July 1981 In a recent issue of a widely read tax newsletter, the writer tells a tale of a couple who attend a well known investment seminar, and then make every mistake in the book. Reading this fictitious account of rampant buying, selling, and refinancing, reassured me that our program was sound from a tax standpoint.
June 1981 The Prime Rate is once more rising – and long term financing is still too high to sustain any market rebound in the housing business. As a result, the entire nation is facing a serious housing shortage. This will be translated into rising prices and higher rents everywhere in existing housing. For the first time in history, the price of an existing house exceeded that of a new house on the average by almost $2,000.
Continue reading “Mortgage Money Costs Are Creating Changes – And Opportunities!”
May 1981 I have just returned from a thirty day road trip during which I attended and spoke at three national conventions, and taught three seminars. Although all the meetings were located in the West (California and Nevada), they were attended by investors and brokers from across the country.
Continue reading “May 1981 Commonwealth Letters Vol. 3 No. 8”
April 1981 Except for newsletter editors, that doesn’t mean much to anyone else. The man (or woman) on the street doesn’t mind paying a few pennies more for a stamp now and then, but what does a postal rate increase signify? For one thing, that despite Reagan’s anti-inflation stance, the U.S. Government is increasing the costs of vital services by 20%. You may note that this issue is being sent to you early. We’re going to take extra measures to forestall the effects of this increase by getting in one more mailing. Others will have to compensate the best they can or raise prices.
March 1981 To buy houses in markets like San Diego where the average price of a house sold is now over one hundred and thirty thousand dollars, and a smaller eighty thousand dollar house will rent for only five to six hundred dollars per month?
February 1981 In the euphoria that accompanies Single Family House Investment yields, it is easy to forget there can be massive equity losses when property is lost through defaulted loans. Over the long term, we can make a persuasive case for highly leveraged houses as a hedge against inflation. For the beginning investor with limited means, there is no swifter or more certain route to wealth than a leveraged single family house portfolio. Nevertheless, with leverage comes risk of loss. It behooves us to consider the downside possibilities that a Reagan economic stability policy could bring about as it affects US.
Continue reading “How Vulnerable Are You To Long Term Depression?”
January 1981 There is currently a book on the best seller list titled “Crisis Investing”. (I would have given two inches of height to have thought of that title.) The author, Douglas Casey, is, to say the least, negative about real estate investments in the United States.
October 1980 Our family of subscribers now is international with both Canada and Australia being added to our readership. While we continue to enjoy an extraordinary degree of loyalty as reflected in a high re-subscription rate, we are seeing more and more of the investing public among first-time subscribers. Single family houses appear to be gaining in popularity with all segments of those seeking an economic hedge against the uncertainties of the coming years. As the only investment newsletter being published specifically for the single family house investor, we are enjoying our position as THE definitive investment guide in our specialty.
Continue reading “The Commonwealth Letters Start Their Third Year With This Issue!”
September 1980 Who cares? Reviewing the results of the economy directly following the past few presidential elections, you find that no matter who wins, the economy prospers. This may be a relatively short term phenomenon, witness 1973, but will probably carry us through next year.
August 1980 The Nitty-Gritty Clinics held in various locations these past few months have been an excellent source of feedback on problems being encountered by our readers. More and more Investor difficulties appear to stem from loss of control over the details of execution of the transaction. Unprofessional workmanship in structuring and documenting acquisition of properties can result in loss of prodigious amounts of profits over the holding period. Often, the difference between success and failure boils down to minute overlooked details which change the complexion of a transaction when considered by others (i.e. the IRS). This issue will review some of the various items of “paper work” commonly used to control and to document SFH transactions in hopes of preventing future problems.
