Just to show how one person can see something as a problem and another as an opportunity.
Part of the reason I got into real estate investing is because years ago (90s) I used to read a weekly section in the paper about people on their way to being millionaires. I was financially illiterate and would have guessed that their money was from cash, stocks and bonds. But I noticed that most people’s net worth was in real estate. My guess is that it was probably 8 out of 10, and it wasn’t investors, it seemed to be people that when they moved up to another home they kept the old one as a rental. This is what convinced me to eventuallly invest in real estate shen I got the chance. I made a lot of money, I know a lot of it was luck - because I could have never imagined how much appreciation was coming, but part of it was also from this one observation.
I am sharing this because I was reading a similar article on the CNN website titled “millionaire in the making”, and a reader responded with the following:
“My biggest beef was that at one time, almost every one of these articles was based on singles/couples who’d had incredible appreciation on their homes (i.e.”equity M.I.T.M.). Having grown up in rural western PA, lived 22 years in SC and the last 2 here is So.Cal. (travelled a lot for my environmental engineering career)I can assure you that most areas of the country DON’T have that type of appreciation on a home and not everyone owns rental property. How about some more articles about folks who are M.I.T.M. from NON-real estate investing? Most of the articles were people based in CA, DC, the Northeast, etc.”
He is seeing the same thing I saw, that most people’s money (who are on their way to being millionaires) is from real estate, yet he does not see the opportunity, he has a “beef” with the articles.
That reminds me of a guy who posts here once in a while, he must have written in 100 times about making money in pre-construction.
Wanted to know how he could do it?
EVERYONE told hime to stay away, bad deal, only benefits the builder, those days are over, ect.
He thought we were all kidding him. Just did not want to face reality.
I remember that guy, wonder what happened to him. He either listened and stayed away or just stopped coming here because we didn’t have the answer he wanted to hear.
a year ago, people wouldn’t shutup about precon. now hardly anyone does. I guess Phoenix market taught them a lesson
If it wasn’t Phoenix that did it the FL market did.
I don’t have much appreciation at all where I am. That is speculation. I create my own equity. I buy a house for $60k because it needs a lot of work. I put that work into it $6k and now it is worth what everyother house just like it is selling for in that neighborhood which is $100k. I just made $30k. Plus I get $200/month cash flow per month on each house. If you do that 10 times you now have $2000/month that you can actually use to buy hamburgers for your friends but you also have a third of a million bucks in equity.
With stocks you get the appreciation (maybe) but you can’t use it to even buy a cup of coffee.