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Post by smsmith on Feb 28, 2017 9:20:25 GMT -6
Many millennials also want to live in urban areas with good public transportation so they don't need to own a car. A guy could own rental property in such an area, but then you'd need to live there too...or pay a management company to take care of your property(ies) for you...which makes owning such a property less profitable.
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Post by badbrad on Feb 28, 2017 9:21:27 GMT -6
Many millennials also want to live in urban areas with good public transportation so they don't need to own a car. A guy could own rental property in such an area, but then you'd need to live there too...or pay a management company to take care of your property(ies) for you...which makes owning such a property less profitable.
Valid point Stu.
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Post by badbrad on Feb 28, 2017 9:27:16 GMT -6
So let me pose this question. If you have a large chunk of cash and want to somehow use that cash as supplemental income to retire sooner. What is the best way?
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Post by smsmith on Feb 28, 2017 9:28:35 GMT -6
There's nothing like a few phone calls at 2 a.m. to come fix some stupid little thing to make you question why you're a landlord.
My first renters replaced a burnt out bulb in a light fixture and when it didn't work they called me to tell me the fixture was toast. I went over, asked if they had another bulb..they said ya..put it in...voila...didn't need to replace the fixture after all
As a general rule, renters don't know shit about owning and taking care of a property. Since that's generally true, they don't have a clue what value that property has...and they aren't super conscious about treating a property with the respect an owner would.
IMHO - the best landlord gig going is owning campus rentals. I knew a guy who owned a number of houses on the UW campus. He made a LOT of money and put next to nothing back into the units. He didn't have to because the college kids had no intention of treating them well and didn't want a landlord enforcing all kinds of "rules".
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Post by Bwoods11 on Feb 28, 2017 9:38:44 GMT -6
So let me pose this question. If you have a large chunk of cash and want to somehow use that cash as supplemental income to retire sooner. What is the best way? Tough question! It really depends on your area of expertise or what fits for you. Personally, I like to buy farms with income. I look to buy farms that are undervalued and can be improved and then sold? I do not always sell them, but I want that option if needed. There is risk to this strategy, I know, values could drop, interest rates could jump. Duplexes, Triplexes, all options, but for not me, I am not "handy" so I would have to hire most fixes, that is why I stick with land.
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Post by Freeborn on Feb 28, 2017 9:50:10 GMT -6
So let me pose this question. If you have a large chunk of cash and want to somehow use that cash as supplemental income to retire sooner. What is the best way? Tough question! It really depends on your area of expertise or what fits for you. Personally, I like to buy farms with income. I look to buy farms that are undervalued and can be improved and then sold? I do not always sell them, but I want that option if needed. There is risk to this strategy, I know, values could drop, interest rates could jump. Duplexes, Triplexes, all options, but for not me, I am not "handy" so I would have to hire most fixes, that is why I stick with land. In that situation would it make sense to find overgrown pasture with some woodland with very good soils and clear it for farming? The thought is you could purchase the land at a lower value and convert it to higher valued land by making it efficient to farm. Hunting would not be good but the land rent might be?
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Post by Bwoods11 on Feb 28, 2017 10:05:52 GMT -6
Freeborn--As far as buying pasture and clearing it for farm land, yes I do think that is something that could improve a farm, and make it more valuable. The farm I own in Iowa, was at one time all pasture, now it has 108 tillable with most of it good soils and 18 CRP. The hunting is great too.
Minnesota could provide a situation like this, a guy could buy a undervalued wooded parcel, log some of it, add food plots put up a blind or two and market it has a hunting property, maybe even add a cabin. Is the market for rec land good, depends on the county and area, some areas are still pretty good, others not so much.
Right now, we cannot find enough homes in the country to meet demand. There are literally dozens of people looking for a house with a shed, and 5-40 acres. It is not a trend that I see will continue. Everyone has stuff--boats, RV, ATV, fish houses, and they want to have a shed for it, and some room to move. Therefore, if you ever see a reasonably priced building site with old house on it, that can be fixed up, that would be a potential flip...(depends on your location)!!
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Post by MoBuckChaser on Feb 28, 2017 10:06:35 GMT -6
I switched from my renting out houses and apartments in a quick hurry a long time ago when In MN you lose the homestead tax credit at the time. If I had to do it over again I would take chunks of money and buy things to resell. Whether that be land or equipment, I guess that is what did do. It worked out well for me so far.
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Post by Foggy on Feb 28, 2017 10:09:22 GMT -6
So let me pose this question. If you have a large chunk of cash and want to somehow use that cash as supplemental income to retire sooner. What is the best way? ^ This is the 64 Million Dollar Question today. How to invest for INCOME. Not easy these days without risking your principal. Every investor out there is looking for a good income producing investment. Many are looking at 2 and 3% returns. Not easy to find good current income these days. I have one really good income producing investment right now and the rest are just limping along. I do own a private held "MLP fund" (Master Limited Partnership) that has outsized returns on oil and gas commodities that are "in transit". That fund has really juiced my returns- until oil prices fell. Then it lost a bit back.....but now its back on track. Seems they have a near foolproof plan. I doubled my money in 4 years and now hold the investment on my gains....and have deployed the earned income into other things. (I should say my financial planner has done this). The thing is......its a private placement......meaning you gotta hold investments with a big firm to get a chance to buy it. ......and it's a place to hold perhaps 10% of your portfolio.
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Post by MoBuckChaser on Feb 28, 2017 10:10:54 GMT -6
So let me pose this question. If you have a large chunk of cash and want to somehow use that cash as supplemental income to retire sooner. What is the best way? ^ This is the 64 Million Dollar Question today. How to invest for INCOME. Not easy these days without risking your principal. Every investor out there is looking for a good income producing investment. Many are looking at 2 and 3% returns. Not easy to find good current income these days. I have one really good income producing investment right now and the rest are just limping along. I do own a private held "MLP fund" (Master Limited Partnership) that has outsized returns on oil and gas commodities that are "in transit". That fund has really juiced my returns- until oil prices fell. Then it lost a bit back.....but now its back on track. Seems they have a near foolproof plan. I doubled my money in 4 years and now hold the investment on my gains....and have deployed the earned income into other things. (I should say my financial planner has done this). The thing is......its a private placement......meaning you gotta hold investments with a big firm to get a chance to buy it. Takes capitol to do that tom
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Post by Foggy on Feb 28, 2017 10:13:20 GMT -6
^ This is the 64 Million Dollar Question today. How to invest for INCOME. Not easy these days without risking your principal. Every investor out there is looking for a good income producing investment. Many are looking at 2 and 3% returns. Not easy to find good current income these days. I have one really good income producing investment right now and the rest are just limping along. I do own a private held "MLP fund" (Master Limited Partnership) that has outsized returns on oil and gas commodities that are "in transit". That fund has really juiced my returns- until oil prices fell. Then it lost a bit back.....but now its back on track. Seems they have a near foolproof plan. I doubled my money in 4 years and now hold the investment on my gains....and have deployed the earned income into other things. (I should say my financial planner has done this). The thing is......its a private placement......meaning you gotta hold investments with a big firm to get a chance to buy it. Takes capitol to do that tom Yep.....but that is what he asked about.
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Post by Foggy on Feb 28, 2017 10:22:34 GMT -6
I have owned some commercial buildings at times. And have both rented and sold those buildings. I did so under a "triple net lease" where the lessee will pay the maintenance, taxes, insurance and my rental fees. And they are held contractually to keep up the property.
My last biz building was rented this way for about 7 years and now I have it sold under a ten year contract for deed with about 5 years remaining utntil the balloon has to be paid. I have not even seen the property in the last two years. I get a check every month....and never an issue. They have paid over half the value of the property to me on the CFD.....and my biggest hope would be that they default (which they won't). When I sold them the building I did so with the agreement that I wanted to hold the mortgage as there were no good interest investments to be had. I get 5% on the contract. Not great.....but it beat the banks at .25 % at the time.
The good thing about commercial property is that you are not working with riff-raff and don't have to worry about the small stuff.
Still.....it takes money to make money. Not easy for anyone.
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Post by MoBuckChaser on Feb 28, 2017 10:22:50 GMT -6
Owning MLP's can be good. But you may need a Wall Street sized accounting firm to do your taxes if you buy into the wrong one. Some may require you to file tax returns in other states for one thing.
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Post by badbrad on Feb 28, 2017 10:28:05 GMT -6
Well say you take 500,000 and want to invest it. If you make 3% that is 15,000 a year. Not enough to live off but its something.
But things can go sour on that too depending on what you invest in. There are so many options and a whole lot of bad ideas. Its a hard thing to swim through and figure out what is the best way to go.
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Post by MoBuckChaser on Feb 28, 2017 10:30:27 GMT -6
Foggy, is there a whole different set of tax forms for MLP's over and above what would considered normal? Any idea how complicated it is keeping away from being over taxed or double taxed on those things?
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