no loan without 20% down

[Raybyrnes]

SD Realtor

I am still trying to figure out why one tries to say there is less risk in your method as opposed to mine. I am actually arguing to reduce risk.

For instance if I were to take your sitauation, I would say that if you wnated to take on less risk use the mimimum amount of money for a down payment so that you have a maximum amount of cash available .

Then if you want to reduce the amount of debt that you have take the difference between what you would have put down and the minimum required and divde that into additionally voluntary payments that you make over the next 60 months.

Now in the interem of making those 60 months of additonal payment, if something unforeseen comes up you have cash on hand. therefore you are not guessing as to what the potential interest rate environment will be. Seems like I am an advocate of less risk. That doesn’t always mean less debt.

[kewp]

Pretty much everyone I know who has money, in fact has used leverage in one form or another to get there.

Watch the confirmation bias, SD. Btw, care to tell us how to use leverage to make a fortune in San Diego real-estate. In the current market?

I’m sure for everyone one of them there are a dozen (or more) bankrupt speculators. Or, at the very least, will soon be.

Yes, leverage works great on the upside. It works just as great when running in reverse, as millions of Americans are going to discover to their horror during the coming Great Unwinding.

But yes, you are right. Leverage is good when judiciously applied. I’m leveraged (a wee bit) on the short side of the collapsing housing bubble.

[kewp]

Pretty much everyone I know who has money, in fact has used leverage in one form or another to get there.

Watch the confirmation bias, SD. Btw, care to tell us how to use leverage to make a fortune in San Diego real-estate. In the current market?

I’m sure for everyone one of them there are a dozen (or more) bankrupt speculators. Or, at the very least, will soon be.

Yes, leverage works great on the upside. It works just as great when running in reverse, as millions of Americans are going to discover to their horror during the coming Great Unwinding.

But yes, you are right. Leverage is good when judiciously applied. I’m leveraged (a wee bit) on the short side of the collapsing housing bubble.

[kewp]

Pretty much everyone I know who has money, in fact has used leverage in one form or another to get there.

Watch the confirmation bias, SD. Btw, care to tell us how to use leverage to make a fortune in San Diego real-estate. In the current market?

I’m sure for everyone one of them there are a dozen (or more) bankrupt speculators. Or, at the very least, will soon be.

Yes, leverage works great on the upside. It works just as great when running in reverse, as millions of Americans are going to discover to their horror during the coming Great Unwinding.

But yes, you are right. Leverage is good when judiciously applied. I’m leveraged (a wee bit) on the short side of the collapsing housing bubble.

[kewp]

Pretty much everyone I know who has money, in fact has used leverage in one form or another to get there.

Watch the confirmation bias, SD. Btw, care to tell us how to use leverage to make a fortune in San Diego real-estate. In the current market?

I’m sure for everyone one of them there are a dozen (or more) bankrupt speculators. Or, at the very least, will soon be.

Yes, leverage works great on the upside. It works just as great when running in reverse, as millions of Americans are going to discover to their horror during the coming Great Unwinding.

But yes, you are right. Leverage is good when judiciously applied. I’m leveraged (a wee bit) on the short side of the collapsing housing bubble.

[kewp]

Pretty much everyone I know who has money, in fact has used leverage in one form or another to get there.

Watch the confirmation bias, SD. Btw, care to tell us how to use leverage to make a fortune in San Diego real-estate. In the current market?

I’m sure for everyone one of them there are a dozen (or more) bankrupt speculators. Or, at the very least, will soon be.

Yes, leverage works great on the upside. It works just as great when running in reverse, as millions of Americans are going to discover to their horror during the coming Great Unwinding.

But yes, you are right. Leverage is good when judiciously applied. I’m leveraged (a wee bit) on the short side of the collapsing housing bubble.

[Raybyrnes]

kewp

I would rather speak to debt as opposed to leverage. Shift risk around. For instance. My parents own their home and are not going to move out or rent. Therefore they can shift the risk of a depreciating investment to the bank by borrowing against it. Let’s say their place is worth 500K. By borrowing against the home they take on a partner (the bank) and simply pay the expense (5 to 6%)in terms of interest. They have effective shifted teh risk of a real estate collapse to the bank.

Now they need to be able to do something with that capital. That is the other side of the equasion.

[Raybyrnes]

kewp

I would rather speak to debt as opposed to leverage. Shift risk around. For instance. My parents own their home and are not going to move out or rent. Therefore they can shift the risk of a depreciating investment to the bank by borrowing against it. Let’s say their place is worth 500K. By borrowing against the home they take on a partner (the bank) and simply pay the expense (5 to 6%)in terms of interest. They have effective shifted teh risk of a real estate collapse to the bank.

Now they need to be able to do something with that capital. That is the other side of the equasion.

[Raybyrnes]

kewp

I would rather speak to debt as opposed to leverage. Shift risk around. For instance. My parents own their home and are not going to move out or rent. Therefore they can shift the risk of a depreciating investment to the bank by borrowing against it. Let’s say their place is worth 500K. By borrowing against the home they take on a partner (the bank) and simply pay the expense (5 to 6%)in terms of interest. They have effective shifted teh risk of a real estate collapse to the bank.

Now they need to be able to do something with that capital. That is the other side of the equasion.

[Raybyrnes]

kewp

I would rather speak to debt as opposed to leverage. Shift risk around. For instance. My parents own their home and are not going to move out or rent. Therefore they can shift the risk of a depreciating investment to the bank by borrowing against it. Let’s say their place is worth 500K. By borrowing against the home they take on a partner (the bank) and simply pay the expense (5 to 6%)in terms of interest. They have effective shifted teh risk of a real estate collapse to the bank.

Now they need to be able to do something with that capital. That is the other side of the equasion.

[Raybyrnes]

kewp

I would rather speak to debt as opposed to leverage. Shift risk around. For instance. My parents own their home and are not going to move out or rent. Therefore they can shift the risk of a depreciating investment to the bank by borrowing against it. Let’s say their place is worth 500K. By borrowing against the home they take on a partner (the bank) and simply pay the expense (5 to 6%)in terms of interest. They have effective shifted teh risk of a real estate collapse to the bank.

Now they need to be able to do something with that capital. That is the other side of the equasion.

[kewp]

Now they need to be able to do something with that capital. That is the other side of the equasion.

Haha, how about short the bank stock then default on the loan?

[kewp]

Now they need to be able to do something with that capital. That is the other side of the equasion.

Haha, how about short the bank stock then default on the loan?

[kewp]

Now they need to be able to do something with that capital. That is the other side of the equasion.

Haha, how about short the bank stock then default on the loan?

[kewp]

Now they need to be able to do something with that capital. That is the other side of the equasion.

Haha, how about short the bank stock then default on the loan?

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