Would you have done this?

[sdrealtor]

To my understanding, I can draw on my HELOC (a few 100k) regardless of whether value goes down. It does have a 15 year duration though.

[sdrealtor]

To my understanding, I can draw on my HELOC (a few 100k) regardless of whether value goes down. It does have a 15 year duration though.

[an]

30 year fixed jumbo rates can be found here. The lowest I see from that link is 6.125%.

And frankly, that’s your choice.
Isn’t the title of the thread Would you have done this?

I wasn’t saying investing in those “opportunity” is conservative. I’m saying putting it in saving is conservative. I’m also not referring to internet stocks or Krispy Creme. I’m referring to being an entrepreneur. I guess I’m not getting my point across correctly, so I’ll just concede.

[an]

30 year fixed jumbo rates can be found here. The lowest I see from that link is 6.125%.

And frankly, that’s your choice.
Isn’t the title of the thread Would you have done this?

I wasn’t saying investing in those “opportunity” is conservative. I’m saying putting it in saving is conservative. I’m also not referring to internet stocks or Krispy Creme. I’m referring to being an entrepreneur. I guess I’m not getting my point across correctly, so I’ll just concede.

[NotCranky]

Yes I am addicted to the blog and headed to the “poor house”.

An, Just think about this, Even though the 400k is hypothetically your’s. If the market tanks your money is gone and it’s “other people’s” money that you are trying to make the most of. In overpriced, risky enviornment like the San diego Housing Market that’s not a very good way to play it. Especially since you can not throw out the real possibility of becoming sick or losing your Job for longer than six months.When you are a really big fish then maybe you can mess around like this.

Using “other people’s” money in RE has been fantastic way to improve wealth but it is all about timing and understanding how to use it and luck. Timing is definitely not in play now. The luck will probably be bad luck.

[NotCranky]

Yes I am addicted to the blog and headed to the “poor house”.

An, Just think about this, Even though the 400k is hypothetically your’s. If the market tanks your money is gone and it’s “other people’s” money that you are trying to make the most of. In overpriced, risky enviornment like the San diego Housing Market that’s not a very good way to play it. Especially since you can not throw out the real possibility of becoming sick or losing your Job for longer than six months.When you are a really big fish then maybe you can mess around like this.

Using “other people’s” money in RE has been fantastic way to improve wealth but it is all about timing and understanding how to use it and luck. Timing is definitely not in play now. The luck will probably be bad luck.

[NotCranky]

I hope conceeding doesn’t mean you are trying to win the argument?
To that I would say.. don’t try to win the argument try to win the knowlege.

[NotCranky]

I hope conceeding doesn’t mean you are trying to win the argument?
To that I would say.. don’t try to win the argument try to win the knowlege.

[an]

I never view this as an argument. I was trying to toss up ideas on how to get my money to work harder for me. So any feed back is knowledge for me. Also, conceding means I will stop trying to explain my ideas since it’s not coming across correctly. Why would you think someone has to win or lose on here?

An, Just think about this, Even though the 400k is hypothetically your’s. If the market tanks your money is gone and it’s “other people’s” money that you are trying to make the most of.
Can you explain what you mean by market tanks? RE market or saving market? How is that any different than someone putting 20% down and lost all the down $ and more but you’re not selling and can afford the payment comfortably. I guess I’m trying to understand your argument here.

[an]

I never view this as an argument. I was trying to toss up ideas on how to get my money to work harder for me. So any feed back is knowledge for me. Also, conceding means I will stop trying to explain my ideas since it’s not coming across correctly. Why would you think someone has to win or lose on here?

An, Just think about this, Even though the 400k is hypothetically your’s. If the market tanks your money is gone and it’s “other people’s” money that you are trying to make the most of.
Can you explain what you mean by market tanks? RE market or saving market? How is that any different than someone putting 20% down and lost all the down $ and more but you’re not selling and can afford the payment comfortably. I guess I’m trying to understand your argument here.

[sdcellar]

AN– When you look at those rates you should look at the APR as that’s the actual cost of the money. I also assume for arguments like this that it’s unlikely that you can usually get the “best” rate (or whatever number you’re looking for). Not saying it’s impossible, just that when you need to look at the boundary conditions to make your math work, probably not the best place to be (gives you zero margin for, well, anything).

Yes, the title is “Would you have done this?” and I’ve pretty much made it clear that I would. I’m sorry, I was under the impression we could debate the basis of our answers.

And, yes, I know that you didn’t think those opportunities were conservative. I’m just picking on you because you’re contradicting your own arguments again (remember the liquid/not liquid thing?)

Hey, I get it. If I could have my house paid for *and* have close to a half-mil in the bank I’d be stoked. If you step back and think about it for a minute, that’s the kind of flexibility you’re arguing for. We both hate the idea of having that much money locked up to it either way.

[sdcellar]

AN– When you look at those rates you should look at the APR as that’s the actual cost of the money. I also assume for arguments like this that it’s unlikely that you can usually get the “best” rate (or whatever number you’re looking for). Not saying it’s impossible, just that when you need to look at the boundary conditions to make your math work, probably not the best place to be (gives you zero margin for, well, anything).

Yes, the title is “Would you have done this?” and I’ve pretty much made it clear that I would. I’m sorry, I was under the impression we could debate the basis of our answers.

And, yes, I know that you didn’t think those opportunities were conservative. I’m just picking on you because you’re contradicting your own arguments again (remember the liquid/not liquid thing?)

Hey, I get it. If I could have my house paid for *and* have close to a half-mil in the bank I’d be stoked. If you step back and think about it for a minute, that’s the kind of flexibility you’re arguing for. We both hate the idea of having that much money locked up to it either way.

[an]

Hey, I get it. If I could have my house paid for *and* have close to a half-mil in the bank I’d be stoked. If you step back and think about it for a minute, that’s the kind of flexibility you’re arguing for. We both hate the idea of having that much money locked up to it either way.

Thank you, that’s exactly what I was trying to say all along. I was trying to find ways to have my house paid for and have 400k in the bank. That’s similar to having your rental mortgage paid for by your tenant. It might not work out the first few years but MAYBE, with inflation, it will in the later years since your mortgage payment is fixed.

[an]

Hey, I get it. If I could have my house paid for *and* have close to a half-mil in the bank I’d be stoked. If you step back and think about it for a minute, that’s the kind of flexibility you’re arguing for. We both hate the idea of having that much money locked up to it either way.

Thank you, that’s exactly what I was trying to say all along. I was trying to find ways to have my house paid for and have 400k in the bank. That’s similar to having your rental mortgage paid for by your tenant. It might not work out the first few years but MAYBE, with inflation, it will in the later years since your mortgage payment is fixed.

[NotCranky]

“Can you explain what you mean by market tanks? RE market or saving market? How is that any different than someone putting 20% down and lost all the down $ and more but you’re not selling and can afford the payment comfortably.”

“Market tanks “is related to real estate, savings market stays there MAYBE, but since your house lost equity and the debt still includes those 400K Your money is gone and you are now holding the banks money in your savings.You lose your job and have to use the “savings” and you are spending other peoples money and are in trouble.

Is it any different than losing your down payment?
Losing your down payment is burning the candle at one end. Losing equity and spending “other peoples” money in an emergency is burning the candle from both ends.And if the savings market does “tank “get crisis counseling fast.I hope that makes sense? I too am getting fatigued on this one! No offense.

[Author]

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