All Forum Posts by: Andrew Lax

Anyone who got into the RE game after 2010 really hasn't been in the business long enough to experience a down cycle.  RE has been an easy game for the last 15 years.... 

I started in 1990 and never purchased a property solely on appreciation...  

If I cant make +/- 10% cash on cash there is no reason to risk $$$..

Values could be stagnant for several years ... and rents are leveling off .. 

Just my $.02... 

I am selling my 15 SFH portfolio as well ... About the same age..

Have your accountant run the cap gain numbers before you make a decision..

My properties average around 13% of sale price .. Most purchased around 100k and now worth +400k ... 

Many on here are assuming RE will continue to appreciate at these inflated rates  ...   Unless salaries catch up and expenses get under control (RET/Insurance) I dont see that happening ... 

I think a lot of you are younger and dont remember long periods of little to no appreciation.  I feel we are about to enter into that phase.... 

That said, there will always be deals and hope you guys find them - I am about to exit from the RE game :-) 

 Miami actually - we dont consider that Florida down here ...  but yes it's a little frothy here for sure.. but the rest of Florida could collapse and South Florida is another animal.  Its the East Coast LA ... 

I agree, if your time horizon is long enough RE is a fantastic vehicle to build wealth - its all I have been doing since 1991 .. 

You should show the math if a property was purchased  in 2006/07 .. 

Send those 12% first position loans my way please !!! 

LOL 

:-)  

 and what happens when the music stops ?   The days of significant appreciation are most likely over in many markets - so it goes back to fundamentals .... 

What would be an acceptable number for a Buyer to enter into a deal... 

Assume the property is well located with average appreciation ...

Selling some properties of mine and just curious what the average investor buyer is thinking ...

Thanks guys 

LOL -  "acted as and investment broker working on their behalf". 

They could have almost doubled their money in the stock market in that same timeframe  .... 

will reiterate - apologize and thank them again for the $$$ 

 Loan doesnt offset cap gain fyi .... buy for X (basis) ... sell for Y ... the difference is your gain at 20%... plus any recapture at your tax rate...