The biggest mistake many make is purchasing their first property in low barrier markets with poor fundamentals  solely because the real estate is inexpensive and it’s the only place where they can afford to buy.

So ask yourself do you want to start from the scratch learn the fundamentals and basics with a 10-15% cap or would you rather go all in and don’t forget your medical needs in between your decision making.

What we did have in the way of real estate “education” was (1) the book “HOW I TURNED $1,000 INTO ONE MILLION IN REAL ESTATE IN MY SPARE TIME” by Bill Nickerson, (2) education provided by organizations to qualify for real estate brokerage licensing and (3) courses in real estate offered by collegesI found that because of the type of education provided we were much more knowledgeable about real estate FUNDAMENTALS, FINANCING, AND LAW than investors are these days.  

I would invest the other half with a diversified mix of cash flowing assets across operator and geography with a focus on assets with good long-term demographic fundamentals, (i.e.

There are certain fundamentals, but can be different.For example, here in Los Angeles it is case by case.

Lots of headwinds facing real estate, like the following: Inflation Consumer Debt Lack of consumer liquidity-- renters don’t have first and last month’s rent, let alone a down payment to buyOwners interest-rate lockedOversupply of class A multifamilyStagnation of rent growth on assets aggressively underwritten at acquisition Maturation of term debt combined with stagnant rent growth against a backdrop of rising debt rates =investors unable to meet basic debt coverage service ratios on refinance Market normalization forcing operators and investors to rely on market fundamentals (recently) forsaken, while prioritizing expediency of deploying capitalInstitutional and local investors are both frozen by volatility and cost of capital and debtAll that being said, we feel good about B and C class assets we focus on and the markets we are in. let's connect soon 

@Cliff H.Your argument doesn’t fundamentally negate the basis of WLI as it has been presented in this thread.

Fundamentally I'm paying a property manager to protect my investment, not pocket money on the side from construction arrangements with vendors.  

This is all historic, but I'd bet the fundamentals aren't too dissimilar now.

I can withstand their nonsense, I know I'm setting mine up with a fundamental belief in things are earned, patience,  and everything in between.