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Writer's pictureVaughn Bethell

Day 11: The Math - REI Junkies vs. Traditional Investing

Updated: Sep 25

Day 11 of 30-Day 1M $ Investor Challenge



Hey there, busy professional!


Let's cut through the investment fairy tales and talk hard numbers. How does your portfolio really stack up against your goals for RISK and REWARD? And what about STRESS versus HAPPINESS?


Let's solve this math together:

  • If your money's sitting in a savings account, earning a measly 1% to 4% annually, inflation is eating it alive.

  • If it's in the market, sure, the S&P 500 yields about 10% annually, but your stomach drops with every market dip.

  • And real estate? Potentially lucrative, but it demands time you don't have. Being a landlord is a job, not an investment.


Now, let's add up the real costs:

  1. Opportunity Cost: Every year at 4% is a year you're not earning 8-10%.

  2. Volatility Stress: Market unpredictability means sleepless nights and constant portfolio checking.

  3. Time Drain: Traditional real estate investing steals hours you can't afford to lose.

  4. Happiness Void: Your current investments may be profitable, but are they making a difference? Do they bring you JOY?


So, what's the alternative? Here's how we at REI Junkies compare:

  1. Consistent Returns: Our partners get 7-10% annual returns. That's at least twice as good as a savings account and delivers close to the S&P 500 average without the roller coaster.

  2. Time Efficiency:

    • Traditional Real Estate: 5-10 hours/week of active management

    • REI Junkies: Less than 1 hour/month for updates and reinvestment decisions

  3. Risk Mitigation:

    • Your investment is backed by real property. Unlike stocks, real estate doesn't go to zero.

    • We maintain a 25% equity cushion on all properties, further protecting your investment.

  4. Scalability:

    • Start with smaller amounts, build up.

    • No upper limit - scale up without increasing your time commitment

  5. Tax Efficiency: Opportunity for tax-free growth in self-directed IRAs or solo 401ks

  6. Social Impact:

    • Your money is at work, helping a family become a homeowner.

    • Tangible community improvement you can see and measure


Let's break down the bottom line:

  • $100,000 in a savings account: $4,000/year return, no impact

  • $100,000 in S&P 500: Potential $10,000/year, high stress, no impact

  • $100,000 with REI Junkies: $7,000-$10,000/year, low stress, A distressed house in a neighborhood brought back to life and a family moving from renter to buyer.


Why not jump on our upcoming webinar so I can meet you and show you what we're doing? In just a half-hour, you can learn how to optimize your investment performance. Visit https://webinars.reijunkies.com/webinar-registration817348 to register.


This is Day 11 of our 30-day challenge to raise $1 million for first-time homebuyers.


Together, we're proving that smart investing can be profitable and purposeful.


The math doesn't lie - REI Junkies adds up to a better future for you and for our communities. Why not reach out? Let's discuss your ideal investment goals and happiness.


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