Poll: Where'd you put the cash from your real estate sale?

wabmester · 04-20-2006, 09:36 PM

Just curious how others invested the proceeds from a real estate sale.* *In the past, I've rolled into another real estate investment.* * I don't plan to do that this time, but I may allocate part of the proceeds to home improvement projects.

bearkeley · 04-20-2006, 09:44 PM

We have done two real estate sales in the past six months with the first we took the gain felt the pain and developed an allocation plan for stocks. Got scared half way into investing in the funds we researched and only purchased 3 of the six. Of course they were the wrong three

and the other three are going like gang busters the money is in ING direct for now until we get the courage back.

On the other sale we hope to do a 1031 but we are having a hard time picking a good property.

audreyh1 · 04-20-2006, 10:08 PM

I'm averaging mine into OAKBX.

I'm segregating it from the rest of my portfolio and will probably use it to buy another house someday - maybe in 10 years.

Audrey

gtmeouttahere · 04-21-2006, 04:51 AM

I'm rolling it one more time at least. Market is still good in the Pacific Northwest for the time being. Although I will be turning it over quickly. I don't plan on holding anything long term that I purchase now. Although there is a housing shortage here which tells me the supply/demand is still good and will be good for at least a few years. I don't think we've seen the "bottom" here yet like some other areas.

In a few years, if there is a crash, I'll get in line to buy more at deflated prices, then hold.

The fed did stop raising the interest rates which is a good thing for the time being. Still time left to do a few more flips, build a few more specs IMO.

tryan · 04-21-2006, 10:22 AM

I've dumped half a dozen properties since 2000 .... learned about ALT MIN the hard way. Then found a bank owned piece near my house (had to pay cash ... and did). Then I did a 1031 for some waterfront land a few years ago (no ALT MIN there!). Now the land is being developed ... more $$ being pumped into RE. So I had to vote: Rolled into more RE.

Anything else that gets dumped will be parked (TIPS?) to wait for the next buying opportunity.

dusk_to_dawn · 04-21-2006, 10:40 AM

On the last Real Estate deal almost two years ago, we downsized and were able to pay cash (that was fun; as a younger man I never pictured myself paying cash for a house) and had about 50K left over. Used 15K to do a little work on the house and the rest we keep in cash, bonds and stocks.

73ss454 · 04-21-2006, 11:04 AM

We've been buying and selling vacant land in Florida and holding the notes. 8.9% and setting up balloons for 1,2,3,4, and 5 years taking interest only until the balloon is due.

This is an easy way to sit it out untill the market turns around again. Vacant land is very easy to sell when holding the note. We get 20% down and the worst thing is we get the land back if they don't pay. Win Win!

jug · 04-21-2006, 02:06 PM

Quote:

Originally Posted by wab

Just curious how others invested the proceeds from a real estate sale.* *In the past, I've rolled into another real estate investment.* * I don't plan to do that this time, but I may allocate part of the proceeds to home improvement projects.

Buying a towel concession at the chicken ranch outside of sin city. Clean towels and sheets are always needed

jug

audreyh1 · 04-21-2006, 03:18 PM

Quote:

Originally Posted by gtmeouttahere

The fed did stop raising the interest rates which is a good thing for the time being.*

They did?

Audrey

gtmeouttahere · 04-22-2006, 06:38 AM

Quote:

Originally Posted by audreyh1

They did?*

Audrey

I was told that by a co-worker this evening.* Turns out he is not reliable by my research thus far.* Sorry

It appears the FED won't even make another change until May 10th.* They are expected to raise it to 5% and then sit on the sidelines for the remainder of the year, according to my new and improved research.* Maybe this is the "stop" my co-worker was referring to.

It still doesn't change my plan...

audreyh1 · 04-22-2006, 07:50 AM

Quote:

Originally Posted by gtmeouttahere

It appears the FED won't even make another change until May 10th.* They are expected to raise it to 5% and then sit on the sidelines for the remainder of the year, according to my new and improved research.*

May 10th is the next Fed meeting, and the Fed generally only makes interest changes at their scheduled meetings unless there is some kind of financial "emergency" (very rare).

That they will raise one more time and hold for the rest of the year is ONLY A GUESS.

Audrey

mathjak107 · 04-22-2006, 08:15 AM

all things being equal im glad rates are rising...it may bring prices down and as a soon to be buyer id rather a cheaper price and a higher rate...i can always refinance later on when rates drop but to high of a price is forever.

Jane_Doe · 04-22-2006, 08:46 AM

I voted even though we havent' sold out yet!

Hope you don't mind. Voted for asset allocation ----

DH and I plan on selling our piece of commercial property we've owned and developed over the past 15 + or - years and just biting the bullet and paying the cap. gains. Hopefully all will come together before cap. gains return to the really high rates or else I guess we'll end up waiting and just being landlords, collecting rents. However, if the "plan" works, no 1031, just roll into a portfolio that will pay out enough to meet our needs and reinvest and extra. Absolutely can't wait!

Something to be said about not having to worry about the tenants, maintenance, RE taxes rising and rising, liability, etc., etc., etc.!

Love to hear the stories of others "getting out"! - Just makes my day!

Have a wonderful day!

Jane

gtmeouttahere · 04-23-2006, 12:47 AM

I totally agree w/everything you said Jane. I'm also going to "get out" soon. Just baiting the hook one more go round, then diversify my portfolio.

Quote:

Something to be said about not having to worry about the tenants, maintenance, RE taxes rising and rising, liability, etc., etc., etc.!

Yes, I agree. Never would "feel" retired having that situation. It would feel more like work that I would not like. Pay the 15% cap gains while it still exists. Thats still a good deal.

I absolutely can't wait either!!! 8)

**Martha** · 04-23-2006, 08:31 AM

We have been getting 8000 to 10000 a month from a condo conversion project that is in the process of selling out. So far the money has been going into cash equivalents. Greg is now looking at other options. Our allocation has had a fair amount in real estate but we do not currently plan to put this and other condo conversion money in real estate investments at this time.

katfish · 04-23-2006, 11:01 AM

Question for 73ss454--I have a waterfront lot in florida for sale ..I would like
to offer a note to sell this property also...How would you set something like
this up? Did you use a lawyer? Thanks.....

Arif · 04-23-2006, 11:03 AM

We are doing a 1031 right now and the worst part is the time limits. If I didn't have to also pay the 25% on the depreciation recapture along with the 15% cap gains I would invest in other asset classes with the proceeds and skip the 1031. We are still in the accumalting phase so we'll 1031 for a few more properties and bite the bullet eventually or maybe never *

73ss454 · 04-23-2006, 12:49 PM

Quote:

Originally Posted by katfish

Question for 73ss454--I have a waterfront lot in florida for sale ..I would like
to offer a note to sell this property also...How would you set something like
this up?* Did you use a lawyer?* Thanks.....

No lawyers involved, the title company sets up the note. Easy as pie!

**Martha** · 04-23-2006, 06:31 PM

Quote:

Originally Posted by 73ss454

No lawyers involved, the title company sets up the note. Easy as pie!

I assume a land contract/contract for deed? That is recorded in the real estate records?

73ss454 · 04-23-2006, 07:52 PM

Quote:

Originally Posted by Martha

I assume a land contract/contract for deed?* That is recorded in the real estate records?*

Yes, I've held a number of these notes over the years and holding 5 currently. They are safe to the point of getting the land back.

View Poll Results: Where'd you invest the proceeds of your real estate sale?
Left it in cash. Everything else scares me right now.	7	17.95%
Rolled it into more real estate.	9	23.08%
REIT	0	0%
Other asset classes per my allocation plan.	20	51.28%
Something completely different.	3	7.69%
Voters: 39. You may not vote on this poll

04-20-2006, 09:36 PM	#1
wabmester Thinks s/he gets paid by the post Join Date: Dec 2003 Posts: 4,461	Poll: Where'd you put the cash from your real estate sale? Just curious how others invested the proceeds from a real estate sale.* In the past, I've rolled into another real estate investment. * I don't plan to do that this time, but I may allocate part of the proceeds to home improvement projects.

04-20-2006, 09:44 PM	#2
bearkeley Recycles dryer sheets Join Date: Aug 2005 Posts: 98	Re: Poll: Where'd you put the cash from your real estate sale? We have done two real estate sales in the past six months with the first we took the gain felt the pain and developed an allocation plan for stocks. Got scared half way into investing in the funds we researched and only purchased 3 of the six. Of course they were the wrong three and the other three are going like gang busters the money is in ING direct for now until we get the courage back. On the other sale we hope to do a 1031 but we are having a hard time picking a good property.

04-20-2006, 10:08 PM	#3
audreyh1 Thinks s/he gets paid by the post Join Date: Jan 2006 Posts: 2,203	Re: Poll: Where'd you put the cash from your real estate sale? I'm averaging mine into OAKBX. I'm segregating it from the rest of my portfolio and will probably use it to buy another house someday - maybe in 10 years. Audrey

04-21-2006, 04:51 AM	#4
gtmeouttahere Recycles dryer sheets Join Date: Mar 2006 Posts: 128	Re: Poll: Where'd you put the cash from your real estate sale? I'm rolling it one more time at least. Market is still good in the Pacific Northwest for the time being. Although I will be turning it over quickly. I don't plan on holding anything long term that I purchase now. Although there is a housing shortage here which tells me the supply/demand is still good and will be good for at least a few years. I don't think we've seen the "bottom" here yet like some other areas. In a few years, if there is a crash, I'll get in line to buy more at deflated prices, then hold. The fed did stop raising the interest rates which is a good thing for the time being. Still time left to do a few more flips, build a few more specs IMO. __________________ Lieutenant Dan got me invested in some kind of fruit company. So then I got a call from him, saying we don't have to worry about money no more. And I said, that's good! One less thing.* * * * ** Forrest Gump

04-21-2006, 10:22 AM	#5
tryan Thinks s/he gets paid by the post Join Date: Mar 2005 Posts: 1,454	Re: Poll: Where'd you put the cash from your real estate sale? I've dumped half a dozen properties since 2000 .... learned about ALT MIN the hard way. Then found a bank owned piece near my house (had to pay cash ... and did). Then I did a 1031 for some waterfront land a few years ago (no ALT MIN there!). Now the land is being developed ... more $$ being pumped into RE. So I had to vote: Rolled into more RE. Anything else that gets dumped will be parked (TIPS?) to wait for the next buying opportunity. __________________ FIRE'd since 2005

04-21-2006, 10:40 AM	#6
dusk_to_dawn Recycles dryer sheets Join Date: Dec 2005 Posts: 163	Re: Poll: Where'd you put the cash from your real estate sale? On the last Real Estate deal almost two years ago, we downsized and were able to pay cash (that was fun; as a younger man I never pictured myself paying cash for a house) and had about 50K left over. Used 15K to do a little work on the house and the rest we keep in cash, bonds and stocks. __________________ The way I see it, you got two choices. You either gotta get busy livin'...or get busy dyin'.

04-21-2006, 11:04 AM	#7
73ss454 Thinks s/he gets paid by the post Join Date: Oct 2004 Posts: 1,753	Re: Poll: Where'd you put the cash from your real estate sale? We've been buying and selling vacant land in Florida and holding the notes. 8.9% and setting up balloons for 1,2,3,4, and 5 years taking interest only until the balloon is due. This is an easy way to sit it out untill the market turns around again. Vacant land is very easy to sell when holding the note. We get 20% down and the worst thing is we get the land back if they don't pay. Win Win!

04-22-2006, 08:15 AM	#12
mathjak107 Thinks s/he gets paid by the post Join Date: Jul 2005 Posts: 2,430	Re: Poll: Where'd you put the cash from your real estate sale? all things being equal im glad rates are rising...it may bring prices down and as a soon to be buyer id rather a cheaper price and a higher rate...i can always refinance later on when rates drop but to high of a price is forever.

04-22-2006, 08:46 AM	#13
Jane_Doe Recycles dryer sheets Join Date: Apr 2005 Posts: 166	Re: Poll: Where'd you put the cash from your real estate sale? I voted even though we havent' sold out yet! Hope you don't mind. Voted for asset allocation ---- DH and I plan on selling our piece of commercial property we've owned and developed over the past 15 + or - years and just biting the bullet and paying the cap. gains. Hopefully all will come together before cap. gains return to the really high rates or else I guess we'll end up waiting and just being landlords, collecting rents. However, if the "plan" works, no 1031, just roll into a portfolio that will pay out enough to meet our needs and reinvest and extra. Absolutely can't wait! Something to be said about not having to worry about the tenants, maintenance, RE taxes rising and rising, liability, etc., etc., etc.! Love to hear the stories of others "getting out"! - Just makes my day! Have a wonderful day! Jane __________________ Of all the things I've lost, I miss my mind the most!

04-23-2006, 08:31 AM	#15
Martha Moderator Join Date: Feb 2004 Location: minnesota Posts: 9,796	Re: Poll: Where'd you put the cash from your real estate sale? We have been getting 8000 to 10000 a month from a condo conversion project that is in the process of selling out. So far the money has been going into cash equivalents. Greg is now looking at other options. Our allocation has had a fair amount in real estate but we do not currently plan to put this and other condo conversion money in real estate investments at this time. __________________ . Do not rely on the information provided--my posts are not to be taken as legal advice. Needless to say you must consult with your legal representative. I am not responsible for errors. If I offended you with cya I apologize. If I did not, I tried.

04-23-2006, 11:01 AM	#16
katfish Dryer sheet wannabe Join Date: Apr 2006 Posts: 21	Re: Poll: Where'd you put the cash from your real estate sale? Question for 73ss454--I have a waterfront lot in florida for sale ..I would like to offer a note to sell this property also...How would you set something like this up? Did you use a lawyer? Thanks.....

04-23-2006, 11:03 AM	#17
Arif Full time employment: Posting here. Join Date: Jun 2005 Posts: 661	Re: Poll: Where'd you put the cash from your real estate sale? We are doing a 1031 right now and the worst part is the time limits. If I didn't have to also pay the 25% on the depreciation recapture along with the 15% cap gains I would invest in other asset classes with the proceeds and skip the 1031. We are still in the accumalting phase so we'll 1031 for a few more properties and bite the bullet eventually or maybe never * __________________ You take the blue pill - the story ends, you wake up in your bed and believe whatever you want to believe. You take the red pill - you stay in Wonderland and I show you how deep the rabbit-hole goes.