I like real estate as an investment, but most 1st time investors aren't prepared

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Jul 22, 2019
12:35:13pm

Sexytaxman Walk-on

I like real estate as an investment, but most 1st time investors aren't prepared

for what it takes to be a landlord.

For people without the resolve to be a landlord, or the time to make informed investment decisions — a Vanguard Index fund like VSTAX is a good move. As long as you're consistently contributing, you're going to get somewhere near average returns. In the long view, it doesn't matter if 2019 is the next 2008.

This message has been modified

Originally posted on Jul 22, 2019 at 12:35:13pm

Message parent changed from https://www.cougarboard.com/board/message.html?id=21988949 to https://www.cougarboard.com/board/message.html?id=21988663 by on Jul 22, 2019 at 12:36:03pm

Message modified by Sexytaxman on Jul 22, 2019 at 12:48:00pm

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Sexytaxman

Bio page: Sexytaxman
Joined: May 10, 2019
Last login: Feb 25, 2020
Total posts: 346 (5 FO)

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Messages

Author

Time

I think I was called a liar/ foolish last night in a thread. I'd like to reply.

grandpacoug

7/22/19 11:28am

I wonder how that compares to how Gates, Buffet, Job, et. al. have done.

BYU71

7/22/19 11:31am

I understood your short version, but a few corrections

Acorn

7/22/19 11:33am

You've obviously been successful. While I won't argue with your success, I will

Odysseus

7/22/19 11:51am

I will argue your $10k spare cash point.

Superman21

7/22/19 11:59am

That’s impressive

Odysseus

7/22/19 12:02pm

Great job. I also did extremely well on flips and much higher than 20% return!

grandpacoug

7/22/19 1:11pm

This is a great example of why the two options in the original OP are not

Acorn

7/22/19 1:38pm

We have a 401k and that gives me more stress than investing in real estate.

Superman21

7/23/19 12:10am

I like your diversification but would add one other area.

grandpacoug

7/23/19 4:36am

I agree with many of your points but disagree with many of the others.

grandpacoug

7/22/19 1:09pm

Now kids - that's how you do it.

7/22/19 11:51am

Great timing. Well done.

Alister Mackenzie

7/22/19 11:57am

You specifically stated "over decades."

tarzan15

7/22/19 11:59am

His timing was excellent. Good for him.

Backcountry

7/22/19 12:08pm

I responded to your board mail and am trying to catch up.

grandpacoug

7/22/19 1:18pm

They also need the $1.4 million in a down payment. Yes real estate is

7/22/19 12:10pm

I think the biggest misconception about RE is that it takes tons of money to get into. My first inv. purchase was $45K

mvtoro

7/22/19 12:51pm

No tax on your primary residence sale.

grandpacoug

7/22/19 1:26pm

Exactly. That’s why I wanted to sell now at no tax and move to a house I had bought at 2011 prices

mvtoro

7/22/19 1:28pm

I disagree completely. My first property was a duplex purchased with FHA loan

grandpacoug

7/22/19 1:21pm

I was just talking about your last purchase. You have to start somewhere.

7/22/19 2:00pm

I agree slightly. I was told the same thing in 2007 and accepted a challenge at

grandpacoug

7/22/19 1:17pm

Nice job.

Superman21

7/22/19 12:00pm

To me it's mostly about market movement combined with leverage. The difference for me in getting into RE 7-10 years ago

mvtoro

7/22/19 12:16pm

Hi Grandpa. Hope you're doing well. Looking forward in seeing

Mathew

7/22/19 12:22pm

Sorry. No kids or grandkids named Matt.

grandpacoug

7/22/19 1:22pm

I also think that maybe mormons are more averse to leveraged positions? I remember taking ACC200 from Norm Nemrow

mvtoro

7/22/19 12:23pm

Use some of that profit to upgrade your CB membership.

statguru

7/22/19 12:28pm

I would upgrade if I could but specific reasons prohibit it...

grandpacoug

7/22/19 1:24pm

grandmacoug still won't let you have spending money after all that?

7/22/19 8:59pm

GrandmaCoug treats me very well and that is not the problem.

grandpacoug

7/23/19 4:38am

I like real estate as an investment, but most 1st time investors aren't prepared

Sexytaxman

7/22/19 12:35pm

Completely agree.

grandpacoug

7/22/19 1:27pm

I think real estate needs to be apart of an investment portfolio. I am a big proponent for real estate.

specsauce

7/22/19 12:56pm

I also own in Grand Prairie and Mesquite. Those are not for sale.

grandpacoug

7/22/19 1:28pm

My brother is a police detective in Mesquite. I hope he hasn't had to come to any of your

specsauce

7/22/19 1:59pm

without reading all the responses above, 2009 was a good time to buy

7/22/19 1:18pm

Mostly winding down and selling things now. I have never stopped investing

grandpacoug

7/22/19 1:31pm

Props to you. Were those syndicated investments or all on your own?

Ash

7/22/19 1:39pm

I did limited partnerships back in the 70s and early 80s. That was the beginning

grandpacoug

7/22/19 2:11pm

Ash-I was a featured speaker at Bigger Pockets convention in Denver years ago.

grandpacoug

7/22/19 2:13pm

You're a rock star, man.

Ash

7/22/19 3:20pm

Darn, you should have bought AMZN in Aug 2008. You would be $10 million richer..

Hoosier77

7/22/19 1:41pm

I'm the one who indicated that the 20% return (cash on cash) figures as an estimate aren't a good comp

memento

7/22/19 1:50pm

I don't believe I ever said people should expect that return. I stated that it

grandpacoug

7/22/19 2:18pm

One more thing. Remember, I used a simple example with your 6.1% annual ROI.

grandpacoug

7/22/19 2:20pm

The 6.1% return wasn't "my" figure, it was the historical figure. And I'm sorry,

memento

7/22/19 2:35pm

I will stand by my 20% cash on cash return and leave it at that. Done it.

grandpacoug

7/22/19 2:43pm

No one is saying you didn’t do it, but that

memento

7/22/19 2:52pm

This is the Wall Street, financial world mantra

Deeppost

7/22/19 10:19pm

I was stating the same thing 40 years ago. It has not changed. Great points...

grandpacoug

7/23/19 4:41am

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