All Forum Posts by: Bobby Stener

leverage is all good on the way up but cuts like a knife on the way down! Many here on bp are building a house of cards and not paying attention to the risk they are putting themselves in. I urge many investors to look not just at the empires they are building but the risk they are putting themselves in. Building true wealth is not how many doors you have mortgages to the hilt but how much equity you have. Use your cash and build wealth!

Paying into the 401 has its tax benefits and is very beneficial, but paying down the loan!? Keep your powder dry, it’s hard to get that money back out once you pay down that loan... especially at this point in the cycle.

@Nik S. I suspect your attorney is going to tell you that you can’t avoid the reassessment. I would not do the deal if you can’t stomach the new tax bill. I own properties with a low tax base protected by prop 13 in ca and I ran a similar scenerio by my attorney to just sell the llc and he said NO GO

@Anthony Wick he is correct, there are reports that some areas of the sf bay are already down about 5%... this is just the beginning, I’d keep some powder dry if I were you!

@Alan Miegel I have a high end mf in downtown Pleasanton I’ve been considering parting with but it would be at the absurdly low cap rates you are seeing right now. Pm me for the address and you can drive it if your interested.

If I were you I’d sit on that cash and wait for the looming downturn. Be it 1 mo or 1 year away, cash is king and assets could be on sale soon.

There are tax benefits by leasing the property from your llc to your management entity. Your management entity then pays the income tax on the short term rental and your llc pays tax on the long term contract. I am not an expert on this but heard it in a re tax seminar, consult your cpa

@Brandon Hicks so did 99.9% of everyone else!

@Bhavin Palan you are correct that yellen failed to normalize and tighten when she should have (and everything you said RE the consequences of her inactions are true as well) but bernanke certainly needed to remain dovish to get the economy back on its footing.

@Bhavin Palan. Yeah Greenspan made some mistakes but hindsight is always 20/20. But Bernanke (and Paulson) saved the US economy and did a great job!

@Caleb L. You should consider looking into bonds if you do indeed think troubled days are ahead. In a deflationary environment a 2.5% 30 year is going to look amazing in yield.