Also, most of the people that will get crushed are the novice gamblers of meme stock and crypto that was hoping for that one hit one wonder get rich quick trade….[/quote]
And yes I am rooting for these douchebags to get destroyed. But this goes way beyond just meme stock and crypto investors. It goes heavily into real estate investors, flippers, etc. Same get rich quick douchebags. Funny how you guys are quick to criticize these investors when it comes to crypto, yet you have no issue with those flipping and manipulating RE. Perhaps as a RE investor yourself, you are happy that their actions are raising your net worth. Pretty selfish but typical. Well get ready because the RE investor/flippers are about to get destroyed too, the Tech/Crypto crash is just stage 1.[/quote]
That’s where you and I differ.
I don’t agree with what speculators do to try to get rich quick. But I don’t wish for their demise.
And if they can make money this way, more power to them…I just wouldn’t take that risk. And my only feedback for these people is that they totally underestimate risk. My problem wasn’t that they were taking the risk. My problem was they were taking those risks without understanding those risks and then pretending to be financial geniuses. If they made money, good for them and no jealousy on my part. In fact those that got into crypto early and got out, kudos to them. They were able to take advantage of an opportunity of a lifetime….And that’s great for them. There was this guy in Carlsbad that traded up to a $3million beachfront property, and when asked how he did it he was like “Crypto Baby”. I was like cool man, you got it to work. He understand risk, he cashed out and took advantage of an opportunity, good for him. Other people, not so smart, and while I don’t wish bad on them, they should learn a lesson or two about risk versus reward.
It’s the same thing that I rail against your strategy. You have no long term DRIP strategy and you’re doing the exact same thing the crypto one-hit-wonder folks were trying to do, just on the opposite direction, it seems. Not that I hope bad on you. But you’re outcome is very predictable just like the crypto one-hit-one-shot wonders.
Regarding real estate…Also, again, it appears you lack understanding of real estate investing and how different people are playing it and lumping everyone that owns real estate into a “short term flipper/speculator” that you’re hoping will eat shit for some odd reason, and even addressing me as that category which is so far from reality, it’s just weird that you think this way, like it’s lack of comprehension.
As I previously stated numerous times, I have never “flipped” a property short term. In fact, my plan has always been to hold permanently and keep adding and passing them on to my kid. I bought my real estate primarily for cash flow, at ridiculously low prices and paid them all off with money primary from RSU stock grants from tech companies (as a means of spreading risk from the stock market and tech in particular, and cashing in gains into something tangible that was a great price during a period that felt like an opportunity of a lifetime)…forgoing bling purchases such as a nice sports car or unnecessary primary home improvement upgrades, and instead bought a cheap $2000 beater fun car and dealt with sub-standard primary home ammenities, so I could build a lot of cashflow up front, so I wouldn’t need to fully depend on a W2 job for the rest of my life. That was roughly 10 years ago……Real estate appreciation was icing on the cake… Very nice icing, but not something that really matters except recently cashing out some equity and redeploying it for more opportunity, all done risk mitigated such that I could pay off the loan tomorrow if I wanted to….
The only time I sold 1 property was because I didn’t want to deal with the tenant pool down by SDSU and did a 1031 exchange to a property in Mira Mesa that had the same cash flow but much better tenant selection (professional workers versus college students). In hindsight, I should have kept the property near SDSU and continued letting my property manager manage it because had I kept it, the appreciation would have been $150k more than when I sold it and the rent for it would have been about $2000/month now…And that would have been better than trying to find another rental right now in MM.
Second, why do you think we’re manipulating real estate. I’m not big enough to manipulate it. Real estate is a nice asset because it has a utility. People need to live in it. And simple supply/demand dictates it’s price. I have no control that a lot of people need housing here in San Diego, but because a lot of people need housing here in San Diego and people can pay the higher prices, it’s good for both of us. And rental income for free and clear property is an excellent hedge against inflation and a declining stock market, since the cost of inflation is passed on to the tenant. That’s just how it is, from a pure investment perspective….I can raise rents but keep it slightly below market value so that the tenant doesn’t completely get raked over the coals and I benefit from increased disposable investment income, while my costs are fixed….Nothing wrong with that. It’s win win…
Now if someone tries to do a short term flip and it blows up, that’s really too bad. I’m not cheering for it, but if it happens, and I have the opportunity to buy a short sales or REO like I’ve done before, then it is what is.. Better financially for me. But I certainly don’t wish that on people. And frankly, I most buyers aren’t in this category. Most of the buyers competed with in my submarket I was interested in were buying their primary home to live in. Not that rates are higher, more of them won’t qualify, so maybe now I have a shot at some of these properties with cash offers.
Actually people like me who buy and hold indefinitely are contributing to the housing supply problem more so than the flippers. At least with flippers, they will turn inventory over back to the market. People like me who buy and hold indefinitely, are taking inventory off the market permanently and reducing the supply (albeit very small change to supply by me alone).. And unlike stocks, there’s a benefit for holding indefinitely… long term cash flow from rent that adjusts with inflation.
