Mindflayers journey to 100k PMNI

1) Rental Management: No action.
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2) Delta Warehouse: Tenant has not made a payment for 3 months now.. $2800 still to go. The only good thing about this is that since it is under 5k, If I have to, I can get this resolved in the CRT.
CRT=Civil Resolution Tribunal. The fee is under $150 and has the same weight/authority as if it went to regular court. You usually do not bring a lawyer to this. It all depends on how good your paperwork is and how much you can show you attempted to resolve the dispute on your own. In this respect, I am solid. I have done it before and know what is expected. My lawyer friend just says be patient, they will pay. If I do go this route, I will probably start in July.
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3) Equities Investing. have not done much recently. Just sitting on GIC's waiting for a good investing opportunity.
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4) Hamilton House. more small fixes, otherwise nothing of note. Rents paid by tenants on time.
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5) Edmonton RE. no Action.
Las Vegas Still looking at daily email properties. Went to Las Vegas in January. Met with a Property management company there. Nevada is investor friendly which is a +. I visit there once in a while so visits can be written off while looking for investment opportunities. Prices are still dropping.
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6) Math 101 and Econ 311. Actually have put this at the top of my list, equal with exercise and 20k steps per day. Studying and exercising every day.
Got up at 5:20 am this morning and was on the treadmill at 5:30. Studying is taking up all my free time now.
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7) RE meetups: Went to a bunch over the two months. Topics are same old stuff. It is the stories and contacts that I am going for now.
I invested with another developer that I met here. Just a small investment to start another long term relationship.
The property is a development in Langford B.C. Have not broken ground yet.
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8) Detroit homes: Nothing of note to report. Rents all being collected on time.
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9) Vancouver Warehouse. Had a meeting with the partners this last week to discuss what to do with the warehouse. The lease ends at end of May and tenant did not give a formal notice to extend the lease, so we have an option to end it and sell the property. There is a decent lift in valuation over the last 4 years. Conclusion of meeting is to prepare a new lease and continue with current tenant. They did give a verbal indication they would like to stay. I will see what happens.
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10) Wainwright Storage. No action.
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#11) Sarnia Ontario. Apartment. We still own the property and the mortgage will be reset in about 12 months. No action yet. we will have another meeting in 2 months to see what the investors would like to do.
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#12 Currently reading Liar's Poker. Excellent book that reinforces my belief that banks/investment brokerages (bond traders) are friction and make money from investors ignorance.
A very good thesis of why I am studying Econ is on P218-219. X was reported in the news. link Y to X. X will cause Y in three months. Buy Y now.
It could be all nonsense, but the Idea is there. Ie. Increase in EV sales.. EVs need nickel. Buy small Nickel producers in North America now with currently low PE ratios... I did last year.
EV sales could go bust so we will have to see on that one.
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#13 Future Authoring program. Have not had to update as I am still grinding in silence.
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#14 no more poker.

why no more poker? just lack of time or desire?

More lack of time than desire, although, poker was not on the top 10 list to start off with. I got back into playing because my son started playing and I wanted to have an updated version of this topic to be able to discuss it with him. We only discuss hands that were difficult to play. He plays about 1/4 as much as before and has replaced it with more meet-ups with his friends, so no need for me to keep playing.

1) Rental Management: No action. Will have to help out my sister and BIL soon. (not paid)
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2) Delta Warehouse: Tenant has not made a payment for 4 months now.. $2800 still to go. One of the two companies that owes me the $ emailed me and is trying to get the other to pay up.
Will keep an eye on this. As before, if no payment by June (6mo) I will probably start the claims process in July.
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3) Equities Investing. Same Just sitting on GIC's waiting for a good investing opportunity.
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4) Hamilton House. One tenant moved out at the end of March. Listed and looking for a new tenant.
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5) Edmonton RE. Las Vegas RE. No Action, just continuing my research.
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6) Math 101 and Econ 311. Last week of classes starts tomorrow. Should be ok. I hired a tutor for some help in Math.
The beginning of wisdom is knowing that I am old and slow at math.
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7) RE meetups: going to a meetup tomorrow.
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8) Detroit homes: Nothing of note to report. Rents all being collected on time.
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9) Vancouver Warehouse. No replies from the tenant on staying. They have 7 more weeks in this current 3y lease. Will email them in 2 weeks if I do not hear anything.
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10) Wainwright Storage. No action.
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#11) Sarnia Ontario. Apartment. No action/meetings yet.
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#12 Currently reading The history of William the Marshall, an English Knight; the most capable and honorable knight of his time. around 1200.
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#13 Future Authoring program. Grinding in silence. The long term goal is a PhD. i am still at 30% on the goal.
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#14 New topic. Real Estate Agent's license. I had my first deal accepted today; 2 weeks after I was asked to represent a buyer. It was my first deal. Mid 7 figures!
Item 3 and 5 may be put on the back burner as i am going to open houses with my eldest son; 25y. He will be 26 in August and he will likely purchase his first
home at the end of this year or beginning of next year. I will be helping him with the down payment instead of making another RE investment. The property and
mortgage will be in his name. My second child is 23 and is 3years from being in the same position. I have discussed the long term plan with him/them and it is
to buy a 2+2 (2 bed, 2 bath) with all the first time home buyers programs and advantages, and live there for 6-12 months. After 6-12 months, move back home
and rent the place out. He can save maybe 50% when living on his own and 80-85% of his income when living at home.

Just discovered your thread, interesting to me and the level of detail you provide.

I can chime in on the insurance thing (not sure if you were serious)….you likely couldn’t do that for 2 reasons:
1. You need to have an insurable interest, like the studios do in the actor being there for them to finish their project. It’s easy for them to prove, would be a challenge for you to prove to protect your stock.
2. You would need the insured, in this case, Elon, to sign off, authorizing that there is a policy being taken out in his name. That would prove to be a very large hurdle would be my guess. The studios probably have the actors sign off, and that’s probably very common and that industry.

Thanks for the Interest.
No, not serious in getting the insurance, but Keyman vulnerability is an issue with Tesla. Only the board of directors could try to do something like this, and
no insurance company would take that bet. Tesla has to get to the point where Elon steps away and the company is run by independent board etc.
ie. if Bill Gates dies ... nothing adverse will happen to Microsoft shares. Whereas I can see tesla taking a 40-50% or even more dive if Elon were to die.
I think Elon has to get +10 years and have a health scare before he reflects on his own mortality to say 'I better make sure the company survives after I die.'

1) Rental Management: No action. I did get an offer to run 4 strata part time, but have not considered it seriously. That activity is 4th on my list of what to do next with my life.
1st get a part time low stress job in RE. (learn nothing)
2nd equal with 1st: get a full time job in RE. (below my skill level, but where I get to learn a new aspect of RE)
3rd Continue with RE Studies. This option may rise if wife changes her mind about how much time she wants to spend with me, or if I magically get 70% in math and 90% in Econ.
This is explained in #7 below.
4th get a part time high stress job.
5th, not really an option. (Get a full time high stress job doing what I do well, but not learning anything) Would consider this only if I magically became bankrupt.
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2) Delta Warehouse: Tenant has not made a payment for 5 months now.. $2800 still to go. As before, if no payment by June (6mo) I will probably start the claims process in July,
after I get back from my 2 week vacation.
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3) Equities Investing. No Action. Same Just sitting on GIC's waiting for a good investing opportunity.
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4) Hamilton House. Correction, One tenant moved out at the end of May, not March. Listed and looking for a new tenant.
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5) Edmonton RE. Las Vegas RE. No Action, just continuing my research.
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6) Math 101 and Econ 311. Hired a tutor and gave it a serious go. I did a total of 9 practice exams prior to taking my Math exam.
first 16 out of 20 questions on the final were 1 and 2 star difficulty. Did them all with no issues. Q17-20 were 3 and 4 star questions and essentially were questions asked
to see if you could extend concepts from what you learned in class to a new 'type' of question that was not covered in class.
Sorry no. I could not. in all of the 9 prep exams that I wrote, the 'harder' questions all had to do with centroids/center of mass/work required to pump
liquids out of a tank/or concentrations in a liquid after time t. etc. None of those on the exam I wrote. Rats. Hoping for a 65 in Math and 85 in Econ to
be convinced I could stay in school and even consider doing a further degree in Econ/ and possibly a PhD in urban Land Economics.
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7) RE meetups: Next meetup is May 12th. Will talk to one of the organizers, who was looking for help in his office. Am way overqualified to just manage a
RE office, but the wife more or less told me that she did not want me to go back to school full time. Not sure if she is serious as her opinion has done a 180
after a friend of hers retired 6 months ago and died 2 weeks ago. That event made her think a lot more about life. She says she wants to spend more
time with me. etc.
This job would suit my wife more as it would be a 0 stress job. ie. 9-5 doing what I enjoy. (All things RE)
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8) Detroit homes: Nothing of note to report. Rents all being collected on time.
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9) Vancouver Warehouse. Had discussions with the Tenant. They officially singed a new lease today for a different warehouse. They have downsized.
I already had multiple conversations with Commercial RE agents from 3 different companies. I am a RE agent but am not in the Commercial field and have no
way of promoting this property to a select group of commercial buyers. Decided to go with an agent at CBRE used by one of the other investors. My commercial
agent is with Cushman Wakefield.
Had a meeting with this 'new to me' agent and was convinced of his ability and market knowledge.
We also had a meeting of all the investors 3 days ago in preparation for this, and agreed to re-lease/sell the property. Sent off 5-6 emails keeping everyone
in the loop and giving all the necessary contact info.
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10) Wainwright Storage. No action.
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#11) Sarnia Ontario. Apartment. No action/meetings yet.
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#12 Finished reading The history of William the Marshall. Currently reading 'Real Estate in Canada' by Ozzie Jurock. He is the person i mentioned in #7
looking for someone to run his office.
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#13 Future Authoring program. Grinding in silence. The long term goal is a PhD. As I mentioned in #6 this has now dropped slightly, to maybe 20-25%%. One of the
things that I did to further this goal was to research the application process and what actually was involved in getting this PhD. My wife thought that I could
do it part time. From my research, it will take 2 years full time in classes. 4 classes in each of 2 sessions in the first year and the same in the 2nd year. A total of 16 classes
in the first 2 years. In addition, I would be required to teach a 100 level class in Economics or Urban Land economics. Then there would be 2 years of full time thesis research and
defense. I explained to my wife that I would be taking one more year of 'prep' part time (Econometrics. and likely linear algebra and/or another econ class.)
after that i would apply to be accepted as a PhD program. No guarantee that I would even be accepted. I told her if I was accepted, it would be like a 9-5 job
working every day. She liked the Idea of me teaching, but did not like the full time 4 years in school. There maybe a happy medium as I could easily get an bachelors
degree in Economics or Urban Land Economics part time. (at least I think I could, but maybe I'm wrong and I get less than 60 in math and less than 80 in Econ! Looing forward
to see if I lost my mojo for taking classes and learning.)
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#14 New topic. Real Estate Agent's license. Closing date of my first deal is May 8th, then I will not need the license until my son buys his first home.

FWIW, T-bills are state and local tax free, don't know about GICs taxwise.

Noted and thanks.
I am Canadian so we get taxed everywhere. in RE we do not have a 1030 exchange and our attributable Capital gains is set to increase from 50% to 66%. Ugh.

1) Will be on vacation with Wife from May 29 to June 16 or so. Will see how she thinks of life during the vacation and make a decision after we get back.
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2) Delta Warehouse: No action until I get back from my 2 week vacation.
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3) Equities Investing. No Action. Same Just sitting on GIC's waiting for a good investing opportunity.
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4) Hamilton House. Correction, One tenant moved out at the end of May, not March. Listed and looking for a new tenant. No action.
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5) Edmonton RE. Las Vegas RE. No Action, just continuing my research.
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6) Hoping for a 65 in Math and 85 in Econ to be convinced I could stay in school and even consider doing a further degree.
60 in Math , 82 in Econ. Did not flunk but will meditate more on what this means.
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7) RE meetups: Met more new people in the area I am studying: Multiplex in Vancouver BC.
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8) Detroit homes: Nothing of note to report. Rents all being collected on time.
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9) Vancouver Warehouse. Arranging for tenant to move out and for the warehouse to be listed by CBRE. Got a call from out of the blue from a potential buyer that wants a vendor take back.
This is a mortgage where we (the seller/vendor) becomes the bank and carry's a first mortgage on the property. We will see what happens. I guess we are at 10% shot with this buyer. Have to look into the details of a Vendor takeback and possibly selling the shares in the Holding Company instead of just the property.
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10) Wainwright Storage. We had our AGM yesterday. Voted to leave extra funds in the company to purchase and install more units in a heated warehouse.
The property has something like 85 storage units and outside lots for vehicles/boats/RV's. The warehouse previously was heated and rented out to one contractor to store his
equipment. After he left, we purchased 8x8x10 sized metal walk in containers and put them in the heated warehouse. The warehouse has 7 units now with space to install 6 more.
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#11) Sarnia Ontario. Apartment. No action.
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#12 Finished reading 'Real Estate in Canada' by Ozzie Jurock. Finished reading the latest Elon Musk Bio. Super interesting read.
Currently reading classic fiction 'The portrait of Dorian Gray.' Will need to buy a couple books for the flight to England.
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#13 Future Authoring program. I got 60 in math and 82 in Econ. Mojo is soso! haha.
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#14 Real Estate Agent's license. Closed on my first deal and got a decent pay cheque.

1) Back from Vacation. Re-energized. Going to look for a job in RE: focus is on property administration. hoping to see the inside of commercial real estate.
How larger projects get built, especially warehouses and storage units. Next choice in this area is multi family +5-100 unit projects.
Have to help my sister and BIL with a couple of rentals and will look into joining PAMA. Professional Association of Managing Agents. Need access to latest forms.
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2) Delta Warehouse: Will start on the CRT filing this week, claim will either be for $5000 or $2800.
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3) Equities Investing. No Action. Same Just sitting on GIC's waiting for a good investing opportunity.
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4) Hamilton House. Will email the PM this week and lower the asking rent, and ask what is the issue with the property.
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5) Edmonton RE. Las Vegas RE. No Action.
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6) Education future will be revisited if I do not get a job by End of July 6 weeks from now essentially. Then will register for Econometrics.
Will have another 6 weeks before the withdrawal (from this course) with no effect 3rd week of September if I do not get a job.
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7) RE meetups: Missed a couple but am back and looking to make connections and fill in my circle of contacts and possible mentors and/or mastermind group.
While on Vacation, made a list of people I want to take to lunch and talk RE with. Making a list of interview questions. (my secret.) It is just lunch, but will
be digging for info from people who should know more than me. Will make a list of my question and will post them here.
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8) Detroit homes: Nothing of note to report. Rents all being collected on time.
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9) Vancouver Warehouse. Tenant is out. We need to do about 2k in simple repairs. CBRE has the brochure of our warehouse and it is listed for 2.66M.
Will connect with our commercial RE agent this week.
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10) Wainwright Storage. No update
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#11) Sarnia Ontario. Apartment. No update.
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#12 Finished reading 'The portrait of Dorian Gray.' 'Real Estate Titans' by Cohen and 'Foundation' by Asimov. 10/10 for Foundation. Currently reading 'Fooled by Randomness'
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#13 Future Authoring program. will update this and my goals this week.
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#14 Real Estate Agent's license. Will get re-started on open houses with my older son.

1) Applied for my first job. Is a civil construction type job. Project cost controller. Not really my cup of tea, but is very similar to my very first job
out of university. It is for a very high profile job in my city. So it is something interesting to add to the resume if I get offered the job and accept it.
It has the added benefit that the job has a completion date that is around 2years or so.
Forgot to look into joining PAMA.
Was looking for other jobs and found one that suits me very well and pays very well to boot! Will apply this week.
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2) Delta Warehouse: Finished the paperwork prep and emailed the ex-tenant. Will get filed with the appropriate legal body on July 16 if no payment.
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3) Equities Investing. No Action. Same Just sitting on GIC's waiting for a good investing opportunity.
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4) Hamilton House. Had application but rejected them as their credit score was too low. Other tenant is no problem.
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5) Edmonton RE. Las Vegas RE. No Action.
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6) No change: Education future will be revisited if I do not get a job by End of July 6 weeks from now essentially. Then will register for Econometrics.
Will have another 6 weeks before the withdrawal (from this course) with no effect 3rd week of September if I do not get a job.
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7) RE meetups: Went to a new RE investor meeting group, that has a whole different set of attendees. The group is a level below my regular meetup.
(smaller investors, say 1-5 properties) and the meeting fee is $20/meeting. My next regular meeting is in 4 days.
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8) Detroit homes: Nothing of note to report. Rents all being collected on time.
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9) Vancouver Warehouse. Tenant is out. We did 2.8k in simple repairs. Some interest, but nothing solid yet.
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10) Wainwright Storage. No update
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#11) Sarnia Ontario. Apartment. Owner payout amount was agreed on. Nothing special. We still own and manage that building, currently 100% occupied.
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#12 Finished reading 'Fooled by Randomness' Currently reading 'Foundation and Empire' will re-read an old book 'Strategic Planning' by Rice as the interesting job described in #1 names a
business management technique first outlined in this book back in 1990. I have an original copy from back then!
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#13 Future Authoring program. will update this and my goals this week. Oddly this (thread) is an ongoing version of what the Future Authoring program is like.
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#14 Real Estate Agent's license. No new open houses worth looking at. I am much better versed in doing a scan and quickly eliminating properties that are not worth looking at.
I am very quick to scan location, dollars/psf. If it does not pass these two, I don't give it a second look.

glgl on the job venture

how long have you been self employed?

as someone who's been going solo since 2016, my attempts to get back into my old industry were pretty difficult and fruitless and whatever I found always paid less than continuing to go solo

granted my old tech industry is rapidly going down the toilet with massive layoffs and hiring freezes which is probably the bigger factor than my absence for nearly a full decade - but i went from a very in demand person who was regularly shooing away recruiters and head hunters to someone who got asked in for an interview maybe 1% of the jobs i applied to and never proceeded beyond that and it's been a pretty jarring experience

I worked in a family business from the mid 1990's to 2008.
I took a pay cut from what I was getting as an engineer to work in the family business.
I was lured into the company by my father with promises that I would eventually be running the company.
I spent 3 years learning the inputs/process and plant. After those first 3 years or so, I realized that my father
was never going to retire and so I started my own company; part time to learn what I was being blocked
from learning by other family members. (sales and accounting) I still worked for the family company part time
but was paid full time salary. This was totally against what I believed, but weirdly, my cousins loved it and
acted all entitled as if they were going to take over the company.
They acted like they wanted to be President. I acted like I wanted to be the owner.
The company that my father started in 1958 and built for 50years is now closed. In my opinion, it had
the potential to triple in size, but was held back by stagnant management.
(comfort and satisfaction with the status quo is the enemy of growth)

When I started my own company, I was horrible/terrified of doing cold calls and had no experience in
Purchase orders/accounting/invoices/Corporate taxes/payroll etc. Now I can do an elevator pitch with some random
person(s), or look at a document and know what is wrong with it. ( I had to do some review of accounting
with forensic auditors, to get to the bottom of about $125k in missing funds in my family's business)
I can't even confirm when I started or closed my own manufacturing company as
I only held on to documents for 10years after the company closed. I purged probably 30,000 pages of
PO's, invoices, tax returns ,etc. The emails back then were on a publicly traded company server that no longer exists.

I was in the last job that I could get fired from in 2008.

I went from that part time to full time in my own company in 2008.
In 2010 I formed my first real estate holding company to purchase a warehouse that owned the one property
that my company was a tenant of.
In 2015 I sold the manufacturing business and kept the real estate holding company.
I was Retired for 3 years.
in 2018 I went into real estate full time.

1) Was formally rejected from the second job that seemed very interesting. First job application received no reply. Applied for my third job this month.
Job title is Senior Acquisition Analyst. I am also well suited for this job. I figure I have a 6% chance at the job. Look at real estate valuations all day, factor in build costs, holding costs, and
and depending on location, sell as stratified units or lease up.. and hold to sell as one property to a REIT based on NOI and cap rates. What I do and study part of my day anyways.
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2) Delta Warehouse: Tenant has replied and put themselves on a payment schedule. I auto agreed. (Knowing the arbiters at the Civil Resolution Tribunal that handles such cases, they would likely do the same except that the payment would be enforceable by a court order. In business, coercion is always better than force.
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3) Equities Investing. No Action. Same Just sitting on GIC's waiting for a good investing opportunity.
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4) Hamilton House. Just accepted a new tenant with a good credit rating. In general I use 650 credit rating as a ok score +700 is good. and 3x the rent as the base salary to cover the rent.
ie you can have two tenants with total income of 3x rent and an average 650 or higher credit rating. There are always +- other things that can move the No to a Yes, such as a lower credit score, but moved from another location to take a much higher paying job (verified) in the city i am renting the unit in. everything is 'it depends'
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5) Edmonton RE. Las Vegas RE. No Action. RE prices seem pretty sticky.
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6) No change: Education future same. Still intending to register for Econometrics until/unless i get a job. I have added using AI applications in work diploma course to the list of things I want to study. Next program starts in January 2025.
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7) RE meetups: Went to my regular RE meetup. Got a few new contacts and met an Old friend from 1992 that I worked with on my first Engineering project!! I remember him telling me back then that he had just put a down payment on a duplex with his credit card. He told me that he still owns that property .. now owns many many properties all over my city.
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8) Detroit homes: Nothing of note to report. Rents all being collected on time.
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9) Vancouver Warehouse. Had 3 viewings, and got into a negotiation with one of the groups. They made an offer that went back and forth 5 times. We finally agreed on the price and terms this morning. Subject removal on August 26, Closing Oct 30.
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10) Wainwright Storage. No update
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#11) Sarnia Ontario. Apartment. Owner payout made. Nothing to report.
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#12 Finished reading 'Foundation and Empire' skipped 'Strategic Planning' by Rice. since company that described SWOT rejected me, I started reading a different book.
Currently reading 'Ego is the Enemy' by Holiday
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#13 Future Authoring program. Short term goals are as outlined in this thread. Medium term is job/studies. Long term remains 100k/m net income. I will also settle for 100M net worth!
If I magically hit that, all it means is that my stock portfolio has somehow gone bonkers.
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#14 Real Estate Agent's license. Still looking at local properties. I can see the low end properties starting to build up and drop in price, if only a little (under 5%)

do you actively manage your distant tenants

ie if the detroit tenants stopped paying, are you flying to detroit to deal with that or is there a management company that handles that for you?

if you outsource it, what cut of the rent do they get?

Hi have remote property managers at all non local properties.

I have never been to Detroit. I am on my 3rd Property Manager in Detroit.
1st was a crook (I did not pick him, he came with the properties that I purchased), 2nd died, 3rd is excellent and posts his daily adventures in
property management and renovations on youtube it was called The Shea Show and he had +3000 videos until youtube took them
all down for copyright violations. He is back up, and now on youtube, instagram and X, but most of his old episodes are lost.
I know enough now about property management that when a remote PM tells me there is a problem, I have in the back of
my head how I would handle that problem. I let the PM do their thing and only discuss the issue and how to handle it
if they run into problems or the problem persists.

generally +-7% (of rents collected) as a management fee.

Where are you at in terms of the 100K month goal?

What else are you including in that number besides RE income, if anything.

Well it is hard to say where I am. I used to think of number of doors as the goal. 100 doors (100 units paying rent)
but that went out the window when I swapped part ownership of a 97 unit complex to a single warehouse and some office space.
in that equation 97 residential doors = 1 industrial+1 commercial so the measurement by doors no longer worked.
In a similar fashion, I recently sold a warehouse and a second warehouse is under contract for sale.
The rental income dropped by $16k/month but in its place I am sitting on a pile of cash in 1y term cashable GIC's at 5%.
I do not measure that because the payout with interest does not show up monthly. You just get a pile of cash when
at the end of 1y or when you cash out.
I think I mentioned an alternate version in #13 where a great replacement goal would be to get to 100M net worth.
I estimate under the current conditions a 50M net worth invested mostly in Real Estate would generate that 100k per month net income.

Lastly there is a tradeoff in capital appreciation vs. cashflow.
I live in a city where property investment that will produce positive monthly income is not possible.
900k USD will buy an empty lot in my city with $0 cashflow.
In most cities, there is a tradeoff of cashflow for appreciation. If you invest in a suburb, of a city, you will get
more cashflow and less appreciation. If you bought the same unit in a growing (ie. not San Francisco) city center, you would likely get
very little cashflow and much more appreciation over time. I have a mix of both locations as well as adding commercial and industrial to the residential mix.
For the low cash flow properties, the capital appreciation is only realized when you sell the property.
If I wanted to really hit that goal of 100k/m I would only be investing in 0% appreciation high cashflow places like Detroit.
The mix protects against a targeted drop in one area of the economy.
ie. it helps to spread the risk. When office values are way down because of covid, warehouse space became really high in demand.

I would estimate i am at 7/50 with a good portion of the 7 sitting in cash, waiting to buy property at a discount.
By cashflow only, I am collecting under $10k/m in rent now.
Not sure if that helps, but that is how I think of it.

The problem with property as an investment is properties only have a useful life off about 70 years. If you take an extreme example, any property you own will be rubble 500 years from now.

The real estate agents and the builders make the money on property. If the properties were excellent investments the banks and the builders would just keep them and rent them out themselves.

Stocks are better investments, as depreciation is already subtracted, from the net profit line.

500 years from now Coca Cola will still be here, paying dividends, their factories will be in tip top shape and it will be far more profitable. You're property will be bulldozed to the ground.

Thank you Maximus for the comment/thesis. One of the key reasons that I post here is to allow anyone and everyone to comment and tell me where I am wrong in my thinking and make me defend my thinking and actions OR have to reconsider my thinking. I hope you come back with a much more solid argument why RE is a bad investment in comparison to Equities and Smash on the idea with a much bigger hammer.
Let me help you out by trying to smash on my plans by Taking your position.
I will break my reply into 3 sections. 1) Why RE is a bad investment, (this post) 2) Why Equities are good investments, 3) why RE is a good investment (for some)
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‘stocks are better investments’ Definitely true for most investors, but not for all and not for the reason(s) you state.
Here are a few Negatives for Real Estate Investments in no particular order:

1) High barrier (down payment) to entry. I have several small properties (under 100k) that generate 7-800/per month and have owned them for over 10 years. One or two of the tenants are older (mid went from mid 40’s to 50’s and working) If they could see that they were staying, they could have saved up for 2 years and had a down payment and made a mortgage payment instead of a rent payment for the last 8 years and be close to owning the properties outright today. Their problem is that they cannot see past their next paycheque.

2) Risk of ruin. On an Investment property, If you need to collect rent to pay your mortgage, one bad tenant or professional squatter can stop you from collecting rent for a year And cause you to have to pay 5k for legal and Bailiff fees. IF (mortgage is underwater) and you are forced to sell at a bad time in the real estate cycle your entire investment can go to 0. You can get downgraded to a bad credit rating if it was a bank foreclosure and/or property tax was still owing. This compounds the problem as lower credit rating individuals pay higher interest rates on the same loan amount because the bank considers them a higher risk of non-payment.

3) Maintenance and repairs are required annually on the property. You should have CapX funds to deal with this, but most first time investors think that the tenants will love and take care of your property for you…. Sorry NO! Hot water tanks, dishwashers, fridges do wear out and fail over time.

4) Requires a minimum level of disagreeableness. If you are starting out and have the personality type that would dread firing a co-worker, you would also likely dread evicting a tenant. You can have professionals do it, but it costs way more. Sometimes you have to fight with a tenant when they complain the toilet is not working and you send a plumber. The plumber’s report comes back and says a hair clip was jammed in the drain line. A hair clip is not wear and tear. The plumber’s fee is the tenant’s responsibility.

5) Illiquid nature of Real estate. Need cash for an emergency? Selling a property may take 3-6 months. Even at the best of times, you cannot get that number under 2 months unless you are buying with cash and no subjects. (subject to inspection/financing etc.) Banks/Lawyers/building inspectors/Title companies need time to process. Banks also need extra time to assess you as a risk and the value of the property.

6) Transaction costs rules out quick gains. Your comment on real estate agents making money on deals is legitimate. If you are planning to hold the building for less than say 10 years, profit on a normal property can be eaten by the bank/legal/assessor/inspector/realtor/transfer tax fees on both buying AND selling the property. You have 0% chance of gaining 20% on your investment in under a year. (as opposed to an individual stock.)

7) Requires lots of self study and advanced planning. You need to think about your personal and investment needs. This statement can mean a lot of things. Personally because of the illiquid nature of RE, if you can foresee that you will need large amounts of money in the future, say to pay for a car/wedding/kid’s university, you may need alternate sources of funds.
Locationally, you also want to have a good Idea (need to study and plan) that you are investing in a place that is growing and will have a reasonable chance of capital appreciation. Ie. Invest in a location where jobs are moving like Texas and not California. On a more local note, if your city is planning a transit stop or new bridge to improve traffic in that area or a new ‘development zone/revitalization zone’ that gives the investor certain privileges or tax exemptions. I am a big believer in ‘free infrastructure’ plays. Ie. The city has a better idea of where transit demand is high and will forecast for you where the growth in the city is going to be.

8) It takes patience even when things are good. When the city starts building a new transit stop at location X and you decide to buy a condo in the tower right at that location, you will have to suffer during the construction and 100% guaranteed protests and delays that come with such infrastructure development before you see that large lift in property prices when new retail restaurants and services move in to take advantage of the new transit. 400yards/meters is a good gauge of where to buy and what gets a lift. That is roughly a 3-5 minute walk to transit.

9) Capital gains are taxed all in one year. Generally this leads to a maximum tax in the year that you sell a property.

10) Can be hit by natural disasters and uninsurable events. Terrorism or vandalism by vexatious tenants are not insurable and will be money right out of your pocket. In some places where you can buy insurance vs. large natural disasters, your premium could jump as much as 100% after such an event. Think of Florida hurricanes and the threat of insurance companies to pull out entirely from the state if they are not allowed (by law) to raise insurance premiums by market rates.

11) You can do everything right and still have your property value decrease. Having the wrong neighbors is a good example. (don’t cut their grass/rake leaves/park wrecked vehicles on their lot/neighbor house becomes a drug house or is occupied by gang members)

I am sure there are more, but that is what I came up with this morning. I also limited myself to buying single family homes or Condos. There is a whole separate list of negatives I have for Limited Partnerships and Syndications where you own less than 100% of a property.

If you are in the US, I would start with Bigger Pockets and start asking questions there. It is a site = all things real estate.
get an account and start asking questions. if you are serious, post at least one question every few days. If you ask here, I can only give you one opinion and mine has a Canadian Tilt to it.
Most of my holdings are in Canada and only a few in the US. Ie. we do not have things like 1030 Exchanges to delay Capital Gains in Canada. So when you get down to the nitty gritty and state specific laws, you need a state specific answer. Bigger Pockets is your first place to ask.

Here is a more targeted page for you on Property Managers.

https://www.biggerpockets.com/blog/property-management-vs-self-management?utm_source=Iterable&utm_medium=email&utm_campaign=Newsletter%20%7C%2012/28/21%20%5BPro%20%2B%20Premium%5D

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Self-Management vs. Property Company: Which is Better? | BiggerPockets Blog