patrick.net
An Antidote to Corporate Media
1,199,274 comments by 14,166 users - stereotomy online now
For my patrick.net fans, bought my 12th home July 24th!
invite response
2012 Jul 25, 2:33pm 34,988 views 93 comments
« First « Previous Comments 81 - 93 of 93 Search these comments
Big thumbs up for Roberto. I am doing the same thing in Mohave County, north of Lake Havasu and south of Las Vegas, NV. Slow and methodical with lots of hard work pays off.
I bought my first ounce of gold at $380 an ounce because it was obvious that gold had to go up. I read an article about how gold mines were going out of business because it cost about $400 an ounce just to extract it from the ground. Fast forward to today. Gold is over $1,700 an ounce.
We see the similar situation with real estate. The price became so ridiculously low that you could not possibly build the house for the asking price. If the sale price is $60 per s.f. and the construction cost is $100 per s.f., it is truly a no brainer. (Your markets may be different).
Also, there are other costs- buying the land, water meter, building permit fees, etc. that need to be figured in.
People that think the market will be driven even lower, I guess anything is possible in the short term but when you can borrow money for ZERO net (i.e. equal to inflation) and you can buy an asset for less than the intrinsic value (i.e. construction cost), buying a house today is just like buying gold at $380.
And guess what, gold had traded at one point below $300 an ounce but who cares in the short term, prices will normalize over time at some point significantly above where they are now in real estate just like they did with gold.
I knowing I am sort of rantinng on a tangent here but also think of "quantitative easing" which means the government is going to town with the currency printing presses and this will make dollars worth so much less over time. So I truly believe that trading dollars for almost any real investment is good idea right now; I don't care if it is land, houses, gold, silver, fine art, or anything else that has a decent track record of investment value over hundreds of years.
Oh yeah, and both sports cars and girlfriends are liabilities, not investments. Finding a girl that is not a liability, that is sort of a dream of mine but for now I will stick with what I know... real estate.
Eman
2012 Sep 29, 9:10am
girlfriends are liabilities, not investments.
Sid,
You're dating the wrong girls. Find one that's an asset & marry her. They're out there. No reason to waste time with the liability ones.
My wife helped me run and grow my business when we were dating in our early twenties. Every time I had a solid RE deal and needed a short-term loan, wife would go to the bank of in-laws & get it. 1%/month interest for the borrowed money. Cheap.
When we had our first baby, wife told me to stay home to take care of the baby. I took advantage of it & stayed home for a year & a half. She only stayed home for 6 months. :)
Asset spouses are out there. No reason to settle for a liability one. Keep looking.
Have fun finding. :)
Good luck.
JodyChunder
2012 Sep 29, 10:12am
You're dating the wrong girls. Find one that's an asset & marry her. They're out there. No reason to waste time with the liability ones.
That is the smartest goddamn thing you've ever said on here.
Rich chicks are my favorite.
ELC
2012 Sep 29, 11:44am
No reason to settle for a liability one.
The liability ones are hotter in bed and stay that way. Depends what stage of life you're in.
Eman
2012 Sep 29, 1:15pm
Is this it? http://www.redfin.com/AZ/Mesa/1415-W-Garden-St-85201/home/27543546
So this house was sold at the courthouse steps for $57k in 08/11. No one bought it. One year later, it was sold for $85k. Where were you last year Roberto?
Eman
2012 Sep 29, 3:00pm
You're dating the wrong girls. Find one that's an asset & marry her. They're out there. No reason to waste time with the liability ones.
That is the smartest goddamn thing you've ever said on here.
Rich chicks are my favorite.
Wife isn't rich, but she's creative, hard working and very supportive of her spouse. How often do you find a soul mate that's so compatible to you to the point that you two don't even argue? All I can say is I'm a lucky man. Therefore, don't bet against me. :)
Eman
2012 Sep 29, 3:01pm
No reason to settle for a liability one.
The liability ones are hotter in bed and stay that way. Depends what stage of life you're in.
Not necessarily. You don't know what you don't know I guess.
@globalroamer I have a friend wanting to move to phx. She is looking to rent in a safe neighborhood near the VA. Can you suggest anything? She will likely rent for a year before trying to buy. Good schools would be a plus.
Let me be the 472nd to join the lowly hoi polloi and denounce Randy H and by proxy Roberto as well. Yes, I am terribly jealous of your success. You are clearly a master of your universe and a force to be reckoned with, a man among mice, a philosopher among the dolts.
I greatly admire your refusal to buckle and apologize for your bold actions that simply drip with a foresight that is rare and worldly.
I denounce you. Be not terribly amused! Damn your calamity avoidance!
Alas, I know it is only my own self loathing that makes me jealous.
Either that or you sound like a fuckin' douche bag. Seriously, do you read your own shit?
Biff
I read his shite but I have high boots on and carry a barf bag.
FuckTheMainstreamMedia
2012 Oct 4, 1:38am
I don't really see the issues with Roberto's postings.
You all really have to recognize that theres a world of difference between what Roberto is attempting to accomplish, and what most of the rest of us seek to accomplish.
Simply put, Roberto is a landlord of properties in a desert city. Nothing is as easy as someone like Armando Montelongo makes it out to be, and Roberto puts a realistic face on the landlord/investor. Note that Roberto is in is mid to late 40's and while he may soon have a life of luxury, he had to put in a lot of years and a lot of work to get there. He still has a day job. In otherwords, theres no easy street, instant riches. For reference, my parents got to the place Roberto wants to be by their late 50's simply through 401K investment and smart living. They now live in a dream home a block from the beach in coastal AC, in a home that would qualify as a "McMansion". They spend what they want, when they want, enjoy their grandkids, and blah blah blah. In other words, theres more than one way to accumulate wealth. Real estate is not the be all end all. It is simply one way to get to the gold pot at the end of the road, and has dangers that I notice most of the investors on sites like this tend to gloss over.
Most of the rest of us are gainfully employeed, looking for a home we can afford, in a neighborhood we are happy in, reasonably close to our work places, in big city coastal CA. We have no intention to become investors in property. Investors are a concern as they can set a temporary or permanent bottom in housing. So its useful to learn what investors are doing. But the information gleaned from Roberto's posting is of limited value due to proximity and VERY differing markets.
« First « Previous Comments 81 - 93 of 93 Search these comments
Yes, just three weeks after home 11, ($80K, +$9K in remodel and appliances, hoa = 100, taxes = 800 a year, insurance = 750 a year, rented for $1100) which is now rented at the predicted amount.
This one was $85k, 3/2/2 car garage in 85201. Another cash purchase short sale. It needed paint, minor fix ups, and flooring in the 3 bedrooms, plus the wild overgrown yard needed attention, and the wooden fence had fallen down. I thought I could completely remodel it in 2 days, but a few problems arose and where overcome, it looks like 4 days to completion. The reasons I particularly wanted this home, in addition to its very central location, in an area seeing tons of commercial development (among others like mesa riverview mall, is the cubs spring training facility directly adjacent,http://www.azfamily.com/news/Cubs-Mesa-spring-training-facility-finally-breaks-ground-162144835.html)
But this home had a brand new 50 year shingle roof put on in 2011, and a new ac as well, courtesy of a major hail storm. It is solid slump block too, which is my favorite construction material.
One of my local friends offered me $110,000 for it, a $20,000 profit for one week's work, but I believe in the area, and this home, so I'm going to keep it for the long haul. I'll post some pictures of the remodel tomorrow. If anyone needs a good rental in that area, contact me through my profile, $1100 a month.