Posted by Jay_TN on August 09, 2001 at 19:20:47:
Bud, what is your definition of investing? For me, it is building assets using compounding, not maximizing income. I do not agree that investing is about paying off debts. How many people here are investing to pay off debts? How many are here to make a better life, and build wealth? Perhaps short term investing is about paying off debts.
Don’t tell me about dot.com’s. I had a large mutual fund portfolio fall to pieces these past two years. Needless to say, when the market goes up, I’m cashing out. I now prefer real estate.
Bud, I am definitely in agreement with you regarding recycling equity. I surely need to diversify. I have tons of equity sitting in two properties, and need to leverage it into income. I have problems thinking out of the box, and that is the reason I’m here learning. I am willing and open towards change my mind. I am opinionated as HE!!, but at least I do have an opinion.
To avoid depreciation recapture and capital gains tax, try a 1031 exchange. It is possibly one of the best ways to leverage into bigger properties.