All Forum Posts by: Account Closed

Well I guess that they won't pay, which means you can't pay the bank, which means many will foreclose, which means the banks will go bankrupt, which means the government will print money they don't have to bail out the banks, which means your taxes will increase to pay for the money we didn't have to bail out the banks (and fund the huge lump sum golden parachutes that their board of directors will receive), which means we will have slick politicians make new laws and regulations we don't understand that favor the banks so in 10-20 years we can do it all over again.

Have fun...

1 Vote

Originally posted by @Mike Lambert:

@Account Closed

Imaginary equity on a computer screen. Really??? Your real estate equity is just a name on a property register, as is your stock holding.

@Joe Villeneuve

Percentages don't lie at all; absolute numbers do. If you read my post again, you'll find out that I was making the same argument as you did. If you leverage real estate, your return will generally be higher than in the stock market, assuming that you don't use leverage in the stock market. Because if you do, it's not true anymore. Mind you, in my answer to @Calvin Lin, I showed an example in which an unleveraged return in the stock market is still higher than a leveraged return in real estate.

What I didn't mention is that, ultimately, what's important ultimately is to compare risk-adjusted returns. If you invest in they stock market without leverage, your maximum loss is 100% of your investment. If you invest in real estate with leverage, your maximum loss is 500% of your investment. Some people might prefer a slightly smaller return to avoid the risk of losing more than 100% of their investment.

I can at least touch it and it has intrinsic value. I can use it for other things. But ultimately food, water and supplies are what really matter.

0 Votes

Originally posted by @Account Closed:

@Jason Allen we're in PCB, FL (have 2 duplexes - all units vacation rentals) and have had a few cancelations but also picked up some new bookings especially from the landlocked states around us. Seems people are cancelling for the obvious reasons but others are now booking with us who have had their travel plans messed up since they can just drive here.

Worst case situation is we can rent out long term/month to month and cover the mortgage through all of this and when it passes go back to business as usual.

If/when they close the beaches down is when it'll be interesting to see how it plays out.

This will show people why it isn't good to over leverage yourself and to have reserves on hand for situations exactly like this.

Yea PCB is generally a good market.

It's definitely wise to not over leverage and to have adequate reserves in the bank.

0 Votes

Originally posted by @John McGonigal:

@Account Closed though the temptation is there, we wouldn't put ourselves in that position. This COVID-19 experience provides a great reminder as to why our personal REI philosophy works for us... assume some risk(but not too much), diversify assets to offset that risk, and have the ability to cover the load for a while when $&@) hits the fan.

Plenty of people have.

0 Votes

Originally posted by @Victor S.:

Originally posted by @Account Closed:

Originally posted by @Victor S.:

Originally posted by @Account Closed:

Brother, the stock market is going to go down to its true value... zero. I'd hold off on that. Stick to real investments, not paper money and fiat equity. If you can't touch it and feel it in your hands don't buy it.

I thought I've seen it all, but the internet Nostradami (or is it Nostradamuses?) keep me on my toes.

Fed just lowered the rate to 0% and offered $700B in QE. What's next?

Are you aware of the negative ramifications of 0% and additional QE?

The value of your dollar is being lowered by the day because of this. 0% rates mean additional propping up of the economy allowing people to continue to over pay for acquisitions. This can't last, it's all going to come tumbling down. Luckily I won't have a single dollar in the scam market. Not a single penny in an IRA, 401K, etc.

Are you aware that the day your dollar went off the gold standard it became useless except for the fiat value that we attribute to it. Are you aware of the fact that the more money that is printed and circulated into the market the less your dollar is worth?

No need to tell the future when this has happened in the past. Just look at EVERY CURRENCY ever created.

We truly do live in an upside down world.

all i have to do is pull up any chart (S&P, for example) and max it out. it's truly a beautiful picture. you think you will still have your RE if the dollar were to disappear? owning buildings would be the least of your worries then.

Believe me Victor my trust is not in buildings, but it's far more robust than fiat currency and imaginary equity on a computer screen.

1 Vote

Originally posted by @Jeremy Z.:

@Account Closed

"Brother, the stock market is going to go down to its true value... zero."

Somehow you managed to make a more foolish comment than the since-deleted "Enjoy Foreclosure" post you made earlier. Impressive.

Ask yourself how much your "stock" portfolio is worth? What do you really own?... paper?... numbers on a screen?... You my friend are tied to a sinking ship called the stock market, bond market, IRA's, etc. to get out you pay a hefty tax, but you might as well save and invest for the long term because it always goes up right? over time?

How long do you think this will last? The economy should have completely collapsed in 2008 but instead it was bailed out and propped up with YOUR money. When the fed goes down to 0% and more QE where do we have to go? at some point this bill will come due and if you think the institutional banks and folks on wall street are going to pay the bill then you my friend are the foolish one.

Good luck.

0 Votes

Originally posted by @Bill F.:

Originally posted by @Account Closed:

Originally posted by @Jacob Lapp:

For us real estate investors this is a good time to have rental properties while we watch others portfolios crash with the stock market.

Other than a moderately safe mutual fund I contribute to monthly and my 401k, I am not involved in trading stocks.

Do you guys think this is a good time to buy stocks while they are so low?

I made an account on Robinhood and found some stocks that seemed like good investments. BAC, V, FB, MPC and ET. If I invest 1k and they return to where they were before the virus, in a year it will give me a whopping $500 return. :/

I don't have the knowledge of the market to be comfortable investing 20k (hoping to make 10k in a year).

Are there any stock pros here that have any tips for someone trying to capitalize on the low stock prices?

Thanks in advance!

I have an honest question for you if you don't mind.

If you do think the value of the stock market is zero, then why buy RE? If the stock market goes to zero, then RE, at least in the short run, will also be zero.

The only currency that will matter will be food, water purification systems, guns, ammo, and antibiotics. After, I don't think there will be much of a demand for rentals nor will the names listed on the deeds at the county clerks office matter too much. We will be in a much different world with an entirely new understanding of the rule of law.

Thus, if you really believe that equities are worth nothing, I don't think you have really hedged by investing in RE.

Great point!

Because I don't get into prepper stuff here on the forum, but you're right.

0 Votes

Originally posted by @John McGonigal:

This too shall pass.

My wife and I purchased 3 condos in Branson since last November. Spring Break business was booming until a few days ago. Summer bookings were coming in regularly until a few days ago. We’ve been able to rebook some of the cancellations at a much reduced rate, but the once full March calendar is now increasingly empty.

Luckily, we didn’t sell the farm for this business and have the ability to weather the storm with excess from my W2 job, along with whatever extra we get from the STRs. I know many others aren’t so fortunate. We wish all of you luck and bumper crop business in the summer months.

It's good that you can cover the expenses from your jobs. How would you react if you have more properties than you could cover with your W2 income?

1 Vote

Originally posted by @Michael Baum:

Hey @Account Closed have you read any of the other 20 threads on this subject?

I think it's important to keep this in the forefront of people's minds.

1 Vote

I guess the snowflakes melted under the pressure of my last forum (banned) post. Sorry but reality doesn't care about your feelings, or mine.

The truth is a lot of people in the Airbnb, STR, VRBO, etc. market are potentially about to go out of business. This is not funny, I don't think it's funny, I don't want you to fail even if it does prove me right.

How do you assess that we handle this situation if bookings continue to cancel over the next 2-3 months?

How will you weather the storm? How long can you go without income on your properties? How can the STR community both here and locally band together to save those who fall behind?

Thanks.

1 Vote

All Forum Posts by: Account Closed

Account Closed has started 17 posts and replied 474 times.

Post: Coronavirus and late or no rent payments

Post: Good time to get in the stock market?

Post: How do you think coronavirus will affect the STR market???

Post: How do you think coronavirus will affect the STR market???

Post: Good time to get in the stock market?

Post: Good time to get in the stock market?

Post: Good time to get in the stock market?

Post: How do you think coronavirus will affect the STR market???

Post: How do you think coronavirus will affect the STR market???

Post: How do you think coronavirus will affect the STR market???