Investing 102

[SLO_Z28]

I kind of have to ask what area you're looking in? One of my best friends neighbors' has their house for sale, 1400sqft on 8 acres with a barn, and its in the only county that is completely smog exempt in ca (new and old cars) all for $150,000. http://www.trulia.com/property/30805...urson-CA-95225

Ive been looking up in that area, I get paid more to work there and I could buy 2 houses for what I pay for rent here in so-cal, there are a couple dozen nice homes in the $60,000-75,000 in that area too.

[Bucketlist2012]

Originally Posted by SLO_Z28

I kind of have to ask what area you're looking in? One of my best friends neighbors' has their house for sale, 1400sqft on 8 acres with a barn, and its in the only county that is completely smog exempt in ca (new and old cars) all for $150,000. http://www.trulia.com/property/30805...urson-CA-95225

Ive been looking up in that area, I get paid more to work there and I could buy 2 houses for what I pay for rent here in so-cal, there are a couple dozen nice homes in the $60,000-75,000 in that area too.

It was in Redding of all places, near her Family.. A real high end gated community. The house was valued at over one million a few years ago.. I don't really want to move there and Like I said, it is in bad shape. The smaller houses in the neighborhood are really nice, and sell for 350,000 to 500,000, but they are in great shape. I could get this house for less than 300K, but I don't want it. It sits on 3 acres. To replace the landscaping would be 50,000 dollars.

I have a great home now in the bay area, with many custom features that I just had done.Hardwoods, granite, custom stairs.

My Wife just misses her family.
So there is the problem. I can live where I am at, and she wants to move, and move up again...

But it won't be happening , and my Wife is getting used to the idea finally..

She understands about over Leveraging...

[glassman]

I think you made a good decision.

Happy wife, happy life. Only to an extent imo. A good marriage is about compromise, we both give and we both take. 24 years and counting and we are mid 40's.

I think Dirty Harry said it best..."a man has got to know his limitations..."

And if you've got your health, you've got your wealth....thanx for all your input, this is a GREAT thread...

[Bucketlist2012]

Originally Posted by glassman

I think you made a good decision.

Happy wife, happy life. Only to an extent imo. A good marriage is about compromise, we both give and we both take. 24 years and counting and we are mid 40's.

I think Dirty Harry said it best..."a man has got to know his limitations..."

And if you've got your health, you've got your wealth....thanx for all your input, this is a GREAT thread...

Thanks man. I know that Dirty Harry Line... And I believe I have made the right decision.

As far as my health, well that is another story, but I am working on it..That is another reason for not moving... Bad Health. Better to stay where I am at.

So, too many reasons not to do it.. So I had to say no.

And she is coming around after a few rough days. She knows my job is to protect our wealth first..And my Health/Life...

And yes this thread is great..I thank everyone who posts.I am always learning something.

[67pro-street]

Found this article online and I thought it played pretty well with everything that has been discussed throughout this thread. Just thought I'd share in case anybody wants to read...

http://finance.fortune.cnn.com/2012/...d-name-stocks/

[GregWeld]

Excellent article.

What the underlying message is saying is that you don't need to gamble on the get rich quick stocks everyone talks about... You can get quite rich INVESTING in great companies with long histories of good earnings and dividends. The key difference - you can bet the farm (and loose the farm) trying to be an instant millionaire - or you can grow your money over a long period and get there.

What I've tried to show people is that once you have a proper amount invested in the right stuff -- and it's spinning off income/returns.... THEN you can afford to take a flier once in awhile and maybe hit a double or triple in the fast lane. But you have to build that base first!


I'm going to put a half a million into another apartment complex LLC... These types of investments are illiquid... You have no control over your capital... You can't just make a call and pull your money out. The reason I can do these is because I don't/won't need the money for anything. The group I invest with and have invested with for many years thinks like I do. We go in - buy right - put 45 to 50% down - get fixed financing - and have a pool of capital established to immediately upgrade the properties - thus also increase rental rates. These spin off nice cash flow and depreciation (a nice tax benefit) - and the last one I did returned 117% on capital in 4 years (sold it).

It's the above types of investments why people say the rich get richer. It's true. But you have to have that base of good investments FIRST - because if not - and you put your money into a rental house - or some illiquid investment - you'll stand a chance of losing it because in a year or two or three you'll have an emergency and need the money - and someone will cash you out it, but only at a steep discount... But if you have other liquidity - stocks etc - then you have wiggle room.

So that's why people need to be diversified and liquid until they reach a point where they can branch out and take on other types of investments.

[toy71camaro]

That was a great article. I think i may send it to a few friends that need a little help with this sort of stuff.

And yeah, as for the "get rich quick" stocks.. fuggettaboutit. Atleast, not for me. I've got way to far to go/catch up to risk any big losses. Slow and steady will win the race for me. Hopefully.

On a side note, I've convinced our Owner and Accountant to look into letting us with 401ks to establish a PBA to allow us to invest our 401ks in individual stocks rather than mutual funds. They haven't made any moves yet. But just the fact their "Looking into it" helps.... Hopefully it goes through. (Small company, about 25 employees). I've held off (yet again) restructuring my 401k after hearing that. As i don't want to take any penalties to move it if it does go thru.

[Bucketlist2012]

Another great point from Mr. Weld..

If I was to use a few words for my strategy, it would be Diversified,Global,Nimble, and Liquid.

Only a 40% LTV Fixed Mortgage on my Home, is not Liquid. Everything else is. I put that much down to dial in a payment I am comfortable with.

I have not reached the point of buying additional properties yet. I would say I am two thirds liquid, in long term Investments.

That is why I did not Buy the other home. It would upset my balance, and put me in a leveraged position that I wasn't comfortable with.

What took decades to put together, could come unraveled in one year.

Slow and steady wins the race..Sure I gamble 15% of my Liquid money on high yield stuff, but the rest is pretty boring stuff.

That is why this thread is called Investing, and not Speculating.

SIDE NOTE...The Property I was looking at, was a guy who had many properties and investments..Shopping malls, Car Dealerships, ect....Sadly, not anymore...So a lesson to be learned, from others...

[GregWeld]

Originally Posted by Bucketlist2012

That is why this thread is called Investing, and not Speculating.

EXACTLY!


You have no idea how many calls and emails I get asking about some speculative investment "idea" -- you know -- the old "can't loose" investment of a decade.

I PASS on all of 'em. If I want to gamble I'll go to some indian casino... Oh wait! I don't even do that!

[Bucketlist2012]

Originally Posted by GregWeld

EXACTLY!


You have no idea how many calls and emails I get asking about some speculative investment "idea" -- you know -- the old "can't loose" investment of a decade.

I PASS on all of 'em. If I want to gamble I'll go to some indian casino... Oh wait! I don't even do that!

Amen.. I truly think that even Investing is a form of gambling. Sure we study, learn, calculate numbers, but in the end, it is Investing/Gambling.

But leaving it in the bank is madness and a sure drain on your money..

So my only Risk is Investing, mostly boring, and a few high risk assets..

I am a Simple man, and that has made me money over many years. Quietly with no flash..

My buddies are into penny stocks, and timing the market. They got out in 2009, and never really got back in. Funny how they blew through a quarter million with only "stuff" to show for it...But I am the one not working..

Boring Rules !!!