Jul 22, 2019
12:16:46pm
12:16:46pm
To me it's mostly about market movement combined with leverage. The difference for me in getting into RE 7-10 years ago
instead of stock is that
1) the leveraged position (mortgage) felt less at-risk
2) I had confidence in the ability to get cash flow out of the properties to service the debt at
3) historically low interest rates
Yes, you won't lose 100% of value in your RE investment, but you're also extremely unlikely to lose 100% of value in any reasonably diversified stock portfolio. So it really is about market movement.
For each of us who was buying in the market trough there was someone selling... probably at a huge loss.
1) the leveraged position (mortgage) felt less at-risk
2) I had confidence in the ability to get cash flow out of the properties to service the debt at
3) historically low interest rates
Yes, you won't lose 100% of value in your RE investment, but you're also extremely unlikely to lose 100% of value in any reasonably diversified stock portfolio. So it really is about market movement.
For each of us who was buying in the market trough there was someone selling... probably at a huge loss.
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- mvtoro
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7/22/19 11:51am
7/22/19 1:18pm
7/22/19 1:22pm
7/22/19 1:27pm
I'm the one who indicated that the 20% return (cash on cash) figures as an estimate aren't a good comp
7/22/19 1:50pm
7/22/19 10:19pm