Is investing in real estate less time-consuming than stocks?

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Flippers. These are the most work intensive and hands on of the styles. They are in and out quickly. They have to be since most of them are using hard money lenders to aquire the property.

Residential landlords. Not as labor intensive as flippers but be prepared to get your hands dirty. The revenue stream is thin and you will not be able to pay contractors and vendors for anything that you can do yourself.

Flippers: Unless you get a property at a deep discount, it makes sense only if you and family member or partner do 80% of the work and quickly. Would further help having a real estate license. Otherwise, it can be very tough margins and soon the carrying costs for "not selling" property can throw you into red. There are also flippers who gut down the property and build a 100% new house. That can ask for some serious investment and expertise in building houses.

Residential Landlords: Agree with points but landlords should lobby for evicting tenants within a month. Laws are such that it can take upto 3 months to gain eviction and some places Landlord has to pay several hundreds to Sherrif to conduct the eviction. Given how busy the Sherrif is, this can take another few weeks atleast. Plus Landlord has to hold on to "loser tenant's" belongings for 30 days before selling or throwing them in the garbage if tenant does not pick them up themselves.

 

[Traderjohnsblog]

I agree. Thats one of the reasons that I moved into commercial properties. I invest in self storage and ALF s. And some high end residential. I think I will start winding down the residential properties pretty soon.

 

[jtrader33]

I agree. Thats one of the reasons that I moved into commercial properties. I invest in self storage and ALF s. And some high end residential. I think I will start winding down the residential properties pretty soon.

ALF = Assisted living facility?

 

[Traderjohnsblog]

ALF = Assisted living facility?

I am sorry. Yes, Assisted living facility. They are actually great investments. I live in Florida and there are a lot of old mom and pop apartment complexes and motels that sit on great locations. We buy them and modify them to be used as ALF s. We then rent the property to health care providers that intern sublet them to thier clients. We just maintain the property. We get a good steady income and have no need to get involved in the day to day minutiae.

Since the land is usually worth more than the building on it we will eventually tear down the existing structure and build something else.

 

[Clubber Lang]

I am sorry. Yes, Assisted living facility. They are actually great investments. I live in Florida and there are a lot of old mom and pop apartment complexes and motels that sit on great locations. We buy them and modify them to be used as ALF s. We then rent the property to health care providers that intern sublet them to thier clients. We just maintain the property. We get a good steady income and have no need to get involved in the day to day minutiae.

Since the land is usually worth more than the building on it we will eventually tear down the existing structure and build something else.

Never heard of a setup like that.
Sounds incredible.
Congratulations and thanks for sharing

 

[Traderjohnsblog]

Never heard of a setup like that.
Sounds incredible.
Congratulations and thanks for sharing

No problem.

 

[murray t turtle]

It's a 2 way street for sure - renters need to do a background check, check references, etc on their 'land lord' before signing a lease since their is no shortage of bad 'land lords' out there not to mention a lot of scandals.

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Renting is also perfect until you get to know an area+ not sure if i wanted to live in that place. i saw an old FED chart they were promoting an adjustable rate mortgage.I like paid for real estate, but like land more than most people, so overpriced houses dont do much for me. It did not really hurt the stock market, when FED raised rates from 1977 to 1980, to 14/+%. BUT 1981 did turn in to a bear market trend.LOL

 

[Arnie]

I'll bet RE has made more millionaires than daytrading has.

 

[murray t turtle]

I'll bet RE has made more millionaires than daytrading has.

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I'm sure , but not a prediction, average RE buyer/seller puts in more hours, than average trader of stocks. LOL.Average RE commission can be an advantage......; any would/should be careful, if you knew seller had to pay 7% /+. OK= owner agent has to disclose + gets around that LOL

 

[monkeyc]

You can hire a property manager but they don't always have your best interests in mind. They won't take the time to get the best bid when hiring a contractor. They just hire whoever they are familiar with.

Everyone I know who ever invested in RE, including myself, eventually encountered a deadbeat tenant. You'll lose 2-4 months rent for each deadbeat; plus they usually trash the property.

Don't invest in RE unless you have a strong personality and good interpersonal skills.