All Forum Posts by: Daniel Sanchez

On the subject of #exonomic crashes:

- Median family household #income (US census) -

1999: $42,000

2020: $67,521

(61% increase)

- Median #home Price in the US -

1999: $152,000

2021: $411,000

(170% increase)

- Average #student loan debt at graduation -

1999: $16,030

2021: $37,172

(132% increase)

- Average cost of a new #cars -

1999: $20,686

2021: $45,031

(118% increase)

- 1999 #family net worth statistics (federal reserve) -

Median: $53,100

Average: $219,000

($165,900 gap)

- 2020 family #Networth statistics (federal reserve) -

Median: $121,411

Average: $746,821

($625,410 gap)

- Federal #debt -

1999: $5.606 trillion

2021: $28.9 trillion

(416% increase)

- #Suicide rates per 100k (Americashealthranking) -

1999: 10.5/100,000

2020: 14.2/100,000

(35% increase)

The powers at be have allowed these numbers increase for 22 years and have done nothing but make it worse at a faster rate. Everything costs significantly more compared to our collective wage increases, and our federal debt is clearly out of control (currently INTEREST payments alone account for 8% of our federal taxes). Our social security system is woefully underfunded - Robert Kiyosaki predicted a 2025 crash in his 1998 book “cash flow quadrant” for that reason alone due to baby boomers retiring. And now we decide to solve all of our problems we should just print money, a solution a 10 year old could come up with. This caused our 7% inflation last year and the soon to come mortgage rate increases, which will prevent even more people from becoming home owners and begin to improve their financial lives.

Our trajectory as a society is only getting worse for the average American. I believe everyone should have fair chances, but unfortunately it gets harder and harder for people of lower income brackets to move up in the world. I’ve seen some struggles since I was a child. I was able to build a solid net worth by 26, but only because I was fortunate enough to get into real estate. We know not everyone can, or we’d have too much competition to collectively succeed.

I believe people will only live so poorly for so long. Does anyone else project possible pandemonium on the horizon (similar to a French Revolution)? Wish someone would get into power and right the ship to provide economic stability to our nation, without thrashing our lives and businesses.

Curious about your opinions on this.

With a PC and the internet, knowledge is virtually free.  So is housing, college, and food for certain income brackets.  We live in the country with the most opportunity on the planet.  The job market is on fire and good (and many bad) workers can name their price.  There's never been a better time in history to get ahead...we just have to go to work!

@George Mastrosavas - I disagree with your sentiment. Given China's economy heading towards a recession due to their developers overleveraging and ruining the real estate market, e.g. Evergrande, what other country would you rather have your funds in? US seems a lot more attractive than most other countries out there.

I liked the recent podcast where David Greene unpacked the history of how cash flow became everything post 2008 crash and linked it to how before that, buying and banking on appreciation was a key factor in how the meltdown began. 

Things are different now, and in my market I think there’s some room to have the cake and eat it too. 

So… I guess the answer is, Cinangelos?  :| 

If I had $5M to deploy I'd be interested in an appreciation market. But, being I'm a small fish, if I purchased one property in a high appreciation market I'd reach my DTI limit and wouldn't be able to continue buying real estate.

Quote from @Paul Sweetman:

What I truly don't understand is how do you stay alive if you aren't making enough money from cash flow to stay in business? Depreciation and appreciation are great but cash flow pays the bills.   

It's because some investors have actual money! They save up to purchase an investment and then they continue earning a strong income from their W-2 job to support the investment while waiting for appreciation. Most of us can't afford that and have to rely on cheaper properties and cashflow to sustain our investments. Everything I've bought was for cashflow, but I'm also in a decent appreciation market and building some serious equity right not (if it stays). Eventually, I will want to shift money into different markets where I can gain more appreciation or better cashflow. Diversify.

this is an age old question on BP..

you have the Cash flow is the only thing crowd and appreciation is gambling .. and then you have those who invested in markets that historically appreciate who have gotten majorly rich over the last 7 to 10 years on appreciation with no cash flow to speak of.