Comments on: Imprudent Use of Leverage: A Contrarian Opinion

By: Best Personal Financial Articles | Personal Investment Management and Financial Planning Blog Directory

Fri, 29 Jan 2010 04:38:53 +0000

[...] Dorkin presents Imprudent Use of Leverage: A Contrarian Opinion posted at Real Estate Investing For Real, saying, “Contrarians zig while other investors zag. [...]

By: Frank Schulte-Ladbeck

Frank Schulte-Ladbeck — Sat, 23 Jan 2010 11:30:38 +0000

So far the contrarian practice has worked out for me in my stock portfolio, but REITs are still taking a bashing. I imagine it is a matter of being able to deal with this debt for awhile to ride our current economic circumstances out. I am glad that you highlighted that fact. Investors have to understand what the costs are, and how to make a profit.

By: Brian Brady

Brian Brady — Fri, 22 Jan 2010 19:17:48 +0000

It’s a pleasure to be here, Josh. Thanks for the invitation and I appreciate the referral, Jeff.

Readers should not that Greg and Jeff are two real estate brokers in whom I would place my trust. Greg’s “hot list” is always an interesting read

By: Jeff Brown

Jeff Brown — Fri, 22 Jan 2010 18:32:35 +0000

As usual, Brian, excellent post. What is surprising is how so many investors discuss leverage when they’re completely unaware of it’s primary investment-related definition.

You touch on it with your mention of arbitraging. Hope we see more of you here.

By: Joshua Dorkin

Joshua Dorkin — Fri, 22 Jan 2010 18:07:10 +0000

I’m with both you and Greg on this one. Market conditions are such that, at least in my humble opinion, we’re in as great a time to invest in some real estate as we’ve ever been. With proper due-diligence, you can scoop up plenty of diamonds in the rough, while keeping the risk to a minimum.

By: Greg Swann

Greg Swann — Fri, 22 Jan 2010 16:46:14 +0000

Thanks for the mention. I think this is sound advice, straight down the line. This is no market for the faint of heart, but if you’ve got some risk tolerance in your character, there are gemstones to be had at bargain-basement prices.