All Forum Posts by: Peter Seely

Hi,

Buffet will instead negotiate some great preferred share deals on some more public real estate companies like TOL instead or takeover some new ones. Much less hassle for him and Berkshire. Berkshire already has interest in a few so there is his agenda.

From Forbes today:

Perhaps the biggest error on Buffett’s part over the past year, however, has been his persistent optimism towards the housing market. In this year’s letter, the investor offered a mea culpa, noting that, while he expected the residential real estate market to claw back in a year or so, this forecast was “dead wrong.”

With companies like Clayton Homes, Acme Brick, and Johns Manville listed under the Berkshire Hathaway umbrella, it is no wonder that Buffett is anxious to see the housing market snap back. In addition to helping his own company, the investor has proclaimed on a number of occasions that he feels this sector is one of the biggest weights on the nation’s recovery picture.

His timeframe may have been off, but the investor is far from ready to give up on the U.S. housing market. On the contrary, in an interview with CNBC at the start of the week, the Nebraska native looked favorably towards the sector, admitting that, given the current low rates, he would be buying single-family homes if he was able to.

Peter

Hi Nate,

Sorry to hear the PM is not working. I think your first step is approaching your PM and setting guidelines. Be stearn, see his reaction and take it from there, you may be pleasantly surprised.

Peter

Interesting thread. Now does this change your opinion at all if they are Section 8 tenants and rental income is paid direct to you by Gov? I have also heard if section 8 tenants, the Gov will cover repairs/issues if you notify them within a reasonable amount of time. So, I would think as long as you have somebody who can commit to checking out the home monthly for repairs and issues so that you can report them and claim the expense to the gov and recieve the funds for the repairs, this would minimize some risk as far as having the place destroyed. I have yet to verify this with Section 8 clause etc but will do. WOuld love to hear anyones experience in general with Section 8 tenants?

Thanks

Remeber: Money is made when a buyer buy's the house not sells it. I think the way times are now, all things need to be considered prior to putting an offer in, including comps in the area and needed repairs.

Peter

I am having a little difficulty but am determined to get something under contract again then go visit during the due diligence stage and all going well close on it. In addition, as Jscott said, building a team that you trust and feel good about. Getting the contacts and expertise of people in the field that share their experiences. BP has been a blessing in this regards.

Peter

It is sad to see such a successful CEO, Businessman, and Role Model have to leave the company he created due to health reasons. AAPL stats speak for themselves since he became CEO in 97: Mkt Cap increased from 2 Billion to 348 billion, stock increase of 9020%, and the hundreds of products and he changed how we listen to music,etc...

Hi,

With curiousity, If I decided to flip and I own a SMLLC and am a non resident alien and due to this are unable to use an S corp(owner can't be non resident alien), what is the next best thing to do in regards to tax for out of state investors that are non resident aliens?

Thanks

Peter

Hi Tom,

From my research as far as protection goes you likely will want to have the properties under separate LLC's otherwise, should a lawsuit arise against you, you are at risk of exposing all three properties to loss under that LLC.

Remember though, an LLC alone isn't enough to protect you, you should consider liability insurance and opening separate bank accounts for your LLC's and keeping personal separate from company.

Thanks

Peter

Hi Tara,

Was your market cash investors (priced within the cash investors ranges)? If so.....

Maybe your investors threw their cash back in the market while things dropped, they will likely be back after making a quick profit after last week.

Maybe your cash investors had the cash invested and are waiting for the markets to recover.

Either way, I would't panic after four days, especially in this volatile economic market.

Peter

Hi all,

The downgrade worries me but what worries me more is the amount of debt the US Government is in, it didn't take a downgrade to make me realize they are digging hole which will be difficult to get out of.

What would happen if CEO's of large companies ran their companies like that? The US Government needs to have consequences and the downgrade is the start of these consequences for their reckless spending.....in my opinion its about bloody time.

Side note:
I say, everyone run like hell from stocks and buy as much physical gold as you can afford and hold it for 4-5 years or so.....lol if only it was the easy.

Another item that adds to this NEW GLOBAL Correction is that the second largest economy (as far as GDP) is also in big trouble and if a solution isn't found shortly amoungst the Euro Nations this will add fuel to the current economic mess which could change the situation from a correction to a recession and possibly a global depression.

The main question I have is how will all this effect lending, the current real estate market, and rental markets in the US compared to hot emerging markets such as Brazil or Uruguay?

I am still hoping to get in the Georgia real estate market sooner then later so maybe these developments will reduce demand and prices further so I can get a real steal...one can hope.