Quote:
Originally Posted by photon
That stress doesn't come from having the equity in their home being used in another property, the stress comes from not knowing if they've done the right thing, not having any idea at all if their investment is going to grow or shrink.
That's the kind of investor that's simply rolling the dice and hoping for the best. Of course investing home equity in that situation is stressful! If I bet my house on black, I'd be stressed too.
Investors are people who've taken the time to understand their chosen area and find and use the methods that work. I couldn't do what SeeGeeWhy does; I don't understand businesses and all the things around them. Choosing one to buy would be like rolling the dice for me and would cause me no end of stress.
However with real estate I've done lots of research. I know the economic fundamentals that are driving the current boom in Alberta. I associate with others who are more experienced than me at it and have been successful for the right reasons, I find out what they did and why it worked, and reproduce it.
I'm not a big fan of Rich Dad Poor Dad and those books. While they are good motivation and are good for getting the point of how to look at money across, I don't necessarily think they're that great from an investors advice point of view. There's a lot of crap advice out there, and a LOT of people wanting to sell you their advice. It's better to work with people who actually do it, rather than people who want to sell you how to do it.
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All of that is true, but at the same time it's not easy to find help out there that's not looking to just make money off of you. Truth is, win or lose they still make money.
It's easy to invest someone elses money, even in a risky investment, if it pays off then great, but if it tanks it's your money going down the drain. That's the harsh reality of hiring proffesionals.
Flipping houses, investing on the markets etc has far more losers than winners. Always has and always will. But no one writes books about it so it's not getting much exposure.
BTW, I have some investments on the market and am thinking to buy land soon (retirement property) so I am obviously not against investing. I just don't agree with people risking their homes to do it. Most of those people don't have the funds to withstand any downfalls.