Home Forum Contact Create an Account Sign In Create a Trust

Buy vs Rent, this is a must read for members

Home Forums Advanced Training Board (OCS and Ruby Members) OCS Training Discussion Forum Buy vs Rent, this is a must read for members

This topic contains 5 replies, has 0 voices, and was last updated by Avatar of scott_l._moyes scott_l._moyes 8 years, 12 months ago.

Viewing 7 posts - 1 through 7 (of 7 total)
  • Author
    Posts
  • #6522

    What I’d like to do with this thread is start some dialog on this subject as it relates to the EHTrust System. Please read the following article and post your comments and observations. I have my own and will hold on to them for a while. I’d like to hear our members take on things. Don’t be shy, fire away.

    http://finance.yahoo.com/real-estate/article/111307/make-money-in-2011-your-home

    I also found some interesting comments below the article so I’d like you to read as many of those too. It is interesting what others have to say that don’t know about the EHTrust System.

    #33052
    Avatar of dave salcido
    dave salcido
    Member

    I’m sorry to admit this 35 years after the fact but I can only say that even though my parents are saints, they lacked much in the way of current events, finance and economics. They are definitely old school. They have always advised me that the secret to success was to graduate from college, get a job with a big company, get married, buy a house, have 1.5 kids, make payments for 30 years and retire from the same job after 45 years. Forgive me Mom, but I didn’t get close to any of that.

    I did, however, buy a house, but now looking back, even that may have been a mistake. My favorite economist, Sal Khan is probably shaking his head in frustration at my decision making inefficiency. Consider some mathematical logic in favor of renting: http://www.youtube.com/watch?v=YL10H_EcB-E.

    Lesson learned: from a profit/loss perspective, renting perhaps may be better than owning, but I know something even Sal doesn’t; “controlling” is probably ALWAYS better than renting OR owning. Bottom line; whether you control property for the purposes of occupancy or for investment, I can say this with 100% confidence……hip hip hooray for the Equity Holding Trust!

    #33053
    Avatar of corkhorner
    corkhorner
    Participant

    go team go.

    Tony Alvarez on FB, Palmdale King is very knowledgeable and posts lotsa goodies on his site.

    a latest article was about an economist guru who writes about the failure of the banking system….scary S..t to say the least.

    One of his visions is the banks becoming the largest REITS…..that almost a parallel to your ‘experiment’ Mr Dave.

    As to owning/renting that’s more an ego trip. I buy, hold, flip u-name-it and I rent ‘posh quarters’ renting far less than owning.

    Maybe with the ‘right leverage’ via RB status it will be an advangage in the current meltdown. It is farrrrr from over, in my view.

    Ok Dave/Scott—-let er Rip.

    c h
    San Diego
    where chicken coops still cost 100k.
    Blue collar housing 300-400k. Go figure.

    #33054
    Avatar of areyes
    areyes
    Member

    @Dave Salcido wrote:

    I did, however, buy a house, but now looking back, even that may have been a mistake. My favorite economist, Sal Khan is probably shaking his head in frustration at my decision making inefficiency. Consider some mathematical logic in favor of renting: http://www.youtube.com/watch?v=YL10H_EcB-E.

    i watched part 1 and 2 of sal’s presentation and majority of the comments were educational and some were funny because some arguments weren’t covered.

    here’s one comment that stood out by REALSLATER
    i “bought” a beautiful home in se MI in 2000, i was 20yrs old. i was a roofing contractor. i “bought” the home for $180k with 10k down. i made my payments and improved the home with close to 100k and 4 yrs later the home appraised for 450k! 1 yr later i couldn’t sell the home for the 180k i still owed so we had to??? pack what we could and leave. 5yrs later i’m a happy renter and will never assume that kind of debt again. you’ll see exactly what you “own” when you can’t make the payments! great vid

    #33055
    Avatar of corkhorner
    corkhorner
    Participant

    The Kenny Rogers song applies to real estate cycles….’ya gotta know when to hold….’

    Sometimes–it’s prudent to cash out or bail.

    #33056
    Avatar of scott
    scott
    Member

    EHT is kind of like partway between rent and buy. If I was to find a new place to live that was still in a downward trend area I would use the lease. After the market has turned to an upward trend I would buy from the trust.

    #33057
    Avatar of jehutch
    jehutch
    Member

    Still asking myself that question. When I purchased a house in Texas while I was on active duty with the Air Force, I thought it was great. Then when I got relocated to Florida, I couldn’t give the house away. Had three sets of renters over 5 years and I just was able to break even. Then in 2009 we put the house in a NARS EHT with an RB and have had so far a positive cash flow and no landlord problems. Would I do it again…………..? Don’t know.
    Would I like to sell the house I currently have in Missouri? Yes – but the boss won’t let me.

    Read the article and the comments. Talk is cheap and is still probably money wasted or at a minimum misdirected. Still too much of a novice to add any real wisdom to the “argument” so I will bow out and wait for Scott and Dave to add their words of wisdom and experience.

Viewing 7 posts - 1 through 7 (of 7 total)

You must be logged in to reply to this topic.

Posted in
Contact Form
Your Fullname:


Email Address:


Phone:


Best Time to Call:


Subject:


Your Message:


Security Code:

 

Can't read the above security code? Refresh