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  • On 23 Oct 2014 in I'm liquidating all my stocks and going to cash, E-man said:

    At this point, there is a high probability that the correction is over. The intra day low reached 10% correction from the high last week. We also had a follow through day on both the Nasdaq and S&P.

    I'm looking to buy back in when the S&P pulled back to 1,910-1915. Otherwise, I will buy back on the break out at 2,020.

    I'm surprised that the market made a U turn after only a brief 10% correction. Will have to wait and see.

  • On 20 Oct 2014 in Personal loan for down payment questions, E-man said:

    SFace says

    This is silly, get the bank account # and send your old man 20K.

    I second SF ace. This is silly. Just give your dad $20k and sign a gift letter so he can obtain a mortgage. You don't have to file anything with the IRS. They don't have to know. Keep it simple.

  • On 17 Oct 2014 in They are dying because they are poor, E-man said:

    And we are dying because we are obese.

  • On 7 Oct 2014 in Take Father In Law's Offer?, E-man said:

    On The Fence,

    You over-think this. It's not about you. Your FIL is just being respectful by asking you. The reason he is willing to foot the mortgage payments because he wants a better place for his daughter and grand daughter. Eventually, the money will belong to his daughter and grand daughter anyways.

    Since he's footing the bill, he still has total control of the property. However, I would ask him to add your wife's name on the Grant Deed so she can write off the MID and property tax. That should save you guys thousands each year.

    Saving $1,500/month won't get you anywhere in the Bay Area. If you're going to borrow his money for the down payment, how are you going to afford a $1M home with your salary and your savings? There is no way you can pay him back with those numbers.

  • On 1 Oct 2014 in I'm liquidating all my stocks and going to cash, E-man said:

    Heraclitusstudent says

    Funny, how the market eats like a bird, but goes to the toilet like an elephant.

    After going up 150% and now giving back about 4%, you're calling that going to the toilet like an elephant? Your pessimism shows.

  • On 1 Oct 2014 in I'm liquidating all my stocks and going to cash, E-man said:

    Heraclitusstudent says

    I like the optimism on pat net.

    Not sure what you mean. When we're bullish, we say we're bullish. This is only a short-term correction (bearish), but I believe we will take out current high when we're done with this correction. The final exit point for me will be around 2,400-2,500 for the S&P or sometime in 2016.

  • On 1 Oct 2014 in I'm liquidating all my stocks and going to cash, E-man said:

    thunderlips11 says

    I still think the S&P is fairly valued somewhere between 1300-1500. 800 was too low; 2000 is too high.

    I expect the S&P to correct to 1,500 - 1,600. I'll buy back in at 1,600.

  • On 19 Sep 2014 in Zillow, Top 10 markets to buy and sell your house now, E-man said:

    "7. Las Vegas, California"

    I didn't know that Las Vegas was in CA.

  • On 16 Sep 2014 in Thoughts on the Alibaba IPO?, E-man said:

    I'd short it if I had balls of steel. Unfortunately, I'm not this type of gambler. I don't like gambling with a 50/50 chance.

  • On 16 Sep 2014 in Don't fuck with America., E-man said:

    To calm their people down, the Russian authorities should have told their people that the rouble increased against US dollar from $38.32 to $38.71. Let's the spin begin.

  • On 16 Sep 2014 in My first real estate bear thread (ever), E-man said:

    This is what I said
    E-man says

    Too busy building an empire for the next generations.

    and this is your response. Not sure what to make of it.

    hrhjuliet says

    So many people think getting a home and acquiring an "empire" is all that matters and will make them satisfied. Well, I have news for all of you, it's not what matters..........We have lost our way, and the next two generations are paying the price.

    I'm different with you. I see the potential issues. Therefore, I work hard so the next generations don't have to pay the price.

    Imagine if what CDon said below were reality...... Think about the unthinkable for a moment.

    CDon says

    Even worse, imagine your parents had rented and the owner suddenly decided not to rent to your brother anymore.

    Crap happens all the time. If one owned his own house, he has more control of his destiny. Iwog had to move twice because his landlords wanted to sell the house. Reality sucks sometimes, but it is what it is.

    Regardless of what you and anyone want, the market will do what it does. Facing reality and figure out how to outsmart the system is the way to get out to the rat race hell hole.

  • On 16 Sep 2014 in My first real estate bear thread (ever), E-man said:

    hrhjuliet says

    Yeah, thanks E-man for your advice. Your reactions are cute.

    I own and business, a non-profit and I lecture at the university, so don't waste any of your very self-important time worrying over what I contribute.

    Ha! Maybe I should take your advice and try and find some other creative outlet besides choreographing, designing and directing the Bay Area's biggest semiprofessional nonprofit Nutcracker.

    Snicker, snicker. ;-)

    It's still a crap hole. Just because I choose to try and beautify the crap hole does not mean I don't recognize it's a crap hole. On the contrary, I believe in whistling in the dark and decorating your prison.

    I own two businesses my self, but for profit. I was asked to teach engineering at SJSU several times, but I turned it down. Too busy building an empire for the next generations. So what's your point?

    Like I said above, one can get different results with the same effort. It's not what you think, but it's how you think.

    I don't offer advice. I state my observation. Not sure who should be the one snickering.

    A lot of people disagree with you. People don't pay $750k - millions for a house to live in a crap hole. People from all over the world have been sacrificing their lives for a chance to make it to this land of opportunity.

    Every individual is responsible for his/her own destiny. It's our own fault that we are not happy with our life. We only live once. Why go through life with bitterness? If you're not happy in this crap hole, move. If you decide to stick around because of family, make it work but don't use them as an excuse. A lot of people are doing the same thing because they have roots here. However, I don't see they're being bitter about it.

    Crap hole? I beg to differ. Land of opportunity? Hell yeah.

  • On 15 Sep 2014 in My first real estate bear thread (ever), E-man said:

    "But people just keep coming to our crap hole for jobs.

    There are a few people stuck in these hell holes because all of their living family is still in those areas and refuse to leave. They usually refuse to leave because they bought their house for nothing before the nineties and hate change, and well frankly, all their friends and family still live there."

    Juliet,

    Your ranting is hilarious.
    Crap hole? I call it survival.
    Hell holes? Everyone has an obligation to something, and they make it work. Why not you? Instead is spending time ranting, you can use that effort for something for creative.

    Some people spend time to think of ways to SAVE money while others are that time to think of ways to MAKE money. The same effort with different results.

    That's my 2 pennies.

  • On 14 Sep 2014 in Average Profit for a Rental?, E-man said:

    Here you go. Don't let the facts surprise you.

    http://finance.yahoo.com/news/best-cities-mom-pop-landlord-190000702.html;_ylt=AwrTHQ6y_AdU_jEA5Fxx.9w4;_ylu=X3oDMTE0ZXQyZzlwBHNlYwNzcgRwb3MDMQRjb2xvA2dxMQR2dGlkA01PVVMyMDVfMQ--

  • On 12 Sep 2014 in Multiple Streams of Income, E-man said:

    Peter P says

    May I ask how you got into that business?

    I'd say conviction. I have always had a passion for real estate since I graduated back in 1998. When I went to graduate school. My favorite professor said "if you let me look at your night stand, I will tell you what you should do with your life." I went home and looked at my night stand and saw 3 real estate books. The light bulb went off.

    Unfortunately, the numbers didn't add up in 1999-2000. Prices were high and interest rate was around 8%. Even then, I kept on evaluating deals after deals and kept on plugging in numbers into my spreadsheet almost every day all the way up to 2006. It was massive negative cash-flow after negative cash-flow.

    Summer 2008 was when the numbers started to make sense. The numbers were beautiful in 2009. I decided to quit my job to pursue RE full-time. Wife was the only one that was supportive. Every else said I was crazy. To make it memorial, I put in my notice, and my last day of work was on 9/11/2009.

    I planned to establish my track record before going after people with money. Well, the track record was establish, and now people want to invest with me. I'm not quite a private fund manager, but I do manage mine and our investors' real estate assets.

    Along the way, I was introduced to a deep pocket individual, who is now my partner. He has a lot of liquid cash in the bank so banks are bending over backward to earn his business. The old saying is so true. Banks lend money to people that don't need money. So far, we have been able to borrow millions in loans with 3% interest rate from First Republic Bank. The ironic thing is.....my partner doesn't have a job and so do I. They lend based purely on our net worth and the collateral assets.

  • On 11 Sep 2014 in Multiple Streams of Income, E-man said:

    Peter,

    I'll have to get back to you later. I'm going to check out 655 Mariposa Ave in Mountain View now. They want $3M for 9 units. I just check out the location and try to make sense of this deal.

  • On 11 Sep 2014 in Three strikes and gold is out, E-man said:

    Strategist says

    You'll be sorry!

    There is no future in Gold.

    You guys will be living in a parking lot, and I don't mean that $1 million parking spot in Manhattan.

    LOL! That was hilarious. $800 was my guess. I'm not a gold bug. I don't intend to buy any of it.

  • On 11 Sep 2014 in Three strikes and gold is out, E-man said:

    $800/oz. Here I come.

  • On 11 Sep 2014 in Multiple Streams of Income, E-man said:

    Peter P says

    E-man, how is the hard-money loan market right now?

    Flipping may be difficult with such low inventory level.

    BTW, be very careful with any fund manager. See if there can be some claw back arrangements with the incentive fees. 100% return this quarter and -100% next quarter will make him very rich and you quite a bit less rich. :-)

    Not investment advice

    Hard money loan is slow due to the lack of inventory. A lot of money chasing less deals has been the case for months now.

    Flipping is a job, and the competition for deals is fierce. There are no deals at the courthouse steps now. The money is being made in buying 2/1 houses and making them into 3/2 or 4/3 houses. This proves my point that it's a job.

    I have been syndicating deals and making $15k to $25k/deal. That was the reason why I put everything else on the back burner. Therefore, I'm looking for something passive, and that is why I'm looking at a fund manager.

    I have a friend, who is a fund manager. He has been doing it for a living for a long long time. He and some of his investors got burned during the downturn. Fortunately, they were able to recoup the money during this upturn. I haven't been investing with him because I was able to make much much higher returns elsewhere. Now that ship has sailed, I'm open to all options that can generate passive income.

    Really appreciation for the warning. It's definitely not risk free.

  • On 10 Sep 2014 in Multiple Streams of Income, E-man said:

    Peter,

    Here are where most of my incomes are from

    1) wife's W-2 :-)
    2) rental income
    3) real estate syndications
    4) real estate referrals
    5) LLC's (I'm one of the owners of 2 apartment bldgs in downtown SJ)
    6) hard money loans
    7) property management
    8) dividends from mREITs and dividend stocks

    Here are a couple of options I'm considering right now.

    9) give money to a fund manager with 10% preferred returns. Anything above that will be split 50/50.
    10) get back into flipping.
    11) buying tax liens are a long shot right now.

  • On 8 Sep 2014 in Why your house is a terrible investment, E-man said:

    JH says

    The 2005-like conversations are nauseating. I don't know why I feel compelled to counter all the bulls. But I feel like I have seen this exact thing in my lifetime...just 10 years ago. "It's different this time." All the buzzwords are on the table. Don't worry guys, when the house of cards falls, you won't be vomiting in your mouth everytime you see a new post on patnet.

    Actually, this is not quite 2005 yet IMO. I believe we're closer to 2003. I'm not sure which bulls you should counter to because we have been very consistent with our thesis.

    As mentioned here before, there's a high probability that some of us, who you consider are bulls, will start doing some liquidation next year, but the ideal year to liquidate is 2016. We also mentioned that we believe 2017 is the top of the market.

    You might be right, and we might be right. It's too early to tell. If you go back to threads from 2009-2011, Iwog called the bottom of the housing market, and a lot of bears argued with him. So far, +1 for Iwog and -1 for the bears.

  • On 7 Sep 2014 in Minimum wage increase in Los Angeles (Yay or Nay?), E-man said:

    Fort Wayne,

    I'm a yay on this. Business owners will have to increase their fees and prices to make up for it. In the short-term, it may hurt their bottom line. After a couple of years, everything will be back to normal.

    Fortunately, I'm a landlord who have 30-year fixed mortgages. Inflation is very good for my bottom line. The workers get a raise, I get a raise while my mortgages stay the same. I call it like it is. Unlike others, I don't do lip service for a living. I hope other cities will follow suit shortly after yours. Yay!!! :-)

  • On 7 Sep 2014 in Why your house is a terrible investment, E-man said:

    B.A.C.A.H. says

    Dude,

    Your rant says more about you than it says about me.

    Thanks for sharing your True Colors!

    What color is that? You're the one who is having issue with where people choose to buy and live. You're the one that's having problem with what type of cars people drive. Everything is about face to you. Could it be that you're having a self-esteem issue?

    Unlike you, I couldn't careless where people want to live or car they drive. I don't give a damn what people think of me and where I live.

    The reason people are on Patnet is because they want to know about where we are in the cycle of the housing market. You didn't see the bottom and gave a lot of bad advice through out the years. The same goes for Thomaswong. I respect you two because you two were older. But giving bad advice is.....well, bad advice. It's so true that respect must be earned. It cannot be given. Lesson learned.

    I talk to other folks in their 60's and 70's on a regular basis because I don't have a JOB. Some are real estate investors themselves. They give a perspective about the Bay Area since the 60's and 70's. They acknowledge the change and understand why housing prices are where they are. On the other hand, it seems like you and Thomaswong are still living in the past and not receptive to change. Hope and change are what get people out of bed everyday. Fear is what keeps us from getting what we want.

    What I have learned is that HOW you think matters. Fear and self doubt are real. However, don't be afraid of them. Respect them, keep going and move past them. Fear and doubt can be bridged with knowledge and insight. People who KNOW this are those who have crossed that river and are standing on the other side.

    Since you and Thomas were older, I thought you two would be much wiser, and I could learn from you two. Unfortunately, wisdom doesn't always come with age for everyone. Another lesson learned for me.

    I guess I should try to learn from those that have succeeded in the real estate investment arena in the Bay Area instead of listening to two old guys, who even though grew up here, didn't have the foresight and are stuck in the past. Like they said, your attitude determines your altitude. People are where they are in life for a reason.

    Good luck to you and Thomas.

  • On 5 Sep 2014 in $15 minimum wage actually creates jobs, E-man said:

    And inflation too. That's great news for landlords. Isn't that right iwog? I'd say bring it on.

  • On 4 Sep 2014 in Why your house is a terrible investment, E-man said:

    B.A.C.A.H. says

    See what I mean?, this web site's become all about face, keeping face, making face, losing face, "in your face".

    This fella, who doesn't know me, knows what I didn't do ("didn't recognize"),

    knows how I feel ("bitter"),

    shoulda done ("Had you made"),

    knows what I coulda been doing ("you guys would be sitting pretty"),

    knows what someone else woulda done ("Had

    Patrick bought in Menlo Park ").

    Welcome to his smarty pants world.

    Welcome to what has become of Patrick's website.

    Welcome to what has become of the Bay Area.

    That has always been your theme. Everything is about face to you. Your co-workers bought houses in the Fortress, you believe they bought them to save face. Your co-workers drive nice cars, you believe they bought them to save face. Has it ever occur to you that they bought in the Fortress because of better schools? Have you ever considered they drive a nice car because it's much more sturdy than a Civic or your Camry?

    People have different priorities in life. You made a choice to buy in East San Jose and was bitter about it when it lost a lot of its value during the downturn while their houses held up in value much better. I don't know if you're bitter that they look down on you because of where you live, but I couldn't careless about other people's opinion. If you have a problem with that, that's your issue.

    Apparently, Thomaswong also lied about his purchase in Los Gatos back in the early 90's. Could it be that he tried to "save face" by saying he bought there? Hmm..................... Not sure who are the ones trying to save face here.

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