All Forum Posts by: Chris Rosenberg

Is anyone attending this or has been to a similar one before? Productive or a waste of time? http://www.meetup.com/Philadelphia-Real-Estate-Investors-Association/events/138764712/

@Pat L. Your friend put his eggs all in one basket. If you work for the company but you're not going to follow the company's financials then don't invest a dime in the stock. If they go under you lose your job and your savings.

@Chris Masons

I would have to agree with you that stocks should be a part of most investors' portfolios.

@David Krulac

1) This is the precise reason why I got into stocks, because I had to start small.

2) I'd love to know how I can start investing in real estate with no money.

3/4/5) You feel this way because you have more knowledge of real estate than the stock market.

8) I feel extremely proud when I researched and bought a stock and I just watched it rise by a point (or quintuple in less than a year). Can you get that in a real estate holding? Maybe, but I doubt it.

In my opinion the only advantage real estate has against stocks is leverage. You can buy stock on margin but you can get more (and safer) leverage in real estate with a smaller down payment. Other than that, you have total control over stocks. You can buy and sell in a split second. You can trade options. You can dig into years of accurate financials validated by the SEC. If a CEO isn't doing what you want him to do then you bought stock in the wrong company. Real estate markets decline just like stock sectors do. Just because you're not the CEO of the company doesn't mean you have no control over your stock investment. You can choose from thousands of companies which ones you want to invest in and exactly when you want to buy and sell. You can instantly become a silent partner in some of the world's greatest businesses. I have to worry about poor quarterly and annual reports. You have to worry about vacancy, turnover cost, eviction, etc. Stocks paid for me to go to a trade school (my best investment ever) and stocks will be paying for my first real estate purchase shortly.

I am truly amazed that some "investors" knock the stock market so hard. For anyone interested in some good stock market reading I strongly recommend One Up on Wall Street by Peter Lynch, and The Essays of Warren Buffet.

With all that being said, I believe both real estate and stocks belong in most people's portfolios as long as they are willing to do the research and put the time in. If you really look at it, maybe the avg cap rate plus appreciation is similar to the avg S&P 500 gains plus dividends reinvested. This is just a thought. It would make for an interesting chart though.

@Brandon Turner

Ok that makes sense. Telling them you will garnish wages and file an eviction that will follow them for 7 years definitely seems like it would be effective.

@Brandon Turner I understand why a landlord would be against this. I'm just wondering what course of action a landlord would take if a tenant tells him that they are not paying the last months rent and wants to let the deposit take care of it. How do you ensure that the tenant pays you for the last month of rent if they insist they want the deposit to take care of it?

@Ben Reiss

As it turns out, it looks like I will need your mortgage broker's info after all.

Question: Do any of your tenants say they will let their security deposit cover their last months rent. I have personally done this before as a tenant. This was common practice in my area. I actually never knew anyone who paid their last month of rent out of pocket if they gave a security deposit, until I moved to manhattan.

Since you are planning to move to Seattle in 2 years what if you purchase a multifamily there. I'm not familiar with the market but it may be better than SD. Then you can use the cash flow to pay your rent in SD for the next 2 years. In 2 years you can move into one of the units in the Seattle multi. Just a thought.

Roc, I agree about Kensington. Everyone I spoke to said to stay away from it. I just wanted some objectivity in this convo to see what people really had to say about these neighborhoods. What do you think about Point Breeze/Newbold?

Ok sounds good Troy. I think Cherise did mention that.

Ben, I have a mortgage broker that I'm working with. If things don't work out maybe I can use your mortgage broker. As of right now, I haven't the slightest clue which title company I would use. If you can send me your guy's info that would be great. Thanks.