All Forum Posts by: Matt R.

$801B market cap, and Elon Musk just put $1.5B of his company's money into BTC. 

$801B market cap, and Elon Musk just put $1.5B of his company's money into BTC. 

Hey BP Community!

I have been investing in STR/Vacation Rentals on or near the beach but am interested in growing my portfolio to include other places I like to visit such as ski resorts, big cities, international spots. My issue is, we were in Park City, Utah last week and Breckinridge recently and no matter how I crunch the numbers, cash payment, leveraging, etc., I cannot seem to make the numbers work where there is a positive return. I don't mind breaking even if I have an investment being paid down by others and a place to visit (even if it's in the off season for example: Utah or Colorado in Summer), but I can't justify investing in a place just to say I have a ski condo...it has to make money.

Can anywhere share stories of good and bad fun-location investments they have made to shed light on how they are making money in some of these higher cost towns?  

@Amit M.

Hi Amit, you make a very good point, and provide a great graphic: a picture is really worth a thousand words! As I mentioned to Carlos, I am currently undecided as to whether I plan to stay in the Bay Area for more than 5 or 10 years (I am from the East Coast), and therefore I am not sure if I will be here long enough to enjoy the home appreciation. Some have suggested I could still keep the home and rent it out, but after looking at the numbers it appears rent would not cover the full mortgage (let alone other expenses), and it would be difficult for me to continue to pay Bay Area mortgage prices if I go back to East Coast income. Many things to consider, and I appreciate your insight!

@Matt R. All of this stock nonsense is accompanied with 20/20 hindsight.

@Klint Ruud  Sounds like someone I knew a few years ago. Quite frankly, unless your friend ENJOYS sleepless nights, constant stress and worry, unexpected and excessive expenses I would stay CLEAR of real property.

I own 11 rental properties, four utilized the BRRRR strategy and I pretty much regret every single purchase at this point. not necessarily because these were bad decisions, but rather because I should have just stuck all of my money in a handful of very specific stocks, including the likes of Redfin, Tesla, Nvidia, AMD and Activision. Considering my time horizon, which is 15 to 20 years, I would have been much better off just putting it into these stocks and waiting. Now, I am terrified of checking the mail for fear that there's some other screw up thanks to some moron lender, some idiot insurance agent or some half-wit real estate agent. The only thing holding me back from selling everything is that I'm already in for the long haul.

Building up a real estate empire is a fantastic idea in theory, but in practice unless you're incredibly lucky, you'll be better off putting it in some sort of truly passive investment, like Redfin stock.

I believe MOST people here do not realize how problematic real estate investing can be, the degree to which luck plays, how little is truly within one's control, and how inefficient and illiquid the real estate market is.  Also, real estate is at a tipping point so might not be the best time to buy...

Do you have a consistent method to place a quantitative/intrinsic value on Bitcoin (and therefore margin of safety)? At least with REI, you have a lot of comparables to go by to value the property in question.

First and foremost I’m very uneducated on Bitcoin so my question may sound naive.

I had a client ask me if I know any investors in South Florida who would accept Bitcoin as payment if they helped to finance a deal.

Any thoughts, comments, or guidance is welcome!

Thanks!

And now it’s at 41k. Investors that bought 8 months ago were shrewd and have quintupled their money!

Originally posted by @Matt R.:

Originally posted by @Ross Bowman:

Originally posted by @Justin Thorpe:

The debate on this is meaningless. Those who have missed the boat on the upside are crying for a crash and calling BTC a bubble or a Ponzi scheme or whatever. That’s human nature unfortunately.

 Spot on. Psychologically, it's easier to call for a crash than say "I was wrong". 

Short version: bitcoin is *the best performing asset of the decade*. 10 years is too long for a bubble. Bitcoin also goes in four year cycles, following every halving, which is what happened in May. What we're seeing now isn't speculation - this is math. 

Most bitcoin naysayers just don't understand the above. But a quick YouTube, or documentary, can clear it up. 

It has become dangerous to ignore Bitcoin; you can't fight the signal. 

It is potentially the first new financial asset class to come around in 400 years. Bitcoin is actually multiple things and maybe why it is harder for some old schoolers to get their head around. It is still risky however the math don't lie as you pointed out.

 Yep. And to be honest, once one learns about how halving cycles work, it stops even seeming risky. 

The supply is cut every four years until there are no more bitcoins introduced into circulation. Yes it swings like crazy, but the overall trend is up.