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Updated about 6 years ago on . Most recent reply

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Engelo Rumora
Property Manager
Pro Member
  • Investor
  • Toledo, OH
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Why you should NEVER invest in stocks over real estate...

Engelo Rumora
Property Manager
Pro Member
  • Investor
  • Toledo, OH
Posted

WOW! 

Now that is some "C Class" volatility going on in the stock market.

General Electric- Will it ever go up?

Large Cap Technology seems to be going down the drain.

The stock market is down 10% in the past 6 weeks. 

"No thanks." That is way too much volatility and is just not worth it to me.

I guess stock markets don’t always go up forever.

What does though really?

Rent prices do

People still need a place to live whether Apple stock goes down 30% or Facebook decides to disappear. 

Never mind Snapchat. Does that still even exist? lol

At the end of the day we all work hard for the dollars we are able to save and spend. Protecting your nest egg seems to be more of an uphill battle than even acquiring those funds in the first place.

Temptations with shiny objects always seem to get me in trouble at least. 

Learn from me, the best investments I have ever made are long term real estate assets.

Even during the global financial crisis 10 years ago you saw people move down the ladder. 

Class A tenants moved down to B, B to C, and C to D.

What actually happens when you own a B class property during rough economic times? 

It just means a higher quality A tenant that is making less income will most likely be occupying your B class rental.

Diversification is the key to any successful investment portfolio that I’ve ever seen.

Even the most "sophisticated" financial professionals gravitate toward an allocation of 10%-30% in real estate investment properties.

I don't have a crystal ball, predicting future real estate prices regardless of what coast you live in seems to be more of a roll of the dice. 

Therefore cashflow is King (take it from the Real Estate Dingo himself).

When in doubt revert back to consistent cashflow that hits your bank account on a monthly basis. Just because it isn’t the sexiest investment that will make you millions overnight, (what really does?) it will begin the consistent path on your way towards financial freedom.

Plus, I'd rather be my own "CEO and team of executives" on decision's made relating to every property I buy, rather than some other wankers in $5,000 suits only trying to hit analysts projections so that they can get a fat check at the end of year.

Thanks for reading

Your favorite Aussie

Engelo

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Mike Dymski
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#5 Investor Mindset Contributor
  • Investor
  • Greenville, SC
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Mike Dymski
Pro Member
#5 Investor Mindset Contributor
  • Investor
  • Greenville, SC
Replied

I like a portfolio of index funds and real estate (with a higher allocation to real estate because I understand it better).

I am one of those wankers trying to hit analysts projections (minus the expensive suits).

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