Nice to see you active again FDJAKE! i enjoy reading your posts
After going over the last 24 months I can honestly say without a doubt that I have done better than I ever imagined…My overall portfolio is up a little over %45 in the 24 month period…My portfolio is made up of flips with owner finacing,hard money loans,business flips,some stock,reits and some other private collateralized lending…Stepping into the mix at the ugliest moment with capital made this possible…Its hard to do but in hindsight believe it or not I made mistakes also…I shouldve bought more prime income properties in the area I lend in…I could have built more of an income portfolio but instead concentrated on my lending business and built that up alot…I only funded no brainer deals and my returns didnt include some very lucrative NPN(non-perfoming note) deals I closed in 2010…The key to making money in these times is to have alot of capital and know where to put it to use…Look at who made money this year…The hedge funds that were flush with cash…The real estate investors who were flush with cash also…Know your area of expertise and have capital to put to work…The well funded are the only people who made money during this economic landslide that turned into a nice bounce…
I hate to be bullish about certain RE markets but Florida to me is a prime opp for a longterm RE play…I have watched this market pull back %75 in some areas…My thinking is if you liked Florida during the boom you have to love it now…Florida is one place where renting makes zero sense…I bought a place in Melbourne Beach for .30 on the dollar…2 blocks from the beach,screened in pool,3k sq foot house built in 2007…I paid about half of what I figure the rebuild cost is…Its time to buy there…
The real answer to the question of what is driving this stock market is the lowering of the bond market. As institutions draw out of the bond market the money has to go somewhere, usually into the stock market to artificially drive up prices. So what we have is a crashing bond market and an artificially high stock market, and the lowest real estate market in history.
I do not know what you should do but I am buying as much real estate as I possibly can,any way that I can.
The bond market is probably going to collapse, due to all of the borrowing of local, state and federal deficits and lowering tax revenues. If it does I won’t be hurt by it because I am buying ,Gold , Silver, and Real Estate, Heavy on the Real Estate.
I do not follow the institutional investors because as fdjake pointed out by the time we can get in on it the money has already been made. If property manager is right with doomsday theory, I will have solid assets that cannot be devalued by the government like the dollar.
Redhawk
some nice, (sell off), action these past couple days…hope it continues…
-Mike
a little name change here:
http://blogs.wsj.com/marketbeat/2011/03/23/q-why-did-qqqq-drop-a-q-to-become-qqq/
-Mike
I wouldn’t embrace the “recovery” bandwagon just yet. Stimulus spending is just running out now and there are still record-shattering public debts behind it all. Congress is going to raise the national debt ceiling - again - over the coming weeks to avoid (or postpone) a Federal Bankruptcy. We ain’t out of the woods yet…
embrace?
far from it…
just cold calculation.
-Mike