Is investing in real estate less time-consuming than stocks?

Discussion in 'Economics' started by helpme_please, Dec 2, 2017.

  1. toc


    Flippers: Unless you get a property at a deep discount, it makes sense only if you and family member or partner do 80% of the work and quickly. Would further help having a real estate license. Otherwise, it can be very tough margins and soon the carrying costs for "not selling" property can throw you into red. There are also flippers who gut down the property and build a 100% new house. That can ask for some serious investment and expertise in building houses.

    Residential Landlords: Agree with points but landlords should lobby for evicting tenants within a month. Laws are such that it can take upto 3 months to gain eviction and some places Landlord has to pay several hundreds to Sherrif to conduct the eviction. Given how busy the Sherrif is, this can take another few weeks atleast. Plus Landlord has to hold on to "loser tenant's" belongings for 30 days before selling or throwing them in the garbage if tenant does not pick them up themselves.
    #41     Dec 9, 2017
  2. I agree. Thats one of the reasons that I moved into commercial properties. I invest in self storage and ALF s. And some high end residential. I think I will start winding down the residential properties pretty soon.
    #42     Dec 9, 2017
  3. ALF = Assisted living facility?
    #43     Dec 10, 2017
  4. I am sorry. Yes, Assisted living facility. They are actually great investments. I live in Florida and there are a lot of old mom and pop apartment complexes and motels that sit on great locations. We buy them and modify them to be used as ALF s. We then rent the property to health care providers that intern sublet them to thier clients. We just maintain the property. We get a good steady income and have no need to get involved in the day to day minutiae.

    Since the land is usually worth more than the building on it we will eventually tear down the existing structure and build something else.
    #44     Dec 10, 2017
    jtrader33 and Clubber Lang like this.
  5. Never heard of a setup like that.
    Sounds incredible.
    Congratulations and thanks for sharing
    #45     Dec 10, 2017
  6. No problem.
    #46     Dec 10, 2017
  7. %%
    Renting is also perfect until you get to know an area+ not sure if i wanted to live in that place. i saw an old FED chart they were promoting an adjustable rate mortgage.I like paid for real estate, but like land more than most people, so overpriced houses dont do much for me. It did not really hurt the stock market, when FED raised rates from 1977 to 1980, to 14/+%. BUT 1981 did turn in to a bear market trend.LOL:D:cool:
    #47     Dec 11, 2017
  8. Arnie


    I'll bet RE has made more millionaires than daytrading has.
    #48     Dec 11, 2017
    Handle123 and murray t turtle like this.
  9. %%
    I'm sure , but not a prediction, average RE buyer/seller puts in more hours, than average trader of stocks. LOL:D:cool:.Average RE commission can be an advantage......; any would/should be careful, if you knew seller had to pay 7% /+. OK= owner agent has to disclose + gets around that LOL
    #49     Dec 11, 2017
  10. monkeyc


    You can hire a property manager but they don't always have your best interests in mind. They won't take the time to get the best bid when hiring a contractor. They just hire whoever they are familiar with.

    Everyone I know who ever invested in RE, including myself, eventually encountered a deadbeat tenant. You'll lose 2-4 months rent for each deadbeat; plus they usually trash the property.

    Don't invest in RE unless you have a strong personality and good interpersonal skills.
    #50     Dec 12, 2017
    murray t turtle likes this.