My Plan B------> Real Estate

For every one person who is doing well with real estate there are a dozen who failed. Do you think people will come on here and say-"I tried it, lost my shirt-stay away". Of course not. People only like to admit their successes not failures. It's the same with stocks-they talk about the killings-not the dogs.

 

Here in NY there were articles in the paper this week on Zombie(foreclosed) properties on LI (NY Newsday). It talked about squatters, how hard it is to get them out (they have rights). It takes AT LEAST 6 months to evict and usually longer. In that time the house is trashed, pipes/appliances ripped out, holes in walls, filth, mold, rodents, etc...while you're trying to get them out. They can change the locks-you bring the cops and they can't do a thing!! Not sure I want to invest here in NY my friend. I'm sure laws are different in other parts of the country but you may want to investigate before taking the plunge.

 

It's the same with anything new which you try. Success is not always easy or achieved the 1st time. My first few months as a pharma rep were a disaster. Every real estate purchase wasn't great but there are more profitable transactions than failures. I also bought many dog stocks but made a killing on biotech/pharma stocks.

If your not willing to do your homework or get your hands dirty don't buy investment properties. If you like passive income as a rep it is great. Reading the newspaper about failures is a way never to take a risk. There are many successful real estate investors because I think around 39% +/- of Americans are renters. Someone is successful or no one would become landlords.

Real estate investors receive tax write offs, asset paid by tenants, passive income, hopefully gain in asset value.

 

Let the naysayers complain-

Not everyone can be rich !

 

Your excellent points will fall on deaf ears. Think about it: the industry has become a haven of walking, talking messaging kiosks that have a mini-pod of a few other kiosks calling on the same customer. Compliance has been beaten into us so thoroughly that most of us are afraid to take risks or to be innovative. And THAT is why, when the ax falls, no one will call us back with an offer within 30Gs of what we made here.

I beg of you, please keep the tips coming. We just bought our 2nd rental property in the Northeast, and couldn't be more excited!

 

Just ask any questions and I will attempt to provide help. I am also from the Northeast and rent rates are increasing rapidly. I am completely filled with tenants and haven't advertised in 3 months and still get 8-10 calls a week looking for homes for rent.

I do feel sorry for the reps that feel pharma will be their entire career. It's possible but the odds are a large portion of the current reps will not end their careers in pharma. They need to at least have that "plan B" and be ready just in case.

 

I have a few questions, What were you fired for ? What rock do live under ?
How broke are you ? Did your momma drop you on your head ? What do Trolls eat ?

 

It is really easy to see who are going to be winners,
and who are going to be the losers, in this life.
Cynicism,immaturity, and ignorance allow the rest of us to prosper.
Spend your whole life being a moron-please.!

 

Pick your favorite sports car? I own it

How many rental properties could you own and work a pharma job? That number multiplied by 4 is what own.

What age will you have $1 million in paid assets? Take that age minus 20 years and that's when I had my first million.

Go to the neighborhood party next weekend and brag to the neighbors that you work for this huge company Pfizer and how important you are to the corporation. At the end of the night stare at your bedroom ceiling and wonder how you will pay the mortgage when you get laid off. I will then creep into you mind knowing others in the same job you have leveraged the free time from pharma to build side businesses which produce more profit than the rep job. Start to cry because you now understand you wasted time you cannot get back. Picture me with a smile on my face because it is the time of month the rent checks fill my mailbox.

 

You're preaching to the wall. Most here are scared to death to veer off of RC-approved details, much less launch into a moderate risk venture.

 

First of all, all men are not created equal and by that I mean: real estate is not easy. Managing, renovating, selling, caring for properties take a lot of time. Everyone is not cut out for it. Some people are meant to be corporate clones. I do agree for any rep to use their time wisely and supplement their current income. Times are very different and you could be a contract rep at any time, be down-sized, companies merge, etc. you know the story and do not be caught with your pants down.

 

I agree. I own two duplexes, paid off. Invested a total of 450k. I will clear about 20k in profit from one duplex and 10k maybe on the other one as long as my repair budgets don't go over my projections. The return isn't blowing the doors off in terms of cash flow. BUT, the thing to remember is that not only will checks come in but the property will keep going up in value.

If you just make a couple grand a year off a house and hold it until you die or retire you will be ok. It will pay for it self and grow in value. I'm in the mid-Atlantic in state Capitol city. Colleges and government work keep the city growing. For me, if I can buy 2 or 3 more then I can get cash flow up to 5 to 8k a month and total property worth over 1 to 1.5 million by retirement. With my 401k and free cash that's a good lifestyle.

It's not just becoming a millionaire. It's the cash faucet that's not dependent on you taking out money monthly like a retirement account. The buildings give me money and THATS the safety of paid off long term property. I spend what comes in and I'm comfortable. Not rich, but will be very comfortable.

 

You broke pathetic liar, Keep dreaming you poor fool !

 

You aren't very good at listening to financial experts are you.

The U.S. is running out of money and the debts are going to be called soon.

 

It does not matter. The democrats will get in and just tax everyone to their eyeballs. That has always been their solution. Tax, Tax, Tax.

 

I bought one single family rental for cash last year, 240,000. saved my ass off for years and years and years to do this and now the rent check comes in at 2,000 after the management fees and now when my partner says " hey we got our bonus checks yesterday" I laugh because bonus day comes every month with the rental!

 

$2000/month = $24000/year which is nice income. 10 years to get back your money. $240000 invested conservatively (lets say returning 5%) would bring in $12,000/year. $12000 x 10 years is another $120,000 totaling $360,000. Granted - house should appreciate and there are tax benefits. But there is also expenses, rent scammers, etc which cuts into bottom line. Congratulations on the buy. Just wondering if that was the best move. Maybe take the $240,000 and buy three properties with 10/15 year mortgages would be better.

 

Yes but now he owns the house free and clear. Almost pure positive cash flow

 

And the cash flow from $240,000 invested doesn't count??

 

This cash flow from sticks or real estate was solved for me by thinking about the stability of rents. House prices and stocks shift in value and but generally go up and some times crash bug like in 2008. The problem with stocks is that if your initial investment goes belly up you lose the cash you put into it AND the reduced payout aka cash flow from that reduced amount remaining in the depressed equity. On the other hand you may lose some of your investment in your property if values dip but I would argue that rents never go down. In face the worse things get the higher rents go. So that's how I look at the rental income. A continuous set return that only goes up over time regardless of the value of the asset, the property.