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Apex Mortgage Capital (AXM) Message Board

  • d_ower d_ower Aug 12, 2002 4:41 PM Flag

    Reits

    Hey all,

    Who are the idiots recommending a sell on AXM?

    Well, let's see, the housing market is going insane...interest rates are at record lows...property appreciation is at record levels...

    AXM's numbers are fantastic, oh and they pay a 13-15% dividend as well.

    In an unstable market as we are in, this is a safe and smart play.

    If you hate money, than sell AXM, and if you want to lose it, go ahead and short the stock :-). This stock will be between 18-21 by Christmas. Sell then and cash in.

    God bless and good bargain hunting,

    Dave

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • in my humble opinion

    • what does IMHO mean?

    • Like for like can include most any kind of real estate--bare land, forest, residential, commercial.
      I did a Starker (delayed 1031) exchange a few years ago. Exchanged some undeveloped mountain land in California for residential income property in Oregon. The purchase price of the land was carried forward to the new property and we began a brand new depreciation schedule based on the value of the new purchase. The IRS was satisfied.
      Advice: Get a good CPA or tax attorney to keep you from screwing it up. Some brokers are knowledgeable and some are not.

      Happy investing!

    • Sorry-I did not see your explanation and it certainly was clearer than mine!

    • It does apply to lots but you must always exchange "like" properties. House for house, lot for lot.
      It is based on the value of the property not the mortgage.

    • You can take Nothing away from the table-all cash has to go into the 1031. Second problem is depreciation stays where it was on the house sold. I have refinanced prior to sale to get free cash but I don't know of any other way to access your equity. And you really do get locked into the process since all that accumulated depreciation gets added back in once you step off the track. IRS always wins.

    • That is great information, thank you. I didn't know the full parameters of the exchange and sitll have one more question...

      What if the mortgages are refi'd and the person selling the higher valued property reduces his mortgage amount and the person with the lower valued property refi'd and increased that amount equaled to the boot. would that offset taxes? Or is it just based on property values alone?

      I would assume this applies to land lots as well.

    • In an exchange, ie., Starker, of "like properties", boot is the amount of value one receives relative to the other.
      For ex: you own rental property A and I own rental property B. If we sell, we both owe cap gains taxes. If we exchange, we now own new properties at the new basis. We have avoided cap gains if we now sell. But if my property B is worth 50K at the time of exchange and yours is worth 75K, then I owe you 25K at the time of the exchange. 25K is the "boot" and is taxable to you at the time of the exchange.

    • >>>1031's don't free up cash unless you refi before the exchange.<<<

      Exactly.


      >>>Big rule-no boot<<<

      I am not familiar. Can you elaborate, please?



      >>>If you are talking about taxes saved-not real money and you better not ever stop-taxes are cumulative.<<<

      Some of the largest RE investors in this country swear by this theory of holding debt strictly for the write offs. I have learned that a positive cash flow with a loss is probably the easiest way to make money. Of course all of our learning processes differ.

      But tell me what you mean by big rule no boot. Thanks.

    • Actually, I don't know enough about NLY to tell you exactly how they operate. As for MBS REITs, I am long AXM, FB, IMH, HCM. HCM is probably the oddball here in that they do get involved with higher risk loans, but they have some upside potential due to their online procurement biz that swaps loans.

      If you visit NLY's board, I am sure their message board is as every bit informative as IMH's or TEI's.

      NTAP took a nice leap today, but quite frankly I am still speculative about their short term futures. Speaking of storage, I used to love EMLX and actually almost fell in love with the company because it made me so much money on calls and LEAPs. (I took a big bite the day that it crashed from a rumored message post on Yahoo about the CEO resigning, it dropped 40 pts within an hours time... by the end of the day, it ended even)

      I want to wait till these tech stocks become in favor. I don't like trying to buy at the bottom even though I just attempted recently with INTC because of their upside potential (and limited dividend payments).

      I rarely trade in and out of stocks, but the tech sector might warrant that currently. I traded XEL within 6 trading sessions recently only to make 3 pts. I could have made more, but I don't like speculating.

      Good luck.

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