07-08-2019, 05:25 PM
(07-08-2019, 04:39 PM)Apoc Wrote: I was gonna say, commercial real estate is a better money maker... but probably out of reach of most people on this forum.
I've met a few folks here in Seattle who have made a KILLING on commercial property. Most everything appreciated a significant amount over the last 5+ years here, but the people who were in the commercial game have done better than private residence investment.
Commercial real estate is also far riskier and requires real bank flow due to vacancies having a higher turnaround cost. It can also ends in disaster during downturns and is very cutthroat. It's not what I would consider a side business which is how I am viewing what he intends.
Residential real estate is low returns (way more than 1%, not sure where he got that figure from as I do it myself and it is my uncle's entire livelihood for 25+ years); but generally lower risk and initial buy in than commercial. As with any investment; it's about how you are handling it. It also can be a tax shelter for money outside your investments (only if you are maxing out other shelters and would like to diversify your portfolio).
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