In case you can't find it Terri Tanna...here it is again...<quoted text>
...this class is still waiting on you grandma. What do you want to discuss next after you answer my last few post directed to you?
The time value of money? The internal rate of return? The present vs future value of money? What??
...or are you still ducking my real life questions to you about the $2.7 million I made on one deal? The class is waiting...for you!
Terri Tanna wrote:
Actually, there is only one universally accepted approach to equity investing. There may be variations on it, but the core principles are universally accepted: stock prices cannot be predicted, in an efficient market (the U.S. equities market) all information is instantaneously incorporated, the value of an equity is the present value of its discounted future earnings (about which there may be considerable uncertainty, it is unlikely that any professional manager can outperform The Market over time when consideration is given to beta, tax consequences, and transactions costs.
Can you say it any better?
Guru's response to the above...
You probably can't but I can. I was gone for the debates, but am back now. Now lets get down to it.
1. Real estate investing just kills stocks. No matter how you look at it. Now, having said that, the stock pundits like yourself like to tout returns. But they never look at the costs. Stocks pay full price, taxes are huge on your returns, and you are subject to massive attacks via real time fluctuations that are out of your control. RE just mangles stocks in that effort. Case in point. Just one of many, and my own experience just completed:
100 unit apt building: cost to me $625K. Repair, fix up $150,000. Resale: just under $2Million. Cash flow over $1.5Million. Numerous tax advantages and protection. All cash, 1031 exchange, all taxes deferred. NO TAXES due. The list goes on and on.
Strategy: there are 4 "markets" in real estate. Cycles, stages if you will:
I invest for income, cash flow, tax write offs, appreciation in stage 4. I invest for location in any of the cycles. The above example is an investment in stage 3/4. It covered two blocks in eight buildings. It was split off from the other side of the development right next to it and constructed of larger units that had more problems, much higher expenses. I did this with none of my own money. The result was a great return, infinity if you will less opportunity costs whi8ch cannot be measured. However, it generated 4 different purchases, all cash in some cases, also in the same stage of that economy. All cash flow, all equity, all tax advantaged, and stocks could never touch my returns that in terms of return: mine was not 10%, not 100%, not 1,000. It was infinity.
...again, arguing about writers is boring. Let's talk real time investments, and we will let the class decide on who is real, who makes deals and money, and who is doing the cut and pastes on things which hardly matter now.
...the class awaits your response.