Investing 102

[Vegas69]

Originally Posted by GregWeld

You'll only ever know "early" and "greedy" when it's history. You never know this at the time of the decision. I 100% agree with your statement that it all depends... each persons time horizon - ability - goals - are different.

Being DEBT FREE is one of the biggest statements a person can make. It's also one of the biggest goals EVERYONE should have. Nobody ever went broke taking a profit.

XOXO

As of last Friday, we paid off the house and have 0 debt. It feels pretty damn good! The idea of not getting anymore bills for car payments or mortgages is really kind of strange. I've had some type of debt my entire adult life. It was consdiderable not so long ago. Living this far below our means really opens up many doors. It gives us the flexibility to work less, save more, give more, travel more, and be more content. The bible said it best, "The borrower is slave to the lender". I get rid of the liabilities, bills, insurance, tenants, repairs, property manager, larger CPA bill, and on down the line.

Now, I do still believe in strategic debt for investing if the risks aren't too great, you've thoroughly educated yourself, and have a real strategy in place. That means cashing out if there is a healthy gain. Owing taxes is a GREAT problem to have! It served me well in real estate. I do have to admit that I came very close to getting caught with my shorts around my ankles twice using this strategy. You shouldn't have to fudge the numbers to make it work, it either works or it doesn't. Are the fundamentals there? Meaning, the market trends looks right and the ROI is reasonable. Can you survive a suffering economy, repairs, and vacancy factor financially?

[dhutton]

Originally Posted by Vegas69

As of last Friday, we paid off the house and have 0 debt. It feels pretty damn good! The idea of not getting anymore bills for car payments or mortgages is really kind of strange. I've had some type of debt my entire adult life. It was consdiderable not so long ago. Living this far below our means really opens up many doors. It gives us the flexibility to work less, save more, give more, travel more, and be more content. The bible said it best, "The borrower is slave to the lender". I get rid of the liabilities, bills, insurance, tenants, repairs, property manager, larger CPA bill, and on down the line.

Now, I do still believe in strategic debt for investing if the risks aren't too great, you've thoroughly educated yourself, and have a real strategy in place. That means cashing out if there is a healthy gain. Owing taxes is a GREAT problem to have! It served me well in real estate. I do have to admit that I came very close to getting caught with my shorts around my ankles twice using this strategy. You shouldn't have to fudge the numbers to make it work, it either works or it doesn't. Are the fundamentals there? Meaning, the market trends looks right and the ROI is reasonable. Can you survive a suffering economy, repairs, and vacancy factor financially?

Congratulations Todd. We went debt free last fall. You are right, it feels pretty damn good.

Don

[Vegas69]

Back at you Don, congrats!

[GregWeld]

You guys have no idea how big a smile this puts on my fat little face! I know now that I can leave this earth and know this thread helped a couple people live better lives. My job is complete.

[GregWeld]

So -- I was just listening to statistics for "MAY" -- and the "sell in May and go away" -- which gets lots of questions in this thread. And I normally say - pay no attention to all that kind of stuff - it's trader talk - not investor talk.

May was UP (percentage wise) more than almost any other month.... so if you sold - you blew it. LOL

[dhutton]

Originally Posted by GregWeld

You guys have no idea how big a smile this puts on my fat little face! I know now that I can leave this earth and know this thread helped a couple people live better lives. My job is complete.

I think it has helped a lot more than a few. Some more than others maybe but a lot of folks just the same. Thanks Greg!

Don

[96z28ss]

Originally Posted by GregWeld

You guys have no idea how big a smile this puts on my fat little face! I know now that I can leave this earth and know this thread helped a couple people live better lives. My job is complete.

You have helped a lot more than a couple people with this thread.
I thank you every time I look at my portfolio, and say if it wasn't for Greg it would still be in someone else hands. I would of had very little control. Now I apply what you have taught. I won't be rich tomorrow, but I hope to retire comfortably.

[ErikLS2]

Congrats Todd and Don for being debt free!! I only owe on my house, at 3.75% and a commercial income property with about 50% equity in it so I'm pretty good as well. Now, if either of you miss ever miss it, you're free to make a couple of my house payments if you like!

Anyone seen "Money For Nothing" on Netflix? Highly recommend it, maybe the next bubble that bursts, we've been on an 8 year cycle and it's about 8 since the last one.

[Vegas69]

Thanks, Erik!

I'd be seriously looking at your local market and making a firm decision on whether it's time to "Take your money and run". If the decision is no, you should be ready to ride out the next low cycle. I know commercial leases can run through cycles, but if that business was to fold, you could be left with a vacancy.

I'm on the residential side, but I have some commercial knowledge here. What seemed to happen with the last cycle was that tenants migrated into newer, nicer spaces for a similar outlay. That left many of the older buildings with vacancies.

Going back into debt or getting back into the market is EASY. Those liabilities and opportunities are plentiful. Timing dictates the latter...

[ironworks]

Originally Posted by Vegas69

Thanks, Erik!

I'd be seriously looking at your local market and making a firm decision on whether it's time to "Take your money and run". If the decision is no, you should be ready to ride out the next low cycle. I know commercial leases can run through cycles, but if that business was to fold, you could be left with a vacancy.

I'm on the residential side, but I have some commercial knowledge here. What seemed to happen with the last cycle was that tenants migrated into newer, nicer spaces for a similar outlay. That left many of the older buildings with vacancies.

Going back into debt or getting back into the market is EASY. Those liabilities and opportunities are plentiful. Timing dictates the latter...

Todd - Do you mind sharing some of the key factors your talking about in the real estate market. I'm looking at purchasing a the building we currently occupy and have found the open lease space ratio to be getting higher but not alot for sale just yet. But I'm wondering if this is the time. I think things are gonna go on sale and I seem to keep hearing that the sky i falling and alot of smart guys are prepping for market correction. CASH is KING. Just trying to learn all I can.