All Forum Posts by: Jordan L.

How does Liberal and Conservative come into a conversation about climate change? The earth's climate is ALWAYS CHANGING. Not only does the earth spin on it's axis and orbit the sun, it also wobbles and wiggles, vibrates and hums. The sun is also changing, creating energy through nuclear fusion near it's core. Our universe, our galaxy, our solar system, is extremely dynamic, ever moving, ever expanding, ever changing. Nothing is stable or constant. Thus our climate is always changing as well.

The damage that man is doing to planet earth is not harming the planet nearly so much as it is harming man himself. Once man is gone from the earth, it won't take long (relatively speaking) for the earth to cleanse itself of most of the evidence that man was here.

The reason we need to take care of the earth is not for earth's sake, but for OUR SAKE.

Climate is always changing. Correct. Punctuated change is not always happening. When the dinosaurs went extinct it was due to a punctuated climate change from a meteor impact that released dust and debris that blocked the sun.

Releasing billions of years worth of accumulated carbon into the atmosphere in a 100 years(a blink of an eye in geologic time) is likely going to change the climate at a rate that differs from the traditional climate change rate. Experts can make educated predictions at what might happen, just like a neurosurgeon can predict what likely will happen when he removes a brain tumor from one of his patients. But expecting a 100% accuracy in these predictions is unrealistic when things as complex like climate or the human body is involved.

If your loved one has a brain tumor removed and has unexpected complications, who do you turn to to guide you through the crisis? The neurosurgeon who did the surgery, his colleagues, another neurosurgeon, or a talking head on fox news?

1 Vote

Christmas dinner with the family. Talked with my uncle. He has a rental that used to be his primary residence. He bought it in the mid 80's for 175,000, paid off. It's now worth about 650k(no equity extraction). He rents it out for 3k a month(though it must have been less earlier). It's only been vacant one month in 14 years. He lives off this, SSI, and his 401k. His primary residence is paid off. He doesn't spend a lot of money. His wealth increases every month even though he doesn't work.

Now of course he technically is a RE investor in as much as someone who got company shares is a stock investor. Would you consider him a RE investor?

In large part this example is why I'm trying to get into RE. If he had just purchased one maybe two additional homes like this he'd be doubly/triply as set as he is now.

0 Votes

Originally posted by Kevin C.:

I absolutely know where I stand financially and track it on an almost daily basis via Quicken.

I run just about everything through Quicken to include stocks. Quicken has the ability to update stock prices on demand, and I do that almost daily.

I do not include depreciating assets such as cars, boats and motorized 'toys' in net worth calculations. I don't borrow when purchasing vehicles, and the ones we own are worth a decent amount, but I leave them out of the equation.

The only debt I have is on real estate and I have a minimum of 30% equity on each property I own.

As far as net worth growth, I have a dollar number in mind that I shoot for annually. I'm able to save a significant amount from my full-time job which in itself contributes to decent monthly growth.

I've been using quicken to monitor my stocks/mutual funds too for over 10 years. My NW has appreciated every year except for the blip in 2008.

I keep track of my RE through my accounting, but while I'd hope for appreciation on my property I'm not overly concerned about the equity of the property as long as the mortgage gets paid down.

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This is why so many lottery winners end up bankrupt. There's an understanding that one acquires while slowly amassing assets. While you might not become a money expert while building a portfolio be it 500k, 1 million, 10 million it's a process that requires various degrees of due diligence, saving and investing. While it's true the degree of fluency changes depending how much you've accumulated, at least most appreciate it. This process escapes those who come to wealth suddenly and not of their own toil.

5 Votes

Originally posted by J Scott:

For those who aren't skilled investors, diversification is an amazing tool. Over the past 80 years or so, a highly diversified portfolio has historically returned between 6-8% annually, which is pretty good for just sitting back and letting the markets do their thing.

But, if you can achieve even a few percent higher than that 6-8% through skilled investing (I'm NOT talking about speculating), you can significantly increase the speed at which you can accumulate wealth.

As any experienced investor knows, the key to wealth is compounding. To give an example for anyone reading this thread who hasn't done the math (not directed towards Bryan and many others here, as I'm sure they knows this as well as I do):

Let's say a 20 year old invests $2000 per year in a diversified portfolio (returning 6-8% per year). At 65, that person will have about $600K.

Now let's say that same 20 year old invests $2000 per year in something that returns 15% annually -- by 65, that person will have over $5M...

That few percent extra compounded return translates into a ridiculous increase in earnings. And that's just by investing $2000 per year!

Btw, earning 15% (or even 30%) annually isn't too difficult if you have a specialized expertise in some form of investing. Whether it's real estate, companies, stocks, etc, 15% is certainly achievable...

So, my vote is to spend some time becoming an expert in some form of investing and once you do, start plowing your money in...this is how Warren Buffett got wealthy, btw...

Whether it's stocks or RE or whatever investment the difference in effort to manage 5 miillion dollars vs 500k is significant. People want to be rich including myself. People also want to retire early. However, the greater wealth one has, the more time and effort they'll have to commit to preserve their wealth. And depending on how much time it takes may not necessarily equate to retirement.

1 Vote

Newbie here. Getting my 3rd sfr in 6 years. Not the most torrid pace. So far I'm in buy and hold mode. The equity of my real estate(non primary) constitutes 8 percent of my net assets. I'm hoping to grow it without having to sell any of my other investments. Are you guys 100% RE? 90%

0 Votes

To successfully complete our purchase of our 3rd sfr and get it rented out(in escrow right now). Maybe getting a 4th property.

0 Votes

Originally posted by Jad Allen:

I do not believe that China is capable of stopping a real devaluation of the United States dollar. In fact China in the long term would stand to gain tremendously if the dollar were devalue and lose its standing as the world's currency reserve.

Currently China sends goods to the USA in return for dollars. These dollars have no real value just perceived value. If the Chinese (or Japanese) have their faith shaken in the dollar they will quit propping it up (buying US treasuries). At what point do they stop throwing good money (goods) after bad money (the currently held US treasuries)? Bad investments are hard to accept, but eventually reality will smack you in the face.

They will then stop accepting the dollar for their goods. Will this cause financial pain in China/Japan? Yes, but it will much less than the pain felt here. I imagine your next question isâ€™ what will they do with all of these goods thenâ€™? How about selling them to their own citizens? While taking a short term punch in the gut, the Chinese will end up with a much more stable and desirable economic standing. The Chinese standard of living will increase and increase greatly while the American standard of living will drop and drop dramatically.

Or so I think, but I could be wrong. (in fact I hope I am wrong)

This is why I invest in China/Asia on a regular basis. It might even be evidence of future inflation(ie. prices going up for limited goods because standard of living goes up for Chinese). But I'm not sure this is evidence that we'll see people in the United states carrying barrel full of dollars to buy a loaf of bread(hyperinflation).

1 Vote

Originally posted by J Scott:

Originally posted by J L:

(sorry, I know another thread and I'll get off my soapbox now).

It's okay, this is the Political forum...no threads ever stay on topic... :-)

Yeah. But I'm a newbie and don't want be labeled as troll from the get go. If I only hadn't watch the Obama speech this morning...

0 Votes

All Forum Posts by: Jordan L.

Jordan L. has started 11 posts and replied 50 times.

Post: Have One ARM in Your Loan Portfolio?

Post: Hey, you environmentalists on the east coast....

Post: Is my uncle a RE investor?

Post: Do you know where you are personally?

Post: Diversification Versus Concentration of Wealth

Post: Diversification Versus Concentration of Wealth

Post: What percentage of you net assets is real estate?

Post: What are your Real Estate Goals for 2011?

Post: Do you believe in hyperinflation ??

Post: Homosexual renters vs straight renters. Doesn't matter so long as they pay?