Comments on: Growing Real Estate Investment Capital With Little Or No Appreciation http://www.bawldguy.com/growing-real-estate-investment-capital-with-little-or-no-appreciation/ Real Estate Investing through Purposeful Planning Tue, 06 Jan 2009 11:55:07 +0000 http://wordpress.org/?v=2.0.11 by: BawldGuy http://www.bawldguy.com/growing-real-estate-investment-capital-with-little-or-no-appreciation/#comment-10326 Wed, 20 Aug 2008 23:46:50 +0000 http://www.bawldguy.com/growing-real-estate-investment-capital-with-little-or-no-appreciation/#comment-10326 William -- Much appreciated. Question -- Are you seeing more 1031's in San Diego this year? William — Much appreciated.

Question — Are you seeing more 1031’s in San Diego this year?

]]> by: William L. Exeter http://www.bawldguy.com/growing-real-estate-investment-capital-with-little-or-no-appreciation/#comment-10325 Wed, 20 Aug 2008 23:39:46 +0000 http://www.bawldguy.com/growing-real-estate-investment-capital-with-little-or-no-appreciation/#comment-10325 Great post, as usual! Great post, as usual!

]]> by: BawldGuy http://www.bawldguy.com/growing-real-estate-investment-capital-with-little-or-no-appreciation/#comment-10317 Wed, 20 Aug 2008 17:19:29 +0000 http://www.bawldguy.com/growing-real-estate-investment-capital-with-little-or-no-appreciation/#comment-10317 Dude -- The more we go back and forth with each other, the more I'm thinkin' we need to meet, belly to belly. Dude — The more we go back and forth with each other, the more I’m thinkin’ we need to meet, belly to belly.

]]> by: Dennis Fassett http://www.bawldguy.com/growing-real-estate-investment-capital-with-little-or-no-appreciation/#comment-10314 Wed, 20 Aug 2008 17:12:00 +0000 http://www.bawldguy.com/growing-real-estate-investment-capital-with-little-or-no-appreciation/#comment-10314 You'd think so, wouldn't you? But it seems like most folks here are drinking the media Kool-Aid, and they're afraid that suburban house prices are going to zero or below. These are the same people that still complain about not getting in on Microsoft, Berkshire-Hathaway, and Google. Hindsight is always 20-20! All I know is that I'm buying brick rentals in great school districts so cheap that rents can fall 20% or so and I'd STILL break even. At 100% financing no less. (Don't tell the bank) Thanks again for the succinct explanation. You’d think so, wouldn’t you? But it seems like most folks here are drinking the media Kool-Aid, and they’re afraid that suburban house prices are going to zero or below.

These are the same people that still complain about not getting in on Microsoft, Berkshire-Hathaway, and Google.

Hindsight is always 20-20!

All I know is that I’m buying brick rentals in great school districts so cheap that rents can fall 20% or so and I’d STILL break even. At 100% financing no less. (Don’t tell the bank)

Thanks again for the succinct explanation.

]]> by: BawldGuy http://www.bawldguy.com/growing-real-estate-investment-capital-with-little-or-no-appreciation/#comment-10311 Wed, 20 Aug 2008 17:00:13 +0000 http://www.bawldguy.com/growing-real-estate-investment-capital-with-little-or-no-appreciation/#comment-10311 Dennis -- You got me to chuckle. It's places just like your region, Michigan, where folks figure out what works when the 'easy' way isn't available to them. I have a client here in SD who owns income property in three states. (He's currently preparing to get his local stuff Outa Dodge, btw.) One of those properties is an apartment complex in Ohio throwing off a few thousand fully tax sheltered dollars monthly. Has it gone up in value? Nope. Does he care? Nope. Is he sorry he has a non-appreciating piece of real estate? Nope. :) His SD portfolio went up plenty. He's now buying new growth properties, while preparing to acquire more by executing a tax deferred exchange (1031) from SD to Texas and/or KC. I hafta think MIchigan folks are cryin' all the way to the bank these days, depositing their cash flow. :) Dennis — You got me to chuckle. It’s places just like your region, Michigan, where folks figure out what works when the ‘easy’ way isn’t available to them.

I have a client here in SD who owns income property in three states. (He’s currently preparing to get his local stuff Outa Dodge, btw.) One of those properties is an apartment complex in Ohio throwing off a few thousand fully tax sheltered dollars monthly. Has it gone up in value? Nope. Does he care? Nope. Is he sorry he has a non-appreciating piece of real estate? Nope. :)

His SD portfolio went up plenty. He’s now buying new growth properties, while preparing to acquire more by executing a tax deferred exchange (1031) from SD to Texas and/or KC.

I hafta think MIchigan folks are cryin’ all the way to the bank these days, depositing their cash flow. :)

]]> by: Robert Coté http://www.bawldguy.com/growing-real-estate-investment-capital-with-little-or-no-appreciation/#comment-10309 Wed, 20 Aug 2008 15:11:26 +0000 http://www.bawldguy.com/growing-real-estate-investment-capital-with-little-or-no-appreciation/#comment-10309 <i>Massive cosmetic fixers. Key word? Cosmetic — No exceptions</i> Define cosmetic. Personally I often see a lot of value in buying more severe defects that command far greater discounts than warranted. For examples; an outdated septic or end of useful life kitchen or bath. Sure, high dollar cost remediation items but as long as there isn't anything structural negotiations can bring you even more of the money you earn at the front of the deal. An example of where I draw the line; crumby water heater okay, low water pressure no way. Massive cosmetic fixers. Key word? Cosmetic — No exceptions

Define cosmetic. Personally I often see a lot of value in buying more severe defects that command far greater discounts than warranted. For examples; an outdated septic or end of useful life kitchen or bath. Sure, high dollar cost remediation items but as long as there isn’t anything structural negotiations can bring you even more of the money you earn at the front of the deal. An example of where I draw the line; crumby water heater okay, low water pressure no way.

]]> by: Dennis Fassett http://www.bawldguy.com/growing-real-estate-investment-capital-with-little-or-no-appreciation/#comment-10307 Wed, 20 Aug 2008 12:08:38 +0000 http://www.bawldguy.com/growing-real-estate-investment-capital-with-little-or-no-appreciation/#comment-10307 Sssssshhhhhhhhhhhhhh Would you PLEASE stop telling everybody about this?!? Pretty soon they're going to finally start to believe it and then all the truly great deals will go bye-bye! :) But seriously - here in Michigan we're in the same situation where we can't look to appreciation to save our bacon. We have a slight advantage over other regions because we've never had or counted on the double-digit increases every year. But it's still a challenge to ferret out the "true" deals from all of the chaff that's on the market. Sssssshhhhhhhhhhhhhh

Would you PLEASE stop telling everybody about this?!?

Pretty soon they’re going to finally start to believe it and then all the truly great deals will go bye-bye! :)

But seriously - here in Michigan we’re in the same situation where we can’t look to appreciation to save our bacon. We have a slight advantage over other regions because we’ve never had or counted on the double-digit increases every year. But it’s still a challenge to ferret out the “true” deals from all of the chaff that’s on the market.

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