4 ms·
The point is that it's disingenuous to say you're only using ~25% of your money to buy the property, when in reality all of your money is at risk, because you'r
by gfunk911 16y ago
The point is that it's disingenuous to say you're only using ~25% of your money to buy the property, when in reality all of your money is at risk, because you're leveraging. If you invest 25% in the stock market, you won't lose more than 25%. The returns on the real estate is higher, because you are leveraging. Just because 20% down payment real estate loans are common doesn't change that fact.
I agree with the idea that real estate can be a good investment, but this article has very little to do specifically with investing after a startup exit. The article should be called "Why to invest in real estate."
- jacquesm 16y agos/pay/say/
- jholman 16y ago> this article has very little to do specifically with investing after a startup exit. The article should be called "Why to invest in real estate." Or, perhaps it should be called "A plan for generating retirement-suitable income using approximately $1mm of capital". Oh, hey, that's what it _is_ called (modulo some aggressive rounding). I agree with the first paragraph, though, that if it does turn out that you have $5mm, and if it does turn out that you can't secure nonrecourse debt, then it is true that you're also taking on extra risk.