[Fearful]

No kidding – where is the money going to come from to buy up properties? 1,000 houses x $500K / house = $500M. Even assuming they turn around and sell those houses, they still have to come up with the funds to buy the inventory in the first place. If they hope to issue debt to get there, can you imagine what the interest rate on that debt would have to be? I would only begin to consider that debt at somewhere around 25%.

Now, if the federal government gets into this game, we are all in deep doodoo, because the only exit route for that much debt is inflation.

[Fearful]

And if I were the speculator at the beginning of this thread, I would seriously consider extracting as much money as I could, converting it to gold coins, stuffing them up my ass, and fleeing the country. Hope he knows spanish and can find his way around, as suggested, Costa Rica.

We are entering a phase, the end results of which I saw in Austin around 1992: One fine fellow from Houston came in and spoke to our business school about his ride from $0 to $500M all the way down to negative $500K, all based on Texas real estate. The carnage this time around is going to be just awful.

[Fearful]

And if I were the speculator at the beginning of this thread, I would seriously consider extracting as much money as I could, converting it to gold coins, stuffing them up my ass, and fleeing the country. Hope he knows spanish and can find his way around, as suggested, Costa Rica.

We are entering a phase, the end results of which I saw in Austin around 1992: One fine fellow from Houston came in and spoke to our business school about his ride from $0 to $500M all the way down to negative $500K, all based on Texas real estate. The carnage this time around is going to be just awful.

[Fearful]

And if I were the speculator at the beginning of this thread, I would seriously consider extracting as much money as I could, converting it to gold coins, stuffing them up my ass, and fleeing the country. Hope he knows spanish and can find his way around, as suggested, Costa Rica.

We are entering a phase, the end results of which I saw in Austin around 1992: One fine fellow from Houston came in and spoke to our business school about his ride from $0 to $500M all the way down to negative $500K, all based on Texas real estate. The carnage this time around is going to be just awful.

[Fearful]

And if I were the speculator at the beginning of this thread, I would seriously consider extracting as much money as I could, converting it to gold coins, stuffing them up my ass, and fleeing the country. Hope he knows spanish and can find his way around, as suggested, Costa Rica.

We are entering a phase, the end results of which I saw in Austin around 1992: One fine fellow from Houston came in and spoke to our business school about his ride from $0 to $500M all the way down to negative $500K, all based on Texas real estate. The carnage this time around is going to be just awful.

[Fearful]

I bought my house about 10 years ago. Its worth alot more than I paid for it and always will be. If something were to happen that made it worth less than i paid it wouldnt bother me in the least. I have no desire to sell it and probably never will. As a rental it would be cash flow positive in big way even today.

Now unless I’m not “everyone”, please explain to me how I’ve lost money?

You have lost money because you could have sold for more earlier. Your house has dropped in value, and as long as selling it was an option, that drop in value was a real cost to you.

And only considering the payment means you are ignoring the opportunity cost of money. The monthly cost of your house is cash flow out plus the earning you could have gotten from the capital. For example, the payment on my house in San Jose was about $2,500 a month, but that was on about $450K of the $920K total value. When I sold it, I was able to earn interest on an additional $430K.

None of this is to say that you should have sold earlier, or that you are a fool for not doing so, just that depreciating assets do incur a real cost.

The flip side of this is someone’s comment to me, circa 2000, that I was living effectively rent free in San Jose because of the appreciation of my house. True then, opposite true now.

[Fearful]

I bought my house about 10 years ago. Its worth alot more than I paid for it and always will be. If something were to happen that made it worth less than i paid it wouldnt bother me in the least. I have no desire to sell it and probably never will. As a rental it would be cash flow positive in big way even today.

Now unless I’m not “everyone”, please explain to me how I’ve lost money?

You have lost money because you could have sold for more earlier. Your house has dropped in value, and as long as selling it was an option, that drop in value was a real cost to you.

And only considering the payment means you are ignoring the opportunity cost of money. The monthly cost of your house is cash flow out plus the earning you could have gotten from the capital. For example, the payment on my house in San Jose was about $2,500 a month, but that was on about $450K of the $920K total value. When I sold it, I was able to earn interest on an additional $430K.

None of this is to say that you should have sold earlier, or that you are a fool for not doing so, just that depreciating assets do incur a real cost.

The flip side of this is someone’s comment to me, circa 2000, that I was living effectively rent free in San Jose because of the appreciation of my house. True then, opposite true now.

[Fearful]

I bought my house about 10 years ago. Its worth alot more than I paid for it and always will be. If something were to happen that made it worth less than i paid it wouldnt bother me in the least. I have no desire to sell it and probably never will. As a rental it would be cash flow positive in big way even today.

Now unless I’m not “everyone”, please explain to me how I’ve lost money?

You have lost money because you could have sold for more earlier. Your house has dropped in value, and as long as selling it was an option, that drop in value was a real cost to you.

And only considering the payment means you are ignoring the opportunity cost of money. The monthly cost of your house is cash flow out plus the earning you could have gotten from the capital. For example, the payment on my house in San Jose was about $2,500 a month, but that was on about $450K of the $920K total value. When I sold it, I was able to earn interest on an additional $430K.

None of this is to say that you should have sold earlier, or that you are a fool for not doing so, just that depreciating assets do incur a real cost.

The flip side of this is someone’s comment to me, circa 2000, that I was living effectively rent free in San Jose because of the appreciation of my house. True then, opposite true now.

[Fearful]

I bought my house about 10 years ago. Its worth alot more than I paid for it and always will be. If something were to happen that made it worth less than i paid it wouldnt bother me in the least. I have no desire to sell it and probably never will. As a rental it would be cash flow positive in big way even today.

Now unless I’m not “everyone”, please explain to me how I’ve lost money?

You have lost money because you could have sold for more earlier. Your house has dropped in value, and as long as selling it was an option, that drop in value was a real cost to you.

And only considering the payment means you are ignoring the opportunity cost of money. The monthly cost of your house is cash flow out plus the earning you could have gotten from the capital. For example, the payment on my house in San Jose was about $2,500 a month, but that was on about $450K of the $920K total value. When I sold it, I was able to earn interest on an additional $430K.

None of this is to say that you should have sold earlier, or that you are a fool for not doing so, just that depreciating assets do incur a real cost.

The flip side of this is someone’s comment to me, circa 2000, that I was living effectively rent free in San Jose because of the appreciation of my house. True then, opposite true now.

[Fearful]

There are all degrees of speculator. The house I rent is owned by a nice guy, a physician who moved with his family to Chicago. I calculated the numbers on this place and reckon he is absorbing $1,400 a month negative cash flow. Ouch.

[Fearful]

There are all degrees of speculator. The house I rent is owned by a nice guy, a physician who moved with his family to Chicago. I calculated the numbers on this place and reckon he is absorbing $1,400 a month negative cash flow. Ouch.

[Fearful]

There are all degrees of speculator. The house I rent is owned by a nice guy, a physician who moved with his family to Chicago. I calculated the numbers on this place and reckon he is absorbing $1,400 a month negative cash flow. Ouch.

[Fearful]

There are all degrees of speculator. The house I rent is owned by a nice guy, a physician who moved with his family to Chicago. I calculated the numbers on this place and reckon he is absorbing $1,400 a month negative cash flow. Ouch.

[Fearful]

The SEC investigates unusual activity in a stock. Its investigation diligence is independent of the sizes of transactions. So if there is unusual activity, and the SEC investigates, you could get in trouble for trading a single share. To be safe, you would have to route trades through an unrelated party – which would involve you transferring cash to that party, which would then be detected by the IRS, assuming you routed significant amounts of cash. And, as “sandiego” pointed out, if you do not do this with significant amounts of cash, it will not return enough to be worthwhile.

[Fearful]

The SEC investigates unusual activity in a stock. Its investigation diligence is independent of the sizes of transactions. So if there is unusual activity, and the SEC investigates, you could get in trouble for trading a single share. To be safe, you would have to route trades through an unrelated party – which would involve you transferring cash to that party, which would then be detected by the IRS, assuming you routed significant amounts of cash. And, as “sandiego” pointed out, if you do not do this with significant amounts of cash, it will not return enough to be worthwhile.

[Author]

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