All Forum Posts by: Robert Steele

I have to agree with Bryan here. I admit there are times when I have wondered if I should have taken the easier path of dollar cost averaging into a index fund and closed my eyes. Besides being a huge Fed fueled ponzi scheme I don't like the stock market because I cannot control what the companies listed on the stock exchange do, including accounting fraud. At least with REI I am the captain of my own ship.

Now the investment that got away that I really lament about is not getting into gold in 2001. In fact I got into it in 2006 but not in nearly as big a way as RE.

I know you can get out of any lease on domestic violence grounds. So depending on who is on the lease have either you or your spouse beat the crap out of each other ;)

Quantitative Easing Explained - 4.4M views

http://www.youtube.com/watch?v=PTUY16CkS-k

This is one of the reasons I am so bullish on RE at the moment. Even if the market takes a long time to recover from the recession and even if mortgage rates rise, the amount of inflation coming down the pipeline should help RE to perform handsomely in nominal terms and probably come close to treading water in real terms. A lot better than can be said for those Federal Reserve Notes in your wallet.

Exactly! that is why paying the big bucks for the professional to certify that the property is mold free is a must from a liability point of view. But paying the big bucks for the professionals to re-mediate the mold is not necessary. In fact, I avoid it as they charge like wounded bulls.

And as someone else already said on this thread I think; DISCLOSE, DISCLOSE, DISCLOSE!

Yes I have noticed this too.

I think it is tied to the economy in Texas. Employment is better than the national average and the 2010 census painted a very robust picture for Texas in terms of population growth. In my book they are the two key ingredients for cash flowing properties.

I have the feeling that a lot of these investors putting money to work are from out of state. Perhaps people who made fortunes in the bubble states and got out while the getting was good now see Texas as the next big thing.

Just my 0.02 worth from what I see going on in the trenches.

Err that is not how it works. They take a $120 deposit (paying you 1% if your lucky) and then loan Mr. Joe $1200 at 5%. The $1080 difference is created out of thin air. Welcome to fractional reserve banking.

So they pay you 10c interest per month but collect $5 per month in interest on the loan. What is the spread there?

A very interesting thread.

I won't even look at a property unless it will make $300/month cash flow on paper. This is Rent - PITI.

I have this argument about owning free and clear versus levered up with mortgages with my spouse and with a fellow investor friend. They like the feel good feeling of free and clear. They also like the fact that they can get closer to retirement with fewer properties. I like using leverage because that way inflation pays down my debt for me.

Here is what I have in my lease:

I also send them a letter prior to move out that I lifted from the book "Landlording: A Handymanual for Scrupulous Landlords and Landladies Who Do It Themselves"

Only return what you she is legally entitled to. This is not a popularity contest.

I've said it before and I'll say it again; I love moldy properties!

http://www.biggerpockets.com/blogs/1028/blog_posts/5926-real-men-love-mold