Milton
Thinks s/he gets paid by the post
- Joined
- Apr 18, 2007
- Messages
- 2,360
I assumed that the source was obvious; but thanks for providing the reference for those who are unfamiliar with The Bard.
I suspect that most people on this board are aware of the potential for leveraged real estate speculation to accelerate financial returns. It's just that it is a rather aggressive strategy that (as the past few years have amptly demonstrated) also has the potential for significant losses.I plan on using the power of leverage in real estate for this. I understand it is not the traditional way everyone is aware of. The fact that everyone assumes you need to save 95% of your salary and pray for a stock market miracle in order to FIRE with more money than you had while working seems like a lack of faith.... My goal is to build the equity in these properties without paying for it.
Do you like boats? You could set yourself up as a self-employed fisherman in one of the Atlantic provinces, and simply collect pogey.Many did not keep jobs for more than a few weeks a year so it is possible
I think your cunning plan is actually pretty good for someone your age! Wish I had done it that early.
But I would consider that handing it off to a property management company may be an oversimplification of the involvement. In my area I was able to purchase several great multifamily properties at cheap prices that were run into the ground by property management cos, losing tens of thousands of dollars annually paid out by the property owner. Even if you find a really good PM, there are still capital improvements/major maintenance projects,etc you will need to consider getting involved with/paying for.
Has anyone heard of anyone having a really good experience with a property management company?
I don't know anyone who has made significant money in real estate who didn't have to manage the properties themselves.
hits the nail on the head.I don't know anyone who has made significant money in real estate who didn't have to manage the properties themselves.
I think your cunning plan is actually pretty good for someone your age! Wish I had done it that early.
But I would consider that handing it off to a property management company may be an oversimplification of the involvement. In my area I was able to purchase several great multifamily properties at cheap prices that were run into the ground by property management cos, losing tens of thousands of dollars annually paid out by the property owner. Even if you find a really good PM, there are still capital improvements/major maintenance projects,etc you will need to consider getting involved with/paying for.
OP - that is kind of you to ask. In my situation it has been exciting, hard work, but extremely rewarding & made a lot of money as well, which is a good thing.Thanks for an actual response instead an attack of my character like I've received from several people here just for asking insight into my plan.
I'd like to over time collect several multifamily units. It sounds like you do the same and are very involved in the rental world. Can I ask what you think of using it to build wealth over 20-25 years? Do you manage rentals full time or do you maintain another job? I by no means am looking to "get rich quick." I have just been doing a lot of reading on how 'buy and hold' can be a very effective way to build more wealth than anyone could save out of their paycheck. I'm not necessarily even looking for a profit at the end of the month, just enough to pay all the bills and save some for emergencies, I just want the equity in the building.
Thanks!
Thanks for an actual response instead an attack of my character like I've received from several people here just for asking insight into my plan.
I'd like to over time collect several multifamily units. It sounds like you do the same and are very involved in the rental world. Can I ask what you think of using it to build wealth over 20-25 years? Do you manage rentals full time or do you maintain another job? I by no means am looking to "get rich quick." I have just been doing a lot of reading on how 'buy and hold' can be a very effective way to build more wealth than anyone could save out of their paycheck. I'm not necessarily even looking for a profit at the end of the month, just enough to pay all the bills and save some for emergencies, I just want the equity in the building.
Thanks!
My parents owned & self managed a rental until a few years ago, but they are getting up in years and the building they owned was clear across town from where they live. I think they had done several tax-free exchanges from when they started to the last building they self-managed, and the capital gains tax hit would have been substantial if they had simply sold it when they didn't want to self-manage any more, so they did one last exchange and hired a management company. I'll ask them for their words of wisdom on the matter.
I plan on using the power of leverage in real estate for this.
why not use REITs instead of actual homes to avoid liquidity problems?
Did they know that the capital gains rates are scheduled to go up next year (if most of the 2001 tax cuts go back to the levels they were at when it went into effect)?