All Forum Posts by: John Collins

Grant Cardone is a pyramid scheme fraud and just had to let go of his entire staff without notice. I mean you literally could not have chosen a worse example. He also has a lot of empty units in his complexes and is using dubious methods to fill them, unsuccessfully. Just because someone has bro vibes doesnt mean he's your bro!

As Warren Buffet says, It's only when the tide goes out that you discover who's been swimming naked.

Multifamilies, maybe 3-4 units, are great starting points with high returns for investors. But they aren't easy to find. The good news is that you can start offering well below market as the virus will speed track the RE bubble burst that was expected to be coming. I had cash on hand for this.

Talk to different lenders and see what interest rates you can get with 20% down, 25% down, 5% down, etc. Then look at rentals comps, demographics, etc. and see what your cash flow can be. Then go for it. 

1% rule isn't make or break, if you find a SFH in a good neighborhood or school district, fairly recent and the numbers check out, its fine to get into it much lower than that. Start analyzing the numbers and stay away from syndication to start out-- really that's just giving your money to others and not having any control over it. I like the idea of investing in situations where you have control over your own destiny.

What the hell are you talking about? You can cash flow without rental income? At what price point, what mortgage did you take out and how much interest are you paying on it? Simple math is all I ask for.  

What are 3.5 caps?  The cities you listed are outliers -they are the most expensive places to rent because people will live in anything there, even $3,000 / month shoe boxes. When demand is infinite you can deal with existential philosophy and sell snake oil over and over again.
That is not the case in 95% of the RE market.  

But as soon as they make any money they want nothing to do with each other... it is the same hypocritical cycle over and over again. The problem is people are struggling in a merit based society and global capitalism only makes it worse for them as the wealth got spread around. 

Also, here are things I didn't do when I was poor and owned nothing
1. Didn't have babies or feel entitled to have as many as possible
2. Didn't waste money on drinking and smoking
3. Didn't complain, just put my head down and adjusted to various situations

As Americans if we keep pandering to the lowest hanging fruit it will be a race to the bottom. Trash sells as we see with reality tv and the kardahsians, but it is not sustainable in any way and the mentality should be called it immediately. 

As far as the situation you shouldn't have to pay mortgage for next 1...2... or 3 months and can take it up with your bank and govt. 

Ohhh man, slow and steady just doesn't work in Hawaii. Gotta be loaded to start out with or a part time owner of a hotel. 

Wed was selling day part 1..

BA 100 sold 169
EOG 34, sold 40 (will get crushed tmrw)
HD 160, sell 184
BP 17 , sell 24 

Open positions:

TSLA 400 
SQQ 22 
SPXU 25
TVIX 360 (got in again)

Long term Open, forget about them

Dis 91
PSX 50

Today is the big day with unemployment numbers, but everyone knows what is coming so there may not be the panic many are predicting. 

They'll be in the millions, 4-7 million, and ofc would be higher if everyone unemployed actually filed them. 

You also have affluent people like dentists filing for them which makes the situation unique 

Not sure they fixed loophole in stimulus where low wage workers would make more by not going to work,  will crush small businesses already struggling with margins

the good news is in light of a recession, talk has begun of many manufacturing sectors not only being moved out of china, but back to the US. So jobs aplenty, but will the ultra wealthy ever agree to sharing a bigger piece of the pie? will the poor and lower middle make better decisions with their money and lifestyle choices? Population is way too high for our resource and environmental load, calamity frequency is only increasing. 

There are also things you can do to naturally boost your immunity WHILE in quarantine. Maybe life principles, certainly not short term shields against infectious disease. 

Eat organic, nutrition is by far the most important thing. Stay away from refined sugars of any kind and make fresh food you consume the day of making. 2 healthy meals a day is fine if you're not running a triathlon.

Take long, slow breaths. Meditate, tai chi, yoga, it all does wonders over time but even in the short term, it will bring your body to a natural state of calm and balance. 

Do not sit next to your phone or wifi connection all the time. 

Invest in the movies. Break the cycle of formulaic crap hollywood keeps churning out with "actors" cast based on diversity and social media rules. The Chinese are gonna have a lot of disposable income now that they can't spend it on exotic dogs and rats, you hope, young kids will be tired of the same usperhero garbage now that they see a virus can end them all, and bring back cinema to hollywood!

 LOL, Tvix is not a long term hold stock. It's something you ride short term and you keep your eyes on like a hawk. short term it is very risky and for experienced traders with markers, but long term it is kamikaze. 

I just sold UAL this morning, after buying when they went to 20.. 

Will sell Boeing tomorrow as I also bought low. 

I do not think air travel will be the same for a while now, & the ones that do make it out even with bailouts could flounder at lower prices for a long, long time. Some, like LATAM in Brazil, will go under IMO, and new players willcome into fold to take market share. Betting on business and personal travel greatly reduced for 18 months and perhaps long term measures taken with fossil fuel crisis a real issue. 

Stock wise, I pick blue chips and sit on them forever. A boring long term investor but it's served me well.

A time like this is the time to go in for the long haul but always be cautious with what you think are sure bets like AIRlines, because as previously mentioned, the numbers and debt show they can flounder for a very long time even if they don't go under. I will not be holding any of them long term.

During this first drop (and yes, there will be a new drop after this artificial invisible money injected climb), I got in on

UAL - 20 , sold 30
LATAM- short at 5, got out at 2.5
DVN - short at 8.7 
BA - 100 , open
EOG - 34, open

HD - 160 , open
PSX - 50 , open , long term hold but very very solid company 
DIS - 91 , long term , little nervous about theme parks remaining solvent
BP- 17 , open
TSLA-400 , open

Didn't touch any biotech pharma companies with hopes they find the cure, very much a stab in the dark.

and the big one..

TVIX - 135
Ended up selling at 550 and as you saw it went way, way higher than that, but that is something beginner's shouldn't touch as it is not just an inverse of the DOW and can flatten you in a hurry. 

Flash in the pans like APRN or WAITR I stay away from, sometimes the gimmicks work out but long term you can't monopolize and scale something like food delivery in capitalism unless you invent the tech for the greatest drone ever. 

Days like yesterday can make even the biggest amateurs look brilliant, so never rely on them but always cash out on them if you bought during the drop. News cycles and market reactions are my main drivers, and a little technical data to determine the exact point / day I want to sell. 

Of course, I'm quarantined and have tons of time to waste. I'll put all my gains into real estate rentals =]