F9 IPOs at $6.3B EV, same as NK?
04-10-2021, 06:33 PM
#31
Gets Weekends Off
Joined APC: Sep 2014
Position: Da Bus, Left
Posts: 1,565
You left a big part out, which is tax on capital gains. It's easier to avoid capital gains tax on real estate than investing in Index on Mutual funds on the side. My wife is driving around in our "company" car that we are deducting the depreciation of the car and real estate investment, which offset part of my W2. There's more to real estate investing, than owning a rental property. I sold a commercial property a few years back and provided seller financing to the buyer, while collecting the loan payment and 5% interest rate. That's just a fix rate of return on interest, and doesn't even factor in the valve that it went up before I sold it.
04-10-2021, 06:52 PM
#32
Gets Weekends Off
Joined APC: Sep 2005
Posts: 1,735
Why can't you? my last sale, is a 10 year loan on a 15 year amortization schedule. Most commercial loans are 5-20 years term. The down payment from the buyer paid off my loan (at the time), which means I own it out right. This is where these kinds of deals is different from a traditional rental property. If the buyer default, I'll eventually foreclose, and put it back up for sale. It actually works in my advantage. Don't get me wrong, I do have investment in Index / Mutual funds, along with my kid's 529, but I get the best ROR in real estate once factor in the tax advantage.
Last edited by Silver02ex; 04-10-2021 at 07:05 PM.
04-10-2021, 07:05 PM
#33
Gets Weekends Off
Joined APC: Sep 2014
Position: Da Bus, Left
Posts: 1,565
Why can't you? my last sale, is a 10 year loan on a 15 year amortization schedule. Most commercial loans are 5-20 years term. The down payment from the buyer paid off my loan (at the time), which means I own it out right. This is where these kinds of deals is different from a traditional rental property. If the buyer default, I'll eventually foreclose, and put it back up for sale. It actually works in my advantage.
04-10-2021, 07:11 PM
#34
Gets Weekends Off
Joined APC: Sep 2005
Posts: 1,735
My post wasn't just about rate of return. Once you factor in the tax advantage, my investment in real estate has a bigger advantage. Investing in Index / Mutual fund doesn't help reduce my personal taxable income. By having my wife qualify as a real estate professional, and carrying over the those deduction from the LLC to offset the W2 makes a big difference.
04-11-2021, 07:33 AM
#35
Gets Weekends Off
Joined APC: Nov 2012
Position: 1900D CA
Posts: 3,487
Real estate is undoubtedly one of the greatest investments in history.
But I don't have to hassle tenants about late rent. I don't have to worry about them ****ing off the neighbors. I don't have to worry about a 2am call about a water leak.
My stocks don't cause me any of those headaches. And I don't like headaches. You just have to pay attention. And when you pay attention you can buy a stock like Spirit at $8.
But I don't have to hassle tenants about late rent. I don't have to worry about them ****ing off the neighbors. I don't have to worry about a 2am call about a water leak.
My stocks don't cause me any of those headaches. And I don't like headaches. You just have to pay attention. And when you pay attention you can buy a stock like Spirit at $8.
04-11-2021, 10:27 AM
#36
Gets Everyday Off
Joined APC: Aug 2016
Position: Fully Retired
Posts: 7,000
Real estate is undoubtedly one of the greatest investments in history.
But I don't have to hassle tenants about late rent. I don't have to worry about them ****ing off the neighbors. I don't have to worry about a 2am call about a water leak.
My stocks don't cause me any of those headaches. And I don't like headaches. You just have to pay attention. And when you pay attention you can buy a stock like Spirit at $8.
But I don't have to hassle tenants about late rent. I don't have to worry about them ****ing off the neighbors. I don't have to worry about a 2am call about a water leak.
My stocks don't cause me any of those headaches. And I don't like headaches. You just have to pay attention. And when you pay attention you can buy a stock like Spirit at $8.
04-11-2021, 11:29 AM
#37
Gets Weekends Off
Joined APC: Jan 2009
Posts: 1,269
Real estate is undoubtedly one of the greatest investments in history.
But I don't have to hassle tenants about late rent. I don't have to worry about them ****ing off the neighbors. I don't have to worry about a 2am call about a water leak.
My stocks don't cause me any of those headaches. And I don't like headaches. You just have to pay attention. And when you pay attention you can buy a stock like Spirit at $8.
But I don't have to hassle tenants about late rent. I don't have to worry about them ****ing off the neighbors. I don't have to worry about a 2am call about a water leak.
My stocks don't cause me any of those headaches. And I don't like headaches. You just have to pay attention. And when you pay attention you can buy a stock like Spirit at $8.
This is true. It’s not for everyone. Look into real estate investment trusts if you don’t care to deal with the actual asset and have no use for future or family use.
04-12-2021, 10:19 PM
#39
Gets Weekends Off
Joined APC: Nov 2015
Posts: 1,154
I'm an FO with 3 young kids living in an expensive SoCal area so cash flow is my problem. I'm at 0% until I can pay for my kid's swim team and hockey dues without dipping into savings. Works out to about 5th year pay in my budget. YMMV, I did the math and made my choices eyes wide open. No regrets, but company DC makes up 99% of my retirement savings for now.
