All Forum Posts by: Julius Chinn

Grant Cardone has said RE is basically off limits to the middle class. Do the numbers median house of $350,000 needs down of $70,000 and $110,000 income.

0 Votes

Originally posted by @Andrey Y.:

Originally posted by @Shiloh Lundahl:

I read a post on linkedIn from @Travis Watt, a fellow BP member, that posed the question, "Would you rather have 10k a month in passive income or $1,000,000? I thought it was a great question and I think it merits a great discussion. So I am posting it here hoping to get a lively discussion from this great group of investors.

So what would you rather have? 10k in passive monthly cashflow or $1,000,000? Please tell us why.

Obviously $10k a month in passive cash flow. But the question is misleading. $10k per month is $120k per year, and no one is getting that on $1MM invested. Not passively anyway (you said passive monthly cash flow). If you're honest about Cap Ex, and the time spent doing the management (any time at all spent on your real estate) yourself (at $50/hr.) your 12% return goes to 6% real fast. Even investing in syndications (the most passive way I've found to invest in real estate), you aren't getting 12% passive cash flow. 4-8% is very good. 12% as a total IRR or return is realistic but then again that is not "passive cash flow".

So in my opinion, the better question is $2MM or $10K/month in PASSIVE cash flow.

You change your TUNE. What happened? Before it was syndications to the MOON.

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Originally posted by @Steve K.:

Seems like a Ginger vs. Mary Ann debate to me. The answer is clearly both.

There was a study done. Mary Ann won hands down, fair and square.

1 Vote

Originally posted by @Account Closed:

Originally posted by @Julius Chinn:

Selling options premiums on $1,000,000 get you 25% conservatively. You do the math.

Poor mans covered call on BAC gets you way over 20% annualized.

What about the crash. Buy n hoders face same issue. So no Biggie . When it happens deal with it.

Total ********. Some of the worst, most reckless "advice" I've seen posted on BP.

Name me one options-based alternative fund that has done 20% annualized 3 years in a row- I know, they are all using the wrong strategies. If only they knew about selling premium or covered calls. The biggest players in the business can't do it, but you can, and advise others to as well.

You can nickle and dime some premium value on covered calls, but you aren't getting 25% or 20% and it certainly not conservatively.

Financial markets will never run out of math major alchemists.

Selling Option Premium can be very conservative. Premium one day can be teeny tiny, next week could be as juicy as can be. Its fluid, prices change by the minute. Study the Greeks......phi betta kappi and all that good stuff.

Did you know Warren sells cash secured puts to ease into positions.

Buying Real Estate today is insane. Practically only out is if market goes up another 30% from right here right now.

1 Vote

SELL. Theres a train of thought that non-contractor types should never ever buy 100 year old rentals.

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Baltimore, Maryland

Aspiring investors. This could be a motivated seller. Way better than driving for dollars.....lol.

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Its not about the str income to start. Its the price of the underlying asset you need to be concerned with.

I know a guy who bought into a $600,000 STR in Waikiki. Income very good but return on investment is Peanuts. All he cared about was the income.

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All Forum Posts by: Julius Chinn

Julius Chinn has started 1 posts and replied 102 times.

Post: 16 year old getting into real estate; advice?

Post: Which neighborhood to invest in Las Vegas

Post: Would you rather have 10k a month in passive income or $1,000,000

Post: 16 year old getting into real estate; advice?

Post: Would you rather have 10k a month in passive income or $1,000,000

Post: Would you rather have 10k a month in passive income or $1,000,000

Post: Would you rather have 10k a month in passive income or $1,000,000

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