All Forum Posts by: Ozzy Ordonez

5% down payment or 0% on owner occupied SFR, not on an investment property you need 25% down and SFR have low cashflow 

Originally posted by @Josh Rorie:

Not sure I can agree. Aside from the tax, depreciation, appreciation and cash flow aspects of real estate, there is another big advantage it has over stock investments: leverage. Even if I find a "good deal" on the stock market, I have to pay the price per share X the number of shares I want. If I find a good deal in real estate however, I can put 3.5% or sometimes 0% down and still control an asset worth tens or even hundreds of thousands of dollars; with none of my own money into it. The only time I would say stocks really kick real estate's butt is when you can find a hidden gem in it's initial stages (but the hard part is being able to determine if it's a gem). Buying Google or Amazon level stocks in the early stages for pennies on the dollar are the rare scenarios where stocks are untouchable. 

Originally posted by @Matt Rogers:

What's he deal bringing up the Sched D filing? Thru tax software and your broker its all automated, in my experience.

Also, I like the idea of using equities in conjunction with REI. While I don't necessarily like the idea of covered calls (too much capital tied up for me), I do like other option strats (shorting a OTM call n going long further OTM CALL, to collect premium. And vice verse on the underlying I believe will move the other direction). For those who say keeping up with this is too much work, here is a whole legitimate website catered to this type of trading (Tasytrade), although it might not suite everyone's trading styles.

But right now we have ppl comparing trading to buying rentals etc and bringing up the superior tax benefits, which I believe to be unfair.

Originally posted by @Steve B.:

@Ozzy Ordonez first of all you are not Warren Buffet, nor is the average investor you seem to be referring to.  Second warren buffet doesn't make money buying or selling option contracts, he's a buy and hold investor so you are comparing apple to oranges.  

Your statement that "you constantly find good deals and you can use stock options to create cash flow"is basically the same pitch that every late night get rich quick guru uses to sell uneducated greedy rubes on some proprietary automated stock trading platform.   I would advise you read an annotated version of the book "A random walk down Wall Street".  It will be very educational.

I have over half my money invested in the stock market, but markets go up and they go down, pretending there is a magic formula to rich's via active trading that the average Joe can easily accomplish with a minor amount of education and work  is both risible and ill-advised.

example you buy 100 shares of apple at $100 = $10,000, you create a covered call and get $100 premium...thats 1% return (no margin) for 1 month return. with margin you use $3000 of your money, aprox.  and you  get 3% your money.


Originally posted by @Matt Rogers:

While I don't think Ozzy has articulated why he prefers options vs REI, I too wonder peoples take.

I think one of the items being overlooked is not everyone qualifies for the use of options, and I'd go on a limb to say many do not know how to go about getting their trading account approved, nor the assets. Likewise, you can use a margin account for leverage purposes (although not to same levels as in RE).