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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (35011)	6/29/2005 12:48:40 PM
From: John Vosilla	Respond to of 110194

can you give an example of an investment where these returns are achieved? what are your assumptions regarding leverage, cash flow, GRMs, etc? also, how far away are we today from conditions which meet those assumptions? Achieve operating cash flow returns of 10%, borrow at 6% amortized over 15 years with 90% leverage, very modest appreciation, usually with GRM's at six or less and at the end of 15 years you are sitting very pretty. Very conservative investing without the momo bs of today in bubble markets. Ideal markets in metro areas of Texas can be done routinely these days. Golden opportunities will exist from time to time when a local RE market is distressed and illiquid as the inefficiencies in the marketplace are something few can comprehend unless they were there doing it at that time.