Are Your Pockets Deep Enough?

"You guys talk about having deep pockets for real investment. How do we know if the pocket is deep enough?"

Bring confidence to your wealth building with simplified strategies from The Money Guy. Learn how to apply financial tactics that go beyond common sense and help you reach your money goals faster. Make your assets do the heavy lifting so you can quit worrying and start living a more fulfilled life.

[mrdomino]

I hate rentals. Had such a bad experience with tenants. Never again! Easier to invest into stocks.

[anniealexander]

I ask myself if I can make the payments if my tenants don't. I also asked myself if I can afford to replace the heat and air units and plumbing. If the answer is yes, then I know I'm good.

What I'm seeing is people buying homes that barely cash flow. Some are older homes and they aren't taking repairs until consideration. Plus the area is saturated with rentals.

I would be very careful investing in real estate with what's coming in 2025. I would wait and see if mass deportation and tariffs happen.

[williambennington-w]

Investing in stocks is planting a tree for your future; with patience, it will bear fruit

[DrewSkeei]

Literally going through this right now.
I’m a veteran mix utilized my VA loan and bought a new property, moved after 3 years and bought another with hopes to rent out the first.
Welp, the first has been vacant for 3/4 months with everything I can do to get it to rent. I’ve switched rental property companies twice, reduced rent dramatically, half off first months rent, referral fee for finding a qualified renter. Thankfully I am living below my means in all other areas and I’m able to afford both mortgages, but yeah I’m at the crossroad of selling it and holding on a bit longer.
It’s on a dual listing currently and I’m kinda hoping to just sell it and cut my losses and stick to maxing out my retirement accounts and getting my qualify of life back.

[jakelannetti]

Definitely more risk but so much more reward. It’s a lot more work than just parking your money in an index and you gotta be able to weather the storms, but the gain is enormous when you essentially have tenants buying you properties over time.

[sasukesuite]

I live my whole life as a doo doo plan. I’ve been at a job I don’t qualify for on paper for the past 3 years, saving half of my $200k salary. Everybody is like “why don’t you buy a house, you make more than enough, ” but just today I was told that if I don’t finish my master’s degree, I’d be let go, and my salary would easily be cut in half. Then I could’t afford the house anymore. But since I have $100k cash and no debt, if I don’t finish I have no concerns.

If you always assume the worst and plan for it, you’ll never be forced to do anything you don’t want to do.

[NormanOkada]

I loved this video! I have military clients who come to me all the time and they purchase a home in San Diego @$800K with no money down using a VA Loan guarantee. I this is the first thing I ask them, do they have emergency savings, what percentage are they putting into their TSP, have they done a PITO calculator and do they have a sunk fund if they are going to be a landlord.

[WealthyChronicle]

It’s crazy how people get into real estate thinking it’s all smooth sailing, then reality hits. 💡 You really need those deep pockets to survive the storm! 💸

[mzqpal]

Great topic. I just don’t like the way it’s started when it’s mention real estate looks good in the brochure. There’s a big amount of risk that should be visible in the brochure. If it’s not listed in the “brochure” then you are reading the wrong thing and that ultimately falls on you for being misinformed and even worst getting into a financial position with misinformation leading to a bunch of hiccups that weren’t even anticipated before.

You can say the same thing with stocks. On the “brochure” looks like a simple and safe money building process but if you invest in bad stocks or too risky stocks your “brochure” would be a big lie.

Dont talk to ppl assuming things are on their “brochures”. Instead state things to help build an all encompassing or at least as much as reasonably possible brochure.

[richardhudson]

Real Estate provides cashflow, tax benefits, equity building, competitive risk-adjusted returns, and inflation protection on its own. Whether you invest in physical properties or REITs, real estate may help you diversify your portfolio and reduce volatility. Dividends are what got me into investing in REITs, great way to secure the accumulate wealth, I hold AMT, CCI & PSA. $290k in profits made in 2022.

[xmochix]

I could invest in RE easily here on the west coast, in a hcola, but i refused. I'll stick to stocks and sleep in peace. If the market is down, I continue to buy. easy for me!

[flora-yk]

<<<<Your explanations are clear and straight forward It's always a honor to have you here as a mentor, I appreciate you for the time being spent to educate us financially. Regardless of how bad it gets the economy, I still makeover $28K every single week. I truly value Bianca, and her helpful guides.>>>>

[kendarcie]

I have A LOT more cash if I don't pay a CFP 1 to 2% from my portfolio yearly