All Forum Posts by: Kevin Yeats

Short answer: Scam

Long answer: Scam

Explanation: Defies common sense. If it sounds too good to be true, it is.

Hopefully, this is your happy ending.

Mario, I don't think you have enough information to make an offer ... other than a ridiculously low ball offer.

Find out about monthly maintenance expenses, property management expenses and also what comparable 1 bed/1 bath units rent for in the area along with area vacancies.

Unless everyone in the neighborhood does their laundry there, the income from the laundry is vastly overstated. Make the owner/seller/realtor PROVE that figure is accurate ... otherwise assume it is $0

For 8 units, laundry income of $24 per month is more likely. That alone cuts the NOI in half.

I have to agree with Jon & Jon ... Way overpriced.

I recently worked with someone looking at an 8 unit (different state). I felt that one was overpriced in the low 300s.

Other numbers that you provided are highly questionable. If these are the numbers that the seller did reveal, what numbers & issures are they hiding?

Believe it or not, the Fed is much better at constraining than loosening.

The "pushing on a string" analogy.

Prices will increase by 10% ..... but I don't know how long it will take to hit that increase.

When I worked for an organization that made (internal) predictions we learned to predict a number OR provide a date .... NEVER BOTH!

But since this is just in fun and I reserve the right to change my prediction without notice, I will answer.

I seriously doubt if we will witness widespread deflation. Ben Bernanke is much too alert and too concerned of the consequences of deflation to let that become a problem. We will still see some markets exhibit price weakness and that will infect other collateral industries. (Notice I didn't name markets - but I think the Southeast will be weak for a while yet and again lead the nation in bank failures).

I also seriously doubt that we will witness hyperinflation - at least the kind where we observe people hauling wheelbarrows of cash around.

My guess is that at some point we will witness accelerating inflation that will last for several years --- kind of a creeping acceleration. Unless the Fed still has GREAT concerns over deflation OR is tied up in Congressional hearings, the Fed will handle the inflation before it gets out of control

The number (SWAG) CPI inflation of between 3% & 6% in 2012 or thereafter.

Wildcards: Obamacare (not a fan), antibusiness initiatives, state and municipal bankruptcies and government response thereto (higher taxes & fees or drastic cuts).

This is worth exactly what you paid for it!

I'll add a comment without making a prediction.

As a property owner under an accelerating inflation environment - especially, egads, if we hit double digit inflation, take care of both ends of your cash flow. Don't sign any tenants to long term leases (longer than one year). This will allow you as the property owner to reprice the monthly rents to more current levels more frequently.

Also, if possible refinance to fixed rate loans before the inflation heats up. Of course, after inflation heats up, and inflation premium is added to interest rates. If you have variable rate debts, those rates will ratchet up as inflation accelerates.

Good luck.

@Don

In my opinion, you have a lot to learn.

This is not the place nor am I the appropriate teacher to assist you.

Good Luck.

Bryan, another factor which I should have mentioned is that the cash value within a life insurance policy is protected from most lawsuits.

This is only my understanding and is not legal advice nor should it be interpreted as legal advice.

Bryan, you are correct that insurance as part of a wealth building plan is complicated. That is why I have stated repeated to use competent professionals.

As for the liklihood or unliklihood of a premature death and the financial consequences rising from that event, I beleive most individuals grossly underestimate those probablilities for themselves while acknowledging the same risks for others.

Quite frankly. Whole Life Insurance would be low on my list of preferred insurance policies but in some cases, that is all that is available.

Bryan, have a conversation with a professional about Private Placement Life Insurance.

But I will leave this thread with the agreement with you that insurance - all insurance - is a complex, changing but much needed subject to address during wealth-building.

Bryan, what Scott Burns wrote is accurate but incomplete.

He is correct in that term insurance is good for temporary needs and whole life is good for people with commitments/obligations that won't disappear (permanent).

The problems with Mr. Burns' response are 1) that he does not identify which needs won't go away and 2) sometimes those needs appear unexpectantly later in life (care for an aging/frail parent(s), taking care of grandchildren, children that return to the nest, etc.).

What happens when those needs change after the one needing coverage has experienced a decline in health?

Mr. Burns also does not identify or discuss the alternative permanent life insurance plans that are available (Universal, Variable Universal and Private Placement).

All this again leads to my conclusion that the answers to insurance needs should come from competent professionals in multiple fields (Investments, Insurance, legal and accounting). Newspaper writers and internet message boards (including BP - sorry Josh) are very poor substitutes for competent advice that fits the needs of each individual.