Its more like 98/2 with an additional 5% saying they do stuff so they can get a piece of someone else's hard work while they have not done anything and live in their mom's basement.All that said there is value well over the cost for those who apply themselves to deriving the value. 

The data backs this whether it is derived from case Shiller top performing residential markets for this century or it is based on the data of the top appreciation markets in neighborhoodscout.  

The truth is, my “why” is simple.I believe that income is derived from the principle that you earn 10% of the value you create.

If I don't see myself providing/deriving value from it, I leave it alone. 

Portfolio = Income derived from financial instruments like dividends (including REITs), interest, royalties, and capital gains.Mostly income w/out loss potential, and favorable tax rates.Cap losses may offset cap gains w up to $3,000 loss.

The main drivers1) Local Inventory2) 10 year treasury(macro)3) Personal Debt levels(macro)4) Real Unemployment(not the unemployment number but real white collar job loss ratio'd to part time jobs). 5) Industry proliferation(can't tell me a tech or finance hub moves like a health hub).To tell me #2 will derive from the same inputs as it did in Sep/Oct, I'm willing to bet it won't.

It can make more sense to do PML's in the IRA instead of rentals, particularly if you use leverage since the IRA will incur UDFI on that portion of the income derived from the mortgage. 

Also, part of the contractor's profit is derived from the material mark up.

While he may not have money to invest...there are multiple ways he can still derive income from real estate. 

It is a well derived scam.