Long term interest rates... Good guide...
Reply: 1.1.1.1.1.1.2.2.2.1.1.1.3.1.1.1.2
From: Paul Zagoridis
On 4/15/02 9:18:00 PM, Sim' Hampel wrote:
>Thanks for sharing your
>experiences Paul, now I'm
>going to ask you to share some
>more ;-)
>
>On 4/15/02 8:18:00 PM, Paul Zagoridis
>wrote:
>>
>>The biggest lesson is to deal with what
>>is and not with what should be.
>
>Do you care to give us all an example of
>what you mean here PZ ? I already have
>my own policy on this matter, but I
>think a lot of people would benefit from
>a little bit more explanation from
>someone like you ?
This is the Zen I've been accused of. People often refuse to accept reality because it seemed inconceivable. Interest rates at 18%? It can't stay there, so they hold on and on and on. Their strategy is blown to smithereens.
So I do my due diligence and that includes a "worst case scenario". Once reality exceeds that worst case scenario it is time to take drastic action. Be ruthless. Whatever it takes.
A good example is vacancies. My agent suggests this vacant property is worth $155 to $160. After the first weekend I want to know how many prospects came through and why it didn't rent.
By Wednesday I instructed them to rent it at $150 NOW. The lease is signed be Friday.
Compare to landlords who have vacancies of 6 weeks.
Now for every quick rental story there is a story of waiting one more day and the tenant shows up at higher rent.
Set a deadline for the event to occur. Once the deadline passes take the pre-determined action. This removes the emotion from the business.
>>I now consider my exit strategy very
>>closely. But I don't get paralyzed
>>worrying about 17%. All my deals would
>>turn negative if that happened. But I'd
>>deal with it.
>
>Again, care to share some examples of
>how you intend to "deal with it" ? Like
>Dunc's great post earlier, do you have
>some specific tools or techniques in
>place to be able to manage an unexpected
>peak in interest rates ? I think some
>real examples are very useful for people
>who are a little unsure about how to
>plan ahead.
It's more an attitude to be ruthless with myself and not hesitate.
A wrap badly unravelled on me. Suddenly my above market income is gone. Immediately I did three things simultaneously:
1) advertised for a replacement buyer,
2) got an agent in to quick-sell the property
3) got a property manager in to rent the property.
Many people will try these three things in order. No way. I have a problem that requires drastic action. It needs to be solved now. So what if it costs me money. It will cost a lot more if I delay action.
Hopefully that answered the question.
Paul Zag
Dreamspinner
The Oz Film Biz site is archived at...
http://wealthesteem.dyndns.org/
Reply: 1.1.1.1.1.1.2.2.2.1.1.1.3.1.1.1.2
From: Paul Zagoridis
On 4/15/02 9:18:00 PM, Sim' Hampel wrote:
>Thanks for sharing your
>experiences Paul, now I'm
>going to ask you to share some
>more ;-)
>
>On 4/15/02 8:18:00 PM, Paul Zagoridis
>wrote:
>>
>>The biggest lesson is to deal with what
>>is and not with what should be.
>
>Do you care to give us all an example of
>what you mean here PZ ? I already have
>my own policy on this matter, but I
>think a lot of people would benefit from
>a little bit more explanation from
>someone like you ?
This is the Zen I've been accused of. People often refuse to accept reality because it seemed inconceivable. Interest rates at 18%? It can't stay there, so they hold on and on and on. Their strategy is blown to smithereens.
So I do my due diligence and that includes a "worst case scenario". Once reality exceeds that worst case scenario it is time to take drastic action. Be ruthless. Whatever it takes.
A good example is vacancies. My agent suggests this vacant property is worth $155 to $160. After the first weekend I want to know how many prospects came through and why it didn't rent.
By Wednesday I instructed them to rent it at $150 NOW. The lease is signed be Friday.
Compare to landlords who have vacancies of 6 weeks.
Now for every quick rental story there is a story of waiting one more day and the tenant shows up at higher rent.
Set a deadline for the event to occur. Once the deadline passes take the pre-determined action. This removes the emotion from the business.
>>I now consider my exit strategy very
>>closely. But I don't get paralyzed
>>worrying about 17%. All my deals would
>>turn negative if that happened. But I'd
>>deal with it.
>
>Again, care to share some examples of
>how you intend to "deal with it" ? Like
>Dunc's great post earlier, do you have
>some specific tools or techniques in
>place to be able to manage an unexpected
>peak in interest rates ? I think some
>real examples are very useful for people
>who are a little unsure about how to
>plan ahead.
It's more an attitude to be ruthless with myself and not hesitate.
A wrap badly unravelled on me. Suddenly my above market income is gone. Immediately I did three things simultaneously:
1) advertised for a replacement buyer,
2) got an agent in to quick-sell the property
3) got a property manager in to rent the property.
Many people will try these three things in order. No way. I have a problem that requires drastic action. It needs to be solved now. So what if it costs me money. It will cost a lot more if I delay action.
Hopefully that answered the question.
Paul Zag
Dreamspinner
The Oz Film Biz site is archived at...
http://wealthesteem.dyndns.org/
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