All Forum Posts by: Account Closed

So.. you know the 1% rule, which once upon a time was the 2% rule, never guaranteed cashflow right?

1% now, is aiming for breakeven, and doesn't guarantee that either. 

 Not interested in gimmick strategies or scams. People can be as "creative" as they want with their own money, not someone elses. 

 West coast investors competition for the assets and their mind set was simply as long as someone else can pay the on going expenses and maybe just a 100 or 200 negative its still a good investment hedge against inflation and most of these investors have day jobs that make significant incomes .

That sounds like why Realtors and Financial Advisors love Doctors. Doctors have money/income, and are overwhelmed with their day jobs.

Never understood the mentality of having enough money that mediocre investments are ok. Even if I had Elon Musks money, mediocre returns would not be ok on any of it. 

If those people made better investments, maybe they wouldn't have to keep working the day job. 

As soon as you said "cash flowing properties", "California Coasts"- I stopped, scrolled up and sure enough, yep, you're a realtor lol. 

 Are you kidding? for the same reason HE bought it in the first place. The world is full of optimists, pushing bubbles as far as they can until they burst. 

 Barring someone with some "creative" strategy/angle- *cough, rent to own scam, cough*-, or someone taking a leap with other peoples money, rather than their own -hello syndicators- , I don't think you are missing anything, and are one of the few honest posters here on BP regarding the state of affairs. 

I am wondering what everyone thinks will happen, if at all, with the housing market and/or interest rates? 

You gave yourself the best answer to that one when you said- I know no one knows, and everything is possible

If macro forcasting were actually a thing, you'd see someone do it effectively, repeatedly, and get rich in the process. The closest guy to that is probably Ray Dalio, and he can't get as close a shave as you are asking on the matter. 

If your deal pencils under conservative underwriting (have another set of eyes look at it too, and pick someone you know that is critical), and you have reserves to weather a storm, thats about as good as it's gonna get for you in reality. 

No one else operates with the surety of the future under their belts, even if they think they do. 

 I hear you mainly, but in all fairness, have you ever seen buyers with zero experience lose money too? :) 

I just think people need to appreciate the commitment Real Estate investing will come with, that is is doable, but will take work and development, and notions of "passive" really need to be dispelled. 

Some will say yes some will say no. Just know that it sure wasn't always like this. You know the 1% rule? Ya, that used to be the 2% rule. 2% stopped existing so it turned into the 1% rule in the last 10 years or so. 

Here's one way to look at it though- with negative cash flow, you are paying money in hopes of future appreciation. Are you willing to pay money for speculation? 

 See thats the big thing about Real Estate- barring dumb luck, your results are tied to your expertise. When someone is asking about potentially buying out of state, they don't have your expertise. Other asset classes don't behave like that, to that extreme. Warren Buffetts Berkshire Apple shares don't perform any differently than my Apple shares. We go up and down together, at the same price. 

So the big question is, are they prepared to pay their dues and put in the work to be like you? If they aren't, they aren't going to have numbers like you posted.