Today's inflation is a result of corporate avarice, not only problems with the supply chain. We know that the money obtained by the higher prices isn't being transmitted along the supply chain since businesses are reporting record profits. More pricing result in increased revenue for businesses, which stays with them and goes into their pockets. We can rule out supply-related inflation because of this. If your stocks are extremely weak, now is an excellent opportunity to take a battered 401k and convert it to a Roth. Then, your Roth will be tax-free, and you will just have to pay taxes on the substantially reduced current values.
The top experts, however, have access to confidential information and data that is not made available to the broader public. Understanding the strategies to use at this particular time is one thing; having the expertise required to successfully implement them is quite another.
I entrust my daily investing decisions to an investment adviser since their entire skill set is centered on being both long and short at the same time, adopting a profit-driven approach and reducing risk as a buffer against the inevitable downtrends. It is very hard to underperform when paired with unique insights/analysis. I've been working with an investment advisor for about two years, and throughout that period I've earned a return on investment of over $1 million, 570,000 dollars.
@@patrickperez7387 Due to the significant falls, I need advice on how to rebuild my portfolio and develop more successful tactics. Where can I find this teacher?
@@waynestones Yes, I have complete trust in a financial advisor who has received US SEC certification. In fact, I'm not sure whether I can say this, but I'd advise looking into "sharon lee casey" because she was a major problem in 2020. In addition to looking after my assets, she serves as my mentor.
@@patrickperez7387 She has excellent credentials and an outstanding occupation. Hence, I swiftly copied Sharon's whole name and typed it into my browser. I'm curious to discover why she is so busy, and despite the fact that she has unquestionably good credentials, I nevertheless schedule a meeting with her.
Great video though I think you were more biased towards Real Estates! Personally, I think stocks are "better". Major con however is that it needs your time, which is easily countered by working with/through an expert. Made my first million earlier this year through one. Have dabbled into Real Estates more than a few times, won't say I've been so lucky. Another advantage is that you need relatively lesser capital to go into stocks than real estate. Lastly, can you do the job of a Landlord? Can stocks call you by 12am about a broken pipe?
This is quite funny but true. Went into real estates sometime last year. Wasn't quite as profitable as I had expected. You mentioned something about an expert. Who's he? Sounds quite amazing?
@@davidblakes4952 A she actually "Nancy Lynn Lewis", she was in the news when she revived Grumac company sometime in 2018. You can check her out online for more.
@@planetsaver Wow I know this little lady. Once attended a seminar she was also in attendance here in Texas,, Great speaker. I still think Real Estates is a safer bet
Depends on your connections and network. If you discount a property at 10% of market value it will fly and you will get cash offers with 7-10 day closing times. Its all up to perspective and dependent on how well you pre planned your exit strategies in your market.
Stock's quick exit is a double edged sword. Ability to make quick trades has turned stock market into a gambling casino. Huge fortunes have been lost due to "quick exit" made possible by stocks. Usually only people who win with high volatility/quick exits are the agile traders or high frequency trade algorithms. Look at Buffet for example and what he says about "quick trades". Buffet want everyone who buys stocks to be locked into it for 6 months or more. I would say that would be a vast improvement over todays' gambling casino stock market.
Great video. When the pipes burst or the roof leaks, you better have the money to fix it. We had to replace all of our piping $10k then when we finally sold, the inspector found a roof leak $4k just in repairs (tile roof) not to mention people sneaking in animals that are not on the lease. Big headaches, no thanks! Took several years to make a decent profit before we sold. The area makes a big difference and state taxes!
Marko - Whiteboard Finance I've been binge watching your RUclips channel and have learned more from you than I did about finance in college. You break things down so even a 5 year old could understand it. Just want to say thank you for doing this for us and keep up the amazing work!!!
Some states can be very friendly to residential tenants. I've heard horror stories about non-rent paying tenants, can't be evicted, and when they finally do leave, trash the place and you will never collect any damages. And you have to have a certain "ethical sense" to evict anyone from their home, even rented.
@@Motivation2Invest Correct! I bought several "fixer-uppers" and did the repair work, I manage and maintain and rent them. Yes, it is a part-time business BUT the easiest money I ever made with a very high ROI.
Seems to me like REITs are a happy medium where you get the liquidity and low barrier of entry like with stocks, but you’re also investing in tangible properties. I’m a little late to the game but I just discovered Fundrise which I’m excited to learn more about. Personally I’m in no position to buy physical property but would love to benefit from the ROI of real estate. Either way great info here - I just learned a thing or two
personally have been buying stocks since the beginning of the year and yet nothing's changed, but I've been reading articles of people still in the same market pulling off over 350k in just a couple months. Its tough out here!
Australia, grew mostly by REI. Imo, It is still the way to go because it is the most viable way for the populous to gain the security for their pensions (retirement). I have friends who do the investments and friends and relatives who invest is properties. The property side of investment seems to be a clear winner, but I can see this changing due to market forces. Prices of properties over here were inflated to a very high amount which is causing a bubble effect, where young starters to the property ladder cannot even start to get onto the first rung. As an example , my wife and I bought our house for $280 k 8 years ago.It has been valued at around $500,. The house has been paid off quickly up to the point where only $90 k is now owing. This will be paid off quickly, but if we were to buy another property at the moment, because of the false value we would be in negative gearing and make very little in the foreseeable future for an older couple. Prices of housing are affordable only for those who have continued to invest in properties for rentals. These days it is a higher risk to buy properties than only a few years ago. In my humble opinion, the property market is and has been manipulated for too long and when jobs are low it is impossible to even think about climbing on that first rung. Australia is not geared up for full rentals because of the low population imo and I cannot see the situation being sustained for much longer. The price of fuel has just went through the roof and will have a permanent knock on affect on jobs and property . Wages are rarely kept up with inflation and I am now starting to see younger families which are just starting off, with even lower incomes and even less than a chance to buy a house. In the 17 years I have lived here, I have noticed the standards of living, prices in the shops getting to high with no reason for it other than greed ! I have come to the conclusion that the overriding force IS GREED and until the government step in to stop this and start looking after it's people, the young are going to be disillusioned and I am scared to imagine where this will lead. All from nothing to nothing is not encouraging for business because as the will find out, they can raise the prices in the shops but if there is no-one to buy, we all end up poorer. Thanks for your videos Marko, I enjoy them immensely. ( and sorry for being all over the place on this )
For the past 30 years, I've invested in apartment buildings and mutual funds. Mutual funds give me more peace of mind. Real estate has provided a better return for me (keeping in mind most of my real estate is in southern California, where property values are inflated). Comparing the two (which is difficult as both are not constants for all that time), real estate is the better 'value' due to what I can do with it, how I can write it off, tax shelter, 10-31 exchanges, etc.
Good Information, what percentage of your rental income does one usually give to a property manager? As you stated a younger investor isn't going to be able to handle all the service calls on rental properties.
Marko, I liked your video about real estate compared with stocks. It is difficult to simplify, but you did so about as well as I have seen. Thanks, and I will share.
A negative in real estate is it is tied to a location. Choose the wrong location, and you may see depreciation, not appreciation. Just ask Detroit real estate owners. Single stocks also have this issue, but a diversified investment fund does not.
I absolutely love your educational contents and the extremly professional and authentic attitude. Not only do I learn financial education from you, very well placed jokes as well. Now I can temper with any country's flag and then promise the people of that country to eat one of their favorite and well known dish of food!. You are amongst the bests and I admire your generosity and knowledge. Thank you.
When you buy that rental property, you must add closing costs to your cost of entry. You will also pay property tax and insurance each month as part of your mortgage. These and other costs will reduce your cash flow and your profits. Replacing appliances will also take bites out of your returns. Appliances are poorly made nowadays so you might expect to replace one every one or two years. Finally, whether you have good tenants or jerks will greatly affect your experience as a landlord. What percentage of tenants will give you trouble? I would estimate fifty percent. Finding good tenants is paramount!
@@robocop581 The ice maker in my expensive KitchenAid fridge quit when it was 4 years old! Can’t be repaired. I’d have to replace the freezer door. Everything is junk nowadays. The plumbers and repairmen will tell you so.
All the above is good info. I'm on the passive side. I have done joint ventures and mortgages and now a moving to private equity. I skipped stocks because of focus. I wanted to focus all my energy on a single thing and I picked real estate because most people actually know more than they think. People are aware of what houses sold for, what it is like to rent, what it looks like before an area is developed and after and it's benefits, Even how houses and condos are built as they drive by daily and stare from their car, train or bus.This is information that you are not aware you have, but you really do. You can get in your car and go look and go online and pick up a phone and call to vet a borrower, developer or builder. I'm sure a lot of people are holding off looking for that Tesla stock, but those people don't make much because they are waiting. Also those people think in dollars, not percent. I do know people that make an income with stocks, but they work way harder than I do. I am blessed with a decent job and spend my time focusing on RE. It is great to drive by and point and an asset that your are involved in with via mortgages, development, actual construction or maybe even partnership. Sounds to good to be true? 6 years in and loving it. Started from the bottom. I now visit offices and sites for meetings and educational seminars, private equity opportunities and celebration of successes. No one has ever called me to fix a toilet and I've never had to panic sell a stock. Lowest annual rate of return has been 10% and that is not an average, but the lowest of anything in my portfolio.and that was secured against land value. The others have, by luck produced some astounding numbers. Better to be lucky...
I have a rental house and it is a lot of work compared to stock and bond investments. Renters break stuff all the time including appliances, sinks, etc. They simply do not take care of properties like owners do. Also, when renters move out there is a lot of repair, restoration and interviewing of new renters to do. Not recommended for someone who is not handy at all. It is too expensive to hire people to fix every issue that comes up. You will not make any money if you do hire someone to fix every issue. I recommend REITs.
Marko. We have done them both. Landlording and investing. Our conclusion is the relative market. California means landlording does not work well. Too hard to buy the house to rent out. And renters tend to flake out. Texas is better. Investing is simple and easy to make money providing you know how to invest smartly. For example, it is an easy 6% dividend on T or MO. But in California on a typical 500k home you need more than $30k annual rent to cover Monthly operating expenses. And then we have the hassle factor. Being a landlord is a pain in the neck. In our final analysis we prefer the dividend route while selling covered calls in the off months from ex-divided dates. 6% turns into 18%.
One key concept that I found myself not understanding was that real estate (houses and appartments in particular) will still cost you a given amount of money if you want to maintain the value of your property and the bottom line of these costs often comes close to being almost as high as rent, over here in Europe. However, short-term rental is really picking up (over here in Europe) and my first real estate investment has turned out one of my most-profitable investments so far. Thanks for a great video, as usual, Marko!
Awesome video, Marko! Watched to the end. Personally, I prefer real estate, because it produces cashflow which can more than cover for your needs and lifestyle. I'm not sure about the US, but here in the UK, there are strategies that allow you to get cashflow from properties you don't own and the entry point is much lower (£4K-7K) than buying a single let.
Thanks man for the 1031 info. I"m not quite sure that I fully understand but its a start. I always heard Kiyosaki say that he pays zero taxes. But if you never liquidate the property then you don't really get more money? I guess that you can rent out a higher end property and charge more for it? Don't you have to pay taxes on the money that your tenants pay you? This is a great topic to discuss. Thanks again.
Miguel Castillo most of your income gets written off due to write offs including depreciation, where you get to write off the purchase price of the property over 27.5 years. It’s a game changer.
When you put a rental property into service, you can depreciate the purchase price over 27.5 years. Tax code effectively allows you to treat it like you would plant and equipment that will at some point need to be replaced, and hence can be depreciated. So, if you buy $1M of real estate, then you have a $36K "paper loss" every year that shields the income from the property. You also write off the cost of maintaining and repairing the property (but these are real costs). Even to the point if you provide water and garbage service to the tenant, you write off that cost, whereas you can't do that on your own residence! Painting, replacing water heaters, AC and so on all are real costs that you write off against the rental income. So yes, if the depreciation and other costs are more than the income from the property, then you owe no taxes in the now, but as Marko says, those paper depreciation losses will be recaptured at the time of sale. So if you sell that $1M property after 30 years for $4M (~5% CAGR) you owe taxes on the entire $4M. A 1031 just enables you to defer the tax bill, buy another $4M property and restart the depreciation clock on the new property. But you (or at least your estate) will pay those taxes at some point.
RE looks daunting in the beginning but once you've gone through that first rental property it's shampoo, rinse, repeat. I started with one and now I have five with 91% equity with a net return of 7.2%. You can mention all the closing costs, taxes, horrible tenants, crappy appliances and these alarming scenarios will keep you from investing in RE. That's fine for RE investors like me as there will be less competition. As far as RE being illiquid, I hold long term - buy, renovate, rent it out and move on to the next property so selling is the last thing on my mind. I also own stocks but my retirement income will be 65% rental and 30% dividends. I'll be in a more secure position than those FIRE people that solely rely on stocks as people need to rent no matter what as there's a steady supply of new graduates, immigrants, students, retirees that downgrade, people that got evicted and foreign executives every year. Divorced people alone is a never ending supply
@marko do you have any videos on starting businesses? I am currently in that process and since then I am so interested in learning more about money!!! I’m not going to lie, I always stayed away from finances because I didn’t understand them! Now with your videos in like wowwwwww.
Marko, your opinion, If I buy one stock, will I use a stop loss? can I only lose the amount I paid for that 1 stock? or will I have to pay more, if the stock drops more than the amount of the one stock???
@@ancm19 Why? It's trading on the Foreign Exchange Market. 99% of folks cannot trade on the US Market because they have no idea what they are doing, lol
We are already in a big crash Inflation is a catastrophe. This CPI report is a colossal failure. To bring the housing market to a halt, the FED will have to pull all the stops. The unfortunate issue is that other markets are being decimated. If you want to stay green, you have to rely on a lot of diversification. Currently up 14% and being careful. Still a better deal than leaving it in a savings or checking account yielding 0-1 percent interest.
Whichever firm you select, make sure you get your insurance from a reputable financial adviser, such as *PRISCILLA DIANE AIVAZIAN* who has dedicated her career to financial planning. Because they will assist you in escalating, navigating better, and completing the task in a safer manner.
@@harrisonjamie794 I want to build a diversified portfolio based on my personal income. I am easily triggered/highly emotional, which could be detrimental to my portfolio. I hope I am a patient and systematic person. day trading is not for everyone and multiyear holding is not for everyone. I know my strengths that's why I need proper guidance to be able to venture
@@raychristopher7797 I have saved myself from all the hassle that chaotic market causes. These days the best way to come into the market space is by reading, studying, being patient, and seeking guidance when necessary, due to my line of work I can’t handle my portfolio so I just copy the trades of my FA. I saw her on Bloomberg business news. It’s been smooth since then.
Some comments below already asked this question, but maybe not with the same parameters. If you look at both real estate and stocks, like an index etf, what will typically perform better for growth of principal invested? Also, keeping in mind time spent managing, tennents that abuse rental law or dont leave and any typical court time/expense. I would imagine that stocks will always out perform with work and time commitments for real estate? Also, trying to stay away front fears or emotions such as "tangibility" of an asset and strickly on historical returns
Tyrone Jackson evict. Keep in mind state laws in where you own the rental. There’s nothing wrong with investing out of state in areas which are more landlord friendly and evictions won’t be too difficult.
1:36 he says 15% for stocks and real estate. Ofcourse numbers may differ but you have esy more control over your ROI with real-estate than you do with stocks. Stocks are always volatile and you never know when they'll go down or up. Real-estate does go down but the trend is always appreciation so clear winner.
@@WhiteBoardFinance Both are good. You have to ad the variable" time" in the equation. Time you put into them . all into the same spam time then you can compare them. By the way you are so cuuuete Marko.... No home bro !
Today's inflation is a result of corporate avarice, not only problems with the supply chain. We know that the money obtained by the higher prices isn't being transmitted along the supply chain since businesses are reporting record profits. More pricing result in increased revenue for businesses, which stays with them and goes into their pockets. We can rule out supply-related inflation because of this. If your stocks are extremely weak, now is an excellent opportunity to take a battered 401k and convert it to a Roth. Then, your Roth will be tax-free, and you will just have to pay taxes on the substantially reduced current values.
The top experts, however, have access to confidential information and data that is not made available to the broader public. Understanding the strategies to use at this particular time is one thing; having the expertise required to successfully implement them is quite another.
I entrust my daily investing decisions to an investment adviser since their entire skill set is centered on being both long and short at the same time, adopting a profit-driven approach and reducing risk as a buffer against the inevitable downtrends. It is very hard to underperform when paired with unique insights/analysis. I've been working with an investment advisor for about two years, and throughout that period I've earned a return on investment of over $1 million, 570,000 dollars.
@@patrickperez7387 Due to the significant falls, I need advice on how to rebuild my portfolio and develop more successful tactics. Where can I find this teacher?
@@waynestones Yes, I have complete trust in a financial advisor who has received US SEC certification. In fact, I'm not sure whether I can say this, but I'd advise looking into "sharon lee casey" because she was a major problem in 2020. In addition to looking after my assets, she serves as my mentor.
@@patrickperez7387 She has excellent credentials and an outstanding occupation. Hence, I swiftly copied Sharon's whole name and typed it into my browser. I'm curious to discover why she is so busy, and despite the fact that she has unquestionably good credentials, I nevertheless schedule a meeting with her.
Great video though I think you were more biased towards Real Estates! Personally, I think stocks are "better". Major con however is that it needs your time, which is easily countered by working with/through an expert. Made my first million earlier this year through one. Have dabbled into Real Estates more than a few times, won't say I've been so lucky.
Another advantage is that you need relatively lesser capital to go into stocks than real estate.
Lastly, can you do the job of a Landlord? Can stocks call you by 12am about a broken pipe?
This is quite funny but true. Went into real estates sometime last year. Wasn't quite as profitable as I had expected. You mentioned something about an expert. Who's he? Sounds quite amazing?
@@davidblakes4952 A she actually "Nancy Lynn Lewis", she was in the news when she revived Grumac company sometime in 2018. You can check her out online for more.
@@planetsaver Wow I know this little lady. Once attended a seminar she was also in attendance here in Texas,, Great speaker. I still think Real Estates is a safer bet
@@hildredscali1754 This right here is the second time I am coming across this name in a week. Came across her podcast and it was lit!
But you can go 33x on margin with a fha loan. So
So who is disliking this kind of video? It's not an opinion based video it's a factual video. Gosh people are funny. Anyways awesome video Marko.
Haters gonna hate
@@WhiteBoardFinance lovers are going to love ,,,,and we love your content.....and you :)
Also good to point out that stocks have a much easier exit strategy than real estate.
True sometimes people need cash fast for emergencies.
Tony J he pointed this out with the “Liquidity” section of the video.
Depends on your connections and network. If you discount a property at 10% of market value it will fly and you will get cash offers with 7-10 day closing times. Its all up to perspective and dependent on how well you pre planned your exit strategies in your market.
That’s what liquid means
Stock's quick exit is a double edged sword. Ability to make quick trades has turned stock market into a gambling casino. Huge fortunes have been lost due to "quick exit" made possible by stocks. Usually only people who win with high volatility/quick exits are the agile traders or high frequency trade algorithms. Look at Buffet for example and what he says about "quick trades". Buffet want everyone who buys stocks to be locked into it for 6 months or more. I would say that would be a vast improvement over todays' gambling casino stock market.
*Just like a tool box you need to know which investment to use in which situation to get the best result!*
Great video. When the pipes burst or the roof leaks, you better have the money to fix it. We had to replace all of our piping $10k then when we finally sold, the inspector found a roof leak $4k just in repairs (tile roof) not to mention people sneaking in animals that are not on the lease. Big headaches, no thanks! Took several years to make a decent profit before we sold. The area makes a big difference and state taxes!
Binging your videos during quarantine. Really love it and I think I'm actually learning something from them
Marko - Whiteboard Finance I've been binge watching your RUclips channel and have learned more from you than I did about finance in college. You break things down so even a 5 year old could understand it. Just want to say thank you for doing this for us and keep up the amazing work!!!
Name me one 5 year old that understood this
I prefer real estate for the tax write offs, and leverage. But both have their pros and cons. Great video man keep it up
Agreed!
100%
Some states can be very friendly to residential tenants.
I've heard horror stories about non-rent paying tenants, can't be evicted, and when they finally do leave, trash the place and you will never collect any damages.
And you have to have a certain "ethical sense" to evict anyone from their home, even rented.
*Greek-american here, we don't call it gyro, more like "yeeros"! Keep the good videos coming!
jimbo9371 or Euro
Great Video! Thanks!
I like to invest in smashing the like button on Marko's videos personally
Shane Hummus - The Success GPS that’s a high ROI 😝
lmao!
both and some physical gold and silver too
Stocks all day. " No physical work required " I'm sold. That one statement finalized my decision.
The physical work can add value to the property and thus create very high returns. Just a different perspective.
@@Motivation2Invest Correct! I bought several "fixer-uppers" and did the repair work, I manage and maintain and rent them. Yes, it is a part-time business BUT the easiest money I ever made with a very high ROI.
Why not both?
*Which do you prefer to invest in? Stock or Real Estate?*
Sign up for the WBF Newsletter here: bit.ly/WBFnewsletter
Another great explanation video.
you are a born teacher. make everything sinple and clear backed by numbers
Great video, thanks for the newsletter and the spreadsheet! :)
Can you making a video about pros and cons of REITs, ETFs and other types of stocks.
Great video! Congrats on 185,000 subscribers! Growing fast
Incredible growth goods job
@2:15 would you be able to make a video about that investment program
The Value on this Channel is second to none!
Seems to me like REITs are a happy medium where you get the liquidity and low barrier of entry like with stocks, but you’re also investing in tangible properties. I’m a little late to the game but I just discovered Fundrise which I’m excited to learn more about. Personally I’m in no position to buy physical property but would love to benefit from the ROI of real estate. Either way great info here - I just learned a thing or two
Thanks Justin
Start with REITs and save for physical property.
You are refreshingly logical and simple in your approach. Great videos.
Well presented, watched all of it. Please do one about the best income generating real estate options based on your experiences.
Both! The ease of investing in stocks with the benefits of leverage in real estate, not to mention diversifying yourself with both
Investing With Chris Id have to agree with you Chris! The idea is to preserve wealth for the long term 🙌
Yes, different income streams
Agreed Chris
Your input make absolute sense. Thank you for sharing. Be well and prosper.
personally have been buying stocks since the beginning of the year and yet nothing's changed, but I've been reading articles of people still in the same market pulling off over 350k in just a couple months. Its tough out here!
Currently, my primary worry is how to increase revenue during periods of quantitative easing. I cannot afford to witness my savings dwindle away
Love your vids, Marko! Thank you so much for making these - you're the best!!
Australia, grew mostly by REI. Imo, It is still the way to go because it is the most viable way for the populous to gain the security for their pensions (retirement). I have friends who do the investments and friends and relatives who invest is properties. The property side of investment seems to be a clear winner, but I can see this changing due to market forces. Prices of properties over here were inflated to a very high amount which is causing a bubble effect, where young starters to the property ladder cannot even start to get onto the first rung. As an example , my wife and I bought our house for $280 k 8 years ago.It has been valued at around $500,. The house has been paid off quickly up to the point where only $90 k is now owing. This will be paid off quickly, but if we were to buy another property at the moment, because of the false value we would be in negative gearing and make very little in the foreseeable future for an older couple. Prices of housing are affordable only for those who have continued to invest in properties for rentals. These days it is a higher risk to buy properties than only a few years ago. In my humble opinion, the property market is and has been manipulated for too long and when jobs are low it is impossible to even think about climbing on that first rung. Australia is not geared up for full rentals because of the low population imo and I cannot see the situation being sustained for much longer. The price of fuel has just went through the roof and will have a permanent knock on affect on jobs and property . Wages are rarely kept up with inflation and I am now starting to see younger families which are just starting off, with even lower incomes and even less than a chance to buy a house. In the 17 years I have lived here, I have noticed the standards of living, prices in the shops getting to high with no reason for it other than greed ! I have come to the conclusion that the overriding force IS GREED and until the government step in to stop this and start looking after it's people, the young are going to be disillusioned and I am scared to imagine where this will lead.
All from nothing to nothing is not encouraging for business because as the will find out, they can raise the prices in the shops but if there is no-one to buy, we all end up poorer. Thanks for your videos Marko, I enjoy them immensely. ( and sorry for being all over the place on this )
Great video
Thank you Marko this was great. What is your take on Gold
For the past 30 years, I've invested in apartment buildings and mutual funds. Mutual funds give me more peace of mind. Real estate has provided a better return for me (keeping in mind most of my real estate is in southern California, where property values are inflated). Comparing the two (which is difficult as both are not constants for all that time), real estate is the better 'value' due to what I can do with it, how I can write it off, tax shelter, 10-31 exchanges, etc.
Agree 100% my truck write off is 500 a month would take alot to get that much yield from a fund.
Mutual funds are the biggest scam
Good Information, what percentage of your rental income does one usually give to a property manager? As you stated a younger investor isn't going to be able to handle all the service calls on rental properties.
Richard Romito 10-15%
Depends on the location. Typically I see 8% to 12% being asked for.
I've seen it as high as 20%!!!!!!!AHHHHHHH!!!!
Keep making complex, interesting and helpful videos like this! This video really appeals to me and others who watch. Keep it up champ
Marko, I liked your video about real estate compared with stocks. It is difficult to simplify, but you did so about as well as I have seen. Thanks, and I will share.
Good job explaining it
Beautiful content. Well narrated and informative. Keep up the good work Sir !
Those drawings baby 🤣...Marko can we get a video on taxes? I believe this is topic that needs more attention.
Can you make a video on money market etf funds? Please! I cant find anything on them👍
I invested both in stocks and real estate hehe
🤔This exactly where I'm at, which is better or less stressful. 🤷♀️You are awesome with these vids. Thank you for sharing your knowledge.🙏
I have started getting addicted to ur advice and videos 👌
Good stuff, nice job! Thanks
Can you do a video about CreditCards whether is good or bad to have one or many to build credit..!!!
Marko mate, please do REITs vs crowdsourced real estate platforms like Fundrise, please. Thank you.
I was thinking this the entire video :)
A negative in real estate is it is tied to a location. Choose the wrong location, and you may see depreciation, not appreciation. Just ask Detroit real estate owners. Single stocks also have this issue, but a diversified investment fund does not.
I absolutely love your educational contents and the extremly professional and authentic attitude. Not only do I learn financial education from you, very well placed jokes as well. Now I can temper with any country's flag and then promise the people of that country to eat one of their favorite and well known dish of food!. You are amongst the bests and I admire your generosity and knowledge. Thank you.
LOL!
1031x that was excellent explanation. No other you tubers explained
Good comparative analysis
What about profit wise, index funds vs real estate? Which would yield better profits?
As always, great content!!
Fundrise have an app?
Hey Marko, Great advice. thanks!
In view of the current economic situation, is it logical to still invest in REITs? Thank you
GREAT VIDEO!!!!!
There's benefits to having both stocks and REITs
Go for REITs the income is worth it.
S&P 500 was up 30% in 2019!
When you buy that rental property, you must add closing costs to your cost of entry. You will also pay property tax and insurance each month as part of your mortgage. These and other costs will reduce your cash flow and your profits. Replacing appliances will also take bites out of your returns. Appliances are poorly made nowadays so you might expect to replace one every one or two years. Finally, whether you have good tenants or jerks will greatly affect your experience as a landlord. What percentage of tenants will give you trouble? I would estimate fifty percent. Finding good tenants is paramount!
agreed Jerry
Appliances that last one to two years? I believe you're trying too hard to make your point. That's a load of you know what
@@robocop581 The ice maker in my expensive KitchenAid fridge quit when it was 4 years old! Can’t be repaired. I’d have to replace the freezer door. Everything is junk nowadays. The plumbers and repairmen will tell you so.
With depreciation it’s recapture on the disposal of the asset yes you do have 1031 exchange
Hey marko, are you Serbian? Great vid man!
All the above is good info. I'm on the passive side. I have done joint ventures and mortgages and now a moving to private equity. I skipped stocks because of focus. I wanted to focus all my energy on a single thing and I picked real estate because most people actually know more than they think. People are aware of what houses sold for, what it is like to rent, what it looks like before an area is developed and after and it's benefits, Even how houses and condos are built as they drive by daily and stare from their car, train or bus.This is information that you are not aware you have, but you really do. You can get in your car and go look and go online and pick up a phone and call to vet a borrower, developer or builder.
I'm sure a lot of people are holding off looking for that Tesla stock, but those people don't make much because they are waiting. Also those people think in dollars, not percent. I do know people that make an income with stocks, but they work way harder than I do. I am blessed with a decent job and spend my time focusing on RE. It is great to drive by and point and an asset that your are involved in with via mortgages, development, actual construction or maybe even partnership.
Sounds to good to be true? 6 years in and loving it. Started from the bottom. I now visit offices and sites for meetings and educational seminars, private equity opportunities and celebration of successes. No one has ever called me to fix a toilet and I've never had to panic sell a stock. Lowest annual rate of return has been 10% and that is not an average, but the lowest of anything in my portfolio.and that was secured against land value. The others have, by luck produced some astounding numbers. Better to be lucky...
Hi Marko .. that’s why I buy stock REITS (VNQ). No work involved.
Hi Marco, can you do a video on the last point, ‘How to navigate the high cost of entry’? Would appreciate it.
This is really a great video. 😃
Great video!
Thanks for the info. Subscribed and shared!
I have a rental house and it is a lot of work compared to stock and bond investments. Renters break stuff all the time including appliances, sinks, etc. They simply do not take care of properties like owners do. Also, when renters move out there is a lot of repair, restoration and interviewing of new renters to do. Not recommended for someone who is not handy at all. It is too expensive to hire people to fix every issue that comes up. You will not make any money if you do hire someone to fix every issue. I recommend REITs.
Interesting. Do you have someone managing your rental house or do you handle it?
I tried to open an account on fundrise but got a message saying they'rnt available in Canada is there anything for Canada?
Hey Marko! Would you consider doing a video on assumable mortgages in the future?
Just another entrepreneur from Will Motivations channel! keep it up
What up!
Marko. We have done them both. Landlording and investing. Our conclusion is the relative market. California means landlording does not work well. Too hard to buy the house to rent out. And renters tend to flake out. Texas is better. Investing is simple and easy to make money providing you know how to invest smartly. For example, it is an easy 6% dividend on T or MO. But in California on a typical 500k home you need more than $30k annual rent to cover Monthly operating expenses. And then we have the hassle factor. Being a landlord is a pain in the neck. In our final analysis we prefer the dividend route while selling covered calls in the off months from ex-divided dates. 6% turns into 18%.
Thanks Marco, this was very helpful.
One key concept that I found myself not understanding was that real estate (houses and appartments in particular) will still cost you a given amount of money if you want to maintain the value of your property and the bottom line of these costs often comes close to being almost as high as rent, over here in Europe.
However, short-term rental is really picking up (over here in Europe) and my first real estate investment has turned out one of my most-profitable investments so far.
Thanks for a great video, as usual, Marko!
Thank you brate
All other costs usually equal the mortgage cost. Not the rent. Mortgage and repair ect is usually about 75% lower than the rent
tnx for the videos.
I suggest you'd start distributing your videos in 4k quality :-)
Real estate transaction costs are substantially higher
Awesome video, Marko! Watched to the end.
Personally, I prefer real estate, because it produces cashflow which can more than cover for your needs and lifestyle.
I'm not sure about the US, but here in the UK, there are strategies that allow you to get cashflow from properties you don't own and the entry point is much lower (£4K-7K) than buying a single let.
Great video idea
Thanks DJ please share :)
Is there a vid with more info on fundrise & M1?
thanks a lot
Thanks I staid to the end.
Thanks for watching Warren
How about a video on using a self directed 401K to purchase real estate, please
Hi Marko ,
Could you suggest websites to follow Real
Estate News?
Thanks man for the 1031 info. I"m not quite sure that I fully understand but its a start. I always heard Kiyosaki say that he pays zero taxes. But if you never liquidate the property then you don't really get more money? I guess that you can rent out a higher end property and charge more for it? Don't you have to pay taxes on the money that your tenants pay you? This is a great topic to discuss. Thanks again.
Miguel Castillo most of your income gets written off due to write offs including depreciation, where you get to write off the purchase price of the property over 27.5 years. It’s a game changer.
When you put a rental property into service, you can depreciate the purchase price over 27.5 years. Tax code effectively allows you to treat it like you would plant and equipment that will at some point need to be replaced, and hence can be depreciated. So, if you buy $1M of real estate, then you have a $36K "paper loss" every year that shields the income from the property. You also write off the cost of maintaining and repairing the property (but these are real costs). Even to the point if you provide water and garbage service to the tenant, you write off that cost, whereas you can't do that on your own residence! Painting, replacing water heaters, AC and so on all are real costs that you write off against the rental income.
So yes, if the depreciation and other costs are more than the income from the property, then you owe no taxes in the now, but as Marko says, those paper depreciation losses will be recaptured at the time of sale. So if you sell that $1M property after 30 years for $4M (~5% CAGR) you owe taxes on the entire $4M. A 1031 just enables you to defer the tax bill, buy another $4M property and restart the depreciation clock on the new property. But you (or at least your estate) will pay those taxes at some point.
Spell Tangible @10:10 Tanqirle 8-)
Can you make a video comparing roi of real rei and stocks
Would you please do a review video on fundrise!
RE looks daunting in the beginning but once you've gone through that first rental property it's shampoo, rinse, repeat. I started with one and now I have five with 91% equity with a net return of 7.2%. You can mention all the closing costs, taxes, horrible tenants, crappy appliances and these alarming scenarios will keep you from investing in RE. That's fine for RE investors like me as there will be less competition. As far as RE being illiquid, I hold long term - buy, renovate, rent it out and move on to the next property so selling is the last thing on my mind. I also own stocks but my retirement income will be 65% rental and 30% dividends. I'll be in a more secure position than those FIRE people that solely rely on stocks as people need to rent no matter what as there's a steady supply of new graduates, immigrants, students, retirees that downgrade, people that got evicted and foreign executives every year. Divorced people alone is a never ending supply
@reshi p Not if, what if, could have, should have......
@marko do you have any videos on starting businesses? I am currently in that process and since then I am so interested in learning more about money!!! I’m not going to lie, I always stayed away from finances because I didn’t understand them! Now with your videos in like wowwwwww.
Very detailed info...tfs
A new subbie here 🤗
Marko, your opinion, If I buy one stock, will I use a stop loss? can I only lose the amount I paid for that 1 stock? or will I have to pay more, if the stock drops more than the amount of the one stock???
Will I have enough time to make money from stocks to use that money to buy real estate? Thank you very much
Until I get this car paid off it's rice vs beans, then I plan to dip my toes into stocks and forex
I wouldn't go into forex fyi
Marko - WhiteBoard Finance could you make a video on why?
Yes I recommend stocks before forex unless your going to build a business around forex.
@@ancm19 Why? It's trading on the Foreign Exchange Market. 99% of folks cannot trade on the US Market because they have no idea what they are doing, lol
Hey Marko, Is the Non Answer intentional? By the way great video Man..
yes, it's really up to you to decide
We are already in a big crash Inflation is a catastrophe. This CPI report is a colossal failure. To bring the housing market to a halt, the FED will have to pull all the stops. The unfortunate issue is that other markets are being decimated. If you want to stay green, you have to rely on a lot of diversification. Currently up 14% and being careful. Still a better deal than leaving it in a savings or checking account yielding 0-1 percent interest.
Whichever firm you select, make sure you get your insurance from a reputable financial adviser, such as *PRISCILLA DIANE AIVAZIAN* who has dedicated her career to financial planning. Because they will assist you in escalating, navigating better, and completing the task in a safer manner.
@@harrisonjamie794 I want to build a diversified portfolio based on my personal income. I am easily triggered/highly emotional, which could be detrimental to my portfolio. I hope I am a patient and systematic person. day trading is not for everyone and multiyear holding is not for everyone. I know my strengths that's why I need proper guidance to be able to venture
@@raychristopher7797 I have saved myself from all the hassle that chaotic market causes. These days the best way to come into the market space is by reading, studying, being patient, and seeking guidance when necessary, due to my line of work I can’t handle my portfolio so I just copy the trades of my FA. I saw her on Bloomberg business news. It’s been smooth since then.
@@harrisonjamie794 how can I reach this person because I am in need of a better investment approach?
@@raychristopher7797 Surf the web for her info it's easier to get on her webpage.
Some comments below already asked this question, but maybe not with the same parameters. If you look at both real estate and stocks, like an index etf, what will typically perform better for growth of principal invested? Also, keeping in mind time spent managing, tennents that abuse rental law or dont leave and any typical court time/expense. I would imagine that stocks will always out perform with work and time commitments for real estate? Also, trying to stay away front fears or emotions such as "tangibility" of an asset and strickly on historical returns
What would be a good balance of stocks and real estate? We have 1.8 in investments and 2.8 approximately in rental homes.
I only come here for the stick figures and to watch Marko laugh at them.
So wait... which one is better lol?
haha it's up to you to decide the non-answer was intentional
Tyrone Jackson evict. Keep in mind state laws in where you own the rental. There’s nothing wrong with investing out of state in areas which are more landlord friendly and evictions won’t be too difficult.
Usually real estate
1:36 he says 15% for stocks and real estate. Ofcourse numbers may differ but you have esy more control over your ROI with real-estate than you do with stocks. Stocks are always volatile and you never know when they'll go down or up. Real-estate does go down but the trend is always appreciation so clear winner.
@@WhiteBoardFinance Both are good. You have to ad the variable" time" in the equation. Time you put into them . all into the same spam time then you can compare them.
By the way you are so cuuuete Marko.... No home bro !
I’m Greek and the question is… did you ever eat the gyro?