Announcement

Collapse
No announcement yet.

Real Estate FOMO?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • #16
    No FOMO or interest. I have too little time now to enjoy all the things I want to pursue. The last thing I want is something else to divert my attention from the things that are important to me.
    My Youtube channel: https://www.youtube.com/channel/UCFF...MwBiAAKd5N8qPg

    Comment


    • #17
      Originally posted by Ripley View Post
      I have the same FOMO, I live in a HCOL area, and I can't buy anything around here as a rental. But I do own my own home.
      What is the 3 fund approach?
      Very new here.
      https://www.bogleheads.org/wiki/Three-fund_portfolio

      Comment


      • #18
        we don't really have FOMO but this last year we "got back in" ...kind of.....we bought our first investment rental property in 2006. was a disaster as it burst in the housing crisis, we had to drop the rent under our expenses because rentals were a dime a dozen and tenants would just find cheaper rents, our management company "fired" our tenants because they were extremely high maintenance. It took 10 years to just get the property back to the value we purchased it for and then bailed. you hear about all the direct real estate success; but we are in the camp of the disasters.

        Meanwhile our stock investments just ticking along. we have six figure dividend income so found no real urgency to do anything different.

        another meanwhile as the market investments were skyrocketing and "a lot" in the portfolio and "a lot" overflowing to cash (earning nothing in interest), we decided to offload cash into private REITs and syndicated real estate this past year. But we want to be completely hands-off after our direct real estate fiasco. so we took XXXXXXX amount of cash and just spread it around into different investments (7 private REITs, 3 apartment syndications and 6 farms). So that money is just parked now and we let it ride in those investments. We also have 100% equity in our primary home but I don't count that as anything.

        we are at the point we don't "need" the real estate for wealth building. that box is checked. for us it is just a diversification piece that involves very little work.

        you can get very wealthy without real estate. It's not that hard.

        Comment


        • #19
          Originally posted by bean1970 View Post
          we don't really have FOMO but this last year we "got back in" ...kind of.....we bought our first investment rental property in 2006. was a disaster as it burst in the housing crisis, we had to drop the rent under our expenses because rentals were a dime a dozen and tenants would just find cheaper rents, our management company "fired" our tenants because they were extremely high maintenance. It took 10 years to just get the property back to the value we purchased it for and then bailed. you hear about all the direct real estate success; but we are in the camp of the disasters.
          I think there are many disasters but generally small scale so we don't hear much. When did you sell? The beauty of real estate in my opinion is similar to the stock market the actual price is only the price when you sell. The biggest avoidable mistakes continue to be, in my opinion, buying high like now and even worse selling low or when breaking even rather than staying the course. One of the beauties of real estate is you have something tangible that unless in the case of a bad neighborhood turn when bailing sooner rather than later is generally advisable the rental property will never completely dissolve into thin air.

          Comment


          • #20
            My parents were small business owners and did not have an interest in investing. They had an interest in real estate, however, and used it as their retirement plan. In our first house (the one I grew up in) they rented the basement unit (separate outside access) and we lived above. We moved within the same neighborhood when I was ten and they rented both sections of the old house. Some time in high school they bought a nearby duplex and rented it. That was the total of their "empire."

            It was very stressful and tenants generally suck (at least the 20-40 year olds who typically rented from us). They don't follow the rules, let maintenance issues go, let the lawn die if the sprinklers aren't going off, will use/make drugs in the home, will have pets that aren't allowed and fail to clean up after them, will paint the walls/house if they feel like it, will leave in the middle of the night owing 6-12 mo of back rent (laws are designed to protect renters, not landlords), etc.

            They were fortunate to make money doing this and retired with just under $1,000,000, which they thought was a lot of money (they are not doctors).

            There is no way this is worth the stress to me. I hear all these stories about how RE is easy, passive, there are solutions to all these issues etc but if you're having trepidation, I say stay away.

            Comment


            • #21
              Originally posted by bobedwards View Post
              CordMcNally I can only imagine how much money these folks are making on tuition.
              Probably the only money they make is by running such courses. Reminds me of the late night real estate infomercials.

              Comment


              • #22
                Ive never had even a twinge of FOMO when it comes to RE. With a high income, Ive already "won". As Jim says, just dont do anything dumb. Passive investing is just too easy, no need to complicate things.

                Comment


                • #23
                  Originally posted by pysibal View Post
                  It was very stressful and tenants generally suck (at least the 20-40 year olds who typically rented from us). They don't follow the rules, let maintenance issues go, let the lawn die if the sprinklers aren't going off, will use/make drugs in the home, will have pets that aren't allowed and fail to clean up after them, will paint the walls/house if they feel like it, will leave in the middle of the night owing 6-12 mo of back rent (laws are designed to protect renters, not landlords), etc.
                  sounds about right from my experience . . . as a tenant.
                  “. . . And the LORD spake, saying “First shalt thou take out the Holy 401k. Then shalt thou save to 20%, no more, no less. 20% shall be the number thou shalt save, and the number of the saving shall be 20%. 25% shalt thou not save, neither save thou 15%, excepting that thou then proceed to 20%. 30% is right out . . .””

                  Comment


                  • #24
                    Op, you are fine. You could not add another dime to your investments and still retire in like 5 years or less, so I'm not sure what you'd be missing out on by not having real estate.

                    Personally I love real estate and we've been lucky/have a good eye for properties with potential and I love fixing places up. So I could definitely see us having some duplexes in the future. But it's something I enjoy, like a hobby. I'm not really looking to build a crazy empire or anything.

                    Comment


                    • #25
                      Lots of good comments so far, I appreciate the diversity of views. I especially appreciate hearing a balanced view and the potential downsides of having individual rental properties. Generally, it's rah-rah.

                      Pixel I would have considered house hacking and being a "live-in" landlord when I was younger, but sadly, I think I would appreciate some distance from tenants even if it meant learning less.

                      Regarding the current market and not knowing the future- finding a good deal for a rental property and a "sane" deal for a primary residence both seem difficult in an HCOL area. Renting right now without owning a property feels boring and safe. I do enjoy boring.

                      bean1970 -any good books for learning about private REITs and syndicated deals? I don't want to pay for yet another expensive course but wouldn't mind learning about it on my own time. It would be more of a diversification decision.

                      On a broader note (this forum excluded), I tend to avoid social media. I often have a FOMO when seeing/hearing about what others are doing. Generally, it has worked well. This whole post got started when I happen to click on the "free real estate investing summit" email.

                      Has anyone else here felt the bombardment of emails pushing real estate courses and opportunities/deals?? I thought I was above it all, but the fact that I'm posting means I'm clearly not.

                      Perhaps I need to spend more time at the Bogleheads forum and VTSAX and relax (joke)?

                      Comment


                      • #26
                        Originally posted by bobedwards View Post

                        Perhaps I need to spend more time at the Bogleheads forum and VTSAX and relax (joke)?
                        bogleheads--no
                        vtsax--mostly probably
                        relax--yes
                        (joke)--not really

                        Comment


                        • #27
                          Originally posted by bobedwards View Post
                          Has anyone else here felt the bombardment of emails pushing real estate courses and opportunities/deals??
                          General rule of thumb that has served me well for a variety of things if/when John Q Public is jumping on a bandwagon that is my cue to pass or exit.

                          Comment


                          • #28
                            Originally posted by bean1970 View Post
                            we don't really have FOMO but this last year we "got back in" ...kind of.....we bought our first investment rental property in 2006. was a disaster as it burst in the housing crisis, we had to drop the rent under our expenses because rentals were a dime a dozen and tenants would just find cheaper rents, our management company "fired" our tenants because they were extremely high maintenance. It took 10 years to just get the property back to the value we purchased it for and then bailed. you hear about all the direct real estate success; but we are in the camp of the disasters.

                            Meanwhile our stock investments just ticking along. we have six figure dividend income so found no real urgency to do anything different.
                            I'm 45 and just now starting to add to my post tax accounts, how do get that much dividen income? Is there a specific fund?
                            Vanguard High Dividend Yield Index Fund Admiral Shares VHYAX?

                            Comment


                            • #29
                              bobedwards , I think the Hands-Off investor would be a good book for you to learn about syndications and private funds. I've founded it helpful to understand the risks/rewards of this investment class. And if you pursue it further, research and join a reputable investment club to find deals.


                              Originally posted by bobedwards View Post
                              bean1970 -any good books for learning about private REITs and syndicated deals? I don't want to pay for yet another expensive course but wouldn't mind learning about it on my own time. It would be more of a diversification decision.

                              Comment


                              • #30
                                Originally posted by Ripley View Post

                                I'm 45 and just now starting to add to my post tax accounts, how do get that much dividen income? Is there a specific fund?
                                Vanguard High Dividend Yield Index Fund Admiral Shares VHYAX?
                                Why do you want dividend income? It is not tax efficient in a taxable account if you are still working in a high income bracket.

                                Comment

                                Working...
                                X