All Forum Posts by: Chris Gawlik

@Troy Whitney People are going to do what there going to do. I said I purchased some mining stock after another member said it may be a good idea. I let her know that I had already done that as a hedge against a falling dollar value and the general economy. Does that mean I have my entire stock portfolio in gold, silver, and mining stocks. No. I am almost totally out of the stock market. That being said, if you read my original post. The only advice I gave is for new people to be careful and hold off for a few months to see what data comes out. Ohh yea and Im not writing a thesis here as you can tell from my spelling and grammar. Just chatting it up with people about the economy. Ill try and stay more cohesive for you though.

@Mark H. Porter So when you say much more management, do you have to deal with people not paying the rent much more often. Would that be your biggest problem? Do you have section 8 tenants?  

@Jay Hinrichs Yea I like your perspective on this Jay. I also wanted to hear from those who are currently and actively involved in this nice. I did take a look at the other posts, most of them bringing up the word slum lord, but nothing seemed really current and did not seem like the people involved in this asset class gave any advice or talked about there current experience. 

@John Mainwaring Hey John, interesting story. I hope you guys end up on the plus side of things at the end of it all. Good luck starting a new practice. Whats going on with the repo market. I did not read about that?

I think with the economy the way its headed there is going to be a need for more affordable housing.  

Wanted to hear from those of you who are successful in the C and D class property niche. How many properties do you have? How do you handle repairs, compared with other B+ and A type real estate classes? How and why did you choose this niche? Are you still currently buying this type of asset? What state and local areas do you buy in ( please be as specific as you can )? What are the advantages and disadvantages of working with this type of asset class?  

B or B minus areas in Riverside may be a good place to look for some cash flow. Redlands is pretty pricey, but keep in mind there is a rough patch in redlands. There are some good deal sometimes on the out skirst of those areas. Most of redlands is A+ high end real estate but around the war zone you will find a few B and B minus areas as well. Its tuff though because if you don't study or know the area its hard to tell them apart sometimes. As you start moving from the rougher area up towards Redlands University you will find some areas that may interest you.   

I understand what your saying. You want revenge for what the tenant has put you through. It would be pretty funny to see there face when they showed up with no doors or toilets on the house. So I think your joking right. If your not, don't do it. Its just not going to be worth it. Besides legal stuff just take the high road and move on. Even though you hate your tenant and theirs probably much more to the story then your telling us. Words spoken and things we don't know about ect., its just better to get the negativity and stress out of your life. After all your tenant is probably in pretty bad shape financially or just with there lives in general if there not going to pay the landlord for that long. Don't make a bad situation worse and just move forward repair the place and find a better tenant. 

@Jim Spatzenfeld Some people are in denial. Its very hard for them to look forward on all there investments and say, Dam, I'm going to lose some equity in the next year or so. Or dam, will my renters be able to keep paying me if the economy gets worse. Its pretty tough to face reality when your so heavily invested or so much of your life and livelihood can be affected by a correction, but to me Its just common sense. I have never seen the stock market or the real estate market so on fire in the face of such turmoil and volatility. This is one of the most uncertain volatile things that's ever happened in the history of the US. Yet the stock market has reached new highs, and the real estate market is on fire. To me those are warning signs. It just does not feel right.  

@Gail Coefield Yes I am taking a hit paying some capitol gains taxes. I have done very with appreciation in CA, but keep in mind I am small time investor. Just a middle class guy with a 3 unit. I sold my primary home, but will not have to pay taxes on that because I lived in my home for over 2 years. So its easy for me to cash out. Also my 3 unit is a bit older and the systems are breaking down. Old wiring and galvanized plumbing. Its going to need a new roof in a couple years. It makes my decision pretty easy to cash out and take what equity I have gained on my investment. 

I like J Scott's advice. He is the host of the bigger pockets business podcast. He just did a recent pod cast with Brandon Turner and David Green as well. Bigger pockets podcast #397. He is telling people, that what ever property you don't want to hold for the next 5 or 10 years then you should sell it. If you love the property and your love your cash flow then hold it. He talks about taking into consideration the worst case scenario, and if your ok with that kind of risk then hold it. If your not then sell it. I like that line of thought. Yea and by the way he thinks were up for a correction as well.   

@Eli Boyden Totally agree with that 100% already done. Gold, silver, and mining companies. Love it, great idea.