All Forum Posts by: Eric X.

@Account Closed  The US response to coronavirus has been terrible.  Although this isn't going to be a walking dead scenario...you don't want the USA to become Italy.  Issue is that this is very easy to transfer and survives quite a while even in people with zero symptoms.  It puts the elderly and people with pre existing respiratory issues at great risk.  Just because the number of fatalities is less than the flu doesn't mean it doesn't need to be taken seriously.

There will always be ones to take advantage of a falling market.  That won't change.  The reason the market came down is to prevent needless infections and deaths.  Flattening the curve is a real thing believe it or not. You might be fine where you are at but places like NYC are getting hammered and hospitals are at capacity of higher. 

Panic? probably bit too far but it is probably prudent to be safe & cautious

I think it is important to have a warchest or to at least start building it.  Probably won't see significant prices declines for a year or a year +.

Stock and options are where it's at for now.  Don't think this is the bottom but tons of money to be made due to the volatility.  Buying puts the last few weeks has basically printing money.  Companies like boeing and United airlines and ripe for bailouts etc etc so educated investor in the market will make a killing.  It does take constant monitoring though.  

I just backed out of a deal .  94k cash for a property worth about 140k after reno.  15k reno budget. Still a solid deal but I'd rather have a warchest in a year or two  and then make it rain when there are deeper discounts.  

I haven't gotten any calls yet but will definitely work with all my tenants (they all happen to be pretty solid) that have issues.  Also I don't believe anyone mentioned A class people is better than B class or B is better than C.  It is just easier to pay the bills (most of the time) for A and B class than C class.  My A class is filled with engineers & doctors.  B class is teachers and mostly working professionals.  I don't have too many I would classify as C but they are more blue collar/restaurant.  People wise...they are all great. But their ability to pay rent in a time like this will vary significantly. A class can dip into savings, retirement, CC, friends and co workers and probably come up with the rent.  C class might find that difficult.  

I think at the end of the day, we are all just people and hopefully everyone can work things out in the end.  It is real estate investing after all...not real estate money tree.  This is a true test to see if you've built a good system that didn't' over leverage with healthy reserves.  

I'm going to pay my mortgages because it is the right thing to do... if you have the means to do so.  If you aren't over leveraged and have the reserves, there should be no reason why you can't pay the mortgage.  

Dealing with mortgage companies and banks are a pain in the rear and I'd rather not do so.  Harming your credit if your bank doesn't provide any type of deferral is going to hurt more in the long run. 

for best rate 780+ credit and 25% down.  without knowing your profile and numbers, no one can give you any accurate numbers.

Just talked to local title company in Illinois.  Apparently Title companies are "essential" and will stay open even with shelter in place.  Will just practice distancing and safe habits.

I mainly invest in B properties and while it is tbd whether or not my tenants will fall behind, very few are in the retail/hospitality business.  I think it is mostly c/d

Unless you want to actively manage (like actually pay attention), put it in a balanced 3 fund portfolio and forget about it.  Really depends on your age as well. I am mostly cash the last 5 years or so (so i missed the way up and the way down) but will probably jump in again in the next 3-12 months and then just incrementally increase my positions over time.  Go to bogleheads and lookup the 3 or 4 fund lazy man portfolio.  

Note that all my stocks are in i401k retirement plan.  Non retirement is still basically 100% real estate and cash.  Won't have to use retirement but it might be nice to buy something stupid when I'm a bit older. 

There is a reason why probably 90% of REI don't make it. Bad deals are a big reason why.

You CAN still buy real estate if you are in it for the long haul and the cash flow makes sense to you.  Housing prices won't crash overnight so if you want to be patient, it might be a while