- This topic has 95 replies, 11 voices, and was last updated 16 years, 7 months ago by
NotCranky.
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May 28, 2008 at 4:46 PM #213218May 28, 2008 at 5:09 PM #213159
davelj
ParticipantI kinda sorta agree with BobS on this one. IF you are dead set on buying property at some point AND you were dead set on using that HELOC money anyway, then paying a net 3% to keep it available isn’t a bad idea. After all, if prices are falling 10%-15% annually, then a 3% fee to retain your liquidity isn’t that bad a deal, right?
May 28, 2008 at 5:09 PM #213181davelj
ParticipantI kinda sorta agree with BobS on this one. IF you are dead set on buying property at some point AND you were dead set on using that HELOC money anyway, then paying a net 3% to keep it available isn’t a bad idea. After all, if prices are falling 10%-15% annually, then a 3% fee to retain your liquidity isn’t that bad a deal, right?
May 28, 2008 at 5:09 PM #213238davelj
ParticipantI kinda sorta agree with BobS on this one. IF you are dead set on buying property at some point AND you were dead set on using that HELOC money anyway, then paying a net 3% to keep it available isn’t a bad idea. After all, if prices are falling 10%-15% annually, then a 3% fee to retain your liquidity isn’t that bad a deal, right?
May 28, 2008 at 5:09 PM #213082davelj
ParticipantI kinda sorta agree with BobS on this one. IF you are dead set on buying property at some point AND you were dead set on using that HELOC money anyway, then paying a net 3% to keep it available isn’t a bad idea. After all, if prices are falling 10%-15% annually, then a 3% fee to retain your liquidity isn’t that bad a deal, right?
May 28, 2008 at 5:09 PM #213208davelj
ParticipantI kinda sorta agree with BobS on this one. IF you are dead set on buying property at some point AND you were dead set on using that HELOC money anyway, then paying a net 3% to keep it available isn’t a bad idea. After all, if prices are falling 10%-15% annually, then a 3% fee to retain your liquidity isn’t that bad a deal, right?
May 28, 2008 at 6:08 PM #213268meadandale
ParticipantBased on the original post, it didn’t sound like you had more than about $100k ‘liquid’. I don’t see any situation in which, even with cash, you are going to be able to buy anything for $100k even in a distressed sale.
Double or triple that and you might have a case. Of course, at that point, you are basically paying a mortgage payment on your money.
Good luck with that….
May 28, 2008 at 6:08 PM #213237meadandale
ParticipantBased on the original post, it didn’t sound like you had more than about $100k ‘liquid’. I don’t see any situation in which, even with cash, you are going to be able to buy anything for $100k even in a distressed sale.
Double or triple that and you might have a case. Of course, at that point, you are basically paying a mortgage payment on your money.
Good luck with that….
May 28, 2008 at 6:08 PM #213111meadandale
ParticipantBased on the original post, it didn’t sound like you had more than about $100k ‘liquid’. I don’t see any situation in which, even with cash, you are going to be able to buy anything for $100k even in a distressed sale.
Double or triple that and you might have a case. Of course, at that point, you are basically paying a mortgage payment on your money.
Good luck with that….
May 28, 2008 at 6:08 PM #213214meadandale
ParticipantBased on the original post, it didn’t sound like you had more than about $100k ‘liquid’. I don’t see any situation in which, even with cash, you are going to be able to buy anything for $100k even in a distressed sale.
Double or triple that and you might have a case. Of course, at that point, you are basically paying a mortgage payment on your money.
Good luck with that….
May 28, 2008 at 6:08 PM #213189meadandale
ParticipantBased on the original post, it didn’t sound like you had more than about $100k ‘liquid’. I don’t see any situation in which, even with cash, you are going to be able to buy anything for $100k even in a distressed sale.
Double or triple that and you might have a case. Of course, at that point, you are basically paying a mortgage payment on your money.
Good luck with that….
May 28, 2008 at 6:57 PM #213211EconProf
ParticipantBobS
meadandale: I see your point.
To clarify, the (roughly) $100k HELOC money would be added to about $150k other money, which should be enough to buy a decent rental or flip candidate at the bottom.
Once the property is fixed up, could flip it or get new first mortgage. Then…on to the next one.May 28, 2008 at 6:57 PM #213236EconProf
ParticipantBobS
meadandale: I see your point.
To clarify, the (roughly) $100k HELOC money would be added to about $150k other money, which should be enough to buy a decent rental or flip candidate at the bottom.
Once the property is fixed up, could flip it or get new first mortgage. Then…on to the next one.May 28, 2008 at 6:57 PM #213262EconProf
ParticipantBobS
meadandale: I see your point.
To clarify, the (roughly) $100k HELOC money would be added to about $150k other money, which should be enough to buy a decent rental or flip candidate at the bottom.
Once the property is fixed up, could flip it or get new first mortgage. Then…on to the next one.May 28, 2008 at 6:57 PM #213135EconProf
ParticipantBobS
meadandale: I see your point.
To clarify, the (roughly) $100k HELOC money would be added to about $150k other money, which should be enough to buy a decent rental or flip candidate at the bottom.
Once the property is fixed up, could flip it or get new first mortgage. Then…on to the next one. -
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