Investing in Non Performing Loans (NPNs)

[clearfund]

I have been actively reading it for over a year + but have never registered/commented till now.

[Allan from Fallbrook]

[quote=clearfund]
FLIPPING IS NOT INVESTING: BE AN INVESTOR, NOT A FLIPPER!!![/quote]

Clearfund: However, what you’re advocating isn’t investing, either. Its speculating, pure and simple.

Regardless of your “transaction structure”, you’re still making bets on someone else’s valuation (either the market’s or prevailing wisdom at the time) and that is both volatile and dangerous.

You can tinker with the numbers on either a DCF or FV basis to support your valuation, but isn’t that how we got into this mess in the first place?

Using Vegas as an example, you have no way of actually predicting (with any degree of accuracy) where values will be over your timeline, which is directly opposed to being able to predict (with a fair degree of accuracy) where a company’s fortunes will take them over the same period using simple valuation tools. Hence, the difference between speculation and investment.

[Allan from Fallbrook]

[quote=clearfund]
FLIPPING IS NOT INVESTING: BE AN INVESTOR, NOT A FLIPPER!!![/quote]

Clearfund: However, what you’re advocating isn’t investing, either. Its speculating, pure and simple.

Regardless of your “transaction structure”, you’re still making bets on someone else’s valuation (either the market’s or prevailing wisdom at the time) and that is both volatile and dangerous.

You can tinker with the numbers on either a DCF or FV basis to support your valuation, but isn’t that how we got into this mess in the first place?

Using Vegas as an example, you have no way of actually predicting (with any degree of accuracy) where values will be over your timeline, which is directly opposed to being able to predict (with a fair degree of accuracy) where a company’s fortunes will take them over the same period using simple valuation tools. Hence, the difference between speculation and investment.

[Allan from Fallbrook]

[quote=clearfund]
FLIPPING IS NOT INVESTING: BE AN INVESTOR, NOT A FLIPPER!!![/quote]

Clearfund: However, what you’re advocating isn’t investing, either. Its speculating, pure and simple.

Regardless of your “transaction structure”, you’re still making bets on someone else’s valuation (either the market’s or prevailing wisdom at the time) and that is both volatile and dangerous.

You can tinker with the numbers on either a DCF or FV basis to support your valuation, but isn’t that how we got into this mess in the first place?

Using Vegas as an example, you have no way of actually predicting (with any degree of accuracy) where values will be over your timeline, which is directly opposed to being able to predict (with a fair degree of accuracy) where a company’s fortunes will take them over the same period using simple valuation tools. Hence, the difference between speculation and investment.

[Allan from Fallbrook]

[quote=clearfund]
FLIPPING IS NOT INVESTING: BE AN INVESTOR, NOT A FLIPPER!!![/quote]

Clearfund: However, what you’re advocating isn’t investing, either. Its speculating, pure and simple.

Regardless of your “transaction structure”, you’re still making bets on someone else’s valuation (either the market’s or prevailing wisdom at the time) and that is both volatile and dangerous.

You can tinker with the numbers on either a DCF or FV basis to support your valuation, but isn’t that how we got into this mess in the first place?

Using Vegas as an example, you have no way of actually predicting (with any degree of accuracy) where values will be over your timeline, which is directly opposed to being able to predict (with a fair degree of accuracy) where a company’s fortunes will take them over the same period using simple valuation tools. Hence, the difference between speculation and investment.

[Allan from Fallbrook]

[quote=clearfund]
FLIPPING IS NOT INVESTING: BE AN INVESTOR, NOT A FLIPPER!!![/quote]

Clearfund: However, what you’re advocating isn’t investing, either. Its speculating, pure and simple.

Regardless of your “transaction structure”, you’re still making bets on someone else’s valuation (either the market’s or prevailing wisdom at the time) and that is both volatile and dangerous.

You can tinker with the numbers on either a DCF or FV basis to support your valuation, but isn’t that how we got into this mess in the first place?

Using Vegas as an example, you have no way of actually predicting (with any degree of accuracy) where values will be over your timeline, which is directly opposed to being able to predict (with a fair degree of accuracy) where a company’s fortunes will take them over the same period using simple valuation tools. Hence, the difference between speculation and investment.

[Jumby]

Allan, can’t a person purchase a NPN based upon what the unit will rent for? How is that not investing?

[Jumby]

Allan, can’t a person purchase a NPN based upon what the unit will rent for? How is that not investing?

[Jumby]

Allan, can’t a person purchase a NPN based upon what the unit will rent for? How is that not investing?

[Jumby]

Allan, can’t a person purchase a NPN based upon what the unit will rent for? How is that not investing?

[Jumby]

Allan, can’t a person purchase a NPN based upon what the unit will rent for? How is that not investing?

[peterb]

Econ prof has a point about rents. Since they are far more reliable than valuations, it’s a decent plan B should the valuations take a hit. But you may end-up being an out of state landlord. special kind of hell. But in a market that’s this heavily manipulated, risk is very high.

[peterb]

Econ prof has a point about rents. Since they are far more reliable than valuations, it’s a decent plan B should the valuations take a hit. But you may end-up being an out of state landlord. special kind of hell. But in a market that’s this heavily manipulated, risk is very high.

[peterb]

Econ prof has a point about rents. Since they are far more reliable than valuations, it’s a decent plan B should the valuations take a hit. But you may end-up being an out of state landlord. special kind of hell. But in a market that’s this heavily manipulated, risk is very high.

[peterb]

Econ prof has a point about rents. Since they are far more reliable than valuations, it’s a decent plan B should the valuations take a hit. But you may end-up being an out of state landlord. special kind of hell. But in a market that’s this heavily manipulated, risk is very high.

[Author]

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