Related Posts
Roth vs Traditional 401k, thoughts?
How do you effectively plan for retirement?
Any loan facility available in BOA
More Posts
Pro
Hi Friends , I have 18+ years of experience across multiple departments, with over 12 years exp in Business Development , Project and Program Management. Looking for suitable job opportunities as Senior Program Manager . Any referrals are appreciated . Could you please DM . Thank you.
EY Google GE Deloitte Dell Amazon
Bowl Leader
Conversation Starter
Any openings plz help for power bi
Additional Posts in The Real Estate Bowl
New to Fishbowl?
Download the Fishbowl app to
unlock all discussions on Fishbowl.
unlock all discussions on Fishbowl.
I invest in real estate on top of investing in other ETS, stocks, ect. I see it as another aspect of my overall portfolio. Additionally, I want to learn the rental business as fast as possible, and the best way to do that is to get your hands dirty and put in the work. This includes negotiating with contractors, screening tenants, showing the property to applicants. Why do I manage it myself? it’s really not that hard. If you put in the work in the beginning making the place nice, it’s not much work once you have tenants. I’ve heard from my tenants once in the last 6 months. Why this over other investments? Appreciation, cash flow, and tax advantages.
I did fundrise for years, the returns were nowhere near as close to the rentals I own and operate on my own
Subject Expert
I own one rental property directly. It’s a bit of a hassle for $300/month cash flow. And that is before unexpected maintenance issues. On the other hand, I’m in a few private real estate funds. My funds are doing ground up builds and large apartment complex refreshes. They generate cash while increasing asset value. And they also use leverage. It’s way easier and it’s making more money. Additionally one fund is an opportunity zone fund so my gains are all tax free when the fund liquidates or I sell out.
Mentor
I don’t do either personally hut the returns are much better if you buy/manage your own vs etfs or other platforms. Less middlemen that need to get paid.
Mentor
For sure but fundrise and reits are paying for all those things too plus their own overhead.
Subject Expert
Any time you add a layer of management, there’s a tax to be paid. With Fundrise, you’re paying at least 2 layers of tax - the operator as well as the Fundrise platform itself.
I also question the type of operator who would place a SFH or a pool of properties on Fundrise instead of sourcing direct investment. If the operator had a history of consistent strong returns, finding investors should be easier than going through an anonymous crowdfunding type platform like Fundrise.
Finally, I also like holding the cards to control my investment. I understand all investments have risks and elements of volatility, but knowing I don’t need to rely on someone else’s decisionmaking for my investment to be a success is nice.
Mentor
I bought my house in 2012 and the average yearly appreciation is double my salary.
So imagine whatever your salary is. Multiple it by two. That’s my equivalent illustrative return. What would an ETF give me?
Just to be clear, you’re talking about your main residence not a rental property?
I own 3 rentals and manage them myself. I have 2 more lots that we’re currently going thru permitting process. They’re all brand new ground up construction so there’s essentially no maintenance or real managing..my tenants Zelle me or deposit their checks and we’re good. My reason i do this instead of the platforms you mention is that it would be extremely hard for me to get these type of returns anywhere else. I do ground up construction, so there’s nice equity off the jump. All built in 2021+
Property 1 - all in 280K - worth 420K - nets me 1K per month
Property 2 - all in 300K - worth 370K - nets me $770 per month
Property 3 - all in 269K - worth 340K - nets me $1200 per month
Property 4/5 are pending approval from the city but are on the same street as property 1. When it’s all said and done they’ll be side by side all in 300K on each and each worth 440K.
4/5 properties here are Duplexes btw - 1 sfh Airbnb
P1,
Just the usual tax breaks that come with owning rentals. Whenever I do sell though I’ll likely do 1031exchanges to reinvest into the area and to defer the capital gains. And most definitely I don’t mind sharing how I get started
Agree with most of the others. Big difference in owning your direct assets vs. owning an ETF in the class. When I started some of these other options didn't exist, but I prefer to have control over the assets. I am in a HCOL / high RE cost (rent and price) growth area. I know the area, I have my own specific approach (which is mostly buy and hold), I decide on leverage and have HELOCs which can provide me personal liquidity to draw on the equity. I don't have the same considerations as a public fund would, or the costs. Can manage the assets towards my own financial goals.