I buy that townhouse today if I could buy it for 1992 prices. ITS ALMOST ALWAYS YES. BUY AND HOLD PEOPLE.

2. Rents - my opinion and research, take it for what its worth, is that rents in good neighborhoods go up and only up. Some years rents go up 5-10$ and some years it goes up 50$. Rents in good places NEVER GO DOWN. Buy in bad spots and rents may stagnate for years but usually wont drop.

3. Tax advantages - deductibility of depreciation is tremendous tax advantage. Usually I can end up paying no tax on rental income in the 100k per year range because of deductions and tax advantages.

4. Business write offs - Again the guy above has it right. Things I pay for that reduce my tax burden.
A. My wifes new car (we put an add on back window) call it mobile advertising and poof 30k is written off.
B. Any and all home computers or electronics
C. Any and all tools and home repair equipment
D. ALL THE FURNITURE IN MY HOUSE. I buy it and stage an empty rental for pictures. Do this 3 times for market to renters then all of a sudden the furniture is to old and gets retired ------> to my house to live forever.
E. Vacations - spend some time with a realtor in Orlando ----> take the wife and kids to Disney, because they are all employees of my LLC, its a paid company vacation with business purpose.
F. Vet Bills - my dog picture is on some of my rental signs. No the dog is an advertising tool. Have to keep it healthy ----> deduct all vet and food bills.
G. The list is to long to count
F. Bought 3 new suits for biz card pictures ---> this is how I get my work suits every two years.

Add up these benefits and as said above in a very nice way is that no matter what my rents keep coming in. Month after month. StocK market crash WHO CARES. I make rent on property I and my kids will never ever sell. Just Cash on Cash on Cash for the next 100 years.
 




Thank you very helpful. We started using our house as an Airbnb in May and have been making some nice bank. My territory requires overnight travel each week so my husband now goes along. This means we now rent the house on average 2 nights a week. Everyone who travels should take advantage of this Airbnb perk. Easy to sign up and our guests have all been pleasant and left the house in good shape.
 




anonymous said:
A previous poster had it close. Real Estate can usually bring you from 15-18% year to year returns. Its all based on the 4 areas of advantages spoken of above. THIS IS ONLY BUY AND HOLD APPLICABLE

1. Appreciation of the asset over time. If purchased wisely, like a stock, property in the right city and neighborhood has tremendous appreciation potential. ** My rule of thumb is think about how long I have until retirement and I look at a property and search its sale price that many years ago. I'm 25 years away from 65 so I look back 25 years and ask. Would I buy that townhouse today if I could buy it for 1992 prices. ITS ALMOST ALWAYS YES. BUY AND HOLD PEOPLE.

2. Rents - my opinion and research, take it for what its worth, is that rents in good neighborhoods go up and only up. Some years rents go up 5-10$ and some years it goes up 50$. Rents in good places NEVER GO DOWN. Buy in bad spots and rents may stagnate for years but usually wont drop.

3. Tax advantages - deductibility of depreciation is tremendous tax advantage. Usually I can end up paying no tax on rental income in the 100k per year range because of deductions and tax advantages.

4. Business write offs - Again the guy above has it right. Things I pay for that reduce my tax burden.
A. My wifes new car (we put an add on back window) call it mobile advertising and poof 30k is written off.
B. Any and all home computers or electronics
C. Any and all tools and home repair equipment
D. ALL THE FURNITURE IN MY HOUSE. I buy it and stage an empty rental for pictures. Do this 3 times for market to renters then all of a sudden the furniture is to old and gets retired ------> to my house to live forever.
E. Vacations - spend some time with a realtor in Orlando ----> take the wife and kids to Disney, because they are all employees of my LLC, its a paid company vacation with business purpose.
F. Vet Bills - my dog picture is on some of my rental signs. No the dog is an advertising tool. Have to keep it healthy ----> deduct all vet and food bills.
G. The list is to long to count
F. Bought 3 new suits for biz card pictures ---> this is how I get my work suits every two years.

Add up these benefits and as said above in a very nice way is that no matter what my rents keep coming in. Month after month. StocK market crash WHO CARES. I make rent on property I and my kids will never ever sell. Just Cash on Cash on Cash for the next 100 years.
Click to expand...

So the money isn't actually in real estate, it's in tax fraud!
 












anonymous said:
My accountant does. Not so sure about whoever you're using for all your bogus deductions. David Friehling?
Click to expand...

Explain to all of us why it's not legal. If you go grab any small business book at Amazon that has a focus on small business tax deductions all of these ideas are inside of them. I'm still not sure where you get your BOGUS ideas from.
 












Top Bottom
Back
Quote