Investment opinions needed

JMPRO · JMPRO's Garage

I have a referral from a trusted adviser that has done well for me in the past but I am still highly suspect of real estate investments and how they will perform in the near future. The investment is in "Cole real estate investments". They buy commerical property to lease out. The minimum investment is for 3 years. You can read about it here www.colecapital.com I am thinking about a 100k buy in that pays 6.5% .I did get burned before in RE investments so I am gun shy to say the least but I need to do something with this cash.

Jerry

dan88911 · 02-15-2012, 11:49 AM

So 2.16% a year for the next 3 years?
Is your trusted adviser getting a commission on this deal.

kaisen · 02-15-2012, 11:59 AM

I'll give you a better return, interest paid monthly. Fully collateralized (and liquid) with less risk, for my business inventory floorplan.

JMPRO · JMPRO's Garage

Quote:

Originally Posted by dan88911

So 2.16% a year for the next 3 years?
Is your trusted adviser getting a commission on this deal.

Sorry, I didn't make that more clear. It has been paying 6.5% a year and yes he gets a commission.
Jerry

kaisen · 02-15-2012, 12:05 PM

Quote:

Originally Posted by JMPRO

...It has been paying 6.5% a year...

It HAS BEEN?

Or it is CONTRACTED to be?

Big difference....

JMPRO · JMPRO's Garage

Quote:

Originally Posted by kaisen

It HAS BEEN?

Or it is CONTRACTED to be?

Big difference....

Not sure what your getting at. If it was contracted it would be a slam dunk wouldn't it.
Jerry

kaisen · 02-15-2012, 12:13 PM

Quote:

Originally Posted by JMPRO

Not sure what your getting at. If it was contracted it would be a slam dunk wouldn't it.
Jerry

So it MAY return 6.5% this year, or it may return 2% or it may return 13%?

It is not a set return? "Historically" it has returned 6.5%.....That was what I was getting at

HardDrive · 02-15-2012, 12:26 PM

3 years, commercial real estate? No thanks. There is an ocean of empty space out there. Economy is going to have to come back a long way to soak it up.

McLovin · 02-15-2012, 12:28 PM

Seems like a lot of risk for the potential return.

What are tax free muni bond funds paying? Isn't it around 4-5%, tax free? So it effectively is over 6.5%.

kaisen · 02-15-2012, 12:33 PM

Quote:

Originally Posted by HardDrive

3 years, commercial real estate? No thanks. There is an ocean of empty space out there. Economy is going to have to come back a long way to soak it up.

And from their website, it appears that Cole specializes in Big Box space. Think of the companies that have recently failed and vacated those spaces. Not too many new retailers interested in biting off 40K sf spaces. Hopefully Cole's current portfolio stays put.

Burnin' oil · 02-15-2012, 12:44 PM

Quote:

Originally Posted by kaisen

I'll give you a better return, interest paid monthly. Fully collateralized (and liquid) with less risk, for my business inventory floorplan.

A friend of mine tried the RTO/LTO business and had a few investors put up many hundreds of thousands of dollars all of which was secured by vehicles. The problem was the security interests were not vested and the collateral was not properly identified. Through very poor management the business went under and the investors lost everything. It was a mess.

kaisen · 02-15-2012, 12:59 PM

Quote:

Originally Posted by Burnin' oil

A friend of mine tried the RTO/LTO business and had a few investors put up many hundreds of thousands of dollars all of which was secured by vehicles. The problem was the security interests were not vested and the collateral was not properly identified. Through very poor management the business went under and the investors lost everything. It was a mess.

It is a possibility in any investment, I suppose, but some are more secure than others. Sounds like a lot more than poor management if they truly lost everything. Nothing is better or worse until it is compared to the next best alternative.

pwd72s · 02-15-2012, 12:59 PM

Quote:

Originally Posted by JMPRO

I have a referral from a trusted adviser that has done well for me in the past but I am still highly suspect of real estate investments and how they will perform in the near future. The investment is in "Cole real estate investments". They buy commerical property to lease out. The minimum investment is for 3 years. You can read about it here www.colecapital.com I am thinking about a 100k buy in that pays 6.5% .I did get burned before in RE investments so I am gun shy to say the least but I need to do something with this cash.

Jerry

Interest rate will vary...and NAV will fluctuate, but if safety is your concern, with NO commission paid? GNMA fund at Vanguard.

Now, do you wish to gamble, or do you wish to invest? Chasing high returns equates to high risk.

RWebb · RWebb's Garage

Quote:

Originally Posted by JMPRO

yes he gets a commission.

read no further

if you must must invest in RE right now, but a REIT from Vanguard

pwd72s · 02-15-2012, 01:27 PM

Vanguard is a very good investment company. It offers many investment vehicles, including real estate investments. Since it's a firm that is actually owned by it's customers, fees are extremely low with never a sales commission. I mentioned GNMA only because you seem focused on real estate. This is not to be confused with Fannie or Freddie. GNMA has always been a package of fully guaranteed by the feds Home loans.

$100K is a nice hunk of change. I would strongly suggest you take your time, do more study.

Begin by clicking around here:
https://personal.vanguard.com/us/home

Be sure to click on "what we offer".

krystar · 02-15-2012, 01:33 PM

with 100k cash sitting in a pillowcase, you should be asking "when do i expect to need this money".

and also do weigh a 6% expected taxable investment vs maybe looking at a 4-5% municipal bond. the tax implications is also something to consider.

pwd72s · 02-15-2012, 01:36 PM

Quote:

Originally Posted by krystar

with 100k cash sitting in a pillowcase, you should be asking "when do i expect to need this money".

and also do weigh a 6% expected taxable investment vs maybe looking at a 4-5% municipal bond. the tax implications is also something to consider.

With some cities on the verge of bankruptcy? If you like the muni route, I'd suggest going with a well diversified Muni bond fund. It CAN happen..just ask those holding muni bonds from Vallejo, California...

Rot 911 · 02-15-2012, 02:47 PM

There is one person on this board that seems to have a green thumb when it comes to investing. He made a remark about how he is investing right now that I looked at and jumped on. I am glad I did.

RWebb · RWebb's Garage

Quote:

Originally Posted by Rot 911

There is one person on this board that seems to have a green thumb when it comes to investing. He made a remark about how he is investing right now that I looked at and jumped on. I am glad I did.

tabs?

Jim Bremner · 02-15-2012, 02:55 PM

100k, I would put it on our shelves Hell, I would buy ammo or fire arms stock right now. 2012 Elections if they follow 2008 rateof sales in will be a boom year. That and add in that California will change in 2014 so that rifles and shotguns will be registered at all transactions it should be high sales here in CA