Re: Uh, huh. - Posted by Drew
Posted by Drew on August 26, 2011 at 08:22:08:
And I wonder how much he will claim to have lost in the 2-day selloff, including a 5.6% drop in ONE DAY. Hope he’s enjoying that safety.
Re: Uh, huh. - Posted by Leo
Posted by Leo on August 26, 2011 at 14:02:18:
Uhh you do realize Gold is up 30% for the year?? That’s a 60% gain annualized. I’m sure you landlords are matching these returns so far this year. Lol.
This board has lost most of it’s activity past years for a reason. The easy money in real estate has been made. Each his own.
I am not some huge goldbug btw but I am pointing out safer ways to make money as real estate prices continue to fall.
Re: Uh, huh. - Posted by phil fernandez
Posted by phil fernandez on August 26, 2011 at 15:30:33:
Leo you always answer your own questions. Even when you don’t know you are doing it.
Ok, You are buying gold when it is going up and everybody is buying. Yet you don’t buy real estate, it is down .
Shouldn’t you be buying real estate when everyone is selling and selling gold when everyone is buying. That’s economics 1.1.
Re: Uh, huh. - Posted by Leo
Posted by Leo on August 27, 2011 at 22:31:28:
My concern about real estate is it has yet to bottom. And the trend is your friend until proven otherwise. Gold of course is still in an uptrend, has been for years and will continue to be in one considering most western governments are completely broke!
Re: Uh, huh. - Posted by Chris in FL
Posted by Chris in FL on August 26, 2011 at 23:16:25:
IMHO, Leo is Losto… In time, he will find his way… Or maybe not.
Indeed, as Phil says, time has proven a method that has created many a wealthy person. Buy when everyone else is selling; sell when everyone else is buying. I think (Samuel Clemens/Mark Twain??) said, when everyone is digging for gold, it is a great time to be in the pick and shovel business… Not sure what the pick and shovel business is this time around, but I understand the message - don’t follow the masses (and invest by buying gold at all time highs)!
Leo, you, like many who are not educated about CRE, regard RE in a simple, straight forward manner… Buy it at today’s price. Wait for it to produce cash flow and go up in value. In that regard, it may not make sense to buy RE now. What we CRE investors do is we look for angles. We buy significantly below today’s market value. We buy on great terms from motivated sellers. We buy a house at a low price and sell it for a high price at the same time. We do 1031 exchanges. We study and unstand the added benefits of RE tax advantages. We see what you can’t. We find ways to outperform the masses in RE, in any market.
Let me do a stock comparison. You buy a stock because a man on tv said to buy it (then you shut the tv off while the next man says not to buy it - lol). We would invite a company president over for dinner, listen to him tell us about the great new product they are about to roll out, and how their quarterly numbers are going to hit off the chart, unexpected highs, and buy that stock. You are throwing darts at a dartboard. A monkey could do it. We are acting on inside information.
I used to follow the herd. I bought the latest, greatest stocks and mutual funds, and for years I couldn’t figure out why buying yesterday’s winners didn’t work. I learned how to do CRE, and somewhere along the line, the lights flicked on, I ‘got it’, and there is a good chance I will never own stocks again. There is just so little chance I can ever make returns in stocks that will ever compare to my guaranteed awesome returns in CRE!!! When I buy CRE, I know going in what my numbers will be, and they will be phenomenal (or I won’t buy). When buying a stock, unless using insider information, the formula is buy at today’s price, hope and pray it goes up.
Do you want to know why Warren Buffet wins at stocks? He doesn’t invest like you do. He invests like a CRE investor. He looks for angles. He buys from motivated sellers. He uses bulk purchasing power. The big news is he bought $5 million of BOA stock, right? Well, he probably bought preferred shares, negotiated a below market purchase price, with a guaranteed escape price, and the right (option) to buy tons more at a locked in price that will make him a ton of money if the stock does go up. He is playing with a stacked deck that the average stock investor can not possibly hope to match.
That is what CRE investing is all about. It is an arena all its own, and one that you, Leo, clearly do not understand (though you are in a good place to learn). No successful investor posting on this sight does deals making 8%… Would not even dream of it. We do deals like zero down, positive cash flow from day one, instant equity when we buy, and tax advantages (try to calculate the ROI, Leo!). But first, you have to know these deals exist, and then you have to hunt them down, and then you have to know how to put them together and make them happen. It isn’t just investing. It is part investing, part career, to be sure… But it also isn’t 8% ROI.
Best wishes,
Chris in FL
P.S. - Phil, sorry to respond to your post, and turn it into a rant on Leo… I got started on the buy/sell thing, and just couldn’t stop myself!
Yes, you can play best dart board for outside. A lot of dart loving people around the world and particularly in the United States and Canada, play the game outdoors. If the conditions are right, it does not take much to get started. Just hang your dartboard outside in the lawn or yard and let the games begin.
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