Dentaltown April 2024 - 24

MESSAGE BOARD 2
People often misunderstand the amount of time
and money required for real estate, as opposed to
something like index funds, which take no time and
have tiny fees. I felt the same way about bitcoin-
once I heard about it, it was too late to get in early. n
drjuicy
Post: 11 of 49
3/22/2023
I've been really happy with owning real estate.
fliegenfischen
Post: 7 of 49
1/3/2023
I think when you are younger and/or ready to
invest significantly, you should decide your path in
life. I have friends who are doing very well with real
estate. They have minimal index funds, etc., and buy
houses, rent them, pull out equity and repeat. I have
friends who say forget real estate, forget stocks and
funds, and buy offices. I have friends who say forget
real estate and only buy stocks and funds. All three
types of friends are doing well. I don't know how well
they're all doing, but they all appear to be doing well.
The point is that you know yourself. Pick a path in
life and go for it. If you get really good at one path,
then diversify into another path. n
My wife and I are more inclined to purchase one
thing, pay it down and then look for another. From
owning both, I'd stick more to commercial that is
triple-net. Someone else pays the taxes and easier to
cost-segregate, IMO.
What hasn't been mentioned is purchasing land.
The best return I will see is land I purchased in 2017.
I think I could get 10x for it now-hopefully 15x as
growth occurs. It's a long-play game, though, and
does take a little luck in finding the right area with
the right price and growth potential. I agree with
the above-I'm not looking at cash flow but more at
acquiring assets.
There are also ways you can set up MSO/C-corps
that allow you to pay debt down at a lower rate than
if held personally. It takes some legwork, but there
are ways to do it. n
drtdmd
Post: 16 of 49
Buy real estate and wait. n
DentalDaddy1984
Post: 8 of 49
3/21/2023
1. Stocks, on average over long haul, are going to
return more.
2. The benefit of real estate is leverage. That's how
the money is made.
I make this point because I hear of guys buying in
cash, and I don't understand why. n
chrisburtondds
Post: 18 of 49
3/22/2023
Leverage is great if you can get low-rate, fixed
wdhenry
Post: 10 of 49
3/22/2023
Different ways to do real estate if you want to
do it. You have to buy well, especially in today's
higher-interest-rate environment. My goal with my
rentals has been not to have heavy cash flow from
them now, but to build an asset that cash-flows and
pays for itself and then have it paid off by retirement,
when I can either sell it or then use the cash flow
in retirement. n
long-term debt. I wouldn't call what we have a low
rate. Interest rates for rental property are in the 7%
range, give or take. In an environment like this, it's
common to have better cash flow returns from property
purchased for cash, because of higher interest
rates. The way leverage can amplify returns is if you
have the good fortune to have good appreciation
during the years you own the property. That seems
less likely in the current environment than in most
periods. I say this as someone with rental real estate.
I'm happy I purchased when I did, but I'd be hesitant
to purchase right now unless I had a significantly
below-market deal. n
3/22/2023
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Dentaltown April 2024

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