For the value investor...Buy and hold Verizon, A T & T, T-Mobile

C

Cabin111

If you want to listen, my mind is churning on possible investments.

Was chewing on this one for awhile. I have posted about the value in Verizon. Thought A. T. & T. over paid for Direct TV. My mind goes to why not own the pipes (DSL 4/5G) and the cell phone businesses?? What am I not seeing?? I live in California...They are giving away cell phones if you qualify!! It was mostly the Sprint/T-Mobile network. But why not own them all. Ride out the recession/depression with utility stocks. These cell phone companies are not going away. They all have contracts with Apple. In the depression, the utilities did OK. Also, I still like Duke Energy.

My minds races...In the depression people would buy up farms, then lease them back to the farmers. In a few years the farmers would buy back their farms, but the investors would keep the oil and mineral rights!!

Commercial Property
If you had the right tenants (a year from now), you could buy up downtown commercial properties for pennies on the dollar (from the bank). It's finding the right tenant that would be the problem. Find the right tenant and get good cash flow (maybe). Almost like 2008-2011 on residential property...But you have to have very good tenants in place. Ask for huge deposits. Buy hair salons, fitness centers...Lease them back. Make the sale of the property conditional upon the tenant getting the permit to open and move in hours after the close of escrow.

Please feel free to shoot down these ideas...Trying to see where there is untapped value.
 
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Cabin111 said:
If you want to listen, my mind is churning on possible investments.

Was chewing on this one for awhile. I have posted about the value in Verizon. Thought A. T. & T. over paid for Direct TV. My mind goes to why not own the pipes (DSL 4/5G) and the cell phone businesses?? What am I not seeing?? I live in California...They are giving away cell phones if you qualify!! It was mostly the Sprint/T-Mobile network. But why not own them all. Ride out the recession/depression with utility stocks. These cell phone companies are not going away. They all have contracts with Apple. In the depression, the utilities did OK. Also, I still like Duke Energy.

My minds races...In the depression people would buy up farms, then lease them back to the farmers. In a few years the farmers would buy back their farms, but the investors would keep the oil and mineral rights!!

Commercial Property
If you had the right tenants (a year from now), you could buy up downtown commercial properties for pennies on the dollar (from the bank). It's finding the right tenant that would be the problem. Find the right tenant and get good cash flow (maybe). Almost like 2008-2011 on residential property...But you have to have very good tenants in place. Ask for huge deposits. Buy hair salons, fitness centers...Lease them back. Make the sale of the property conditional upon the tenant getting the permit to open and move in hours after the close of escrow.

Please feel free to shoot down these ideas...Trying to see where there is untapped value.
More...


I agree on utilities, i am personally long T, but not sure about the smaller players as they can get and suffer severe losses while T and VZ are part of the dividends aristocrats list and do whatever it takes to maintain them also should they need cash they can sell something

Not sure on farms situation i have no knowledge or info there

ON properties, yes, except that finding the right tenant is the hardest thing, having manager 35 properties over the last 3 years i can tell you, dealing with lots of tenants or one concentrated tenant that leases everything from you is a PAIN IN THE ASS, they complain, nag, request this and that,, i guess perhaps what i am trying to get to if your a trader and you see the POTENTIAL in trading, its difficult to endure the dealings with tenants for few hundred or even thousands of dollars above your mortgage payment
 
In 08,09 and 10 we bought 83 houses in Oakland Ca. Each cost under $100k.
Then rented to Section 8 tenants.
Gave one house to a property manager for managing the whole package. The only thing we do is watch the checks show up.
No MBA nor BA needed.
 
Edmond said:
In 08,09 and 10 we bought 83 houses in Oakland Ca. Each cost under $100k.
Then rented to Section 8 tenants.
Gave one house to a property manager for managing the whole package. The only thing we do is watch the checks show up.
No MBA nor BA needed.
More...

Assuming you got them all at an average price of 90K, all you needed was about 8 million dollars capital to "watch these checks show up."

No, you didn't need a MBA or BA...You just needed money. After all, it takes money to make money. Thanks for playing the passive-aggressive game of "look at how easy we have it."
 
T’s underfunded pensions. Their debt/EBITDA just passed 4.0. They need purchase accounting to inflate their way out. They are fucked. Buying T shares is an IQ test fail.
 
systematictrader said:
I agree on utilities, i am personally long T, but not sure about the smaller players as they can get and suffer severe losses while T and VZ are part of the dividends aristocrats list and do whatever it takes to maintain them also should they need cash they can sell something

Not sure on farms situation i have no knowledge or info there

ON properties, yes, except that finding the right tenant is the hardest thing, having manager 35 properties over the last 3 years i can tell you, dealing with lots of tenants or one concentrated tenant that leases everything from you is a PAIN IN THE ASS, they complain, nag, request this and that,, i guess perhaps what i am trying to get to if your a trader and you see the POTENTIAL in trading, its difficult to endure the dealings with tenants for few hundred or even thousands of dollars above your mortgage payment
More...

And you have to deal with commercial building codes. Also the Americans With Disabilities Act and California issues could be a real problem...
 
PoopyDeek said:
T’s underfunded pensions. Their debt/EBITDA just passed 4.0. They need purchase accounting to inflate their way out. They are fucked. Buying T shares is an IQ test fail.
More...

True...Way too many employees. Direct TV and landlines are dying.
 
Edmond said:
In 08,09 and 10 we bought 83 houses in Oakland Ca. Each cost under $100k.
Then rented to Section 8 tenants.
Gave one house to a property manager for managing the whole package. The only thing we do is watch the checks show up.
No MBA nor BA needed.
More...


There you go u touched on something delicate, section 8 meaning checks guaranteed and 100 units meaning the scale to hire a manger and it not eating through profits i would say anything like 20 units or less though a manager become too expensive

more over your in California a state where housing is always impacted because state doesnt easily
Issue new licenses to build more and expand as compared with other vast states and most importantly
The state is heavily populated
 
Overnight said:
Assuming you got them all at an average price of 90K, all you needed was about 8 million dollars capital to "watch these checks show up."

No, you didn't need a MBA or BA...You just needed money. After all, it takes money to make money. Thanks for playing the passive-aggressive game of "look at how easy we have it."
More...


Hahahha i love it, true true ,, but also got to give him credit because it can he done with 2 million on 25% down investment properties
 
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