Originally Posted by
Forgotmyhat
Three words: Commercial Real Estate
It’s a business, it takes some work and effort. It’s not passive income. BUT…it certainly doesn’t have to be a full time job. A couple hours a week. The benefits are all the things Gunfighter says. It really is amazing…if you do your due diligence.
I had zero experience in real estate investing. Four years ago while I was not getting used on reserve, I was bored and started watching YouTube videos on commercial real estate investing. I had about $70k to invest. Four years later I own an office building worth $1.2M. This is after just one generation of the process (see Gunfighter’s comments). And it wasn’t that I got lucky, I bought an office building 4 months before Covid! The first year was dicey. But I did my due diligence and am happy with the results. I just put the property back on the market this week. I expect to net close to 7 times my original investment in just 3-4 years. And if the property doesn’t sell right away, it’s cash flowing $5k a month (that’s cash in my pocket before taxes). YMMV, but it really is incredible to see how it works. I would encourage everyone to at least read a book or watch a video about the basics.
Very happy for you! Genuinely curious about your specifics because it sounds too good to be true:
You paid $70k for an office building and 4 years later it’s worth $1.2M?
Or you used $70k as a down payment and the bank still owns it?
Is that $5k/mo gross before expenses?
Or do you have to subtract out loan payment, property tax, utilities, repairs? How much per month is property tax and utilities?
Who pays for when the roof leaks or air conditioning breaks? You or tenant?