I am not a financial person - sorry if my questions don't quite make sense to some... say the fund keeps cash in bank and bank collapses... in this case I would be much comfortable if the "cash" would be in short-term treasuries.

Originally posted by Rich Weese:If Jon Holdman saying prices will continue to slip for a few more years is doom and gloom, count me in that category.Nope, we don't count that as doom-and-gloom...the economy is cyclical, and there will always be ups and downs, some worse than others...Things like saying that there will be a domino effect of bank foreclosures and the economy will collapse under the "perfect storm" of bad economic news is what many of us consider doom-and-gloom...As it turns out, those people didn't really know what they were talking about...

I've enjoyed the learning process immensly (which makes my wife doubt my sanity even more than she did before), and it made me keen to find that one REO house that, while not perfect, is not a money pit about to collapse.

I'm not saying the market will collapse, but i certainly would not invest there assuming prices will forever increase.

The contractor ran off with the money, the home was vandalized,the roof collapses,etc etc Market values can quickly change and leave the lender without protection It sounds like you don't like the rules of the game, so stick with wholesaling it is your perfect scenario and no rules to be upset with @Toyin Dawodu 

If a market were to collapse like it did in 2007/2008 you wouldn't be fully exposed to the larger swings of the B and C markets and could use the BH property as a hedge.I'm not a fan of selling A assets, particularly when your basis is low (which I assume is your case...).  

I won't get into anything that needs a new foundation, significant structural element repair/replace (rotted joists, collapsing walls), full-bore electrical rewiring, or has other issues that cannot be easily remedied - shared driveways without dedicated easements, located next to a housing project or landfill, etc. 

What about the apartment balcony that collapsed out in California?

.: What if tech collapsed tomorrow?

Diversification is the key to spreading risk should there be an economic collapse as predicted by Peter Schiff and other leading economists on May 28, 2016.