All Forum Posts by: Robert Warren

@Steve Olafson

You are right this bubble will burst in a different way but will be devastating for a large number of people just the same.

The Fed blew this current bubble directly into the Equity and Bond markets.  Investors felt it first and have benefited the most.  Now that the Equities feel very top heavy and ready for a big correction we are seeing money move to other sectors such as RE.  When the inevitable happens, commodities promise to benefit due to their cyclic nature and the fact that as equities rose, commodities have been pruned to become lean and mean.  Witness the drop in oil prices.  The weak will certainly be washed out of the market and low prices can only mean one thing, they will inevitable rise.  Just like high priced RE markets mean one thing, they will inevitably take a hit.

Watch out for the bursting bond bubble that will hit RE the hardest.

@Marc Cunningham

Thanks for the heads up.

@David Krulac

Thank you, short and to the point.

Yes, if the rental is owned by an LLC the LLC is the landlord so you would put the name and address of the LLC on the lease and all other papers associated with the property. Make sure to transfer the title documents into the LLC and have an operating agreement that accommodates what you want to do.

@Jon Holdman

I agree with you. LLC doesnt change taxes and is very useful for asset protection. If all of your properties are held in separate LLCs and separation is real, ie separate bank accounts etc. Then liability on one is separate from the others. Lose a suit on one property and all of the other properties are untouched.

The current bubbles are not in real estate.  I see the bubbles in the following markets:

1. Equities Market - the stock market is due for a typical 50% correction and maybe more to return the average PE ratio to under 7. It is now pushing 30.

2. Bond Market - bonds are  way over priced and interest rates are way under historical averages.  As the bond market collapses look for higher mortgage rates.

--

I see inflation moving from these markets into the main economy.  I see that these markets have been artificially inflated due to the massive money printing.  As the inflation moves into the general economy RE prices will tend to rise but as the mortgage rates rise prices will tend to go down. 

General inflation will push commodity prices up and make building and repairs more expensive.

This will all be very turbulent and investors should anticipate price volatility and concentrate on learning all you can about your local market.

@Austin Faux

I believe in self review.  I use standard contracts and then read them very carefully.

1. An attorney can't review a contract to the level that I would expect unless I shell out the big bucks.

2 She can endorse a contract that she has put together or that is standard and widely used.

In the second case what do I need the attorney for?  The contracts are standard.

If I want to add or subtract something from the standard then I would have an attorney review it.

@Bill S.

I agree with Bill the front range of Colorado economy is based on much more than energy.  However, without any real data, it seems to me that the economy along the I-70 corridor to Grand Junction has been mostly about energy.  I expect to see some good deals in this area soon.

I wouldn't bet that the energy prices will stay down for long.  It looks to me like the dollar is topping, energy and other commodities are bottoming, and the stock market will be making a swan dive in the coming months.

@Jon Holdman

One of the biggest expenses for developing fracked wells in shale is the pipelines.  The expenses go up a lot as the development moves away from existing pipelines.

The issue with production collapse is very different from conventional wells.  Conventional wells produce for decades without the need of more capital expenses.  Fracked wells produce for 2 to 3 years and then need more capital outlays.

On the other hand, MJ is a growing business and renting out MJ friendly property is a nitch market that some investors may want to look into.