It just occurred to me that Be Excellent tried to predict my failure as a real estate investor when she is not a successful investor herself. She only THINKS that she is.
I guarantee she has put more cash in as down payments than she has made in rental profits, after all expenses.
And don't tell me sh1t about rise in property values because that's historically lower than the stock market, and you don't see any of it until it sells.
Sounds like she has a good income from her regular job, then doesn't really know how to invest it.
In other words, she has not even BROKE EVEN on all the money she has put in as down payments.
Firstly, should this thread not be in Wealth and Success or Anything Else? Just sayin.
Nobody has tried to predict your failure Richard. You need to develop a thicker skin. You spout off a lot of stuff for someone who has yet to complete your first deal. In Texas we have a saying:
Big Hat.....No Cattle.
Now. As to your statements about my affairs, please allow me to correct your inaccuracies:
1. My strategy as a real estate investor is entirely different than yours. I am a buy and hold investor with many units, some of which are owned free & clear. I buy for cash flow and don't count at all on appreciation. Any appreciation I happen to get is extra. My strategy is long term. House flipping is short term, but a perfectly legitimate strategy. Running down my strategy is silly. An investor picks a strategy based upon the individual needs/concerns of that individual. As a middle age woman with children approaching college age I have different priorities than a single young man with no dependents. I am looking to exit the rat race while maintaining my current lifestyle and affording higher education for 3 children. That's very different than someone getting started on a career path. My strategy is well suited to my needs and goals. I am on track and executing my plan as conceived years ago.
2. I earn a solid 6 figure income as a consultant outside what I earn as a real estate investor. I continue to work as a consultant to accelerate debt service and set aside funds for the higher education of my children. This in turn accelerates my ability to scale back working as a consultant on a regular basis, and that will allow me to pursue some other things I've wanted to do, but lacked the time, and it will also afford me the ability to enjoy more time with my children, my friends, entertaining, the boyfriend, etc.
3. I have properties that I have paid cash for that have paid back to me in rental income the purchase price in less than 2 years. I have properties with massive cash flows that required nothing down at all. Those sorts of terms create much higher ROI than the stock market but in order to get those kinds of returns you have to know what to buy, where to buy, and how to buy. You cannot accomplish that except in markets that meet very tight criteria. So I research my markets thoroughly and know what I aim to accomplish before I invest. I have private investors whose money I put to work earning a steady return with terms that are favorable to me and my goals and an income stream that provides them a nice return on investment, backed by a real asset.
So that in a nutshell is what I do. If all my clients were to let me go tomorrow my lifestyle would scale back a little while I adjust the portfolio, but I could already support my family on just the real estate if I had to. The only thing that would really change is my timeline to 100% equity. I'm in a good place honestly.
I might actually do a pure flip or two this year in fact. I know so many trades people from the rehabs I do in getting ready to rent and in routine maintenance of income property that I am considering it seriously. The thing about flipping is you have to pay closer attention to market movement and appreciation and find property where you can buy cheap and add value. I have my own funds as well as an investor on board should I decide to go that route. We shall see.
As always I wish Richard every success and I think his house is coming along nicely.
