biophase
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Biophase--I'd be curious to know what your thoughts are on owning residential real estate. I know you mentioned that you have (or had) some rentals in a post many moons ago. Given that your focus seems to be mainly ecommerce these days, would you even consider touching RE?
I've been chatting with someone recently about this. What it boils down to is your knowledge in making money. We obviously all want to learn easier and easier ways to make money. As we do so, we drop the harder ways to make money as we learn.
I remember the first Richdad meeting when those 2 Asian guys who were online guys showed up, they could not understand why everyone there was into real estate because it took $10k down to make $200/mo cashflow. They said that they could make $500/mo using $5000. I remember debating with them about that. This was my first intro into online businesses BTW.
Today, if I had to spend $25k to invest. I can find a much better return that real estate. Therefore, I would not do REI again. What I've found is that REI is very illiquid and income limiting. You are not agile with it at all.
I have rentals still and a great PM. I just collect checks monthly and have mortgage rates below 3% with very good cashflow. I do like getting checks, but honestly the cashflow is only $1500 and I have $50,000 of down payment tied up in there. With $50,000 I could create an online business that would do who knows how much. Probably $3000 minimum profit and pay an employee $1000 a month to run it. Granted online business is not passive, but it can be made to be very close.
I personally do like the thought of owning real estate. I sometimes do like remodelling things. I probably will end up with real estate sometime in the future. It will not be the best ROI investment that I can make. I would probably pay all cash so I can have all the cashflow and not worry about payments. I would not be investing as others are here to generate maximum ROI and cashflow. It would be a place to park my money.
- I would never personally do a fix and flip anymore because I can spend that time more efficiently just clicking away on a computer.
- I'm sure MJ would never do an online store because he can think of ways to make way more money online without shipping products.
- The Shark Tank guys would never manufacture a product themselves because they can make way more money licensing.
So it basically comes down to knowledge and the most efficient way for YOU to make you money. If you can only flip burgers, then you flip burgers. Once you learn to remodel bathrooms, you don't go back to flipping burgers.
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