All Forum Posts by: Timothy W.

Quote from @Josh Arkle:

Still doing paint on the floors? Have you tried adding a few coats of poly to keep it from wearing?

Sold all that real estate.  Moved to Florida.  Married a beautiful Brazilian.  Did grad school.  Had kids.  I now live in a house that is worth than all that real estate combined and make more in half an hour of consulting than each of these units made me in a month in net profit.  I still invest in cashflow, but paper now.  Land lording was a season in my life, not a destination.

I really appreciate this take. I haven't been able to find cash flow to save my life. And not for lack of grinding looking every day. So today I put offers on two duplexes that I think are a "base hit." Long term play, what some are calling BEAF: Break Even, Appreciation Focus. I like your planting trees metaphor - it comforts me. When all around me - podcasts, books, etc - I'm hearing "cash flow cash flow", and I'm over here looking for assets that will hopefully appreciate and cash flow in year 3 or 5. 

Don't sweat it.  Back around 2008 I was mocked mercilessly on here for finding cashflow, lol.  I was picking up SFRs in South Bend, Indiana for between 5k and 12k each and renting them out for around $500 a month.  I was called everything from a scam artist to a slumlord to an idiot.  More than half of the advice on here is driven by an agenda so you have to hear it but not necessarily listen to it.

Quote from @Adrian Smude:

Quote from @Timothy W.:

Quote from @Henry Lazerow:

 Real estate should at a minimum get you 6% Cashflow + 8% appreciation  and 2-3% in mortgage paydown all based off a 25% down payment.

You can do that or better on dividends and not have tenants.  The only advantage on real estate in this scenario is depreciation.

Wow, I commented a month ago that the people making money off of BRRRR was the preachers, not the doers of the BRRRR. This thread is proving me right. It's all the real estate agents, brokers and other vendors servicing landlords talking about how great it is. Not much from owners who built up a portfolio of 20-50+ units using this. Pay attention. Their money is made on you continuing to transact in real estate, not you maximizing your own profit.

 Great observation!  

 Thanks.  Saw you're a mobile home landlord.  VERY very smart down here.  I've been in the insurance claims business for 20 years and not everyone gets that a modern mobile home tends to weather a hurricane better than most framed homes.

Quote from @Henry Lazerow:

 Real estate should at a minimum get you 6% Cashflow + 8% appreciation  and 2-3% in mortgage paydown all based off a 25% down payment.

You can do that or better on dividends and not have tenants.  The only advantage on real estate in this scenario is depreciation.

Wow, I commented a month ago that the people making money off of BRRRR was the preachers, not the doers of the BRRRR. This thread is proving me right. It's all the real estate agents, brokers and other vendors servicing landlords talking about how great it is. Not much from owners who built up a portfolio of 20-50+ units using this. Pay attention. Their money is made on you continuing to transact in real estate, not you maximizing your own profit.

It never really was a good method. It relied on everything going right and nothing bad ever happening. One hurricane, one downturn, one localized series of job losses, and the house of cards falls. You need to buy, rehab, rent, manage, refinance if the numbers make sense, don't if they don't, repeat if you identify the right property and if you have the capacity to properly manage, and maintain external sources of cashflow to really get it going. Those who preached BRRR the most made their money off of the preaching, not the doing.

People are investing in Cleveland the way I invested in South Bend and Mishawaka Indiana 15 years ago.  You do it because you have to.  It's the price point where you can enter this business.

Quote from @Anthony Larson:

what could you have accomplished if you didnt waste time in your political debates.

To be honest, I think we're both millionaires and JScott finally wised up and moved to Florida too...so there's that.   All in all I think we both did alright.

Who voted for my posts in this?  Don't.  I was much younger, much dumber, and obviously much more single.

Geeze, what a week to be holding AI stocks.

This is what I'm talking about.  I have no idea how a chip that makes AI is built.  That's someone else's business.  This week someone else is better than me for my money.

Quote from @Mark Weins:

Stock market gains average 8% per year. I am not sure what the average year on year return for BRRRR is but if you compare the two which one would earn you more money for your investment assuming average BRRRR results over a period of 30 years?

First of all, you need to understand that this forum is heavily populated by salespeople with a vested interest in real estate transactions occurring.  You're going to get a lot of recommendations for real estate for that reason.  That caveat aside, it's hard to compare the two because I hold thousands of shares of stock in varied companies for varied reasons.  Some of my stocks are investments in real estate.  It's hard to have that kind of variety in real estate at the level of humans.  Even Trump has his few types of real estate investments he does.  There are no Trump self-storage facilities.  

Real estate is better when you run your real estate investments like a business, learn a niche, master that niche, and maximize yourself within that niche, then move on to the next niche.  The most successful investors I know (over a million a year in net cash flow) operate in 2-3 niches max.  They are also workaholics.  That's not a joke.  The successful investors I know run about 80 hours a week and are always on the phone.  It's just how they're wired.  My dad is this way and is 71 years old and there are no signs he's stopping any time soon.  

That's certainly not the only way to do it.  Josh Dorkin built this forum and was famously open about minimizing his actual investments in real estate in terms of owning numbers of property or doing numbers of deals.  Unlike most people in the education space, he was honest about that.  To my knowledge he only did 2 deals that he owned, his house (which if you know how to follow, he made a KILLING on that to a level most people don't understand) and the sale/recapitalization of this forum.  Pretend he made no money on the sale of bigger pockets (I said pretend) and pretend he isn't involved in investing in startups.  If you know how to follow what he did with just his house he's set for life (probably his kids too) on a conservative investment for dividends from that single transaction.  I don't know that you could buy one stock that would do that for you.

You know what it comes down to.  Real estate is your business.  Stocks are someone else's business.  Sometimes you're better and sometimes someone else is better.  Sometimes your best value is in researching how someone else is better than you and making your money investing with them.  Be honest with yourself, try both and see what's better for you.