Is Investing In Real Estate Worth It? Consider These Things
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- Опубліковано 19 лис 2022
- Is Investing In Real Estate Worth It? Consider These Things
Real estate investing or buying rental properties can be an investment with returns far exceeding what you’d typically earn in the stock market. There are many benefits to buying rentals but is the potential for extra profit worth the risk and headache of being a landlord? How exactly does buying property compare to investing in the stock market? With huge variations in returns you could earn in addition to the amount of time spent on each investment choice, carefully consider the better place to put your hard earned money.
I wasn't financial free until my 50’s and I’m still in my 50’s, bought my third house already, earn on a monthly through passive income, and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing in the financial market is a grand choice I made.
I understand that tomorrow isn't promised to anyone, but investing today is hard for me now because I have no idea of how and where to invest in. I would be happy if you could advise me based on how you went about yours, as I am ready to go the passive income path.
@@taxuantrung3268 Even with the right technique and assets some investors would still make more than others, as an investor, you should’ve known that by now, nothing beats experience and that’s final, personally I had to reach out to a market analyst for guidance which is how I was able to grow my account close to a million, withdraw my profit right before the correction and now I’m buying again.
@@yoonlead please who is the expert guiding you? i have lost so much as a beginner🥺 investing into stock without a proper guidiance of an expert.
@@laurasmith7156 The adviser I'm in touch with is STEINER CHIARA SCHMID. She works with Merrill, Pierce, Smith incorporated and interviewed on CNBC Television. You can use something else. for me her strategy works hence my result, she provides entry and exit point for the securities I focus on.
You can glance her name up on the on google web and verify her yourself. She has years of financial market experience.
Real estate investors losing money is music to my ears. They are a major reason why the real estate market is the way that it is now.
Actually, you can blame the Fed for manipulating the market by keeping interest rates artificially low for the last decade. They created this mess and now there's no way to fix it without completely crashing the market. And I'm OK with that.>>
You can also blame the Fed but most of it goes to those investors that have made life difficult for the 61% of people that are living paycheck to paycheck and can’t afford to buy a home because of these investors that gobble up the properties and jacking up the rent and buying price for a home. That’s BS.
He's mainly talking about CA real estate in the Bay Area for this video. Many real estate investors in other parts of CA, and even other states, are still doing well. In CA, I'm sure the lack of supply to meet demand, rising construction costs, extremely long process to approve housing projects, and high property taxes are just a few things causing high housing prices in the state. It's bias to just use real estate investors as the scapegoat to "a major reason why the real estate market is the way that it is now".
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment...
Please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with this person.
I’m a small landlord/real estate investor.
3 properties.
Let me just say. They are a f***ing headache.
Tenants, repairs and managing them.
Repairs hurt the most.
The benefits of cash flow, principle pay down, appreciation, depreciation, equity what I’m after and the possibility of “financial freedom”
It’s well worth it but there’s a price to pay which the points are endless and I’m not going to get into.
I know that pain too. I got 2 investment properties and the tenant in one of them decided to trash the place before leaving without any explanation. The bill to repair was over 20K! The insurance pays me in 3 months! So if anybody wants to be a real state investor I always recommend having an emergency fund for each property that you have of at least 10K. Don't believe those folks that promise you to invest in Real Estate without using your money.
Why don’t you get a property manager?
Sounds like people mine as well start a business with higher cash flow. Those same expenses and emergency funds 😂
Shares are always better than property. Period. For vast majority of people its better to have one rental property plus their own house and most of their wealth in index funds
Not in my experience. Finding a renter that actually pays their rent and doesn’t destroy your property (destroy is not an exaggeration) is akin to finding a family of unicorns.
Bro I rent I maintain the property in return I don't get a rent hike not everyone is shitty
Hardly a Unicorn, you just hire a property manager if you can't handle it.
You just have to make sure not to rent to black people
I am new to the stock market. Every stock that I bought so far, I was out of luck because I bought them when they were expensive. I feel I missed out on all the stock opportunities so far for the tech stocks.I believe having 75K yearly income would be a good investment so I want to plug all my savings into the stock market. I know this sounds a bit dull but I would like to know if I should learn investing or let somebody else (more capable like a FA) do it for me? Please share your thoughts. I am kind of tired of searching for a good stock to buy and losing all the good opportunities
Even with the right technique and assets some investors would still make more than others, as an investor, you should’ve known that by now, nothing beats experience and that’s final, personally I had to reach out to a stock expert for guidance which is how I was able to grow my account close to a million, withdraw my profit right before the correction and now I’m buying again
@@peterwilliams6361 Hi , please who is the expert assisting you and how do I reach out to them?
@@DavidVelasquez9 The broker I'm in touch with is *ASHLEY AIRAGAHI . I came across her in a Bloomberg interview and got in touch with her. You can use something else. For me, her strategy works hence my result. She provides entry and exit point for the securities I focus on
@@peterwilliams6361 Thanks for sharing, I just looked her up online and I would say she really does have an impressive background on investing
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Beautiful and well explained. I have saved up a pretty decent amount and narrowed my investing options down to Stocks and Real Estates. Still having difficulties deciding which would be best given the time and where and how to go about this and would like a direct answer not a diplomatic one. A major deal breaker would be one which is less time intensive as I am a very busy person.
Why not both? With the present economy, you should never forget to diversify. Do not put all your eggs in one basket. As one who has been into Real Estates for as long as I can remember, I made my first million earlier this year from stocks alone (got the assistance of an expert because I also have time constraints). I also experiment with a couple of other things. Hard to imagine that I had initially refused to try out new possibilities. Good luck.
the real estates market is a mess right now. stocks might be better atm
@@archiemcdougald5466 ...Very sound and realistic. I have also been into both for sometime now and though I won't say I have lost a fortune, I have squandered quite a lot... You mentioned using
pros, if its not a problem. do you mind telling who you used one or recommending a good one? I could definitely use the help of one right now... I look forward to you
replying...
@@manofsteel7635 Funny enough, I can honestly relate. I don't know if I am permitted to go into details here, but mine is "Stephen Joseph Kohlhofer" and you could look him up . I'm not so sure he takes on new people right now, but you could try.
@@archiemcdougald5466 wow I know this smallish man. Once attended a fundraiser he was also in attendance in Vancouver,, Great speaker with a funny accent,, He's in the States though, I
doubt he works with non residents,,,
When you invest in rental property, your asset is somebody else's home. That's a huge responsibility, not just in terms of time and money (screening tenants, answering the 3 AM calls to fix the leaky toilet), but also emotionally. If, for example, your tenant loses their job and stops paying rent, how are you going to feel about that? You could give them a break and let them stay - at great cost to yourself - or you could harden your heart and kick them out, and carry that on your conscience.
It's not that different from investing in the stock market. Major (blue chip) stocks are tied to mega corporations that are almost always involved in shady harmful practices. If anything, it's more moral as ultimately the decision to evict or not is in your hands only. You decide if you want to make money or lose it. Just remember, you also promised your lender if you have a mortgage to pay them. Is it acceptable to let the tenants hardship become yours AND your lenders as well?
@@zakuzeon7382 It's not so much a question about what's "more moral," but about how it affects you on a personal level. Sure, you can rationalize that throwing your tenants out on the street was the right thing to do, and you were just looking out for yourself and your lender. But do you really believe that deep down, or is it going to keep you up at night? Maybe it will, maybe it won't. But it's something to think about and prepare yourself for before you make the leap into rental-property investing.
That's a great point that's not often considered
I hired a property manager and I sleep well at night…eviction or not…that’s not my job and the property managers job so I can do other things
This is why people hire a property management company to do the work for them.
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Yes, as a former asset manager of some of NYC's biggest buildings working with a multitude of owners, YES, real estate is a great investment, but it does not come without intelligence, patience and more work than equities!
It depends a lot on the country where you live. In Australia for example, investing in Real Estate is a No-Brainer, especially in a Medium to Long Term.
I think I heard the word if 100 times lol. IF your bad at screening tenant's, bad at identifying a good rental property, and bad at business then yes buying rentals properties isn't for you. IF your good at those things then you will be financially independent well before stocks could ever!
Exactly. Whereas it's NOT an IF but a fact that investing in the stock market won't generate any real returns for decades unless you're investing MORE into it on a monthly or annual basis like you would for that 20% down it takes to buy a house anyway. 20% down on a $400k house is $80k. You will very likely bring in $1000 in Gross income from that property every month after the closing. $80k invested into the stock market will bring you NOTHING unless you sell the stocks, or about $1k a YEAR if you keep the stocks & they pay dividends.
With more government control over your property (rent control, eviction freezes) owning residential rentals is riskier than ever.
Can I share a mini football pitch presentation with you.
I just am not a fit to dealing with people. Also, the laws consistently keep vilifying land lords (as if they are all greedy rich people) and taking away their rights and recourse options against people stealing from them or destroying their property.
I think that is going to be a "trend" in new policies. Does not look very promising to be a landlord unless you stay in same property.
But seriously you learn as you go, I wish I would have had someone to teach me I learned some hard lessons. Here are purchasing tips.
Don't buy a real estate owned property, especially without an independent inspector.
Plumbing, Electrical, Roof, Climate Control are generally the most expensive items, have your inspector check these carefully, then adjust your original offer based on those findings.
I bought a house with fuse box, iron pipe sewerage to the street, galvanized pipe to fixtures.
2k, 6k, 4k respectively.
In the long run you will come out ahead, sure it can be a pain sometimes but generally it's not too bad. You do have to deal with some stuff, but not a lot and that shouldn't deter you. I'm the next 2 years I will have 3 units paid for it took about 8 years to get here. I buy raised shotgun style houses doubles or single family, rather the single family but the double make more. I will look for more after these are paid off as it's too expensive to buy now. 10% isn't bad for a property manager, but don't have any right now. I look to make a certain amount if I can't I move on. For me it's how long to get my down payment back ROI, within 5 years, yes I will buy.
Your analysis of real estate vs. stock market investing was very thorough and informative. You did an excellent job of highlighting the benefits and risks of investing in rental properties, particularly the advantages of leveraging and the importance of having reserves. I also appreciated your discussion of the challenges of obtaining rental property loans, especially for self-employed individuals and business owners. It's important to be aware of the requirements for qualification and to plan accordingly. Overall, your video provides a valuable perspective on real estate investing and the factors that investors should consider when deciding between real estate and the stock market. Thanks for sharing your insights!
Great video!
My wife and I own 2 commercial rental properties (storefronts on the town square).
We paid both mortgages off in 2019 and both properties produce positive cash flow for us.
That’s awesome! Curious… what made you all go the commercial route versus rental homes?
Because we don't like dealing with residential tenants. In IL the laws are stacked against landlords.
I loved the way you presented this information - the graphics and visuals really helped me understand the topic better.
Is investing in real estate worth it?
The short answer is yes.
Like any investment, however, it has risks and it’s not a get-rich-quick scheme. It’s a slow and steady process. Unless you have the ability to pay for a property with cash, don’t expect much cash flow (if any) for quite a while due to mortgage payments. Regardless if you have good or bad tenants, you will have to deal with maintenance from time to time.
Despite all of this, you’ll be building equity, learning new skills, and can even eventually hire a property manager to do most of the work. Once the property is paid for and is still being used as a rental, that will create pure cash flow.
💯 I have 3 that will be paid off in 2 years.
@@Nolaman70 That’s great! I’m still working on my first.
@@cajunkeels I learned a lot, the hard way...
Some things to look out for during the professional inspection, Plumbing, Climate Control, Electrical, Roof all bigger expenses that can be used to negotiate a better price or paid with check after closing. Inspection will happen after your offer and it moves along for loan being approved. A good Real Estate agent for you the buyer helps alot. You will get tax benefits as the property depreciates on taxes but generally appreciates over time. I look for a ROI of less than 5 years for my down payment and closing costs. If it meets that I make an offer, if not I move on...
@@Nolaman70 Thanks for the tips. No matter how much research we do, there will be things we simply don’t think about and learn the hard way. I believe as long as we learn from our mistakes and take necessary precautions, it’ll all pay off in the long run.
Couldn’t it be profitable in the first month?
So informative and entertaining also the animation is awesome🥰🥰🥰🥰
In the process of selling my last rental at 28 right now. Using leverage and forced equity is excellent when growing net worth, and ROE/ROI is pretty great is you buy right, but man is it slow. Never lost money even when buying in 2021, but I’m sure I missed out on great returned from the market. The main positive I can provide for RE is not being able to touch that cash so you don’t make silly mistakes. Oh, and ALWAYS screen or use referrals when looking for tenants.
I love investing too and am very good at it, thanks for the info!
The diversification point should stop most people & if it doesn’t, levered investing should. Many easily see that buying stocks on margin is very risky, but it applies to real estate as well. I’ll own a few REITs to get exposure and forget all the headaches.
also consider the people who rent the place, it isnt really ever pasive. If u think its no effort, u are gonna get rekt by some non-paying renters at some point, it's a matter of when rather than if. Thereby like u mentioned debt at this time with increasing rates is risky. Also morgates are a expense, if u would invest say in stocks, valuables or whatever it's actually pasive, that said the global market in general is unpredictable right now so invest at your own risk.
Your channel is one of the few who set real expectations, most of YT right now screams buy tech stocks or borrow money and buy houses, but those investments are the most riskiest investments right now. Which will lead to being in recession without money, while u would rather have some for a rainy day in cash (not in banks). The point i'm trying to make is that a lot of people get the wrong idea about money and your channel actually helps people to improve in finances.
Thank you for steering some people away from buying investment properties....
My next purchase thanks you....
You're welcome. Fk that 😂
What do you think? Is buying real estate worth it or not?
I want to own and rent out a vacation rental, so by the time I retire, I will have my retirement home hopefully paid for by then.
It is. Equity alone is worth it. Cash flow can be hard though.
I just am personally not a fit to dealing with people. Also, the laws consistently keep vilifying land lords (as if they are all greedy rich people) and taking away their rights and recourse options against people stealing from them or destroying their property.
Depends on the person and the situation. I work lots and I work out of town, so if I invested in a rental property I would have to hire a property manager. The amount of maintenance costs, finding the renter, ensuring the renter pays on time, fixing things that break down, the current market and interest rates on mortgages make it difficult. Most of my investing cash goes into my TFSA or on my student loans (high interest rates on my provincial loan right now) it just seems easier to park my funds in dividend paying stocks right now. Eventually I'd like to invest in real estate but my situation doesn't make it feasible.
It's ABSOLUTELY worth it. The Leverage is the key. Invest in real estate 1st for a decade or two & you should have a much easier time investing in the stock market, as you can contribute MUCH more into it than you can just working a typical job.
If cannot handle it, find a property management company to look after the property. If you can afford 30% down payment for rental property, don’t bother. The rental property is still associated to risk. Shopping for deal with patience unless you want to flip the house when market is hot up trend.
I could probably net more in the short term by going hard on rentals, but I decided to fully focus on index funds. I only buy funds with a 25+ year track record and average annual RoR of 12%+. $15,000 a year for 25 years from when I started puts me sitting at 52 with roughly 2.5 million. I'll then be able to live on 100-150K a year with no debt and the gains each year should offset my spending. There is more than one way to skin a cat. If you're goal is to become widely rich, go real estate. If your goal is to enjoy your life with less headaches, and become free, go index funds.
Lmao. 12% returns? Try 5-6% over the long run.
The plan is to buy several rentals if silver will take a good run up as the economy resets perhaps next year. Hopefully that happens sooner than later. The real estate mkt here in Texas is still decent although inventory is increasing. What about finding assumables?
People prefer to spend money on liabilities,Rather than investing in assets and be very profitable.
You're so correct! Save, invest and spend for necessities and a few luxuries relatives to on's total assets ratio.
This must be an investment with Mrs Lauren James
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It has to be said that as long as space remains limited, housing will always have value as a hard asset, so no matter when and where you begin investing you will see benefits, and even if the market's in a choppy state and you do see some minor losses, the lessons you'll learn throughout your investment journey will be worth the downpayment 👍.
Its tonally worth investing in real estate.
Investing in mini football pitch as a rental property with very little maintenance. The ROI is from 18-20% I can share a presentation if you are interested.
@chrisinvest Hi. Can you do a video on what to do with your retirement income. For example, you were able to save up 4M dollars for your retirement, Where would you put it in order to have a cash flow without losing your capital?
I will look into it!
Worked for me.
You Roll the Profit into paying off the loan!
Do 25% Down!
Being able to decide when to buy and when to sell!
Returns are much higher than stocks!
They have been GREAT for me!}. But, know what your doing! It’s on you!
This video just made wholesaling seem more attractive 😂
You definitely need a lot of capital to start it's like a super savings account with high risk for the rich.
Yeah I bet!
700TH LIKE! 😃
I bought a house in Michigan in 2012 and lived there until October 2017. Moved to Chicago for a better job but never sold the house. Had a tenant move in, November 2017. Had to kick them out by April of 2018 because they only paid the first 2 months of rent when they moved in. They never paid the utilities or internet either lol. By June of 2018 I got a brand new renter who is there to this day (11-20-22) and has been wonderful. Pays $1,500 a month on a house that cost $800 a month which also includes the association fee. Have had to pay probably $5,000 to $7,000 in maintenance but I have to say this has been a great investment and I cannot wait to buy another house someday. We will never get the $2,000 the first people owe me. Hired a lawyer and everything but we could not find them.
Glad it's finally working out for you!
Invest in REITs instead.
Its always the same but it seems every generation has to relearn the lesson. You have inflation. The fed raises rates. Mortgages go up. Housing goes down. People slow down the purchase of goods that go into houses. Companies start to lay people off because business is slowing or there is fear of a coming slowdown. Layoffs continue until a recession starts, the fed lowers rates until unemployment goes back down. My stock portfolio over the last 2 years is massively down against my bitcoin using Thomas Fuller strategy. In my view Bitcoin has been one of the best holds during this uncertain market. My Bitcoin portfolio have been on a rise although the rates are capricious wiping out some of my profits i still have about 13.7' btc! worth of crypto assets. I can take a drop down to 20k and still be doing better than my stock portfolio.
The home prices increased 28% in 2021 and 10% by July 2022. This is not normal. So, we may keep to live in apt and wait for the home prices down and then buy the home after the home prices back to normal.
I checked out Thomas Fuller before going ahead that was three months ago and now I never regret trusting him. First started small but with the outcome I got I decided to trade big and it’s been amazing.
Bitcoin is on the right track for traders because they profit from the price swings, I think I'm going to start trading pretty soon
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The housing market appears to be operating without brakes as home prices continue to climb-the national median listing price saw another double-digit increase in April, climbing to $341,600. in Even with April’s 19.1% jump from a year ago mortgage rates continue to tick up, and buyers are not backing down.
The key to navigating a housing market crash is having a good strategy in place. During the 2008 housing market crash, realtors and real estate investors who embraced innovative marketing strategies with a good Financial consultant grew their businesses even while the overall market declined.*
Depends bcz only way u making passive income of those properties is if they are paid off
Simply not true
I own two rental properties with mortgages. I make income after expenses every month. The longer you own them, the more you make. Rent goes up more over time than the expenses do.
@@lorijharman-runyan6433 What is your cash-flow and how many properties do you have? Have you done the cash out refinancing yet?
@@_trust9994 Own two rentals. Purchased in 2009 & 2015. Never refinanced & don't plan on doing so. We got a good deal on both. One bank owned & one short sale.
@@lorijharman-runyan6433 Nice, are you retired now?
Investing in rentals is not as great as people make it out to be.
First is the massive down payment.
Then all the expenses in closing.
All the repairs and having to have to upgrade everything every decade or so to make it a desirable place to live.
Will the tenet actually pay the rent or use the court system to live on your property rent free for the six months it takes to evict them.
Then when you want to get out it there is the 7.5%+ cost right off the top to sell it for realtor commissions and other costs and closing fees.
Bingo
"Aaaaaand it's gone."
I wish I got lucky every time I spotted a three leaf clover.
i think it sounds INSANE considering all the laws that favor squatters plus all the people who are compulsive hoarders and drug addicts. .....what if the tenant is a psycho and he ends up chopping some people up in YOUR basement. you will lose so much money and the guy could even skip town and frame you for the murders.
This was very one sided. He only seemed to focus on the negative possibilities.
Exactly, wtf.
@Roger Austin is a bot/scam tread btw dont fall for these kinds of get rich quick scams. If it's to good to be true it mostly is.
Absolutely
Tenants stop paying, oh you mean an eviction process
it could takes months depending on where the property is
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