Search found 782 matches

by WanderingDoc
Sun Jul 15, 2018 12:17 pm
Forum: Investing - Theory, News & General
Topic: Why is leveraging property good but leveraging stocks bad?
Replies: 79
Views: 4516

Re: Why is leveraging property good but leveraging stocks bad?

You were wise to buy real estate and hold it. Real estate is a very forgiving investment. I've found that you could make a lot of mistakes, not run the numbers that well, but if you hold on - rent growth, principal paydown, and equity happens :) Well done! In my case, I just bought a few properties...
by WanderingDoc
Sun Jul 15, 2018 3:09 am
Forum: Investing - Theory, News & General
Topic: Why is leveraging property good but leveraging stocks bad?
Replies: 79
Views: 4516

Re: Why is leveraging property good but leveraging stocks bad?

Leverage is not bad for stocks. I am unapologetically leveraged. I didn't chose a margin loan to do it, instead, I have four fixed rate loans with APRs of 0%, 0%, 1.89%, and 3.125%. I carry this debt for cheap leverage, tax deferral, and the three lowest rate loans are a profitable investment in th...
by WanderingDoc
Sun Jul 15, 2018 2:17 am
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 64
Views: 3190

Re: Direct Real Estate Returns

Kyle has been the only person to date on 3 different forums that has fervently pointed out that the returns are "undefined", not infinite. I also have 2 properties where I pulled out all the money I had in the deal through a cash out refinance, having $0.00 in the properties, yet still getting mont...
by WanderingDoc
Sun Jul 15, 2018 1:18 am
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 64
Views: 3190

Re: Direct Real Estate Returns

Kyle has been the only person to date on 3 different forums that has fervently pointed out that the returns are "undefined", not infinite. I also have 2 properties where I pulled out all the money I had in the deal through a cash out refinance, having $0.00 in the properties, yet still getting mont...
by WanderingDoc
Sat Jul 14, 2018 11:53 pm
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 64
Views: 3190

Re: Direct Real Estate Returns

Kyle has been the only person to date on 3 different forums that has fervently pointed out that the returns are "undefined", not infinite. I also have 2 properties where I pulled out all the money I had in the deal through a cash out refinance, having $0.00 in the properties, yet still getting month...
by WanderingDoc
Sat Jul 14, 2018 11:00 pm
Forum: Investing - Theory, News & General
Topic: Why is leveraging property good but leveraging stocks bad?
Replies: 79
Views: 4516

Re: Why is leveraging property good but leveraging stocks bad?

1. Walk into a Bank of America and ask to buy a house or apartment, 20% down, 5:1 leverage. They will say "you can". Ask them to give you an 80% loan to buy actual stock in Bank of America, their own company. They may laugh you out of the bank. Makes you wonder what they think the risk of one is vs....
by WanderingDoc
Sat Jul 14, 2018 7:51 pm
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 64
Views: 3190

Re: Direct Real Estate Returns

Yes, you can get 10 (Fannie/Freddie) loans at 20% down. +10 for the spouse if you have one. I have reached financial independence long before the 10th loan, so I am just shuttled my capital to 100% passive large apartment/self storage/etc. syndications. Will banks lend on 20% down, with no recourse?...
by WanderingDoc
Sat Jul 14, 2018 7:27 pm
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 64
Views: 3190

Re: Direct Real Estate Returns

20% is extremely doable with leveraged rentals and perhaps even if you use property manager, if you buy well. Real estate isn't for everyone, but 20-30% is realistic. Ignore the "Real estate pays you 5 ways instead of just 1 way" people. The number of ways an investment pays is irrelevant. The key ...
by WanderingDoc
Sat Jul 14, 2018 6:25 pm
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 64
Views: 3190

Re: Direct Real Estate Returns

There are members who boast about getting 18-20% annual ROI on their direct r/e holdings. I'm curious if that is just counting gross income against cost of purchase. I always multiply rental income by 55% to account for maintenance, vacancy, management, taxes, and insurance, and then divide against...
by WanderingDoc
Sat Jul 14, 2018 6:23 pm
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 64
Views: 3190

Re: Direct Real Estate Returns

Also, if you buy cash-flowing real estate, you can mitigate risk greatly no matter what property values do - you still get paid. Only if you tenant writes you a check:) Anyone thinking about real estate should watch : https://www.netflix.com/title/80224279 or https://www.imdb.com/title/tt2223758/ ....
by WanderingDoc
Sat Jul 14, 2018 4:44 pm
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 64
Views: 3190

Re: Direct Real Estate Returns

20% is extremely doable with leveraged rentals and perhaps even if you use property manager, if you buy well. Real estate isn't for everyone, but 20-30% is realistic. Ignore the "Real estate pays you 5 ways instead of just 1 way" people. The number of ways an investment pays is irrelevant. The key ...
by WanderingDoc
Sat Jul 14, 2018 3:22 pm
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 64
Views: 3190

Re: Direct Real Estate Returns

When we bought our present home 33 years ago, we sold our rather nice 2BR/2B condo. I've often thought that we should have held onto it. I'm pretty sure we could have about broken even as far as the rent covering the all the costs/PITI. We sold it for $140K, and today it is worth about $525K ($330k...
by WanderingDoc
Sat Jul 14, 2018 1:49 pm
Forum: Personal Finance (Not Investing)
Topic: Early retirement
Replies: 91
Views: 5891

Re: Early retirement

Easy solution for your 45yo early retired friend. Move overseas. The mountains to climb, restaurants to try, classes to take, languages to learn, friends to make, lovers to take, etc. are endless and one would need 10 lifetimes to do it all! :D Yep. Many people think that if someone else is signific...
by WanderingDoc
Sat Jul 14, 2018 1:45 pm
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 64
Views: 3190

Re: Direct Real Estate Returns

Life is largely about self talk and the stories you tell yourself. If you are convinced that all you can get / are entitled to 7% returns your whole life - that's exactly what you will get. That you should take money OUT of your paycheck for 40 years, because big banks and the government told you it...
by WanderingDoc
Sat Jul 14, 2018 1:33 pm
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 64
Views: 3190

Re: Direct Real Estate Returns

You have a lot to learn, grasshopper. In that example, I assumed an 8% cash flow, after ALL expenses. That is very conservative in the sense that no creativity or good deal is needed to get it. Most (correction, all) of my deals cash flow significantly more than 8%. Principal paydown is totally sepa...
by WanderingDoc
Fri Jul 13, 2018 11:41 pm
Forum: Personal Finance (Not Investing)
Topic: Early retirement
Replies: 91
Views: 5891

Re: Early retirement

I am entitled to my opinion, just as you yours. 55 is up there ... means you've been working for almost 40 years. I started my first job at 16. Its not only military. State and government workers can do the same. So can those who focus on investments which produce cash flow. On this forum, 55 may be...
by WanderingDoc
Fri Jul 13, 2018 10:58 pm
Forum: Personal Finance (Not Investing)
Topic: Early retirement
Replies: 91
Views: 5891

Re: Early retirement

I retired at 55 several years ago. I don't get those kinds of questions from many people. Although it's not a secret, I am careful about who I tell I am retired. I spend much of my time now on artistic hobbies, so I usually tell people I'm an artist. For people who knew about my previous career I t...
by WanderingDoc
Fri Jul 13, 2018 10:56 pm
Forum: Personal Finance (Not Investing)
Topic: Early retirement
Replies: 91
Views: 5891

Re: Early retirement

50-55 is considered early now? Military enlisted can retire with pension at 37, officers with pension at 40. I would consider early retirement 35-40 tops, since there are a lot of entrepreneurs, real estate investors, and online business owners that do it at 25-26. I mean, they do it but of course t...
by WanderingDoc
Fri Jul 13, 2018 10:23 pm
Forum: Investing - Help with Personal Investments
Topic: Dave Ramsey made me laugh today
Replies: 63
Views: 6380

Re: Dave Ramsey made me laugh today

What about something like the TSP G-fund? A lot of talk about bonds being the riskier asset class. I believe the G-fund is a different animal.
by WanderingDoc
Fri Jul 13, 2018 4:24 pm
Forum: Investing - Help with Personal Investments
Topic: What's your *real* asset allocation?
Replies: 28
Views: 2798

Re: What's your *real* asset allocation?

82% real estate equity (active and passive investments)
8% paper
~12% cash/CDs
~0.02% crypto :D

Don't own my personal residence.
by WanderingDoc
Fri Jul 13, 2018 2:52 pm
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 64
Views: 3190

Re: Direct Real Estate Returns

You have to assume you capitalize and reinvest 100% of those returns. Which I don't. I have a day job and invest on a side. I like my regular job, and I value my free time (a lot) more than making money, sorry. I'm at the stage in my early 30s where cash flow from real estate more than covers my liv...
by WanderingDoc
Fri Jul 13, 2018 2:50 pm
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 64
Views: 3190

Re: Direct Real Estate Returns

The people I know who make money are "cosmetic" renovators. They buy a house for let's say $500K, put $30K into places that show the most, and sell it for $100K three months later. I guess some buyers just can't resist the smell of new paint, fresh carpeting, and a cleaned up garden. Sell a $500K h...
by WanderingDoc
Fri Jul 13, 2018 12:02 pm
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 64
Views: 3190

Re: Direct Real Estate Returns

That property example is found all over the U.S., even in today's seller's market. Birmingham, Memphis, Jacksonville, Little Rock, parts of NC and SC, many more markets. A bit off topic, but do you invest using turn-key providers? Not really. I just own one property through a turnkey provider. Dece...
by WanderingDoc
Fri Jul 13, 2018 11:54 am
Forum: Investing - Theory, News & General
Topic: How Do You Like My New 'Doo
Replies: 152
Views: 29791

Re: How Do You Like My New 'Doo

You can't live on $9000 per year. Take that same $300K and buy a $1.2M 24-unit building, now your 'dividend' is a cool $110K per year (that you legally paid zero taxes on after deducting expenses and depreciation). My understanding is that a landlord's cash return on real estate is about 6% a year....
by WanderingDoc
Thu Jul 12, 2018 10:00 pm
Forum: Investing - Theory, News & General
Topic: How Do You Like My New 'Doo
Replies: 152
Views: 29791

Re: How Do You Like My New 'Doo

Nedsaid, Being a fellow value investor & dividend investor. Every retired person I know (Mother, Aunts, Uncles, Grandparents) are all concerned about income. Social Security (monthly income) & dividends (quartely income) keep the income coming in. If you have ($300,000.) & put that into VHDYX at 3%...
by WanderingDoc
Thu Jul 12, 2018 8:24 pm
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 64
Views: 3190

Re: Direct Real Estate Returns

From a prior post, so I don't have to write it out again: Buy a property at $100K, $20K down. Monthly rents of $900-$950. I personally buy in markets with 6-8% long term appreciation, but lets be very conservative and use the general longer-term real estate appreciation value across the entire U.S....
by WanderingDoc
Thu Jul 12, 2018 6:51 pm
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 64
Views: 3190

Re: Direct Real Estate Returns

From a prior post, so I don't have to write it out again: Buy a property at $100K, $20K down. Monthly rents of $900-$950. I personally buy in markets with 6-8% long term appreciation, but lets be very conservative and use the general longer-term real estate appreciation value across the entire U.S. ...
by WanderingDoc
Thu Jul 12, 2018 12:47 pm
Forum: Investing - Theory, News & General
Topic: Home ownership vs investing -- condos vs renting, etc
Replies: 107
Views: 4953

Re: Home ownership vs investing -- condos vs renting, etc

Buying a home to live in is not an investment. See my signature. Your sage "signature" seems to ignore the impact of an obscure factor called "taxes." I suggest that you and your neighbor in the identical house switch residences and pay rent to each other, which will satisfy both prongs of you two-...
by WanderingDoc
Wed Jul 11, 2018 10:18 pm
Forum: Investing - Theory, News & General
Topic: Home ownership vs investing -- condos vs renting, etc
Replies: 107
Views: 4953

Re: Home ownership vs investing -- condos vs renting, etc

Buying a home to live in is not an investment. See my signature. Your sage "signature" seems to ignore the impact of an obscure factor called "taxes." I suggest that you and your neighbor in the identical house switch residences and pay rent to each other, which will satisfy both prongs of you two-...
by WanderingDoc
Wed Jul 11, 2018 4:56 pm
Forum: Investing - Theory, News & General
Topic: Home ownership vs investing -- condos vs renting, etc
Replies: 107
Views: 4953

Re: Home ownership vs investing -- condos vs renting, etc

Buying a home to live in is not an investment. See my signature.
by WanderingDoc
Wed Jul 11, 2018 2:22 pm
Forum: Investing - Help with Personal Investments
Topic: $13 Million Goal for Early Retirement (am I crazy?)
Replies: 177
Views: 32232

Re: $13 Million Goal for Early Retirement (am I crazy?)

if you live in venezuela, you could turn 1k to 13 mil in weeks. norminal money is just a number. Actually any paper money or stock is just a number. A good measure of wealth is long can your saving can support your lifestyle in a happy, satisfation and healthy way. If you believe this, you can live...
by WanderingDoc
Wed Jul 11, 2018 2:26 am
Forum: Investing - Theory, News & General
Topic: Morningstar: prepare for a lost decade for U.S. stocks
Replies: 198
Views: 17890

Re: Morningstar: prepare for a lost decade for U.S. stocks

Don't say cap rate. That term has zero value and no use for single family homes/condos, nor 2-4 unit deals.  A correctly calculated cap rate has value for any real estate investment. Cap rate is net of expenses, and you may not know the expected expenses for small properties, hence the difficulty. ...
by WanderingDoc
Wed Jul 11, 2018 2:19 am
Forum: Investing - Help with Personal Investments
Topic: Hyperbitcoinization?
Replies: 14
Views: 1307

Re: Hyperbitcoinization?

gips wrote:
Wed Jul 11, 2018 1:57 am
$60k—who wants to be a billionaire? Seriously, I read an article a while ago by a respected asset mgr who suggested 1% of your portfolio might be appropriate. I decided on .01% and did quite well.
I'm at .02% 8-)
by WanderingDoc
Wed Jul 11, 2018 2:03 am
Forum: Investing - Help with Personal Investments
Topic: Calculating past returns in private real estate fund
Replies: 6
Views: 334

Re: Calculating past returns in private real estate fund

I made an investment in a private real estate fund in 11/2011 before i found bogleheads. the manager of the fund talks of the incredible returns we have seen - (we have gotten our principal back plus a small return) - and I asked how his return compared with the market or just the vanguard REIT (wh...
by WanderingDoc
Mon Jul 09, 2018 9:13 pm
Forum: Investing - Theory, News & General
Topic: 50/50 blend of VWENX+VUSUX provides ridiculous risk adjusted return vs 100% stocks
Replies: 22
Views: 2609

Re: 50/50 blend of VWENX+VUSUX provides ridiculous risk adjusted return vs 100% stocks

So people are double sharing between here and reddit. lol Look. I am 25 years old and i will be investing for the next 40 years more. I don't consider myself to have a risk, as long as US business does not go bankrupt, which will never happen. So I get 1% on stocks over bonds, I'm cool with that fo...
by WanderingDoc
Mon Jul 09, 2018 11:37 am
Forum: Investing - Theory, News & General
Topic: Morningstar: prepare for a lost decade for U.S. stocks
Replies: 198
Views: 17890

Re: Morningstar: prepare for a lost decade for U.S. stocks

Would it be 10-15% income if everyone tried doing that? I don't understand your question. That is a decent return on cash to aim for Year 1 after purchase of income-producing real estate. Of course, that is not factoring in tax benefits or principal paydown or appreciation. Also not factoring in th...
by WanderingDoc
Mon Jul 09, 2018 11:34 am
Forum: Investing - Theory, News & General
Topic: Morningstar: prepare for a lost decade for U.S. stocks
Replies: 198
Views: 17890

Re: Morningstar: prepare for a lost decade for U.S. stocks

As an example, a $25K down payment on a $120K property, would yield $2.5K per year - thats your 10% income figure. I guess I would see $2500 per year on a $120,000 property as 2.1%. You are just leveraging that up by borrowing. While the properties may appreciate in value, they may also decline or ...
by WanderingDoc
Sun Jul 08, 2018 10:58 pm
Forum: Investing - Theory, News & General
Topic: Morningstar: prepare for a lost decade for U.S. stocks
Replies: 198
Views: 17890

Re: Morningstar: prepare for a lost decade for U.S. stocks

Invest in real estate. If your property values go up 10% or go down 10%, you won't care since your 10-15% dividend in the form of rental income flows in like a fine brandy 8-) Would it be 10-15% income if everyone tried doing that? I don't understand your question. That is a decent return on cash t...
by WanderingDoc
Sun Jul 08, 2018 9:34 pm
Forum: Investing - Theory, News & General
Topic: Morningstar: prepare for a lost decade for U.S. stocks
Replies: 198
Views: 17890

Re: Morningstar: prepare for a lost decade for U.S. stocks

Invest in real estate. If your property values go up 10% or go down 10%, you won't care since your 10-15% dividend in the form of rental income flows in like a fine brandy 8-) Would it be 10-15% income if everyone tried doing that? I don't understand your question. That is a decent return on cash t...
by WanderingDoc
Sun Jul 08, 2018 6:03 pm
Forum: Investing - Theory, News & General
Topic: Morningstar: prepare for a lost decade for U.S. stocks
Replies: 198
Views: 17890

Re: Morningstar: prepare for a lost decade for U.S. stocks

... Invest in real estate. If your property values go up 10% or go down 10%, you won't care since your 10-15% dividend in the form of rental income flows in like a fine brandy 8-) :D :D :D A 10% cap rate can be hard to find in the majority of markets. There are parts of California where purchasing ...
by WanderingDoc
Sun Jul 08, 2018 3:35 pm
Forum: Investing - Theory, News & General
Topic: Morningstar: prepare for a lost decade for U.S. stocks
Replies: 198
Views: 17890

Re: Morningstar: prepare for a lost decade for U.S. stocks

“Our expectation at the moment is that you won’t have any real return from U.S. equities over the next 10 years,” said Morningstar’s Dan Kemp at a company event Wednesday in London. In the chart he shared below, the black line is pretty close to zero for American stocks. https://ei.marketwatch.com/...
by WanderingDoc
Wed Jul 04, 2018 3:47 pm
Forum: Investing - Help with Personal Investments
Topic: Bitcoin Futures?
Replies: 18
Views: 1262

Re: Bitcoin Futures?

Hello everyone, I wanted to ask everyone's opinion on trading bitcoin futures (which is pretty much using a trading site such a BitMex and predicting whether or not bitcoin will go up or down/longing or shorting. I have a friend who does this for a living and claims to be making a lot of money (alt...
by WanderingDoc
Tue Jul 03, 2018 2:31 am
Forum: Investing - Help with Personal Investments
Topic: Expected returns for 80/20 stock bond for next 10 years.
Replies: 169
Views: 11970

Re: Expected returns for 80/20 stock bond for next 10 years.

HomerJ wrote:
Mon Jul 02, 2018 8:49 pm
masonstone wrote:
Mon Jul 02, 2018 7:24 pm
What’s a reasonable Expected returns for 80/20 stock bond vanguard admiral shares total market for both sides for next 10 years.
Somewhere between 0% and 14%
Could easily be -2% bud.
by WanderingDoc
Mon Jul 02, 2018 10:20 pm
Forum: Investing - Help with Personal Investments
Topic: Why not go 100% stocks?
Replies: 116
Views: 11260

Re: Why not go 100% stocks?

I'm relatively young, 35, and plan to work for the next two decades. I'm in a dual physician household and enjoy working and being productive. I don't really enjoy site-seeing and traveling as much. My household income is approximately 900K with approximately 120K of annual expenses. My question is...
by WanderingDoc
Mon Jul 02, 2018 9:04 pm
Forum: Investing - Theory, News & General
Topic: 28 w/heavy small cap tilt?
Replies: 41
Views: 2938

Re: 28 w/heavy small cap tilt?

You're actually proposing two fairly radical shifts: moving all your equities to a single asset subclass (SCV) AND moving all your fixed income investments to a single asset subclass (intermediate US bonds). I definitely expect that small cap value will produce a premium over the long run, but I wo...
by WanderingDoc
Sat Jun 30, 2018 10:18 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Municipal Money Market VMSXX 1.39%
Replies: 207
Views: 22529

Re: Vanguard Municipal Money Market VMSXX 1.39%

What would you recommend for someone in the 24% federal, 0% state bracket? Prime vs. Muni I think I have a small amount of "cash" in Prime currently, the majority is in a savings account. I have no idea how to determine if more should be in the MM fund vs. savings account. During the past year, the...
by WanderingDoc
Sat Jun 30, 2018 10:01 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Municipal Money Market VMSXX 1.39%
Replies: 207
Views: 22529

Re: Vanguard Municipal Money Market VMSXX 1.39%

The downswing in the muni MM funds was deeper relative to Prime MM this cycle than last cycle. However, the upswing so far is steeper than the last upswing (as always, the TEYs are for my marginal tax rates of 27% and 8%, no itemizing). https://s26.postimg.cc/87tikxg95/Money_Market_TEYs20180619.png...
by WanderingDoc
Sat Jun 30, 2018 6:48 pm
Forum: Investing - Theory, News & General
Topic: Dave Ramsey against index funds?
Replies: 57
Views: 5643

Re: Dave Ramsey against index funds?

Wealthy people don't (and have never) listen to Dave Ramsey. They just don't. You cannot become wealthy following his advice. You cannot shrink your way to wealth. Are you talking about Bogleheads now, or Dave Ramsay? If you listen to Dave Ramsay, one of the things he spends the most time talking a...
by WanderingDoc
Sat Jun 30, 2018 4:43 pm
Forum: Investing - Theory, News & General
Topic: Dave Ramsey against index funds?
Replies: 57
Views: 5643

Re: Dave Ramsey against index funds?

Wealthy people don't (and have never) listen to Dave Ramsey. They just don't. You cannot become wealthy following his advice. You cannot shrink your way to wealth. Are you talking about Bogleheads now, or Dave Ramsay? If you listen to Dave Ramsay, one of the things he spends the most time talking a...
by WanderingDoc
Sat Jun 30, 2018 2:25 pm
Forum: Investing - Help with Personal Investments
Topic: [100% stock, uncomfortable with international]
Replies: 65
Views: 5562

Re: [100% stock, uncomfortable with international]

Once we started having a bad 6 months people are starting to post about jumping ship from international. When we have another good year like 2017 they'll be back. Time in the market is better than timing the market. Are you going to lose sleep if the US stock markets starts to lag International? If...