- This topic has 95 replies, 11 voices, and was last updated 16 years, 4 months ago by NotCranky.
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May 28, 2008 at 4:46 PM #213218May 28, 2008 at 5:09 PM #213159daveljParticipant
I 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 #213181daveljParticipantI 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 #213238daveljParticipantI 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 #213082daveljParticipantI 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 #213208daveljParticipantI 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 #213268meadandaleParticipantBased 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 #213237meadandaleParticipantBased 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 #213111meadandaleParticipantBased 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 #213214meadandaleParticipantBased 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 #213189meadandaleParticipantBased 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 #213211EconProfParticipantBobS
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 #213236EconProfParticipantBobS
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 #213262EconProfParticipantBobS
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 #213135EconProfParticipantBobS
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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