[StarcraftGG]

(01-29-2013 03:07 AM)Lothario Wrote:  

Thanks for replying Starcraft, Your explanation makes more sense now as I think rental properties don't get you more then 5-6 % net profit which would make this unwise to use your cash to buy property, I would much prefer to buy 4 properties using $100,00 and get the renters to pay for it and wait till it's paid off, That would be the sweet end for me. easier said then done, lots of headaches of renters , maintenanace along the way but he who takes the headache makes the money.

I would recommend not relying on what you said about "I think rental properties don't get you more than 5-6% net profit." Investing, like red pill knowledge, is something that people need to get educated about. It's not something that you want to rely on common sense for. With bank financing at 4%, 25% return on your cash is readily achievable using rental properties. It happens all day long every day. I know you might be skeptical, but think of it like you telling a beta AFC that it's possible to meet a woman and be having sex with her within 2 hours. The beta's response would be "I think it's not possible to do that." Meanwhile, we know that 2 hours is not fast... and that something even faster like 30 minutes is doable. You just need to know what you're doing. Does it happen with every girl, no. You won't get high returns like that on most real estate. With the girls you need to screen, with the real estate you need to know what to look for.

I recommend joining a real estate club - not some crazy multi level marketing trap where they sucker you in for thousands to take classes and up-sell you. Something for real investors - talk to them and see what you come up with for your area.