Coopduc

docmirror

<br /><br />This advice goes for not just RE but any large purchase. I don't care who's offering the item(Porsche, RE, medicine, etc). I find properties in all kinds of places. I bought a house in Katy that was having a garage sale, and we happened to drive by looking for baby clothes. I heard of a lake house in TX from a pastor friend, went out and talked to the owners, and bought it direct from them. If a 'wholesaler' is selling something, I'm interested in their property, not them personally or professionally. If they have the right deal, we're in business. But, I'm not going to go look for 'wholesalers' who think they sell low margin, high volume, because who knows? No one knows what's on the other side of the deal. Maybe they are pulling 5% broker fee. All I care about is WHAT they are selling, not WHO they are. This goes for Porsche's as well. There's a big thread about Porsche of Beverly Hills that would make you pull your hair out. Supposedly a high-end sales outfit right? From what I read, BH Porsche should be put out of business.

Coopduc

exthree

The bull market 2010-2018 is the reason I bought my P-Car September 2017 TYVM! /X3

Feld

Depends what type of investment, triple net properties 6-7% is common. Double net 7-8%, gross leases and modified version 8-10%. Multi family depends on level, high rent or low income type. Smaller units buildings usually offer higher cap rate.

Mike Murphy

gumanow

I just put an offer in on a property that adjoins my current residence and wasn't willing to go about the asking price. Was outbid by two other offers. I think the RE market here is overheated and couldn't make sense of the rental income cash flow, even after putting 25% down. Got cash and will be holding out for now.

docmirror

So, on the topic(s) at hand, P car or property. I have a couple res places in CA on long term rental. One is in San Diego, and 3 in Simi Valley. As an example, of what capital investment does, for the past year, my San Diego home has gone up 3.5% since Mar 2017. With a median price of $637,000 for residential homes, that means since last March, the home investment has made enough in equity to pay for a decent 996 (~$22,300). The Simi rentals are a bit lower, but similar. Said another way, notwithstanding the income from rent, the equity position of the home value pays for a 996 each year.

Now, the question comes in - where does it all end? I don't have the answers for that, but for the past 34 years of investing in CA, I have yet to see more than 24 months of stagnant values in RE. The worst lull was from late 2009 to early 2012. People who are short term investors, and jumped out then got hammered. And I have no remorse for those who got hosed in that market. I too a risk and bought another property at the low point. Since then, the value of the home I bought in Nov 2012 has more than doubled.

If someone wants to buy a P-car and has the cash to buy in, and maintain, go ahead and get what you want. However, if it comes down to P-car, or significant investment in RE, I would advise RE any time.

Mike Murphy

docmirror

There are a million horror stories about people getting upside down on RE as an investment. An examination of suburban Las Vegas will give anyone the *******. Just one mans opinion, but if one goes out looking where there are a dozen signs for new homes, it's almost a sure bet one is going to get hosed eventually. Also, condos are by far the WORST example of RE 'investment'. No one wants to live in or buy a condo. They are forced into the market by the cost of actual land ownership RE. I've never owned a condo, and will go to my retirement never having touched one.

FASTTRIP

Real estate is the way to go , but good luck and it would depend on locations. I definitely enjoy my 996 Turbo more than my rentals but that’s how I got it.

Barn996

My advice to the OP would be to buy your Porsche and enjoy your ride.You can't always play safe and do the right thing. If it doesn't work out as planned it shouldn't hurt you too much financially. We aren't talking a lot of $ here to own a 996.

ttt123

Condos here in Detroit are a gold mines as the younger generations are veering away from the responsibilities of property and such and buying them like crazy. My brother and I meet with fellow investors regularly for the Detroit area and the market is quite well for them. Just throwing that out there. I never touched them in the past either but thinking a little different as the market is always changing.

808Bill

Just make sure you factor in the CONDO/HOA fees!

jkfuel

Invest and take the money you make from that to buy the car!