All Forum Posts by: James W.

@Mike Dymski

but the values of the underlying assets definitely vary with many of the same market forces. "Preserved" is likely not the best word because the values of the assets (and the capital) can go up or down.

This makes sense.

@Bill F.

If the price has gone below what you paid for it, ..., you priced it wrong when you bought it,

Correct.

My point is, that it seems the purchase price of the share or the REIT is very significant.

And it may be bought at the "wrong" price. Then the correction may last months or years and investor is just waiting out now.

I understand I dont have to sell it - but its also frustrating to keep holding it just because its bought wrong .

I think there's this concept of buying a stock when its undervalued - i dont know exactly how it works.

When its cheaper against its NPV, or its Dividend Yield.

I dont see a clear way to draw either of those on the chart against the price to see when a stock was undervalued or cheaper historically.

Looking.

Thanks for your responses.

@Omar Khan

I dont see how every asset loses its value. Bonds and CDs held till maturity dont. 

Also it doesnt sound right that most experienced investors aren't bothered by the price fluctuations.

They may not be focusing on D2D prices, but if they buy a dividend stock at peak and it falls 20% and remains under for a year or two, or longer - this is one heck of a waste.

@Eric Adobo

@Eric Adobo

Non trade REITs are where 💰 goes to die.

Can you elaborate?

@Eric Adobo

Prices dont always go down, but they go down a lot on Daily charts. They cannot keep going up in a straight line.

So many times they are correcting downwards erasing all divident gains.

As for FI "funds", they go down with IR rates up.

But Non-Traded REITs, or Funds, are basically portfolios of properties that are not being traded.

If held till maturity, or till project end - most of the capital remains preserved.

Hi,

I want to understand what happens if a REIT pays 8% dividend, but then its price drops by 15% in the same year, because its traded on public exchange?

This is not a fictional scenario. These are Starwood (STWD) numbers in 2015. And its not a one off, there are so many such examples of REITs and stocks in general.

I wonder whats the point of investing in Dividend assets when their price wipes out all dividend gains.

I am unable to invest beyond Fixed Income Funds because of this paradox. May be I misunderstand this.

Can someone explain this to me?

Hi guys,

Does anyone have real experience paying Capital Gain tax on an investment property?

We can use an example of a condo purchased at 500k and sold at 1M, held for 5 years with no owner residency. 

How much tax is the owner liable to pay on this sale? 

Fed and State separately and combined?

State is NJ, but I can hear experiences from anywhere.

Thank you.

@Ron S., everyone...

Can you play a scenario where Mr. Holmes bought a home for $500,000, and took a mortgage of $400,000.

Now, what does he do to get a second, NON-HELOC mortgage?

Hi,

We all know homes at auctions many times have more than one mortgage. 

Can someone explain to me how does an owner get two mortgages on the same house?

I can imagine the HELOC. But Is there any other way how the owner landed up in two loans?

For example can owner take two mortgages at the time of financing a home purchase?

Or, taking a second mortgage a few years later, like refinancing, but paying only part of the first, so carrying two mortgages?

@Ron S.

got it

Does anyone knows a good source of buying them for Condos in Northern New Jersey?

Also, can someone bullet point profit strategies from notes?

• Performing notes
• Non-Performing notes

@Dave Van Horn

@Dave Van Horni will check out ppr notes and similar vendors now. thank you.