Caleb Yamanaka's Discussions

If buying gives you positive cash flow, with ALL expenses taken into consideration.... Id say go for it... and have fun being a land lord. Partially agree.  Although, positive cash flow doesn't equal solid investment, I keep coming back to overall yield, but you have to have a set of guidlines and adhere to them.  One being what is the return that you want to recieve on your investment.  If you buy a home that gives you positivie cash flow, but only a return of 2% on your investment, it would be better to put your money into a CD.  RE is like any other investment.  What is your required yield?  What is the projected yield of the property?  Positive Cash flow is good, but just because its positive doesn't make the investment right.  You must go further in your analysis before investing in any property.

You must go further in your analysis before investing in any property. I didn't mean "You" - Corona.  Rather I mean't "in general" we must all go further in our analysis before investing.

Corona,I agree.  If that meets your goals then at the end of the day it is a success.  If you are a long term hold you can always control your disposition of the property, as well.

by the way for all the Kiyosaki fans I live in Hilo, Hawaii... Kiyosaki's hometown.  I think my dad knows his poor dad.

I would walk away.  Bank probably has multiple offers, but in this market you do not want to get into a highest bid situation.  You want the bank to want to make a deal with you.

Leverage is very good in an upward trending market, but in a prolonged downward trend or recession you will se many of these high flyers falling flat when their shorter term commercial loans come due.  There is a reason that you will find subdivisions that developers are walking away from in Las Vegas or cap rates rising in Hawaii.  All those buyers out there that bought commercial at 5-6% caps will be in big trouble in the next few years when they are upside down having to refinance at 7% or higher.  Leverage works both ways.   

sorry.  missed part where brianandcourtney said "residential".  still,  what kind of return are you seeing on your residential rents?

As long as you have a plan.  Now just implement it and let the chips fall where they may.

I would like to know what the pros and cons are of Keller Williams?  What makes them different in the Real Estate world? 

I have to back the Lender's on this.  They are not forcing anybody to sign on the dotted line.  It works both ways.  If a lender is willing to put a bad loan out there and someone is willing to take it, then let what may be, happen.  Everyone needs to look in the mirror and make the decision for themselves. I've told many a client to not buy, because it was reaching, but not every person listens, and I'm not always right.