@AcoinL.L.C:
Re. ASICMINER: "Issue price" is marked with red font and an asterisk. There's a corresponding footnote. Seems fair.
Re. RENT: Market price is market price. It's what the market is willing to pay you for what you have. As I said, RENT seemed to stick out for me also.
Until the second IPO.
And then an attempt to borrow money @14% to [according to Branny] buy another property. Because banks won't lend money to a corporation with (quoting you here) "networth ... over $600k."
@Blazedout419: Thanks, "this time for sure!"
The Condo thing was also the dumbest damn thing I have ever heard a real estate investor say. From what I can see he is a agent and new to investing. The first thing people cut in a bad economy is vacations, economy takes a dip that place is GONE!
Thats bullshit banks will not lend, if you have a property free and clear
Do hard money
They will do loans for any investor with 0 down, yes its is real. I have seen someone use them and flip 10 houses.
He is a "Noob" Investor at best, his liquidity is being held up by inexperience. When starting flips are your best revenue generator. Hes talking about franchising... oh lawd.
http://www.homevestors.com/ Ug's ugly homes franchise will eat him alive, they are ruthless undercut people and have large capital to back them.
I've been in real estate for 8+ years and worked with dozens of investors. I've worked with many who eventually went under due to a market downturn (We're talking losses of half a million to one million dollars over the course of 6-9 months). I just don't feel comfortable taking other people's money, using it for a more risky venture (Flips) then have the job to report to them that all their money is gone due to a market downturn.
I was clear when I started RENT I wanted to do rentals, not flips. The reason I'm talking about diversification and flips is because that's what the investors are telling me they want. We've got a good base of properties and are bringing in pretty decent cash now, because of that I can look at alternative ideas, especially once we get leverage.
@AcoinL.L.C:
Re. ASICMINER: "Issue price" is marked with red font and an asterisk. There's a corresponding footnote. Seems fair.
Re. RENT: Market price is market price. It's what the market is willing to pay you for what you have. As I said, RENT seemed to stick out for me also.
Until the second IPO.
And then an attempt to borrow money @14% to [according to Branny] buy another property. Because banks won't lend money to a corporation with (quoting you here) "networth ... over $600k."
@Blazedout419: Thanks, "this time for sure!"
The attempt was for hard money. We ABSOLUTELY, CAN NOT use hard money to refinance our existing properties. The cost is too high (12% APY + 3 points) and our average yield is right around 16%. That would leave us a whopping 4% maximum return per property. It just doesn't make sense to hard money lend on our rentals unless we can start finding properties that return 40%-50% APY. That makes sense for flips, not for rentals.
Banks won't lend to NEW businesses with a short track record even if they have hard assets (property). They want to see, normally, 2 years of profit before they'll do a mortgage. If you know of a bank that doesn't do this, i'll send them financial information and try to get a loan. The reason we want this kind of financing is because rates are generally 4%-6% and it would give us the ability to arbitrage between the 4%-6% bank rate and our 16%+ margin on properties.