All Forum Posts by: Samuel Santa
Samuel Santa has started 1 posts and replied 2 times.
Post: Another (motivated) new member.
- Benidorm, Alicante
- Posts 2
- Votes 0
Thanks four your messages!
Watching the interview of @Brandon Turner with Brian Burke who comments he survived to the crisis in 2008 because he just a flipper made me think about the risky side of REI.
Lets say someone is good at REI and buy 8 properties which generates 400$ dollars per month after all expenses. All of the acquisition were made with the typical morgage 4.5% interest 30 years of amortization. It seems as a safe and good plan in long term... but what would happen if the economy cracks again (I dont see the economy such an stable thing nowadays) a % of people loses their jobs, the vacancy rate rises, and the values of the property goes down and you still have a big portion of your mortgage to pay?
When someone does buy and hold how could the exit be managed especially with big portfolios in order to avoid big economy drops that may be occur during those 30 years?
Basically where I go is.. Is it not too risky having a big leverage for 30 years? How can you protect yourself from this? Is it standard having a good amount in cash as a back up?
Sorry if the questions im dropping here are too obvious, It is just the thought of a newbie lol.
Cheers!
Post: Another (motivated) new member.
- Benidorm, Alicante
- Posts 2
- Votes 0
Hello everyone!
My name is Sam, 28, from Spain. I am professional online poker player but I have had REI in consideration a few years already. Since I have been playing for a while and the industry is getting smaller due to regulations which reduces the traffic and the number of recreational players (which makes the game less profitable) I think is the moment to start transitioning to Real Estate.
I am literally devorating everything in BP, just bought the 2 books of Brandon Turner (hey Brundon if you read this just let you know that I love the way you explain and the methods of teaching you follow, I really find them effective for newbies like me) so I will be trying to educate myself in RE as much as I can in order to be succesful in the future.
If there is someone out there who is also starting in RE, in spanish market and want to connect me to talk about whatever or just for future networking, dont hesitate to do it!
Cheers!
Sam.