Investing 102

[GregWeld]

Originally Posted by Bucketlist2012

Same Song...."And your Chicks for Free"....Boy we all know they are not free..

Oh I am in Contract on three rental properties......I decided to Diversify even more ....I will know more this next week...Not expensive homes at all, Actually cheap ones, but Positive Cash flow if I get them....

Smart Mike! We all know that housing went UP too much and came DOWN too much. While you might have missed the very bottom - they are still relatively "cheap". Interest rates are cheap and won't stay that way forever. The key is positive cash flow!

I personally like to invest in LLC's that are professionally managed and own class A apartments. They typically pay a 7+% rate (taxable - but offset with depreciation). And in fact I'm now looking at a mixed use building with 48 units and a 30,000 square foot retail rental (long term leased)...


Rentals like houses and apartments are LONG TERM guys --- they tie up your cash -- and have relatively large buy and sell commissions --- so aren't something you can just flip out of. However, they have nice long term capital appreciation - come with some nice taxable incentives - and can spin off great cash flow that generally increases over time. Be prepared for a 7 plus year holding period.

[GregWeld]

Here's an excellent article that is the kind of stuff I read -- even though I know the rules of engagement etc -- stuff like this is a good reminder and can help keep you on track!



http://seekingalpha.com/article/1392...g_income&ifp=0

[68ZClone]

Thanks for jumping back on, Greg. I don't post much, but really appreciate and enjoy reading your posts. Thanks for taking the time with us here.

I was happy to see Costco raise their dividend ($0.275 to $0.31 = 12.7% raise) even though the yield is only 1% annually. However, from this thread, I know why I own it - for growth and yield combination. I bought at $101 and its trading north of $108 now. Purchased it completely with the dividends from my other holdings!

[GregWeld]

Originally Posted by 68ZClone

Thanks for jumping back on, Greg. I don't post much, but really appreciate and enjoy reading your posts. Thanks for taking the time with us here.

I was happy to see Costco raise their dividend ($0.275 to $0.31 = 12.7% raise) even though the yield is only 1% annually. However, from this thread, I know why I own it - for growth and yield combination. I bought at $101 and its trading north of $108 now. Purchased it completely with the dividends from my other holdings!

#1 -- Thanks for posting! I often wonder if I'm just talking to myself!



#2 -- Using your dividends from other stocks to diversify into another name is BRILLIANT and exactly how this can be done!

[glassman]

Originally Posted by GregWeld

#1 -- Thanks for posting! I often wonder if I'm just talking to myself!

Nope, not at all. is your middle name "ef hutton" ? lol

The funny thing is about most forums is everybody has a comment or wants to play armchair quarterback, not this one.

Lateral-g, imo, has class and intelligence. Look, learn & listen. Funny too, cause i talk way too much....

Mike

[camcojb]

Greg,

I can't wait to see the shop plans for the new digs. Congrats!

[GregWeld]

Originally Posted by camcojb

Greg,

I can't wait to see the shop plans for the new digs. Congrats!

Jody -- I don't want to side track this thread... but the plans for the new "shed" will have 5,000 plus square foot shop in the "basement" -- which will also suck up the 65' long toter and trailer. It's very cold in SV -- I want this stored inside -- and washed inside etc. The house sits on the hillside rising up to a ridge... and the cul d sac is 110' diameter... The lot is 1.6 acres at the top of that cul d sac.. and will allow us to split the driveway leading to the shop and then continuing on up to the house...Truck parking with a view! LOL

[WSSix]

Originally Posted by 68ZClone

Thanks for jumping back on, Greg. I don't post much, but really appreciate and enjoy reading your posts. Thanks for taking the time with us here.

I was happy to see Costco raise their dividend ($0.275 to $0.31 = 12.7% raise) even though the yield is only 1% annually. However, from this thread, I know why I own it - for growth and yield combination. I bought at $101 and its trading north of $108 now. Purchased it completely with the dividends from my other holdings!

Sweet! I've been gone for a few days and didn't know this. I won a few shares as well and have been pleased so far.

[Bucketlist2012]

Originally Posted by GregWeld

Smart Mike! We all know that housing went UP too much and came DOWN too much. While you might have missed the very bottom - they are still relatively "cheap". Interest rates are cheap and won't stay that way forever. The key is positive cash flow!

I personally like to invest in LLC's that are professionally managed and own class A apartments. They typically pay a 7+% rate (taxable - but offset with depreciation). And in fact I'm now looking at a mixed use building with 48 units and a 30,000 square foot retail rental (long term leased)...


Rentals like houses and apartments are LONG TERM guys --- they tie up your cash -- and have relatively large buy and sell commissions --- so aren't something you can just flip out of. However, they have nice long term capital appreciation - come with some nice taxable incentives - and can spin off great cash flow that generally increases over time. Be prepared for a 7 plus year holding period.

Thanks Greg.

Yes I am prepared to hold Long Term and these places are really Cheap...

But at those prices and the price I can rent them for, it is a no brainer...They are "cozy" a.k.a. small homes...

I am a small Fish so I need to stay with small rentals...But positive cash flow is the name of the game..

[ErikLS2]

Originally Posted by GregWeld

Rentals like houses and apartments are LONG TERM guys --- they tie up your cash -- and have relatively large buy and sell commissions --- so aren't something you can just flip out of. However, they have nice long term capital appreciation - come with some nice taxable incentives - and can spin off great cash flow that generally increases over time. Be prepared for a 7 plus year holding period.

Umm, got 46 units in San Antonio that I'm thinking of getting out of. Anyone?? Anyone???