Comments on: Durango, San Diego, Texas, KC — Random Thoughts On Real Estate Investing

By: BawldGuy

BawldGuy — Wed, 27 Aug 2008 18:47:10 +0000

Robert — We’re in total agreement.

Cash = Capital = Equity. The three are synonymous for the purpose of the formula.

In SoCal ‘cashing out’ and redeploying sounds a lot like — Get Outa Dodge!

Was intentionally being general, as I was wanting to impart the core nature of cash flow, which is a yield on cash in whatever form it’s found.

We usually agree, it’s that we speak different languages.

By: Robert Coté

Robert Coté — Wed, 27 Aug 2008 18:21:16 +0000

One of those times where we almost agree and need to hash out the details.
“Here’s a tried and true formula.
Cash flow is nothing but a yield generated by a pile a cash. “
What if instead I said?: “Cash flow is nothing but a yield generated by a pile of equity and leverage and tax benefits. ”

Am I wrong? Cash is not equity until monetized. I’d hate to be the guy who takes out new debt on moribund SoCal real estate property to use that cash. Much smarter to actually cash out and redeploy don’t you think? Your post doesn’t make that distinction.

By: Jeff Brown

Jeff Brown — Wed, 27 Aug 2008 15:57:08 +0000

I’m thinkin’ cornfields would get kinda boring after awhile.

Playing on the field in the pic is a good news bad news joke.

Good news is yer 2 miles up, so homers are a lot easier to hit. Bad news is, ya gotta run after ya homer.

By: Joshua

Joshua — Wed, 27 Aug 2008 15:05:39 +0000

AMEN!!! That baseball field is so much more interesting than the ones here in Iowa. I would rather see beautiful mountains while I’m batting than an endless row of corn anyday!

But then again, the pastures are always greener on the other side.