The point is, no one in 2008-2010 would buy these portfolios anymore so by Mark to Market accounting these 1 trillion dollar portfolio derivative securities were worth nothing or pennies on the dollar even though they were still generating a massive return regardless of how many foreclosures were going on.This plus so many practices are not happening anymore so even though the rates might go up, money might dry up, and the real estate market might take a downturn or level off, there will not be the cataclysmic fall out that you saw in 2008. 

Hi my name is Alex I live in Mesa Arizona I'm an investor in real estate and business if you really want to buy property wait until 2018-2019 there is a derivative bubble. interest rates will slowly go up the stock market will crash first .

According to the Howey test, an instrument is only a security if it involves an investment of money or other tangible or definable consideration used in a common enterprise with a reasonable expectation of profits to be derived primarily from the entrepreneurial or managerial efforts of others.

I agree 100% with the points behind most of these "real estate vs stock market or other non-tangible paper asset that is only some derivative of something else with actual value" arguments.

If they are, consider this: Income can be derived three different ways: First, from the Non-refundable consideration a Tenant Buyer could provide you (In my market about 8-10% of the current ARV of the home).

You may be surprised at where expenses derive from when you are the owner.

In essence, the NOI over cap rate to derive the value.  

I derive humour from irritating A holes.

page=2#p804253Actually, I gave the seller a price of $170K not $165.5K just to see his reaction.The gurus taught the 70% rule as "gospel"... but have you ever wondered how that rule is derived in the first place?

I focus on Fremont and Capitol Hill.I trade complex derivative positions and interested to see if there is any commonality with energy trading.Thx