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Say you had 100k to invest in this economy....

530RL

530RL

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2Driver said:
Hard money lending gets you 9-12%. Just be careful on what LTV you lend out on right now.
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So you are the one offering low rates...... :):)
 
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2Driver

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530RL said:
So you are the one screwing up the market with low rates...... :):)
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Ha. It used to be that loans were 14% at 50 LTV. Now it’s more like 9% at 70% LTV. The problem, as you know, there are brokers out there offering 7-8% so I'm told. I have 3 loans out now and am not all that comfortable with it.
 
530RL

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2Driver said:
Ha. All my loans used to be 14% at 50 LTV. Now it’s more like 9% at 70%, . The problem as you know there are brokers out there offering 7-8. I have 3 out now and am not all that comfortable with it.
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We are still at 12 and have remained there. Not as good as the old days of 18 and a thousand bucks but those days are gone for good.

Most of the brokers offering the lower rates have points and our borrowers are repeat customers who can do math and understand an 8 percent loan with 2 points when it is only out for 4 months is more expensive than a flat 12.

If they can't figure that out, not sure I want them as borrowers. :oops::oops:
 
2Driver

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530RL said:
We are still at 12 and have remained there. Not as good as the old days of 18 and a thousand bucks but those days are gone for good.

Most of the brokers offering the lower rates have points and our borrowers are repeat customers who can do math and understand an 8 percent loan with 2 points when it is only out for 4 months is more expensive than a flat 12.

If they can't figure that out, not sure I want them as borrowers. :oops::oops:
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Do you do your loans direct or through a Broker. I’ve used 2 brokers in Phx/Scottsdale and have done some direct to borrowers.
 
530RL

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2Driver said:
Do you do your loans direct or through a Broker. I’ve used 2 brokers in Phx/Scottsdale and have done some direct to borrowers.
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Direct in AZ, through a broker in Nevada, California and Florida.
 
Mandelon

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I would put that money into stocks that pay a high dividend. Even if the market drops these types of stocks still kick out a dividend
payment every year or quarterly or whatever their payout is. I would expect their values would be buoyed by the fact they they pay back regularly.

www.nerdwallet.com

Top 20 High-Dividend Stocks for April 2024 and How to Invest - NerdWallet

High-dividend stocks can be a good choice for investors. Learn how to invest in them, and view a list of stocks with high dividends — 8% or more.
www.nerdwallet.com www.nerdwallet.com
 
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prorider

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Mandelon said:
I would put that money into stocks that pay a high dividend. Even if the market drops these types of stocks still kick out a dividend
payment every year or quarterly or whatever their payout is. I would expect their values would be buoyed by the fact they they pay back regularly.

www.nerdwallet.com

Top 20 High-Dividend Stocks for April 2024 and How to Invest - NerdWallet

High-dividend stocks can be a good choice for investors. Learn how to invest in them, and view a list of stocks with high dividends — 8% or more.
www.nerdwallet.com www.nerdwallet.com
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Doesn’t seem like a great short term plan in a down market. Stocks down 20% and get a 1/4 percent dividend.
 
Paradox

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HBCraig said:
Honestly, buy a Dutch Bros. Every freaking time I pass, no matter the time of day, it's packed with a massive line. I checked into buying a franchise. It's 125K
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No kidding.. In every city I’ve seen them in as well.

Shit load of work to run one would be my guess.
 
c_land

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Bitcoin is on sale right now.

1642745720698.jpeg
 
CLdrinker

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Well Disney stock just shit the bed. That would be a good place to put money.
 
Xring01

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This is a very hard question

Because the fact the Fed will be raising interest rates several times this year, will have significant impacts on the Stock Markets, and Real Estate Market, which is the reason why the fed is raising the rates. TO COMBAT INFLATION, To slow the economy down.

In the short term the markets are showing the rate hike pressure, and are slowing down and dropped some.

In the short term the housing market has not slowed down, because of the fear the rates will be increasing in the future, meaning now may be the best time to buy. Assuming that housing prices do not drop, due to the raising rates. However after the second or third rate hike, I would see housing prices stagnate as a minimum, maybe even drop a bit.

If I had $100,000 in cash now. I think I would just sit on it, and wait to see whats gonna be a better purchase in the future. Stocks or RE.
Wait 9 months to determine what the impacts are, and hopefully buy something at the bottom.

Which minimizes the risk of the investment….

BUT THATS MY OPINION..

BTW… saying all of that, my house (in Murrieta) will be up for sell in the next week or so, and I will be moving to Reno… I still dont know what my plan is… Buy a cheap small house at todays markets, to make it a future rental, hope for a housing market correction to buy a bigger nicer house, or just buy the house I want when I get there and take the gamble there will not be a correction..
 
LargeOrangeFont

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Xring01 said:
This is a very hard question

Because the fact the Fed will be raising interest rates several times this year, will have significant impacts on the Stock Markets, and Real Estate Market, which is the reason why the fed is raising the rates. TO COMBAT INFLATION, To slow the economy down.

In the short term the markets are showing the rate hike pressure, and are slowing down and dropped some.

In the short term the housing market has not slowed down, because of the fear the rates will be increasing in the future, meaning now may be the best time to buy. Assuming that housing prices do not drop, due to the raising rates. However after the second or third rate hike, I would see housing prices stagnate as a minimum, maybe even drop a bit.

If I had $100,000 in cash now. I think I would just sit on it, and wait to see whats gonna be a better purchase in the future. Stocks or RE.
Wait 9 months to determine what the impacts are, and hopefully buy something at the bottom.

Which minimizes the risk of the investment….

BUT THATS MY OPINION..

BTW… saying all of that, my house (in Murrieta) will be up for sell in the next week or so, and I will be moving to Reno… I still dont know what my plan is… Buy a cheap small house at todays markets, to make it a future rental, hope for a housing market correction to buy a bigger nicer house, or just buy the house I want when I get there and take the gamble there will not be a correction..
Click to expand...

Going to be listing or straight selling the house Carmax style in the next few weeks as well. Doing the sell high, buy high thing while rates are still low.
 
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wzuber

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Why n
Xring01 said:
This is a very hard question

Because the fact the Fed will be raising interest rates several times this year, will have significant impacts on the Stock Markets, and Real Estate Market, which is the reason why the fed is raising the rates. TO COMBAT INFLATION, To slow the economy down.

In the short term the markets are showing the rate hike pressure, and are slowing down and dropped some.

In the short term the housing market has not slowed down, because of the fear the rates will be increasing in the future, meaning now may be the best time to buy. Assuming that housing prices do not drop, due to the raising rates. However after the second or third rate hike, I would see housing prices stagnate as a minimum, maybe even drop a bit.

If I had $100,000 in cash now. I think I would just sit on it, and wait to see whats gonna be a better purchase in the future. Stocks or RE.
Wait 9 months to determine what the impacts are, and hopefully buy something at the bottom.

Which minimizes the risk of the investment….

BUT THATS MY OPINION..

BTW… saying all of that, my house (in Murrieta) will be up for sell in the next week or so, and I will be moving to Reno… I still dont know what my plan is… Buy a cheap small house at todays markets, to make it a future rental, hope for a housing market correction to buy a bigger nicer house, or just buy the house I want when I get there and take the gamble there will not be a correction..
Click to expand...
Why not rent for a yr.ish then move on a deal?
Buy/rent dirt and live in a nice 5th wheel? How bad could it be? Haha
 
Xring01

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wzuber said:
Why n

Why not rent for a yr.ish then move on a deal?
Buy/rent dirt and live in a nice 5th wheel? How bad could it be? Haha
Click to expand...
Exactly, so lets say I did that, and inflation/interest rates… drive the total ownership costs up 10% or 15% in 12 months.
That can happen…
 
Xring01

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LargeOrangeFont said:
That worked out well for the people that Cashed out at the peak in 2015, 2016, 2017, 2018, 2019, 2020, and 2021. :)
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Are you positive your crystal ball is accurate.
Because if mine was, I would have been a millionaire by the time I was 25… yet here I am,, and no millions.

Yes, I am picking up on the sarcasm… and expanding upon it…
 
TimeBandit

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LargeOrangeFont said:
That worked out well for the people that Cashed out at the peak in 2015, 2016, 2017, 2018, 2019, 2020, and 2021. :)
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I remember showing my rental house to a couple in 2016 that had Just sold their house at "the peak of the market" I wonder what they are doing these days for shelter.....
 
LargeOrangeFont

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Xring01 said:
Are you positive your crystal ball is accurate.
Because if mine was, I would have been a millionaire by the time I was 25… yet here I am,, and no millions.

Yes, I am picking up on the sarcasm… and expanding upon it…
Click to expand...

The first million is always the hardest. Just start working on your second million instead.
 
LargeOrangeFont

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TimeBandit said:
I remember showing my rental house to a couple in 2016 that had Just sold their house at "the peak of the market" I wonder what they are doing these days for shelter.....
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Were they RDP members :)?
 
Xring01

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zhandfull said:
Seven to ten year cycle. Must be time for a crash. Buckle up!
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Well, The Fed does not want a crash.
They want 1-3% Economic growth… However when the markets get over heated, and the fed reacts, its very possible to get a correction.

Now I am not smart enough to determine what that impact will correlate to.

Best guess… fed will be cautious, and do there best to stagnate the real estate market. However in that process if the Stock Market corrects with a minus 10%, then they will back off the “Rate Increases”…

Why is all the key reasons why I state, My crystal fucking ball is broken, anyone who tells you they know for a fact how this will play out. Its either a genious if they are right… but most likely an idiot, because the odds are stacked against them to be correct.

Because there are so many moving parts to this ever evolving equation.
 
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Havasu blue label

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The first million was the easiest it’s the third that takes a little thinking I’m talking liquid not stocks are equity in homes
 
zhandfull

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Xring01 said:
Well, The Fed does not want a crash.
They want 1-3% Economic growth… However when the markets get over heated, and the fed reacts, its very possible to get a correction.

Now I am not smart enough to determine what that impact will correlate to.

Best guess… if the fed will be cautious, and do there best to stagnate the real estate market. However if that process if the Stock Market corrects with a minus 10%, then they will back off the “Rate Increases”…

Why is all the key reasons why I state, My crystal fucking ball is broken, anyone who tells you they know for a fact how this will play out. Its either a genious if they are right… but most likely an idiot, because the odds are stacked against them to be correct.

Because there are so many moving parts to this ever evolving equation.
Click to expand...
The FOMC meeting and news conference after should be interesting.
 
C-Ya

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Oh what the hell…… I’ll take a swing at this thread.

100k is worth 500k in leverage money. Just saying

For those that want rental income, there are a lot more ways to achieve this than just residential rentals.

What else do people or businesses rent?

Storage Space
Parking Spots (there are a ton of parking lot millionaires)
RV Spaces - both storage and livable
Commercial Buildings - (I don’t want to own an established bar, I want to own the building and lease it to the bar owner)
This could be a long list…..

Here is an example of creativity…… My friend buys a small triangle lot in Torrance for the sole porpose to rent it to contractors looking for a place to park work trucks. He ends up with a long term lease for a concrete contractor.

He paid 50k for the small lot that one corner actually bordered the 405 freeway. Here is where the BIG money came. He then leased the “Air-Space” on the lot to Outdoor Systems who put up a billboard that fronted the 405 Freeway. Outdoor Systems pays him $12,500 per month for 26 year lease, from a 50k total investment. The next lease will be double that amount.

My point is, there are many creative ways to get rental income. Sometimes you have to look outside the box.
 
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