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>and property market And yet, he suggests buying property to rent as a method of the Fastlane. Ask a small-time landlord if renting their property in a halfwa

>and property market And yet, he suggests buying property to rent as a method of the Fastlane. Ask a small-time landlord if renting their property in a halfway efficient market is making them rich. I don't have a problem with the first half of the article, discussing the philosophy of getting rich. It's when he seems to delve into practical advice (write a book! rent out a house!) that the author seems to lack a sense of financial matters.

jaworrom 13y ago
Every real estate investor/landlord I know has worked up to a 7 figure net worth pretty quickly. Started with single family homes or a few duplexes, traded them up/reinvested cash flow, and eventually settled with a few multifamily complexes. Property management does the work, they collect the check. It's not easy, mind you, but it is worth the efforts. The rental market is the most solid investment vehicle out there. The market may go up and down, but it's always trending upward. Can't say the same about the stock market.
- hnnewguy 13y ago
  >The market may go up and down, but it's always trending upward. Can't say the same about the stock market. Yes, you absolutely can say the same about the stock market. In fact, the historical compound annual growth rate of the market, adjusted for inflation, is almost 7%. That's over 100+ years. I don't have the data in front of me, but I'll bet the market returns crush real estate returns over that period. You'll have to explain how these people managed to accumulate such wealth "quickly" through real estate, unless it involved flipping houses during one of the biggest housing bubbles in economic history, of which there were massive amounts of losers on the other end of these transactions (aka bagholders). This era produced a ton of "real estate gurus", but it will prove to be an anomalous period. But, taking the economic environment in context , it was a great, clever way to make a fortune; akin to telling someone to sell Tulips in 1640. I just think the idea that "buy real estate, get rich" is naive. The real trick is figuring out the next real estate, or Tulip, early in the cycle. TINSTAAFL. There is nothing magical about expected real estate returns, and they are in line with any other investment vehicle when adjusted for risk.

jaworrom 13y ago

Every real estate investor/landlord I know has worked up to a 7 figure net worth pretty quickly. Started with single family homes or a few duplexes, traded them up/reinvested cash flow, and eventually settled with a few multifamily complexes. Property management does the work, they collect the check. It's not easy, mind you, but it is worth the efforts. The rental market is the most solid investment vehicle out there. The market may go up and down, but it's always trending upward. Can't say the same about the stock market.

hnnewguy 13y ago
>The market may go up and down, but it's always trending upward. Can't say the same about the stock market. Yes, you absolutely can say the same about the stock market. In fact, the historical compound annual growth rate of the market, adjusted for inflation, is almost 7%. That's over 100+ years. I don't have the data in front of me, but I'll bet the market returns crush real estate returns over that period. You'll have to explain how these people managed to accumulate such wealth "quickly" through real estate, unless it involved flipping houses during one of the biggest housing bubbles in economic history, of which there were massive amounts of losers on the other end of these transactions (aka bagholders). This era produced a ton of "real estate gurus", but it will prove to be an anomalous period. But, taking the economic environment in context , it was a great, clever way to make a fortune; akin to telling someone to sell Tulips in 1640. I just think the idea that "buy real estate, get rich" is naive. The real trick is figuring out the next real estate, or Tulip, early in the cycle. TINSTAAFL. There is nothing magical about expected real estate returns, and they are in line with any other investment vehicle when adjusted for risk.