All Forum Posts by: Account Closed

I just recorded part one of a segment talking about that. I am not sure exactly when it will be released into the show stream.

But, in general the amounts you are setting aside each month for long term maintenance needs might be best be held with a tiered strategy with some/much of it set aside in ETFs (Exchange Traded Funds). These are bought and sold just like stocks. Then you combine that with an appropriate covered call strategy. This will generate more income than just parking it in a CD or savings account AND if you set the parameters correctly your risk is not very much more than a CD.

Then, when your real estate is throwing off real cash each month over and above what you need (or want) to spend each month you can look at other options for that money. It might be to reinvest it in more properties but it might be appropriate to look at things like REITs. I tend to like the privately traded ones. Or a more aggressive options strategy. Or ETFs. Or join an angel VC fund. Or another type of lending fund.

But, you do these things as you grow into them. Right now, you should concentrate on building your real estate investing business and worry about the other stuff when the time comes.

Some argue for concentration because they get the best returns and I say to each his/her own but the 1980's taught me how quickly the rules can change so I favor diversification.

Originally posted by abhyler:

There are so many different methods in real estate...I got to wonder, what are the most used methods by investors out there? I'm working hard on a plan to actually free myself from the rat race and be an independent R.E. investor. The methods I use are buy/rehab/sell and buy and hold. I haven't done a sale in a long time now but rentals are good ! The issue I find with just buying and holding is that it'll take me way to long to reach independance.
Share your methods and your thoughts.

:D

Flipping and wholesaling are not investing. At best you have created a job to replace your current job. Many love it, many swear by it but that will not make you financially independent. That does not mean it might not have a place in your business model but it should not BE the model.

Buy and hold is the only strategy that fulfills the goal of financial independence through real estate investing. You are able to buy an asset (house, condo, duplex, apartment building, whatever) and have someone else pay for it (the tenants) while you enjoy all of the financial advantages of owning that asset.

The devil of course is in the details and that means managing that rental asset. Some, like MikeOH here do it all themselves, others like me, don't. You need to figure out what your strengths, temperament, goals and desires indicate in how to manage your properties. I can manage my properties like MikeOH does, but I choose not to do so. That does not make my choice right or wrong. We have different business models.

The ultimate point is, you are building a business and you must look at every decision from that viewpoint.

I would also argue, you should be looking at some point to diversify beyond just real estate investing.

The issue isn't that they have an information product for sale.

The problem is the misinformation, half truths and out right falsehoods some of them use to market their stuff. The problem is when they claim some super secret only they know but will share with you for $99 if you buy their book. Then they tell you the real secret will be revealed in the $499 home study course. Then you are told to really learn the techniques you need the $999 weekend seminar. Then you're told you need their coaching or mentoring program to realize your full potential and that is just $500 a month.

The other good one is the "free" offer of something, but you pay a small shipping and handling charge (or a $1 donation to charity as I recently pointed out in a podcast). But the fine print signs you up for their monthly "service" at several hundred dollars a month unless you cancel. Even those who cancel report being charged and of course, there are no refunds.

Those are the ones I made fun of on the satellite feed and on the podcasts like the one yesterday. Which, apparently the mods here thought was a bit over the top since they deleted my thread where I asked others if they thought the parody went too far.

These are the types I am going to continue to make fun of and talk about their bogus programs for as long as I am on the satellite feed and the podcasts are produced.

No, I am not on a crusade to wipe out the gurus. I am having a ball with the gurus and sharing information at the same time. The feedback has been positive so far and at least a couple of times a day someone will send a comment saying they learned something that will help them in their investing.

I think Jeff T says it best when he says, "Those who can, do. Those who can't, guru."

nationwidepi,

My point is, the change in the definition of a switchblade is a policy change that is happening right now. That piece of legislation is just that a piece of legislation still to be debated and amended and possibly passed.

Worrying over that legislation is pointless at this point. But, policy decisions are happening daily, without any input from Congress in many cases, and no one seems all that concerned about it.

They are too busy trying to fan away the smoke to notice the real actions from the man behind the curtain.

Anyway, as someone on another board said about this bill, they will do what they do, then I will do what I do and life goes on.

If you are going to worry about actions taken by government, things like this...

http://www.worldnetdaily.com/index.php?fa=PAGE.view&pageId=100679

have FAR more impact on your freedoms than any change to owner financing rules.

Just sayin'.

I HATE big government control, but Jeff is absolutely correct. This is very much ado about nothing.

Something like this seems to come along with every Congress and yes the guru-scum are scared to death by it because it upsets the systems they currently sell. Well, just in theory because most of them are crap anyway.

IF this passes and gets signed into law, then you can figure out how to take advantage of it. For example, the way it is currently written the use of entities might completely eliminate any affect the law would have.

That is not a legal opinion.

I'm just saying, there is enough stuff to worry about without yelling the sky is falling every time a Congressman passes gas and it gets written down as proposed legislation.

Originally posted by Karen Parker:

But they did start out as a democracy as I stated.

At the national level we were never a democracy, not ever. The Declaration of Independence sets forth the supremacy of the individual and the rule of law. That is the foundation of a Republic.

I would encourage you to read the Federalist Papers and the many published diaries of the authors/signatories of the Declaration of Independence, the Articles of Confederation and the US Constitution. You will very quickly understand how they feared democracy and tried very hard to make sure we stayed a Republic.

Also, none of the states started as a democracy. But, that is for another discussion.

Also, if you really want to confuse someone ask them who the REAL first President here was. Then remind them it was NOT George Washington, he was the eighth. But, Washington DID vote for the guy.

Originally posted by Curt Davis:

Bird dogging is not illegal.

RESPA and those who enforce it disagree with that blanket statement. The reality is, if it is NOT a RESPA transaction there is no federal prohibition, so you have to look to each state. If it IS a RESPA transaction, it is a violation at the federal level.

I assumed she was looking to do transactions not covered under RESPA, hence the need to comply with the state laws of LA.

I'm not sure your assumptions about him only being able to get a business license if he was legal are correct. The bureaucrats issuing business licenses are more interested in getting the business correctly categorized and collecting the various fees. With the emphasis on fee collection being paramount.

As to finding an attorney...

The very first question you should ask ANY potential lawyer is...

"I want to do birddogging/consulting here in LA. How many clients do you currently have doing what I want to do?"

If they say, "none" you have more dialing to do.

Understand, this is appropriate for smaller deals. No one is going to buy an apartment complex of any size without verifying the details.

For SFH we do exactly what the others here are saying. We have no inspection contingencies. In fact, the only contingency is clean title.

However, for the apartment complexes we buy, our private lenders and partners REQUIRE proper due diligence be completed.