Why Real Estate is Bullsh*t

[Kevin88660]

So first off, I am new to the forum. But as far as the title goes (Yes, I know it was clickbait), I ask you if Real Estate is worth it or not because I was watching an Alex Hormozi video and he said once you commit to an investment (stocks, real estate, crypto) Then you are stuck with that. He also said you should invest in yourself first through courses and learning skills. Is this true?

Edit: None of you can seem to figure out that the headline was there just to get you to comment something because I know little to nothing about entrepreneurship so far. No need for dickhead comments.

Strength with real estate is leverage. Banks love real estate as collateral and are willing to give you high leverage with low interest, that you cannot get from other investment.

If you can get ownership of a rental property with 20 percent downpayment, with rental income sufficient to cover loan repayment and other management cost, you own the house 20 years later after the house is fully paid. So even with zero cap appreciation, you 5x your investment over 20 years.

But Leverage is a double edge sword. The problem with investing when “rental income is sufficient to cover mortgage payment” is usually a low interest rate environment when asset price is at the peak of the cycle.

Over-leveraged investment at a peak of cycle could have disastrous forced liquidation events coming. Falling rental, falling housing price ( lower collateral value) could hunt you in bad time.

 

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[gpetukhov]

Not true. What you've described, and tried to pass as fact, is a limiting belief.

You need to have enough capital to start with 1 property and, depending on where you live, there are different programs available to help you minimize your down payment to get in the game.

Those with an average salary have even more upside potential by getting into real estate early on! A simple BRRR strategy with a duplex can make you a rent-free homeowner in literally months.

Or if you have a low income by rehabbing and flipping the property after a year - tax free appreciation which is nearly double the income from your job

 

[LateStarter]

Or if you have a low income by rehabbing and flipping the property after a year - tax free appreciation which is nearly double the income from your job

I'd consult with an accountant on that one. I've never done a flip on a duplex primary residence as house hack. I'd be surprised if the government let you take all the tax-free appreciation as your principle residence. I suspect they'd try to take a portion of it as a rental property; particularly in Canada.