All Forum Posts by: Peter Grosso

Hey Guys, 

I have a old property manager in whose office is giving me the run around on the last months money owed?  What is my recourse? 

@Rosalina Brenda Berk  I wouldn't invest in Detroit without a large amount of cash.  I would say that you need more money for these areas then you do for a "B" property.  Because Detroit property carries more risk you need to spread risk across many properties.   It should be a large investment but the aggressive part of a larger portfolio of investments in my view. 

I started investing in Detroit 2 years ago.  I probably started investing there about a year too early.  I am seeing big changes in the blocks I invested in and my cashflow.  Hopefully the momentum continues.     One major struggle for the city is the cost of car insurance and the weak public transportation. If that began to normalize there will be a real opportunity for growth population outside of the downtown area. 

I had a two family in the 19th , was getting $750 per unit.   I think a nice single would get $900-$1,100.

@Account Closed Never found one, I will this new one though. Thanks and good luck

Hey @Charlie Palmeri  

I'm another Lier here.  This is a great place to find a market to make money.  Good luck!

@Ryan R. ,    The long term trend certainly is more fuel efficiency and accessible oil.  What the market will do with that change can be debated.   Drillers will only drill at a certain price, so supply in the U.S. might fluctuate for a generation.     I know I wouldn't invest in oil drilling again right now, but I wouldn't stop pulling the oil out of the ground that I already drilled (at $20bbl I would).

"But I'm sure we're never going to see $100 anymore. I said a year ago, the price of oil above $100 is artificial. It's not correct." - Prince Alwaleed bin Talal

It has been said that the Prince (and Saudi's) are trying to talk down our oil market.  Much like when Mario Draghi say he will do what it takes to save the Euro.   

I am a oil/gas investor.  

I can tell you that the energy boom has attracted a lot of small operations that not only chasing some great returns at $100 a barrel, but there is also an outdated tax incentive that is incredibly attractive.   Add in low interest rates and there was a bubble building in the market.   

With the new fracking and geological technology getting oil out of the ground is easier and quicker then ever.  The federal Government allows you to write off up to 80% of your investment in the first year.  This was to incentives oil drilling when it was much harder to get it out of the ground.  Now it is just icing on the cake.   Imagine getting 25% of your invest back the first in the form of lower taxes.   At $85 a barrel I was making 15% return plus a one time tax bonus.  Now at $50 a barrel I will make maybe 8% this year(still not bad).  But you can see why people at $100/bbl would be using the low interest rates to leverage up their earnings.  That is when this gets scary, because much like the housing/credit bubble, no one ever thought about prices dropping.    Some investors that took out debt to pay for their investment will be losing money or busting and drilling companies that did the same will be hurting as well.    

Hopefully the price drop wont destroy the US drilling boom (and towns around them), but just bring a little rational thinking to it.  

Hey Michael, 

     I posted this property for my buddy who is losing money on this because of an unfavorable mortgage and a useless partner. I know at least two BPers called him.  I don't know of any offers yet.  

    Thanks for asking Michael.