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There are winners and losers among us. Not all trust fund babies are lazy and couch surfers. Some are smart and self-driven while others just want to coast through life. That’s what makes us a society. Money will transfer from the lazy to the productive. Time will be sure it happens.
Eman you mentioned some stuff about loan advice from federal reserve friend. Can you share any of that advice please? Like loan terms, types? Im looking at commercial land and properties lately too, just not in CA.
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Now, my biz partner and I own just shy of 100 units here in San Jose. A couple buildings are co-owned with investors….mainly immediate friends and family. My share of ownership is 40% with about 45% LTV.
To put things in perspective on how wealth is built, Bay Area real estate tends to double in value every 15 years. If history is any guidance, a $40M real estate portfolio should appreciate $40M in the next 15 years, not including principal pay down, cash flow and rent growth over these years. If nothing more is done other than just maintain the assets, they should worth $160M, free and clear, in 30 years.
As a former engineer, when I analyzed Bay Area real estate back in 2009, I realized it was an opportunity once in a lifetime so I quit my W2 and gave it a try. I cashed out my IRA over 4 years, 2009-2012, paid the penalty, used the proceeds and bought whatever real estate I could get my hands on at a discount. I used the BRRRR approach to acquire more properties during these years. Fortunately, it has worked out.
Looking back, I’m so happy I took the plunge. If anyone saw a potential opportunity in their life, I’d say go for it. We only live once. If you don’t make it, you’ll be wiser. If you made it, you’d be glad you did so would your spouse and future generation(s).
Best of luck and cheers!