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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Here's why I'm excited... Posted by Paul on August 25, 2006 at 8:39 AM In Reply to: Here's why I'm excited... posted by Ward-CA on August 23, 2006 at 9:15 PM Ward: I look forward to seeing pictures of you acting as Jim Wood's "racing monkey" on his three-wheeler. Good luck. Paul : Bob, : It’s a surprising fact that most foreclosure investors do not have many rentals at all. I guess their mind set is to be in and out rapidly rather than holding on for the indefinite future. And it probably has a lot to do with being bogged down with the endless chore of property management. : But people with lots of long term rentals don’t fixate at all on the constant rise and fall of the value of their holdings. And that attitude makes sense since they are primarily focused on cash flow during their multi-year holding periods. : I for one, don’t care a twit what my current property values actually amount to. They’re all free and clear here in sunny San Diego, with a couple of million bucks of equity lines of credit at the ready. So my Section 8 cash flow is gushing by direct deposit into my bank account and I have no worries. : Whenever the coming implosion hits most of the pro’s will be at the ready—all primed up and ready to rumble. The debacle should last several years. During that time I expect to add another dozen or so keepers to my inventory and bank a lot more cash too. : By that time Ireland should be just about ready to take a sharp fall too. So I’ll probably be over there for a couple of more years. : Then I might pull up a spell and do a little racing. : Hope this helps, : -------------Ward---------- : =========================== : : Ward, : Don't most "foreclosure investors" also have a portfolio of rentals. If the market drops as expected and the equity in the rentals drop by say $3,000,000 (30%) in a $10,000,000 of market value rental unit portfolio. It would take lots of new activity to make up those paper losses. Also, having gone through several down cycles as a flipper, the down cycles are not where my net worth had the biggest increases. I have been able to purchase rentals effectively in a down market, however the flipping for production of cash had been very challenging during those times. How can a down market best be worked for production of cash, preservation of equity in existing portfolio and creation of new equity from new acquisitions. Thanks for your opinion. ?: =================================== Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : Ward: I look forward to seeing pictures of you acting as Jim Wood's "racing monkey" on his three-wheeler. Good luck. : Paul : : Bob, : : It’s a surprising fact that most foreclosure investors do not have many rentals at all. I guess their mind set is to be in and out rapidly rather than holding on for the indefinite future. And it probably has a lot to do with being bogged down with the endless chore of property management. : : But people with lots of long term rentals don’t fixate at all on the constant rise and fall of the value of their holdings. And that attitude makes sense since they are primarily focused on cash flow during their multi-year holding periods. : : I for one, don’t care a twit what my current property values actually amount to. They’re all free and clear here in sunny San Diego, with a couple of million bucks of equity lines of credit at the ready. So my Section 8 cash flow is gushing by direct deposit into my bank account and I have no worries. : : Whenever the coming implosion hits most of the pro’s will be at the ready—all primed up and ready to rumble. The debacle should last several years. During that time I expect to add another dozen or so keepers to my inventory and bank a lot more cash too. : : By that time Ireland should be just about ready to take a sharp fall too. So I’ll probably be over there for a couple of more years. : : Then I might pull up a spell and do a little racing. : : Hope this helps, : : -------------Ward---------- : : =========================== : : : : Ward, : : Don't most "foreclosure investors" also have a portfolio of rentals. If the market drops as expected and the equity in the rentals drop by say $3,000,000 (30%) in a $10,000,000 of market value rental unit portfolio. It would take lots of new activity to make up those paper losses. Also, having gone through several down cycles as a flipper, the down cycles are not where my net worth had the biggest increases. I have been able to purchase rentals effectively in a down market, however the flipping for production of cash had been very challenging during those times. How can a down market best be worked for production of cash, preservation of equity in existing portfolio and creation of new equity from new acquisitions. Thanks for your opinion. ?: =================================== Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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