Author Topic: Market Top  (Read 28232 times)

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Offline Kings

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Re: Market Top
« Reply #255 on: November 07, 2019, 03:33:04 PM »
ROE is a different metric than return on invested capital (return on debt + equity).  My ROE (return on equity from original down payment) just based on capital appreciation would be 475%.  When you add in five years of healthy monthly cashflow it's an even higher return.


which is why i used roe....just trying to weasel my way in to keep up with my terrible irvine property appreciation  ;)

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Offline Mety

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Re: Market Top
« Reply #256 on: November 13, 2019, 11:21:30 AM »
ROE is a different metric than return on invested capital (return on debt + equity).  My ROE (return on equity from original down payment) just based on capital appreciation would be 475%.  When you add in five years of healthy monthly cashflow it's an even higher return.


which is why i used roe....just trying to weasel my way in to keep up with my terrible irvine property appreciation  ;)


Just for fun, I did quick calculations on these two scenarios. The purchased prices and other numbers are my guesses so they could be totally off.

If LL's IE investment property was about $200k, then with a possible 20% downpayment, he can make about $190k by his 475% claim.
If Kings' Irvine property he enjoyed 87% appreciation was about $900k, then it made him about $160k if he had 20% downpayment on that property.

Both are pretty good returns. I think Kings already made that appreciation since he already sold it. We'll see how LL's property does.


Online zubs

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Re: Market Top
« Reply #257 on: November 13, 2019, 12:07:38 PM »
After selling the property what does one do with the money?
Stick it in Cap One 1.90% savings?

Offline Mety

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Re: Market Top
« Reply #258 on: November 13, 2019, 12:42:01 PM »
After selling the property what does one do with the money?
Stick it in Cap One 1.90% savings?

Buy some candy?

I personally put that for the following home purchasing downpayment.

Online zubs

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Re: Market Top
« Reply #259 on: November 13, 2019, 02:01:11 PM »
This is in regards to investment properties.

If you thought selling now is optimal because housing is going down, the strategy would be to get your money out and put it into something safe while you wait for the economy to crash.

So I hear some people here have already sold or are in the process of selling their investments.  Where did they put this money after they sold?

Did they take it to Singapore?
Did they put it into a savings account?
Did they buy bonds or stocks?

What are these sellers doing with all their investment cash?
If not housing it has to go somewhere....most safe is a CD or capital one 1.90% savings

Offline Liar Loan

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Re: Market Top
« Reply #260 on: November 13, 2019, 10:11:16 PM »
I'm doing stocks and bonds. 

Another alternative if you want to stay in RE is to go out of state to a market that is less prone to crashing, doing a 1031 exchange to avoid capital gains.  I personally don't want the hassle of managing out of state property right now, but this is what many Californians are doing. 

I may also get involved with partnering in some flips.  I have a couple contacts that are flipping full time, and are looking for partners, particularly those with capital.  I need to determine if I have the bandwidth to do this though..  There are also the crowdfunding sites and syndicated deals that allow you to participate in commercial property deals.  This is something I may look into more closely again.

Still, I like the liquidity and ease of investing in stocks and bonds, so those other opportunities need to pay a high enough return to make it worth taking on the more labor intensive opportunities... and anything I do is with an eye for the risk involved, especially at this point in the RE/business cycle.

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Offline Compressed-Village

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Re: Market Top
« Reply #261 on: November 14, 2019, 08:44:02 AM »
This is in regards to investment properties.

If you thought selling now is optimal because housing is going down, the strategy would be to get your money out and put it into something safe while you wait for the economy to crash.

So I hear some people here have already sold or are in the process of selling their investments.  Where did they put this money after they sold?

Did they take it to Singapore?
Did they put it into a savings account?
Did they buy bonds or stocks?

What are these sellers doing with all their investment cash?
If not housing it has to go somewhere....most safe is a CD or capital one 1.90% savings


How about a creative new way, stuff it under your pillows. Make sure to get new crisp $100 dollars bills. If you stack them together high enough, it will prop-up your heads for reading and watch tv on bed. Oh, the new money smells might keep you awake though.😀

 

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