Anyone into real estate investing here?

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jb1
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Location: NC

Anyone into real estate investing here?

Postby jb1 » Sun Jun 18, 2017 5:02 pm

Hey guys, in order to hit my financial goals, besides being a boglehead, I will look into real estate investing. Within the next few months when I have a bit more saved up, I plan to purchase my first rental property.

Does anyone else do this as well? If so, what do you own?
On the path to financial freedom. Want to retire by 38

bayview
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Location: WNC

Re: Anyone into real estate investing here?

Postby bayview » Sun Jun 18, 2017 5:05 pm

Not to be unkind, but umm, the search button? There are lots and lots of real estate threads here. The title might not specifically say "investing", but there are plenty of reply posts by people who have from 1 to lots of rental properties.
The continuous execution of a sound strategy gives you the benefit of the strategy. That's what it's all about. --Rick Ferri

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knpstr
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Re: Anyone into real estate investing here?

Postby knpstr » Sun Jun 18, 2017 5:07 pm

biggerpockets.com is the place you want to be to discuss real estate investing.
Very little is needed to make a happy life; it is all within yourself, in your way of thinking. -Marcus Aurelius

jb1
Posts: 61
Joined: Sun Nov 27, 2016 8:33 am
Location: NC

Re: Anyone into real estate investing here?

Postby jb1 » Sun Jun 18, 2017 5:20 pm

knpstr wrote:biggerpockets.com is the place you want to be to discuss real estate investing.


Yea im on there too. Just wanted to see if bogleheads actively invested in real estate and what their strategies were
bayview wrote:Not to be unkind, but umm, the search button? There are lots and lots of real estate threads here. The title might not specifically say "investing", but there are plenty of reply posts by people who have from 1 to lots of rental properties.


sorry moderator, I used the search button and didnt see a single thread under "real estate investing" from 2017. Is it ok that I made a new one?
On the path to financial freedom. Want to retire by 38

bayview
Posts: 1109
Joined: Thu Aug 02, 2012 7:05 pm
Location: WNC

Re: Anyone into real estate investing here?

Postby bayview » Sun Jun 18, 2017 5:22 pm

jb1 wrote:
knpstr wrote:biggerpockets.com is the place you want to be to discuss real estate investing.


Yea im on there too. Just wanted to see if bogleheads actively invested in real estate and what their strategies were
bayview wrote:Not to be unkind, but umm, the search button? There are lots and lots of real estate threads here. The title might not specifically say "investing", but there are plenty of reply posts by people who have from 1 to lots of rental properties.


sorry moderator, I used the search button and didnt see a single thread under "real estate investing" from 2017. Is it ok that I made a new one?

My apologies. :happy
The continuous execution of a sound strategy gives you the benefit of the strategy. That's what it's all about. --Rick Ferri

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arcticpineapplecorp.
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Joined: Tue Mar 06, 2012 9:22 pm

Re: Anyone into real estate investing here?

Postby arcticpineapplecorp. » Sun Jun 18, 2017 5:38 pm

when I type in "real estate" in the search button, this is what I come up with (after setting "tools" in google to "past year"):

https://www.google.com/search?sitesearc ... &tbs=qdr:y

All those posts are either 2017 or 2016. Just because they're from the past year though doesn't mean you'll get the answer to your question. Sometimes you have to go back further than the past year to get the goods.

I think the answer you'll find like most things in life is "some say yes to real estate and others say no". You'll find people who love real estate and others that hate it (from experience) and everything in between. Your mileage will vary. There is a lot to learn about real estate (especially renting it out) so I would not rush into anything without reading, reading, reading and then learning some more from others' successes and failures.

I will share one piece of advice from a family member of mine who learned the hard way that buying physical pieces of real estate and renting them out is real work. It's a job (sometimes full time depending on tenants/issues, # of properties, etc.). If you have a full time job, how do you feel about having another one (or part time job)? If you say you'll hire a property management company, well that reduces your ROI greatly.

Bogleheads tend to prefer investments which are passive, not active. Along those lines have you considered investing in real estate through Vanguard's REIT index fund? It contains 157 companies that deal in real estate. So it's not 157 pieces of real estate. It's so much more because each of those 157 companies owns/manages multiple pieces of real estate. So it's more diversified than the amount of real estate you could buy on your own. It's publicly traded (don't look to non-publicly traded reits), it's low cost (just 0.12% per year, if purchasing admiral shares VGSLX $10,000 minimum).

It's risky and should be considered on par with the risk of stocks. It can lose value (did during the great recession). It can be subject to swings due to changes in interest rates, etc. I'm not telling you to invest in a REIT index fund, but consider it along with your learning about owning physical pieces of real estate. The REIT index fund is passive. Owning real estate otherwise is active. Is that what you want?
"Invest we must." -- Jack Bogle | “The purpose of investing is not to simply optimise returns and make yourself rich. The purpose is not to die poor.” -- William Bernstein

Goal33
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Re: Anyone into real estate investing here?

Postby Goal33 » Sun Jun 18, 2017 5:43 pm

I don't like owning investment properties. I like owning my primary residence though. But will likely sell it when I go for the upgrade in 5-7 years.
A man with one watch always knows what time it is; a man with two watches is never sure.

harrychan
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Re: Anyone into real estate investing here?

Postby harrychan » Sun Jun 18, 2017 6:58 pm

At one point I invested in a 4-plex near a university with a colleague. After maybe 2-3 years we sold it. The truth with real estate investing is it is based on the locality of the property. Around here, a HCOL area, you need a lot of capital to purchase a home that you think would appreciate. Otherwise, you are left with investing in remote areas which will likely not appreciate as much if any. If that's the case, its better to invest in mutual funds or REIT's.
This is not legal or certified financial advice but you know that already.

Dave55
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Location: Colorado

Re: Anyone into real estate investing here?

Postby Dave55 » Sun Jun 18, 2017 7:06 pm

jb1 wrote:Hey guys, in order to hit my financial goals, besides being a boglehead, I will look into real estate investing. Within the next few months when I have a bit more saved up, I plan to purchase my first rental property.

Does anyone else do this as well? If so, what do you own?


Sorry to repeat myself:

I worked in Commercial RE for many years with Private Equity owners. Investing directly in commercial RE (retail, apartments, office, industrial storage) is a business, a full time job and you better know what you are doing or you will get crushed. Many of the smaller private equity RE groups will take investments of $100K provided you are an accredited investor. Having invested on both sides for over 20 years, and in hindsight, the publicly traded REIT's are the way to go (especially VNQ Vanguard REIT Index) due to liquidity, simplicity, transparency and fees.
Dave

jb1
Posts: 61
Joined: Sun Nov 27, 2016 8:33 am
Location: NC

Re: Anyone into real estate investing here?

Postby jb1 » Sun Jun 18, 2017 7:20 pm

Thank you all for the responses. I still live at home and id like to move out into a purchased house, townhome, and rent out the other rooms to start.
Appreciate the feedback!
On the path to financial freedom. Want to retire by 38


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