Being a small time landlord is a con for certain personality types. The numbers only make sense if you’re able to do a good amount of the repair and maintenance yourself.
You are right, been there, and now the only real estate I own is my house and cottage, and if I want a bit more real estate in my stock portfolio I will own refits, and I never worry about tenants
perotal true. Lots of good people too (believe it or not). I had the the best tenet for 2 years. I never had to do anything other than text them a merry Christmas and thanks for being the best tenets.
Neonwhite A. Would like it if he were willing to disagree with Dave occasionally & offer his own spin on things. Literally can’t recall a single time I’ve ever heard Chris say anything Dave wouldn’t also say, and some of Dave’s advice is perfectly fine to disagree on.
Neonwhite A. He’s getting paid to offer sound financial advice & teach based on facts & what will work best for who he’s offering advice to. Each situation is different. Dave has very outdated strategies in some areas (especially investment advice), and it’d be refreshing to hear just one person on his team update advice for 2020 & not 1995. Yet to hear anyone be willing to diverge from him. Dave wants “yes” people on his team.
patty109109 true, I have seen her do it a few times. I’d invite anyone here to ask any really sharp financial friends of theirs if they agree with 100% of what Dave says. Would bet virtually none do even if they agree with 90% like myself & many others do. Yet, Dave seems to find the people who agree 100% about 100% of the time when he hires people. Interesting 🤔
Miss Chris and his grace. Hope others are showing him the grace he expressed to listeners and their financial walk. Hope he and his family are doing well.
Mutual funds will be the more hands off approach to growing your money while real estate tends to be quite a bit more involved, relatively speaking. Really depends on personal preference and real estate market.
I would go with Individual Brokerage Account before a rental property or mutual funds. Rental properties take forever to make your money back and mutual funds are not tactical enough but do provide decent returns
1/3 VTSAX 1/3 VSIAX 1/3 VTIAX Low cost index funds.. way too much fees with mutual funds. Real estate returns are usually low, but I like the idea of paying cash for something small. I don’t like debt.
If the cap rate is high enough, sure you can borrow when the rate is less, BUT most people don't calculate the cap rate adequately for R&M, vacancy allowance and any number of other expenses.
It’s Dave Ramsey, dude. He made his first millions leveraging debt. Failed and went bankrupt. He remade his millions selling garbage advice to be debt free and be afraid of debt because Dave Ramsey is afraid of debt because he went bankrupt. It’s just one big circle, and it’s actually quite amusing when you think about it...
Chris Taylor I mean yeah, I don’t learn anything from him. I agree with the minimization of debt and living within your means, which I practice, but he takes it to the extreme and instead of telling people to take responsibility and utilize debt wisely, he tells people to be afraid of it. That it’s somehow bad. It’s not. Debt is just a tool.
BadMannerKorea I agree. Ramsey is also full of contradictions. Debt is bad.. except 15 year mortgages.. those are bad if they are rentals. Credit is bad.. except when it’s not, like when he suggested one kid in Maryland to transfer rental debt to a credit card.. which the kid had already closed because Dave preaches that. It’s a cult.. cults usually contradict themselves at some point.
Think the real question should be “real estate or index funds”. Mutual funds haves a ton of management fees that can be avoided with the simplicity of indexes .
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks.
@@BintuDelacroix Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. *MARGARET MOLLI ALVEY* , a licensed fiduciary whom has made me over 5 figures in profit in less than seven months, handles my investments. I could leave you a lead if you need help.
I've been toying with the idea of investing as much as possible in growth stock mutual funds until I turn 65 - 70 and then converting it all into real estate by paying cash for rental properties and just living off the rental income. I would use a property management company because I have used one before and it's great not having to deal directly with the renters.
I wouldn’t recommend that. Keeping aggressive mutual funds up to and beyond retirement age is not the best strategy due to the volatility. This is the biggest complaint I have with Ramsey.. he doesn’t consider risk tolerance or risk capacity. Retirement accounts should grow and adapt to the person who owns them.. Dave never considers this.
At 70, you don’t want the headache of venturing into the new land of rental properties for the sake of living off of it. Convert to a safer portfolio and live off of that. 70 is too old to venture into and bet on a new businesses strategy. Property management companies still deal with work and stress which could eventually fall on you as the 70yr old financier.
Don’t listen to the bs here. It’s a great idea, Lyle. Just make sure you screen the tenets and if something feels off - reject them. I had the best tenets and I feel sick that I let that properly go. Let’s say you buy a house for 300,000 outright and make 2000 a month on it. Now your marking 2000 a month all while you can sell for 300,000 or up. Or you can maybe get 400 a month on an ETF. Being a small time landlord is not hard work. Don’t let people that have never done it make you feel bad. 70 is still young
$75K in one house is a lot of money. The cash on cash return on all cash is going to be low.....Unless you get a steal deal (very difficult in this market). I like the thought of leverage as long as you have great cash flow and cash on cash is at least 10%. Illinois is a great state to buy rental properties.
Heck yes! Borrow money! Get you a piece of that cash cow. When your renter skips out, the bank will understand why you can't make the payment. The broke american way!
Azzo that is why you have cash reserves and screen your tenants. Tenants with a good credit score will always pay, since they do not want to damage their credit. God bless America!!!!!
Azzo I am fortunate that our tenants continue paying us during this pandemic. The mortgage is around $1350 and rent is at $1900. With that being said, I believe it’s possible to borrow money and rent it out. There’s risks involve of course and like any type of business, I always have cash reserve just in case they don’t pay and you have to kick them out (not counting the pandemic of course).I would say 3 months of mortgage is a good amount so you can find a new tenant in the meantime.
True...But consider all the ROI components of real estate like the depreciation deduction, interest deduction, loan payoff, and appreciation..... I pay nothing in taxes for real estate income and i gain equity and have appreciation as well. Hard to beat that.
@@oshahid1983 Huh? Those deductions are not free. That sounds like someone who likes to spend a dollar just to write off 30 cents. Investing in stocks and mutual funds comes without the maintenance, damage, non paying renters, and headaches. Buying and selling also includes just a click of a button and no agents, etc.
If done right, RE vastly outperforms stocks. RE investors often average 20-40% returns. This is bc first, you can buy homes below market value (can’t do that with the efficient stock market). Second, you can increase the value of the property thereby increasing rents. Third, you can safely use debt as long as you have adequate cashflow. I make 3 times as much from my rentals as I do stocks. But it takes lots of education and some work.
Real estate is far superior than stocks. But, you have to be educated and do it right. I made mistakes when I first started but my returns in real estate drastically out preforms the market.
Problem with investing in real estate with 100% cash, is that the returns are worse than the stock market. The best part of real estate, is leveraging your money to double your cash on cash return. That's where real estate works. If you don't want debt, invest in a REIT.
Had I have owned a home here in Colorado 10-15 years ago the value would have doubled or tripled. It's stupid how expensive housing is now with everyone leaving Cali, the east coast, and Texas.
If someone has everything else set up and has their primary residence paid off.. I don’t completely understand why you can’t finance one rental property.. especially if it’s a 15 year. That is just missed financial opportunity.
What a great topic. My split would be I hate working on homes, I dont really know how to work on homes, and its expensive to call someone to do work for you. I'll stick to growth stocks.
Most of the advantages to real estate investing is significant reduced when purchased with cash. Leverage is a wonderful tool when used properly and conservatively. I would highly suggest investing in a low cost ETF or mutual fund if you would only consider paying cash. Non leveraged real estate returns are generally not all that great, and the hassle isn't worth a mediocre cash on cash return. I've owned real estate for 12 years now and have never regretted having loans. My suggestion based on experience would be to get a rental property with 20% down, keep around 10k in a rental bank account to cover any reasonable crisis, and invest the rest in the markets. Paying cash you will be lucky to see a 8-10% ROI, and you have to deal with people and maintenance problems. With those returns, you would be better off in a more passive S&P 500 ETF.
My sister sold a rental for a million or two for cash...they are out there. Guy got money from inheritance. I'd be ok with a loan as long as you have no other debt personally.
Not only is it unrealistic. It's dumb. Money is probably the most known thing. Yet, so little understood. Saving money costs ~3% per year as inflation eats away at it. Whilst the asset for which that money is being saved appreciates at ~3% annually. That's ~6% annually negative real return. Borrowing a mortgage at ~2.5% interest, but the underlying asset appreciates at 3%. That's 0.5% nominal return already.
I really enjoy all of your content, can’t wait till more! U inspired me to make my own channel about finance, stocks, business, real estate and more! I’m 13 with about $1700 in stocks
Buying real estate with cash is the stupidest idea ever specially if that’s for an investment property. Please don’t! That’s all the money that you saved up. The philosophy of buying everything cash is for people that don’t want the hassle of educating themselves. They don’t like to run the numbers and take control of the financial statements. Every situation is different and you might decide based on the numbers and other facts. Unfortunately, going cash it’s not the smartest way to invest unless you have self control issues
@@angryarkie1642 Dave and his minions seem to allow 15 year fixed and betray the teachings of religion so he can have more followers. It is much easier to convince someone to not by a house on a 30 year mortgage and instead buy one on a 15 year than buy all cash.
Trust me, there are markets where you could buy five or six rental properties for 200000. Though you might get shot trying to collect your rent. The slum lords make the biggest returns, but there is a reason for that. You are talking about perfect posh houses to rent out to perfect posh renters. That's the rich folks market. I hang out in between. But my cheapest houses get the best returns, and have much lower taxes.
Diogenes Ataraxia yeah sadly where I’m at the slum areas are those $200k houses the market is way too hot right now. Basically gotta wait till the next recession to buy property
Tell your financial adviser that you want a mutual fund that will go up in value almost every year, pay you a dividend every month, have the option of paying no capital gains when you sell it, use a non-cash expense to reduce the taxable income, and benefit from the higher inflation rates that the Fed just promised us. That's what renal real estate is.
@@patty109109 Government seizure of assets with out compensation is a violation of our Constitution. How is this different form the quartering of soldiers.
If the renter doesn t pay that s not a problem, find a proper renter and pay the morgage until then. It s your fault if you find a hpuse which it s morgage is higher than you can pay in case that things go wrong
If the question was to choose between real estate and mutual fund, I would always choose real estate. who else has been able to create passive income investing in crypto currency.🙋.
@@jerrywalker2183 I would recommend you contact T T S, it's a crypto investment company that has handled my trades for about a year now and it has been an amazing experience.
With the evection moratoriums now that the government is going to be using increasingly I think you’d have to be crazy to invest in real estate. go with Stocks
My wife and I move alot so we have most our money in mutual funds (except years expenses cash in the bank). Id like to buy a rental property but don't want to end up moving and rely on a property management company.
Real estate has appreciated a lot in certain "desirable" parts of the US (although many of these so-called "desirable" areas, like NYC, San Francisco, and Los Angeles, can't seem to find any buyers for all the people who want to get out of dodge). I think in most parts of the US, stocks definitely beat real estate. By a huge margin. I also do finance videos.
@@perotal Would have to be in a low cost area. These days, it's taking some people in big cities 10 years+ just to save a deposit for their first house
Took my 401k that got destroyed in 2009 a little bit that was left put it into gold and silver still as of today silver has doubled and so has gold double d since I purchased it
@@ashleem1387 He is actually right. The rookie mistake is letting your emotions drive your retirement future. You only get a loss if you sell. If you just had held on to your 401K you would have recovered and some. Never sell in a down market. You will only let people with money buy your assets for cheap and Rideout the downturn.
@@henri6595 no he's not 200, 000 went down to 16,000 companies that I was invested in went bankrupt a would never recoup now the gold and silver is worth more than what I initially lost I believe there's going to be a reset
Do it with cash, thats the best way to do it. Very low risk, more room for life issues to happen. no headaches when you have to evict a tenant or a random waterheater, ac goes out. Your balance sheet and net worth looks a lot better with paid for rentals on it.
I think Ken got it wrong here. Chris' question was perfectly legitimate. And the caller was a little "testy". Getting to baby step 6 does not necessarily mean you wouldn't finance another house.
@@daveicc495 They all talk about giving. You said they should donate to the needy. Which they do. How much of their money would make you happy? Your point of the poor giving a larger percentage is irrelevant. It's not your money.
![Twenty One Pilots - “The Line” (from Arcane Season 2) [Official Music Video]](http://i.ytimg.com/vi/E2Rj2gQAyPA/mqdefault.jpg)
In Hogan's defense, most people that call up interested in real estate investing have no intention or ability to pay cash. He was vetting the guy.
Do you like polish hotdogs because I’m having some tomorrow and I’m really hungry how about you?
@@mathnasiumalumni7608 are.... are you.... coming on to me?
@@TheSmoothGrind
No, he's just being weird. He said the same thing in a comment down below.
Paying cash is for suckers.
Glad education like this is made public and free for everyone. What a time we live in where everyone has access to financial information!
Do you like polish hotdogs because I’m having some tomorrow and I’m really hungry how about you?
Everyone has equal access to this kind of information but very few take advantage of it.
Being a small time landlord is a con for certain personality types. The numbers only make sense if you’re able to do a good amount of the repair and maintenance yourself.
You are right, been there, and now the only real estate I own is my house and cottage, and if I want a bit more real estate in my stock portfolio I will own refits, and I never worry about tenants
Or if your tenet is awesome. Easiest money ever
@@Jelly._.cat._.1 that's a big IF though... lots of crazy ppl out there...
perotal true. Lots of good people too (believe it or not). I had the the best tenet for 2 years. I never had to do anything other than text them a merry Christmas and thanks for being the best tenets.
Seems like it is a lot easier to buy an REIT instead of doing all that hands on work.
Hogan is so awesome, he’s right up there with Dave for best host
Neonwhite A. Would like it if he were willing to disagree with Dave occasionally & offer his own spin on things. Literally can’t recall a single time I’ve ever heard Chris say anything Dave wouldn’t also say, and some of Dave’s advice is perfectly fine to disagree on.
Jack well he is kind of getting paid to teach Dave’s stuff
Neonwhite A. He’s getting paid to offer sound financial advice & teach based on facts & what will work best for who he’s offering advice to. Each situation is different. Dave has very outdated strategies in some areas (especially investment advice), and it’d be refreshing to hear just one person on his team update advice for 2020 & not 1995. Yet to hear anyone be willing to diverge from him. Dave wants “yes” people on his team.
@@DrJack144 The only person who will disagree with dave is his daughter. I love it when she's on because she knows she can get away with it.
patty109109 true, I have seen her do it a few times. I’d invite anyone here to ask any really sharp financial friends of theirs if they agree with 100% of what Dave says. Would bet virtually none do even if they agree with 90% like myself & many others do. Yet, Dave seems to find the people who agree 100% about 100% of the time when he hires people. Interesting 🤔
Miss Chris and his grace. Hope others are showing him the grace he expressed to listeners and their financial walk. Hope he and his family are doing well.
Mutual funds are totally passive. Real estate is more active. Biggest nightmare is dealing with all the deadbeats out there.
That's why you have a property management company. Worth every penny if you ask me.
@@LG123ABC Doesn't matter if your tenant doesn't pay. Imagine trying to evict someone.
lol, I hear people criticising mutual funds for being too active relative to index funds
Caller: "should I invest in growth stock mutual funds or real estate?"
Dave Ramsey show: "Yes"
Do you like polish hotdogs because I’m having some tomorrow and I’m really hungry how about you?
Exactly lol
Anyone that thinks to invest in real estate you should save up all cash to buy it is ignorant on real estate and it's true benifits.
Mutual funds will be the more hands off approach to growing your money while real estate tends to be quite a bit more involved, relatively speaking. Really depends on personal preference and real estate market.
I agree that’s why I’m just sticking to Mutual funds
Stocks have more liquidity and you don't have to put your money into one basket. And they are hands off. They are excellent!
I would go with Individual Brokerage Account before a rental property or mutual funds. Rental properties take forever to make your money back and mutual funds are not tactical enough but do provide decent returns
Unless you are a slum Lord, then it's really hands off!
having done some real estate its definitely a headache. It's also a peoples business so if you dont like people dont even bother.
Real Estate changed my life for sure and Austin is a great market to hold the appreciation is crazy
Did you buy your properties full in cash or take out loans?
Do you like polish hotdogs because I’m having some tomorrow and I’m really hungry how about you?
@@joemilleriv investors never pay cash .. loans are the only way to wealth
1/3 VTSAX
1/3 VSIAX
1/3 VTIAX
Low cost index funds.. way too much fees with mutual funds. Real estate returns are usually low, but I like the idea of paying cash for something small. I don’t like debt.
This call was so innocent and hilarious 😆 Chris hogan is is amazing haha
He has a great way about him. I really enjoy this team!
Do you like polish hotdogs because I’m having some tomorrow and I’m really hungry how about you?
If its a rental property its actually preferable to get a loan. Its just simple math. Do the numbers and compare your cash on cash returns.
If the cap rate is high enough, sure you can borrow when the rate is less, BUT most people don't calculate the cap rate adequately for R&M, vacancy allowance and any number of other expenses.
It’s Dave Ramsey, dude. He made his first millions leveraging debt. Failed and went bankrupt. He remade his millions selling garbage advice to be debt free and be afraid of debt because Dave Ramsey is afraid of debt because he went bankrupt. It’s just one big circle, and it’s actually quite amusing when you think about it...
@@BadMannerKorea If that is all that you get out of this how then I am surprised that you listen and comment on the youtube page.
Chris Taylor I mean yeah, I don’t learn anything from him. I agree with the minimization of debt and living within your means, which I practice, but he takes it to the extreme and instead of telling people to take responsibility and utilize debt wisely, he tells people to be afraid of it. That it’s somehow bad. It’s not. Debt is just a tool.
BadMannerKorea I agree. Ramsey is also full of contradictions. Debt is bad.. except 15 year mortgages.. those are bad if they are rentals. Credit is bad.. except when it’s not, like when he suggested one kid in Maryland to transfer rental debt to a credit card.. which the kid had already closed because Dave preaches that. It’s a cult.. cults usually contradict themselves at some point.
Think the real question should be “real estate or index funds”. Mutual funds haves a ton of management fees that can be avoided with the simplicity of indexes .
Depends on the fund.
Don’t give your money to the people associated with mutual funds. Low cost index funds are the way to go. Higher returns and lowers costs.
Lying or wrong. There'd pros and cons to both.
Index funds are mutual fund ;)
That question was legit, Chris. People do crazy things when it comes to investing.
Chris you were right for asking and not assuming ( we all know what assuming does) but it was still funny!
Do you like polish hotdogs because I’m having some tomorrow and I’m really hungry how about you?
Agreed.
You don’t have water leaks and weekend calls with mutual funds.
Nor do you have a deadbeat renter who thanks to legislation you cannot even evict.
What I didnt like when renting out a house...dreaded text of some repair at worse times
Do you like polish hotdogs because I’m having some tomorrow and I’m really hungry how about you?
@@patty109109 currently😩
Why not both?
Why not both!!!!! Mutual funds and stock are a lot less work in my opinion!!!!
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second daughter. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks.
@@BintuDelacroix Quitting may not be the best approach if you ask me. This is where an AI comes into the picture. I barely have time to trade myself as my job swallows up most of my time. *MARGARET MOLLI ALVEY* , a licensed fiduciary whom has made me over 5 figures in profit in less than seven months, handles my investments. I could leave you a lead if you need help.
@@ThamaraSchlossarek Oh please I’d love that. Thanks!
*MARGARET MOLLI ALVEY*
Lookup with her name on the webpage
I've been toying with the idea of investing as much as possible in growth stock mutual funds until I turn 65 - 70 and then converting it all into real estate by paying cash for rental properties and just living off the rental income. I would use a property management company because I have used one before and it's great not having to deal directly with the renters.
I wouldn’t recommend that. Keeping aggressive mutual funds up to and beyond retirement age is not the best strategy due to the volatility. This is the biggest complaint I have with Ramsey.. he doesn’t consider risk tolerance or risk capacity. Retirement accounts should grow and adapt to the person who owns them.. Dave never considers this.
At 70, you don’t want the headache of venturing into the new land of rental properties for the sake of living off of it. Convert to a safer portfolio and live off of that. 70 is too old to venture into and bet on a new businesses strategy. Property management companies still deal with work and stress which could eventually fall on you as the 70yr old financier.
Don’t listen to the bs here. It’s a great idea, Lyle. Just make sure you screen the tenets and if something feels off - reject them. I had the best tenets and I feel sick that I let that properly go. Let’s say you buy a house for 300,000 outright and make 2000 a month on it. Now your marking 2000 a month all while you can sell for 300,000 or up. Or you can maybe get 400 a month on an ETF. Being a small time landlord is not hard work. Don’t let people that have never done it make you feel bad. 70 is still young
Do you like polish hotdogs because I’m having some tomorrow and I’m really hungry how about you?
These two together are quite good. Always a lot to learn. Great teachers.
$75K in one house is a lot of money. The cash on cash return on all cash is going to be low.....Unless you get a steal deal (very difficult in this market). I like the thought of leverage as long as you have great cash flow and cash on cash is at least 10%. Illinois is a great state to buy rental properties.
Heck yes! Borrow money! Get you a piece of that cash cow. When your renter skips out, the bank will understand why you can't make the payment. The broke american way!
Azzo that is why you have cash reserves and screen your tenants. Tenants with a good credit score will always pay, since they do not want to damage their credit. God bless America!!!!!
illinois has extremely high property taxes (2.31%) which makes it harder for cash flow
@@oshahid1983 yup, don't rent to non essential people, cause as you know a pandemic might happen. They will be like rats off a sinking ship.
Azzo I am fortunate that our tenants continue paying us during this pandemic. The mortgage is around $1350 and rent is at $1900. With that being said, I believe it’s possible to borrow money and rent it out. There’s risks involve of course and like any type of business, I always have cash reserve just in case they don’t pay and you have to kick them out (not counting the pandemic of course).I would say 3 months of mortgage is a good amount so you can find a new tenant in the meantime.
Both! Diversify the investments and do some of each (if you’re ok with a little extra work for the real estate).
Do you like polish hotdogs because I’m having some tomorrow and I’m really hungry how about you?
Invest in REITs and stocks. Mutual funds can be expensive due to various fees. Going with a low cost ETF is another option.
Why not REITs?
Invest in real estate and then use the cash flow to fund your stocks if you want.
Historically the Dow Jones ALWAYS beats real estate
True...But consider all the ROI components of real estate like the depreciation deduction, interest deduction, loan payoff, and appreciation..... I pay nothing in taxes for real estate income and i gain equity and have appreciation as well. Hard to beat that.
@@oshahid1983 Huh? Those deductions are not free. That sounds like someone who likes to spend a dollar just to write off 30 cents. Investing in stocks and mutual funds comes without the maintenance, damage, non paying renters, and headaches. Buying and selling also includes just a click of a button and no agents, etc.
If done right, RE vastly outperforms stocks. RE investors often average 20-40% returns. This is bc first, you can buy homes below market value (can’t do that with the efficient stock market). Second, you can increase the value of the property thereby increasing rents. Third, you can safely use debt as long as you have adequate cashflow.
I make 3 times as much from my rentals as I do stocks. But it takes lots of education and some work.
Real estate is far superior than stocks. But, you have to be educated and do it right. I made mistakes when I first started but my returns in real estate drastically out preforms the market.
The average annual return across all my rental properties is 26%. Let me know when the Dow Jones beats that.
Problem with investing in real estate with 100% cash, is that the returns are worse than the stock market. The best part of real estate, is leveraging your money to double your cash on cash return. That's where real estate works. If you don't want debt, invest in a REIT.
Nah
Ken “you weren’t listening to him, you deserved it” well said Ken
Had I have owned a home here in Colorado 10-15 years ago the value would have doubled or tripled. It's stupid how expensive housing is now with everyone leaving Cali, the east coast, and Texas.
If someone has everything else set up and has their primary residence paid off.. I don’t completely understand why you can’t finance one rental property.. especially if it’s a 15 year. That is just missed financial opportunity.
What a great topic. My split would be I hate working on homes, I dont really know how to work on homes, and its expensive to call someone to do work for you. I'll stick to growth stocks.
Correct me if I’m wrong, but isn’t a property manager (even if they are charging 7 to 10%) something you can write off on your taxes?
Most of the advantages to real estate investing is significant reduced when purchased with cash. Leverage is a wonderful tool when used properly and conservatively. I would highly suggest investing in a low cost ETF or mutual fund if you would only consider paying cash. Non leveraged real estate returns are generally not all that great, and the hassle isn't worth a mediocre cash on cash return. I've owned real estate for 12 years now and have never regretted having loans. My suggestion based on experience would be to get a rental property with 20% down, keep around 10k in a rental bank account to cover any reasonable crisis, and invest the rest in the markets. Paying cash you will be lucky to see a 8-10% ROI, and you have to deal with people and maintenance problems. With those returns, you would be better off in a more passive S&P 500 ETF.
Nah
would anyone know what the comparison in returns would be for index funds vs. rental property ?
75? Is he buying a trailer?
Do you like polish hotdogs because I’m having some tomorrow and I’m really hungry how about you?
This was one of the best episodes on the channel.
flipping or rental?
The no mortgage on rental property is so unrealistic. What are you gonna do wait a decade before you invest?
Apparently four or five years.. yeah.. complete miss of financial opportunity.
My sister sold a rental for a million or two for cash...they are out there. Guy got money from inheritance. I'd be ok with a loan as long as you have no other debt personally.
Mark G I’m talking the normal everyday investor. I would say a couple million dollar inheritance isn’t normal
Angry Arkie four or five years to raise 300k?
Not only is it unrealistic. It's dumb. Money is probably the most known thing. Yet, so little understood.
Saving money costs ~3% per year as inflation eats away at it. Whilst the asset for which that money is being saved appreciates at ~3% annually. That's ~6% annually negative real return.
Borrowing a mortgage at ~2.5% interest, but the underlying asset appreciates at 3%. That's 0.5% nominal return already.
Why not invest 100% into mutual funds and in 4-5 years when you have enough for the rental property pull it out of the funds and buy the property
I am doing this for my first property that I will probably live in. (Or rent out and keep renting something cheaper myself).
I don't think they know the difference between growth stocks and value stocks.
S&p index fund until you have enough to buy property cash.........and keep both.
I really enjoy all of your content, can’t wait till more! U inspired me to make my own channel about finance, stocks, business, real estate and more! I’m 13 with about $1700 in stocks
Great, individual stocks I recommend are ,Enron, WorldComm and Lucent. Load up!
Azzo thanks
Azzo thanks
Bs. Hope nobody believes this...
Ronnie B it’s true you can think whatever you want I know it’s true
Property has higher cost over time that eat return you want real estate just buy REITS or REIT index.
Mutual funds give me a rash, but I'd do both real estate and index/exchange-traded funds
Rash?
Buying real estate with cash is the stupidest idea ever specially if that’s for an investment property. Please don’t! That’s all the money that you saved up. The philosophy of buying everything cash is for people that don’t want the hassle of educating themselves. They don’t like to run the numbers and take control of the financial statements. Every situation is different and you might decide based on the numbers and other facts. Unfortunately, going cash it’s not the smartest way to invest unless you have self control issues
Nah, pay in cash
@@jmcm152 yea if you got 10 times that amount in your bank account
I LOVE the interaction and hilarious back and forths between Ken and Chris! Haha great combo!!
Why would you pay cash for real estate if you can use credit and have the tenants pay it down? Makes no sense.
Religious reasons to avoid usury.
K S you mean like 15 year mortgages for the primary residence?
@@angryarkie1642 Still that could be usury, just because stupid Dave says it doesn't mean our creator is okay with it.
K S that was my point.. but it also depends on which religion and century definition you are basing usury.
@@angryarkie1642 Dave and his minions seem to allow 15 year fixed and betray the teachings of religion so he can have more followers. It is much easier to convince someone to not by a house on a 30 year mortgage and instead buy one on a 15 year than buy all cash.
Why is taking out a mortgage and renting out the property problematic?
How in the world do you save up to at minimum $200,000 cash to buy a rental property???
Trust me, there are markets where you could buy five or six rental properties for 200000. Though you might get shot trying to collect your rent. The slum lords make the biggest returns, but there is a reason for that. You are talking about perfect posh houses to rent out to perfect posh renters. That's the rich folks market. I hang out in between. But my cheapest houses get the best returns, and have much lower taxes.
Diogenes Ataraxia yeah sadly where I’m at the slum areas are those $200k houses the market is way too hot right now. Basically gotta wait till the next recession to buy property
I was so hopping Dave Ramsey
Tell your financial adviser that you want a mutual fund that will go up in value almost every year, pay you a dividend every month, have the option of paying no capital gains when you sell it, use a non-cash expense to reduce the taxable income, and benefit from the higher inflation rates that the Fed just promised us. That's what renal real estate is.
Dave also says you need to love estate. If you don't love real estate and you're only chasing returns, you might hate it.
y not both?
Don't forget the government can simply declare you not owed rent and that you cant evict.
I still don’t understand why more people are not talking about this as far as I’m concerned it makes real estate an absolute non-investable entity
@@patty109109 Government seizure of assets with out compensation is a violation of our Constitution. How is this different form the quartering of soldiers.
It’s a very small percentage of the USA that is facing evictions. This is a rare situation. Back payment is also required.
@@BadMannerKorea Until it isnt... States like Illinois are not the best at keeping their word..
@@BadMannerKorea numbers are growing...its a real issue in some parts
Saving up and going cash is not the way to go if you dont have debt
Nah
If the renter doesn t pay that s not a problem, find a proper renter and pay the morgage until then. It s your fault if you find a hpuse which it s morgage is higher than you can pay in case that things go wrong
If the question was to choose between real estate and mutual fund, I would always choose real estate. who else has been able to create passive income investing in crypto currency.🙋.
that's really nice, I would really want that for myself. I have tried trading in the past but I lost a lot
what you need is proper guidance and better research
I know that's hard to find
the crypto world is really tricky when you have no idea what you are doing, I predict BTC his 20k before the year runs our.
@@jerrywalker2183 I would recommend you contact T T S, it's a crypto investment company that has handled my trades for about a year now and it has been an amazing experience.
With the evection moratoriums now that the government is going to be using increasingly I think you’d have to be crazy to invest in real estate. go with Stocks
Is real estate a good investment right now? Even if u have the money?
Bought gold at 1258 which was high at the time, now it's at 1950 now, seems good
Cool content! Thank you for sharing 🙌
My wife and I move alot so we have most our money in mutual funds (except years expenses cash in the bank). Id like to buy a rental property but don't want to end up moving and rely on a property management company.
It’s definitely not for everyone.. and it shouldn’t be a defining factor for overall financial success.
Do you like polish hotdogs because I’m having some tomorrow and I’m really hungry how about you?
Great, I really like this channel! This is perfect for my next VIDS👍
Mutual funds take no matenaice and you won’t have to deal with tenants 😂😂
Oh my gosh! That’s where I live but moving in the near future back to Missouri.
Buying real estate with cash. So wait 15 years. So both it is.
Try buying cash on the west Coast. Good luck y’all!
Never stop saving
By the time he saves $75K to buy a Property. It went up $25-50K.
Real estate has appreciated a lot in certain "desirable" parts of the US (although many of these so-called "desirable" areas, like NYC, San Francisco, and Los Angeles, can't seem to find any buyers for all the people who want to get out of dodge). I think in most parts of the US, stocks definitely beat real estate. By a huge margin. I also do finance videos.
Imagine investing in mutual funds
REITs
Quick question, when they talk about paying for real estate in cash do they mean paying the down payment in cash or the WHOLE property in cash.
The whole property. I know, it's hilarious 🤣
@@perotal Would have to be in a low cost area. These days, it's taking some people in big cities 10 years+ just to save a deposit for their first house
People can very quickly destroy a property and 100 things can break every month no thanks
if people destroy ur property u can also sue
@@9770G and you make lawyers rich
@@9770G Good luck collecting from the sort of person who runs amok in a rental. THey have no assets to get.
@@perotal also true haha
And evictions arent cheap either...why you really gotta make sure you get good tenants and not scumbags.
What the heck kinda property you gonna buy for 75k?
You don t find 75k properties in europe, you have to do morgage if you dont have 300k
You don't know what you're talking about
@@hughmongous663 yes i do because i live in europe are you dumb?
Neither. Intex funds ftw.
Why not invest in REITs? Gets your hand in property without all the hassle of having to worry about tenants or fixing stuff
I have both. REITS are way smaller returns though
Why do go with REITS
Why Dave so against indexes and ETFs? I got blocked for a couple days on Chris Hogan's fcbk page for even mentioning it!
They get referral money when they send people to their affiliated mutual fund managers.
GET WOKE, GO BROKE!
Took my 401k that got destroyed in 2009 a little bit that was left put it into gold and silver still as of today silver has doubled and so has gold double d since I purchased it
It only got destroyed because you sold
@@perotal you are totally wrong
@@ashleem1387 how so?
@@ashleem1387 He is actually right. The rookie mistake is letting your emotions drive your retirement future. You only get a loss if you sell. If you just had held on to your 401K you would have recovered and some. Never sell in a down market. You will only let people with money buy your assets for cheap and Rideout the downturn.
@@henri6595 no he's not 200, 000 went down to 16,000 companies that I was invested in went bankrupt a would never recoup now the gold and silver is worth more than what I initially lost I believe there's going to be a reset
Dont pay cash. Dont care OPM is cheaper. You'll never get the time back(4-5 years)
Hogan question was legit
99.9% of the callers are dumb money.
I stand by his question 🤭
Diversify that simple
😀👍 love it
Мне нравиться финансовое образования от этого чувака !
What the hell is baby step 6? They mention it like 40 times. LOL
Check out Hyliion (SHLL)
It not money it time an hassle is he a 80 hour a week professional
nice
Short the entire stock market.
Nov 3 baby
Do you like polish hotdogs because I’m having some tomorrow and I’m really hungry how about you?
He's my friend 😏👍🏻
Do you like polish hotdogs because I’m having some tomorrow and I’m really hungry how about you?
Do it with cash, thats the best way to do it. Very low risk, more room for life issues to happen. no headaches when you have to evict a tenant or a random waterheater, ac goes out. Your balance sheet and net worth looks a lot better with paid for rentals on it.
Invest all your money in Tesla and strap in for the ride
I think Ken got it wrong here. Chris' question was perfectly legitimate. And the caller was a little "testy". Getting to baby step 6 does not necessarily mean you wouldn't finance another house.
Hogan did deserve that. Listening is key 🔑🔑🔑
How about donating some of your money to the needy
I'm pretty sure all of them do.
Greedy people usually don’t
The poor usually donate a larger percentage of their money than the rich if they poor people are just as faithful
Look it up
@@daveicc495 They all talk about giving. You said they should donate to the needy. Which they do. How much of their money would make you happy? Your point of the poor giving a larger percentage is irrelevant. It's not your money.
Don’t be greedy
Help others before yourself