Pro Contracts and Investments

Oldnslo
Posts
205
Joined
8/9/2015
Location
USA
9/27/2016 3:09am Edited Date/Time 9/27/2016 3:10am
Sounds like a lot of BS to me, if it sounds to good to be true....run away quickly...only one guy getting rich ..
9/27/2016 4:45am
MxKing809 wrote:
Don't sweat it bud.... I couldn't figure out x 10,000 the other day and thought I had my age x 10,000 in retirement
Whoops! I'm not going to do math on Vital anymore.
APLMAN99
Posts
12938
Joined
4/1/2008
Location
Tualatin, OR, USA
Fantasy
9/27/2016 7:20am
We are investing in organic produce. It will take time, but as long as the well doesn't run dry then we should be able to make...
We are investing in organic produce. It will take time, but as long as the well doesn't run dry then we should be able to make a nice chunk of change with aquaponic farming, and we hope to be able to grow almost all of our own food. It was my wife's hare brained idea and we are running with it. It has been fun playing in the dirt all day.

We got the property cheap because all the avocado trees were dead and we are rebuilding it. We both work full time still, but we hope to be producing fruit within the next couple years. For now it is just a dirt hill, but it's our dirt hill.

Have you guys abandoned the contract nursing, traveling the country idea already?
newmann
Posts
24437
Joined
4/1/2008
Location
USA
9/27/2016 7:39am
Steiny wrote:
Youre much smarter then the average rider and I agree 100% with the first part of your post. The second is way off, someone needs to...
Youre much smarter then the average rider and I agree 100% with the first part of your post. The second is way off, someone needs to educate you in real estate financing and investing. First off, youd have to be a complete idiot to pay cash for any real estate youre using as an investment when intrest rates are 2.5%.

Trust me, there is money to be made in commercial real estate, it just takes time finding motivated sellers and a good relationship with the right banker, and the average beats or paces the S&P every year.



newmann wrote:
Where are we finding interest rates at 2.5% for real estate investments?
Steiny wrote:
Sorry, I meant 3.5%. No, I dont have a rich uncle at the bank, just a good relationship with a solid locally owned bank.
3.5% commercial rate loans for a rental property? Or did you just buy a second "vacation" home? I thought I did good combining a bunch of 7-8.25% loans into one 5.50% back in 2011.

The Shop

moto0852
Posts
943
Joined
4/1/2008
Location
Draper, UT, USA
9/27/2016 8:07am
MarkF wrote:
*
Ive averaged 10.4% a year for over 6 years with a simple P2P account at Prosper.com
mx_563
Posts
2245
Joined
4/1/2008
Location
USA
9/27/2016 8:23am
pretty sure investing in real estate worked for Jim Holley.
newmann
Posts
24437
Joined
4/1/2008
Location
USA
9/27/2016 9:02am
mx_563 wrote:
pretty sure investing in real estate worked for Jim Holley.
Well, tell us more.
CarlinoJoeVideo
Posts
7516
Joined
11/30/2013
Location
Portland/Los Angeles, CA, USA
9/27/2016 9:59am
MarkF wrote:
*
moto0852 wrote:
Ive averaged 10.4% a year for over 6 years with a simple P2P account at Prosper.com
Which risk were you investing at? I'm interested in the Prosper deal. Thanks!
mx_563
Posts
2245
Joined
4/1/2008
Location
USA
9/27/2016 11:29am
mx_563 wrote:
pretty sure investing in real estate worked for Jim Holley.
newmann wrote:
Well, tell us more.
Naw, I just remember reading stuff and hearing interviews with Jim. I think he even referred to himself once jokingly as a San Fernando Valley slum lord or something to that effect. Pretty sure he owns or owned a good number of rentals in and around Chatsworth and his post racing career (training Japanese riders, stunt work, SX Live, etc) was a labor of love more so than a necessity. I think I even read an interview with Juss Laansoo where he mentioned it. The house he came over and stayed at was one of Holley's rentals, I believe.

I didn't mean for my original comment to come across as a declaration of fact. It's just what I gathered from the various little nuggets of information that have surfaced over the years.

ACBraap
Posts
1176
Joined
2/10/2012
Location
Seattlish, WA, USA
Fantasy
9/27/2016 11:37am
MarkF wrote:
*
moto0852 wrote:
Ive averaged 10.4% a year for over 6 years with a simple P2P account at Prosper.com
Which risk were you investing at? I'm interested in the Prosper deal. Thanks!
I'm at about 6, in a year and a half on Prosper. AA and A only, set to auto reinvest.

I'm sure higher returns are possible if more work is put in.
Panic_Rev
Posts
686
Joined
7/13/2012
Location
Fayetteville, AR, USA
9/27/2016 11:54am
MxKing809 wrote:
I max out my yearly contributions at the 17% percent I'm allowed.... mostly long term stocks in a pre-built package. It's aggressive now, and will taper...
I max out my yearly contributions at the 17% percent I'm allowed.... mostly long term stocks in a pre-built package. It's aggressive now, and will taper off towards my retirement date in 2045. My YTD is around 7.9% last time I checked. I should have around 1.5 in there when I'm done working.

If riders were smart, they'd bank 1 mil and live on the 5% interest.
So you're making about $105k and maxing 401k at $18k. I hope that's not all in pre-tax dollars. If so you won't have $1.5m after taxes. You aren't guaranteed a 5% return, so you may find yourself dipping into principle when earning less interest.

$50k off $1m sounds nice until you pay taxes. Today that is a 15% bracket, in 1996 a 28% bracket, and if Hillary wins who knows.
Skidaddle
Posts
1707
Joined
7/19/2016
Location
Woodland, CA, USA
9/27/2016 12:16pm
newmann wrote:
Where are we finding interest rates at 2.5% for real estate investments?
Steiny wrote:
Sorry, I meant 3.5%. No, I dont have a rich uncle at the bank, just a good relationship with a solid locally owned bank.
newmann wrote:
3.5% commercial rate loans for a rental property? Or did you just buy a second "vacation" home? I thought I did good combining a bunch of...
3.5% commercial rate loans for a rental property? Or did you just buy a second "vacation" home? I thought I did good combining a bunch of 7-8.25% loans into one 5.50% back in 2011.
I dont buy he got that on a commercial property.. Maybe on a 1-4 unit, but not a commercial property.

Holley bought when houses were cheap(er)

Most smart people invest in ways to hide money.
PTshox
Posts
1594
Joined
10/1/2011
Location
Highland Village, TX, USA
9/27/2016 12:24pm
You need to understand market cycles to maximize your returns on Real Estate or the stock market.

However, DV's strategy is a very solid one. Infact, look at the Forbes 400 list. What has made the vast majority of them the money they have? It's business (owned or invested in) that trade on public stock markets.

If you don't know what to do but have some $... simply buy a vanguard no load stock index fund and you'll be fine. But, sadly, most want to risk money at the shot of landing a big one. That rarely happens...

Just this am a guy I worked with in Silicon Valley asked me to invest $100K into his company. Nope... way too risky for me. Don't need to land the big one. Just steady returns like DV is going after.
newmann
Posts
24437
Joined
4/1/2008
Location
USA
9/27/2016 12:48pm
mx_563 wrote:
pretty sure investing in real estate worked for Jim Holley.
newmann wrote:
Well, tell us more.
mx_563 wrote:
Naw, I just remember reading stuff and hearing interviews with Jim. I think he even referred to himself once jokingly as a San Fernando Valley slum...
Naw, I just remember reading stuff and hearing interviews with Jim. I think he even referred to himself once jokingly as a San Fernando Valley slum lord or something to that effect. Pretty sure he owns or owned a good number of rentals in and around Chatsworth and his post racing career (training Japanese riders, stunt work, SX Live, etc) was a labor of love more so than a necessity. I think I even read an interview with Juss Laansoo where he mentioned it. The house he came over and stayed at was one of Holley's rentals, I believe.

I didn't mean for my original comment to come across as a declaration of fact. It's just what I gathered from the various little nuggets of information that have surfaced over the years.

I'm always interested in rental success stories. I was able to buy up quite a few at some really good prices from 2008 thru about 2014. Good money makers. Prices are up and deals are few right now. Unlike my business where I have to be here year round, my rentals require a little initial effort and then they just go into petting mode. Unlike the stock market, if one burns down....it's insured!!!Smile
Panic_Rev
Posts
686
Joined
7/13/2012
Location
Fayetteville, AR, USA
9/27/2016 12:59pm
PTshox wrote:
You need to understand market cycles to maximize your returns on Real Estate or the stock market. However, DV's strategy is a very solid one. Infact...
You need to understand market cycles to maximize your returns on Real Estate or the stock market.

However, DV's strategy is a very solid one. Infact, look at the Forbes 400 list. What has made the vast majority of them the money they have? It's business (owned or invested in) that trade on public stock markets.

If you don't know what to do but have some $... simply buy a vanguard no load stock index fund and you'll be fine. But, sadly, most want to risk money at the shot of landing a big one. That rarely happens...

Just this am a guy I worked with in Silicon Valley asked me to invest $100K into his company. Nope... way too risky for me. Don't need to land the big one. Just steady returns like DV is going after.
Look into American Funds. They have out paced index funds and have low expenses.
526
Posts
1731
Joined
5/4/2009
Location
Colgate, WI, USA
9/27/2016 1:06pm
tprice07 wrote:
So what advice does DV have for these guys?

Where should these guys put their money?
dv12.com wrote:
Live modestly. No sports car. No $2M houses. Start a pension & retirement account. Invest instead of spending. Life after MX all the way to death...
Live modestly. No sports car. No $2M houses. Start a pension & retirement account. Invest instead of spending. Life after MX all the way to death is long and cost of living will rise 3% a year till then...
Why retire in CA? CA is one or maybe even the top LEAST Tax friendly state in the united states, I hate to give away more money that I have to just seems there would better places to live financially.
mx_563
Posts
2245
Joined
4/1/2008
Location
USA
9/27/2016 1:30pm
newmann wrote:
I'm always interested in rental success stories. I was able to buy up quite a few at some really good prices from 2008 thru about 2014...
I'm always interested in rental success stories. I was able to buy up quite a few at some really good prices from 2008 thru about 2014. Good money makers. Prices are up and deals are few right now. Unlike my business where I have to be here year round, my rentals require a little initial effort and then they just go into petting mode. Unlike the stock market, if one burns down....it's insured!!!Smile
Yeah, I'm no expert but I was quite surprised when DV said "I don't believe in residential real estate investment".
Seems like a good way to go. People will always need a roof over their heads. I guess whatever he has going on is producing more revenue for him.
9/27/2016 1:41pm
We are investing in organic produce. It will take time, but as long as the well doesn't run dry then we should be able to make...
We are investing in organic produce. It will take time, but as long as the well doesn't run dry then we should be able to make a nice chunk of change with aquaponic farming, and we hope to be able to grow almost all of our own food. It was my wife's hare brained idea and we are running with it. It has been fun playing in the dirt all day.

We got the property cheap because all the avocado trees were dead and we are rebuilding it. We both work full time still, but we hope to be producing fruit within the next couple years. For now it is just a dirt hill, but it's our dirt hill.

APLMAN99 wrote:
Have you guys abandoned the contract nursing, traveling the country idea already?
No, we will still continue to be travel nurses. Most of the good travel contracts are in California anyway. So this will be our home base.

We have some family members that are helping us get this project off the ground. Aquaponics really seems like the future of mass food production. We will be able to produce so much faster than standard farming. It is like farming on steroids.

CarlinoJoeVideo
Posts
7516
Joined
11/30/2013
Location
Portland/Los Angeles, CA, USA
9/27/2016 1:43pm
newmann wrote:
I'm always interested in rental success stories. I was able to buy up quite a few at some really good prices from 2008 thru about 2014...
I'm always interested in rental success stories. I was able to buy up quite a few at some really good prices from 2008 thru about 2014. Good money makers. Prices are up and deals are few right now. Unlike my business where I have to be here year round, my rentals require a little initial effort and then they just go into petting mode. Unlike the stock market, if one burns down....it's insured!!!Smile
mx_563 wrote:
Yeah, I'm no expert but I was quite surprised when DV said "I don't believe in residential real estate investment". Seems like a good way to...
Yeah, I'm no expert but I was quite surprised when DV said "I don't believe in residential real estate investment".
Seems like a good way to go. People will always need a roof over their heads. I guess whatever he has going on is producing more revenue for him.
Real estate can be profitable, just depends how much work you want to put in and seeing the trends on where to buy. I bought a house in Portland around 2012 and its doubled in price. It was luck to gain that much, not a calculated.

DVs investments or anyone investing for the reason to make money with thier money is a calculated decision.
9/27/2016 1:46pm
mx_563 wrote:
Yeah, I'm no expert but I was quite surprised when DV said "I don't believe in residential real estate investment". Seems like a good way to...
Yeah, I'm no expert but I was quite surprised when DV said "I don't believe in residential real estate investment".
Seems like a good way to go. People will always need a roof over their heads. I guess whatever he has going on is producing more revenue for him.
I agree with this too. So many people are too scared or unable to buy for various reasons. We have rented our condo out on airbnb for the past couple months with excellent results. We will be switching to a management company soon because now we live out of state.

We will be looking for more potential rental properties out here in California within the next couple years.
newmann
Posts
24437
Joined
4/1/2008
Location
USA
9/27/2016 1:49pm
mx_563 wrote:
Yeah, I'm no expert but I was quite surprised when DV said "I don't believe in residential real estate investment". Seems like a good way to...
Yeah, I'm no expert but I was quite surprised when DV said "I don't believe in residential real estate investment".
Seems like a good way to go. People will always need a roof over their heads. I guess whatever he has going on is producing more revenue for him.
Granted, he was talking about a $300,000.00 - $400,000.00 house. No way could I see that being a good investment. Let that sit vacant for a couple months and that could seriously skew your numbers. I buy 800-1600 sq. ft townhouses for $31,000.00-75,000.00 each. Rent from $775.00 - $1300.00 per month. Taxes, insurance and association dues are all fairly cheap and I have zero worries about anything on the exteriors as that is all covered in the association. All I have to worry about is inside those four walls. Screen your tenants well and stay on top of them to keep rent coming in on the first. I can pay cash and be making 10-12% within 30 days.

Several I have zero money invested in, 100% financing after appraisal and the rent covers it all on a 15 year note. What percentage return is that when you have someone else buying you several houses. I'm not smart enough to figure that one out...lol.
mx_563
Posts
2245
Joined
4/1/2008
Location
USA
9/27/2016 1:56pm
newmann wrote:
Granted, he was talking about a $300,000.00 - $400,000.00 house. No way could I see that being a good investment. Let that sit vacant for a...
Granted, he was talking about a $300,000.00 - $400,000.00 house. No way could I see that being a good investment. Let that sit vacant for a couple months and that could seriously skew your numbers. I buy 800-1600 sq. ft townhouses for $31,000.00-75,000.00 each. Rent from $775.00 - $1300.00 per month. Taxes, insurance and association dues are all fairly cheap and I have zero worries about anything on the exteriors as that is all covered in the association. All I have to worry about is inside those four walls. Screen your tenants well and stay on top of them to keep rent coming in on the first. I can pay cash and be making 10-12% within 30 days.

Several I have zero money invested in, 100% financing after appraisal and the rent covers it all on a 15 year note. What percentage return is that when you have someone else buying you several houses. I'm not smart enough to figure that one out...lol.
You're in Texas, right? If you don't mind my asking, whereabouts in Texas?
moto0852
Posts
943
Joined
4/1/2008
Location
Draper, UT, USA
9/27/2016 5:16pm
MarkF wrote:
*
moto0852 wrote:
Ive averaged 10.4% a year for over 6 years with a simple P2P account at Prosper.com
Which risk were you investing at? I'm interested in the Prosper deal. Thanks!
I do the C,D.E loans. been ridiculously consistent, no work and high return. PM me if you want more info. I love it and chuckle when people say 4-6% return is good.
moto0852
Posts
943
Joined
4/1/2008
Location
Draper, UT, USA
9/27/2016 5:19pm
moto0852 wrote:
Ive averaged 10.4% a year for over 6 years with a simple P2P account at Prosper.com
Which risk were you investing at? I'm interested in the Prosper deal. Thanks!
ACBraap wrote:
I'm at about 6, in a year and a half on Prosper. AA and A only, set to auto reinvest. I'm sure higher returns are possible...
I'm at about 6, in a year and a half on Prosper. AA and A only, set to auto reinvest.

I'm sure higher returns are possible if more work is put in.
Ive got a good analysis of Prosper loans. If you check it out you;ll want to move to the C,D,E loans. Almost double your return. PM me if you want it.
dv12.com
Posts
1538
Joined
8/15/2006
Location
Murrieta, CA, USA
9/27/2016 5:21pm
526 wrote:
Why retire in CA? CA is one or maybe even the top LEAST Tax friendly state in the united states, I hate to give away more...
Why retire in CA? CA is one or maybe even the top LEAST Tax friendly state in the united states, I hate to give away more money that I have to just seems there would better places to live financially.
Bud, sometimes you don't have a choice. When you have 2 kids, 13 & 11, living in California and you have shared custody, it doesn't feel right to retire in a tax-friendly state...
dv12.com
Posts
1538
Joined
8/15/2006
Location
Murrieta, CA, USA
9/27/2016 5:33pm
newmann wrote:
Granted, he was talking about a $300,000.00 - $400,000.00 house. No way could I see that being a good investment. Let that sit vacant for a...
Granted, he was talking about a $300,000.00 - $400,000.00 house. No way could I see that being a good investment. Let that sit vacant for a couple months and that could seriously skew your numbers. I buy 800-1600 sq. ft townhouses for $31,000.00-75,000.00 each. Rent from $775.00 - $1300.00 per month. Taxes, insurance and association dues are all fairly cheap and I have zero worries about anything on the exteriors as that is all covered in the association. All I have to worry about is inside those four walls. Screen your tenants well and stay on top of them to keep rent coming in on the first. I can pay cash and be making 10-12% within 30 days.

Several I have zero money invested in, 100% financing after appraisal and the rent covers it all on a 15 year note. What percentage return is that when you have someone else buying you several houses. I'm not smart enough to figure that one out...lol.
In California, you can only buy a car for $75k. In my area, mobile homes are $200k+ haha. Those are the 2 cheapest properties in Murrieta, CA right now... You can charge $1300/1400 a month. Taxes at 1.5%. $1k in insurance & $1500 in HOA. Not a great ROI



JB 19
Posts
4350
Joined
3/8/2009
Location
Marion, OH, USA
9/27/2016 5:44pm
newmann wrote:
Granted, he was talking about a $300,000.00 - $400,000.00 house. No way could I see that being a good investment. Let that sit vacant for a...
Granted, he was talking about a $300,000.00 - $400,000.00 house. No way could I see that being a good investment. Let that sit vacant for a couple months and that could seriously skew your numbers. I buy 800-1600 sq. ft townhouses for $31,000.00-75,000.00 each. Rent from $775.00 - $1300.00 per month. Taxes, insurance and association dues are all fairly cheap and I have zero worries about anything on the exteriors as that is all covered in the association. All I have to worry about is inside those four walls. Screen your tenants well and stay on top of them to keep rent coming in on the first. I can pay cash and be making 10-12% within 30 days.

Several I have zero money invested in, 100% financing after appraisal and the rent covers it all on a 15 year note. What percentage return is that when you have someone else buying you several houses. I'm not smart enough to figure that one out...lol.
dv12.com wrote:
In California, you can only buy a car for $75k. In my area, mobile homes are $200k+ haha. Those are the 2 cheapest properties in Murrieta...
In California, you can only buy a car for $75k. In my area, mobile homes are $200k+ haha. Those are the 2 cheapest properties in Murrieta, CA right now... You can charge $1300/1400 a month. Taxes at 1.5%. $1k in insurance & $1500 in HOA. Not a great ROI



In Ohio you can invest 25-35K in a single family home that will rent for 650- 750$ a month - 125$ for taxes and insurance.

I don't know how you guys do it in California. Seems like a nice place to live, but the cost of everything would give me acid reflux.
Skidaddle
Posts
1707
Joined
7/19/2016
Location
Woodland, CA, USA
9/27/2016 6:51pm
DV and Newman are talking normal rentals. Thats a potential shitload of headaches.

I have a client whos rental houses are 5-10 grand per week and some are 50 grand per week plus a 20K cleaning deposit all paid up front.

They dont rent to normal people. She has about 500 million in houses and land that is now worth a good 1-3 mm per acre and going up because spots are running out.

In this industry, Joe Gibbs and Pink would be considered a potential tenant.

On the other end, one investor has a good 25 of 45-75K condos and townhomes around Stockton Tracy and Molesto.
All bought during the crash. Most are worth 125-150K now.

Bullet holes, broken windows, locks, etc is the normal. Most are cash payers, illegals, and people never move.
Evictions are the only way.

His family makes a shit ton of money because its easy to get 12-1500 per month rent on a dump.


Skidaddle
Posts
1707
Joined
7/19/2016
Location
Woodland, CA, USA
9/27/2016 6:57pm
526 wrote:
Why retire in CA? CA is one or maybe even the top LEAST Tax friendly state in the united states, I hate to give away more...
Why retire in CA? CA is one or maybe even the top LEAST Tax friendly state in the united states, I hate to give away more money that I have to just seems there would better places to live financially.
dv12.com wrote:
Bud, sometimes you don't have a choice. When you have 2 kids, 13 & 11, living in California and you have shared custody, it doesn't feel...
Bud, sometimes you don't have a choice. When you have 2 kids, 13 & 11, living in California and you have shared custody, it doesn't feel right to retire in a tax-friendly state...
I heard Langston got raked over the coals and back to work you go!
Have you guys compared stories?

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