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

[YouMadd?]

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

Yes and on the other side many of those people who thought they’d be millionaires owning their Detroit properties aren’t... There’s a few, but not many. Also most Detroit property owners are probably Chinese at this point in 2019. US real estate is basically a bank to them.

I don’t know why you are insulting me. This is a convo. We are sharing information. You guys on here wake up angry... sheesh... mmk back to sipping dandelion tea

 

[EndDomination]

He has an interesting point about income from labor being taxed at a higher rate than income made from investments.

The entire Left in the US has been saying this for over a century now.
When we say "tax the wealthy" this is what we mean: capital gains taxes need to be at, or above, the income tax level. 35% as opposed to 0-15% as they currently are.

Stock market has always yielded more consistent returns than real estate. Land ownership is good simply because of the opportunity, but at the end of the day, it shouldn't be viewed as a primary driver to increase wealth.

Middle class whites beat us primarily because of home ownership. What gets lost in all that is that they have generally made more money than us and received better terms on auto, home and small biz loans. They end up with more disposable income and can pass those lumps of cash on to the kids...enabling the kids to buy homes with nice down payments. Higher down payment = lower monthly mortgage and that = more disposable income. A never ending cycle.

Plus, whites are the majority and have a strong desire to live in white neighborhoods. Because there are so many of them, this increases their property values. Even nice black neighborhoods will have lower property values simply because the demand to live next to us is lower. Fewer blacks + people comfortable with us = less demand and less inflation of values.

If you have the extra income, either buy a house as a vehicle to store the excess cash or rent cheaper than the average mortgage in your area and invest in the market.

I want this answer to be pinned to the top of this thread.

Lol yeah dudes will get hype about a raise not realizing that they got booted into a higher tax bracket and are taking less % home

Brodie, that's not how tax brackets work.

 

[EndDomination]

It would have been better if the op had posted Beyoncé dad interview with DJ Vlad instead.

This dude is white so nobody here will pay him no mind but Beyoncé dad is also one of those wealthy people who doesn’t believe that a single family home brings you wealth and he’s a renter simply because he doesn’t stay put in one place often and doesn’t utilize most of the space in his property.

The vast majority of people, middle-class or otherwise, are not transient.

The advice from transient people is frustrating.

 

[goatnole]

Either way, you gotta pay to stay.

 

[Ezekiel 25:17]

Y'all talking about multifamily homes, I see a couple in my area around $150k If they check out that's a good deal. Mortgage and property taxes would only be $900


How would you check to make sure they're updated and won't fall apart?

 

[Quarquar]

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.


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

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

How is it a little far fetched? Put 3.5 percent down using a FHA loan and house hack a duplex or triplex. You can also find properties that are owned free and clear and use owner financing. Tax delinquents and just straight up cheap shotgun houses are options as well. All of this depends on your location though. I have invested in the south which is far cheaper than say the bay area or nyc.

 

[KING WILL]

trying to convince me that paying $1000 for the rest of my life is better than paying $1000 for 30 years, or less.

 

[EndDomination]

How is it a little far fetched? Put 3.5 percent down using a FHA loan and house hack a duplex or triplex. You can also find properties that are owned free and clear and use owner financing. Tax delinquents and just straight up cheap shotgun houses are options as well. All of this depends on your location though. I have invested in the south which is far cheaper than say the bay area or nyc.

You explicitly mentioned income-producing assets as seperate from housing.

I know how to earn income with housing, I assume you meant putting the liquid capital somewhere outside of housing. My bad.

 

[Quarquar]

Y'all talking about multifamily homes, I see a couple in my area around $150k If they check out that's a good deal. Mortgage and property taxes would only be $900


How would you check to make sure they're updated and won't fall apart?

You will have a due diligence period after your offer is accepted. During this 30-60 day period you'd hire a couple of contractors to look over the property and assess its condition.

 

[Gold]

White peoples wealth is literally built on generational property inheritance

Stfu u dumbass cac

 

[Quarquar]

White peoples wealth is literally built on generational property inheritance

Stfu u dumbass cac

I know you didn't graduate from Vandy with such poor comprehension skills. No one ever said not to own property. Do not look at your stand alone owner occupied single family as an investment because it is not one. Purchasing a single family early on can be catastrophic in ones ability to build wealth. That is the argument

 

[BlackBall]

Lol at everyone getting defensive and shyt

 

[philmonroe]

Land ownership is the only gateway from lower middle class to upper middle class. I know a woman at my job that brought a home in the Kirkwood community for 60k cash from her 401k and now its worth almost half a million. Im a let yall cook tho

Only way? fukk you dudes talking about? This isn’t your grandparents era smfh. There are so many ways to get $$$ nowadays that don’t involve no fukking land. Hell you can sell enough stuff online and make more than having a house. Those things didn’t exist before but as usual a lot of cats lost in the sauce.

The house might be worth 500k and good for her but until she sell it it’s not doing her any good $$$ wise. Unlike selling online where you can profit now so yeah let others cook with this outdated logic you kicking

 

[Ezekiel 25:17]

Only way? fukk you dudes talking about? This isn’t your grandparents era smfh. There are so many ways to get $$$ nowadays that don’t involve no fukking land. Hell you can sell enough stuff online and make more than having a house. Those things didn’t exist before but as usual a lot of cats lost in the sauce.

The house might be worth 500k and good for her but until she sell it it’s not doing her any good $$$ wise. Unlike selling online where you can profit now so yeah let others cook with this outdated logic you kicking

What other ways are there to make money? Stock market you can get money faster, but it requires way more knowledge and it's riskier. And selling online is hit or miss, how long is the money gonna be coming in? Plus having land is damn near like gold. If I can see it and feel it, I have more faith in it.

 

[philmonroe]

Of course he'll say some dumb shyt like this in a "black" platform

Maybe your dumb ass only stays on “black” platforms because dude always says this whether the audience is black white or alien.