Posted by Doug Pretorius on February 05, 2004 at 21:13:25:
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Motley Fool on “Landlording” - Posted by Big Slick
Posted by Big Slick on February 05, 2004 at 14:31:50:
Interesting article I thought I would share.
Re: Motley Fool on “Landlording” - Posted by Doug Pretorius
Posted by Doug Pretorius on February 05, 2004 at 15:08:21:
LOL, I really enjoyed the article. Especially the part about turning away from the trillions of dollars of stable, secure real estate investments, in favor of pegging your retirement dreams on stocks! HaHaHa!
I think most of the time landlording is bad news. There are a few professionals with the tenacity and cash reserves to survive. But most “landlords” are lucky to come out of the experience without being sunk (emotionally if not financially).
Quite frankly, I don’t see the appeal. When you rent your property to someone you are in essence lending them money specifically because they can’t afford it, and you have at best a single months deposit in case they destroy the place, or don’t pay.
Of course once the property is paid off it can be pretty good. But few people make it that far. In the meantime they’ve had to work not only to make a living, but to support their properties, too.
Appreciation? Sure. If you buy right and prices jump 100% in a few years and you don’t have too many capital expenditures. Then you can sell and make a profit that way. Then what? Buy another one at the top of the market and watch it go vacant and lose 50% of it’s value?
I guess I just don’t get it. Why put yourself through all of that when you can finance a house to someone who will take care of it so you have no expenses, give you a sizable non-refundable deposit in case something goes wrong, and still collect the appreciation 90% of the time?
Re: Motley Fool on - Posted by josh
Posted by josh on February 05, 2004 at 16:13:25:
And the owners of companies never steal from you… Enron, etc. I had a friend who lost over half of his retirement when he was laid off from Tyco, after an accounting scandal. I’ll take the risk of my two properties instead. josh
Re: Motley Fool on - Posted by Doug Pretorius
Posted by Doug Pretorius on February 05, 2004 at 16:56:16:
You did notice that I was bashing both stocks and landlording, right? My experience points me directly towards seller financing/rent to own, as the best investment tool available.
I agree with you, but Doug but… - Posted by mario
Posted by mario on February 05, 2004 at 18:50:48:
I totally agree with you Doug, but I do not mind to have 6 sfh rented, you may ask why? Well that is my equity cushion, in case I need some money out I can always refinance a property or two and voila! I have money to work with.
Don’t get me wrong I do exactly the same thing you are doing, buying low and selling high owner finance with 10% down minimum.
Investing is better than stocks, don’t you think?
Rant is now complete, returning to regular program - Posted by Doug Pretorius
Posted by Doug Pretorius on February 05, 2004 at 21:07:21:
