All Forum Posts by: Will Barnett

The first deal I did was a huge mistake. I bought 5 houses for 20k that were in the ghetto. They already had tenants paying 400 monthly rent. I thought at the time man what a deal the cash flow is sweet.

Of course most of the tenants never paid on time and some got months behind. I had no property management experience at all so things got really out of hand. I finally learned how to properly evict them and decided now I can put in good tenants that have been screened.

What I found out is that good tenants don't want to rent there. I reduced rents siginificantly but still no go. They sat vacant for months and were broken into and vandalized. I got rid of them and lost about 10k overall.

The lesson learned is that while low end properties seem like cash flow gold, the management headache dealing with that type of tenant wasn't worth it, at least for me.

What I find interesting is how banks downplay the effect this credit crunch is having on their overall exposure. Yet a month, a week or in this case a couple of days later they cry for help. :help:

Is the market truly that volatile? Or do bank officials really have to wear a 'all is well do not worry' mask to pump up investor confidence, despite the fact that everything is apparently not well.

http://news.yahoo.com/s/nm/20080314/bs_nm/bearstearns_dc_10

Wow when will it end?

Is the bank insolvency issue coming to a close, or is this just the tip of the iceberg?

I've heard rumors of adoption of a centralized North American currency much like the euro. This becomes more attractive as the dollar continues to fall. It almost seems inevitable, as national borders don't seem to matter much here anymore.

Precious metals seem like a good hedge against inflation.

Hey John I thought this might peak your interest. It is not really a book but more of on online short story that is about 15 pages long. She does have an agenda and that is laid out on the first page. Basically she favors decentralization of money and power.

Considering your background, I would be very interested in your opinion on this. Is this the rantings of a failed investment banker or something else?

I love reading a good conspiracy theory, even if it is totally outrageous. I came upon this the other day and thought it was so good, at least in entertainment value, that I thought I'd share it with BP. It's like Ludlum, Grisham and Gibson collaborated on a good novel.

http://www.dunwalke.com/

The amount of detail in this story is so great that it took me a couple of days and re-reads to fully digest what was being laid out. I did a little research and a lot of the references pan out as well.

Please don't flame me for being a socialist or some such. Just thought I'd share a good yarn, as it makes you think about things.

As long as the investments are sound, the more leverage the better. I think leverage is the key to growth and wealth.

For example, is it better to prepay your mortgage or to use the extra money in investments? A lot of folk will say pay off the principal, but I am of the opinion that there is a point where accumulated investments outperform a free and clear house.

I can understand the need with multifamily but frankly with single family I don't know if an LLC is worth it. Insurance for each house and then some sort of umbrella policy should be enough. The LLC just adds another layer of protection. I think most attorneys will settle for the insurance claim.

As for incorporating a rehab business with employees, that is a realm I know nothing about.

Welcome back

Looking forward to your posts and advice.

Taxes

More specifically capital gains