Re: Government pull us out of it- HA! - Posted by Tony Colella
Posted by Tony Colella on January 06, 2009 at 12:58:58:
From the posts you have written on this topic I believe you and I are much on the same page but I do try and soften my economic tantrums here as many do not care for such bantering or view the political aspect as outside the norm of this forum. I disagree there as well but still try and moderate my own posts on the subject while getting (and identifying as such) my opinion across.
I could go on for days about my concerns over the economic nightmare as I see it, the mindsets such as ($700 billion is too much mr. secretary but make it $850 billion mr. conressman and we have a deal) does not sit well at all with me, the spend more solutions, the adding of trillions of dollars to the economy (where exactly did we get that money from and who will be paying that back?), the idea of gov’t “creating jobs” … again, who pays for those jobs. The ideas of nationalizing public and private business … like I said, I could go on and on.
This type of “help” will have long lasting (neg) effects for future generations but I believe history shows that they also delay recovery by years if not decades.
Re: " How willing are you - Posted by Tony Colella
Posted by Tony Colella on January 06, 2009 at 13:10:43:
Simple living has always been my goal with this game. I used to call it “early or semi-retirement” but it all boils down to simple living. Keeping expenses under control has always been the key. During the acquisition stage this was harder to do and yes, leverage was a factor.
My original plan had always been to own and operate my properties myself, doing the work myself (much like Lonnie did with his rental units before investing the Lonnie deal) until the year 2020. (Twenty-twenty just sounded kind of appropriate).
I then planned to either self finance the sale of some properties or outright sell some and pay off the few that I wished to keep for my long-term retirement.
I like the idea of having about 10 or 15 free and clear rental units that have been updated to my “landlord friendly” standards so that they rent well, have little opportunity for tenant damage and any maintenance repairs are few and easy to complete.
Depending on when and how the credit crisis rights itself, my exit may come earlier or later but I honestly think that with some work the 2020 date is still the on the far end of the scale.
The credit crisis and highly emotional stock market changes money investing not only on a bank level but also on a hard money type level. People are putting money into bonds that make nothing or even cost them money just to be safe. I don’t believe it will be long before those type of folks are looking at income producing properties as a better alternative. Hard money rates should come down, non-equity investors and equity investors may seek partnerships in REI deals when before they had not or may return and be happy with safer deals with less return. Just my thinking anyways.
Posted by Celeste-fl on January 06, 2009 at 16:32:13:
I like your plan. The 2020 date will be here before you know it. You know its funny when you have a little bit of money it changes the way you think. When I started out I came from a real poor family and was hungry for deals. I would use hard money and take on deals without fear. I had nothing to lose. Now I’m scared I’m going to end up poor again. So I take on alot less risk and sit on the sidelines more then ever before even though I know I need to buy while the getting is good.
Re: " How willing are you - Posted by Tony Colella
Posted by Tony Colella on January 06, 2009 at 17:03:08:
The advantages of a simple living type approach is that you learn to do things for yourself and that knowledge can never be taken from you, even if you do lose possessions.
The greatest value I place on my journey that began with Lonnie deals and moved into land/home and small parks are the hands on skills. I never knew how to fix anything until I bought my first mobile home park. Now it is what I do most and enjoy the most. There is a feeling of some security that follows self reliance.
I don’t want to lose anything anymore than the next person. I have also learned that the more you clutch something, the easier it is to lose. Much of what we hold dear, in today’s society that surrounds us, is really not of great importance in the big picture of life.
I only know to keep on keeping on, doing what I know to do while endeavoring to learn more each day. I try not to limit my learning to just investing anymore. I still have that passion for it, don’t get me wrong and I understand that this is the path that leads me where I wish to go. I just want to use this time to grow more than just my business. My acquisition stage is more likely than not, over.
Investing was intended all along to provide me with the opportunity and time to explore and enjoy things while I can and not to just hope and wait to do so “when I retire.”
Posted by Celeste-fl on January 06, 2009 at 18:18:06:
How do you do it all yourself and still have time for investing, family and friends. Just doing all the repairs yourself is like a fulltime job. Finding deals ,handling tenants and doing repairs take up alot of time and can be very stressful.