01-20-26 carib
SPAL: I think your RE business model is fully viable.
It's just not exportable everywhere, and that is fine, because niches can more easily go undetected.
We should aim for the exceptions, rather than the rule. |
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01-19-26 savo
| El mercado paralelo venezolano acaba de vivir una de sus correcciones mas brutales en años. En apenas dos semanas, el USDT pasó del umbral de los 900 bolívares el 7 de enero a cotizar alrededor de 450 bolívares al cierre de esta semana, una caída de casi 40% que dejó a traders, ahorristas y analistas preguntándose si esto es el inicio de una estabilización real o solo un respiro momentáneo. |
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01-19-26 spal
WI REIT
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I am unaware of any strictly regional (WI) REITS although I am sure they could be found.
I don't see these are (being in RE) rather as investment schemes connected to RE. There are many other considerations ... many with downsides. |
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01-19-26 spal
I am sure that you are getting a good return, but it is more the result of your professional dedication than pure rent.
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yes - I run it as a business.
I tend to think about rent as clipping coupons while you do not work.
Is a WY REIT a good investment nowadays?
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This is not comparable to what I do at all - although many still want to compare it. I have actual argued with professional investors about this. I just ignore them nowadays. |
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01-19-26 amateur
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01-19-26 spal
| The 1031 mechanism is very common. The trust mechanism is used by from average joes (me) to very large corporate style investors. |
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01-19-26 amateur
Spal, the rise to market works only for persons, not for corporate entities I believe.
I am sure that you are getting a good return, but it is more the result of your professional dedication than pure rent. I tend to think about rent as clipping coupons while you do not work.
Is a WY REIT a good investment nowadays? |
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01-19-26 spal
Yes, rent controls are part of the scene, too, the us had them for ages, and seem to be coming back, NY marxist-populists are not so different from DT in this area.
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Yes - avoid these areas or switch to slum lord mode (both can work).
Beleive it or not in RE you really need to understand your own strategy - it is NOT something you can just walk into.
Admi cost is there, if you do it personally you should be paying yourself a salary, and a very good one indeed 😆
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It is reasonable ... ;)
Now the matter is 100% local, many areas may be nice value. Today.
But the destitute voting masses are increasingly finding politicians that promise to subsidize them by squeezing the rich and the corporations...and the landlords.
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Yes - but you can plan around this - mostly. Nothing is without risk. But in general my rents lag the average on purpose and my properties are preferred (I think) I have numerous tenants who move from one of my places to another. Having good tenants and good relationships with them is one of the keys to doing this. I trust this makes sense.
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01-19-26 spal
is written up to CURRENT market value - in the hands of the heirs.
Say the buildings are worth $5 million. Say the tax basis is $1 million. The gain is $4 million and the capital gains tax at the Fed and state level would be 40% times $4 million or $1.6 million.
But since my properties are in a revocable living trust when it is triggered the tax basis of the properties that are transferred from the grantor(s) to the beneficiaries becomes $5 million.
This 5 million of market value minus $5 million of basis ... gain is zero.
This is the point of 1031's and the trust structure.
In the meantime the trust is a "pass through" to me and I retain additional RE Investor related benefits.
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01-19-26 spal
Spal, RE is taxed locally first, with RE taxes.
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Yes - not sure what your point his here though? Are you saying this is an extra layer of taxes (beyond say state and federal?). I think you are - but every RE investor I know including myself passes this tax on. It is a pass-through.
And the the rent is taxable, and the amortization is over non-adjusted costs.
True that you defer income tax with amortizations, but it catches you eventually.
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When I was talking about gains I was talking about CAPITAL gains regardless of depreciation recapture.
Can we agree that these are differnt things? And yes depreciation can catches up as the tax basis must be written down.
But the best thing to do would be to study how 1031's work. I do these. What this does is roll the estisting tax basis into another "larger" building. The incremental increase can be depreciated again. Then you do another 1031.
Then when you die the the existing tax basis ... that is now very low because it reflects BOTH the accumulated depreciation of a chain of buildings and market appreciation ... is written up to CURRENT market value.
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Selling and reinvesting adds more deferral, but are not very useful for the small guys.
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I do it ...
In many big cities in the US, RE taxes have become income tax really, much above any reasonable costs for schools and police.
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Maybe so, but all RE is local (that is a mantra in the business for a reason) and this is NOT the case where I operate.
Also if it was again it would be a pass-through.
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01-19-26 amateur
Yes, rent controls are part of the scene, too, the us had them for ages, and seem to be coming back, NY marxist-populists are not so different from DT in this area.
Admi cost is there, if you do it personally you should be paying yourself a salary, and a very good one indeed 😆
Now the matter is 100% local, many areas may be nice value. Today.
But the destitute voting masses are increasingly finding politicians that promise to subsidize them by squeezing the rich and the corporations...and the landlords. |
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01-19-26 amateur
Spal, RE is taxed locally first, with RE taxes.
And the the rent is taxable, and the amortization is over non-adjusted costs.
True that you defer income tax with amortizations, but it catches you eventually.
Selling and reinvesting adds more deferral, but are not very useful for the small guys.
In many big cities in the US, RE taxes have become income tax really, much above any reasonable costs for schools and police. |
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01-19-26 patient-trader
So far, Trump was all fun and games. But that seems to be over. He seems to be in self-destruction mode. His ideas and fixations have become so nuts that his allies and friends start to desert him. I think the party is over.
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01-19-26 carib
| Now that Nicolas Maduro has been ousted, investors should again keep an eye on Venezuela, Mobius wrote on his blog on Jan. 19. He himself considers this market attractive. As hyperinflation and devaluation of the national currency encouraged people to invest in the stock market, the main index of the stock exchange in Caracas showed "tremendous growth in bolivars," and in some periods provided returns in U.S. dollars as well, Mobius wrote. |
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01-19-26 carib
| I guess the UK government waits for a legitimate, recognised Veny Government. |
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01-19-26 carib
Danish pension funds were one of the first to repatriate money and reduce their dollar exposure this time last year. With USD exposure still very elevated across Europe, developments over the last few days have potential to further encourage dollar rebalancing.
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01-19-26 savo
thieves
El Banco de Inglaterra custodia actualmente 31 toneladas de barras de oro que pertenecen al Estado venezolano en sus bóvedas subterráneas. Estas reservas alcanzan hoy un valor estimado de 4.000 millones de dólares, pero el Gobierno británico persiste en su negativa de devolverlas tras un extenso proceso legal. |
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01-19-26 savo
Wall Street satanists spent the whole Friday smashing silver..only for it to come back all the way and more today
up 4.5% |
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01-19-26 spal
I much preferred the "old world".
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It worked for some people and spectacularly well in some cases. |
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01-19-26 spal
| I guess you can save "rocks" and "stones" and "gold" ... but we'd need a needlessly more complex and boreing discussion. I stick to my point on "savings" and "debt" ... which equals "trust" and "belief" ... |
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01-19-26 spal
You can not have "savings" without "debt".
What matter is if you have saved for a good reason or not.
Productivity and technical advanacment have never been greater in the history of the world. I think this matters.
Concerning GDP and government spending - again the same thing applies within the identity. Was it "good spnding" or not ... Also GDP itself is a flawed mirror in my view. |
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01-19-26 carib
SPAL: the picture you paint brings water to Savo's mill.
Political circumstances, however, can change rapidly.
I much preferred the "old world". |
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01-19-26 savo
spal.. i concur with most of what you say except on two things:
a) assets and debt are not an identity for the market. Assets are assets ..debt is debt and they can be very different.. particularly if the assets are unable to service the debt.
b) GDP is an identity... so any government spending "creates" gdp. That does not make the country any more solvent.
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01-19-26 spal
Economic State Craft.
(c) copywrited by the Colores. |
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01-19-26 spal
Savo - the government debt is also an asset. The bigger it is the more assets there are. It is an accounting identity. The debt is simply a dialogue between debtors and creditors.
The US is moving towards a military command economy ... there is similarities with China, but China is way more indebted (internally).
The US goernment will take formal (it has defacto already) control of rates. This ensures better alignment between the military command economy and the "markets".
The military budget will be increased dramatically - you will see this in all sorts of ways.
This will boost GDP substantially.
This will also engage subtantial reshoring. The plan includes a coordinated major lift in US and Latin American coordination. Maduro is simply Act 1.
The global order has is now putting to bed "neo-liberalism" and in 20 years this will be a historical fact. The game has now shifted to econonomic state craft.
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01-19-26 savo
merlino... For a state to be bankrupt I guess it is necessary to have negative equity
i would say it is simpler than that...a country is broke when it needs perpetual central bank QE irrespective of its tax base or the assets that might have.
But the US does not need to be in this situation. It is because its political calss choose to be in it.
If the US would take certain tough decisions it could get out of the mess it is in very rapidly. |
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01-19-26 savo
carib.. you do remember that when subprime exploded Bernanke said: "it is contained". You know how that one ended.
The US is not broke as subprime was contained.
With debt above 100% of GDP...a budget deficit of 50% of income...a president desperately asking for lower rates in an economy supposedly according to him in the best shape it has ever been... the central bank in QE mode and the rest of the world dumping USTs and buying precious metals... the military spending as if there is not tomorrow... i think .. as they say... the writing is on the wall... and the ones writing it on the wall are precious metals buyers. |
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01-19-26 carib
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01-19-26 carib
| Savo: I an too old to understand Trumpism, but I do not think the USA is broke, yet. |
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01-19-26 carib
SPAL: no disagreement with your strategy.. but 99,9% of humanity does not live in Wisconsin..
:-) |
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01-19-26 Merlino
the US is bankrupt....meaning it can not keep up with interest payments on its debt..
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For a state to be bankrupt I guess it is necessary to have negative equity (US is far far away from that) and no financing (still far away from that as local & intl financing still is there besides the capacity to increase taxation) in addition to not being able to fully pay interests on her debts.
I reluctantly say this as I long for the times US debt was way smaller and nobody even imagine thing like QE and the like were possible...and the whole scheme was more comprehensible for old fellows like me.
Furthermore the price level/metrics of US mkts are now so high in historical terms that perhaps they indicate US is anything from bankrupt notwithstanding current prices of gold, silver, etc.
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01-19-26 savo
carib.. just to clarify .. i did say the US is bankrupt... what I wanted to say is that it is broke...meaning it can not keep up with interest payments on its debt...and has the usual options... inflation (understood as QE) or default.
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01-19-26 savo
victor.. my only interest in BTC is to see it go down to 70K so that Saylor is wiped out.
He is now spreading the idea that BTC is energy!
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01-19-26 victor
in gold 4,600 ..
in btc 95,000 ? :-))
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01-19-26 spal
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01-19-26 spal
But the point is laws can be changed.
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In any biz under the sun - the point is what is expected from someone who watches and understand their market.
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Savo thinks the US is bankrupt, If that was true US laws could change unfavourably.
Savo is a very interesting fellow, but I do not agree even in the slightest.
Concerning laws changing that can effect me - I do not see anything major on the near or medium term horizon.
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01-19-26 spal
Spal: I own a RE investment co (inherited) renting out apartments.
What is true in Wisconsin is not necessarily true everywhere.
Taxes and management cost eat out 2/3 of revenue.
Then you should add "rent controls" that is rules preventing owners from raising rents and or/expelling tenants even if there is inflation and tenants do not pay what they owe.
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Property taxes on my are 12.5% of revenues. I do not treat them as a cost as it is something that is passed on.
Management costs in my case are zero - as I self manage - I understand that not many people are cut out to be or good at being a landlord or property manager themselves. In my case I do not find it difficult and suspect that this is to my advantage.
Wisconsin is a "landlord" friendly jurisdiction. There are no rent controls and I do not expect to see them. If either factor changes the game is played differently (that is all). My losses from "back rent" in Wisconsin so far are zero.
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