Posted by Brent_IL on August 30, 2003 at 24:45:40:
Hey Milo,
I, too, dabble in commodity futures. I don’t know if I can agree that trading commodities is so much simpler than real estate investing. I like both, so we aren’t on opposing sides. Calling a broker is certainly much easier than finding and negotiating a good real estate deal.
It may be true that most people lose at commodities because they don’t follow the rules, but the rules are not absolute. That’s why trading systems that are backfitted fail. Some theorize that there are no rules. As you alluded to when you said it was important to keep from losing money, IMO, the improper or the non-use of stop-losses is the major contributor to trading failure. Well, maybe under-capitalization is up there with it, but it?s a related concept because once you are whipsawed, your ability to out-wait the change in market direction has vanished.
Leverage is a big factor in real estate profits, but futures are the ultimate game of leverage. However, that double-edged sword can cut quicker and much, much deeper. Real estate is slow moving. Compared to futures, everything moves at a snail?s pace, so investors have a chance to react in a manner that will help them improve their profit or cut their losses. Contrast that to the futures market where accounts are marked-to-market daily. Those aren?t paper losses; that?s real money vanishing.
Overall, the percentage of long-term successful traders is small. The percentage of successful day-traders is infinitesimal.
I think I like futures for the same reasons I like using an assortment of terms to buy real estate. Since buyers-on-compound-terms seem to be in the minority, I can?t help wondering how many creative real estate investors would actually do well in futures.
It?s nice to hear from someone who?s combined real estate and commodities successfully.
From what I can make of the information provided in the mail out that I received, they appear to cater to Bad Credit buyers, based on a “secret” money source that guarantees financing for almost any credit situation (except open BK’s, no steady income ect). They suggest that this is done by offering the seller of a property asking price + to agree to a 12month lease/option, then they secure a credit challenged tenant that will lease the property for 12mo then are guaranteed financing (if no late pays)…
Since you’ve had no responses, and I was doing a search on her, I guess I’ll respond. Hopefully, the moderator of this Board will not disapprove of this post, since it has to do with both Real Estate and Commodities.
To answer your question, Yes, I have met Monica and talked with her in person as well as e-mail. I attended one of her 3-day seminars, but it wasn’t for real estate; it was for her commodity trading course. I have all her commodity trading materials, but have not seen any of the real estate material.
In her commodity material and seminar, Monica advocates getting into real estate ONLY after you have made so much money trading commodities that you need the tax advantages provided by real estate. I agree. I was going to get into the secondary mortgage note market and later, real estate, and had already spent far more on courses for that than I care to admit, when I decided that trading commodities was so much simpler (I had already been dabbling with commodities for some years.) That’s about the time I ran into Monica’s material. Don’t get me wrong. Trading commodities takes just as much study, commitment, and desire to success as does real estate or notes. But once you learn it, the process of implementing it is so much simpler. No forms, faxes, paperwork, government regulations and restrictions, note or rent collections to worry about. Not to mention all the marketing stuff you have to do. With trading, you just do your homework to determine your trading strategy, call your broker, and place your order. That’s it. Personally, I would highly recommend commodities over real estate to anyone. There are rules any trader must follow in order to make money trading, as well as keep from losing it. Most people lose at commodities because they don’t follow the rules. There are many different ways to successfully trade commodities, and Monica’s is only one of them. If you want more detailed info on Subject, e-mail me. It may apply to real estate as well as commodities.