Comment by rsanek
6 months ago
I've found this to often also be the case, but leverage completely blows these numbers up.
you'd be right if someone was willing to let you lever up 5:1 and bet on index funds. however you can only accomplish this with real estate, and with such leverage the required rate of return is far lower to make it worth it.
TQQQ is 3:1.
Every time I ask people to factor in their time in managing the property (yes, even time spent finding the property to buy counts), they end up way behind.
Volatility decay means if QQQ is flat, TQQQ is negative. It also consumes your dividends.
How is that different than leveraged RE? If the property value is flat, you’re in the red due to interest.
1 reply →