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surveyor
Participantantioch
If you sell, maybe you can offer seller financing for those who are unable to get traditional financing. Or you could also offer rent-to-own conditions.
Not ideal, and certainly risky I admit.
I ran some numbers that involved you re-leveraging the property and using it as a rental. Assuming you invested the leverage into cash flow out of state properties, I had about a $1000/mo. cash flow. It’s difficult to calculate the rate of return because the money you invest in is so low, resulting in rates of returns of 100%.
Still, you may not want to invest in more real estate anyways…
Participantantioch
If you sell, maybe you can offer seller financing for those who are unable to get traditional financing. Or you could also offer rent-to-own conditions.
Not ideal, and certainly risky I admit.
I ran some numbers that involved you re-leveraging the property and using it as a rental. Assuming you invested the leverage into cash flow out of state properties, I had about a $1000/mo. cash flow. It’s difficult to calculate the rate of return because the money you invest in is so low, resulting in rates of returns of 100%.
Still, you may not want to invest in more real estate anyways…
Participantforesight 2
It aint foresight and don’t try to pretend that it is.
Response: DUH.
Agreed, those items you listed are not components of foresight and nor did I claim them to be. However, there are many who did not go that route. They’ve been able to make better use of their available resources and created more wealth for themselves. That is what I use for my basis of foresight. I think there are a lot more of these type of people than we think.
Participantforesight 2
It aint foresight and don’t try to pretend that it is.
Response: DUH.
Agreed, those items you listed are not components of foresight and nor did I claim them to be. However, there are many who did not go that route. They’ve been able to make better use of their available resources and created more wealth for themselves. That is what I use for my basis of foresight. I think there are a lot more of these type of people than we think.
Participantforesight 2
It aint foresight and don’t try to pretend that it is.
Response: DUH.
Agreed, those items you listed are not components of foresight and nor did I claim them to be. However, there are many who did not go that route. They’ve been able to make better use of their available resources and created more wealth for themselves. That is what I use for my basis of foresight. I think there are a lot more of these type of people than we think.
Participantforesight?
I think people felt like they deserved to be millionaires when their 3br 2ba 1500sq ft house went from $400,000 to $1,000,000 in value, as if they earned it. They didn’t do anything!!
Not quite true. They saved up money for a downpayment, they cleared their finances, they maintained good credit, and were fiscally responsible. They were also able to maintain the payments, property taxes, and utilities. They had the foresight to buy a property when they did, when others were telling them otherwise.
Their timing may have been good, but you shouldn’t minimize the hard work they did.
Disclaimer: the above is not a justification for higher prices.
Participantforesight?
I think people felt like they deserved to be millionaires when their 3br 2ba 1500sq ft house went from $400,000 to $1,000,000 in value, as if they earned it. They didn’t do anything!!
Not quite true. They saved up money for a downpayment, they cleared their finances, they maintained good credit, and were fiscally responsible. They were also able to maintain the payments, property taxes, and utilities. They had the foresight to buy a property when they did, when others were telling them otherwise.
Their timing may have been good, but you shouldn’t minimize the hard work they did.
Disclaimer: the above is not a justification for higher prices.
Participantforesight?
I think people felt like they deserved to be millionaires when their 3br 2ba 1500sq ft house went from $400,000 to $1,000,000 in value, as if they earned it. They didn’t do anything!!
Not quite true. They saved up money for a downpayment, they cleared their finances, they maintained good credit, and were fiscally responsible. They were also able to maintain the payments, property taxes, and utilities. They had the foresight to buy a property when they did, when others were telling them otherwise.
Their timing may have been good, but you shouldn’t minimize the hard work they did.
Disclaimer: the above is not a justification for higher prices.
Participant=fwack=
I got wacked pretty well by the market last week. Lost about $20k, but I got half of it back now. I just kept buying. Couldn’t buy much though – I don’t have a lot of cash lying around…
Participant=fwack=
I got wacked pretty well by the market last week. Lost about $20k, but I got half of it back now. I just kept buying. Couldn’t buy much though – I don’t have a lot of cash lying around…
Participantorder
The priority/order which it was told to me was this:
1. Free money (401k matches)
2. Non-Taxable (Roth IRA)
3. Tax Deferred (the rest of the 401k, Regular IRA)
4. Taxable (Brokerage, Savings, CD).Participantorder
The priority/order which it was told to me was this:
1. Free money (401k matches)
2. Non-Taxable (Roth IRA)
3. Tax Deferred (the rest of the 401k, Regular IRA)
4. Taxable (Brokerage, Savings, CD).Participanthere you go:
ROE = (CF + AP + LR + TX)/DP
ROE-return on equity/investment
CF-cash flow
AP-appreciation
LR-loan reduction
TX-tax benefit
DP-downpaymentYou can use this formula to evaluate the better return between properties or to choose superior returning properties. In general, anything about ROE greater or equal to 20% is good.
Participanthere you go:
ROE = (CF + AP + LR + TX)/DP
ROE-return on equity/investment
CF-cash flow
AP-appreciation
LR-loan reduction
TX-tax benefit
DP-downpaymentYou can use this formula to evaluate the better return between properties or to choose superior returning properties. In general, anything about ROE greater or equal to 20% is good.
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