Hi, I'm Hellbender

[hellbender]

Quote:

Originally Posted by HaHa I await your further discourse with bated breath... It seems to me that all plans that involve paying cash going in, and giving financing going out must soon destroy balance sheet liquidity. Then you find that you are A) Out of cash, and B) Full of notes of poor liquidity and questionable credit quality.

Thanks for your comments. *This plan would constitute only a small part of my total retirement investments which would also include cash, relatively liquid fixed-income investments, income-generating vacation/rental properties, etc. *It is my goal to exhaust the portion of my cash dedicated to such investments because I will now have it effectively deployed and earning double-digit rates of return. *Liquidity of the notes is not a goal. *High return on investment is. *I will finance high credit risks or those with low down payments using only land contracts. *In this way I give up title to the properties only when all financing terms have been met. * In any event, the debt is fully secured by valuable land. *In the event of default, I will foreclose (if required) and immediately resell or hold until favorable market conditions and terms can be realized.

Quote:

Originally Posted by HaHa You could then borrow more cash, and continue the process, by which time you are operating a highly leveraged cyclical business which is likely to make you yearn for a return to building whatever it is that you currently build for the blue jackets. *

It is not my intent (nor is it required) to perpetuate this activity with borrowed funds. *My other real estate holdings will be leveraged, but only to conservative levels, consistent with safely maximizing returns.

[kcowan]

Yup this sounds like a way too much work for me, HB. True you are your own boss. But when I was my own boss, I found I was working for a tough task master.

It is important not to confuse active real estate investing with other forms of equity investments. There are part-time jobs that can generate nice income & flexibility (e.g. work from home/anywhere) that require much less risk than active real estate.

That being said, your returns should be higher.

[califdreamer]

Quote:

Originally Posted by hellbender * Which of the boards here do you gravitate to when you want to talk about treal estate?*

Usually FIRE and Money.* There are a number of RE investors who regularly contribute to the board, some with pretty sizable portfolios and some who have expertise in fixing and flipping... two things I wish I had*

[hellbender]

Quote:

Originally Posted by PsyopRanger Go Hokies!!!!* I like you already.

Looked at your military background and Hokie reference.* Did you know or have you heard of a Hokie killed in Iraq named Nick Mason?