Richard Crenian Blogs
Well, well it seems like the bad boy of Rock n Roll is out to teach us Canadians a thing or now. From the Globe and Mail link today:
Gene was asked and Gene replied,
“ You're a pretty rich guy—what's your take on the American economy?” asked the reporter to Gene.
Gene: “It's in a whirl. This is a great opportunity for you to stop spending stupid money, stop smoking, stop drinking, stop ruining your health and paying for the privilege, take all that money, all the stupid money, and buy. But don't buy stupid stuff. Buy real estate. Buy important things. It's the best time—the price is low.”
Gene we get the buy low and sell high concept (I hope). I like what you about taking care of yourself, not spending foolishly, and quit feeling like we are all entitled. (I think you get your business acumen from your Canadian “wife”, Shannon Tweed.........)
The real estate that you buy Gene should be geared towards well located, well tenanted cash flow commercial real estate as opposed to buying Land, Individual Lots, or even houses, as cheap as they seem to be now. The issue is negative cash flow. For instance when you buy a house, tenanted or not you still have to pay for all your maintenance, property taxes, etc and some times the rent doesn’t cover the mortgage payment (if you have one) let alone the property taxes.
Land is an investment so long as you have the time to bear, and a promoter that doesn’t rip you off, with them making the $ and ensuring that you don’t in the near future. What about cash flow from your land? Unless it is being farmed or rented out my guess is you are in negative cash flow as you need to pay your developer’s fees and the property taxes.
So what’s left? Buy some commercial property, have the tenants pay for everything, keep the net rents after mortgage payment, and enjoy the cash flow. Ask Howard, how he manages to spend time away from the office? Cash Flow, what else? Call Howard now and ask how him how he is doing today! 4036304544........., “rock n rolling all night and partying every day!”