All Forum Posts by: James Krahula

@Bill Goodland this was my mindset going in. Long term we all have a really good idea of where things will go in both real estate and the market. I could easily buy a house tomorrow and have the market crash next week and I might be in the same situation as I was in the stock market and having to wait a few extra months or a year or 2 to claw back out of it. That doesn't scare me away in real estate so why should it in the stock market?

As promised, here is the spreedsheet that you can edit. I ask that everyone copy and make their own sheet so we can and leave the default page intact.

Editable Spreadsheet

Yeah again I'm just looking at the concept here. We aren't talking about doing this today, I want to look at this from a long term strategy and truthfully I'm starting to like the idea of it the more info I gather as something to look into doing in the future. Right now it looks like a good time to wait and see what the market does but I'm not talking about getting in today for the point of this discussion.

@Maykol Au can you share you're reason for going this route?

I'll make another spreadsheet that everyone can alter so that those that are better at Spreadsheets and calculating taxes and fees can play with it and give an even deeper look for us to study.

@Alex V. yeah if we can make this more accurate I'm all for whatever alterations need to be made, and I always want to calculate on the conservative side.

Awesome insights, this has been very very cool. The goal is long term investing, I'm not looking at this strategy for the next 5 years, I'm looking at this for the next 30 years. Long term, does this strategy play out, or because you and taking money out every few months does this increase risk, or does it lessen risk. I don't think there is a right answer to this, but I don't think it is as bad of a strategy after looking at the numbers as our gut tells us.

Stock Market vs Savings Accounts Spreadsheet

Alright, I did the math, please let me know if you see any mistakes. I grabbed the historic monthly returns for the S&P 500 from 1990 and ran them against a savings account of 2% and a savings account of 5%. In this scenario we will also be investing $1000 each month. You will see links to all sheets at the bottom. Here are the scenarios for each sheet.

Control: We will invest $1000 each month and calculate the monthly returns.

House: The Control Sheet plus every time we reach $25,000 we will take that money out and purchase a house.

House+CF: The House Sheet plus we will include cash flow by adding $100 to our monthly investment for each house we buy.

2007House+CF: The House+CF Sheet but we started investing in 2007 so the Great Recession hits before we can purchase our first home.

Green helps identify when a house purchase was made, and at the bottom you can see how many houses were purchased.

So please, double check my math, point out any flaws you can find, and let me know what you think after looking at the numbers!

@Bill F. let's just use the S&P 500 as our stock investing example.

Or, one more way to look at it. What if I'm a person who invests in the stock market. Would you suggest taking my money out of stocks to then invest in real estate?