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by cfitz
3379 days ago
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I am in a similar place but - very gratefully - at an earlier point in my life. For a young person looking to funnel "tech profits" into real estate, what educational resources do you recommend (if any) for mastering this field? The tangibility of real estate and the ability to get your hands dirty with property improvements engages me in a way that software cannot. |
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They are pretty honest about things, but I feel like there's kind of a similarity with their messaging and the passive income/get rich quick world, although they will definitely tell you it's a get rich slow method, but it sometimes has that kind of feel to me.
But they cater to a lot of newbies. I come from a different perspective because my father was a landlord of a decent number of properties and I grew up in it.
I would say the biggest predictor of success is going into the right market and finding a good deal. Your profit or loss is determined by the deal you make.
There are a lot of people that buy houses far away from themselves and get property managers to operate for them for a fee. I personally would never buy a lot of properties far away from my home, and I feel like a lot of the people that do, do it from a kind of Dunning-Kruger false confidence, or maybe just a way lower anxiety level about what could go wrong than me.
You want to walk the property, you want to keep an eye on things, you want to make sure things are taken care of because you have a lot of liability as a landlord, and that's why I would only buy fairly close to where I lived.
Also at the level of buying and renting single family homes, duplexes, triplexes and so on, if you start paying contractors to do work every time something breaks it's going to eat into profit margins or possibly destroy them, at least until you've owned the property for a long time and rents have risen.
At that level of investing your profits are going to come from the work you put in yourself, or the price appreciation of a rising market over the long term. It's different if you can do bigger deals, larger buildings with more units.
If people are interested I might start blogging about real estate investing for developers.