Rethinking 'Fuck You' money

Post by euccastro » Wed, Aug 04, 2010, 10:07 PM UTC

jimbokun wrote: post #133

euccastro wrote: post #95

Earlier quoted context omitted.

Bernard Lietaer (former central banker, successful currency speculator, one of the architects of what today is the Euro, and nowadays complementary currency advocate) starts most of his post-crisis conferences by asking the public to raise their hands if they believe that the worst of the crisis is past/ahead of us. Generally, most people will raise their hand to state their belief that the worst is still to come. He…

That doesn't necessarily mean you shouldn't buy stocks. It is extremely unlikely that you will time the bottom of the market just right. So even if it will continue to get worse for a while, it might still be a good decision to continue buying into the market so that when the bottom does hit, you will have bought some stocks right around that time. This all depends on your investment horizon, etc. etc.

There is still the possibility that a significant part of your particular investment vehicles will just vanish forever.

Post by istari » Fri, Aug 06, 2010, 7:45 PM UTC

7d9bf2471be6f39 wrote: post #169

istari wrote: post #94

Earlier quoted context omitted.

It's not free at all. Buying a rental property off the MLS means you have to manage it, and is like starting a small business. This is fairly safe to do even for beginners, and is a good way to leverage a few tens of thousands and a good credit rating. Buying at courthouse auctions is a completely different ball game, and requires you to 1. pay all cash(this eliminates 99% of competitors) 2. research title and liens…

I would like more info. I am in the position to invest on this scale and the idea of being a landlord is not too scary to me (actually sounds kinda fun in a twisted way). Some questions off the top of my head: - What attributes constitute a good rental property? - Is it ever worth it to hire a manager? - How often do you have to visit the property? I live in SF but I understand being a landlord here is difficult due…

Right a mortgage is 5% or so. So around 0.5% per month, roughly.

Rule of thumb #1 for rental properties is that if it can get 1% of its total value in rent per month in rent, you can get positive cash flow. 1.5% is worth your time. 2% is what you want to aim for.

Rule of thumb #2 is that the crappier the property, the easier it is to get a higher % of rent vs price. Multifamilies are in general more profitable to rent than single families.

Don't hire a manager when you're starting out. Do it yourself, invest close to home.

SF is too expensive, anyways. Everyone has their own comfort level trading off profit vs crappiness of neighborhood. I'm drawn towards slums, myself.

Richmond/Concord has some nice cheap properties, is close, and has good rents. Oakland is even cheaper but slummier.

The default first step would be to fire up realtor.com and craigslist, and compare prices versus rents. Start with the cheapest single and multi families in Richmond, Concord, and Oakland.

How much cash do you have? This is important since it defines your options.

Join bigger pockets, it's a great forum with lots of pros.

Always try to buy below the market price set by the MLS.

You can get away, but you'd need to get someone trustworthy on call to take care of emergencies.

Shoot me an email at foreclosurevision dot com, once I know exactly what you're looking for I can offer more targeted advice.

Re: Rethinking 'Fuck You' money

Re: Rethinking 'Fuck You' money