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

[bourgeoisie tall freak]

i know investment professionals that would say something similar....as in don't buy something like an investment property outright (in full) if you can get a reasonable mortgage and leverage your money elsewhere.

in that case, rent is no different than a mortgage interest, except one might get you a profit and tax breaks lol

 

[Quarquar]

Your a fukking fool that deserves to lose if you take any advice that says renting>>>>>owning

Explain to us why

 

[Wildhundreds]

Is there a problem?

Rent going up 1000% relative to wages, yearly, seems outlandish..

 

[Jsully]

But ultimately he owns them since he owns the company .

You cant "rent to yourself" in a sole proprietorship. Maybe in an s-corp setup bit not an llc.

nikkas really need to stop watching these gurus and do their own research

 

[BaldingSoHard]

Glad to see the coli isn't deepthroating this one just cause most of ya'll are renting.

 

[BaldingSoHard]

So does housing costs in places that are actually worth living in and have opportunity.

If y'all wanna go ahead and pay housing insurance, repair and maintenance and taxes on ya "homes" on top of the interest and loan for 30 plus years out of ya own pocket and then every single economic crash that occurs, ya networth goes to 0 and the banks kicking ya out...

Then go ahead.

There's a difference between a consumer of housing and being a landlord.

I much rather "own" a house through a company and not live in it myself and have someone pay my company to live in the house it owns and then rent to live somewhere else.

It's 2020 almost and people still think "homebuying" makes sense like it did in the 50s.

shyt changes, the government ain't giving away land and homes like it is going out of style.

People are mobile and global now. Nobody sitting in the same fukking house for 30 plus years.

Motherfukkers end up selling their shyt anyway.

That white supremacy attempt to derail and prevent black people from owning property.

I gotta say, ya'll are dedicated to your craft.

 

[ZoeGod]

What he should of said was invest in assets that will provide the cash flow to pay the expenses on a house(mortgage, taxes, repairs, ultilities etc). Secondly I know plenty folks who have houses rent out the basement or a couple of floors and have the tenants cover the expenses in a house. That’s an example of a house being an asset to pay of the expenses. Meanwhile your regular stream of income is yours to spend on whatever. Too many people out here making mad money from real estate. And they all started buying one house.

 

[Heretic]

Thats why i encourage everyone to buy a multi-unit property and occupy 1 of the units. You can essentially live for free while your rent roll does the heavy lifting in terms of mortgage, property tax and insurance.

isn't that basically what I said, I just used a broader term than multi-unit housing, the principle is the same. I think you might have misunderstood me

if you have enough properties to buy then you can rent to yourself and write it off as a business expense

also like I said, that's not viable for most people, which it isn't, because if that were so, everybody would do that then you'd have a bigger problem on your hands which is a housing bubble on the verge of bursting.

 

[KingJay]

Boy he was strugglin on that math
I'm no pro at real estate, but I've seen ownership go really good - a family I know bought a small home in like the outskirts kinda of San Fran in the 90s for less than 100k, and the smaller home next to them just sold for 1.2mil - and really bad stories when it comes to owning a house. I think real estate is something we should all strive to learn more about, because homes can be a very good investment if you're smart about it and have a good eye for areas that will have increasing property value

 

[North of Death]

So does housing costs in places that are actually worth living in and have opportunity.

If y'all wanna go ahead and pay housing insurance, repair and maintenance and taxes on ya "homes" on top of the interest and loan for 30 plus years out of ya own pocket and then every single economic crash that occurs, ya networth goes to 0 and the banks kicking ya out...

Then go ahead.

There's a difference between a consumer of housing and being a landlord.

I much rather "own" a house through a company and not live in it myself and have someone pay my company to live in the house it owns and then rent to live somewhere else.

It's 2020 almost and people still think "homebuying" makes sense like it did in the 50s.

shyt changes, the government ain't giving away land and homes like it is going out of style.

People are mobile and global now. Nobody sitting in the same fukking house for 30 plus years.

Motherfukkers end up selling their shyt anyway.

Again, you are a stupid motherfukker...I own multiple units myself and I am also a landlord..My tenants pay 80% of my housing cost including the cost for repairs, HOA, and other miscellaneous items that I write off on my taxes...My refund stay bunking...Point is renting for 30-40 years gets you absolutely no where financially especially if you are BLACK...I get not trying to buy a house in New York or DC or San Fran, no one is disputing that...I am in the south where the land is cheap and I live in a relatively big city, shyt is cake down here in the housing market if you know what you doing.

 

[Maude]

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

We wasn't allowed to own land while cacs got rich like this. Now they tryna convince us that it's a bad idea

 

[King Frost]

you don't buy a house

you buy land and build on it

have fun paying those 30 yr mortgages

 

[Field Marshall Bradley]

You cant "rent to yourself" in a sole proprietorship. Maybe in an s-corp setup bit not an llc.

nikkas really need to stop watching these gurus and do their own research

Rent it to your mama/cousin, but you stay there

 

[Field Marshall Bradley]

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

Very possible.... but you need to provide details... and was a mortgage involved

 

[ZoeGod]

He also should have said buy a home you can afford. To many people put themselves in a financial hole buy a home they can’t afford. Smart home ownership is what should be taught.