Are you Better off than 4 years ago?

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Are you Better off than 4 years ago?

Ed L.
Residential Real Estate Agent · Hattiesburg, MS · Member since 2011 · 475 posts · 141 votes

Disclaimer: I am a conservative, and I don't want this to be political?

The question has been asked and I wonder how the bigger pockets community feels today as compared to 2008?

I personally felt the entire world was in free fall mode during 2008. My 2008 tax returns show that my clients were felling the same way lol...

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J ScottPro Member
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Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
14y

Much better off. In fact, things have been getting better and better every year for the past 15 years, regardless of who happens to be running our government.

It's almost as if I'm the one in control of my financial success... :)

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  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    14y

    Depends on what your are talking about.

    My commercial real estate business has never been better.

    4 years ago markets were just starting to bust from the boom and everyone was waiting for the carnage and bottoming out before making any moves.

    I am glad I didn't buy anything during that time and I am not saddled by a very high debt service to rent collected and acquisition price.

    As far as the economy. The debt is at 16 trillion,unemployment is at about 8.3% but that is because many have given up on looking for work so the actual number is much worse.

    In addition if you fact check the DEMO's assertion that 4.5 million jobs were created between 2008 and now they say that is correct.

    HOWEVER the catch to that is about 111 million jobs were there when the president took over and now the net number is only plus 300,000 in jobs.Lost millions of jobs and gained them back plus 300,000 but the problem is the 4.5 million lost many were very high paying professional jobs.

    The jobs that replaced those on rehire for about 80% were low paying retail and other jobs.These type of jobs help people barely pay basic bills and not pump extra money back into the economy.

    So in my mind we aren't that better off than 4 years ago regardless of who is in office.

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  • Rob K.
    Investor · Southeast, MI · Member since 2012 · 2k+ posts · 1k+ votes
    14y

    This is an interesting topic. I will also add a disclaimer: I consider myself to be a Libertarian, but I have a lot of conservative views. I voted for Ron Paul in the primary and will definitely be voting against Obama. I'm not a big fan of Romney, but I have been a fan of Paul Ryan for years.

    As far as being better off, I am better off. I don't think it has to do with who the president is. I get up every day and go to work. I save my money and live on way less than I make. When I look around, I don't see people doing as well. I have had many friends and family memebers go through job losses. They are now working for less money. The economy is a mess. While it seems to have gotten better, all signs point to another recession.

    My biggest concern is the debt. The baby boomers have bankrupted this country. I have two small children and they are going to have to pay the piper one day when this spending party ends. There is no way we can stay on this same track that we are on. Deep cuts are going to have to be made across the board. I think there is going to be massive inflation in this country.

    2008 was scary. I think the president tends to get too much blame for a bad economy and too much credit for a good economy.

    The bottom line is that more jobs will improve the economy. Jobs are created in the private sector. The private sector will hire when the government has less regulations and lower taxes.

    2Reply
  • Dennis Tierney
    Investor · Omaha, NE · Member since 2011 · 475 posts · 211 votes
    14y

    As a physician I am much worse off since the advent of Obamacare and the future of medicine care and practice is dim. I will get out as soon as I can and most Drs. my age will do the same.

    1Reply
  • Will Browm
    Investor · Buford, GA · Member since 2012 · 120 posts · 31 votes
    14y

    Worse. On a comeback, but much worse.

    0Reply
  • Bryan Hancock
    Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    14y

    Much better off. 2012 has been by far my best year ever and 2013 is likely to be even better. Austin is doing very well right now.

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  • J ScottPro Member
    Moderator
    Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
    14y

    Much better off. In fact, things have been getting better and better every year for the past 15 years, regardless of who happens to be running our government.

    It's almost as if I'm the one in control of my financial success... :)

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  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    14y
    Originally posted by J Scott:
    It's almost as if I'm the one in control of my financial success... :)

    I was going to write something similar but it's hard to top that comment!

    1Reply
  • James Bell
    Investor · Tampa, CO · Member since 2009 · 52 posts · 21 votes
    14y

    I'm better off, I have a strong cash position and have been able to make some great deals because of the economic conditions. I also believe that most self motivated people are going to do well no matter what the conditions are. Some people get it, others *****, whine and will never quite get it. JMHO.

    2Reply
  • Dave M.
    Residential Landlord · Chicago, IL · Member since 2012 · 356 posts · 81 votes
    14y

    Personally I am not

    1Reply
  • Sharon Rolel
    Birmingham, AL · Member since 2009 · 60 posts · 7 votes
    14y

    I am, but I started investing 3 years ago, been hard to do badly...

    Also, am not an American and we didn't really feel the recession here.

    0Reply
  • Dale Osborn
    Mobile Home Investor · Spanaway, WA · Member since 2008 · 1k+ posts · 578 votes
    14y

    Things seem to improve more with age so will have to say that we are definitely better off than 4 years ago. It is a result of working our plan and not because of any one person sitting in a government office that waves a magic wand and all live happily ever after. If more people would take responsibility for their lives, then would only have one person to blame for any failures.

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  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    14y

    Yes I control my own destiny which is why I am having great results ! LOL

    I do not get too much into politics and the big picture too much.

    Dennis I understand your position.My mom a few years ago had a full knee replacement.The surgeon that operated on her is one of the best in my half of the United States.

    Medicare covered part of it and then her secondary insurance picked up the rest.She was one of the last patients with Medicare that this Doctor took.

    The reason he no longer was taking Medicare is not only were they going to start squeezing them on pay outs but the bigger issue was control of the patient care.

    For instance my mom has one of the best knees with no issues and full range.It's the same the professional athletes get for sports etc.

    The surgeon was telling us Medicare was fixing to dictate to them what brand and quality of knees they would have to surgically install in their patients.All because they want to buy cheap crap to make a buck and buy in bulk.

    The surgeon said he is not putting in junk knees from Medicare and then the patient sues him for revisions,infections,messed up internal parts that fail prematurely when the problem isn't the surgeon but being forced to use an inferior product.

    More policy thinking they know what is best but creating more problems than solving them.

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  • Mitch Kronowit
    SFR Investor · Orange County, CA · Member since 2009 · 1k+ posts · 1k+ votes
    14y

    I think I've been better off EVERY four years. If you can't go nearly half a decade without improving your lot in some manner, you're doing something wrong.

    2Reply
  • Account Closed
    Landlord · Seattle, WA · Member since 2010 · 3k+ posts · 1k+ votes
    14y

    Thanks to my real estate I do well regardless of who is in office and what they decide to do. It also helps that I'm self employed. My business continues to grow and I my real estate cash flow position continues to get better.

    1Reply
  • Doug Manuel
    Real Estate Investor · Calgary, Alberta · Member since 2011 · 1 post · 1 vote
    14y

    In the last 15 months I've grown leaps and bounds. Going from unemployed with no hope to becoming a successful real estate investor. So yes, things have certainly improved from 4 years ago.

    1Reply
  • Demos Loizides
    Real Estate Investor · Dale City, VA · Member since 2008 · 317 posts · 77 votes
    14y

    I'm better off, but not because of the current administration. I have my own business or businesses, which I did build myself.

    In April, 2008, I quit my job as a Bookkeeper/Office Administrator of a failing mortgage brokerage. I started my own QuickBooks (QBs) Consulting practice. Being my own boss also allowed me to work on wholesaling.

    As my QBs Consulting practice kept getting busier and my wholesaling wasn't going anywhere 2 years ago, I focused only on the QBs Consulting practice. Every year I earned more than the year before.

    Now that prices of homes are once again going up in Northern Virginia and the DC area, and homes are getting under contract in a matter of days, I started up my wholesaling again. I have a list of about 16 buyers and am working on getting homes under contract. I'm confident I can finally start earning money as a wholesaler as well as have my best year ever as a QBs Consultant.

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  • Mike McKinzie
    Investor · Westminster, CO · Member since 2009 · 1k+ posts · 1k+ votes
    14y

    This is a difficult question to answer. Four years ago I had both parents, today I have neither. Our Trust properties were worth $10,000,000 and today they are worth $5,000,000. (I wonder how JScott controls the VALUE of his real estate?). Luckily, rents have not dropped that much, so my income has not been hurt.

    On the other hand, I have been picking up properties at great prices, and this is where I agree with JScott, I am in control of what I buy and sell.

    My net worth is lower today than it was four years ago, but over all I am happy that I am adding units to my portfolio.

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  • Albert Hasson
    Investor · Paradise Valley, AZ · Member since 2012 · 361 posts · 214 votes
    14y

    Much better off. four years ago I had 3 upside down rental properties and my stock portfolio was a disaster.
    I have added 15 homes to my rental portfolio all of which cash flow like crazy, refinanced all 3 underwater properties via HARP 2 (combined $700/mo interest savings), and the stock market just hit multi year highs.
    As a physician my income has gone down a bit due entirely to the economy (fewer elective surgeries) but look forward to more insured patients with the Affordable Health Care Act.

    1Reply
  • J ScottPro Member
    Moderator
    Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
    14y
    Originally posted by Mike M:
    (I wonder how JScott controls the VALUE of his real estate?).

    I can't control the value of my real estate. In fact, there are a lot of things I can't control -- for example, I can't control natural disasters, I can't control other people, I can't control the government, I can't fully control contractors, I can't control my neighbors, etc.

    For everything I can't control, I do a risk analysis, and take appropriate steps to mitigate any situations with a large negative expected value. For example, because I can't control natural disasters, I ensure that I have appropriate insurance coverage for any remotely likely natural occurrence that may cause significant loss.

    In terms of not being able to control the value of my real estate, I try to mitigate that in several ways:

    1. For my flips, I'm very conservative in my analysis, so that if the market turns while I'm holding a property, I still have plenty of room before I lose any money;

    2. For my flips, I make any necessary trade-offs to ensure that my properties are held for the shortest period of time. For example, I'll rarely ever lose a day of work on a rehab, I'll list a bit below market for a quick contract and I'll provide incentives for my buyers to close quickly.

    3. For my rental properties, I'll never count on appreciation. In addition, I'm very conservative on how I determine market rent, so even if rents drop, I still have plenty of room before I'm cash-flow negative.

    4. For all my purchases, I ensure that I have multiple potential exit strategies, so that if values drop, I have other options besides selling.

    5. Lastly, I keep decent cash reserves, so that if I have to take a loss on a property or have to hold a cash-flow negative property, I can do so without much impact to the business.

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  • Account Closed
    Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
    14y
    Originally posted by Dave Meyer:
    Personally I am not

    Dave, sorry to hear this. :(

    Financially, yes. It took a series of right decisions to get here. One bad decision could have been a huge financial set back.

    Job wise, not sure how to respond to this. Have a daughter in this time period so that's fantastic. Don't have as much time to play tennis as before, but doing more push ups and weight lifting. Gained a couple of pounds in the last 4 years, but has a little more muscle too.

    I'm 4 years older, which is not a good thing, but I'm a little wiser now.

    I'm a big fan of Paul Ryan before I knew which party he belonged to. I don't listen much to politics anymore because I know who I would likely vote for. Romney is a better looking guy compared to Obama, and I think Ryan is cutter looking than Biden.

    Regardless of who wins, I want to be the one in control of my destiny so I have no one to blame but myself.

    Cheers.

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  • Rob K.
    Investor · Southeast, MI · Member since 2012 · 2k+ posts · 1k+ votes
    14y
    Originally posted by Minh L.:

    I don't listen much to politics anymore because I know who I would likely vote for. Romney is a better looking guy compared to Obama, and I think Ryan is cutter looking than Biden.

    I'm confused as to why their physical appearance would have anything to do with why you would or wouldn't vote for somebody?

    Were you torn in 2008 since John McCain is an ogre and Sarah Palin is a gilf?

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  • J ScottPro Member
    Moderator
    Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
    14y
    Originally posted by Rob K:

    I'm confused as to why their physical appearance would have anything to do with why you would or wouldn't vote for somebody?

    While for most people, it would likely be a more subtle or subconscious thing, preferring someone (voting for someone?) based on how good looking you perceive them to be is likely an innate response that is part of our DNA:

    http://www.economist.com/node/10311266

    Take a look around the executive hallways of big corporations -- in my experience, what you'll tend to find are taller, more good looking and physically fit men and well-proportioned and good looking women.

    I'm not saying it's right or wrong, but that's the way life seems to work...

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  • Dave M.
    Residential Landlord · Chicago, IL · Member since 2012 · 356 posts · 81 votes
    14y
    Originally posted by Minh L.:
    Originally posted by Dave Meyer:
    Personally I am not

    Dave, sorry to hear this. :(

    Thanks Minh - wouldn't say I'm substantially worse off either, probably just bitter that it seems my property taxes have gone up each of the last 4 years

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  • Michael Quarles
    Flipper/Rehabber · Bakersfield, CA · Member since 2008 · 3k+ posts · 3k+ votes
    14y

    @jscott

    Thanks..... now I'm going to looking at boobs and *** all week. "well-proportioned and good looking women."

    Is there a place to send thank you money for that visual.

    Enjoying my Sunday.

    1Reply
  • Bill Gulley
    Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    14y

    Much better off really, the down side was an opportunity! And as Mike said, cash remains constant and increased, with property values down, some of a hit to the net worth, but to realize that lower value you have to sell at a lower value. As Uncle Warren says, it's just on paper.... :)

    '

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