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Started By
Message
Real estate investment now
Posted on 2/10/23 at 6:14 pm
Posted on 2/10/23 at 6:14 pm
Great property, would be about 20% of total retirement/savings (the rest is in 401K/brokerage accounts).
Money would come out of cash reserves that I’ve been meaning to DCA into index funds over the past several years but never did. So not touching the 401K.
Inflation hedge, or buying just before a real estate crash?
Money would come out of cash reserves that I’ve been meaning to DCA into index funds over the past several years but never did. So not touching the 401K.
Inflation hedge, or buying just before a real estate crash?
14
Posted on 2/10/23 at 6:24 pm to Ric Flair
Nobody knows.
Posted on 2/10/23 at 6:41 pm to Ric Flair
Do you plan on renting it?
This post was edited on 2/10/23 at 6:42 pm
Posted on 2/10/23 at 6:46 pm to Ric Flair
quote:
Great property, would be about 20% of total retirement/savings (the rest is in 401K/brokerage accounts).
Your own home is part of your real estate portfolio/assets, so your percentage of total assets would likely be heavier in real estate than 20%.
This post was edited on 2/10/23 at 6:47 pm
Posted on 2/10/23 at 8:07 pm to Ric Flair
Raw land sucks---only expense and no income
Posted on 2/10/23 at 9:07 pm to Ric Flair
Depends on the kind of property, but 20% doesn’t sound like a terrible play if you need the diversity in your portfolio. If it’s highly speculative, maybe a gamble. Recreational land, timberland seems pretty stable fwiw.
Posted on 2/10/23 at 9:16 pm to Ric Flair
A lot of evidence that the real estate bubble has yet to truly burst and there could be a massive decrease over next 18 months. I would be wary of buying, but I lean on the more skeptical side.
Posted on 2/11/23 at 8:16 pm to Ric Flair
It really depends on how serious the Fed is about maintaining rates and if the economy has a hard break. Decent odds that even if they do cut the real estate market will continue to tank for at least a few months afterwards.
And of course there’s also the caveat that real estate prices are a very localized phenomenon. Some Texas or Florida markets might not even stutter during a nationwide recession, for example.
And of course there’s also the caveat that real estate prices are a very localized phenomenon. Some Texas or Florida markets might not even stutter during a nationwide recession, for example.
Posted on 2/11/23 at 8:35 pm to Ric Flair
You can’t use the property at all if it is in a retirement account. Regular investment properties you can use for 14 days. Not sure if you were looking at this angle or not
Posted on 2/12/23 at 6:03 am to I B Freeman
quote:
Raw land sucks---only expense and no income
Lol except when it makes you a billionaire overnight
Posted on 2/12/23 at 12:57 pm to Strannix
“Overnight” anything and real estate don’t overlap, lol.
The big money is always in development vision. Development is a tough gamble, though, because it takes knowledge and analysis of a lot of factors that most people aren’t capable of.
What kind of business/service is the community lacking? Which ones will pull in the most money with the most margin? Will there be enough volume? Is the labor pool large/skilled enough for staffing? What’s keeping a competitor from opening up next door in a year and killing your profits/market share?
The big money is always in development vision. Development is a tough gamble, though, because it takes knowledge and analysis of a lot of factors that most people aren’t capable of.
What kind of business/service is the community lacking? Which ones will pull in the most money with the most margin? Will there be enough volume? Is the labor pool large/skilled enough for staffing? What’s keeping a competitor from opening up next door in a year and killing your profits/market share?
Posted on 2/13/23 at 1:50 am to Thundercles
quote:
A lot of evidence that the real estate bubble has yet to truly burst and there could be a massive decrease over next 18 months. I would be wary of buying, but I lean on the more skeptical side.
Where is the evidence of a bubble bursting in 18 months? Where are you seeing this and what type of RE? Housing has been massively under-built since 2009. Most of the people are still under contracts with very low interest rates. After the 2008 melt banks were required to have better appraisals and people were actually required to qualify, so there will not be massive foreclosures like 2008. Commercial contracts were largely renegotiated under reduced Covid contracts when many businesses saw an opportunity to get better lease pricing. None of the vacation markets are going down because rental prices are continuing to drive values up.
Posted on 2/13/23 at 7:53 am to Strannix
quote:
Lol except when it makes you a billionaire overnight
When does this happen?
Posted on 2/13/23 at 7:56 am to Ric Flair
Location, location, location. I’m a realtor, and there’s always going to be a good investment in it, but only if you’re in the right place.
Example, Reform Alabama. About 2000 people, about 25 miles from Tuscaloosa. Hard to sell property there.
Woodstock Alabama, about the same size, about the same distance. But its proximity to the Mercedes plant has it as an area to buy in whereas 20 years ago it would have been a worse option than Reform.
You can still get property in Woodstock at a reasonable price, but that’s changing
Example, Reform Alabama. About 2000 people, about 25 miles from Tuscaloosa. Hard to sell property there.
Woodstock Alabama, about the same size, about the same distance. But its proximity to the Mercedes plant has it as an area to buy in whereas 20 years ago it would have been a worse option than Reform.
You can still get property in Woodstock at a reasonable price, but that’s changing
Posted on 2/13/23 at 10:13 pm to Ric Flair
Decided not to do it. Holding onto the cash for now to see how things shake out over the next six months or so.
Posted on 2/13/23 at 10:32 pm to Ric Flair
If you continue to look, opportunities will present themselves. I wish I had the stones to take more risks in RE. Good luck, man.
Posted on 2/14/23 at 7:03 am to Ric Flair
quote:
Decided not to do it. Holding onto the cash for now to see how things shake out over the next six months or so.
If you’re looking for deals coming up it seems like the government is purposely trying to kill off farmers right now and prices of inputs are going crazy but I assume you’d be bidding against bill gates
Posted on 2/14/23 at 1:51 pm to Ric Flair
in the last 2 years i have had one client buy a rental property. investment proprety loans have the highest rates currently close to or over 7%. they require 20-25% down and rents are going down in most areas while prices continue to be strong. its a horrible time to buy investment properties in alot of areas.
Posted on 2/14/23 at 2:29 pm to Ric Flair
We aren't in a real estate bubble so I'd start with ignoring whatever those people are responding with 
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