Author Topic: Thoughts on Carl Dean or American Real Estate Investments  (Read 1417 times)

shanaling

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Thoughts on Carl Dean or American Real Estate Investments
« on: November 27, 2015, 07:40:25 PM »
Hello,

Anyone have thoughts on Carl Dean or American Real Estate Investments? Anyone use them?

https://www.areiusa.com/


Thanks in advance!

iamlindoro

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Re: Thoughts on Carl Dean or American Real Estate Investments
« Reply #1 on: November 27, 2015, 08:35:17 PM »
No experience with either.  Watched the video, they're definitely pushing a very conservative class of investment when they tell the investor not to aim for cash flow, and then use a lot of scare tactics about B/C/D properties. 

For me, for early retirement purposes, cash flow is very important.  The cash flowing from my properties is my monthly income in retirement.  A 7-10% net yield as mentioned on the site would mean these properties would have equivalent to or less than the return of a total market index fund, with increased risk.  While they seem to be suggesting that appreciation would be the primary source of profit, there is simply no way to guarantee that.

From the video:

"As long as you're not losing money each month, you are winning, as long as you invest in the right market." 

This makes me cringe.

The video is also filled with a LOT of FUD about any property less than A grade.  Yes, lower grade properties have higher risk, but that does not mean it's not possible to account for those costs and still come out ahead, as they also yield more.
« Last Edit: November 27, 2015, 08:37:41 PM by iamlindoro »