http://www.biggerpockets.com/renewsblog/2009/02/09/leverage-friend-foe/ Learn, Network, Invest Sun, 22 Nov 2009 23:05:43 -0500 http://wordpress.org/?v=2.8.5 hourly 1 http://www.biggerpockets.com/renewsblog/2009/02/09/leverage-friend-foe/comment-page-1/#comment-64117 lance shutter Mon, 23 Feb 2009 15:33:31 +0000 http://www.biggerpockets.com/renewsblog/?p=3977#comment-64117 Well said, but given the alternatives in this climate any cash on cash return in excess of 5% is outstanding and given the still stable markets with appreciation the internal rate of return can still be approaching double figures. Plus you own a "tangible" asset not paper which has value only to the Boardroom. Also assuming your hard costs are fixed ie. Mortgage, Taxes with rent escalators your returns continue to grow. And opposed to selling stocks where you just pay the taxes you can defer via 1031. Well said, but given the alternatives in this climate any cash on cash return in excess of 5% is outstanding and given the still stable markets with appreciation the internal rate of return can still be approaching double figures. Plus you own a “tangible” asset not paper which has value only to the Boardroom. Also assuming your hard costs are fixed ie. Mortgage, Taxes with rent escalators your returns continue to grow. And opposed to selling stocks where you just pay the taxes you can defer via 1031.

]]> http://www.biggerpockets.com/renewsblog/2009/02/09/leverage-friend-foe/comment-page-1/#comment-63736 Breckenridge Realtor Mon, 09 Feb 2009 22:34:55 +0000 http://www.biggerpockets.com/renewsblog/?p=3977#comment-63736 Real Estate investment are not bad if you choose the right market, although such market a not easy to find, they are available and investors are making 20-30% profit in 18 months or less. Take Breckenridge, Colorado for example. I bought a house about two years ago and put it on the short term vacation rental market. It produced 10% of the purchased value annually. I sold it for a profit of 32% of the purchased value 18 months latter. I cannot say that this is going to work in every market, Breckenridge is unique due to it popularity as a ski resort and also due to the fact that we have very limited land availability the closer we reach build-out county-wide. Real Estate investment are not bad if you choose the right market, although such market a not easy to find, they are available and investors are making 20-30% profit in 18 months or less. Take Breckenridge, Colorado for example. I bought a house about two years ago and put it on the short term vacation rental market. It produced 10% of the purchased value annually. I sold it for a profit of 32% of the purchased value 18 months latter. I cannot say that this is going to work in every market, Breckenridge is unique due to it popularity as a ski resort and also due to the fact that we have very limited land availability the closer we reach build-out county-wide.

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