All Forum Posts by: Ryan Daulton

@Nicholas L.

Pittsburg probably not the best location for rentals or flips. It is a pretty good market for originating owner financed notes. Lots of deals to be found at tax sales.

@Ryan Daulton

slightly different perspective here.

you're both right.

look, I'm on Biggerpockets because I'm a real estate investor.  And I plan to continue to invest.  I'm finishing up a light rehab now; I'm selling a property that didn't work out the way that I thought it would; and I'm trying to qualify an off market lead I've been working for over a year.

But with that said - it actually IS a challenging time to invest, with rates and prices high; low inventory; tremendous competition for deals both on and off market; contractors booked up; and more.

everything you listed as their objections are VALID.  so the question for you is, how will you address them?

just because you buy a property does not mean you will be successful.

here are some good threads to read:

https://www.biggerpockets.com/forums/12/topics/1171104-the-m...

https://www.biggerpockets.com/forums/48/topics/1159104-overl...

last question - can you house hack?  If you can house hack, house hack.

@Bruce Lynn, It's even better for @Ryan Daulton than he thinks.  Because he'll live in part of the MF he will get the profit associcated with that unit tax free up to $250K or $500K if married.  On the other units he will 1031.  So he will get some of the profit tax free.  And the rest of the profit will be tax deferred.  You can't do that with a T-bill.

Ryan, everything your relative said could very well be true.  But that doesn't mean that everyone of those things has to be true.  Mostly he's interjecting opinion about an industry he doesn't know intimately.  But Do Not Ignore him!!!!!  Instead use everything he said as a laundry list for you to source and underwrite your deals.They are all true at some point.  But they are also opinions at this point.  And they can all be avoided.  

The two groups of people that have always ruled the world are Banks and Land owners.  He's a bank.  You're choosing to be a land owner.  Go for it.

Don't take financial advice from broke cousins.

Don't let them kill your dreams, because they don't have any.

I would go to far as to say, don't ever talk finances with that cousin again.  Don't tell him of your plans, don't tell him about your investments, don't ask him about his.  Not the right person to support you.

Disadvantages1-2-3-4-5-6-7 all true and possible, this smells like opportunity, probably more risks than that....and property is more work than T-bills.

Advantages....1 is possible....not sure I understand 2....no cash flow from your side if you have vacancy.  1031 defers taxes not eliminate it, but there are ways perhaps, for example if you get big enough and 1031 into QOZ you have the poential to eliminate 100% of the capitol gains taxes.

#4 you forgot about leverage....for the most part you can't leverage T-bills, maybe 50% on ETFs.  ETFs can fall to zero...or even lose 20-30% in a day.  People can and do lose money in ETFs, go back and find the paragraph about the average investor loss in Fidelity Magellen fund back during Peter Lynch tenure.  I forgot the numbers, but fund went up like crazy, but avg investor tried to time the market and lost money.  Buying at the highs, selling at the lows.

Ask relators and investors in the Abilene area if prices have gone up or down in 2023-2024 or if they wish they had more money to buy more homes in the 1970s, 1980s, 1990s, 2000s, or whatever decade.  I've never met a long term real estate investor who wished they had bought less property.

If you invest $100,000 in T-bills this year at 5% in a year your return is 5000.

If you invest $20,000 to buy $100,000 of real estate and it goes up 5% your return on the $20,000 is 25%, not including the rent, the depreciation, the tax advantage, the ability to defer taxes, and your tenant paid down $1000-$1500 of your mortgage....these are the bare basics.

My advice is don't give it a second thought. I don't talk to family, or friends or co-workers about what to invest in, not invest in, or what I invest in. I look at exchanges of ideas only on here.

Between us, best is to have some money in both especially when interest rates are high. All the best!