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

[ThaBronxBully]

Being A Landlord And Having Tenants Is A Full Time Job Most People Are Not Ready For

It’s Not As Simple As Kick Back While Renters Pay Off Your Mortgage, If You Ain’t Built For All That Comes With It You’ll Be Miserable

 

[ThaBronxBully]

I buy a triplex or duplex instead of a single family. Let's say my mortgage is 1500 a month. With a single family I'd be entirely responsible for that bill. With a house hacked triplex, I'd live in one unit and rent the other two out for say, 1000 a piece for 2K a month. I'm living for free and making a few extra hundred as well. When I choose to move on, my mortgage is entirely covered and I have an additional source of income. That is house hacking. It is a much smarter investment, especially if you are in your 20s and 30s just starting out with no family, than buying a stand alone single family that you would be completely responsible for. If the water heater or hvac goes out in your single family, you need to come up with the 1k to 4k to fix it. With a house hack, you should have a lot of extra capital lying around because you dont pay rent and you are making extra money from your tenants/neighbors.

You Don’t Pay Rent But Using Your Math Your Monthly Income Is A Bi Weekly Check Of $125

You’d Make More Working At Wendy’s

Now I’m Not Saying You Are Wrong To Use This As An Investment Tool But OTHERS Need To Understand What They Are Doing

 

[UserNameless]

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.

Close thread ... and on VLAD

 

[Turbulent]

Why do people never tell you how much interest+proprety tax+renovations+how many years they're in, how many years left in the mortgage vs what % of equity they're in when they talk about how good of a deal their house was? Give the youth the full picture. The youth needs to know what you are leading them into. Dont just give them the big figures.

Let them know how you will feel like you can't afford to lose your job. Let them know how you will feel like you can't afford for your wife to leave you. Let them know how you don't just feel stuck location wise


If your wife leaves you, you better hope it's a seller's market or be ready to hold the house for a year while making the mortgage payments still

The idea that you could always sell or rent out easy-breazy is preposterous. Depending on the type of tenants you have, being a landlord can be a full-time job. And if you are a first time landlord, chances are you won't have the GAME on how to choose tenants (especially if you are desperate to find tenants to cover your mortgage).


The funny thing is in not even totally against home ownership. I just think some of y'all oversimplify the deal to make yourselves seem like you're the hustler of the century.

 

[Black Sinatra]

Can't think of a better investment with reparations funds... if it's in monetary form.

 

[ThrobbingHood]

VladTV

All that needed to be said. /thread.

 

[Greenhornet]

Rochester, NY tho

thats the point
my property tax is 1,200 ... I live in the suburbs and with that financial freedom I can go/do anything I want to do.
for 900$ extra dollars a months ontop of my other earnings I dont have to be here

Didnt tell you about the property in NOLA either

whole point of the thread is literally what I'm doing by default... if you use your place to earn money... you dont have to be there... but you still have that option, with a free room if you stop back in town.
Not only do the people you are renting to pay for where you initially live, they also pay for wherever I want to be too.

 

[ThrobbingHood]

You clearly know nothing about real estate let alone business.

I didnt watch the video but what he's probably saying makes sense if you understand the science behind it.
If you buy a house to live in at market value with no foreseeable appreciation in the future, its a liability not an asset.

If you're paying a mortgage only to increase equity in an asset that doesnt increase in value its a liability.

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.

The house you live in is only an investment at the point of sale. And thats hoping you turn a profit. Now the house/s you rent to tenants are investments at the point of purchase

The problem i have with these "gurus" is they're just like preachers: sellin hope. They tell you the attitude and disposition you should have but none of the science.

Most people who view these videos dont lack the motivation. They lack the practical knowledge needed to succeed.

With that said: these dudes will never give you the actual game for free.

THE GAME IS TO BE SOLD NOT TOLD.

And that’s the bottom line. Why would he give you gems for free?

 

[Amused Mastery]

I bet he owns his house

Nah, he rents it

 

[Amused Mastery]

Why do people never tell you how much interest+proprety tax+renovations+how many years they're in, how many years left in the mortgage vs what % of equity they're in when they talk about how good of a deal their house was? Give the youth the full picture. The youth needs to know what you are leading them into. Dont just give them the big figures.

One of my coworkers was telling me that his house was a good investment while saying that he's borrowed against it 3 times and is deeper in debt than when he bought it. "My equity went up, I'm glad I bought this house and I'd recommend you buy one too". Meanwhile, I'm completely debt free, I rent, have other types of investments stacked up (stocks/crypto) and I'm looking at him like

I'm not against buying properties to rent out at all, but too many folks are out there insisting that you buy a house as a 'rite of passage' without counting the cost or even looking at their own situation.

 

[Rawtid]

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.

Truth! In neighborhoods that blacks weren’t allowed to live, using resources that blacks weren’t allowed access to on top of that.

 

[Turbulent]

One of my coworkers was telling me that his house was a good investment while saying that he's borrowed against it 3 times and is deeper in debt than when he bought it. "My equity went up, I'm glad I bought this house and I'd recommend you buy one too". Meanwhile, I'm completely debt free, I rent, have other types of investments stacked up (stocks/crypto) and I'm looking at him like

I'm not against buying properties to rent out at all, but too many folks are out there insisting that you buy a house as a 'rite of passage' without counting the cost or even looking at their own situation.

Exactly, buying a house can make sense but it depends on a lot of factors (some of which go deeper than money).

A home is not an investment BUT it's not necessarily a bad purchase. Not necessarily a good purchase either...

 

[MJ Truth]

Havent watch the video , but why wouldnt you buy a house? One way families are able to lift themselves is through generational inheritance.
You'll have something to pass to your children , and hopefully they can build upon it and pass it to theirs.

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.

 

[hashmander]

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.

 

[Quarquar]

You Don’t Pay Rent But Using Your Math Your Monthly Income Is A Bi Weekly Check Of $125

You’d Make More Working At Wendy’s

Now I’m Not Saying You Are Wrong To Use This As An Investment Tool But OTHERS Need To Understand What They Are Doing

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.