no loan without 20% down

[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?

[JustLurking]

Ray,

I do understand your point, but I think you may misunderstand my position. The way I really mitigate risk is by buying way less house than I can technically afford. I put down a big downpayment, but it is a small fraction of my overall assets. Using your Katrina example, I am the guy with the lower payment AND the cash. I could pay my mortgage off, but it wouldn’t make sense because I have a great rate from a refi several years ago. I sleep well because I don’t worry about the bills. Like Raptor, I am still a “slave” to a job that I really enjoy, but my goal is real financial independence. I haven’t really defined exactly what that means to me. I’m working on that.

Financially, I am probably way too conservative. But my career choices have been very risky. They have paid off for me, but the path I took is not for the faint of heart. Now that I have some financial success, I tend to play it pretty safe with my money. Right now I am accumulating cash because I plan to buy another property when I find what I want at a price I want to pay.

[JustLurking]

Ray,

I do understand your point, but I think you may misunderstand my position. The way I really mitigate risk is by buying way less house than I can technically afford. I put down a big downpayment, but it is a small fraction of my overall assets. Using your Katrina example, I am the guy with the lower payment AND the cash. I could pay my mortgage off, but it wouldn’t make sense because I have a great rate from a refi several years ago. I sleep well because I don’t worry about the bills. Like Raptor, I am still a “slave” to a job that I really enjoy, but my goal is real financial independence. I haven’t really defined exactly what that means to me. I’m working on that.

Financially, I am probably way too conservative. But my career choices have been very risky. They have paid off for me, but the path I took is not for the faint of heart. Now that I have some financial success, I tend to play it pretty safe with my money. Right now I am accumulating cash because I plan to buy another property when I find what I want at a price I want to pay.

[JustLurking]

Ray,

I do understand your point, but I think you may misunderstand my position. The way I really mitigate risk is by buying way less house than I can technically afford. I put down a big downpayment, but it is a small fraction of my overall assets. Using your Katrina example, I am the guy with the lower payment AND the cash. I could pay my mortgage off, but it wouldn’t make sense because I have a great rate from a refi several years ago. I sleep well because I don’t worry about the bills. Like Raptor, I am still a “slave” to a job that I really enjoy, but my goal is real financial independence. I haven’t really defined exactly what that means to me. I’m working on that.

Financially, I am probably way too conservative. But my career choices have been very risky. They have paid off for me, but the path I took is not for the faint of heart. Now that I have some financial success, I tend to play it pretty safe with my money. Right now I am accumulating cash because I plan to buy another property when I find what I want at a price I want to pay.

[JustLurking]

Ray,

I do understand your point, but I think you may misunderstand my position. The way I really mitigate risk is by buying way less house than I can technically afford. I put down a big downpayment, but it is a small fraction of my overall assets. Using your Katrina example, I am the guy with the lower payment AND the cash. I could pay my mortgage off, but it wouldn’t make sense because I have a great rate from a refi several years ago. I sleep well because I don’t worry about the bills. Like Raptor, I am still a “slave” to a job that I really enjoy, but my goal is real financial independence. I haven’t really defined exactly what that means to me. I’m working on that.

Financially, I am probably way too conservative. But my career choices have been very risky. They have paid off for me, but the path I took is not for the faint of heart. Now that I have some financial success, I tend to play it pretty safe with my money. Right now I am accumulating cash because I plan to buy another property when I find what I want at a price I want to pay.

[JustLurking]

Ray,

I do understand your point, but I think you may misunderstand my position. The way I really mitigate risk is by buying way less house than I can technically afford. I put down a big downpayment, but it is a small fraction of my overall assets. Using your Katrina example, I am the guy with the lower payment AND the cash. I could pay my mortgage off, but it wouldn’t make sense because I have a great rate from a refi several years ago. I sleep well because I don’t worry about the bills. Like Raptor, I am still a “slave” to a job that I really enjoy, but my goal is real financial independence. I haven’t really defined exactly what that means to me. I’m working on that.

Financially, I am probably way too conservative. But my career choices have been very risky. They have paid off for me, but the path I took is not for the faint of heart. Now that I have some financial success, I tend to play it pretty safe with my money. Right now I am accumulating cash because I plan to buy another property when I find what I want at a price I want to pay.

[raptorduck]

I will respond to many points when I return from my house hunting trip in SD as I am on my way to the Airport. You folks make good points.

Take my “poorest in neighborhood” comment with a grain of salt. It is based on a philisophy I have that I always want to be around folks to push me to improve (whether that be intelligence, wealth, or what have you). I agree about being surrounded by folks without work ethic, for example, is not a good thing. But that is not what I meant.

Another of my mottos to live by.

It is better to be thought an idiot among geniuses, than a genius among idiots.

I will report back on my house hunting trip and the points made on my return.

Interesting dialog

[raptorduck]

I will respond to many points when I return from my house hunting trip in SD as I am on my way to the Airport. You folks make good points.

Take my “poorest in neighborhood” comment with a grain of salt. It is based on a philisophy I have that I always want to be around folks to push me to improve (whether that be intelligence, wealth, or what have you). I agree about being surrounded by folks without work ethic, for example, is not a good thing. But that is not what I meant.

Another of my mottos to live by.

It is better to be thought an idiot among geniuses, than a genius among idiots.

I will report back on my house hunting trip and the points made on my return.

Interesting dialog

[raptorduck]

I will respond to many points when I return from my house hunting trip in SD as I am on my way to the Airport. You folks make good points.

Take my “poorest in neighborhood” comment with a grain of salt. It is based on a philisophy I have that I always want to be around folks to push me to improve (whether that be intelligence, wealth, or what have you). I agree about being surrounded by folks without work ethic, for example, is not a good thing. But that is not what I meant.

Another of my mottos to live by.

It is better to be thought an idiot among geniuses, than a genius among idiots.

I will report back on my house hunting trip and the points made on my return.

Interesting dialog

[raptorduck]

I will respond to many points when I return from my house hunting trip in SD as I am on my way to the Airport. You folks make good points.

Take my “poorest in neighborhood” comment with a grain of salt. It is based on a philisophy I have that I always want to be around folks to push me to improve (whether that be intelligence, wealth, or what have you). I agree about being surrounded by folks without work ethic, for example, is not a good thing. But that is not what I meant.

Another of my mottos to live by.

It is better to be thought an idiot among geniuses, than a genius among idiots.

I will report back on my house hunting trip and the points made on my return.

Interesting dialog

[raptorduck]

I will respond to many points when I return from my house hunting trip in SD as I am on my way to the Airport. You folks make good points.

Take my “poorest in neighborhood” comment with a grain of salt. It is based on a philisophy I have that I always want to be around folks to push me to improve (whether that be intelligence, wealth, or what have you). I agree about being surrounded by folks without work ethic, for example, is not a good thing. But that is not what I meant.

Another of my mottos to live by.

It is better to be thought an idiot among geniuses, than a genius among idiots.

I will report back on my house hunting trip and the points made on my return.

Interesting dialog

[SD Realtor]

Kewp undortunately you missed my point entirely. Not only did I not have any intent to imply real estate investment, I don’t believe I mentioned it at all in my post. The people I know all made money by varying means from taking risks and opening businesses, forming investment syndicates, purchasing mobile home parks, starting private practices, tax lien investments, selling freeking hot dogs are fairs, all kinds of stuff. Some of these people did it on their own, some did it with investors, some took out equity to do it, most all of them didn’t pump a 30-40% downpayment into the home they live in. All of them took risk. Some failed, many did not. I am quite envious of all of them for taking the risk.

I guess I should have spelled it out more clearly.

Show me where I said anything about real estate. Sorry you didn’t really get what I was trying to say.

SD Realtor

[SD Realtor]

Kewp undortunately you missed my point entirely. Not only did I not have any intent to imply real estate investment, I don’t believe I mentioned it at all in my post. The people I know all made money by varying means from taking risks and opening businesses, forming investment syndicates, purchasing mobile home parks, starting private practices, tax lien investments, selling freeking hot dogs are fairs, all kinds of stuff. Some of these people did it on their own, some did it with investors, some took out equity to do it, most all of them didn’t pump a 30-40% downpayment into the home they live in. All of them took risk. Some failed, many did not. I am quite envious of all of them for taking the risk.

I guess I should have spelled it out more clearly.

Show me where I said anything about real estate. Sorry you didn’t really get what I was trying to say.

SD Realtor

[SD Realtor]

Kewp undortunately you missed my point entirely. Not only did I not have any intent to imply real estate investment, I don’t believe I mentioned it at all in my post. The people I know all made money by varying means from taking risks and opening businesses, forming investment syndicates, purchasing mobile home parks, starting private practices, tax lien investments, selling freeking hot dogs are fairs, all kinds of stuff. Some of these people did it on their own, some did it with investors, some took out equity to do it, most all of them didn’t pump a 30-40% downpayment into the home they live in. All of them took risk. Some failed, many did not. I am quite envious of all of them for taking the risk.

I guess I should have spelled it out more clearly.

Show me where I said anything about real estate. Sorry you didn’t really get what I was trying to say.

SD Realtor

[SD Realtor]

Kewp undortunately you missed my point entirely. Not only did I not have any intent to imply real estate investment, I don’t believe I mentioned it at all in my post. The people I know all made money by varying means from taking risks and opening businesses, forming investment syndicates, purchasing mobile home parks, starting private practices, tax lien investments, selling freeking hot dogs are fairs, all kinds of stuff. Some of these people did it on their own, some did it with investors, some took out equity to do it, most all of them didn’t pump a 30-40% downpayment into the home they live in. All of them took risk. Some failed, many did not. I am quite envious of all of them for taking the risk.

I guess I should have spelled it out more clearly.

Show me where I said anything about real estate. Sorry you didn’t really get what I was trying to say.

SD Realtor

[Author]

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