The shooter was a certified public accountant. When he retired, he became a real estate developer in spare time. Being in real estate is more a wealth management than a job.Originally Posted by ZenMaster_Flash
Related to the thread, sorta kind of, but I thought it interesting.
For all intents and purposes, I am retired. I still do work, almost always less than a day a week. I also have some rental Property, though self supporting, has some mortgage debt (my only debt) associated with it. My son looks after it for me. I want to dump it in the next couple of years at a time when the market is good, coupled with some tax deferral strategies etc etc.
I like the thought of conservative stocks and holdings, market growth dividends and interest, highly liquid, without the need of heavy intervention. I am one lazy SOB, willing to pay for competent professional management to keep me lazy. I've not yet started to draw on retirement funds, but it's coming in the not to distant future.
I write this while relaxing at my neighbourhood French bakery cafe, having just got up from a nap, lunch earlier with the wife, and of course, my excercise class this morning. Business wise, I had 2- 2 minute phone calls today, and a couple of emails. Think I got another email while writing this post.
The point is - when I didn't have it, I didn't pretend to have it. As I started getting it, I lived a fairly simple life - didn't play the big shot. Health issues really slowed me down, but prior life philosophies allowed me to slow down with dignity. I could never put out, like I used to from a business perspective, nor do I want to.
I recognize that I've been luckier than most, I did go through living the cheque to cheque routine making sure everything got paid - so long ago. My advice to all - resist immediate gratification, don't play the big shot, and remember that accumulation, for most is a gradual thing. I've lived in the same modest house for 26 years, tight when the kids were young, more than we need as empty nesters. It's filled with memories and we're not going anywhere.
Your 2nd decade of life is not to early to start thinking about your sixth decade and beyond.
I own a condo unit at the Signature at MGM. It's a strip-facing unit with a very pleasant balcony on a high floor. Up to now, my worst fear that was some gambler (renting my unit) would go on tilt, trash the unit and take a swan dive from the balcony. Now, I'm just waiting for the order that I can't use the balcony anymore....
I own a studio unit on a high floor that is 100% rental. All units in the hotel are non-smoking and they take it seriously. I've never smelt a wiff of smoke in my room.
I also have a 50% interest in a one-bedroom unit (with a friend) on a lower floor, which is where I usually stay when in LV. I've been bet-restricted at MGM properties, but the beauty is that they can never throw me out of my own home!
MGM manages the rental units (at your option) and takes 54% of the gross rental income. After all fees and costs are deducted from the 46%, it results in about a 5% "cash-on-cash" return. So for instance - you could buy a decent studio unit on a high floor with a balcony for about $220k. If you let the MGM manage the rentals of the unit, your net cash after all expenses will be about $10 - $15k (higher if you manage the rentals on your own and avoid the MGM cut). Of course your returns elsewhere may be greater, but I love LV and I have vision for the future. Visitation will keep increasing and room inventory will be much slower to catch up, especially around the MGM where a lot of good things are happening (hockey team - T-Mobile Arena, Monte Carlo Theatre, Las Vegas Raiders, Harmon corridor expansion, etc.).
Posting Permissions
Reply With Quote
Bookmarks