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

[Contrefaire]

What exactly comes with it besides being responsible for upkeep?

My dad used to manage (now owns and manages) apartments and that shyt is a headache. To start, you can't say "besides upkeep" as if it's no big deal. All that shyt people love to brag about when they give their reasons for why they prefer to rent instead of own now falls on you.

Plumbing, electric, heating & cooling, pest control, general maintenance and management (listings, new leases, background checks, evictions, inspections, etc) maintaining common areas and all that falls on you. Now you can be a slumlord if you want, that's also on you, but that's a pretty illogical thing to do if you plan to do the shyt long term, even moreso if you plan to "house hack" and live there too.

 

[Contrefaire]

They tell the laymen to buy little multi-family buildings that they don't want to deal with while they snatch up all the desirable single family homes and charge exorbitant rents thereby over-inflating the overall market rate. Berkshire Hathaway wishes more people would rent instead of own too .

 

[ℒℴѵℯJay ELECTUA]

german's are encouraged not to buy property.

 

[theworldismine13]

If this was correct why wouldn't Jeff Bezos just buy all the property in the world.. The big fish leave shyt for people to chase while they sit back and laugh.

why are you comparing yourself to jeff bezos, black people are at the bottom, we have zero wealth, literally, why are you comparing yourself to somebody that comes from generation wealth that goes back decades if not centuries?

there are racial reasons why black people need to buy as much real estate as they can

 

[theworldismine13]

My dad used to manage (now owns and manages) apartments and that shyt is a headache. To start, you can't say "besides upkeep" as if it's no big deal. All that shyt people love to brag about when they give their reasons for why they prefer to rent instead of own now falls on you.

Plumbing, electric, heating & cooling, pest control, general maintenance and management (listings, new leases, background checks, evictions, inspections, etc) maintaining common areas and all that falls on you. Now you can be a slumlord if you want, that's also on you, but that's a pretty illogical thing to do if you plan to do the shyt long term, even moreso if you plan to "house hack" and live there too.

you hire people to manage your properties, there is no reason to do it yourself

 

[Pimp]

why are you comparing yourself to jeff bezos, black people are at the bottom, we have zero wealth, literally, why are you comparing yourself to somebody that comes from generation wealth that goes back decades if not centuries?

there are racial reasons why black people need to buy as much real estate as they can

Name a person that rich from the house he lives in.. You are stupid and broke

 

[Contrefaire]

you hire people to manage your properties, there is no reason to do it yourself

And? Property management companies cost money and you still have to pay for repairs and other issues out of your own pocket.

 

[Big Blue]

Yeah that's dumb. What are you going to do when you retire? I want to own so when I retire, I'm not paying a mortgage or rent anymore.

With that said being a landlord is not easy nor is it as proditable as people think, especially if you're trying to flip old crust properties. Real estate is not a sure investment as much as these gurus try to tell you.

 

[RTF]

I see lots of young people celebrating buying their property and in general it's a good thing. Better than renting.

But I see that type of home ownership as a trap. What you really want to do is be a landlord. The property should pay for itself at a minimum. The capital on the mortgage you repay becomes all profit.

 

[How Sway?]

He owns the properties so you don't have to

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.

This comment



“Don’t buy a house guys, just rent one of my properties”

-Grant

 

[Mr Hate Coffee]

Yeah that's dumb. What are you going to do when you retire? I want to own so when I retire, I'm not paying a mortgage or rent anymore.

Most people retire and either move into a community or a small condo in a place with nice weather. So that point is kinda moot.

Like I said before, there are a lot of facets to home ownership. And lets be clear, unless you pay off the mortgage you don't own the house. I'm tired of people saying that when most people have never paid off a house in full.

Next, let's say you buy a starter home for $150K. You live there until you have kids. When it's time to sell you're completely a slave to the market. Let's say the market is good and your house is worth $250K. Now you can take that profit and look for another house. The thing is that next level house might've cost $300K back when you bought your first house but it has appreciated as well. Now it's worth $500K. All of a sudden that $100K profit doesn't look so big when your next house has jumped $200K.

Basically you're damned if you do and damned if you don't if you're buying houses just to live in. Unless you buy in a desirable neighborhood and move to a shytty one, the market is gonna catch you either way. Meanwhile if you rent, at least you have flexibility to leave whenever and go wherever.

There's no right or wrong but it's not as black and white as folks make it seem. ESPECIALLY if you have familial considerations.

 

[Silver Surfer]

So my house is now worth 45k after 4 years more than I paid for it...but it was a mistake?

 

[Silver Surfer]

Most people retire and either move into a community or a small condo in a place with nice weather. So that point is kinda moot.

Like I said before, there are a lot of facets to home ownership. And lets be clear, unless you pay off the mortgage you don't own the house. I'm tired of people saying that when most people have never paid off a house in full.

Next, let's say you buy a starter home for $150K. You live there until you have kids. When it's time to sell you're completely a slave to the market. Let's say the market is good and your house is worth $250K. Now you can take that profit and look for another house. The thing is that next level house might've cost $300K back when you bought your first house but it has appreciated as well. Now it's worth $500K. All of a sudden that $100K profit doesn't look so big when your next house has jumped $200K.

Basically you're damned if you do and damned if you don't if you're buying houses just to live in. Unless you buy in a desirable neighborhood and move to a shytty one, the market is gonna catch you either way. Meanwhile if you rent, at least you have flexibility to leave whenever and go wherever.

There's no right or wrong but it's not as black and white as folks make it seem. ESPECIALLY if you have familial considerations.

You own it in the sense you can sell at whatever $$ you want and can also borrow against like a bank....there is a signed contract....the bank cant come take it back or resell it when they want ...so you have ownership rights.....dont spin it like you dont have any homeowner rights

You also didnt mention anything about tax incentives to owning a home

Why do the majority of wealthy people own a home?

 

[Field Marshall Bradley]

you hire people to manage your properties, there is no reason to do it yourself

Not necessarily.... it makes things a lot more profitable if you can do half the work yourself....

 

[Field Marshall Bradley]

So my house is now worth 45k after 4 years more than I paid for it...but it was a mistake?

Can you get a check for that 45k right now?