A guide to what's going on in Ocean City, New Jersey . . (Not to be confused with /OceanCity in Maryland)
Too many people these days make lavish trips at a young age that they can barely afford and rationalize this with "the experience helps me to broaden my horizon and makes me a more cultured and interesting person".
As a tourist you generally only see the high lights and nice places and you don't really get to know a country. Just because you visited some beaches in Bali, doesn't mean you know what the people of Indonesia are like.
Don't get me wrong, I enjoy traveling and I have traveled a lot. But just because I have spend a few days in New York and seen the Statue of Liberty, I'm not going to claim I understand what life in New York or it's people are like. It would maybe be different if you actually live in a country for an extended period of time, but also only if you mingle with the locals. Most expats and international students mingle with people of their own culture.
On the other hand, I do consider myself a cultured person. But this is mostly because I mingle with people from other cultures back home. My ex girlfriend was Bulgarian, my current girlfriend Venezuelan, I have friends from Mexico, Malaysia and South Africa and trough them, I learn a lot about their cultures.
Also, when I travel with my partners to see their family, I'm not staying at some beach resort. I'm actually staying with my girlfriend's family and living life with the actual locals and actually knowing what life in this country is like. Plus as a bonus, I actually learn a lot more about my own culture. I learn which things about Dutch culture are strange to foreigners.
So to conclude, to people wasting money on expensive vacations; if it's cultural enrichment you are after; I highly recommend you expand your friends circle to include some people of other cultures living in your own city.
Hugs to everyone going through it today, anxiety has taken over my body and made it a twitchy, trembly, sore, nauseous and numb mess today! I just don’t know what to do anymore! I should be so happy I go on a 10 day beach vacation and then Disney yet I feel like I’m dying 😢. I hate this for all of us.
Hello. I only took Suboxone for 3.5 weeks and was floored at the withdrawals I experienced with it being that short of time. It was the worst around week 2; I found some kratom from awhile ago in my house and caved and took about 4mg. I’ve been taking about 5-6 mg a day for 12 days. I just want to stop because I’m worried I’ll get dependent on it again. If I stop now, will I even feel much withdrawal? Currently the mornings kinda suck (restlessness/fatigue) but once I’m up and around and drink caffeine and workout I’m okay, then the afternoon depression hits and that’s when I’ve caved and taken kratom. I’m going on vacation in 4 days and took a dose of kratom a couple of hours ago. I want this to be my last dose. Should I be okay by Wednesday? I do have gabapentin and clonidine and some RLS meds. The most frustrating symptom since stopping sub is the restlessness and depression. I’m thinking being on the beach with me family will actually help the depression part, but I just want to see if you guys think I’ll have anything acute going on in a few days, thanks!
Hello. I am planning a solo trip to Cannon Beach! Haystack Rock is definitely something I want to see, but I also would like to explore any noteable spots and was wondering if reddit could help make any suggestions? My trip will be a very short one (Friday - Sunday). I'm up for any hiking trails, sight seeing, museums, historical things. Also I gather PDX would be the nearest airport and a rental car would be needed to get to the coast? Also any suggestions as to where to stay where I can have a nice view of the ocean?
I was wondering if infants can go on a vacation with their parents? I have a mother and father and was planning on having one of them look after the infant in the rental and the other exploring the jungle in Selvadorada.
Is it possible? And is it a good idea? I'm worried I might regret it, haha.
Most days I can push you out of my head, but for some reason today is more difficult. I can't keep bringing you with me everywhere. You're too heavy on my heart and I don't want to keep paying this excess baggage fee.
This is what you wanted to do with the extra chance you begged so hard for? I don't understand how you could come back saying you don't want to be a reminder of the pain you caused me and then turn around and cause more damage and scarring. You fucked it. I always did say you were a Kendall.
Fool me once shame on you. Fool me two, three, four...I've lost count but you get the point. Shame on me. You had me believing you really saw how dim and sad the last year of your life was without me. That you never wanted to go through that again. But just add in a little work stress and the promise that you'd rather face any conflict with me than be without me in your life falls apart.
No matter how much I wanted to believe in you, I always remembered the story you told me about a brewery you were really stoked to go to but your partner at the time wasn't feeling well and you didn't want to go by yourself because you'd feel guilty. I realized I couldn't imagine you ever doing something that selfless for me. It's kind of codependent, but still selfless. I wanted your actions to prove me wrong, but time and time again they just proved what I suspected. You only cared about me when it was convenient for you.
I was the one who made time in the middle of getting ready for my birthday party and housewarming to talk with you on the phone when you said you needed to while you couldn't even figure out how to fit in regular phone calls. You sure made time to repeatedly fly halfway across the country for your tattoo though. Work was busy and you couldn't do a bunch of visits right now? Cool. You could've flown in even if we could only see each other for five hours before you had to turn right back around to show me that you actually took this seriously. It's what I would have done for you in a heartbeat if the situation was reversed. When someone is special to me I make sure they know it without a doubt.
I asked you multiple times if you could make me a priority and you swore up and down it wouldn't be an issue. Your words mean less than the penny now. When your work slows done and you realize what you lost again it won't matter that you know how badly you fucked up or that you think I'm your person. I can't trust a single word out of your mouth.
The saddest thing is that I do believe you truly thought I was your person and that we could have had everything. That you wanted to see me. But when you actually have the possibility of having everything and being in a real romantic relationship with someone you're compatible with you freak out and go cold. You crave and need real intimacy right up until you can actually have it because you realize that would require you to be truly vulnerable and the deep feelings that come with it, managing conflict, and fear. Then you go right back into your comfort zone of hiding out in relationships with people who know are wrong so that you can always keep some level of emotional distance. Time goes on and once you feel safe again that need for intimate connection comes back. Rinse and repeat.
Until you address your issues around your emotional unavailability you will continually crave to have your needs met and trip over your own feet every time you see the finish line. I'm taking myself out of this twisted merry-go-round of yours. You will never be able to be the person who meets my needs and the only thing I can depend on you for is disappointment.
You said repeatedly you can't change your life right now but you've been saying that for almost three years. If not now then when? The answer is never because you won't.
Yeah, we could've had everything. We could have had so many nights just like Ft. Wayne. A lifetime of them. But now you'll just have to make do with whatever happiness you can find without your person in your life.
I hope the loss of me feels like a phantom limb. That you always go to tell me something that's happened in your life and realize with a gut punch that I'm gone forever because of your own selfish actions. That you always sense something integral is missing from you and the void left where we were once so deeply intertwined eats away at you. You know I was the love you'll always remember. The one in your mind on your deathbed while you're still singing "I Don't Like Who I Was Then" to me even after all these years. And you'll never see me again.
It's so sad that our story ends with those being the last things we ever say to each other. Words full of betrayal and pain. My last memory of you will be of you just letting me go and disappointing me after you said you'd never do that again. I guess ours was always destined to be a tragedy. I'm not just closing the chapter on us, but the whole damn book.
I so wish we had learned how to sing a new song together but you've always returned to the same refrain the entire time I've known you. The song of a man with no spine.
Goodbye to the effortless way we talked and bonded with each other. Goodbye to the way you looked at me that first night like I was a goddamn miracle. How you kept reaching over in your sleep to pull me close and make sure I was still there. Goodbye to Sundays hiking with the dogs and spending the evening intimately wasting time until the sushi gets delivered and all the other things that could have been.
There will be no Sundays hiking with the dogs and spending the evening intimately wasting time until the sushi gets delivered. There will be no beach vacations or coming home to me after work and the chicken pot pie I made you. No exploring new places with fingers laced or telling you what I want to do to you at the most inopportune times that have you pushing me into dark corners to kiss my neck. No life where we got to be the happiest and most fulfilled version of ourselves. Those pages never got written. That song never got sung.
You said you didn't want this with anyone else but that's exactly what you've chosen. I'm done lowering my standards just because I loved you.
I'll bury my memories of you, hopes, trinkets, and the list of funny husky memes I saved to send to you when you're stressed into a watery grave. I'll pour a whiskey out for you but only the cheap, shitty kind. You have to be dead to me now. Goodbye, cowboy. I'll probably always miss you, but you just aren't a good person.
Let me preface this tale with this disclaimer: I am extremely bad at subtle hints, dating, anything relating to emotions and feelings due to my childhood. I'm in therapy and try to take my time and understand, but it's still really hard for me. I also overthink everything. A winning recipe, for sure. /s
Last week, an acquaintance (29M) out of the blue sent me (28F) sexy messages. This guy and I kind of run in similar circles. We chat everyday and I know things about him like pets and siblings, but nothing SUPER personal like hobbies, likes/dislikes, etc. We were just having a casual conversation about what we were watching on Netflix and then all of a sudden he starts sending messages like "I wish you were showering with me" and "work me out." If there were any hints beforehand, I missed them... and honestly, at the time, I thought he was kidding. So I made a joke about the shower comment and he responded with something like "I didn't mean that as a joke." Whoops.
Next day I apologized for being an asshole... and he turned around with "what are you talking about?" So now I'm hella confused. I told him I was confused and he said he was, too. I kind of see a few possibilities here: 1. He was super subtly hinting at things before, I missed them, and have been a bitch unintentionally this whole time. 2. He was drunk (he was not out at bar; he was home at the time, but I'm fairly certain he went to happy hour after work) and doesn't remember saying flirty things or doesn't mean it? 3. Somewhere between those options? I have no idea. 4. I could be TOTALLY WRONG and he isn't into me period.
Well... now he's ghosting me. I know he's been super busy at work this week. I've only sent two messages in a week - Tuesday wishing him luck in his rec league game and Wednesday morning a news article about something we talked about a few days before. No response to either. I'm going to give it until next weekend, because I'm leaving for vacation and his murder trial should be over. I'm planning on sending a typical message to the effect of hoping he's okay and saying we can talk again whenever he's ready. My big question is... do I speak my truth?
I'm flattered by the messages - men normally do not feel that way about me. I am not attractive in the traditional sense. I haven't been on a date in 6 years and no guy has been interested in me like that in a couple years. His feelings and emotions are valid, I get a respect that. But I feel like he's barking up the wrong tree! I'm DEFINITELY not looking to get married tomorrow or anything, but I'm NOT into FWBs, casual sex, hookups, open relationships, whatever. It isn't me. I'm looking more for an equal partnership. A ride or die. A partner in crime. Commitment. Messages like "I wish you were showering with me" or "work me out" makes me feel like we're on two different pages. And, if that’s the case, that's fine! Everyone has different wants and needs. To be clear, I have no problems with flirting, but it feels weird since this is so out of the blue and I was blindsided by this. I would still like to stay friends, however possible that may be.
So Redditors, if you were me, how much, or how little, would you send to this other person? I could: A. Send the text about hoping he's okay and saying we can talk again whenever he's ready only. B. Send the text hoping he's okay and saying we can talk again whenever he's ready + explaining his feelings are valid, I wasn’t trying to be an ass - but I think we’re on two different pages. C. Ignore all together. D. Something else you can suggest that I’m not seeing?
My gut says B, but my track record is awful so that's almost definitely the wrong answer. Overall, I figure worst case scenario, I spill my guts about everything, he still ghosts, and I have a nice beach vacation to forget about it lol. Help a sis out!
Catch the full episode: https://www.wealthformula.com/podcast/371-ask-buck-june-2023/
Buck: Welcome back to the show, everyone. And today it's just me. Like old times. And we're going to take questions from the audience. There's actually no audience here in my room, in my office here. But I'm going to take questions from you. And we'll start with the question from Mike. Mike, here you go. Hello, Buckets. Mike Kaye from Melbourne Beach, Florida.
Mike: I was wondering if you were looking at any opportunities out there in regards to investing in distressed assets. I've noticed that rates have gone up in a lot of operators like Western wealth aren't cash flowing and are actually looking for more capital because they've got themselves into trouble. And if rates stay higher than expected, there could be some some pretty good deals as far as bailing folks out.
Buck: So I wanted to get your thoughts on if you were looking for anything out there as far as funds or whatever it may maybe create some opportunity here. Thanks, Mike. Thanks for the question, Mike. The answer well, let's start with this. Obviously, there's a lot of distress in the system right now. Interest rates have gone up a the steepest slope in American history.
And as you might expect, that has not been good for operators, particularly those who relied heavily on floating debt. You know, and this is important, I think, to understand what's going on a little bit, because you might be wondering why in the world would you use floating debt anyway? Well, if it's a long term hold, it never would really make sense to do that kind of short term debt.
However, and with these larger assets, the problem is fixing debt. If your plan is to, you know, ultimately sell. And, you know, 18 to 24 months, you are going to end up with an extremely high prepayment penalty. And so in those situations, the extremely short hold are the shorter hold models, you know, generally ran on floating rate. So if you're again, your business model is to get in and out in 18 months, it doesn't make sense to lock in the rates.
So obviously now they would be better off if we had. But everyone has a plan until they get punched in the face. Right. That is from Mike Tyson, not from me. But that's that's kind of what's happening across the board here, especially for floating rates. And as for looking into creating this fund, which, you know, maybe you got a rescue fund or something like that, that the answer was whether I, I think that that's potentially something to do is, well, yeah, it's certainly something to consider.
And I have thought about it. These are essentially these sort of preferred equity positions, essentially become the lender. So there's not like any tax benefits or anything like that. But so, you know, I have thought about this, but but before doing anything like that, I want to make sure, you know, the economics makes sense for everyone against, again, perhaps one of the most appealing parts of this fund might actually to be getting into some second positions and maybe be first in line if the property fails and you know it or is distressed, it needs to be taken over.
But I really need to think about it because I also want everyone to have as much dry powder as possible. And because, again, it is no fun to be in this environment and those people who are going to make money are going to be the ones that have like nerves of steel that, you know, are okay to feel like, okay, I'm losing some money on one hand, but there's an opportunity to buy distressed assets on the other side.
And that's where real money is made. And again, it's a psychological thing that happens in every cycle. And the key is to try to keep your wits about you and learn, you know, learn whatever lessons you have to learn and move on and deploy. I certainly am not one who is not learned from this experience. Myself, I absolutely have, and I think it'll make me a better investor going forward.
Unfortunately, we're still in the midst of this mess right now. But anyway, bottom line is the answer is yes, potentially. I've thought about it. And I think like those kinds of preferred equity, essentially debt being in the second position behind the main lender, that is that's potentially appealing. And certainly as an investor, I think it's appealing because essentially you're you're in a lending position. You're not you know, you're not in an equity position, so you're superior to the equity position. Hopefully that helps. All right. Let's go on to the next question here. So it's from John.
John: Hi, this is John Valentino. I listened to your excellent podcast every Sunday morning on my run, walk and find them uniquely interesting and helpful amongst a sea of podcasts that aren't.
Buck: Yesterday you mentioned Terry Loughlin and your late in life swimming experience. I'm 68 now and at 55 I decided to learn to swim. I researched all of Terry's stuff and ended up using a local swimming coach here in Fresno, California, who knew Terry and who had a lot of experience. He had me swimming, breathing and flipped, turning very quickly.
Four years ago when we visited Maui, I did a two mile ocean swim with some master swimmers. I now swam about a mile and a half every Sunday with which the swim coach they taught me. And I do that. I listen to your podcast. I'm sure we could get you swimming and breathing properly very quickly. He Fresno's not too far from Montecito. Good luck with your swimming and let me know if you'd like me to hook you up with Rich. The swim coach.
Buck: Well, John, thanks for that. That makes for a lighter moment in this sea of despair. Ha ha ha. That's funny, kid at sea of despair. He's swimming. Anyway, for those of you who don't know what John is referring to, I'll just take a minute because, you know, taking questions from all kinds.
All types of questions here is back in 2016, I think it was 16, I listened to Tim Ferriss podcast about how he spent his whole life trying to swim and unsuccessfully, I'd say, met up a guy, met up with a guy named Terry Loughlin, who taught his total immersion technique or tie. So I decided, well, gosh, you know, basically Tim Ferriss was talking about my story, like he spent his entire, like, you know, didn't learn to swim as a little kid and then all this and trying to catch up and no one could teach him.
And that was kind of where I was. I do like him numerous, like tries added back in my twenties and thirties, and then I kind of had given up. Then I contacted Terry. He was in New York, upstate New York. So he actually flew out there. I was in Chicago at the time and he taught me to swim in about 2 to 3 hours and it was really unbelievable to me.
And the only thing I didn't learn how to do during that visit was to breathe. And unfortunately, that was so that was like I was there for like a day and a half. And that was the part I didn't get to. So now I can swim, but only as long as I can hold my breath because I can't seem to, you know, I can't breathe and swim at the same time.
Unfortunately, Terry had, end stage cancer. When I saw him and I believe I was his last student before he died a couple of months later, and he'd actually stopped teaching for a while, you know, before I got to be the lucky one that he decided he had enough strength to go back for. So lucky for me. So but yeah, I would love to, you know, John, shoot me an email, you know, where I am and I get well for Malcolm Connect me to your guy.
And I think Fresno might be a little far, but if he's as good as Terry, maybe I could. Maybe I could learn to breathe in a day, too. So, hey, anyway, thanks. Thanks for that. Let's go on to the next question here. All right. This one's from I think it's Garima.
Garima: I am looking to become a real professional on studies. We've been doing real estate for a little bit but wanted to do this. I really need help. If you can guide me well and see.
Buck: Well, I don't know. I can do my best about that, Garima. And first of all, I have to preface this as I always do, that what I'm about to say is not legal or any kind of tax advice. I'm not a tax professional. My degree is in medicine. I'm a former board certified surgeon, but that doesn't qualify me for much. And this in this arena, it's just my understanding of the tax law, which, you know, I spent a fair amount of time thinking about. So it's not like what I'm saying should not be listened to, I think.
But on the other hand, the liability issues, I have to make very clear consult with your own tax professional before anything anyway. So again, probably the best thing I can do in terms of guiding is tell you what I know about the qualification as real estate professionals status. And by the way, I should also point out that the benefits that I'm going to talk about, there's a lot of this similar benefits without having the status in short term rentals.
And that episode, I believe, is 354. So go back and listen to that one. It's I thought that was a pretty interesting episode. But why is agreement talking about this RFP short for a real estate professional So everyone is on the same page? What is the real estate professional designation? Why is it useful? Well, a real estate professional is not the same thing, is in a real estate agent or a real estate broker, which are basically involved with real estate transactions.
They're involved as like the middleman. Right. That's not really the business of real estate. The real estate professional is someone who is who is materially involved with the business of owning and operating business. And the reason that this is important, we'll get to in a minute, but I'm going to go into the qualification parts of this. And again, I'm not giving you advice and basically telling you what I can gather from the IRS website And basically the material participation is one of the first things.
So you can't you can't be a limited partner in a bunch of real estate and call yourself a real estate professional. You have to have some activities that are truly owning and, you know, operating real estate. I mean, you have to be involved in the management operations of your rental properties, right? So the level of involvement is different than obviously if, you know, even if you have a propertyif you have a property manager or whatever, it's still going to be more active than if you're just a limited partner.
But another one of the things that you have to qualify for is you have to spend more than 50% of your total working hours in real estate activities. So in other words, if you know, if you've got a full-time job, you can't really qualify as a real estate professional. There has to be more hours than any other profession. Right? Your participation in real estate activities has to exceed anything else that you're doing in terms of business and employment. There's also something called the 750-hour test, which you must spend at least 750 hours per year on real estate activities. And some of these things that you can do include property management or rent collection or maintenance or advertising, other related issues, acquisitions, underwriting, etc.
I mean, there's a lot of things that, you know, once you own real estate, you can be an active owner, right? So anywhere that's... So why would you want this designation? Because it sounds onerous to go and try to make sure you've got all these things if you're not already doing it. Well, as you may know, the real estate income itself, that real estate income itself is considered passive income.
Right. And similarly, the losses from real estate in the form of depreciation are considered passive losses for most people. Those passive losses cannot be applied to any active income, right? So if you have an income of $500,000 and you happen to have $500,000 of depreciation or paper losses, you couldn't use those losses to offset your personal active income.
The reason is that one is active and one is passive. So you can't do that. And unfortunately, unless maybe you or your spouse, rather, with whom you file jointly is a real estate professional. So in this case, what would happen is those passive losses from real estate would become activated, in other words, their active losses. And you can, you know, you can offset anything with active losses, right.
And even W-2 income. So that's the idea. So, again, theoretically, check with your legal, you know, and tax people and hopefully they know what they're talking about. But see, if you're a C, if you're a doctor, you're making, again, $500,000. And let's say your spouse, who's a real estate professional, generated maybe $50,000 in income, but $300,000 of paper losses, you can deduct that $300,000 from the salary, that is earned income on the doctor's side.
So basically, that is what the huge, big deal is about this real estate professional status. And again, I'm not a tax professional, but this is something that a lot of people in our group do, and it is, you know, following the tax code, that's the key. So Garima, bottom line is I don't know how else I can guide you other than to give you information.
But, you know, I guess what I would do if I were you is, you know, try to figure out how you can actually, you know, get yourself qualified as a real estate professional and make sure that, you know, you fit those criteria and talk to your tax person about it. Okay. Next question is from Mark Hammons. Mark's question deals with tax law, and I'm not sure it's appropriate for this forum.
Feel free to pass on if you feel like addressing it. Well, it's another question. Well, you know how I feel about that. I'll tell you what I think. But
don't take it as tax advice in any sort of way. But okay, so here's the question Mark says. He says, I'm a partner in an LLC that was formed for residential development.
Our project is nearing completion, and this year it will take business income to be taxed at a 20% LLC rate. I will receive income from the sale of raw land and taxed as long-term capital gains. I'm a full-time physician and not actively involved in the business of land development. Can I offset any of this income with accumulated passive losses and leases?
Thanks, Mark, for all you do. Thank you, Mark. And well, as you may have gathered from the previous question and the answer that I gave Garima, you are a full-time physician, my friend, and therefore you do not qualify as a real estate professional, and therefore you cannot use those passive losses against your active income as a physician, and you are stuck in that stratification of income hell, which is that you've got these great-looking losses on the passive side and this great income on the active side, and you cannot do anything about it.
So now, if your wife was doing this real estate stuff and qualified as a real estate professional based on the criteria I mentioned earlier, then you would theoretically be able to apply those passive losses to active income, and boom, all of a sudden, you would have what it is you are hoping for. And anyway, but I do have people in our group who are literally, you know, with that spouse set up.
Well, that's why I brought it up, right, where they literally had a spouse quit their job so that they can switch to real estate professional status. And although their cash flow may constitute a theoretical pay cut from their job, the generated losses, paper losses, are being applied to the larger active income stack. There, in many cases, justifies that because they may make a total gross amount of income that's less.
But because of those passive losses, they actually get to keep more. So that's a complicated answer to a simple question. In my non-professional opinion, Mark, you are kind of screwed. Can't do that anyway. All right. So the next series of questions is from Terry. And let's see, let's start with the first one. Is this one. My understanding is there are U.S. dollars held overseas in the United States.
What would be the impact to the value of the dollar if the overseas cash had to be converted to CBDCs, which is central bank decentralized coins? Well, I'm no expert on this, but from what I know, I'm not sure it would have a material effect on anything overseas because as I understand, CBDCs is a little more than using distributed ledgers instead of central ledgers for digital money, right?
Because the thing is, you have to remember that 90% of the U.S. dollars are digital-only already. They do not exist in the physical world already. So what difference does it make if it's on a single ledger or if it's on a distributed ledger? I'm not sure that it does. As I understand it, the idea would be essentially to make it into like a software update almost, right, where the new digital currencies would be CBDCs.
But of course, I could be wrong, and my understanding of the plan that the U.S. has there is it could be wrong. I'm sure there's a larger plan eventually to use this as a way of maximizing tax revenues and tracking people's spending and that kind of thing. But in the short term, I don't really see how it has repercussions for money overseas.
But if somebody knows of something that would cause that, certainly email me. But I don't know that. Okay. This question is also from Terry. He says, "Rising interest rates have had an impact on existing multifamily operators, and it seems like part of the multifamily model relies on interest rate value being lower than cap rates." That's correct. "Combined with the multiplier effect of low cap rates for value-add projects, do you see cap rates going up until interest rates come down?"
How high can cap rates go before the value-add model is no longer viable? Are rents still rising fast enough to offset interest hikes? Okay. So yes, I do see cap rates going up. Remember, in order for debt to make sense, the interest rates must be lower than the cap rate. So if your borrowing rate is 5%, then your cap rate needs to be above that in order to have positive cash flow.
Otherwise, you're amplifying your losses. That said, often, you know, you may have seen in some cases operators buying things and they'll consider buying things like that. If there's an obvious thing that's going to drive up net operating income pretty quickly. But right now we are seeing rising cap rates. Now, as for the value-add model being viable, I would say that yes, the value-add model is viable in all interest rate environments and with all cap rates because remember, folks, real estate was not people didn't just start making money on value-add.
This has been around for some time, right? There are plenty of people who got rich off of value-add real estate in the eighties despite double-digit interest rates in double-digit cap rates. So what has created so much distress in this system is not the absolute interest rates. It's the pace at which the interest rates went up.
They're the moving goalposts. You see, every time you underwrite a property, you have to model in interest rates and reversion cap rates. And if rates are not stable, it's very difficult to underwrite. And that's why these real estate markets right now have been so illiquid. There really are no stable variables to underwrite with. Rightly, you got to have the goalposts, you got to know where the goalposts are so you can play the game right.
Once you have that stability, though, you can underwrite again, and in value-add real estate, the money isn't made based on interest rates being high or low, but it is made by ultimately creating a positive delta in the net operating income. And that can happen in all interest rate and cap rate environments. So I don't see it being an end to value-add real estate at all.
In fact, one could argue that if you're, say, you're buying real estate, which hopefully we are in the fall, and you're getting great deals on it, you know, the rates are high, but the numbers are making sense. You do your normal net operating income, you do your normal value-add program, you try to increase NOI, and you get lucky.
And by the time you're ready to sell, interest rates have actually come down. Well, in that case, you're going to actually probably get, you know, more for your property than you would otherwise if rates were stable. So I actually don't see this as something that is ending anything. In fact, I think those who, again, take advantage of a higher-rate environment and buy into assets that make sense at high interest rates could seriously make money in the next, you know, several years.
So let's see, the last question from Terry is, "What are your thoughts on portfolio allocation between real estate stocks, cash value insurance, gold, crypto, and cash?" Well, I might not be the best person to ask about portfolio allocation because I think my portfolio would make most money managers think, right? I'm about 75% real estate, maybe 5-7% crypto, mostly Bitcoin, Ethereum, and the remaining investments are things that I believe are uncorrelated.
The most stable thing is, you know, I'm a big fan of cash value life insurance in part because, I mean, it is so stable. I mean, seriously, it is incredibly stable. If you look at the environment that we're in right now, it makes you, again, think you should be buying more cash value life insurance. It's extremely stable.
And this is why it was such a big deal during the Great Depression. People lived through the Depression and had no faith in anything except for cash value life insurance, which is what they were buying. But anyway, I think, in particular, I'm talking about these strategies that we're calling, well, formula banking or various leverage dials, wealth accelerators, things like that.
So there's that. I'm also obviously into other things that we have in our group. We're involved with like ATMs, which, you know, don't seem to have much correlation with the economy per se because people who use that still needed it. Good times or bad and did well even through COVID. You know, there's also things that we're doing, like I'm invested in things like, you know, cargo ships that are delivering essential oil and gas to the country, things like that, where again, it's not something that is significantly correlated with the rest of the markets.
And I think that's one of the things to really make sure that you're not... I mean, listen, I guess in my case, being 75% real estate, I mean, it's not a good time to be 75% real estate right now. Right. I probably... I mean, if I did the numbers, I'm probably less than 75% real estate now because I probably lost quite a bit of value in the real estate.
But I'm not even going to look at that right now for this purpose. But ultimately, though, you know, listen, personal finance should be personal. I don't own stocks, although I'm not against stocks. I'm just, you know, not a guy who really owns stocks except for some big, really, you know, asymmetric plays in the energy space, you know, through Mercatus and things like that.
I don't own any physical gold, although again, I've talked about possibly wanting to do that. I don't really want to right now, but I'm hoarding cash right now because I think there are going to be tremendous buying opportunities in real estate with distressed assets, and I think that's going to be the name of the game in Q4. So but again, I do not think it's a good idea to listen to me about portfolios.
I think I think it's if you want those kinds of things, you probably should, you know, talk to others, talk to, talk to, you know, our RIA's, things like that. But to me, again, personal finance is really personal. And for me, I'm, you know, I'm pretty aggressive on some of the things that I have a lot of belief in.
So, okay. Well, I guess that's my last question. Before I go, I want to remind you that there's another actually, there's actually another podcast that I do now, which is, you know, it's kind of just taking something that I was spending a lot of time learning about and and and trying to process myself and turning it into another show so that I could share with you.
The show is called CPO, CPO. You can find it on pretty much all of the ways that you find this show and
hopefully on YouTube soon too. We haven't quite gotten to YouTube, I think, but the show is, I think, very interesting because, you know, we talk about wealth on the show, but I mean, you know, what do what is more what's more coveted than, you know, actually having health because then your wealth is actually useful.
So a lot of Sabio is really about various types of longevity and wellness type stuff on the science that we know out there. Really interesting stuff to me and would love for you to check it out again at Sabio with Buck Joffrey. Check it out and let me know if you like it. Give me a positive review. That's it for me.
This week on Wealth Formula podcast, this is Buck Joffrey signing off.
My husband has always loved collecting toys ‘funkos, legos, black series figures’ you name it he’s got it. It never bothered me before we had our baby but since she’s been born I’ve had to stay home to take care of her so we’ve been short on money. His dad always offers to help us out so the help is there if we need it but I feel like we are taking advantage of the help. Recently we were on a vacation trip to see his family while we were there I asked if we could go to a museum he said no because tickets were too expensive being $22 a ticket so I said I understood thinking we were going to be smart with the money. So I asked if we could go to the beach instead since it was free. Had a wonderful date at the beach btw. Later in the week we went to the mall with his siblings and cousins, we went into on of the stores that had exclusive funkos and squishmallows. I asked him if we could get our daughter a plushie but it was $25 and he said it was too expensive for a plushie so I put it down and continued to browse the store with him. Then he found a funko that he liked it was $225 I thought no way he is going to buy it because we are trying to save money right now. But he went ahead and told the cashier to ring it up and when I tried to tell him hey maybe we should think about this he said “I’ve been looking at this funko for about a month online and really want it.” So he got it. I told him later that was too much money to spend on a piece of plastic he’s saying I hurt his feelings for saying that and it’s his money so he can buy whatever he wants. Am I the Asshole ?
My SO and I live in the suburbs on 1/5 acre lots. We bought the house in 2018 and the previous owners left a note that they take care of some of the TNR (trapped neutered released) cats in the neighborhood. It was just two siblings that are pretty helpless as is so we just went along with it. We even called the organization that TNRs these cats just to make sure that caretaking them wasn’t unlawful or anything. They’re chill, don’t cause fights, and just kinda hang out. We’ve spoken to all our neighbors and have let them know if there’s ever an issue we’ll reconsider caretaking them. So far everything has been fine.
Fast forward to October of last year and a new couple moves into the rental home next door. In February two young (1 yr old~) unfixed male cats start crying in our windows at our cat and dog. They had collars, were social and everything. We noticed our neighbor’s garage was cracked so we knocked on their door and found out it’s their cats. It was late but I briefly let them know that I didn’t really want them in my yard because they’re antagonizing our inside pets. They claimed they had a farm where they could live and would bring them there.
They go away for two months then once the weather warms up they return. For about a week we just dealt with it hoping that if we shoo them away enough times either the cats or neighbors will get the idea but no success. Then one of them came into our backyard and attacked one of the ferals. I decided to send a text with the video of the fight and made it very clear I don’t want them on our property. I never got a reply. Our ferals start not showing up.
A week goes by and we leave for a 10 day vacation. The first day back the cats are once again crying in our windows. I catch the husband outside and tell him once again they’re not allowed on our property and I don’t agree with them being outside unfixed. He claimed he’s trying to find them a home but nobody wants them. He also claimed they can’t go inside because they pee everywhere. He’s convinced they’re feral even though on our first encounter in February we were able to pet them and they were rubbing up on us. I let him know that they’re not feral they’re just unfixed males. They’re known to mark everywhere. He asked for a few days and says he’ll work something out.
Five days later (yesterday) they show up again. We’re shooing them away and I can see the husband in his backyard. I told him to get his cats. I told him this is the last warning and if they show up again I’ll call community service to report them. We both get upset.
It’s important to note that our town has running at large laws defined by no pets off your property off a leash. Nobody has outside cats here except for the TNR cats other people take care of (they all have a clipped ear). I’ve never called authorities on anyone and it’s not something I want to do I just feel like I have no choice.
Hi all, I am posting this as a trip report more than anything else so enjoy the read :)
I have recently returned from a 9 days long trip to the Balkans. I let my excitement calm down over the past week or so and I am now ready to share my experience! I will be discussing the budget at the end!
I visited 3 countries: Kosovo, Montenegro and Serbia
8th until the 17th of May
8th-11th in Pristina, Prizren and Peje in Kosovo
12-15th in Budva, Montenegro
16th-17th in Belgrade, Serbia
The plan was that there was no plan. I knew what is where and what cool things I can do but unfortunately I didn't enjoy good weather as it was raining for 7 out of 9 days. In Kosovo I travelled with two friends from Korea which I will mention later. We had a rental car from Pristina Airport which allowed us to go around the country easily and allowed us to avoid places with worse weather.
As I was not travelling alone for parts of the trip, I was flexible with activities which unfortunately were very limited due to the aforementioned weather conditions. Whenever we could we were out and about.
The highlight of the trip for me was definitely Kosovo. Amazing place so different to any country I visited before! Beautiful villages, cities, nature and all of that within reach as the country is small. It makes for a good short trip especially if you have a car, which is very easy to get! Prizren was our favourite city. Good hikes, beautiful views and good food! We also stumbled upon a locally owned liquor store where we bought our first bottle of Rakia, lovely owner!
On the last day we returned our car in the morning and took a bus from the airport to the city centre from where we took a bus all the way to Budva, Montenegro passing through beautiful Albanian mountains on the way south.
I had high expectations for Budva and Montenegro in general. I knew the weather was not going to be great but I tried to make the most out of it. The bus from Kosovo arrived around 1am so I already knew my next day is going to be slow. On the first day I appreciated the beautiful surroundings. That is also the day when my experience started to go south. I got scammed out of 40euros by a taxi driver for a 15 minute ride, why does it always happen in beach destinations? I spent the day swimming in Sveti Stefan, drowning the sorrows of loosing 40 euros. The water wasn't warm but it was the only day of sunshine I had so I had to enjoy it, it was my first time at the Adriatic Sea after all!
I quickly realised that 3 days in Budva are too many especially considering the weather. After my nice swimming/sunbathing day I found myself mostly just strolling around the Old Town(which did surprise me in a good way!). I decided that going to Kotor or anywhere else in the area doesn't make much sense and I will leave it for another trip later this summer. I spent my evenings at the beach next to Old Town, drinking and listening to waves crashing against the walls until late hours of the night every night. That was probably the nicest thing about my stay in Budva, as for a person that doesn't do partying on trips like this, it was a pretty boring and empty tourist town.
Last day in Budva was the bus-catching day. I read a lot about bus services in the Balkans so I was prepared to just let things happen the way they should. And so my ticket was for a 12:30 bus from Budva to Bar. The bus didn't arrive until ~13:00 and I was told by the driver this is not the correct bus despite it being clearly stated on the ticket that it was. Happens, I thought. I asked the ''bus station person'' what to do and they just put me on the next but to Bar at around 13:30, which was completely fine by me.
Why would you go from a tourist town of Budva to a tourist town of Bar some may ask? Well, for the past two years I dreamed about experiencing the Belgrade-Bar railway journey, rumoured to be one of the Great Train Journeys. And so I was finally there, in a random restaurant/bacafe next to a very Soviet-looking Bar Train Station. I bought my ticket for a couchette in a 6-bed compartment for ~24 euros one-way all the way to Beograd Centar. It was 16:00 and my train, Lovcen, didn't leave until 19:00. I spent that time looking for an ATM, eating at a Burger King with a parking lot the size of a country and chilling next to the station, great atmosphere in that area! Very quiet and for someone who hasn't travelled to the east it was very surreal to see palm trees, soviet architecture and Cyrillic all around next to each other. I felt like it was a good time to say bye to Montenegro for now.
The ride was incredible. Yes, if you, like me, can't sleep anywhere outside of your own bed properly you're most likely not going to sleep on this train either. But the sleepless night was worth every minute of the breathtaking scenery of the Montenegrin Mountains as we climbed higher and higher. Having come in May, I only had about ~2 hours of daylight to look out the window and I made sure to not loose a single second of it. If you ever thought about taking the trip, I couldn't recommend it enough. Yes it's not the fastest, most comfortable way to get to Belgrade, but it was an experience I will not forget!
Takeaways from Montenegro:
- do not use ATM's other than the ones from a bank which name I don't remember but it started with an e. All other ATMs charge 5eur for every transaction no matter how much money you want to withdraw. That is another way that I lost ~40 euros.
- Restaurants add service charge not on the bill but by word of mouth which confused me many times but I complied since I didn't know the rules. If that is indeed customary then I would avoid pricier restaurants as the charge waiters were quoting was about 20% of the bill, way too much and a cold shower after Kosovo where I ate a 2-course meal with 2 of my friends for 14euros TOTAL.
- People gotta chill out, no need to get mad at a bus being late, its just the way it is, plan for that in advance and you will be perfectly fine
- More tourists than I expected, especially for May, the rainiest month
Next stop was the great city of Beograd. After my ~13hour train journey I arrived at Beograd Centar Station (confusing af!) at around 7:00am. My check-in time was 13:00 so I had a lot of time to kill even though I was already dead. I tried looking for a way to get to city centre because don't be mistaken, Belgrade Central Station is NOT in the centre. During my walk I found an exchange office which didn't scam me so I was off to a good start. With my 6000 dinars I strolled the city looking for food.
Later I saw the pedestrian, ''tourist'' area, the Castle, the riverside and some random streets and local markets. Overall, though I may be biased because of lack of sleep, Belgrade felt a little bit boring. Yes, I saw many people out and about but it felt too quiet. Serbia on the other hand, I will have to visit again as the people and the culture intrigue me!
I got tickets from London Luton to Pristina, Kosovo for around £40 and back from Belgrade Airport to London Luton for £45. I didn't hold back on anything really. I was booking AirBnb's on the day of arrival usually especially in Kosovo.
Car rental in Kosovo £135(fuel included, cost divided by 3 since I was with friends = £45)
AirBnb ~£90 in Kosovo
Budva accommodation ~£50
Belgrade accommodation ~£35
Train ticket from Bar to Belgrade in a sleeping car - £20
Scam ATM's - £40
Food is a tricky one since I didn't exactly track my expenses but I had a lot of seafood and kebabs on the trip. I would say ~£300 for the 9 days. Keep in minds I never cooked a single meal it's all for eating out.
All in all I spent about ~£600 for the 9 days of exploring which works out to between £65-70 per day. Not bad but I know next time what to do to lower the cost. I am fully aware this trip could have ended up £200 or more cheaper but I am satisfied with what I got.
Thoughts? Tips on next time in the area? I definitely need to go back, especially to Bosnia and Herzegovina and Albania. Hope you had an interesting read!
Out of my family I am the most well off. I would love to say that I worked hard and earned it all but the truth is more that I married well and then got very unlucky. I met a guy in university that was a bit of a nerd but very funny and sweet. We were friends and then I realized he was an exceptional person. I asked him out as more than friends. He was an engineer and probably one of the smartest people I've ever met. He passed away from an accident at his workplace caused by negligence and I recieved a huge settlement. I still work as a teacher but only because I love doing it. I don't need the money.
I bought a house on the beach in a vacation area where there are lots of older retired people and Airbnbs.
It is more house than I need but I love it there.
My family comes out to visit me every once in a while and they stay with me. But the thing is that, while I enjoy their visits, they expect me to pay for everything. They go through my fridge, pantry, freezer, and liquor cabinet. And they replace nothing.
So lately I've been making sure that there is very little in the house before their visits. Just the basics.
They think I'm being an asshole for not having anything for guests in the house. I know I'm being petty by not even having beer in the fridge but honestly I don't think I'm the asshole.
Hi everyone. A friend and I are taking a long weekend at the end of June to visit the Cape Cod area for the 1st time. We have a few options available but are unsure which would be best since the area would be new to us.
Some info that will help- This will be a girls trip to catch up with a friend that has moved away. We are in our 30s and very active. While on vacation we like to eat and shop at local restaurants and stores/boutiques. We love good cocktails and beer, but are not partiers.
I will list our options, can you guys let me know which would be the best place? Also, we have found rooms in each place that would work for us. So, room availability isn’t a factor here.
Option 1: Stay on Martha’s Vineyard the entire time. Take bus/taxi/etc if needed. We will also bike.
Option 2: Stay in Hyannis and get a rental car. Check out surrounding areas and ferry to MV one day.
Option 3: Stay in Brewster and get a rental car. Check out surrounding area.
Thanks for the help! Please let me know if this should be moved to a travel sub. Thanks again!
This is more of a vent than an ask for advice I just wasn't sure what flair to use. My husband and I are taking a short vacation to the beach soon (CA). We're bringing our 5 month old pup with us since it's a pet friendly town. While I should be excited for this fun trip, I'm so worried about our safety. Pitbull attacks seem to be on the rise everywhere. I'm only 5'2 with a 15lb pup so really no match against these dogs. Luckily my husband will be with us so I do feel a bit safer. We plan to only visit on leash beaches, parks, restaurants etc. Even then I know we could be attacked. But I also don't want to board our dog or leave him at the Airbnb the whole time. It's just so frustrating that we have to be fearful of these dogs. I posted about my previous dog (now deceased from old age) being attacked here. Since then I'm just so worried. That's all, thanks for listening to me.