Hello all, hope you all had a great Christmas and New Year!!
My question today is whether to swap one hard asset for another…Let me explain. I have been out of work for almost a year now. Luckily i am a pretty responsible individual and had plenty in savings to be able to get through this time period. I did not want to just go back to a normal “job” so i have been taking my time figuring out what to do. So a few weeks ago i spent a weekend at one of my best friends’ vacations homes. My friend is a succesful real estate investor. He was asking if i would be interested in getting into the real estate game, since he knew i was struggling with figuring out what i wanted to do. My friend has been doing real estate for about 9 years and has done over 60 deals in those 9 years so i don’t want you to think he is some rookie that just got “lucky” on a deal or 2. He weathered the storm in ’08 crash and still came out on top so i trust him and his judgement immensly. Bottomline, he knows his S&%T. He said he would show me the ropes, kinda hold my hand through the process and i could do a deal with as little as $20,000 upfront. I have some cash readily available but In order to have the full 20k, i would need to sell about 400 oz’s of my roughly 1200 oz stack. I am in NO WAY looking to “cash out” or anything like that, i am still GUNG HO BULL in silver and will continue to stack. Im just curious if you guys think its wise to sell 400 oz’s to get in the real estate game and perhaps start doing something that could potentially change my life forever?? Please let me know any thoughts you may have and as always, your input is greatly appreciated. Thanks in advance
Silverking, investing is not for the feint of heart, and Real Estate certainly has its ups and downs. But for some reason, selling out a third of a solid investment for one of more risk – this reminds me of that old algebra problem in which you are on a bridge and a train is coming. You need to decide whether to run towards the train, or run away from it , and if you make the wrong decision it will plow right over you.
Being in Real Estate I for one wouldn’t do it unless you got one heck off a deal. That being said, real estate IMO is still dropping, yes properties are selling but for about half off what people paid for them and there are lots of Forclosure still being held back by the banks. When those properties hit the market then watch out. Don’t let the housing figures fool you they are also cooked up.
The rental market is some what doggy also as you would have to take care of your properties yourself if you cant afford to manage them out. Then there are those troublesome tennants that don’t pay their rent and the law is on their side. It sucks.
I for one will be keeping my stack and wait for the chance to buy for a lot less than 400 oz’s in the near future as I’m holding my stack for Survival and a piece of real estate isn’t going to help me any if or when TSHTF. Just My Two Cents
SK 16 Is the $20,000 the total purchase price or a down payment. What is the price of the property and will you need financing? Leverage is a two way sword. A low priced quick flipper is another matter entirely. High leverage on a residential unit usually has such high overhead, maintenance and debt service it can have a negative cash flow. If you dont have income to shelter with a property that loses money each month, that goes to waste. I have not seen too many properties bought in a rough economic period that produced a net positive cash flow in the first year
There’s a lot to consider. Firstly your relationship with your mate, the golden rule is usually no business with family or friends, can your relationship hold up to something going wrong and it heading south ?
Obviously in every area of investment even when the sector is in trouble there are shining lights of promise but if YOU don’t know what you are doing, don’t do it. Like these “investors” who buy Silver then get on Silver Forums and whinge about the price doing nothing because they don’t know why they are in or what the true reason for holding Silver is.
Housing realestate in general takes a huge hit in a tanking economy so if it’s residential you are looking at can you survive he hit if a bank holiday occurs after you sign on the dotted line ?
Agricultural land is another thing, during times of economic upheaval rural land apreciates with PM’s in some cases performs much better.
400oz is a lot to risk I know how hard or long it has taken me to gather the approximate 1500oz we have and to risk 1/3 of that for a bet is nowhere on my radar at the moment.
Good luck bud, keep stackin : )
Sounds tricky. How long would a deal take you? As a stacker you need to be sure you can buy back more silver. Says the deal takes half a year and silver goes to $45 in that time, it must be a heck of a deal. And real estate is the least sought after asset in times of hardship, isn’t it? I’d go for something that always keeps value and output, like a farm or something.
Real estate is my current FINAL exit plan. I’m all-in silver, and the plan has changed, from swapping to gold some day and taking it to my testament, or financing future kids’ proper education.
Time horizon is 5-15 years, for silver to peak against real estate somewhere in the world. My current dream is a piece of land that preferably is already a decent vineyard. Else, good land for growing crops would be fine also, I just like my wine right now, and it seems there will always be demand for that. Also, I’d use part of the land for a factory of sorts, where manpower is turned into sellable goods and/or services.
Real estate prices move differently everywhere. Silver prices are global. So once silver has gone 5x or from now, lets say $150 as long as it’s also €120 and plenty of CHF and CHY, I’ll need to look where the properties are most agreeable. I like Eastern Europe right now (wine and snow in one place, I am a snow fanatic), but the same can be said for Italy, Austria, Romania, Greece, etc.
According to my knowledge, investing in real estate business is varies from one period to another period, It’s mainly depend upon the market value. Real estate is one of the fastest developing business in present days. Many of them are take it as a part time job and success in it.
" If you don't have to sell, don't sell. Tuck it away and forget about it, just don't forget where it is!
I will have to get the wife over the hump but think that either a monster box of silver or equivalent in gold is going to be the right move here shortly. We've been saving, and now at the ... "Reply To: My Faith in Silver is Just About Broken
" I picked up a few semi-numismatic coins a couple of days ago. Did not have any of them in my stack so I wanted to round it out a bit with a few of the prettier coins. I am still a fairly young guy at 35 so I am keeping my glass half full. I am certainly discouraged but I do believe that eventuall... "Reply To: My Faith in Silver is Just About Broken
" Shortwave ham frequencies provide worldwide communications daily. VHF/UHF has its place in local comms. No morse code to get a license anymore. Doesn't hurt to know it tho because it will get thru jamming and interference voice can't. All my antennas are emp grounded, it is called lightning prot... "Reply To: Ham radio
" PS: GROUND your EMP Shielding, that cannot hurt and likely helps.
I bet MaryB already has though LOL!
Is Morse Code still part of the HAM License?
They cannot really shut down the frequencies, but may attempt to jam them.
But more likely they will monitor these channels.
... "Reply To: Ham radio
" There goes the idea that I could get in cheaply! I knew that was too easy.
Would I be able to contact anyone worldwide? That was my thought going with this idea in the first place. What's the point in buying one if it doesn't go worldwide? I thought they all had global abilities. I may ha... "Reply To: Ham radio
" I have thought about this. If it is not in the US, it is a risk IMO.
Even in the US, it could still be seized in a bank holiday. hard to say
Thanks for perspective, Mammoth "Reply To: Chinese yuan bank account
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