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HLS
ParticipantI agree with you, I would just say most of the time, (not always)and in the right markets.
(Or at least it has been in the past, which isn’t a guarantee of future returns)When the property pencils out from day one, there is still risk, but it’s a safer bet than when you need some crazy appreciation to have the “investment” make sense.
There are about 40 states today that have properties that can be bought that will pencil out TODAY as a reasonable investment, based on ROI.
Absentee ownership isn’t for everyone, having property managers and being charged for little things that you cannot drive over and do drives some people nuts.
There are plenty of markets that had no bubble and even areas that have $100,000 +/- houses ALWAYS have renters looking to rent.
With mortgage rates historically low, and 25% down if you qualify, Buying a house for $135,000 that rents for $900-$1000 a month isn’t difficult at all. And the P&I payment on $100K is $616. Even with T&I, and a management fee, (you start off by paying $100 a month in principal) it’s not so crazy.
Don’t forget the lost opportunity value of your down payment (which isn’t much today)
You get a much larger (% of purchase price) tax deduction for depreciation in most other states where land is cheaper.
There is super opportunity and many OUT OF STATE areas probably have hit bottom, and will just be flat for awhile. Rentals in So Cal make no sense to me any more.
When I was kid, it was a simple theory. If you can at least break even PITI from day one, and get the depreciation, just take any appreciation as a bonus and let the tenants pay off your mortgage. Never EXPECT appreciation.
Slow and steady. Turtle & the hare etc..
I talked to a guy today who is out of pocket $5,000 a month on his rentals, and he has negative equity.
He foolishly took 15 YR mortgages on rental properties so has huge payments. Not something that I recommend.His RE “expert” told him TODAY that the local market is only going down another 5%. I said UH-HUH.
Plenty of opportunity out there for those with the stomach.
YEP, It’s a great time to buy,,,, just not around here.ParticipantI have absolutely no expectation that NCFU or any other credit union is going to fold.
FDIC did estimate that 100 to 200 BANKS could fail in the next 24 months. The are looking to rehire emloyess that were involved in the S&L meltdown.
Doesn’t mean it will happen.Having account insurance coverage costs the borrower nothing, not a penny.
The entire economy is built on debt and the expectation that people will pay their debts.
People who deal with NCFU or any other CU aren’t immune from not being able to pay their loans/debts.According to your statement, they should just say
“Hey, we’re strong, don’t worry, you don’t need any insurance coverage”At one time, Enron and Bear Stearns had flashy mission statements too, and Artur Anderson and KPMG were respected firms that were independant auditors.
Several rogue employees of ANY institution, esp financial, can bring them to their knees, it’s happened before and will happen again.
Do a search for Nick Leeson & Barings Bank. One guy brought down a 200+ year old investment bank.In the S&L crunch, more than 1,000 S&Ls failed, and the govt bailout was an estimated $150 billion.
11 days ago, the most recent US bank failed, with $1.8 billion in deposited funds. ANB Financial had about $39.2 million in 647 deposit accounts that EXCEEDED the federal deposit insurance limit.
These customers will have immediate access to their insured deposits, and will become creditors of the receivership for the amount of their uninsured funds.
These are just facts. If you want to have uninsured deposits, that is your choice.
ParticipantI have absolutely no expectation that NCFU or any other credit union is going to fold.
FDIC did estimate that 100 to 200 BANKS could fail in the next 24 months. The are looking to rehire emloyess that were involved in the S&L meltdown.
Doesn’t mean it will happen.Having account insurance coverage costs the borrower nothing, not a penny.
The entire economy is built on debt and the expectation that people will pay their debts.
People who deal with NCFU or any other CU aren’t immune from not being able to pay their loans/debts.According to your statement, they should just say
“Hey, we’re strong, don’t worry, you don’t need any insurance coverage”At one time, Enron and Bear Stearns had flashy mission statements too, and Artur Anderson and KPMG were respected firms that were independant auditors.
Several rogue employees of ANY institution, esp financial, can bring them to their knees, it’s happened before and will happen again.
Do a search for Nick Leeson & Barings Bank. One guy brought down a 200+ year old investment bank.In the S&L crunch, more than 1,000 S&Ls failed, and the govt bailout was an estimated $150 billion.
11 days ago, the most recent US bank failed, with $1.8 billion in deposited funds. ANB Financial had about $39.2 million in 647 deposit accounts that EXCEEDED the federal deposit insurance limit.
These customers will have immediate access to their insured deposits, and will become creditors of the receivership for the amount of their uninsured funds.
These are just facts. If you want to have uninsured deposits, that is your choice.
ParticipantI have absolutely no expectation that NCFU or any other credit union is going to fold.
FDIC did estimate that 100 to 200 BANKS could fail in the next 24 months. The are looking to rehire emloyess that were involved in the S&L meltdown.
Doesn’t mean it will happen.Having account insurance coverage costs the borrower nothing, not a penny.
The entire economy is built on debt and the expectation that people will pay their debts.
People who deal with NCFU or any other CU aren’t immune from not being able to pay their loans/debts.According to your statement, they should just say
“Hey, we’re strong, don’t worry, you don’t need any insurance coverage”At one time, Enron and Bear Stearns had flashy mission statements too, and Artur Anderson and KPMG were respected firms that were independant auditors.
Several rogue employees of ANY institution, esp financial, can bring them to their knees, it’s happened before and will happen again.
Do a search for Nick Leeson & Barings Bank. One guy brought down a 200+ year old investment bank.In the S&L crunch, more than 1,000 S&Ls failed, and the govt bailout was an estimated $150 billion.
11 days ago, the most recent US bank failed, with $1.8 billion in deposited funds. ANB Financial had about $39.2 million in 647 deposit accounts that EXCEEDED the federal deposit insurance limit.
These customers will have immediate access to their insured deposits, and will become creditors of the receivership for the amount of their uninsured funds.
These are just facts. If you want to have uninsured deposits, that is your choice.
ParticipantI have absolutely no expectation that NCFU or any other credit union is going to fold.
FDIC did estimate that 100 to 200 BANKS could fail in the next 24 months. The are looking to rehire emloyess that were involved in the S&L meltdown.
Doesn’t mean it will happen.Having account insurance coverage costs the borrower nothing, not a penny.
The entire economy is built on debt and the expectation that people will pay their debts.
People who deal with NCFU or any other CU aren’t immune from not being able to pay their loans/debts.According to your statement, they should just say
“Hey, we’re strong, don’t worry, you don’t need any insurance coverage”At one time, Enron and Bear Stearns had flashy mission statements too, and Artur Anderson and KPMG were respected firms that were independant auditors.
Several rogue employees of ANY institution, esp financial, can bring them to their knees, it’s happened before and will happen again.
Do a search for Nick Leeson & Barings Bank. One guy brought down a 200+ year old investment bank.In the S&L crunch, more than 1,000 S&Ls failed, and the govt bailout was an estimated $150 billion.
11 days ago, the most recent US bank failed, with $1.8 billion in deposited funds. ANB Financial had about $39.2 million in 647 deposit accounts that EXCEEDED the federal deposit insurance limit.
These customers will have immediate access to their insured deposits, and will become creditors of the receivership for the amount of their uninsured funds.
These are just facts. If you want to have uninsured deposits, that is your choice.
ParticipantI have absolutely no expectation that NCFU or any other credit union is going to fold.
FDIC did estimate that 100 to 200 BANKS could fail in the next 24 months. The are looking to rehire emloyess that were involved in the S&L meltdown.
Doesn’t mean it will happen.Having account insurance coverage costs the borrower nothing, not a penny.
The entire economy is built on debt and the expectation that people will pay their debts.
People who deal with NCFU or any other CU aren’t immune from not being able to pay their loans/debts.According to your statement, they should just say
“Hey, we’re strong, don’t worry, you don’t need any insurance coverage”At one time, Enron and Bear Stearns had flashy mission statements too, and Artur Anderson and KPMG were respected firms that were independant auditors.
Several rogue employees of ANY institution, esp financial, can bring them to their knees, it’s happened before and will happen again.
Do a search for Nick Leeson & Barings Bank. One guy brought down a 200+ year old investment bank.In the S&L crunch, more than 1,000 S&Ls failed, and the govt bailout was an estimated $150 billion.
11 days ago, the most recent US bank failed, with $1.8 billion in deposited funds. ANB Financial had about $39.2 million in 647 deposit accounts that EXCEEDED the federal deposit insurance limit.
These customers will have immediate access to their insured deposits, and will become creditors of the receivership for the amount of their uninsured funds.
These are just facts. If you want to have uninsured deposits, that is your choice.
ParticipantI cannot believe that anyone has a great deal of confidence in an institution…
You are free to do what you want, it’s your money.Credit Unions are NOT covered by FDIC, they have their own oversight. http://webapps.ncua.gov/ins/
You can probably get closer to 5% for CD’s today fron FDIC insured joints…. just don’t believe that there is NO risk, regardless of what the $10 an hour customer service rep tells you.
The best rates consistently seem to be online, never at a brick & mortar bank.
I wouldn’t even risk the interest above $100K in any one account.
When you realize what is behind the numbers on your statements, just understand that it ISN’T your cash that you deposited.
It’s the “Full Faith AND Credit of the US Govt”
Comforting ?? Good Luck eagle.
ParticipantI cannot believe that anyone has a great deal of confidence in an institution…
You are free to do what you want, it’s your money.Credit Unions are NOT covered by FDIC, they have their own oversight. http://webapps.ncua.gov/ins/
You can probably get closer to 5% for CD’s today fron FDIC insured joints…. just don’t believe that there is NO risk, regardless of what the $10 an hour customer service rep tells you.
The best rates consistently seem to be online, never at a brick & mortar bank.
I wouldn’t even risk the interest above $100K in any one account.
When you realize what is behind the numbers on your statements, just understand that it ISN’T your cash that you deposited.
It’s the “Full Faith AND Credit of the US Govt”
Comforting ?? Good Luck eagle.
ParticipantI cannot believe that anyone has a great deal of confidence in an institution…
You are free to do what you want, it’s your money.Credit Unions are NOT covered by FDIC, they have their own oversight. http://webapps.ncua.gov/ins/
You can probably get closer to 5% for CD’s today fron FDIC insured joints…. just don’t believe that there is NO risk, regardless of what the $10 an hour customer service rep tells you.
The best rates consistently seem to be online, never at a brick & mortar bank.
I wouldn’t even risk the interest above $100K in any one account.
When you realize what is behind the numbers on your statements, just understand that it ISN’T your cash that you deposited.
It’s the “Full Faith AND Credit of the US Govt”
Comforting ?? Good Luck eagle.
ParticipantI cannot believe that anyone has a great deal of confidence in an institution…
You are free to do what you want, it’s your money.Credit Unions are NOT covered by FDIC, they have their own oversight. http://webapps.ncua.gov/ins/
You can probably get closer to 5% for CD’s today fron FDIC insured joints…. just don’t believe that there is NO risk, regardless of what the $10 an hour customer service rep tells you.
The best rates consistently seem to be online, never at a brick & mortar bank.
I wouldn’t even risk the interest above $100K in any one account.
When you realize what is behind the numbers on your statements, just understand that it ISN’T your cash that you deposited.
It’s the “Full Faith AND Credit of the US Govt”
Comforting ?? Good Luck eagle.
ParticipantI cannot believe that anyone has a great deal of confidence in an institution…
You are free to do what you want, it’s your money.Credit Unions are NOT covered by FDIC, they have their own oversight. http://webapps.ncua.gov/ins/
You can probably get closer to 5% for CD’s today fron FDIC insured joints…. just don’t believe that there is NO risk, regardless of what the $10 an hour customer service rep tells you.
The best rates consistently seem to be online, never at a brick & mortar bank.
I wouldn’t even risk the interest above $100K in any one account.
When you realize what is behind the numbers on your statements, just understand that it ISN’T your cash that you deposited.
It’s the “Full Faith AND Credit of the US Govt”
Comforting ?? Good Luck eagle.
ParticipantThere is desperation in the air…
There are people who are buying T-BILLS at less than 2% return who are well aware of what FDIC institutions are offering.
The Discount Rate is what ELIGIBLE institutions can borrow from the FED at, which is 2.25% this week.
The Fed Funds Rate is what banks lend to each other at, which is currently 2.00%
The 11th District Cost Of Funds Index (COFI) is
the weighted average interest rate paid by 11th Federal Home Loan Bank District (CA,NV,NV) savings institutions for savings and checking accounts. It is currently 3.28%So, this means that the public is loaning to the higher paying banks who appear to be in some sort of trouble,
because the other banks may not trust them.If they were ELIGIBLE to borrow from the Federal Reserve or other banks, they sure wouldn’t be offering to pay double that rate because they are generous.
They can never borrow their entire assets from the FED, nor other banks, but if they were solid, they wouldn’t be offering such high rates. They do need a base of consumer deposits, but understand why some are offering MUCH higher rates than others.
When looking at 4.50% instead of 2.50%, it’s not just “2 points” it is 80% more….
Don’t assume that FDIC ins. means ZERO risk…Although we all expect FDIC to step up to the plate the next business day to offer coverage to a failed bank, this just may not be possible if it is a large bank.
I don’t know what the worst case scenario is,, I suppose that it is paying back the principal over time, without paying any interest on the funds ?
ParticipantThere is desperation in the air…
There are people who are buying T-BILLS at less than 2% return who are well aware of what FDIC institutions are offering.
The Discount Rate is what ELIGIBLE institutions can borrow from the FED at, which is 2.25% this week.
The Fed Funds Rate is what banks lend to each other at, which is currently 2.00%
The 11th District Cost Of Funds Index (COFI) is
the weighted average interest rate paid by 11th Federal Home Loan Bank District (CA,NV,NV) savings institutions for savings and checking accounts. It is currently 3.28%So, this means that the public is loaning to the higher paying banks who appear to be in some sort of trouble,
because the other banks may not trust them.If they were ELIGIBLE to borrow from the Federal Reserve or other banks, they sure wouldn’t be offering to pay double that rate because they are generous.
They can never borrow their entire assets from the FED, nor other banks, but if they were solid, they wouldn’t be offering such high rates. They do need a base of consumer deposits, but understand why some are offering MUCH higher rates than others.
When looking at 4.50% instead of 2.50%, it’s not just “2 points” it is 80% more….
Don’t assume that FDIC ins. means ZERO risk…Although we all expect FDIC to step up to the plate the next business day to offer coverage to a failed bank, this just may not be possible if it is a large bank.
I don’t know what the worst case scenario is,, I suppose that it is paying back the principal over time, without paying any interest on the funds ?
ParticipantThere is desperation in the air…
There are people who are buying T-BILLS at less than 2% return who are well aware of what FDIC institutions are offering.
The Discount Rate is what ELIGIBLE institutions can borrow from the FED at, which is 2.25% this week.
The Fed Funds Rate is what banks lend to each other at, which is currently 2.00%
The 11th District Cost Of Funds Index (COFI) is
the weighted average interest rate paid by 11th Federal Home Loan Bank District (CA,NV,NV) savings institutions for savings and checking accounts. It is currently 3.28%So, this means that the public is loaning to the higher paying banks who appear to be in some sort of trouble,
because the other banks may not trust them.If they were ELIGIBLE to borrow from the Federal Reserve or other banks, they sure wouldn’t be offering to pay double that rate because they are generous.
They can never borrow their entire assets from the FED, nor other banks, but if they were solid, they wouldn’t be offering such high rates. They do need a base of consumer deposits, but understand why some are offering MUCH higher rates than others.
When looking at 4.50% instead of 2.50%, it’s not just “2 points” it is 80% more….
Don’t assume that FDIC ins. means ZERO risk…Although we all expect FDIC to step up to the plate the next business day to offer coverage to a failed bank, this just may not be possible if it is a large bank.
I don’t know what the worst case scenario is,, I suppose that it is paying back the principal over time, without paying any interest on the funds ?
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