How I Stopped My Assets from dropping...

[nun]

I've done 2 things.

Around Dow 11000 I sold equities and went from 70/30 to 30/70. I realized that my asset allocation wasn't right for me in a falling market, but I worried that I'd sold at the bottom. I bought back to 50/50 at DOW 8500 and that's where I'm staying. This year has shown me my truly comfortable AA.

I'm saving more, maxing out 403b, 457 and DC plan and paying extra towards the mortgage each month

[calmloki]

Quote:

Originally Posted by blanston Thanks Calm...I kinda of enjoy the fix up part-what little I know how to do. I have gotten my kids involved in this too. Cleaning, yard work, etc. But the real work is done by reliable handy man, etc. I woops- I am itallics again! I review applications but leave the face to face and any other tenant contact to ohers.

So what do you pay for management? 10% of rent received? Our stuff is also free & clear, but i do all the management and much of the maintenance - while keeping the places in good order at a pretty thrifty rate i just can't convince myself to give a management company about 16.5% of our profit after expenses.

[blanston]

Quote:

Originally Posted by calmloki So what do you pay for management? 10% of rent received? Our stuff is also free & clear, but i do all the management and much of the maintenance - while keeping the places in good order at a pretty thrifty rate i just can't convince myself to give a management company about 16.5% of our profit after expenses.

I have someone at my office do the majority of the management- I pay the bills and involved on choosing renters-setting rent prices-making decisions on major exoenses. So I am really involved but don't deal direcly with tenants and I don't do any handy work once there are rented.

[blanston]

If I wasn't armslength from tenants I would'nt be in the biz!

[calmloki]

Quote:

Originally Posted by blanston .... But as a mortgage broker-real estate broker-landlord, ....

Blanston: "I have someone at my office do the majority of the management- I pay the bills and involved on choosing renters-setting rent prices-making decisions on major exoenses. So I am really involved but don't deal direcly with tenants and I don't do any handy work once there are rented".

Blanston: "i ben increasing my assets by purchasing real estate. I bot 6 houses in past six months with total market value of 800k--that has more than offset my losses! Now up bout 200k overall. All REOs purchased from banks. The average discount from their high value or sold price is bout 50%. I have purchased these homes at least 25% less than current market value. this allows me to refinance them for approx the 100% of my purchase price. So i aint got nothin in them"!

Blanston: "If I wasn't armslength from tenants I would'nt be in the biz"!

Me: Looks like you are in the perfect position: you are a RE broker, a mortgage broker, and a landlord. You have someone else in your office handle tenant contact and don't do any handy work after the places are rented. You are a smarter man than me McGhee. Kudos to you for making money or saving expenses on all sides of the deal - and with minimal personal labor or involvement. Nice to have the free management - checked my math and management would cost us closer to 17.5% of our rental profit - and our places are free and clear.

[BunsGettingFirm]

Quote:

Originally Posted by blanston The markets have been pulling me down like everybody, but i ben increasing my assets by purchasing real estate. I bot 6 houses in past six months with total market value of 800k--that has more than offset my losses! Now up bout 200k overall. All REOs purchased from banks. The average discount from their high value or sold price is bout 50%. I have purchased these homes at least 25% less than current market value. this allows me to refinance them for approx the 100% of my purchase price. So i aint got nothin in them! Example: last home purchased for $65,000- selling price in '06 was 198,500. The home rents for $925 per month. I refinanced the home for the entire $65,000. (no money in) The interst pymt plus tax/insur is 420 = cash flo of $505! not too shabby!! If i can keep buying under market with nothin down and great cash flow- i think i will just keep on doing this!!! What are others doing to combat their asset deflation?

The only way to stop your assets from dropping is to do plenty of exercise and wear supportive garments. Some also advocate hanging upside down for at least 1 hour each day and getting some light cosmetic surgery, but that's where I draw the line.

Oh, when I posted this message a while ago, the site was going nuts by constantly logging me out.

I got an REO as well, but for only 50% off the 2004 price, so for me to live in it is better than renting. I wouldn't say that even at 50% off its high that the property would make a good rental.

[BunsGettingFirm]

Quote:

Originally Posted by REWahoo It's a natural part of the aging process. Exercise and cosmetic surgery can help, but you really can't do much beyond postponing the inevitable for a few years. What's that? Dropping assets? Oh. Never mind....

Damn, you beat me to it by a long time. Marginal minds think a like.

[freebird5825]

this combo of text in the first entry of Newly Subscribed Threads (responded to) when i clicked on User CP got me giggling...

thread title...
"How I Stopped my Assets from dropping"
last posted by
"BunsGettingFirm"

i am sooooooo easily entertained.

[blanston]

Quote:

Originally Posted by BunsGettingFirm I got an REO as well, but for only 50% off the 2004 price, so for me to live in it is better than renting. I wouldn't say that even at 50% off its high that the property would make a good rental.

Well, the first thing we have to do is make sure the home will cash flow. Doesnt mean u can't still get a good deal like you did. (owner occupied) But for me-investment property I will keep-first and foremost it must cash flo. I stopped buying in 2002 because home prices went up to high to cash flow- Now, i can find cash flow again!

[calmloki]

Not worth a whole new thread, but this article has one of the most reasonable assertions by a lawyer-type i've seen:

"Reardon said the attack was premeditated. Nobody brings a hatchet and wears rubber gloves to discuss rent at that hour of the morning, he said".

Landlord attacked with rusty hatchet

Never had a tenant meeting when a hatchet was involved - Nazis, a pistol, crazy people, and a guy that liked fighting in the punch-up for money bouts, yes, but no hatchets. Whew.

[Marcretire]

Quote:

Originally Posted by Khan I replaced my old car at 18 years and ~72,000 miles.

My '86 Honda Accord has 165,000 miles and keeps going and going.

[Purron]

Quote:

Originally Posted by Westernskies I buried mine in the backyard.