Quote:
Originally Posted by grudk
I think the pain in the high-end in SoCal is yet to come. Time will tell, but I'm voting with my $, patiently renting.
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I talked to an old friend yesterday that is buying houses as fast as he can, all cash. In the better areas of Victorville where they tore down those uncompleted houses. He is paying the banks just above $40/ sq. ft. He is renting them for anywhere from $1k to 1500/mo. and making a lot of money in positive cash flow. Well, just cash flow because he has no mortgages on them.
He told me that there is no place for his money right now that can better his ROI. And he doesn't care which way the prices go as long as his balance sheet keeps growing. He'll buy a few million worth of these if he can. Otherwise, he's making 2% on his capital.
His way he is making over 10%. Money talks.