All Forum Posts by: Frank Wong

How much you like the deal?   It's really up to you but I think the risk was listed above by everyone else. Just don't ask for anything absurd. 

Know exactly what you are getting into. $30k properties have specific issues and you must be prepared for them. Not my cup of tea. Where is the value on a $30k home if you have to spend $30k to fix it? Just saying.

Everything has risk and when you are not offering a necessity in life that risk gets exposed quickly. Short term rentals will be hurting for a while.  The entire travel and hotel industry will be in pain for a while. Hotels have deep pockets and lines of credit to pull upon they can slash their prices to get customers. 

Im in with the group with slim margins. High risk low reward. Adding a 2nd story is tough on aesthetics very rarely do they turn out great. 

People said the same thing about Lehman Bros and Bear Sterns. The fact is no one knows.  We are in unprecedented times anything can happen.  I believe in BA and its important to our country. 

@Jay Hinrichs

Companies that need a bail out have a major cash issue major corp debt issue.  Could go to zero. Risk is extremely high. I asked a good friend of mine who runs a Hedge Fund and I asked him about BA he told me it can go to zero. Doesn't mean the company goes away which won't happen but can mean stock gets killed. AIG comes to my mind.  I am not a stock expert but I listen to ppl who know this space.  Im a real estate guy =). 

I think there is certainly lots of opportunity in the market. Invest in companies with good balance sheets and companies that you know won't need a bail out and will be here in the in the future. Don't buy on margin and only invest with money you don't need for 10yrs. Scale into things.  I see lots of lots companies way oversold. Doesn't mean a bottom but when you scale into things you have ammo to play with. No one knows the bottom but you really don't need to predict that to make money. 

The markets where the fundamentals made sense and people were actually buying homes to live in instead  of buying 2,3,5 rentals thinking it was free money bc of fake appreciation.  

Overnight buyers market for stocks. That was fast and vicious trapped all the bulls. Man that was ugly. Does that translate to real estate? A lot of things need to happen. I think people forget that real estate is a process and on the most basic level it starts with inventory and demand from buyers.