Just Starting Out

[Shaggy]

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Actually cowboy this is a three bedroom two bath 1400 sq foot trailer sitting on half an acre with trees and a lawn and two car covered parking. The average three bedroom aparment in the area is $700 a month. The real trashy places in the area rent for 400-500 a month. I know this lady and used to work with her. She has two kids and no husband. I told her that if she wants to stay there and take care of the place I will not ever raise her rent. When you are in a credit situation where purchasing is not an option then a deal like this is gold. If she leaves within a couple of years she will be paying double for less. You want to be chartiable, give away your assets, but don't condem other for not doing the same!!!



Just read Pyriel's message above and couldn't have said it better myself.. I really do care about this person and her kids and no, No late fees or anything like that. In fact I have forgiven several months so she could get back on her feet. Better she has her own place with a fenced in yard and a security system then living in the projects, because that is where she would be. This is really about her taking care of my place and her children having a safe place to live,then about being a slum lord. Yes I make a little money to but isn't that what America is about trying to stike a balance between the too. I don't know where you are from but in this part of the world trailers are the norm and not necessarily considered shakes. I was very proud of my home. And on a local cops salary is was pretty nice. Of course now that I have my MBA things are a little better, but isn't that also what America is all about!!!

 

[cowboy]

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No problem Shaggy. I am glad you are treating her fairly! I just wanted you to realize that the people reading your post can only see what you type! If you go back and read your first post you will understand what I am talking about. Id probably do the same thing. One thing about a capitalist environment it is along ways from fair.

 

[pyriel]

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cowboy wrote:

No problem Shaggy. I am glad you are treating her fairly! I just wanted you to realize that the people reading your post can only see what you type! If you go back and read your first post you will understand what I am talking about. Id probably do the same thing. One thing about a capitalist environment it is along ways from fair.

Cowboy, I'm not sure how could you have interpreted his post differently when it was so clear that he was responding about rate of return with his investments (pls see previous posts). If anyone else that jump the gun here I would have to say that it was you and Azanon. I am pasting his post, your response and Azanon's response and see if you can see if Shaggy misrepresented what he said. Not once did he mentioned that he is taking advantage of her. You immediately went on and started accusing him of such things. Then Az came back that she is an old lady. So the perception from readers changed from us talking about rate of return with Shaggy's investment and it became landlords being greedy who like to take advantage of their tenants (especially old ladies).

Shaggy's response

I have one rental property, it is a mobile home. I purchased it in 1998 and lived there for 4 years. It cost me $22,000 which I paid off before I left. Since then I have had it rented. I have replaced the hot water heater one month which cost about $500 and 4 hours. Other then that I have collected $450 a month for about three years now and the tenant comes to my house to deliver the rent. Sometimes she's late but I have no mortgage, so no hurry. You tell me where I can earn between 20 and 25% interest on my investment, not including the time I lived in it, with $22,000.



Cowboy's response

This woman must have sucker written across her boobs. She is buying your trailer yearly. I have no problem with making money with real estate but this is an exception.You could be a nice person and sell it to her for $22,000.00 over 5 years, since you will most likely willbe looking at some expenses down the road. A shack for$450 a month. No offense but real estate does breed greed. The next time she comes over give the girl a break and tell her the rent went down to $400 because she hasbeen a good tennent and I bet youwill feel a whole lot better when her kids are wearing a new pair of jeans. Crap that is worse then a credit card company. I don't mean to offend you Shaggy because the circumstances ar unknown in your post. That woman coming over early with her $400 check and a smile would be worth it to me.



Azanon's response

Again, just cut a check. And you dont have to rip off poor ladies either (per cowboy's response).

 

[pyriel]

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I just closed a deal to purchase a 4 unit apartment for $150k (the property is now tied up for 45 days). I've been eyeing this property for six months now (it was closed to my 8 unit apt). They tried to sell it for $200k before but I didn't jumped on it until the seller advertised it for $170k. I offered $150k and negotiation went back and forth for a little over a month. Seller finally relented and accepted my asking price. He provided me a copy of the latest appraisal for $211k. My real estate agent and I thinks that it is only worth $180k with its present condition but will be able to reach$211k once we fix it up.. Nevertheless, buying this property will automatically net me an equity of $30k. This is not a bad return at all. I am putting in $25k for closing and repair and plan to rent them out for $550.00. I already have 3 tenants in the waiting list (these prospective tenants knew my tenants who knows that I take pride of my property). Units are currently being rented for 400.00 each. I am attaching an excel worksheet of the 4 plex projection. One shows a $400.00 rental and the other is $550.00 rental. Average rental here is $550-$650.

This clearly shows that real estate is alot better than any mutual fund or stocks out there. However, for any kind of investment, one must know what they are doing to be successful.

Pyriel

 

[lovegardening]

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Rolo, which RS funds do you prefer and which US Global funds do you prefer? I am thinking of going with the Global Resources fund?

 

[pyriel]

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lovegardening wrote:

Rolo, which RS funds do you prefer and which US Global funds do you prefer? I am thinking of going with the Global Resources fund?

I'm glad that you are looking at different kinds of investment. However, unless, you are maxed out in ROTH IRA and TSP I would suggest that you concentrate your effort on those first. Next year, TSP max goes up to $15k per year. In 2008, ROTH IRA goes up to $5k a year. Just my .02.