All Forum Posts by: Jordan L.

How about a basket of REITs?

We live in uncertain times correct? So what moves will make the future seem more certain or stable?

1. Buying below market value, that gives you a cushion if you have to sell, but you still have to sell, and the market can move on you.
2. Having a fixed mortgage. That way you know from month to month how much you're going to have to pay.
3. Paying off the mortgage. While this move doesn't enhance your growth potential, you're likely to get a constant stream of income without having to worry about a mortgage.
4. Having in homeowner's insurance.
5. Selling a property. This might be against the goal of growing a RE portfolio, but if the property is a liability, selling it may seal off a money drain.

What else?

That's a good question. I guess, I'm trying to get affirmation on my own strategy. I'm certainly not getting anywhere close to the 2% or 50% guidelines as recommended by the RE investors here. More than a few suggestions to sell of my existing portfolio have been made and to start to over. As a newbie, I appreciate the advice. If my investments are bad, they're bad and I'm glad people here can teach me something. That's why I'm here. But selling an investment to me is not like going to my etrade account and clicking a few buttons. It takes quite a bit of steering to right this ship. But before this board, my only example of RE investors(they were all full time engineers) are my relatives who were all passive investors and basically bought one property and paid it off, but are now doing well. Thus I have fashioned a similar model in hopes of replicating their results, with hopefully a few multiples.

What if at the time that he bought his primary residence he also bought the 2 other similar homes in the neighborhood and hired a PM to manage them. He didn't see positive cashflow for the first 10 years, but now is receiving his windfall(3 properties paid off receiving 9k net a month). Now mind you, he had a well paying job and never intended RE to be his full time gig. 2 questions:
1. Is he an RE investor now?
2. Did he make a good investment?

Whoops. My bad.

Trying to turn an observation into a little joke at the expense of men. Looking at the response I'm getting, it failed sorry for any offense.

2 years ago, more women matriculated into my field of work for the first time ever. I welcome this change cause in my field of work, you definitely want the most qualified person doing the work.

Realtor. Female
Property manager. Female
her asst. Female.
Mortgage broker. Female.
her loan processor. Female
Escrow officer. Female.
her partner covering during vacation. Female.
Homeowner's insurance agent. Female.
Home inspector. Female
Home appraiser. Female.

If it were 50/50 for each position the odds of this would be 1/1032. The time where men's function in society will mainly be sperm donor and jar opener is fast upon us.

My understanding is that the loan recasts at year 10. So if you if you're only paying interest for 10 years, then you're payment is going to skyrocket. But if you're judiciously paying down the mortgage with extra prepayments, at year 10, your mortgage could go down. Sort of like a free refi at year 10 into a 20 year fixed mortgage.