This Is the WORST Real Estate to Invest In!
HTML-код
- Опубликовано: 11 сен 2024
- This Is the WORST Real Estate to Invest In!
Start growing in business and leadership with the EntreLeadership Newsletter. Sign up to receive tactical tools, advice and resources in your inbox every week: bit.ly/3ktHxiM
Support our sponsors:
• NetSuite: bit.ly/NetSuit...
• BELAY: bit.ly/351P9AE
• Payority: bit.ly/3IaA5SK
• Trainual: bit.ly/3EbBEgc
Learn more about EntreLeadership Events:
• EntreLeadership Summit: bit.ly/EntreLe...
• EntreLeadership Master Series: bit.ly/EntreLe...
Learn more about EntreLeadership Coaching:
• Elite: bit.ly/3tI2fN8
• Advisory Groups bit.ly/EntreLe...
• Executive Coaching: bit.ly/EntreLe...
• Workshops: bit.ly/EntreLe...
Find out what stage of business you’re in and what you can do to level up with our Stages of Business Assessment: bit.ly/45RXQaZ
Learn more about your ad choices: www.megaphone....
Ramsey Solutions Privacy Policy: www.ramseysolu...
![Chlöe - Shake (Feat. Jeremih) [Official Visualizer]](http://i.ytimg.com/vi/aDs_1ufpfv8/mqdefault.jpg)
Been on this earth for 28 years. In that short time, strip malls, warehouses, office buildings have all foreclosed and filled chapter 11 and 12 more than once. Invest in land, invest in solid assets. Trends such as strips malls and such are trendy. They don’t last. I’ve gotten this advice from numerous wealthy, healthy people who don’t need to sell a book on their opinion of wealth and finances and call that “success”.
Your advisors are correct.
Apartment buildings and storage units. Returns on land for long-term, but your kids are more likely to reap the benefits of your land investment, although you’re still young so it could become your retirement nest egg.
Yea but you are just some loser on the internet.
Land is great but there’s no income from it.
Yeah Dave definitely missed the mark on this one
Lost me at office building and Strip malls.
He mentioned those last 😂 you’re fishing
Correct they are toast!
He’s still right that they’re on the lower side of commercial risk, the bar is just the floor after COVID. If businesses don’t need offices, most other commercial real estate around it dies too.
Yeah the strip malls really threw me off. Maybe he knows something I don’t know. Residential development is still killing it here in the DFW area.
@@tomcat8662it’s regional. I guarantee you there is zero problem with the cash flow of strip malls and office buildings in a city like Nashville as well as many other places. Might be different depending on where you live but for him it’s still strong.
I’ve been working for a commercial landlord in NYC and Long Island for 18 years. Even before the pandemic commercial real estate was never considered low risk. What saved us was most of our tenants who occupy our office buildings are medical. What’s helped our retail strip centers was the rezoning where retail can now have medical tenants.
Oh, so that’s why medical tenants are generally located in medical centers and office complexes. I never realized it was a zoning issue, I thought it was for professional appearances.
He must mean "timeshare resorts" not beach houses.
Beachfront homes are basically gold. When times are good, middle class families treat themselves to a nice beach vacation. When times are bad, wealthy families swap out their extravagant international trips for a more modest beach vacation. The demand is non-stop.
Except climate change makes it a dumb investment medium to long time
I think he means line Sandals resort type places. As yes beach front homes are worth their weight in gold.
Beachfront multi unit condos like he’s mentioning are 3B2B beach houses, huge difference. You can get your mortgage paid in a week of renting a beach house, condos you need people to live there or several coming and going at all times
Strip malls for income died in the 80s. Commercial real estate in city centers is in a world of hurt. Apartments for Caly whoa, very risky. Deadbeats can live for free for 6 months before you can get rid of them.
The laws are a problem. It's ridiculous!😡
@@JesseS-ns2vy The laws are not a problem, they are designed that way for reparations to minority groups with the cost dumped on property owners instead of the state. This is why the laws are never changed.
@@donaldkasper8346you just said the laws not the problem while explaining why the laws is the problem
@@crowjones78 Cynicism processor for this one is in low gear.
@@donaldkasper8346life processor for you is in low gear.
I live near Calgary Alberta, the oil & gas capitol of Canada. Commercial real estate and office space has a 25% vacancy rate there. This idea that any commercial real estate is safe is ridiculous
What year is this video? Commercial real estate, office buildings, malls? No.
I dont get what youre trying to say. Is commercial real estate safe or risky?
@@JM-kn9dh Office buildings are definitely risky given the rise in hybrid/remote working
He's 63 now so likely recent
I don't understand how residential lots are bad
@@rossfriedman6570 Getting the land is one thing. You'll pay taxes on that until you sell the houses. Imagine buying several acres of land for a huge amount of money, probably a few million, because you see that area growing, you might buy the first acre or so cheap, but the surrounding neighbors will require more money as they figure out what's going on.
Then you have to get building permits from both state and county to construct the neighborhood and approve the overall plan along with how the local cul-de-sacs will connect with existing roads. That can take years. Then you have to make building agreements with a contracting company to build the houses, probably another year or two, then you have to secure the materials to build with. Then you have to finalize a bunch of stuff once your ready to start because osha and other regulatory agencies. All the while you're bleeding cash you don't have.
Since the evolution of COVID-19, I’m not sure the office complexes are a great investment because business and industry figured out they didn’t need all this office space if they let their people work from home.
Yeah but then there’s companies that have to be hands on still so it’s still worth it. Only massive corporations can afford to have people work from home
If you work from home…. Is the company paying you for use of your space..? Are they helping make sure the mortgage is paid(aside from your normal pay lol)
These are serious questions to be asked
Nice product placement for Yeti.
this video was POSTED Jan of 2024
idk when it was recorded.
idk if office buildings will make a full come back but they have a niche.
doctors office parks is a niche that comes to mind. since some doctors need their own offices.
Dr Schmidt family denistry
Dr Smith optometry
Dr Smythe Family Medicine
Dr Otto bioengineering platic surgery
then the orthodontist
podiatrist
pediatrician
and the host of other specialized medical professionals. (until a mal practice law suit makes them have to jump state lines 😂😅)
Defund the police created urban tribal zones of murders, robberies, looting. All those businesses are closing.
True, 08 was rough, most of my friends went under, i barely made it. Cash flow is king.
I was a child, around 6 at the time, my father had a business totally crash because of whatever happened in 08, my mother divorced him and I've been raised by a single mother. Not fun lol
@@warlord-lu2eu Sorry to hear that. When money becomes a problem, in our society there is still a 'breadwinner' tag on Dads. 2008 did a number on breadwinners. A spouse seeing a failing economy and the 'breadwinner' unable to (singlehandedly ?!) turn things around, some of them have a knee-jerk reaction. That time in the U.S. was dangerously close to what happened in 1929/the 1930s. Huge stress on families.
Our business tanked to only 75% of normal business. I prepared to become a deputy Sheriff to keep things going. Economic 'daylight' didn't really appear until after the Obama years. In the Great Depression, it took WW2 for 'economic daylight' to appear - 16 years instead of 8 years we suffered in 2008-2016. Our business recovered, we dumped everything in 2017, never looked back, felt lucky to have survived it.
Neighbor is in copier repair. He said a while back profit is not relevant. What keeps you alive is cash flow.
@@donaldkasper8346 mmmm. I slightly agree. Cash, and cash flow is paramount, short and long term. Profit is pretty important, but you can float as long as the bills get paid. Cash flow keeps you in business. Profit lets you retire. Ha, as long as you don't blow it all on wine and women.
true but i hate that kind of business. i see places selling competing products (to my biz) at a loss just for the cash flow, not worth it and wont end well imo, go do a
something that makes money if what you do doesn't @@donaldkasper8346
I started with a car park , 2 single spaces in the business district of a major city I bought for $1000 each . I'm not rich rich or have a port folio , I have a house & a unit that are rentals & the house I live in . It was hard work for 15 - 18 years but in my 40s I'm comfortable & should be as long I live
Your car park consisted of just two spaces?
@@skyhappyhomie, have you ever paid for parking in a major city? I live in Minneapolis……. I’ve paid $200 for 3 nights parked in a spot😂😂😂 this guy only paid $1,000 a lot. So he could have absolutely made his money back in a month - 2 tops
@@thecoolguy3498 damn, I don't live in the city so I had no idea. What year did you pay $200 for 3 nights? And why not park at a train station and take public transport?
@@skyhappy it’s a sticky situation where I lived with my girl part time in downtown Minneapolis. There isn’t free parking anywhere near her so I had to bite the bullet and just pay. I’ve paid thousands in parking to be honest. Very lucrative business. This was just last year.
@@thecoolguy3498 doesn't downtown have good public transit?
Hahaha! Dave just said office buildings are super safe. Tell that to all the poor owners of commercial property sitting empty all across the US now for 4 years and counting.
Sounds like a great time to buy then
@@garbageparade5144 if you can afford to buy commercial real estate that will sit unoccupied for the foreseeable future, it might be a good investment. Trouble is, just like with residential, prices haven't seemed to correct yet, so maybe not.
@@garbageparade5144 But, of course, the real point is, Dave's claiming buying office space is pretty much a no-risk endeavor. And the past 4 years has shown that he is very, very wrong on that point.
I guarantee he’d never say it was zero risk. Low(er) relative risk, yes.
@@gsquared2394 and again, commercial real estate has a 4 year and counting record of being very much more risky than pretty much any other type of real estate
I'm lost bc my beach rental is still bringing in 14%. Use to be 20 but settled at that and I feel ok with it
Is that after maintenance
Also, not to scare you but another 2008 is coming. I hope you have a low interest rate or own it outright
The Midwest is having nothing but a housing boom, hundreds of acres becoming neighborhoods in less than a year, with fleets of land movers and construction equipment. I see the slow infrastructure of the pipes and lines being layer but once they get the land leveled the foundations are in there really fast
Why’s it happening in the midwest
@@peterpiper3790
Cheap land, no state income taxes, better local politics until the newcomers ruin it by getting into office.
@@LuckyCharms777 I mean that’s only like South Dakota and Wyoming for the no tax thing
@@peterpiper3790
Nope, just verified that there are actually nine states that don’t charge income tax. Granted they’re not all midwest.
According to CNBC:
Alaska
Florida
Nevada
New Hampshire (doesn’t tax earned wages, but does tax investment earnings)
South Dakota
Tennessee (as of this year, will no longer tax investment earnings)
Texas
Washington
Wyoming
@@LuckyCharms777 yes I know that. We’re talking Midwest only though
"Strip Centers ", Eh, Dave? I'm in 😂
"I've been doing real estate since I was... since 1978"
Bro didn't want to do the math 😂
They post highlight clips from years ago so I’m going to guess that this would make sense in 2020 since he would’ve been 19 from that timeline. Now he could also be full of it but his plan is still pretty solid advice for the average Joe.
@@Hhhhh12864 Nah that’s around when he started. He lost everything at 21 I believe. $4 million real estate portfolio but only $1 million in equity on those properties. His bank got bought out and the new bank owner said “give us the $3 million now”. He went bankrupt. That’s why he doesn’t borrow ever haha.
He must have been 17 years old in 1978. Yet in another video he says that he experienced hitting rock bottom. Was that when he was living with Mom at 16?
Due to remote work, beachfront condos are always gonna have their value unless you have a hurricane.
Nope, those remote workers don’t have the work and won’t be wasting money during an economic downturn.
You have no idea how much of our workforce is either fully remote, or partially. Here's the part you're missing- California/NY companies can't afford to pay wages that actually pay the bills in those areas, so they hire southerners and midwesterners who work remotely. You silly-billy@@esquire9445
Wrong
Remote workers can be fired en masse via a Zoom call, we've seen it happen several times on the nightly news. They will be the first to go in a serious downturn.
@@RoastBeefSandwich
Unlike thousands of service workers that can be axed, when a big corporation is cutting costs.
Oh wait.
Yes, those reload bonuses can be a lifesaver, especially when you hit a rough patch. Helps to keep playing without breaking the bank
Ramsey is correct. Ramsey is speaking of long-term and historical data in which he is referring to. The office class a plus markets will return at some point you notice offices are being filled more than they were the last 36 months. Employers are having people return to the office. apartments and warehouses 100% correct on that.
Office buildings are in a massive downturn globally due to pandemic and the working-from-home arrangements.
Very few people are working from home. All the employer has to do is order anyone back to the office and that's final. They can quit but in a world of 7 billion people, you're replaceable.
@@TheMagnificentPuertoRican
Exactly. Layoffs will wipe out lots of jobs and remote work is easiest to cut.
For Caly the crime makes going into downtown dangerous.
@TheMagnificentPuertoRican Thank goodness there's more than 1 company out there then
@@rokyericksonroks - if you can do your work from home then you can be replaced by a cheaper overseas worker. Think about it - management certainly is.....
Mini storages.
I'm down 85% in OPI the last year and a half...
When he says don't do something, probably something I need to look into investing.
We're sure there's some oceanfront property in Kansas that's got your name all over it.
Office buildings 😂😅😂😅.
Yeah not a great position to be in high rise office buildings, just ask the Californian teachers pension fund hahahahahhaa they are screwed
Yeah not a great position to be in high rise office buildings, just ask the Californian teachers pension fund hahahahahhaa they are screwed
I don't understand how residential lots are bad
I thought we've had unprecedented issues with office space commercial real estate due to work from home policies that came about during covid. And with the residential shortages, some office spaces are being turned into condos, apartment buildings, and the like. So is office space a really safe investment anymore?
Yep, just look at the amount of strip malls where owners simply hand the keys back to the bank and default on the loan. Office building is probably not much better.
If you can't lease your office center, sell it to a developer to turn it into a condo. What's the problem?
@RoastBeefSandwich that's true but then it may be a distressed sale
@@arfo8353 Not if you follow Dave's advice and paid cash for the investment property.
No. But Long term yes.
Office buildings, strip malls......not so great since COVID.
Strip centers? Really? I would never consider that in todays, post Covid market.
I guess it really depends on where your investments are. The country is riddled with vacant strip centers.
Literally happening in real time in Australia right now. Builders imploding left and right.
Except for I would disagree with the office space that's pretty much died. We're trying to unload all of our office space and not getting a premium these days. People don't work in the same way that they used to.
Absolutely, the cashback saved me last week. It’s a good feeling to get something back after a loss
Office spaces. Have you seen the metrics? Societies changed.
The richest person I know. Net worth 100M. Made most of his money on hotel real estate. When you own the property, doesn’t matter what the business is like. They still pay rent.
The richest people I personally know are attorneys, surgeons, business owners, and retired government employees.
Covid killed the office bldgs and small stores. My friend got in trouble with those investments.
The "asking to die" part is so personal 😂
Apartments are the only of these that I would be interested in... Even being able to invest into a 4-8 unit place
The highest risk property to own right now is any investment in the state of New York...... Hands down the worst!
Really? Bought a house in New York eight years ago. It's worth six times what I paid for it, and that's a conservative estimate.
@@curtisthomas-eg4th good luck
Wow, what he just say is Half Wrong , ResidentialLots are the EZ to fill in ANY state , the US is short 5M homes
No we aren't
@@andrewropp2525 just google it
Ive never done resort property, but it seems like it would be risky.
I live in Nj n the shore line have been a lot of ppls bread & butter since the 50’s. Idk if he would consider that resort real estate or if he’s talking bid resort hotels which Atlantic City definitely isn’t a shore shot as the shore homes
Real estate is one of the only investments guaranteed to appreciate in value every time
nah....materials are shit nowadays 😅 3D printed structures will replace residential builds in the next 15yrs or less
labor is too high, quality is nonexistant and warranties will ruin a builder in 2024.....having done home building since I was 16 😅
Not in Denver… you can’t build them fast enough. They are all sold before they have a roof on them
@jamesechols2859 Beach houses in Denver? How high are you folks out there?
warehouses and office buildings arent low risk. you can go from good to not paying your payments the second one tenant leaves. office buildings just got hammered by the way
I guess Davis never seen all of those abandoned malls and strips centers😂
500 lots in a major market is nothing. Residential lots are way less risky than “strip malls”.
I wouldn't bet on office buildings. Or at least make it work for more than just offices just in case.
Office buildings belong in high risk category today
Office buildings for the win! 🙄
There are at least 100 condo resorts being built right now in Orlando alone.
Orlando is a unique situation when it comes to resort towns for sure. Even it has had it's downturns though. Look at post-9/11, 2008...
Good?
Why do you think people were opposed to working from home it's because those in power own alot of office buildings.
It's in their best interest not to support work from home.
A.J.’s point is well taken. It’s the MLB players assn. And indeed, minor league players need better conditions.
Beach ⛱️ front property at list i can use it for myself and be happy camper, but office building?
Is it worth investing in property in lake havasu city Arizona?
I've been there twice. It's pretty dead there except when the spring breaks con bc edge in the area & then it's like Fort Lauderdale with a million kids & part boats. Who needs that?
@@RG-hf4et I grew up there but haven’t lived there since 2002. I love it there but prices used to be like 50k for a home and now 500k lol. I just didn’t know if they’d drop anytime soon or if I should buy now
@@as2223 that’s what I am asking I guess. Is do you think prices will fall in havasu. I want to buy property there but am hoping it falls back down cus they want like 400 a sq ft right now in havasu 😂
If it falls I will def buy but not with current pricing it’s stupid insane
Anything in New York!!!
Ok 😢
How about casino's?
Meanwhile we are 1 million homes short of our need here the US.
Thats true!
Don’t invest in beachfront condos?
Tell that to Florida.
❤😂 the insurance laundering of hurricane rentals is past me 🫡🏛🫠🌍🌏🌎 first to go and pay out 😁
developers build on shit plots and foundation is the first to go; lucky if you can pawn 500 lots 😅 thats a goober 😂 prove a 35 day unit build and any bank will jump in with water wings and 0 knowledge of how to swim 😂
Who wants a beachfront condo with the new insane insurance rates & excessive hoa fees, never mind if your building is old & can collapse?!!!!
What is real estate
Buying and selling houses/appartments or buying them to put them for rent
There is residential, commercial, and land (those are the main once)
The idea is to rent it out. So I invest $500,000 into a property but it pays me back though people renting it from me till the day I die. Most people can't afford that much money so they barrow the money and that action of borrowing is called a loan. You pay back the loan back every month plus a little intest. Meaning I might give the person I borrowed the money from 8% so they actually have a reason to lend me the money through a loan. Then the rent people pay me hopefully pays off what I owe to the person who lent me to money. You can normally get a loan from a hard money lender or a bank.
Residential is where you own a home but you don't live in it. A diffrent family lives in it and pays you rent to live in it. When that family least another moves in. When things brake in the home you fix it.
Commercial relestate, think of business offices, car mechanic shops, McDonald's, these houses grocerie stores etc. So most stores don't actually own the building they do business in. A hair stylist runs a business (an LLC) inside a building, but pays rent to the person who actually owns the property (the person who owns the property is called a land lord). This helps everyone. The bank gets intrest money from the owner. The owner gets rent money from the person or business inside the property (these people are called tenants btw). The tenant has the ability to live their dream of being a hair stylist even though she can't afford to buy a property to do business in. The customer that comes to get their hair done gets an affordable and fair price hair cut because there are 20 more hair stylists in the area doing the same thing and they all have to stay around the same price to stay in business. If one charges too much, they won't have any customers and the business will go out of business.
Land, lost of things to do with land. One thing is to let people park their mobile homes on the property and live there and pay you rent for the land underneath the mobile home. So the person that lives in the mobile home may own the home, but still has to pay you rent.
The worst financial mistake I have ever made was not being old enough to buy real estate in 1978.. not to mention I was not even born yet….
Dave said there is no slowdown before 😅
Office buildings and strip malls….the most Dave Ramsey shit ever… hey don’t get me wrong this guy has made his millions, but come on… strip malls?..
He made his millions with a monopoly on doing finances like a Lemonade stand. No loans, bare minimum, people kida like but if they know there is better they just do that.
Bravo!
Bhai 4ra ka reload bonus bhi zabardast hai, har baar deposit karo aur bonus pao
Strip mall investment also comes with greater risk. I'd never!
lol my man hasn’t been paying attention lately, office buildings and strip centers are high risk for sure since Covid. Additionally the only reason residential lots for developers are high risk is greed. They all wanna build “luxury apartments” and charge impossible rents that the locals cannot afford, then don’t understand why they fail. They luxury apartments aren’t even nice they’re built with the cheapest possible shit with every corner cut
Yet developers keep building those tract homes....
Yaar 4RA ka birthday bonus bhi super cool hai, apna birthday aur bonus dono celebrate karo
Did he say Strip Clubs?
Location, Location, Location!
He so right
I saw the thumbnail and thought that Peter Gabriel had started selling real estate.
Says someone that doesn’t live in south florida there’s building going up on every corner.
My money's tied up in the the god-damn esplanade!
Storage units.
He was 18 years old in 1978.
Any time i hear a boomer "expert" talk about how they invested in real estate and dont discuss the 40 year debt bull market they lived through I immediately assume they've lost touch and move on. Its not 2019 anymore...
Over leveraged. My boss dumped both of us in 2007. 😊
wtf? Waterfront property is literally prime real estate
…until you have to insure it for full value.
2019 called and wants its advice back
Office buildings did not age well.
Grant Cardone needs to see this!! Vacancy rates for multi-family investments is on the rise!!
The most surprising thing in this clip is that he is 63. Dang my man. I was thinking 68-70.
He looks like you're average zoomer.
Housing prices need to come down and I don’t feel sorry for anyone who was hoping to get rich off housing.
You're right. Exept I do feel bad about the folks who were swindled. Like when a lot of people lost their jobs for not being essential workers and so they became releters. A lot of the general public was just pushed in certain ways
63!!!
“Strip…” clubs!? Got it! Say no more!
Strip malls dude
Wait, Dave has been doing real estate for decades? I had no idea! Next thing you'll tell me is Phil did 20 years in the can.
That’s right it if it wiz god you wouldn’t be in pain or d struggling
LOL NO the 80s are over bud.
20% of office buildings in the US are not having rent paid on them. Sounds like a great cash cow 😂
Remember he is in Tennessee not California. Maybe he is in a better market.
Remember, Tennessee is getting hammered with residential foreclosures... so maybe not too.
Are you F*cking kidding me Dave? I own beach houses for 50 years. It is a cash cow.. The best investments I ever done in my life. Now, I own big hotels and office buildings. Are you really f*cking kidding me!
Tell that to all the millionaires in my area.
Uncle Chuck’s Cabin Rental
Dave you bought real estate at 18?
Y tho?
Commercial real estate is in really bad shape. Another example of Dave talking out his ass.
Office buildings... this didn’t age well Dave lol
Do not go passed Go. Do not collect $200.
And with this short, he's proven why he failed a real estate.
Wow… Dave says office space is safe. Guess he means the yet to be built stuff on mars!
😂😂😂
😂😂😂
Whole conversation was based off of Borrowed money