Comments on: What Real Estate Investment Strategy Works In Slloooowly Appreciating Markets? http://www.bawldguy.com/what-real-estate-investment-strategy-works-in-slloooowly-appreciating-markets/ Real Estate Investing through Purposeful Planning Wed, 08 Sep 2010 00:45:56 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: BawldGuy http://www.bawldguy.com/what-real-estate-investment-strategy-works-in-slloooowly-appreciating-markets/comment-page-1/#comment-10601 BawldGuy Mon, 01 Sep 2008 18:19:58 +0000 http://www.bawldguy.com/what-real-estate-investment-strategy-works-in-slloooowly-appreciating-markets/#comment-10601 310 -- This is a time of great opportunity. A young investor should be looking for capital growth. The older you get, the more money yer gonna be makin' at yer day job. Realistically, you'll be making more money five years from now. Every 5-10 years you'll be making more money. The point: While chasing cash flow while your 'day job' income keeps rising, you're retarding the growth of your capital -- when you don't need the cash flow to live. This ultimately retards the size of your retirement income. The most common mistake of those investing in real estate for the purpose of their retirement is to first go after cash flow. Don't make that mistake. Those who are young going after cash flow -- tend to use it. Meanwhile, their capital is either stagnating or growin' at a snail's pace. Retirement comes, and their stuck with whatever level of cash flow they have at that point. I've seen it too many times. Hope this has helped. Enjoy your day. 310 — This is a time of great opportunity. A young investor should be looking for capital growth. The older you get, the more money yer gonna be makin’ at yer day job. Realistically, you’ll be making more money five years from now. Every 5-10 years you’ll be making more money.

The point: While chasing cash flow while your ‘day job’ income keeps rising, you’re retarding the growth of your capital — when you don’t need the cash flow to live. This ultimately retards the size of your retirement income.

The most common mistake of those investing in real estate for the purpose of their retirement is to first go after cash flow. Don’t make that mistake.

Those who are young going after cash flow — tend to use it. Meanwhile, their capital is either stagnating or growin’ at a snail’s pace. Retirement comes, and their stuck with whatever level of cash flow they have at that point. I’ve seen it too many times.

Hope this has helped. Enjoy your day.

]]> By: 310guy http://www.bawldguy.com/what-real-estate-investment-strategy-works-in-slloooowly-appreciating-markets/comment-page-1/#comment-10600 310guy Mon, 01 Sep 2008 17:53:09 +0000 http://www.bawldguy.com/what-real-estate-investment-strategy-works-in-slloooowly-appreciating-markets/#comment-10600 I do agree with Dax. However for some one who is young, I see this as an opportunity of a lifetime - as such, how would you guys invest today or in the months to come - for a lifetime of holding? Or How should one go about this? Should an investor not be concerned about the long term; because of the short term pain in the credit/real estate markets? I do agree with Dax. However for some one who is young, I see this as an opportunity of a lifetime – as such, how would you guys invest today or in the months to come – for a lifetime of holding? Or How should one go about this? Should an investor not be concerned about the long term; because of the short term pain in the credit/real estate markets?

]]> By: BawldGuy http://www.bawldguy.com/what-real-estate-investment-strategy-works-in-slloooowly-appreciating-markets/comment-page-1/#comment-10316 BawldGuy Wed, 20 Aug 2008 17:17:45 +0000 http://www.bawldguy.com/what-real-estate-investment-strategy-works-in-slloooowly-appreciating-markets/#comment-10316 Josh -- Dax is a seasoned investor and businessman, who knows of what he speaks. He's just ahead of most folks on the food chain, 'cuz he has the capital to generate the cash flow now. He knows exactly what he's doin', just as you imply. Josh — Dax is a seasoned investor and businessman, who knows of what he speaks. He’s just ahead of most folks on the food chain, ‘cuz he has the capital to generate the cash flow now.

He knows exactly what he’s doin’, just as you imply.

]]> By: BawldGuy http://www.bawldguy.com/what-real-estate-investment-strategy-works-in-slloooowly-appreciating-markets/comment-page-1/#comment-10315 BawldGuy Wed, 20 Aug 2008 17:12:09 +0000 http://www.bawldguy.com/what-real-estate-investment-strategy-works-in-slloooowly-appreciating-markets/#comment-10315 Dax -- You are SO preachin' to the choir. Comparing the returns available in real estate to the stock market is unfair in the best light, and laughable lately. Your cash flow based returns are what those close to retirement lust after for sure. Also, beginning investors grow their capital as they keep their eyes on the ultimate cash flow prize. Thanks Dax -- don't be a stranger. Dax — You are SO preachin’ to the choir. Comparing the returns available in real estate to the stock market is unfair in the best light, and laughable lately.

Your cash flow based returns are what those close to retirement lust after for sure. Also, beginning investors grow their capital as they keep their eyes on the ultimate cash flow prize.

Thanks Dax — don’t be a stranger.

]]> By: Joshua http://www.bawldguy.com/what-real-estate-investment-strategy-works-in-slloooowly-appreciating-markets/comment-page-1/#comment-10313 Joshua Wed, 20 Aug 2008 17:10:03 +0000 http://www.bawldguy.com/what-real-estate-investment-strategy-works-in-slloooowly-appreciating-markets/#comment-10313 Dax makes a good point. Maybe I'm sticking my delicate inexperienced neck out here but if you settle for using only income you'll only get just that.. income. How many buildings can you buy with a cash flow of negative $100 per month? As many as your day job can afford and how long your sanity holds out. But how many can you buy with a $100 positive cash flow each month? It's virtually unlimited. However, what I think Jeff is getting at is if you want to retire with a passive yearly income equal to that of a small country then you NEED great appreciation to do so. If this were a horse race Dax your horse would finish with, or slighly ahead, of the main pack. But it's Jeff's purposeful plan and getting outta dodge mentality to earn those high appreciation rates (plus cash flow where possible) that will get you far ahead of the pack.. so much so that you could stop at the finish line, turn around, and root the rest of them on. Dax makes a good point. Maybe I’m sticking my delicate inexperienced neck out here but if you settle for using only income you’ll only get just that.. income.

How many buildings can you buy with a cash flow of negative $100 per month? As many as your day job can afford and how long your sanity holds out.

But how many can you buy with a $100 positive cash flow each month? It’s virtually unlimited.

However, what I think Jeff is getting at is if you want to retire with a passive yearly income equal to that of a small country then you NEED great appreciation to do so.

If this were a horse race Dax your horse would finish with, or slighly ahead, of the main pack. But it’s Jeff’s purposeful plan and getting outta dodge mentality to earn those high appreciation rates (plus cash flow where possible) that will get you far ahead of the pack.. so much so that you could stop at the finish line, turn around, and root the rest of them on.

]]> By: Dax Desai http://www.bawldguy.com/what-real-estate-investment-strategy-works-in-slloooowly-appreciating-markets/comment-page-1/#comment-10310 Dax Desai Wed, 20 Aug 2008 16:21:05 +0000 http://www.bawldguy.com/what-real-estate-investment-strategy-works-in-slloooowly-appreciating-markets/#comment-10310 I think income investments are still good. If anything some investments such as multi-family are at very attractive yields. With proper leverage one can handily get double-digit returns. You have to now be selective. My strategy is to forget appreciation. I'm not looking for a 2-5% appreciation per year. I'm looking at immediate cashflow investments. My projects all target 15-20% returns. So far I'm happy to say none of my investments have neither depreciated nor appreciated, but my returns are above 15%/year in income. I'll take that any day over the stock market. I think income investments are still good. If anything some investments such as multi-family are at very attractive yields. With proper leverage one can handily get double-digit returns. You have to now be selective. My strategy is to forget appreciation. I’m not looking for a 2-5% appreciation per year. I’m looking at immediate cashflow investments. My projects all target 15-20% returns. So far I’m happy to say none of my investments have neither depreciated nor appreciated, but my returns are above 15%/year in income. I’ll take that any day over the stock market.

]]> By: BawldGuy http://www.bawldguy.com/what-real-estate-investment-strategy-works-in-slloooowly-appreciating-markets/comment-page-1/#comment-10300 BawldGuy Wed, 20 Aug 2008 03:31:26 +0000 http://www.bawldguy.com/what-real-estate-investment-strategy-works-in-slloooowly-appreciating-markets/#comment-10300 grin grin

]]> By: Joshua http://www.bawldguy.com/what-real-estate-investment-strategy-works-in-slloooowly-appreciating-markets/comment-page-1/#comment-10299 Joshua Wed, 20 Aug 2008 03:25:59 +0000 http://www.bawldguy.com/what-real-estate-investment-strategy-works-in-slloooowly-appreciating-markets/#comment-10299 I have two things to say: 1. So THHHHAAATTTSS how you spell koinkie dink. 2. Walk down and get them all. I have two things to say:

1. So THHHHAAATTTSS how you spell koinkie dink.

2. Walk down and get them all.

]]> By: BawldGuy http://www.bawldguy.com/what-real-estate-investment-strategy-works-in-slloooowly-appreciating-markets/comment-page-1/#comment-10290 BawldGuy Tue, 19 Aug 2008 20:58:03 +0000 http://www.bawldguy.com/what-real-estate-investment-strategy-works-in-slloooowly-appreciating-markets/#comment-10290 Robert -- The comparison of 2% to 5% was for the same $200,000 investment, all else being equal. Just showing the difference between the two appreciation rates is all. Haven't shifted into 'fancy' yet. :) Robert — The comparison of 2% to 5% was for the same $200,000 investment, all else being equal.

Just showing the difference between the two appreciation rates is all. Haven’t shifted into ‘fancy’ yet. :)

]]> By: BawldGuy http://www.bawldguy.com/what-real-estate-investment-strategy-works-in-slloooowly-appreciating-markets/comment-page-1/#comment-10289 BawldGuy Tue, 19 Aug 2008 19:33:47 +0000 http://www.bawldguy.com/what-real-estate-investment-strategy-works-in-slloooowly-appreciating-markets/#comment-10289 Think you're workin' with different numbers than I. As far as the oil patch goes, I'm not even daring to enter that fray. Stayin' on sidelines until picture 'clears up'. The whole past performance/future returns mistake might be about to hurt some folks. Think you’re workin’ with different numbers than I. As far as the oil patch goes, I’m not even daring to enter that fray. Stayin’ on sidelines until picture ‘clears up’.

The whole past performance/future returns mistake might be about to hurt some folks.

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