All Forum Posts by: Mike Jordan

I have one friend, who invested in construction excavators for 10 years, he put all his cash and family cash in excavator during this period, he was gaining big ROI around 30%.

Unfortunately, after this period finished, the excavators industry collapsed during the last 5 years till this, and his asset now evaluated by 80% less, because there is a lack of demand and huge supply.

This could happen to any sector/asset, any assets have a good time and bad time, real estate, fortunately,it is less volatile/risky than construction service, but that does not mean it is risk-free, this is why economists support diversify in different sectors. 

 Thank you, I agree, fear is a big emotional challenge, but fear is something and cautious is something else

Successful companies do not diversify their income, such as; apple, their major income generated by technology and i phone. Google is the same, their income mainly generated by advertisement.

If these big companies do not diversify? why i should diversify? and why

My income now is divided as per the following: 30% of my income generated from daily work (9 to 5) as typical white-collar, and 70% of my income is from real estate rental, i am afraid that real estate will collapse enormously. Should I diversify and generate other side business (side hustle)  or stocks? the problems that the yield of stocks or side hustle is less than 7%, but the real estate investment could generate to be between 12 and 20%. 

Another problem I don't have experience with side hustle or stocks, I have better experience in real estate, at the same time, all economists advocate strongly to diversify the assets. 

What is your recommendation to solve this dilemma?

Yes, it is not my first language, and sorry for grammar and vocabulary. I have noticed them after I wrote the topic.

Any way, Karl Marx stressed that real estate owner always win. That is it

Lol, do you think really  that I want to sell books? 

Marx has pointed out several times, that history always shows  assests owners get much more money in extreme way, than the workers who works in the assest ( real estate), this is always the case. 

I know Marx don't have much fans in the usa,and I am also don't support many of his ideas, but this fundamental examples is worth to be stressed.

I have not seen someone mentioned this in any proadcast ( I have listen almost to most of the proadcast

1 Poor Dad , rich dad

Good book, advocate to buy assest and stay away from liability

2 richest man in Babylon

Good book, advocate you for saving and learning 

3 The 4-Hour Workweek:

I didn't like it, it has nothing to do with real estate, this book advise to outsource everything and one is not involved in his business

4 The Millionaire Real Estate Investor

It is a good book, offer recommendation how to initiate real estate investment

5 Long‑Distance Real Estate Investing:

In general it is good book

6 The 10X Rule: The Only Difference Between Success and Failure

I didn't read it,but the way I understand from this you have to minimize social life and focus on work, so it is not something new

Currently, I am reviewing and analysing all the deals , I found many excellent opportunities. Unfortunately, I don't have cash.

If you go to bank or any lender, the loans will eat my profit and salary. Besides, loans from relatives will generate headache and problems in the long run( in case they have the cash). Mr Cardone who is real estate guru take the cash 98% from friend and relatives, just 2% from others.

There is an important point which no one pointed out in this fourm, which assest diversity, it is so dangerous to put all the cash on one industry like real estate, because like any industry, there is good and bad time. In nutshell, assest diversity is the solution ( don't put all the eggs in one basket). Do put your cash on other assest. ( e.g shares)

one more thing, allocating money from others require good networking, marketing skills which i need to develop in the time being, besides in my current area which i already invested in, there is over-supply. Hence, i have to look to other areas far away which means, I need time to study this area and allocating good team.etc