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CGabhart

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Reply with quote  #1 

If you had a million dollars cash what would you do with it?

What sort of real estate would you buy?
Where?
Levarage / no leverage?
.....

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rickencin

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Reply with quote  #2 
The general feeling is that prices are quite high right now and availability is low.  This is a problem even for flippers.  Perhaps lending to desperate borrowers.  Just look up the requirements for a conforming loan and anything outside that would be your target. Condo associations with too many renters, homes with 20 year solar leases, non-verifiable income, low FICO scores etc.  There is obviously greater risk in these situations, so fees and interest rates would need to be commensurate.  Probably not a whole lot of competition.  You would only want to do deals where foreclosing makes sense.  The lower the LTV the better.
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Shnaka

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Reply with quote  #3 
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erikv2

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Reply with quote  #4 
Hey Rickencin

compliments on your writing skills. smart to think about
Lending as an alternative to strategic buying (inv) as a way to create
wealth or cash flow.  Your mind shows a very solid grasp
of how risky the present social environment and slippery ground
on which both Employer and Employee stand.

I'll bet your investments in real estate are panning out quite well.
yes, I shouldn't openly speculate like that, it may be judged
as "uncouth"

Everyone in this forum ought to know they can make $$$
one of Three ways - Investing with attenuated risks, Lending
to those needing capital, or the just as risky old fashioned
way - actively working a nine to five day job.



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erikv2

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Reply with quote  #5 

1. Pray to Heaven and God for the discipline not to overspend it too quickly

2. Contact Dept of Ed and payoff my student loans ($55k)

3. Front my wife a bundle to cover my past mistakes

4. Give $40,000 to brother in law who expected a credit when I
    short sold a small La Mesa Condo during the 2008 economic crisis
     which resulted in my filing BK

5. Give my wife's family a few hundred thou to help pay the cost
    of family matriarch's living and nursing care

   5a  Go to Vet's and have my Corgi dog given a teeth cleaning
         and then to day spa, for "therapy"

6.  Give my former landlord - a really great man - a Gratuity for
     accepting partial rent payments over the course of 2 or more yrs

7 Pump fifty grand into my wifes 401k account

8 Visit my nearest Porsche dealership to buy my dream car
    OK, perhaps I'll Settle for a Beemer

9 Hire Trump, or a famous Guru to come speak at SDCIA



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chatterweb

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Posts: 319
Reply with quote  #6 
Quote:
Originally Posted by erikv2

1. Pray to Heaven and God for the discipline not to overspend it too quickly

2. Contact Dept of Ed and payoff my student loans ($55k)

3. Front my wife a bundle to cover my past mistakes

4. Give $40,000 to brother in law who expected a credit when I
    short sold a small La Mesa Condo during the 2008 economic crisis
     which resulted in my filing BK

5. Give my wife's family a few hundred thou to help pay the cost
    of family matriarch's living and nursing care

   5a  Go to Vet's and have my Corgi dog given a teeth cleaning
         and then to day spa, for "therapy"

6.  Give my former landlord - a really great man - a Gratuity for
     accepting partial rent payments over the course of 2 or more yrs

7 Pump fifty grand into my wifes 401k account

8 Visit my nearest Porsche dealership to buy my dream car
    OK, perhaps I'll Settle for a Beemer

9 Hire Trump, or a famous Guru to come speak at SDCIA





Bruce Norris would probably be a better RE Investor to speak at SDCIA.

Trump is busy rite now working to Make America Great Again. JMHO

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Thomaschavez

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Reply with quote  #7 

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lukasbmw

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Posts: 384
Reply with quote  #8 
Title says $2 million. The post says $1 million

With $2 milllion,

I buy 10 $200,000.00-$250,000.00 homes in Phoenix. 1990+ build. Detached. 3/2 or 4/3 in the east valley. 

No more then $50k in leverage per house.

You are buying quality homes in quality areas in a growing red state that is landlord friendly an has cheap taxes. 

Even if the market crashes, up to $50k in leverage per home won't stop you from about $1,000.00 cashflow per home even after taxes, insurance, HOA, and maintenance. 

$10k a month cashflow. $120k a year. That's comfy. Especially with the rental write offs. Retire and enjoy life.

Rent in San Diego. It's cheaper. 

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Eric Lukas
858 276 0713
http://www.sellitfastca.com
7676 Hazard Center Drive
San Diego CA 92108

I love buying from wholesalers! Will pay up to 78% of ARV.

Suzanne

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Posts: 339
Reply with quote  #9 
I would buy small islands in Grenada, Tahiti and Beliz - and rent them out to vacationers for 10K-20K per week per island.  This is a nice niche market that is highly profitable. Some islands start at 250K.
JovannySmith22

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Reply with quote  #10 

I would buy a luxurious condo with an indoor pool.


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rickencin

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Reply with quote  #11 
If I had $2,000,000 I would hold my arms straight up in the air and do the touchdown dance.  I've won the game.  At this point you just don't want to do something stupid and lose the game.  Like athletes and lottery winners are famous for. 
If you divide $2,000,000 into monthly amounts for the next 30 years that is $5,555 a month.  I can live on that.  But wait, there's more!  If I buy 10 year treasuries at 2.2% that is another $3,666 a month.  This will go to zero as you spend down your principal.  So you start out with $9,222 a month.  Your biggest obstacle is inflation which could greatly reduce your purchasing power.  Conventional wisdom says that inflation is a long forgotten nightmare.  A Rolls Royce cost $22,000 the year I graduated high school.  What could go wrong?

What you don't want to do is be a big jerk.  Buy a $1,500,000 house with 20% down and spend $300,000 or $400,000 a year being a big shot, just like on TV.  Your mortgage will be $5,738 and property taxes will be $1,562 for a total of $7,290 a month.  Of course you have to have a lot of depreciating assets like luxury cars, a boat and a vacation chalet.  People aren't wealthy because they waste money, they are wealthy because they don't waste money. 

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Rick
Suzanne

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Reply with quote  #12 
Quote:
Originally Posted by rickencin
If I had $2,000,000 I would hold my arms straight up in the air and do the touchdown dance.  I've won the game.  At this point you just don't want to do something stupid and lose the game.  Like athletes and lottery winners are famous for. 
If you divide $2,000,000 into monthly amounts for the next 30 years that is $5,555 a month.  I can live on that.  But wait, there's more!  If I buy 10 year treasuries at 2.2% that is another $3,666 a month.  This will go to zero as you spend down your principal.  So you start out with $9,222 a month.  Your biggest obstacle is inflation which could greatly reduce your purchasing power.  Conventional wisdom says that inflation is a long forgotten nightmare.  A Rolls Royce cost $22,000 the year I graduated high school.  What could go wrong?

What you don't want to do is be a big jerk.  Buy a $1,500,000 house with 20% down and spend $300,000 or $400,000 a year being a big shot, just like on TV.  Your mortgage will be $5,738 and property taxes will be $1,562 for a total of $7,290 a month.  Of course you have to have a lot of depreciating assets like luxury cars, a boat and a vacation chalet.  People aren't wealthy because they waste money, they are wealthy because they don't waste money. 


This is the best response Rick!
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