Building real estate portfolio

[Anonymous No.18452783]

>10-20% down
>buy
>rent it out
>let renter pay your mortgage + cashflow
>save up for another down payment
>repeat
>live way below your means and supplement mortgage payments paid by renters with your own cash to expedite the process
Is this doable if you have a high 5-6 figure income?

[Anonymous No.18452804]

>>18452783
>10-20% down
Lul what try 30-40% with a first time home owners loan

[Anonymous No.18452814]

>>18452804
you tell em rich dad

[Anonymous No.18452818]

>>18452783
What about when something like corona happens and your tennants can't pay rent

[Anonymous No.18452836]

>>18452814

uor buy now stupid round eye make me rich

[Anonymous No.18452888]

>>18452783
This sounds like a lot of work especially if you’re working on the side
The only person I’ve ever known to get real estate shit to work who didn’t literally start in 2008 is a guy who lives with his parents anyways.

[Anonymous No.18452896]

>>18452783
Implying I have the money to buy a place

[Anonymous No.18452932]

>>18452783
>Is this doable if you have a high 5-6 figure income?
No, you need a 2 figure income to do this sorry anon

[Anonymous No.18452968]

>>18452783
I recently read this book whilst travelling and having seen it mentioned on biz. Does anyone take this mentally ill chink seriously? This is the ultimate meme book, full of anecdotal evidence, vague semi-illegal advice and survivorship bias. If you take any of his ramblings serious you deserve to lose your money (just like he did ironically).

[Anonymous No.18452979]

>>18452818
well now that it happened it's not probable it's gonna happen again in our lifetimes

[Anonymous No.18453073]

>>18452979
we literally had SARS in 2002-2004. there's NOTHING stopping it from happening at any time.

[Anonymous No.18453337]

>>18452783
its all fun and games until tenants decide to stop paying rent

[Anonymous No.18454375]

>>18452783
>Buy stonks
>Collect dividends
>Sell stonk options
>Reinvest dividends and money from options into new stonks
>No worries about tenant not paying rent
>No worries about upkeep of shitty property

[Anonymous No.18455126]

>>18452783
See
>>18453337
Make sure you have enough income to cover the mortgage in the event of this. Buying to rent should be for cash buyers only really, most are over leveraged with multiple mortgages.

[Anonymous No.18455156]

>>18454375
yep

[Anonymous No.18455191]

>paying money for a second job that doesn't pay you until 10-15 years and even potentially cost you more money.

[Anonymous No.18455488]

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[Anonymous No.18455503]

>>18452783
Rich dad
>poor son

[Anonymous No.18455567]

>>18452783
Yes it is doable, but not for people who do not have experience or mentor in the game.

[Anonymous No.18455629]

>>18454375
Real estate has way, way more tax advantages than stocks. You can also force appreciation with directly owned real estate by making improvements. Own stocks by all means, but real estate is easier to leverage into rapid wealth growth.

[Anonymous No.18455655]

>>18452979
It's round two in China, and our shield-arm is shaking it's so tired.

[Anonymous No.18455940]

op book is fluffy trash

image related is top tier concrete information

[Anonymous No.18456050]

>>18452783
Being a small time landlord is a fucking nightmare, those retarded tenants will constantly have problems AND as a bonus their neighbors will also have problems with them because they're retarded. And you'll be there every fucking week to solve their retarded problems, often by throwing your own money at them. It's a lot of work and it's not that profitable.

[Anonymous No.18456190]

>>18452783
His points are too vague but not a waste of time to read. Want to make money by renting? Don’t finance the rental property. Immediately invest profits into dividend stocks. Use dividends as extra income and be prepared for a renter that can’t pay by having an emergency fund. Air B&B takes some of the risk out of renting. Your tenants are less permanent.

[Anonymous No.18456240]

>be me
>buy house for 25k
>borrow money from rich person to flip it
>do the work myself
>put in 70k
>sell for 180k

It’s doable, boys, but you’ll never do it if you don’t try.

[Anonymous No.18456259]

If you're a renter worried about not being able to pay rent, here's some advice: just rely on your savings. Tap into that rainy day fund. Borrow money off your parents. Sell your iPhone. You really should have planned ahead for something like this.

It's not too late to go back to school to learn a trade, either. Apply yourself. Print some resumes and hand them out.

[Anonymous No.18456320]

>>18455488
You

[Anonymous No.18456727]

>>18456190
High IQ.

[Anonymous No.18456771]

>>18452979
Please read a fucking book brainletboi

[Anonymous No.18456815]

>>18452968
I had always thought he made his money selling books and seminars

[Anonymous No.18456846]

>>18455940
Based Sowell

[Anonymous No.18456975]

>>18455940
based

[Anonymous No.18457088]

>>18456846
Best quotes:

"There are no solutions. Only trade-offs"

and

"A lot of problems in the economy have simple but hard remedies."

[Anonymous No.18457219]

Reminder that Robert got rich selling seminars and books, and definitely not from real estate kek

[Anonymous No.18457229]

>>18455940

>Pop Economics

Cringe. You probably still believe shit like the Laffer Curve too.

[Anonymous No.18457663]

>>18455940

[Anonymous No.18457711]

>>18452804
Uh what? Try 3% with a FHA loan. Special deal for wagies only. Based self employed master race isn’t getting a mortgage no matter what though so your only choice is to sign up to slave.

[Anonymous No.18457727]

>>18454375
>fucking with options at all in a market this manipulated

Just stick to the divvies

[Anonymous No.18457813]

>>18457727
I thought dividend investing was a meme? Isn’t it the same as any other stock at the end of the day?

[Anonymous No.18457929]

>>18457813
its just a good place to put your money instead of a savings account or checking with 0% int, with 3% inflation a year as avg your money is worth less everyday its not gaining interest in something. You are literally making 3% less wage every year when you dont get a 3% raise minimum

[Anonymous No.18458159]

>>18457711

I remember seeing how hard it was for self employed people to get approvals unless they had like 3 years of everything ready to turn over for review.

Is it really that hard?

Could you get a business loan instead and rent the place out to yourself? My local credit union seems to offer mortgages for things like that?

[Anonymous No.18458179]

>>18455629
I will continue to hold tension in my body.

[Anonymous No.18458184]

>>18452804
Literally 5% on a conventional you moron

[Anonymous No.18458224]

20% down, piggy back a 100% LYV line of credit, collect rents for 18-24 months, set cash flow aside in case of an emergency, use 20% line for down payment of house #2, rinse, repeat.. Don't think about pocketing cash flow for at least the first decade

[Anonymous No.18458305]

>>18457813
look up QYLD

[Anonymous No.18458330]

If I'm a first time buyer what should I put down? I have a credit score in the upper 700s. My parents keep telling me 5% but I don't know what is optimal. I think I would turn it into a rental property after a few years of living there (looking to buy a relatively new construction townhouse or condo)

[Anonymous No.18458420]

>>18452783
I've made a great living as a real estate investor for the last 15 years. couldnt imagine doing anything else. that book is an excellent way to get started and follow it to the T. I also recommend "the four hour work week" I forget the author.

[Anonymous No.18458485]

>>18456190
>Less permanent
It's almost like they were never there at all!

[Anonymous No.18458486]

>>18452968
I think he went bankrupt, book is old as fuck either way, my actual dad used to have this.

[Anonymous No.18458508]

>>18458159
>Could you get a business loan instead and rent the place out to yourself? My local credit union seems to offer mortgages for things like that?
Maybe. I’ve seen threads on Reddit where FBA sellers with 5 years of six figure income can’t get a loan anywhere with 30-40% down. I’m no where near that so I’m completely fucked. Going to have to find a w2 gig if I ever want a rental property.

[Anonymous No.18458548]

>>18455940
interested on reading it, is this book a psyop by the upper class to turn the working man into brainwashed servant tho?

[Anonymous No.18459083]

>>18458508

Damn, similar line of business. I guess they don't like the fluctuations and risks of that business, which does make sense as most fail or get squeezed by over crowding of supply.

I thought I did read that if you have 401k/IRA other assets that you're holding that it's a nice collateral that could help more so than whatever the cash flow of your small biz is.

I can only imagine there will be start ups or "innovative" companies that would be willing to offer lighter mortgages for more interest to address the 1099ers.

[Anonymous No.18459302]

>>18452783
OP, you're using a sling shot in the era of machine guns. This old boomers strategy won't work in today's time.

Tbh his real estate strategy is kinds shit anyways. Look into buying and renting out farm land.

[Anonymous No.18459498]

>>18458330
>5%
It all depends on how much of a buffer you want. If something like Covid happens down the line, you want to be able to cover rents for a month or two. You want this 1-2 month buffer as well for vacancy due to no tenants, fix it up etc. The first couple of rentals are a great way to learn how to /diy/ renos

[Anonymous No.18459602]

>>18452783
I make $70k from my job and $26k by house hacking. Start with that, buy a duplex, live in one ans rent out the other unit. After than you are already making a fuckload so you can save for buying Bitcoin, roll your gains from the next run into a down payment for your next property. Rent it out, rinse and repeat until you've replaced your income.

[Anonymous No.18459718]

>>18455629
Real estate also requires work and is a a depreciating asset (unless there is a bubble going on)

[Anonymous No.18460149]

>read this
https://johntreed.com/blogs/john-t-reed-s-real-estate-investment-blog/61651011-john-t-reeds-analysis-of-robert-t-kiyosakis-book-rich-dad-poor-dad-part-1
>read this

[Anonymous No.18460343]

>>18452979
thats not how probability works

[Anonymous No.18460408]

>>18455629
The high leverage in real estate is a great way to get rekt if some unseen event causes your cashflow to be interrupted

[Anonymous No.18460881]

This only works in a bubble. When people are losing jobs left and right (RIGHT NOW), good luck carrying over 5-6 mortgages by yourself.

[Anonymous No.18461001]

Good books for his mentality to invest/money.
Some stuff was super relateable. My parents never once talked to me about money or about money with the family. I learned good finance by doing the opposite of what my parents did. My parents NEVER invested and were ALWAYS poor. However when he starts talking about how he would do shit like take out a massive loan, "semi own" the house and then immediately sell it before the ink dries and then never end up taking out the loan, I honestly get lost and that's not really the kind of money fuckery I want to get into. I dont have the jew balls for that.

[Anonymous No.18461418]

>>18460149
J O H N S N E E D

[Anonymous No.18461447]

>>18452783
Kill yourself parasite.

[Anonymous No.18461490]

>>18457813
Dividend stocks give you cash to allocate towards your own investments. Companies that do not pay dividends are asking you to trust them to manage the money. Plus, you can hold dividend stocks forever. Growth stocks are ultimately speculation since they mean nothing until you sell them.

[Anonymous No.18461517]

>>18458420
Tim Ferriss.

[Anonymous No.18462746]

>>18452783
Sounds doable, but you the people living in your homes are renters. A class of people that the civilized want nothing to do with.

[Anonymous No.18462841]

>>18452783
>''Just get passive income bro!''
>''Just invest in real estate bro, I swear its easy money bro!''

Here I saved you 30$ or whatever this meme book costs.

[Anonymous No.18462970]

>>18458486
he's had many of his businesses go bankrupt along the way but managed to never personally be the one holding the bag. interesting case study, but a bit sleazy.

[Anonymous No.18463017]

>>18455940
Sowell was an Uncle TOM

[Anonymous No.18463386]

>>18452783
You need to put 30% down on a rental property assuming you aren't going to be living in it.

[Anonymous No.18463411]

>>18463386
You can list a property as a primary residence and then in two years list a new place as a primary residence

The advantage being, you only need 10% for a primary residence

[Anonymous No.18463422]

>>18452804

[Anonymous No.18463451]

>>18452783
You're not getting 10-20% down unless it's your primary residence. And even then, only if you have a good income and great credit. IE, not you.

[Anonymous No.18463465]

>>18463451
What’s good income?

[Anonymous No.18463471]

>>18455629
Not to mention depreciation on taxes.

[Anonymous No.18463476]

>>18452818
then you kick them out? pay your rent or gtfo. learn some responsibility and save your money for emergencies. astounds me how nobody has any emergency savings for things like rent

[Anonymous No.18463485]

>>18455629
This is true but it's also very much hands on. The cost to get started is high as well so someone could always just put their money into the market until they have enough for a down payment. Land lording is also pretty jewish

[Anonymous No.18463519]

>>18456240
There are no houses on the market anywhere that can be bought for $25k and flipped for $180k. That ship sailed years ago. You must watch those shitty fake house flipper shows, fapping your tiny dick.

[Anonymous No.18463549]

>>18457711
You will never get an FHA for a rental property, stupid.
You know how I know you've never applied for a mortgage?

[Anonymous No.18463572]

>>18463476

Then you have no-one paying your mortgage... brilliant strategy

[Anonymous No.18463570]

>>18458159
>Could you get a business loan instead and rent the place out to yourself?
No.

[Anonymous No.18463714]

>>18457813
No. Dividend stocks actually pay you a percentage of the companies profits. The price of the share is much less important. If Coca-Cola goes down $50 my dividend doesn't change and if I reinvest the dividends to buy more of the stock then I'm able to get even more of the stock at a discount. You don't have to sell dividend stocks to get cash out of them, you just stop reinvesting the dividends and take a pay out. With stocks that only have value through appreciation you have to A) sell the stock for cash and now you don't have however many shares you just sold and B) you have to hope someone is going to pay more for it than you.
Dividend paying stocks also tend to be less volatile and over the long term are a better hedge agains market volatility because your main way of getting your money from them doesn't require you to sell anything therefore downturns don't matter (unless you're liquidating assets for other reasons).

[Anonymous No.18463785]

>>18457813
How can you be this clueless? Dividend stocks are the backbone of the market. They're what prop up 401ks. What are you, 14, and think everyone is a day trader on the market? Wake the fuck up and educate yourself, how the fuck are you sitting your fat ass on a business forum and not understand dividend stock?
The only thing I can imagine is you're a /poltard who's been huffing jewish conspiracy theory to the point of retardation. Seriously, what the fuck is wrong with you?

[Anonymous No.18463799]

>>18463411
If you're going to live in it you only need to put 3.5% down and you only need to have it as your residence for 1 year. You then are re-qualified to do it all over again. Only issue is that you're capped at $500k for FHA loans and in a lot of places you don't get much house for under $500k which is a fucking shame really.

[Anonymous No.18463813]

>>18463465
Don't worry your little swollen waterhead about it, you'll never qualify.

[Anonymous No.18463840]

if you guys want to learn about dividend stocks watch Joseph Carlson on youtube. He has a very good series.

[Anonymous No.18463920]

>>18463465
They look at more than your income. It's a combination of factors (including income) but also, your source of income, employment history, debt, assets (stocks, cars,), bank statements for 90 days, tax returns for two years. Probably some other things as well.

[Anonymous No.18464555]

>>18463714
What are some good dividend focused funds kind anon?

[Anonymous No.18464579]

>>18463714
>If Coca-Cola goes down $50 my dividend doesn't change
When companies are faced with a market crash, do they not also reduce the dividend payout?

[Anonymous No.18464732]

>>18464579
certain companies might face pressure to cut/suspend their dividend if a covid type situation happens. But most companies know that its bad for the stock price if the dividend is cut/suspended.
Its rare.

[Anonymous No.18464941]

>>18461490
>>18457813
Dividend investing is a meme - these retards act like actively managing your portfolio is impossible. If you want a dividend from a company just sell a portion of your stock after appreciation - boom now you just gave yourself a dividend. Companies with dividends end up trapped where cash would better be allocated for X, Y, and Z this quarter but because we've had this dividend for 20+ years we can't appropriate the cash where we want to and have to pay it out as a dividend so that investors don't balk and crash the stock price when the div is no longer there. $XOM hasn't lowered their dividend for 37 years and have had to borrow cash to pay it in recent years. They are trapped by their dividend and have to engage in financial gymnastics to cover it a lot of the time

Meanwhile companies with no dividend or a miniscule dividend do not have a retarded cash obligation and can reinvest extra cash into their company towards whatever they want instead of relying for investors to pump their dividend back into their stock price.

[Anonymous No.18464952]

>>18452783
Back in the day of the boomer when banks gave out mortgage loans like candy this was a very easy thing to do. It’s a lot harder now because mortgage loans are very hard to get. Still a decent strategy but but you can hardly leverage as much wealth in good debt that pays itself off nowadays.

[Anonymous No.18464992]

>>18464941
You are so dumb

[Anonymous No.18465023]

>>18464992
I'll take my gains from NVDA and AMZN past 5 years over whatever dividend stocks your big brain invested in

[Anonymous No.18465801]

>>18465023
Why not both dummy

[Anonymous No.18466017]

>>18452818
then you ask the fed to get a bailout

[Anonymous No.18466060]

>>18465801
This...why not invest in something like a total market fund where you can own dividend paying companies as well as capital appreciation?

[Anonymous No.18466134]

>>18458508
>make an LLC
>make yourself a w2 employee
Problem solved.

[Anonymous No.18466173]

>>18452783

>>10-20% down
K
>>buy
K
>>rent it out
K
>>let renter pay your mortgage + cashflow
Nah. You’ll be cash flow negative with only a %20 down payment. That doesn’t mean you won’t be generating profit equity. You don’t see positive cash flow for the first 3-5 years on a rental and even then you are just socking that away to cover repairs, fees, and freak happenings like now.
>>save up for another down payment
>>repeat
No, your second property the bank is going to want to see a shit ton of liquidity or want a fuck huge down payment. Most learned their lesson in 2008 about people over leveraging.

Real estate is good, really good actually, but it takes way more work than stocks. Buy the smallest single bedroom shack you can find and start there. Don’t buy some 3 bed 2 bath monstrosity because it will absolutely destroy you. Even a 2 bed you should stay away from.

[Anonymous No.18466233]

>>18452783
Until a black swan event fucks your shit up and your tenants are unable to pay rent.

[Anonymous No.18466272]

>>18464941
>If you want a dividend from a company just sell a portion of your stock

You can’t sell covered calls on stock you don’t own. Even for actively managed portfolios, dividends are the keystone for income focused investing.

[Anonymous No.18466340]

>>18458159
Yes, it is hard unless you've set up 1 LLC that you're getting 2-3 years of billable income to, OR, you have 1 steady contract that's been providing a good deal of income for that same length of time. If you have any significant debt on top of being self-employed, they basically say "no thanks".

[Anonymous No.18466386]

>>18466060
A total market fund invests in dead sectors. I used my $6k Roth contribution and scooped 11 shares of NVIDIA at $173.50 in july and they proceeded to go up 80%+ in feb. I also got 2 shares of Amazon for $1775 and they proceeded to go up ~25% in the same time period. Doubtful a broad market fund would come close to this return.
Look at the 5 year for any of the no brainier companies like Apple, Amazon, Microsoft, Google, etc. and they have all outperformed all 3 of the major indexes for the last 5 years. How big of a brain do you need to buy this shit? If you look at the somewhat lesser known companies that may be undervalued at a certain time, re Nvidia, then you could potentially achieve much greater results.
Nvidia is up over 1000%+ over the last 5 years. Anyone who understands what they do know they have a near monopoly on GPUs. Basic DD on these no brainier companies can you yield you far greater returns than any dividend stocks over the same period of time.

[Anonymous No.18466537]

>>18466272
Selling covered calls isn't even best on dividend stocks because
1) volatility is lower on these guys making premiums shitty
2) the ex-dividend dates fuck with your call premiums for that week as there is a significant chance buying will spike right before the div date forcing you to play with covered calls in between earnings

And second of all, you can sell a portion of your stock and still be able to sell covered calls so I'm not sure what you're saying about not being able to sell covered calls. There is literally zero difference between realizing capital gains to buy more stock and using dividends to buy more stock. Hence why dividend investing is a meme. You can always reinvest your gains into more stock whenever you want that way you don't need some meme financial delivery system to shit out cash 4 times a year. Dividends are a meme and will inevitably restrict capex decisions when times are tight as I've explained in a previous post. If you're not smart enough to see how there is zero difference between reinvesting gains vs divs then you won't make it

[Anonymous No.18466579]

>>18458548
Yes. The upper middle class got together and took a vote. This guy was chosen to do the deed.

[Anonymous No.18466816]

>>18465023
Is the tax on realized capital gains higher or lower then the tax on dividends?

[Anonymous No.18466880]

>>18458305
Based ETF. Tracks the big tech giants (and Pepsi for some odd reason), pays a monthly dividend of .18 per share, and on sale right now folks (been doing my best to DCA on this one myself right now).

[Anonymous No.18466906]

>>18466816
The max tax rate on long-term capital gains and dividends is the same at 20%

[Anonymous No.18466945]

>>18466386
>A total market fund invests in dead sectors
Times change, dead sectors may have a revival and become giants in the future. Take a look at the top 10 holdings of an S&P fund from the 90's and compare them to now, completely different landscape.

[Anonymous No.18466992]

>>18458305
>QYLD
This has a dividend yield of 12 percent...wtf?

[Anonymous No.18467137]

>>18466945
Well then manage your portfolio and rebalance it yourself when the tides turn. But if that takes 10, 20, 30+ years if you invest in those companies in the meantime your a chump. Like it's entire sectors a lot of the time not just individual companies and in the event there is a single company that's an absolute shit show when you manage your own portfolio it's even easier to avoid it

[Anonymous No.18467356]

>>18466992
And it's monthly in it's payouts

[Anon T. Pooner No.18467389]

>>18452783
If you're not going to consider general repairs, taxes, and shit tenants who trash the place, then you're not ready to be a landlord.