All Forum Posts by: David C.

Yes @felipe neither of us think this company is doing anything criminal.  They ended the product this guy bought, they admit it did not go smoothly. And an appraiser thinks have a too high opinion of their product.  Many of the posts here say that of every Turn key Provider.

Disparaging them by name would be unwise When they may be litigious. 

Sorry The @ did not work on my tablet. 

@Filipe Matos - got it to work

you replaced a toilet to unclog it?  Wow.  Is this normal practice?  

if it's who I think they had a few problems with handheld rehabs with investors.  Now they rehab, then sell, and then offer PM, but I guess if the appraisals are too high, it might still be difficult to profit by working with them.

I was advised by a local appraiser not to work with them, but he swore me to secrecy, so I think they like their lawyers.  Probably safest not to drop the name.

@David Krulac

 thus his conclusion that holding real estate inside the tax-advantaged plan is not an advantage - you end up paying regular income tax on the monies that come out, rather than the lower capital gains tax rate.

@David Krulac

  I'm sure you could guess this, but he's saying his net cash flow is close in value to his depreciation expense.  So as long as he's depreciating, his 'income' is smaller than his cash flow and his effective tax rate on his cash flow looks very low.

because we know depreciation is not a 'real expense', its just tax forms.  He acknowledges that he is deferring the tax but is planning and hoping that the long term capital gains tax remains lower than the income tax.

@Richard Dunlop

  see my response to your first post.

@Richard Dunlop

but you are NOT the bagholder, you are the beneficiary of a previous person who was the bagholder.  Look at the history of your property.  I'm sure it has a few sales at much higher prices than what you paid.  Didn't those folks also own an investment that could not go down because people need somewhere to live?

And, maybe you are a bagholder - you just don't know yet.  If cleveland keeps going down, maybe you end up with an empty property in a war zone.

I hope you aren't, and I really doubt you are going to end up one.

People will always need somewhere to live so your risk is minimal if you know how to buy right.

This is the kind of advice that encourages the ill prepared to 'go for it'.  The 'IF' at the end is summarily ignored - and you never know if you 'bought right' until its too late.

That's like saying you'll never lose money in the stock market if you buy low and sell high.

People needing somewhere to live is not helping the bagholders in detroit, cleveland, etc... 

I think its a very sad commentary on parents and the education system that so many people give this drivel so much credit.

If I learned anything from that con man I'd be embarrassed to admit it.

However, what I have learned on here is that many successful people are not ashamed - they hold up their previous ignorance as a badge of honor and wave this book like a bible.  I just don't get it, but I do appreciate that some good has come from this book.

I suspect much more harm has come from it than good - and the victims who cashed in their 401k, then over leveraged in real estate and are now broke, more often end up homeless or kill themselves than come on the internet to admit what it did to them.  I think RK is the devil.

@Matt Sauls

  if you go back and read it, Ali speaks in absolutes above.  I'm sure that enrages people who disagree, or know differently.

But that's just my opinion.