homer_simpson
Well-known member
I think I see Qwerty in the pic you just posted.
Johns Creek Homes and Real Estate
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NEW -> Contingent Buyer Assistance Program
$2,000 a month in passive income for each property, or a combination of properties?
irvinehomeowner
Well-known member
Eh... JC can't even do 3CG right... it's supposed to be 3CWG... not 3CLG.
panda
Well-known member
Med Price Appreciation
Suwanee $232,100 20.4% Y-o-Y - undervalued
Irvine $?692,200 22.3?% Y-o-Y - overvalued
It is no big deal for Irvine home prices to rise by 22% since last year since its Southern California, but for a small city in the south to appreciate 20.4%, that is a unheard of!... as something like this is unprecedented in the history of GA.
Do i think that Irvine can continue to sustain at 20% a year ? I have NO IDEA! but i do know that prices are grossing overpriced like Gold in April 2011... but can Suwanee sustain this appreciation growth? I think it is more likely, as I believe the homes in Suwanee are grossly undervalued still compared to Irvine.
Johns Creek is where you want to live... and Suwanee is where you want to invest in the coming decade.
I am a value investor, not a speculator.
"I would not buy gold even if it fall down to $800 as this asset class is pure speculation." - Warren Buffet.
Suwanee $232,100 20.4% Y-o-Y - undervalued
Irvine $?692,200 22.3?% Y-o-Y - overvalued
It is no big deal for Irvine home prices to rise by 22% since last year since its Southern California, but for a small city in the south to appreciate 20.4%, that is a unheard of!... as something like this is unprecedented in the history of GA.
Do i think that Irvine can continue to sustain at 20% a year ? I have NO IDEA! but i do know that prices are grossing overpriced like Gold in April 2011... but can Suwanee sustain this appreciation growth? I think it is more likely, as I believe the homes in Suwanee are grossly undervalued still compared to Irvine.
Johns Creek is where you want to live... and Suwanee is where you want to invest in the coming decade.
I am a value investor, not a speculator.
"I would not buy gold even if it fall down to $800 as this asset class is pure speculation." - Warren Buffet.
traceimage
New member
I thought it wasn't about money?
usctrojancpa
Well-known member
Whenever someone says it's not about the money, it's always about the money.traceimage said:
panda
Well-known member
http://www.fastcodesign.com/1665488...the-essence-of-the-porsche-driving-experience
Hey Trojan, your favorite car Porsche headquarters is coming to Atlanta :-*
What in the world is a 40 year old white single virgin doing in West Irvine? Brother, you need to get a CFO position at Porsche. West Irvine is no place for a single man. 8)
Hey Trojan, your favorite car Porsche headquarters is coming to Atlanta :-*
What in the world is a 40 year old white single virgin doing in West Irvine? Brother, you need to get a CFO position at Porsche. West Irvine is no place for a single man. 8)
usctrojancpa
Well-known member
But I'm not 40.Baby Irvine said:
usctrojancpa
Well-known member
I already lived in Vegas for about 2 years so I got it out of my system. Remember, the LA nightlife is only a short drive up the freeway. 8) I'm hoping to bump into a cute, single daughter of a FCB living in Boringville.SoCal said:
irvinehomeowner
Well-known member
No such thing as "short drive" to LA.
Leave USC alone... what happened to Princess Priscella anyways? I wonder if she's still in real estate.
Leave USC alone... what happened to Princess Priscella anyways? I wonder if she's still in real estate.
panda
Well-known member
My father bought me the book millionaire next door when I was junior in college. Dr Thomas Stanley is now a retired UGA business professor residing in Atlanta. one of my favorites authors and his books have been a guide to me in making my own big financial decisions.
I will type out some of the highlights i made in his most recent book (2009)
page 42:
The Money Pit:
When we make home buying choices, we look at several factors, mostly the carry costs of the home such as mortgage and taxes. I believe the greatest detriment to building wealth is our home/neighborhood environment. The type of home we live in and where we choose to live often takes the greatest toll on our financial wealth, and from it, all other perils flow.
page 43:
Contrary to popluar belief, however, most of the self made millionaires I have studied have one thing in common : They are able to build wealth precisely because they never lived in a home or neighborhood environment where their domestic overhead made it difficult for them to build wealth. In essence, they ran their households like a productive business. It is not only about how much your make (or generate sales) More important, it is how much you keep. And the ?keep? component begins and ends at your home address.
Buying an expensive home is a great way to fool people into thinking that you are wealthy. And it is likely that you will not feel out of place. Many people who live in pricey homes situated in tony neighborhoods are not millionaires. If you want to actually become rich one day, then enhance your chances by living in a modest home ? say, one valued at under $300,000. Most millionaires do not live in homes that have a market value of $1 million or more. About 90% live in homes valued under $1 million.
Page 46:
Once the market value begins to move up beyond the $500,000 level, wealth building productivity moves into unproductive range (i.e. less than 1.00). Buying a more expensive home is likely to decrease the odds of becoming financially independent. With the ?big house? strategy, not only would you face hefty mortgage payments. But ? also?. Property taxes, maintenance costs, HOA, insurance, and utlilties. Buying a bigger house isn?t an investment. Rather it is a lifestyle choice ? and it comes with a brutally large price tag.
To enhance your chances of becoming financially independent, you should live in a home and neighborhood environment that has high wealth-building productivity characteristics. You need to be surrounded by neighbors who have lower incomes than your household generates.
The millionaires profiled by Dr. Stanley who live in million dollar homes have an average net worth of $6.8M. For these penta-millionaires, you can see that only 15% of their net worth is the value of their home.
Page 8:
Since 1980, I have consitently found that most millionaires do not have all their wealth tied up in their stock portfolios of in their homes. When the investments gurus talk about diversification, they show how very parochial they are. Real safety is not in a diversified stock portfolio. One of the reasons that real millionaires are economically successful is that they think differently. Many a millionaire has told me that true diversity has much to do with controlling one's investments; NO ONE CAN CONTROL THE STOCK MARKET. But you can, for example, control your own business, real estate investments, private investments, and money you lend to private parties.
I find this to be interesting.......
Not at any time during the past 30 years have I found that the typical millionaire had more than 30% of his wealth invested in publicly traded stocks. More often it is in the low to mid 20 percent range. These percentages are consistent with those found in the studies conducted by the IRS, which has the best data set on millionaires in the world.
Above is the asset allocation of penta millionaires (assets valued at $5M or above) before the stock market crash 2007. In 2013, I believe the that the ideal asset allocation should be around 20% Marketable securities, 40% in privately held businesses, and 40% in real estate. I put the 80% as these assets in real estate and small businesses as these assets are more under your control and stock market is generally not under your control 100% of the time. Please also note that the asset allocation of equity in primary residence is only 11 - 13% which is consistent with Thomas Stanley's research. This is how small the percentage their primary residence is compared to their entire networth.
I will type out some of the highlights i made in his most recent book (2009)
page 42:
The Money Pit:
When we make home buying choices, we look at several factors, mostly the carry costs of the home such as mortgage and taxes. I believe the greatest detriment to building wealth is our home/neighborhood environment. The type of home we live in and where we choose to live often takes the greatest toll on our financial wealth, and from it, all other perils flow.
page 43:
Contrary to popluar belief, however, most of the self made millionaires I have studied have one thing in common : They are able to build wealth precisely because they never lived in a home or neighborhood environment where their domestic overhead made it difficult for them to build wealth. In essence, they ran their households like a productive business. It is not only about how much your make (or generate sales) More important, it is how much you keep. And the ?keep? component begins and ends at your home address.
Buying an expensive home is a great way to fool people into thinking that you are wealthy. And it is likely that you will not feel out of place. Many people who live in pricey homes situated in tony neighborhoods are not millionaires. If you want to actually become rich one day, then enhance your chances by living in a modest home ? say, one valued at under $300,000. Most millionaires do not live in homes that have a market value of $1 million or more. About 90% live in homes valued under $1 million.
Page 46:
Once the market value begins to move up beyond the $500,000 level, wealth building productivity moves into unproductive range (i.e. less than 1.00). Buying a more expensive home is likely to decrease the odds of becoming financially independent. With the ?big house? strategy, not only would you face hefty mortgage payments. But ? also?. Property taxes, maintenance costs, HOA, insurance, and utlilties. Buying a bigger house isn?t an investment. Rather it is a lifestyle choice ? and it comes with a brutally large price tag.
To enhance your chances of becoming financially independent, you should live in a home and neighborhood environment that has high wealth-building productivity characteristics. You need to be surrounded by neighbors who have lower incomes than your household generates.
The millionaires profiled by Dr. Stanley who live in million dollar homes have an average net worth of $6.8M. For these penta-millionaires, you can see that only 15% of their net worth is the value of their home.
Page 8:
Since 1980, I have consitently found that most millionaires do not have all their wealth tied up in their stock portfolios of in their homes. When the investments gurus talk about diversification, they show how very parochial they are. Real safety is not in a diversified stock portfolio. One of the reasons that real millionaires are economically successful is that they think differently. Many a millionaire has told me that true diversity has much to do with controlling one's investments; NO ONE CAN CONTROL THE STOCK MARKET. But you can, for example, control your own business, real estate investments, private investments, and money you lend to private parties.
I find this to be interesting.......
Not at any time during the past 30 years have I found that the typical millionaire had more than 30% of his wealth invested in publicly traded stocks. More often it is in the low to mid 20 percent range. These percentages are consistent with those found in the studies conducted by the IRS, which has the best data set on millionaires in the world.
Above is the asset allocation of penta millionaires (assets valued at $5M or above) before the stock market crash 2007. In 2013, I believe the that the ideal asset allocation should be around 20% Marketable securities, 40% in privately held businesses, and 40% in real estate. I put the 80% as these assets in real estate and small businesses as these assets are more under your control and stock market is generally not under your control 100% of the time. Please also note that the asset allocation of equity in primary residence is only 11 - 13% which is consistent with Thomas Stanley's research. This is how small the percentage their primary residence is compared to their entire networth.
panda
Well-known member
I know of someone who bought their first investment property at the age of 40 and after 25 years he has been able to build a portfolio of homes that generates $2,000 a month in passive income which equates to $240,000 a year at the age of 65. This is has been a long term goal and dream of mine in the future and I am not close of being there yet but do find it achieveable 
Step 1: is to identify an emerging real estate market
Step 2: is to buy one or two cash flowing investment properties per year
I will discuss how to identify an emerging real estate market in my next post and it has applied to my personal investment decisions.
Step 1: is to identify an emerging real estate market
Step 2: is to buy one or two cash flowing investment properties per year
I will discuss how to identify an emerging real estate market in my next post and it has applied to my personal investment decisions.
jamboreedude
New member
Baby Irvine said:I know of someone who bought their first investment property at the age of 40 and after 25 years he has been able to build a portfolio of homes that generates $2,000 a month in passive income which equates to $240,000 a year at the age of 65. This is has been a long term goal and dream of mine in the future and I am not close of being there yet but do find it achieveable
$2,000 a month in passive income for each property, or a combination of properties?
panda
Well-known member
For the person, I am talking about who has reached $20,000/month passive income, he owns 50 single family family homes in "B" and "C" neighborhoods. For me, I am trying to achieve the same numbers with a portfolio of 10-15 select SFRs in the "A" neighborhoods.
jamboreedude said:Baby Irvine said:I know of someone who bought their first investment property at the age of 40 and after 25 years he has been able to build a portfolio of homes that generates $2,000 a month in passive income which equates to $240,000 a year at the age of 65. This is has been a long term goal and dream of mine in the future and I am not close of being there yet but do find it achieveable
$2,000 a month in passive income for each property, or a combination of properties?
panda
Well-known member
To make the greatest amount of money from real estate in a relatively short period of time, you must understand the Path of Progress. This is where the greatest amount of building and development is taking place. If you had looked at a map of southern california 40 years ago, you would have seen that Los Angeles and San Diego were the two largest cities. Between these two giants were hundreds of smaller cities and towns, and millions of acres of farms, orange groves, and undeveloped land. The path of Progress indicates that soon there would be little bare land between these two great cities, 120 miles apart. Los Angeles and Long Beach moved south, and San Diego moved north. Huge fortunes were made by investors who followed this path of progress.
One man, Donald Bren, became a billionaire by buying up thousands of acres of bare land in a once sleepy agricultural county called Orange County. Orange County was smack dab in the middle of this Path of Progress, equidistant between Los Angeles and San Diego.There have been hundreds of other Path of Progress across the United States, though many are smaller and created only a few millionaires.
The Path of Progress is one of the key concepts I want you guys to understand and discover how to recognize where it is going, how to find its boundaries, and a method to determine how far it will reach. This how you will be able to target your real estate investing with strong accuracy.
One man, Donald Bren, became a billionaire by buying up thousands of acres of bare land in a once sleepy agricultural county called Orange County. Orange County was smack dab in the middle of this Path of Progress, equidistant between Los Angeles and San Diego.There have been hundreds of other Path of Progress across the United States, though many are smaller and created only a few millionaires.
The Path of Progress is one of the key concepts I want you guys to understand and discover how to recognize where it is going, how to find its boundaries, and a method to determine how far it will reach. This how you will be able to target your real estate investing with strong accuracy.