Steve Alad, Texas, Steve discussed on The Ray Lucia Show

Automatic TRANSCRIPT

Oh back votes. I can't help. But sing. Steve alad in house. Hey there Steve using Elvis. I don't saying, okay, we'll go. It'd be office or anything else. We're talking about real estate today. This is our real estate day of the week. And as most of you know, anybody that's ever attendant. Nate my lectures, or seminars or anything like that. No that I'm a huge fan of having real estate stocks annuities and other alternative investments as part of a portfolio for the mere reason that I talked about in our very first segment, which is the fact that not everything is going to go down at the same time. And therefore if you diversify you will always have something that's kinda doing. Okay. And that keeps you in the game causes you to lose less real estate happens to be one of those investments that unlike the stock market gets most of its return from the yield or the dividend or the income. So picture it this way. Think of the stock market growing. Let's call it. Eight percent per year. Two percent of which is dividend. Six percent is from appreciation. Now picture real estate flipping that on its head the same eight percent or so return six percent coming from dividend or yield and two percent coming from the appreciation usually based on the rate of inflation. So those two asset classes perform at near the same levels on a gross basis. If you look over a twenty or thirty year time period, but they get their differently. And that's the point. And why I think everyone should have some kind of real estate in their portfolio. Now, you could choose to own real estate in the form of a paper asset that is to say stock. That's a repeat there are also non tradable ways to own. Reits or you can own direct owned property like a house that you rent out and so forth. And Steve I'm doing as you well know because we've talked about it some due diligence myself because so many people have come to me. And so I want to own my own piece of real estate, but I live in San Francisco or Seattle are some super expensive place where there's no way they're getting a positive cash flow unless they put sixty seventy percent down. There are other places perhaps in Arizona, Texas, and so forth. And I'm looking at to see if we can't come up with a solution. And in Texas, I'm actually working with a developer right now. I won't have anything to report on. I'm not in the real estate business. I don't sell any of this stuff. But I am interested in you. And I have talked about the financing aspects of that financing. Is critical especially if you're buying an investment property, but absolutely. And with investment properties. Kias and we've talked about it is you have to do your own due diligence. What you wanna buy where you wanna buy you want to find out if you're looking at a specific type of property, whether it'd be a single family condo number wide. What kind of rants can you get? And then that way you can back in in talking to a mortgage professional to find out number one. What you need to get in on an investment property. Purchase your way better off with twenty five percent down versus twenty percent down. You can do it with twenty percent down. But your interest rate will be significantly higher. Compounds itself if you're.

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