Investing 102

[GregWeld]

Originally Posted by Vegas69

You must have hobbies as an outlet. I pissed so much money away in this one and others. This hobby just happens to be the most expensive and time consuming I've every experienced. I'm enjoying the simplicity of hunting, fishing, golfing, fitness, etc.... for hobbies. In comparison, they are inexpensive and easy. Once I get where I want to be and the desire is back, I'll put a brawler together. Maybe I'll just buy yours when the Wife puts her foot down.

It always amazes me when discussing our hobby with people... how many people are trying to build a 100K car on a 75K salary. I shake my head to try to clear out the cobwebs hoping I didn't hear incorrectly. I just paid 15K to the upholstery shop for Rudys Camaro... and I wonder how long it would take for someone to "save" this amount... and how much it would EARN if put into something important vs upholstery!

I just read that people are once again using their homes as piggy banks... there were numbers to back up the claim.

I find this absolutely STUNNING.... apparently "we" never learn from our past mistakes.

[Tony_SS]

Nice going Todd... well done!

[slow4dr]

Congrats Todd! How long had you been shopping/making offers before you found this one?

I would be all over doing another rental but the competition is fierce is my area. I can't compete with the cash buyers.

On a side note: I check Redfin daily for new listings. I have noticed a number of instances where I get an e-mail for a new listing but it already shows as "Pending" even though the actual listing date is old.

[WSSix]

Originally Posted by GregWeld

It always amazes me when discussing our hobby with people... how many people are trying to build a 100K car on a 75K salary. I shake my head to try to clear out the cobwebs hoping I didn't hear incorrectly. I just paid 15K to the upholstery shop for Rudys Camaro... and I wonder how long it would take for someone to "save" this amount... and how much it would EARN if put into something important vs upholstery!

I just read that people are once again using their homes as piggy banks... there were numbers to back up the claim.

I find this absolutely STUNNING.... apparently "we" never learn from our past mistakes.

We are a materialistic society. I can understand it to an extent as I think we all suffer from it but I personally believe too many people have taken it way too far.

Today I just saw a new GMC Escalade advertised for $71k. I had no idea they cost so much. That's a stupid amount of money to pay for that vehicle yet they are everywhere. There's no way all the people owning them can truly afford them. But, we live in a gotta have it society. It's going to harm us all again.

[Bucketlist2012]

Trey...

It is going to harm a lot of people...We have to be the smart one's and stay as debt free as possible...

Another bubble will form and burst and we need to be the one's that don't get harmed...

It is like chess, and we need to look a few moves ahead so we are ready..

Americans have a short attention span...They don't remember history and they live in an Internet, ATM, Drive through world....Now, Now, Now...

So just get ready and be smart..That is all we can do.

[Vegas69]

Originally Posted by GregWeld

It always amazes me when discussing our hobby with people... how many people are trying to build a 100K car on a 75K salary. I shake my head to try to clear out the cobwebs hoping I didn't hear incorrectly. I just paid 15K to the upholstery shop for Rudys Camaro... and I wonder how long it would take for someone to "save" this amount... and how much it would EARN if put into something important vs upholstery!

I just read that people are once again using their homes as piggy banks... there were numbers to back up the claim.

I find this absolutely STUNNING.... apparently "we" never learn from our past mistakes.

There are alot of folks in this country that are in for a real rude awakening. The grey poupon mindset of the average American that doesn't want to work for it spells some real touble in THEIR lives.

If you change, everything will change for you. Things have changed one hell of alot in the last 10 years. You have two choices, regress with the same mentality you had when things were to easy OR progress through adaptation, education, become more economical, better time management, and ultimately, separate yourself from your competition.

To many wish things were the same as they used to be. Not going to happen...
That's just my humble opinion.

Originally Posted by Tony_SS

Nice going Todd... well done!

Thank you Tony!

Originally Posted by slow4dr

Congrats Todd! How long had you been shopping/making offers before you found this one?

I would be all over doing another rental but the competition is fierce is my area. I can't compete with the cash buyers.

On a side note: I check Redfin daily for new listings. I have noticed a number of instances where I get an e-mail for a new listing but it already shows as "Pending" even though the actual listing date is old.

Both I bought this year were in house deals. Number on was a listing of my brokers that never hit the market. This one was a referral from a past client of mine and I bought it. We put all the paperwork in my team agents name and processed his short sale. He's extremely happy and so am I.

I'd find a local agent that slings some business in a productive office and tell them to go shake some hands.

[slow4dr]

Originally Posted by Vegas69

Both I bought this year were in house deals. Number on was a listing of my brokers that never hit the market. This one was a referral from a past client of mine and I bought it. We put all the paperwork in my team agents name and processed his short sale. He's extremely happy and so am I.

I'd find a local agent that slings some business in a productive office and tell them to go shake some hands.

Damn, that pretty much sums up why I can't compete in today's market. When I bought in 2010 I had been shopping and making offers for 6-9 months. I was so fed up with the whole process that I almost got my license. In the process of making so many offers I probably used 15 different agents. I found a few that were very proactive that I really enjoyed working with and will use in the future.

Inventory levels are 25% of what they were in 2010 in my area so I don't even bother seriously looking right now.

[realcoray]

Originally Posted by slow4dr

Damn, that pretty much sums up why I can't compete in today's market. When I bought in 2010 I had been shopping and making offers for 6-9 months. I was so fed up with the whole process that I almost got my license. In the process of making so many offers I probably used 15 different agents. I found a few that were very proactive that I really enjoyed working with and will use in the future.

Inventory levels are 25% of what they were in 2010 in my area so I don't even bother seriously looking right now.

It's definitely possible to find solid investments right now, it isn't like the pros just throw their hands up, they are out there grinding and finding deals.

If you're looking for investments, I would suggest NOT using an agent to find you properties because in my experience most agents are not aware of what constitutes a good investment. Even if they have their own, they are often holding onto money losers.

You don't have to have your license, you just need an agent who is fine with you being in charge, picking out things to look at and operating at your pace.

[Vegas69]

Originally Posted by realcoray

It's definitely possible to find solid investments right now, it isn't like the pros just throw their hands up, they are out there grinding and finding deals.

If you're looking for investments, I would suggest NOT using an agent to find you properties because in my experience most agents are not aware of what constitutes a good investment. Even if they have their own, they are often holding onto money losers.

You don't have to have your license, you just need an agent who is fine with you being in charge, picking out things to look at and operating at your pace.

This is why I work with very few investors. I'll take my clients that buy and sell and think they owe me dinner.

[slow4dr]

Originally Posted by realcoray

It's definitely possible to find solid investments right now, it isn't like the pros just throw their hands up, they are out there grinding and finding deals.

If you're looking for investments, I would suggest NOT using an agent to find you properties because in my experience most agents are not aware of what constitutes a good investment. Even if they have their own, they are often holding onto money losers.

You don't have to have your license, you just need an agent who is fine with you being in charge, picking out things to look at and operating at your pace.

I am not arguing that there are plenty of solid investments out there. The problem is getting an offer accepted. I was very proactive in 2010 trying to find something, even offering 5%-10% over in some cases and ended up closing two days after Christmas. I fought tooth and nail for months and never gave up. It was an extremely stressful process and my wife was pregnant at the time so it is not a happy memory. The thought of going through that now with an 18 month old and a 5 year old just doesn't sit well with me. Especially given the fact that inventory levels are even lower now.

Every single house I looked at (which was hovering around 100 in a 9 month period) was researched and found by yours truly through Redfin. Never once did any of the agents call me about a house that fit my criteria, I was always one step ahead of them, which is truly sad.