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larrywww

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Reply with quote  #61 
ABC:
How would you know about whether or not Watts predicted the real estate downturn?

The first time that he gave an interview to Bruce was 3/31/2007, and the second in April of 2007.  This a year before the collapse of Bear, Stearns and real estate had already tanked at this point.  I do recall Bruce and he discussed the failed predictions from the CAR economists.  But these were not his predictions.  He also was interviewed in March of 2008.  By that point, real estate prices were already in decline.  (It's not necessary to predict, what is already the case, etc.)    And in his most recent interview, Bruce states that CAR economists again got it wrong by understating the rally, whereas Watt's predictions were four times higher (and alot closer to the truth and to Bruce's prediction).

The other problem is that I can't find any interviews with him that occurred before March of 2007 on Bruce's website, or any other website.   (He has some interviews on Youtube, but none that were nearly that old, Bruce's interviews are the oldest I can find.)   If he had a failed prediction about the real estate crash in 2005/2006, the least that can be concluded is that Bruce certainly didn't remind him of it in either the 2007 or 2008 interviews.

I think what you may be thinking about is that Watts admits in his 2/23/2008 interview that he underestimated the severity of the economic downturn that occurred AFTER real estate tanked.   Basically, according to Watts in 2/23/2008, during the last year and a half he got things wrong and underestimated the severity of the downturn.  But when you make predictions for something like 4 decades, you are clearly going to make some mistakes.  And I think alot of economists underestimated this as well, especially given the degree of fraud that was practiced by Wall Street, and the lack of transparency with their mortgage backed securities and derivatives, the fraud practiced by the rating agencies, etc.

Also, it would be good to keep in mind that Bruce has made mistakes, even if he has learned from them.  Such as when he bought the 4plexes in Southern Colorado, built the custom homes near Palm Springs, built the lot that didn't perc, etc.  As a matter of fact, I think Bruce will tell you that he has learned far more from his serious mistakes, than his successes, etc.

Bottom line, if Bruce felt that he really had nothing to say, I doubt that he would interview him.  Bruce doesn't interview the experts he doesn't respect, at least not half a dozen times.  It may well be true that Bruce has other economists (like Chris Thornbergh) that he likes better and interviews more.  And I'm sure that Thornbergh has much better funding (and, in fact, probably has alot better funding for economic research than Bruce, given the various organizations that support him.  Not to mention better credentials.)

To my way of thinking, the worst kind of economists are like those from CAR whose primary goal seems to be to act like cheerleaders for the real estate industry with predictions that are always  optimistic, sometimes unbelievably optimistic.  I don't think it's fair to put him in the category.  As a matter of fact, it was jokingly mentioned that at one point he earned the nickname "Scary Gary" because he correctly predicted a downturn when alot of other real estate experts did not.  So, I think that Bruce at least thinks that Watts isn't afraid to give negative forecasts, when he believes it is warranted.

However, some of the predictions that Watts got right were when he predicted that real estate would rise, when alot of other experts were quite negative about it.  (This is how Bruce originally earned his claim to fame when he originally predicted a sustained market rally.)  One of the interesting things that emerged from their interviews is that real estate in California was not always a really great and volatile investment.   How did it become such a wonderful investment?  It's interesting when you are able to talk with experts who have decades of experience, because if you go back far enough, real estate in California was not volatile, more of a cash flow investment.  One of the things that California benefited from was alot of money from the defense industry, which permitted California to avoid some real estate downturns the rest of the nation experienced.  And the baby boom generation also gave our market a boost.  But once real estate turned into a volatile investment, we have been off to the races ever since.

In general, I don't think it's fair to say that Watts is so hopelessly clueless, since the least that can be concluded is that you haven't established any factual basis for this conclusion.   Besides, he has been making his annual economic predictions for something like a decade before Bruce ever became a real estate investor.  (Watts became a licensee in 1971 and started his annual predictions in 1974.  Bruce started as salesperson in 1980.)  And Bruce agrees in his first 2008 interview that although Gary got things wrong recently, he was right many more times during his several decades of real estate predictions.

There are some limitations here.  I think Watts is totally focused on Orange County where he does business, as he has admitted, just as Bruce is focused moreso on the Inland Empire.  But just because you take what he says with a grain of salt does NOT mean that you don't listen to him.

I know that Watts and Bruce do not always agree.  One of the thiings that Watts was fairly critical about was reliance upon affordability, Bruce's Holy Grail, at least in terms of the way it is has been measured.   He stated in 2008 that it didn't include something like 68% of the wealth that exists in California.  In particular, it doesn't include those who are self employed, 401K money or retirement plans, Social Security, capital gains---alot of what we would normally consider to be income is not included.   I think that's a good point. BTW.

I've never heard him speak before (except on Bruce's website), and again, I would be interested to hear what he has to say on June 30th.  Right now, even Bruce believes that economic forecasting is really, really difficult.  We need all the help we can get, etc.


mlreits

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Reply with quote  #62 
Given where we are in the housing cycle, how are you gentlemen making money now?  Mind to share any ideas?  [idea]
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Minh

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kaihacker

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Reply with quote  #63 
Minh, for the most part I am holding steady and focusing on building my other businesses.  There are a few exceptions.  I had an amazing deal fall in my lap a few months ago that I could not pass up.  My plan isn't really to acquire more but I could not pass it up.  And I am getting ready sell one property that is a nearby vacation rental area that has appreciated much more than the rest of my area.  I hope to sell, lock in those profits and reinvest in another area I am familiar with which I feel is undervalued and ripe for increases.  But overall I am much more in a "holding pattern" and no longer in "active acquisition" mode.   I look forward to when its time to sell...I don't really enjoy being a landlord.  


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Gene Hacker

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brycewheeler

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Reply with quote  #64 
Minh, for my part I am selling off a few properties, two for tax reasons to eat up a long term capital loss I had (stock market losses), and plan on one or two more San Diego property sales to raise funds just for general expenses (finally) and also to invest ini the Atlanta GA area where my oldest daughter lives.  She is interested in managing
properties and investing in them also.  I think that the Atlanta area presents at least an equal upside appreciation potential if not more,  than California. She will be cutting her teeth on one or two duplexes or 4 plex,, or maybe even a few SFH.  There has been some appreciation in that area but maybe some further upside potential in the years ahead.   Anyway I am 80 years old now and won't live forever, so I do not plan to buy more in Calif.   So it is mainly personal reasons why I am investing in Georgia to help
my daughter get into the real estate investing game, as well as possibly a few average to good+ investments for income as well as appreciation. 

The two properties I just sold were two "paired wall" homes or twin homes.  Those sold fast with multiple offers.  My 3rd home offered now is a SFH, a 3-2-2 starter home and surprisingly has had only tepid interest from Buyers, a few low-ball offers only.  Remodel is now all done so Buyer interest should improve quickly.  I almost have no
turnover in my rentals, but if I have some turnover in near future, I will probably sell one more SFH or twin homes.  Will either go 1031 on next one or two, or just pay Calif 9.4% and federal 15%--someone has to pay for all these wars.   Kidding aside, I don't mind paying some taxes now for the flexibility in my investments.  Since my profits were healthy, one-fourth taxes coming off the top is not so bad.  Plus, the future taxes on real estate sales will likely only increase because where else can the govt. find such easy pickings with so little effort.  Real estate investments are highly visible.

Bryce

mlreits

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Reply with quote  #65 
Gene,

I actually like being a landlord. I find it very hands off 98% of the time. I don't mind dealing with 2% of the time for 98% benefits. I must be a rare breed then.

Bryce, I didn't realize you are 8 decades old. It's interesting that both you and Gene are considering selling. I understand that North Atlanta has some good school districts. Invest where Asians are migrating in. You would do well there in my opinion. 1031X or reverse 1031X sounds like a good option for you and your daughter. Consult an expert before doing it though

I have been contemplating on selling a couple of rental properties to pay off my primary residence. Still thinking and not ready to pull the trigger yet.

So no idea of making money other than deleveraging some real estate assets?

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Minh

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Paul

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Reply with quote  #66 
Quote:
Originally Posted by mlreits
Invest where Asians are migrating in. You would do well there in my opinion.  


I think that is very good advice. 
brycewheeler

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Reply with quote  #67 
Minh.,  Guess I am like you in not minding to be a Landlord.   It takes a little time but is so easy to make good income.  I like the families I deal with and they realize that--makes it so easy.   Course I get cranky if rent is late but rarely happens.  I have almost no turnover and need to force turnover when I want to sell.

Just heard from my daughter in Peachtree city near Atlanta that we are making an offer on a 3-3-2 SFH on over an acre, great shape for the princely list price of $134,000, 
possible rent of $1,400 mo.  Not great but has appreciation potential too.  It is very close to where a new film studio is putting in a large operation with good rental prospects so I am pretty upbeat about the area with its low housing prices and healthy need for rentals.

If I have any extra money to invest in California, I may consider doing some real estate lending.  ABC has done some of this with good results.  But that is for him to tell.

I have done section 1031 exchanges before, but  what the heck is a reverse 1031?? Is there a simple explanation??

I am so impressed with the great moves you have been making.  You are one smart cookie and are sure to be a megagillionnaire in the future (I can safely predict this because of the massive inflation facing us when our country has to pay the piper  in 10 ?, 20 ? or ? years.  It mayo take a couple million marks, I mean dollars, to buy
a loaf of bread.  However our real estate investments will eventually catch up.

Bryce
SFL

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Reply with quote  #68 
Quote:
Originally Posted by mlreits
So no idea of making money other than deleveraging some real estate assets?


"There is a time to reap, and a time to sow".  There are times when great deals abound, and there are times when everything is steeply priced and it makes sense to raise some cash and take a vacation.  

There is a great anecdote originally published in Forbes Magazine in 1978, entitled "How Mr. Womack Made a Killing".  The logic applies to all forms of investing.  Link below, read and enjoy!

http://boards.fool.com/how-mr-womack-made-a-killing-13619903.aspx
Homeloanwisdom

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Reply with quote  #69 

As a mortgage lender, I’m not seeing many deals out there. It’s been a few months since a client, investor or intended occupant,  has made purchase that constitutes a good deal in my mind.  If there are some good flips out there, they’ve got to be in the high end homes of San Diego where I can recognize a good “deal” but not a good flip.

For myself I’m holding for the long term or would only consider a 1031 exchange at the present time.  With the value increases to my  3 f &c rentals, it works out at a 5.2% cap rate. Not a great return but selling would get me cash but no income.   Outside of mobile home parks or class C apartments, I don’t see a yield without substantial risk.

 


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kaihacker

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Reply with quote  #70 
Minh, I am not considering selling.  I will hold until the data tells me to sell, which I think is a ways off.  I want to sell the vacation rental to exchange into a neighborhood that I think has some major upside ahead.

As far as my statement about not enjoying being a landlord...just as different communities have vastly different housing markets, rental markets also vary.  

It is easy to get great cash flow in my area but you have to work for it.  In my area it is a much better deal to own rather than rent, this is why its easy to get really good cash flow.  The flip-side to that is that most people with decent income/credit buy and its very hard to find decent tenants.  If you wait for "an ideal tenant" it may never happen.  

The opposite is true of high end areas with very low cap rates where you can find tenants with high incomes and really high credit scores.

Anyhow I don't have any problem being a property manager with good tenants (and most of my tenants are really great) but the bad apples that get though can be a real drain.



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Gene Hacker

Passive and active real estate investment opportunities.
http://RiverLakeRE.com riverlakere@gmail.com

Home Inspections in Bakersfield and all of kern county:
http://bakersfieldinspections.com
Nyou

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Reply with quote  #71 
Thom,

You manage your  class C apartments ? or hire Property Manager?
Lara

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Reply with quote  #72 
Quote:
Originally Posted by mlreits
I have been contemplating on selling a couple of rental properties to pay off my primary residence. Still thinking and not ready to pull the trigger yet.


Minh, I would wait with this plan until your real estate market is close to the next top.
brycewheeler

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Reply with quote  #73 
I asked MINH what the heck a reverse 1031 exchange was, but just got an email from Duane Gomer (real estate education seminars) and he clarified the rules.
He said the reverse section 1031 exchange was where the Taxpayer buys a replacement property first before selling their original building.  Then property is "transferred " to a Qualified Intermediary , and then they must sell their property under the same 45/180 day deadline rules as for a regular 1031 exchange.

I think when Duane Gomer says "transferred", it probably means that legal title is probably transferred temporarily.

The 45 day rule concerns identifying the next property, with 180 days total to complete the entire transaction.   Otherwise the TAX man cometh in full force.

Sounds simple but in practice is difficult Duane warns.

Bryce
brycewheeler

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Reply with quote  #74 
LARRY.  It is amazing that you can recall or keep track of all that data on Bruce Norris going back years.

You should be appointed Honorary Historian or Honorary Professor of this Board.

Thank you for all your many informative posts.

Bryce
Homeloanwisdom

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Reply with quote  #75 
Thom,

You manage your  class C apartments ? or hire Property Manager?

Misunderstanding as I don't own any apartments, just some sfrs and vacant lots held for spec.  Though yields are greater, I will not venture into class "c" as there is reason for the higher yield. If you need a property manager in San Diego I do have a few referrals.

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Thom MacFarlane
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thom@sibloans.com 858-485-0462
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Apickering

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Reply with quote  #76 
Minh,
I have been buying some units in yuma... A 5 unit for $135k a 3 unit for $118K. These 2 closed last month and am closing on a duplex Friday for $65k. Rents are approx $500. So should cash flow decently but I believe limited appreciation.
My property manager owns several properties in Yuma... I would not have gone there otherwise.
Also had cash sitting earning nothing! Yuma is 3 hours from here so can visit... If I have to!

The difficulty nowadays is trying to find opportunities!

If you ever in San Diego, I would like to buy you a beer or coffee

Cheers
Alan

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Homeloanwisdom

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Reply with quote  #77 
Yuma could be interesting, maybe there is the class "c" apartments for cashflow. Close to to the Colorado River and right on the California border. Its probably been 15 years since the Padres spent spring training in Yuma but I recall it certainly is the home to lots of snow birds.
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Thom MacFarlane
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thom@sibloans.com 858-485-0462
http://www.thommacfarlane.com   
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Homeloanwisdom

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Reply with quote  #78 
1031 Reverse Exchanges 

A reverse exchange sounds great in that you can make a purchase of a replacement property in advance of the relinquished property. There are some major drawbacks if you are buying a 1 -4 unit residential property:

Expense – A client of mine got quoted $7,500 for a Reverse1031 Exchange verses $1200+/- for a standard 1031 Exchange by a local title company (lot of legal papers/ LLC)

·     Title vesting-  You need to make your advanced  purchase of the replacement property in the name of a new LLC which is controlled by the intermediary.

·    Hard to get financing - Why? The new LLC is an entity with the only assets being the cash to loan. Banks won’t lend on to an LLC with Fannie/Freddie product so  purchase hard money loan only until you can refinance it.

 Just went through this a few weeks ago with a client. 




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Thom MacFarlane
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mlreits

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Reply with quote  #79 
Quote:
Originally Posted by Paul
Quote:
Originally Posted by mlreits
Invest where Asians are migrating in. You would do well there in my opinion.  


I think that is very good advice. 


Paul,

Thanks for the compliment.  Based on my observation, Asians love real estate and gold.  Since we live in America, Asians dropped the gold and solely invest in real estate. 

If you look at the Asian countries, they drive the cap rate to 2% to 3%, some even lower.  I understand that some Cities in Socal weren't that expensive back in the days.  Since the Asian communities moved in back in 80's, real estate and businesses have flourished.  In general, most Asians like to own their own small business.  It's just the way they were raised. 

I understand that some counties in North Atlanta have very good school districts.  New homes there are selling for over $200k - $300k each and can be rented for 1,700 to $2,000/month.  Household income in these cities tend to be over $100k so affordability is not an issue.

Of course, that's only one man's opinion.  Place your bet accordingly.

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mlreits

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Reply with quote  #80 
Bryce,

I guess I'm not the only rare landlord breed.

Reverse 1031X means you buy a replacement property before you sell your relinquish property.  The transaction cost is higher, but you have more control of the transaction in my opinion.  Rules are the same.  You have 45 days to identify which property you will sell and 180 days to close it.  Of course you also know which property you want to sell.  The trick is to price it right and close it in 180 days, which is not too hard I don't think.  However, I don't see myself doing a 1031X.  I would rather do a cash-out refinance and use the cash to buy another property.  This way, I don't have to pay any transaction cost. 

In general, many fly over states and the Inland Empire have better rent to price ratio.  Unfortunately, we would likely have to sacrifice some appreciation for more cash-flow.  As Milton Friedman said "There is no free lunch."  If history is any indication, cash-flow pays the bills; appreciation makes you rich.  You're golden if you can get both.  Many investors were fortunate enough to get both during this downturn.  Congrats to these investors!!!

Thanks for your compliments, but I don't have the drive to be a mega-millionaire.  My goal is to be comfortable and have a lot of free time to spend with my loved ones and do whatever we want and whenever we want.  Right now, I'm there, but we're not there yet for my wife.  She still has a W-2 job to keep the health benefits for our family.    

With respect to inflation, I'm not sure how it will play out.  In order to have inflation, wages have to rise.  No wage increase, no inflation.  I wouldn't mind we bump the minimum wage to $15/hour.  That would be very good for landlords.  How selfish of me.  [biggrin]

Good luck with the sale. 

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mlreits

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Reply with quote  #81 
SFL,

I agree.  There's a time to go all in; and there's a time to deleverage.  I'm not quite sure when it's the right time to deleverage.  However, sometimes it's better early than late.  To some, owning a primary residence free & clear might be good for the mind.  I would seriously consider doing some deleveraging in spring 2015.  In your opinion, when do you think the stock market will top out?  How about the housing market?

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Minh

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mlreits

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Reply with quote  #82 
Quote:
Originally Posted by Lara
Quote:
Originally Posted by mlreits
I have been contemplating on selling a couple of rental properties to pay off my primary residence. Still thinking and not ready to pull the trigger yet.


Minh, I would wait with this plan until your real estate market is close to the next top.


When do you think is the next market top? [biggrin]

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Minh

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mlreits

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Reply with quote  #83 
Quote:
Originally Posted by Apickering
Minh, I have been buying some units in yuma... A 5 unit for $135k a 3 unit for $118K. These 2 closed last month and am closing on a duplex Friday for $65k. Rents are approx $500. So should cash flow decently but I believe limited appreciation. My property manager owns several properties in Yuma... I would not have gone there otherwise. Also had cash sitting earning nothing! Yuma is 3 hours from here so can visit... If I have to! The difficulty nowadays is trying to find opportunities! If you ever in San Diego, I would like to buy you a beer or coffee Cheers Alan


Thanks for the offer Alan.  I'll take coffee over a beer.  I'm not a drinker nor a smoker.  That makes me only 1/2 of a man.  [biggrin]

No doubt you are trading some cash-flow for appreciation.  It's great to have both in a portfolio IMO.  The next time you have cash sitting and earning nothing, send it my way.  JK!!!  Sometimes, the best thing to do is doing nothing. 

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mlreits

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Reply with quote  #84 
Gene,

I guess selling your vacation property is not the same as selling your rentals.  Sorry for the misinterpretation.  Anything new?

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mlreits

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Reply with quote  #85 
Quote:
Originally Posted by Homeloanwisdom

As a mortgage lender, I’m not seeing many deals out there. It’s been a few months since a client, investor or intended occupant,  has made purchase that constitutes a good deal in my mind.  If there are some good flips out there, they’ve got to be in the high end homes of San Diego where I can recognize a good “deal” but not a good flip.

For myself I’m holding for the long term or would only consider a 1031 exchange at the present time.  With the value increases to my  3 f &c rentals, it works out at a 5.2% cap rate. Not a great return but selling would get me cash but no income.   Outside of mobile home parks or class C apartments, I don’t see a yield without substantial risk.

 



Thom,

You are correct.  We had lunch with First Republic Bank a couple of weeks ago.  They are getting a little conservative on their lending criteria now.  Given the market seems a little frothy, they are now expecting the investors to put a bigger down payment on their purchases.  The average GRM for apartment buildings in downtown San Jose is at around 14 with pro-forma between 11 to 12 GRM.  At the bottom of the market, these apartments were selling for 11 to 12 GRM with pro-forma between 8.5 to 9.5. 

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brycewheeler

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Reply with quote  #86 
Thom.   Thanks for waring on reverse 1031's.   With $7500 opening costs,  plus cost and red tape of llc, plus at least one year fee to Franchise Board of $800 for minimum annual fee for the LLC,  plus having to buy all-cash and then later finance, no way will I use the reverse 1031, only the regular 1031 for me, if at all. 

Thank you for all the info.

Bryce
mlreits

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Reply with quote  #87 
Bryce,

Thom's post made the reverse 1031X sounds like a big loser. I haven't done one so I'm not qualified to respond. Bill Exeter would be the appropriate person to ask this. The last time I exchanged information with Bill, which was several months ago, he said more people are doing reverse 1031X now because the market is so hot.

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Reply with quote  #88 
Quote:
Originally Posted by mlreits


There's a time to go all in; and there's a time to deleverage.  I'm not quite sure when it's the right time to deleverage.  However, sometimes it's better early than late. 



I don't see this as an all-or-nothing issue.  It is possible to be in all cash, fully invested with zero leverage, or fully invested with maximum leverage; and it is possible to be anywhere else along that scale.  "All cash" is an extreme position, as is "fully invested with maximum leverage".  Determining where to be along that scale depends on your specific situation and opportunities, and requires good judgment.  There is no one-size-fits-all answer to this.  

Quote:


In your opinion, when do you think the stock market will top out?  How about the housing market?



I don't believe that short-term market fluctuations can be predicted with reasonable accuracy, so I can't offer an opinion on that subject.  In the long term, investing makes sense, but over a long lifetime it is reasonable to expect some bumps along the way.  The timing and extent of those bumps are not predictable, and you have to make sure that you don't get in a position where they can wipe you out.
abc

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Reply with quote  #89 
Quote:
Originally Posted by kaihacker
Minh, I am not considering selling.  I will hold until the data tells me to sell, which I think is a ways off.  I want to sell the vacation rental to exchange into a neighborhood that I think has some major upside ahead.

As far as my statement about not enjoying being a landlord...just as different communities have vastly different housing markets, rental markets also vary.  

It is easy to get great cash flow in my area but you have to work for it.  In my area it is a much better deal to own rather than rent, this is why its easy to get really good cash flow.  The flip-side to that is that most people with decent income/credit buy and its very hard to find decent tenants.  If you wait for "an ideal tenant" it may never happen.  

The opposite is true of high end areas with very low cap rates where you can find tenants with high incomes and really high credit scores.

Anyhow I don't have any problem being a property manager with good tenants (and most of my tenants are really great) but the bad apples that get though can be a real drain.




I was going to say the reason Minh and Bryce don't mind being a landlord is because WHERE they own (San Diego and the Bay Area).  Places like San Diego, Bay Area, Seattle, Boston, OC, DC NYC, etc... with perpetually tight rental markets are much different places to be a landlord then cheaper blue collar areas that aren't as desirable places to live.  Most people can't afford to buy in these premium areas so you get good credit, good income people that are forced to be life long renters.  I own rentals in San Diego and have owned in another state that is very blue collar and it is a huge difference.  My SD properties have zero vacancy and take very little time & effort to manage.  My out of state house is a pain in the butt because even a couple that works at Walmart could afford to buy, so you are left with the dregs of society that rent.  That is why late 2008 to late 2011 was such an amazing rare window of opportunity to buy rentals, you could actually get good cash flow in the top premium cities in the U.S. for that short window AND have huge upside appreciation because of the locations.  Yet amazingly you can go back into the archives of this forum and see that some people argued passionately against buy and hold during that window of time.


mlreits

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Reply with quote  #90 
abc,

That's what I have heard.  The quality of tenants here in coastal CA is not the same compared to $30k to $60k properties in fly over states.  It's really hands off here.  If the tenant ever needs anything, I would book it with Sears for appliance repair or have a handyman take care of other issue.  The only time I have to host an open house is when the tenant is moving out.  Vacancy is never an issue. 

I made one bad mistake in 2009 renting to a single mom through a referral. She has no credit at all when we pulled it.  I ended up evicted her.  She apologized on her way out.  [frown]

In April 2012, I decided to rent to another single mom, who had an eviction on her records in 2008.  She was upfront about it and showed up with a credit report.  Basically, she's been trying to rent for over 2.5 years, but no one would rent to her.  I decided to give her a second chance.  I told her if she cannot make the rent, let me know and I will refund her deposit in full.  If not, I will put another eviction on her record and she's done.  9 months into it, she got laid off.  LOL!!!  It was a struggle, but she paid rents every month.  There was a month that she sold her bed set to meet rent.  Then another month she was paying with some $1 bills and quarters.  Talking about commitment.  She said this is the nicest place she had ever rented so she will do whatever it takes to stay in it.  Not sure if that is a good thing.  Like a knife, it cuts both way.  Fortunately, she got another job and everything has been smooth sailing.

Why did I take the unnecessary risk?  It's because everyone deserves a 2nd chance, and I have been very blessed in the last 5.5 years.  I can absorb the minimal rent loss while she can use a nice place to live with her 2 kids.  So far, I have been happy with the decision.  It feels good when you can help others.

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