1.2 Billion Dollar Real Estate Investor: "Buying your house is the dumbest investment you can make"

[Turbulent]

i won't attack someone who says "don't buy a single family home" because it's not the worse advice. but that's not where i was at in 2009-11, all the best deals for me were single family homes. MUDs are the way to go if you can. as long as someone isn't giving you advice that ownership is bad then it's cool with me. a mortgage isn't bad either, you need one for that MUD too.

and that's another thing. The same piece of advice can be good or bad depending on the year, geographic location, economic landscape, as well as your personal circumstances. People see the info as mantras they should blindly follow.

 

[No Homo]

Grant's whole argument is from a wealth building and investment perspective. I agree. He doesn't believe someone should buy personal real estate when they can use that same downpayment to house hack or build a secondary stream of income, along with they're W2 job, then use the income from your investments to buy a home. It will take a lot longer but it is worth it. That's how I did things but everyone has different circumstances they're working with.

You get it.

Reading the responses here no wonder we are so behind as a people but there are a lot of us who get it.

Educate yourselves people. Financially educate yourselves.

 

[ThaBronxBully]

And I think you need to know a bit more about what you're talking about before you quote me. Are you receiving the depreciable tax benefits of property ownership that lower ones tax burden working at Wendy's? Is Wendy's active or passive income? Wages in this country have barely budged over the last 20 years. Property values typically appreciate over the long term. A purchased property, barring some kind of world altering economic development, will be worth more in 20 years than it is today. How much will your wages really grow at Wendy's? Can you use equity from your job at Wendy's to fund more investments or fun you want to have down the road? When you quit Wendy's will they still pay you because when you elect to move from a house hack, you are guaranteed payment for life as long as you maintain the property. Explain to me why you brought up working at Wendy's again. Too many people think way too small and are out here playing checkers, not chess.

Did I Say You Were Wrong Or That What You Posted Would Be A Bad Financial Decision, U Used A Key Phrase, “Passive Income”

My Point Was To OTHER People To Understand Its Deeper Than What They Think. You Can’t Read A Few Brehs On The Coli Advice Then Go Out And Decide This Is For You

 

[YouMadd?]

The white middle class was built off owning homes and property. Now all of a sudden they got all this advice for nikkas
Hey do what's best for you.

True but economics only examines the past, it doesn’t predict the future.

For example, Detroit and Brooklyn NY home prices used to be literally flipped.

Everything is a case by case situation and ANYTHING can happen.

 

[CrimsonTider]

There’s actually a lot of reasons to not buy a house. People talk about the opportunity cost of renting as opposed to buying a home but it’s really worse in reverse. This is assuming you have to get a mortgage to get the house. If you can buy one cash that changes everything.

What are these reasons?

 

[Master Teacher]

first off owning a home isn't an investment, you should buy a home for invest purposes, you should buy it because you want it to live in, it is a luxury not an investment.

Renting your whole life is a moronic, this guy says he owns a bunch of apartment buildings and rents lmao, I real hustler would live in his own building for free because the renters are paying him like most apartment owners do lmao

these youtube gurus are not rich, they are not billionaires, lmao nobody who is successful in real estate is making seminars, books, or any of that bullshyt, they don't want people to do what they do, real estate is highly competitive, its only so many good deals out there, and the real money is in being a developer anyway.

 

[Master Teacher]

True but economics only examines the past, it doesn’t predict the future.

For example, Detroit and Brooklyn NY home prices used to be literally flipped.

Everything is a case by case situation and ANYTHING can happen.

Yeah and if the black people owned their homes in NY they would've been rich when those cacs came to buy them

and property value in Detroit is going up, most of home owners in Detroit are cacs where all the black people rent

stop being a sucker

 

[richaveli83]

So why does he own properties?

He owns the properties so you don't have to

 

[EndDomination]

Nah... the white middle class was built off the homestead act coupled with living wages and virtually no debt

That is largely it, but the GI Bill, and w/ it the free college education and the "no down payment" on home mortgages + the suburbanization of the largest metro areas in the US all carried it home.

 

[EndDomination]

Yeah and if the black people owned their homes in NY they would've been rich when those cacs came to buy them

and property value in Detroit is going up, most of home owners in Detroit are cacs where all the black people rent

stop being a sucker

A massive chunk of the Black homeowners in Detroit were either contracted out of their own homes by crooked financial deals, were so deep underwater that it was financial ruin to continue to pay the mortgage, were given exhorbitant interest rates, or were screwed out of a job and lost their homes between the dotcom crash and the Great Recession.

The vast majority of the owners in certain places in Brooklyn were Black, but many left as (perceived) violence escalated and values slowly rose. The ones that stayed quadrupled in net worth just by paying their property taxes.

 

[Paisley Darts]

Hes not speaking to the common person. Hes talking about he rents because he wants to get in and get out. 90% of people are tied to where they live through some factor, whether it be family, lack of money or a job, they just can't up and move like that. Grant also kept saying if it doesn't pay you, why are you doing it. The alternative is renting, which the same line can be applied, plus it typically cost more. Houses typically appreciate. If you are looking at home ownership and comparing it to investing in the stock market in and of its self, then I agree wholeheartedly with what hes saying. But if you take into account that you have to live somewhere, the alternative is renting and all the other realistic factors, then I totally disagree with him.

My parents bought the house that I grew up in for $60k back in the early 90s. That house is worth $160k today and its been paid off for 10 years. If my parents were renting, they would have paid 10 more years of rent and counting. But since they bought the house, they now have an asset to pass down to me and/or my brother. We can sell it and make $150k or I can hand it down to my kids. I really don't see how the common person can say home ownership is stupid.

 

[EndDomination]

Yeah but they got good deals on it and the game was rigged for them.

Black folks as a group historically get bad deals on mortgage loans unless they join the military period. The crash of 2008 disportionately affected us because they give us fukked up deals.

If you earn a large income, I don't see the point in sinking all your income into a home because you ain't gonna earn any income back from it unless you rent it.

You can sink all your income into income generating ventures so you can live off that shyt passively.

There's a difference to me, in living in some shyt that you got a loan for personally.

Or buying rental properties as a business owner and letting other people live in your shyt.

Homebuying is a scam to me, never understood getting loan to "buy" your house, then paying back the loan in 20 or so years, so you can "own"your house, but then you are the one responsible for all the repairs and etc. But all your networth is tied up into your house and the value of it depending on the market situation and the condition that it is in, which generates no income.

Wealth with no income makes no sense.

After the crash of 2008, no young motherfukker should be trying to fukking own a house.

Might as well, take all that money and buy you some crypto, at least when you get fukked doing that shyt, it is more exciting.

If its cheaper to buy rather than rent over the course of 20 years + the home value appreciates at like 5-7% I'd still cosign the purchasing over the renting.

I’m more of a fan of David Ramsey. He preaches the exact opposite.

I don’t really trust Cardone.

This. While I disagree w/ Dave Ramsey, he's far more benevolent in his content.

Cardone has hours upon hours of free content out there. You don't have to pay for shyt. If you are truly about building wealth, buying a single family residence in your 20s or 30s is beyond dumb. Folks don't take into account the true price of homeownership. With the downpayment, you can actually invest in income producing assets which will pay you for life whereas that single family you bought will never ever pay you a single dollar.

These income-producing assets seem a little far-fetched, especially w/ just $25k. Care to eleborate>

 

[mastermind]

Its funny when the wealthy gives advice that only serves to make them even more wealthy.

Its equally depressing when the non-wealthy follow their bad advice.

 

[EndDomination]

I swear what he said went over the heads of the majority of the commenters in here.

He's not saying don't buy real estate properties, rather don't think of your own house as an investment and look for additional properties that you can rent out. Robert Kiyosaki will tell you the same thing, houses aren't assets in the way that most Americans think of them. Rent where you live, and buy additional properties that you can rent out to generate streams of income. Commercial properties are good too.

Both guys are clowns, so

 

[EndDomination]

If the South had high-speed rail
Cheap housing, good weather, and no cars