What are your thoughts about REI?

[Nicole Pettis]

Is it smart? Is it high risk? Will you go bankrupt? Is staying with your 401k's and mutual funds the best way to retire?

The reason why I bring up these questions is I had a big discussion with my father in law tonight. I have fabulous in-laws. They are sweet, loving people who don't judge and will only give an opinion when asked. My father-in-law is very smart with money, however he is a tortoise when it comes to investing, which has done well for them.

He worked for Owen's Corning for 39 years in various management positions and is now doing contract work for them. He is well invested in mutual funds and 401k. He owns two pieces of real estate, their home and then a lake house. Their house is paid off, however they are still paying on the lake house. I have no clue what they are worth, because they don't talk about their finances, but I do know that they are comfortable.

So I asked him today what he thought about my strategy of wanting to invest in Real Estate and he said you have to have deep pockets and then he proceeded to ask do you want to go bankrupt? Because that is what will happen. He feels I am putting our family at a huge risk if I choose that venue. We then proceeded to have an excellent discussion & I tried to explain to him about the 70% rule, how you make your money at the purchase price. How flipping works. How others are doing well & are even successful at it, making a good living and running a good business. And it didn't matter because of his investment beliefs and philosophies. Which is fine, I wasn't offended, I asked for his opinion.

Will it affect my strategy, and our pursuit to do REI, probably not. Right now financing has been our biggest hurdle, but I think it is for many. However I know we will figure it out.

Just wanted to get your input and thoughts?

Thank you!

Nicole