Investing 102

[Vegas69]

Originally Posted by GregWeld

I made a small fortune buying apartments in Scottsdale right after the Savings and Loan crash.... you could buy them for 50 cents on the dollar. It was instant equity.

For the people that lost money on the house flipping craziness -- there's a ton of people that have made a killing buying those losses and holding them. One side was a fad driven by cheap money and non-existent credit scores -- the other side is brilliance.

Personally -- I think the FED has completely missed the inflation rate once again. I hope it doesn't end badly. I was in business in the late 70's and early 80's when interest rates rose to 15 and 18%.... and you couldn't print a price list fast enough to keep ahead. It was ugly.

I used to make huge money almost daily flipping Microsoft - Cisco - Intel - Dell.... and the only thing that saved my bacon (day trading 3 million dollars) was that I decided to pay all cash for a new house (2 million) and then gut and remodel it (600K). Right when we were in the midst of the remodel -- the DOT.COM bust happened --- and I'd stopped flipping stocks because I was too busy with the house remodel. My favorite saying --- Better lucky, than smart.


Check the PRICE and TAX history section for that house! Lucky me!


https://www.zillow.com/homes/for_sal...59_rect/17_zm/


Having been an investor thru most of what you describe in the crash scenarios is what led me to believe in the dividend stocks. I've lived thru or been involved in many of those episodes you describe in the book. Making CASH is KING.... and when others are wringing their hands or frozen out --- it's the cash that allows you to take advantage of their mistakes.

I got lucky along the way myself. While it sucked selling real estate in 2008-2012, I did take advantage on the real estate investing side and certainly in the rising market twice in the last decade in my real estate business. The recession forced me to be a much better business man and those skills will serve me for life.

Next time the stock market looks BAD, I"m in.