We are richer when house prices go down

[Raybyrnes]

Cd rate are now falling on aaverage to around 3% so if Felix is able to get 4+ that is a 25% premium he is potentially realizing on his investment. He is being slammed by the board for investment ideas that he clearly expressed. He additionally made it apparent that this is a very long term investment and he has sustaining power with income. Additionally he has stated that he already ahs other asset classes covered. All I am trying to do is provide benefit of the doubt.

This much I know for sure. I have a friend who is a bankrupcy attorney in the NY area who owns a real estate brokerage and he is buying properties on the cheap and is cash flowing them out with above average rates of return. For people to say no one can do it is a false sense of market realities.

There are always a select few who can turn profits even in tough environments. This typically requires capital and expertise. Who is to say that Felix does not ahve that. He has offered an opinion that there are properties out there. He is a contrarion and he thinks this is going to be suitable for him. He might be a troll but from his statements I see nothing that is suggestive of him telling anyone else to go out and buy only that it made sense for him. Addiitonally how many people have the ability to pay cash for a high end home. That eliminates 99.9% of the board.

[JWM in SD]

JWM in SD
Don’t make me laugh Raybyrnes. Did you actually read his posts? He basically said it was impossible to time an RE purchase. We know that is not true. I have a MM acct that yields almost 5 percent. Why would I put my money into a deflating asset?

Regarding your theory on buying the REO at 700k vs. 1.2m…it really isn’t worth 1.2m and the rent would not be commensurate.

[JWM in SD]

JWM in SD
Don’t make me laugh Raybyrnes. Did you actually read his posts? He basically said it was impossible to time an RE purchase. We know that is not true. I have a MM acct that yields almost 5 percent. Why would I put my money into a deflating asset?

Regarding your theory on buying the REO at 700k vs. 1.2m…it really isn’t worth 1.2m and the rent would not be commensurate.

[JWM in SD]

JWM in SD
Don’t make me laugh Raybyrnes. Did you actually read his posts? He basically said it was impossible to time an RE purchase. We know that is not true. I have a MM acct that yields almost 5 percent. Why would I put my money into a deflating asset?

Regarding your theory on buying the REO at 700k vs. 1.2m…it really isn’t worth 1.2m and the rent would not be commensurate.

[JWM in SD]

JWM in SD
Don’t make me laugh Raybyrnes. Did you actually read his posts? He basically said it was impossible to time an RE purchase. We know that is not true. I have a MM acct that yields almost 5 percent. Why would I put my money into a deflating asset?

Regarding your theory on buying the REO at 700k vs. 1.2m…it really isn’t worth 1.2m and the rent would not be commensurate.

[JWM in SD]

JWM in SD
Don’t make me laugh Raybyrnes. Did you actually read his posts? He basically said it was impossible to time an RE purchase. We know that is not true. I have a MM acct that yields almost 5 percent. Why would I put my money into a deflating asset?

Regarding your theory on buying the REO at 700k vs. 1.2m…it really isn’t worth 1.2m and the rent would not be commensurate.

[Raybyrnes]

Can’t have it both ways.

People argue that real esate does not move as fast as the stock market yet it moved way faster than the stock market on the upside and has been moving way faster than the market on the downside. One might measure this in terms of velocity.

This is the data.

So if it is moving as fast or faster than the stock market how are you suggesting that it can be timed. Almost all data suggests that market timers are inefficient and will trail returns of long term investors.

[Raybyrnes]

Can’t have it both ways.

People argue that real esate does not move as fast as the stock market yet it moved way faster than the stock market on the upside and has been moving way faster than the market on the downside. One might measure this in terms of velocity.

This is the data.

So if it is moving as fast or faster than the stock market how are you suggesting that it can be timed. Almost all data suggests that market timers are inefficient and will trail returns of long term investors.

[Raybyrnes]

Can’t have it both ways.

People argue that real esate does not move as fast as the stock market yet it moved way faster than the stock market on the upside and has been moving way faster than the market on the downside. One might measure this in terms of velocity.

This is the data.

So if it is moving as fast or faster than the stock market how are you suggesting that it can be timed. Almost all data suggests that market timers are inefficient and will trail returns of long term investors.

[Raybyrnes]

Can’t have it both ways.

People argue that real esate does not move as fast as the stock market yet it moved way faster than the stock market on the upside and has been moving way faster than the market on the downside. One might measure this in terms of velocity.

This is the data.

So if it is moving as fast or faster than the stock market how are you suggesting that it can be timed. Almost all data suggests that market timers are inefficient and will trail returns of long term investors.

[Raybyrnes]

Can’t have it both ways.

People argue that real esate does not move as fast as the stock market yet it moved way faster than the stock market on the upside and has been moving way faster than the market on the downside. One might measure this in terms of velocity.

This is the data.

So if it is moving as fast or faster than the stock market how are you suggesting that it can be timed. Almost all data suggests that market timers are inefficient and will trail returns of long term investors.

[patientlywaiting]

Investing in RE might yield a modicum of a return right now if you assume that the real estate will not lose value. But it does. Is that fact taken into the ROI calculation?

[patientlywaiting]

Investing in RE might yield a modicum of a return right now if you assume that the real estate will not lose value. But it does. Is that fact taken into the ROI calculation?

[patientlywaiting]

Investing in RE might yield a modicum of a return right now if you assume that the real estate will not lose value. But it does. Is that fact taken into the ROI calculation?

[patientlywaiting]

Investing in RE might yield a modicum of a return right now if you assume that the real estate will not lose value. But it does. Is that fact taken into the ROI calculation?

[Author]

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