Ken, you don't need to do this, you're a wealthy man and can use your valuable time doing something else. So on behalf of the entire RU-vid community, THANK YOU.
I think Ken is great but some tenants stopped paying rent a year ago. Maybe no big deal to a big time landlord but they can easily do tens of thousands in damages and landlords will never collect a dime. Ken is smart and making money where he can. Pivot 🤔
we should consider diversification of our portfolio to avoid complete exposure of one particular asset and to help reduce the volatility of our portfolio over time
Ken, you're such a great speaker. Relatable and very informative, especially for those of us who are newer to real estate. Your insight and content is appreciated!
THANK YOU Ken for taking your valuable time to teach us. Love the way you dissect each topic and make it easy for someone below average person like me to understand clearly.
I bought third duplex Sept last year. And I've been dumping my side money in market. Glad I did these things with how this stuff is all playing out and your video helps reaffirm my positions. Thanks!
Interest rates go up to quell hyper inflation which caused stagflation in the 70s, 80s. Look at historic interest rate charts from eras with high inflation i.e. 1980's. Look at RE values when rates go up. We don't know yet what RE will look like when the moratorium is up. Foreclosures will flood the market.
Even though I was around 10 or less. I remember living through hyper inflation 90s in Russia. My grandfather was saving for a car for like over 10 years and he lost all of it.
Hi ken, what I think makes you video unique from other investment videos is how you always show your sources and let us know where we can find it. Really educational and helps those who wants to prove more into certain information.
Wow, wonderful show thank you, yet I’m curious Jim Rickards said that we might be going into deflationary times, in the coming months, as well as a depression, what are your thoughts?
Very practicle and very informative video......an interesting point to bring up....is as inflation increases......how do real estate prices and rents increase....I am a real estate investor myself......but not someone old enough to own real estate from the 1970's....but according to people from the 1970's who I have spoken with......the value of property and the rents go up as a percentage of inflation.....so if there is 10 % inflation.....values might go up 5% and rents might go up 5% .....but it eventually catches up.........so if before inflation the building is making 50,000 on a 1 million dollar building.........eventually the rents will go up to 10% of whatever the building value might go to......so if the building gets to be valued at 2 million.....the building eventually will be producing a cash flow of 200,000........thus another angle of the power of inflation.....but delayed ...since rents and values do not ( from what I was told) go up 1 for 1 with inflation....
In my opinion if we have inflation owning real things real estate, gold, commodities etc is advisable...but the biggest worry has to be if no one has a job & subsequently money..renting could be problematic..until UBI introduced to keep people in homes...have a chunk of cash in reserve to cover 👍
If you can hang on to your real estate long enough you'll reap the benefits. And, buy in a great location, meaning a metropolitan area where there are always jobs (Los Angeles, San Francisco...). A tiny shack in Burbank sells for a million today, and 20 years ago you could've gotten it for $300k. If you hsve renter's in there the whole time, just think If it.
Thats why you try and find properties under market value which gives a buffer from the start. If you buy above market value then you have to wait longer for the rewards Like all investments, timing is key.... ❤🙏🧿
You are wrong about your assumption that property values go up with inflation - prices go up when supply decreases or demand increases. Rents going up is dependent on ability to pay, supply, housing demand, and cost (including interest rates). You have housing in high inflation areas like Venezuela/Zimbabwe, rents are under $100 dollars a month. Basically there is a scenario where your rental rates go up, but your purchasing power crashes. I do mostly agree Ken though, this is a great way to increase your cash flow - but don't assume you will become wealthy...
Real estate is the ultimate hedge and investment. I have lived through the ups and downs of the overall economy and am even older than Ken and I agree with him. In todays market with these current ultra low interest rates like I've never seen, buying a house is a no-brainer. Take the longest mortgage the bank will offer. If you can't manage to save enough for a down payment, go partners with a close friend or relative, if you do this, make sure the agreement is in writing and spells it all out! Also, consider dividing a portion of the house for an rental unit to help pay the rent. Great video Ken!
Ken, I knew basically nothing about financial markets and real estate before I found your channel despite the fact that I have one rental property that I purchased a long time ago. You have revolutionized the way I understand the economy and my own personal investment planning. Also love your book, ABCs of investing in real estate. Thank you so much. And I just closed on another property yesterday!🙏🏽
Love how you break things down into non economic jargon. You simplify. Then you tell us what it means and what actions to take. Obviously not financial advice. But you give much greater clarity to what it really means and what can be potentially auctioned. Well done.
Back in the 80s you could also get 5 yr CDs for 8%. My first small loan to dig a well on my homesite was 18% interest! The CDs were very good for retired folks. I hope CDs will be that good this time.
Ken you are one of the smartest men out there, and you explain and teach gold in simple terms that anyone can understand. I am learning so much valuable information. Thank you, thank you!!!!! I wish I found you 20 years ago, but its never too late
Ken, thanks for the video, super interesting. I like the introduction of the digital board but quite hard to see from camera. Perhaps we can see more of the board with you in a thumbnail type size in the corner? Thanks
I cash out refi'd all of my duplex rental properties. Locked in sub-3% rates for the next 30 yrs, properties still cash flow wonderfully, and now I have a boatload of cash waiting for a good opportunity later this year or 2022. Lock in those cheap rates
Great video Ken, very educational. I still don’t understand the practical things to do though? Just buy realstate? What if I buy now and then the housing market crashes?
But didnt Japan go through this same scenerio and have had double digit percentage drops in real estate that led to stagflation on all real estate for many years?
Great observation. Ken's perspective neglects interest rates for borrowers trying to acquire those cash flow assets with new debt. If real interest rates rise, this perspective is completely bunk.
Yeah and since they were in a real estate bubble it did not work. If you have an area that has reasonable priced real estate it could work out, but I can’t do that here in nyc.
Waiting for the rest of the world to figure this out... tired of upside down world where dangerous games with money continues to pay while savers suffer.
You explain everything so simple! I am worried of inflation since my wage will not go up most likely. Which means I will have less money at each month when food is payed for.
And when you see more "fees" and little taxes added to every service you use when regulations are back in vogue in DC and businesses are hit with higher taxes they'll in-turn pass on to the public.
ok ken, we know debt and real estate is a hedge.how does someone start so late in the game? can you teach a single mom or a young family a stategy moving forward?what would you teach your kids?
Buy a small house even, just anything to get your foot in the door. 2-3 kids in a bedroom, or one on the couch, it doesn't matter. Work 3 jobs, put the kids to work if you can. And, when you all make more income buy another. Keep the first and turn it into a rental. Rinse, repeat.
We manage close to 700 houses in Dallas Fort Worth. ONE tenant is using Covid as a reason to not pay rent. The DFW market is strong now than it was before Covid.
Ken great info thank you. But I saw a video of yours few months ago saying houses were going down this year. Can you explain this contradiction in another video please. Thanks again
My most effective inflationary control tool is "Real Estate". I saw this coming already and I did secured my hard earned savings for many years in Real Estate recently. I have no regret as my cash is secured... Thanks, McElroy for this great piece.
Awesome break down! Yes I am pushing people to get out of adjustable rate mortgages and any future real estate purchases into nice 30 year fixed mortgages. Nice job Ken as always.
We know that cash is depleted by inflation but my mortgages on my investment properties are over 3% and in some cases as high as 6.1%. I’m sitting in my pajamas texting my property Managment company about raising rents as one of my leases is ending in two months. So yes, they will continue to rise as the market dictates. MTF. Thanks Ken!
Yeah, but it doesn't give you cashflow too! It's good to have precious metals in your hedge against inflation along with real-estate, and some bitcoin.
