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randallg99
Bronze Contributor
even facebook friends? lolI'm not letting any of my friends borrow any more money...
Much of my trading portfolio has shifted into Chinese stocks.... the liquidity and the amount of money the government has to stimulate their economy is mind numbing. I don't know about the dollar continuing to drop, though.... much of the 1st world is experiencing worse downturn than the US...Continued dollar devalution.
Most of my investments are outside of the US in stronger economies with tighter fiscal policy...
we're in the same boat.I'm feeling the frustration setting in over here... As someone who feels like he should be making a lot of money in this sideways market -- And who in reality is losing his shirt.
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Tough to swallow that everything I've worked to build in the last 10 years may be a mirage.....
exactly my sentiment... hopefully we can figure out what to do....all the rules changed in the middle of the game. The game is different now. What to do about it? ...
Corey I am glad you're doing well. you're doing all of the right things and having access to private equity funds now days is the best way to get deals done....I think a solid balance sheet and good financial backing will open up a world of investment opportunities over the next couple years as the deleveraging cycle continues.
stock averaging is no good as most stocks who lose value will actually continue to lose value (Per O'Neill), but buying real estate at these prices is a good thing.Your only way out ---IS to buy more at these prices to off-set the older ones. It's like stock averaging.
great idea yves.Not sure if this would work in your area or not, but can you get your rentals HUD certified and get HUD renters in there? I know there's issues with this, but at least the govt would be paying you and not the tenants. Just a thought. ...Hang in there.
sorry to see and hear a couple of posts expressing pain during this downturn. But you're not alone: it's a very real and stressful time in my life and as a business owner and RE investor, I've been suffering for about 4 years now.
the purpose of the chart and the attachment was to shine light on the fact that there just may be a turn in economic conditions for the better. Many people/medium use the word "recovery" all too loosely, but a recovery is really not important to us investors as much as knowing when it's a good time to buy income producing assets.
Leading economic indicators in past recessionary periods appear to be much different today for a number of reasons which isn't important to this discussion. But what's important is having this knowledge and knowing what to do and when to do it.
forget the fact that the FDIC will itself need a bailout after holding bags of overvalued CRE from banks that were liquidated and that FNM is speculated to bleed $400bil before as written in today's wall street journal.... and forget about the dozens of other news stories and data points that continue to hammer nail after nail into the economy's coffin. And forget about the US dollar going to worth less than the paper/cotton its printed on (MJ, I think we're about to see a rising US$ vs most of the world currencies... but that's what makes markets) The irony is that these factors are not as important to us as they were in past cycles and even in the beginning of this down turn.
These times are difficult indeed for everyone who've worked assembly lines up to middle managers at Bear Sterns who were accustomed to making quarter mil plus bonuses per year....but they're especially difficult for all of us here because none of us have been through a downturn this steep and long before and a fear of the unknown trumps above all other fears.
Ideally, when I look at the attached chart (the one embedded in the original post is covered up by an ad) I want to say: we are hitting bottom, or we're getting awfully close. It can still go down from here, but now there signs where it's at least leveling off. Regardless of politics or government intervention, there are indicators that the overall economy is poised to begin an upswing. Who knows? We may be in a tight credit period for another 10 years....
So- this got much wordier than I originally anticipated but we're all young enough here to make mistakes now. and to go for the jugular. A case in point, I bought my first rental single family property in 1998. Identical homes in the area are now going for the same price as they did 11 years ago. Except now the rents are approximately 30% higher while expenses are only about 10% higher. The cash on cash return is much better today.
I put in 10 offers in the past month but got no counter offers. However, the agents are calling me back with other sellers who haven't put their properties up for sale. Long story short, I am paying cash for these properties in the next few weeks.
Since many rules of the games have changed, who knows if inflation will drive up real estate pricing again, but in cycles past inflation drove pricing of assets higher which may not happen this year or next, but it will happen. Cycles come and go. Also, pent up demand for acquiring assets has to burst out once again, whether it's sometime this week or decade. So, it's not all doom and gloom and it's not the end of the world. Instead, it's the time to seriously think about how you want your portfolio to look in 10 years and when the best opportunity will be.