Reply to $7M vs $10M

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Reply to "$7M vs $10M"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]How do you make 7M?   My HHI is not much so I have invested and saved but still only at 2M

Should I invest that more aggressively for the next 15 years of working [/quote]

If you make an average of 7% over the next 15 years and don’t save another dime you’re at almost 6,000,000. Relax.[/quote]

5.5M and ignoring real inflation [/quote]

RE keeps up with inflation.  Rental RE can return profits that can outperform conservative "safe" guaranteed type of market investments.  I am surprised [b]none of you have rental RE in your portfolio[/b], is market really this much better? 
[/quote]
Not really. Actually majority of my NW is in RE. I'm trying to diversify into equity market.[/quote]

Early Retired Biglaw Partner here.  I also have a rental property as well as an English basement apartment that I rent out.  Combined they generate $6k a month. [/quote]

Have you all had anything major go wrong yet? Rental properties are great until.... they aren't, even if you go the property manager route. [/quote]

Personally don't have the guts to be a landlord.  Too much can go wrong and end up costing you.  Fact is tenants rarely take care of home as well as you would.  
We did rent our condo for 5 years, but it was to good friends.  So we knew they would take excellent care of it, and we also planned to gut it and renovate before we moved in at the end of the lease.  But no way do I want to rent to someone I don't know.  In our condo building, there was a renter who got pissed at multiple noise complaints and fines against them, so they turned on several faucets and closed the drains and left....they were on the 20th floor and caused major damages to at least 6 units.  This is in a luxury building, one of the top 5 buildings in our city--rent for that was over $5K, so typically you'd think someone paying that would be less likely to be destructive.  Oh and the tenant was a doctor, so someone that you would vet and never think twice about them going crazy and doing something as destructive as this.   Yet, the owner had to along with their insurance and the HOA insurance sue the tenant for the $100k's+++++ in damages---I think it was well over $600K in damages and that was 10 years ago.

I'd rather just invest in real estate passively[/quote]

My parents did well with rental houses when I was growing up but the headaches were crazy and when there were problems, they were often big, expensive, and untimely. If you are already comfortable, it just doesn't seem worth it unless you have a really good property manager. My parents had a property manager and it was still tough since major escalations and expenses still got to them.[/quote]

Well, yeah, there is no easy ride investing if you want to make profit.  Neither is investing in the markets.  Some people got wiped out even investing conservatively or lost their earnings instead of growing them.  Nothing is easy.  I guess people just do what they feel most comfortable with.  What you describe is common, repairs are annoying and issues can happen anytime when you are on vacation, day off, etc. But they aren't the norm and major expenses are usually every handful of years relating to having to replace pricier things.  Routine issues like clogged toilet or sink or a minor repair many landlords learn to fix themselves, which works if you are handy and saves a lot.  If you have a professional management company then no headaches and just costs.  Like with everything.[/quote]

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