Originally Posted by johnbryanpetersBurlyShirley said:
What's your plan, if any, to grow the capital needed to buy a home?
I'm Debt Free *****es!
- Thread starter BurlyShirley
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What's your plan, if any, to grow the capital needed to buy a home?
I already posted it. I wont be buying a home, I will be building it with my own two hands. I will raise the capital by working and living below my means.narlus said:
We're doing that right now. We've got a line of credit that we've invested. One year from now, we will be getting our money back plus a 74% return. Even after figuring for taxes and carrying costs, we will still be making over a 50% return on our money. Having the equity to leverage can be good if you're smart about it.BurlyShirley said:
the Inbred said:
Don't forget athletically gifted and boneheaded. Apparently I lie somewhere in between?
Track and field, what can't you do?!
Mybuddy and his wife just refinanced their house on an "interest only loan". They pay only the interest and reduced the monthly payment by $400.
I tried to get him to understand that the $400 a month he WAS paying on his house was the only good money he was spending. He thinks that he can just live off the equity his house is building and that will pay for his house some day.
I'm not the smartest guy when it comes to $$$, but even I know that's a bad idea.
I tried to get him to understand that the $400 a month he WAS paying on his house was the only good money he was spending. He thinks that he can just live off the equity his house is building and that will pay for his house some day.
I'm not the smartest guy when it comes to $$$, but even I know that's a bad idea.
Fixed.pixelninja said:
Wow, now that is a scam and a half right there.jimmydean said:
Actually, I guess what I posted WAS my plan. Kizzi is actually rich so I guess we'll just buy a house with cash or inherit a few or something.
that's always a better plan.BurlyShirley said:
btw, BS, buying land to build a house is usually the largest amount of capital...an acre of land in my area goes for ~400K...i'm sure it's worse in other regions...
Here, you can buy an acre for 2-5k or cheaper if you buy in bulk. I know a guy who just bought 170 acres for 200k. I only need about 20 or 30.narlus said:
Well, sort of. I understand that no investment is guaranteed, but the 74% is a pre-determined amount that all parties ageed on, and we have a contract signed by all parties saying as such. Sure, they can back out of the agreement and then we can put a lean (sp?) on their property and go round and round and maybe we'll get screwed in the end, but that's the fun of investing, isnt' it?johnbryanpeters said:
maybe, but that was kind of my point on borrowing AGAINST your house. If its fun to lose your home, then I guess I dont want fun.pixelninja said:maybe we'll get screwed in the end, but that's the fun of investing, isnt' it?
is that unimproved? what would it cost for grading, site prep, utility runs, etc?BurlyShirley said:
BurlyShirley said:
yup, but buying today will be better than waiting
oh, "no longer at risk" > try not payng your property/school taxes
It all depends of course on where it is. But the cost for those things is ALOT less (especially if you know construction) then where you're at. All this being said though, I highly doubt Ill remain in TN, so its kind of pointless to go on.narlus said:
I still dont want to live in any metro area, so costs will be similarly less wherever I move.
OBVIOUSLYdouglas said:
Your point is well taken. Fortunately, I'm not THAT much of a risk taker. If this deal does go sour, we won't lose our house. We'll have a few grand more that we owe on it, but we won't lose it.BurlyShirley said:
Life is a constant series of risks. Hopefully its a series of carefully calculated risks, but risks none-the-less.
Yeah, Im not one to really give financial advice. I like to keep things very simple and stable as a rule, so I tend to not like the idea of massive investments and things like that. Of course this means that Ill never be rich, but if you know what youre doing (and im sure you do) than go for it. It'd be nice to make that kind of coin.pixelninja said:
Eh, I just *hope* we know what we're doing. Come January 2007, we'll see...BurlyShirley said:
I find it interesting the wide range of methods people use to "further" or better their own personal lives...
Steve and I do everything we can to remain debt free, and by living simply (ie below our means), the extra money we have can go to fun or the periodic purchase of really nice treats for each other.
Another family member, same age as me, and his wife are selling their condo (got ahead by 50k, but that doesn't pay off the original mortgage, so they're still behind by 100k) and are buying a place for more than double the cost of the original. Neither of them are making more money, in fact, the wife is quitting to start her own business, and he just quit his job to take a 15/hour job.
My parents sold their longtime home which they had mortgaged several times and bought a big beautiful tudor on an acre for an awesome deal, but they did the interest only thing - which to me is the scariest way of buying a house...what do you do when the actual payment finally hits? It seems a silly assumption to think you're definitely going to get out of a crazy huge investment in time to not have to make enormous payments.
Then their's my older brother who tries to avoid debt, but has a mortgage and a new minivan and is supporting a household with two kids...the result...total scrooge. They do nothing, and own nothing other than a big empty house...
Steve and I do everything we can to remain debt free, and by living simply (ie below our means), the extra money we have can go to fun or the periodic purchase of really nice treats for each other.
Another family member, same age as me, and his wife are selling their condo (got ahead by 50k, but that doesn't pay off the original mortgage, so they're still behind by 100k) and are buying a place for more than double the cost of the original. Neither of them are making more money, in fact, the wife is quitting to start her own business, and he just quit his job to take a 15/hour job.
My parents sold their longtime home which they had mortgaged several times and bought a big beautiful tudor on an acre for an awesome deal, but they did the interest only thing - which to me is the scariest way of buying a house...what do you do when the actual payment finally hits? It seems a silly assumption to think you're definitely going to get out of a crazy huge investment in time to not have to make enormous payments.
Then their's my older brother who tries to avoid debt, but has a mortgage and a new minivan and is supporting a household with two kids...the result...total scrooge. They do nothing, and own nothing other than a big empty house...
Oh - the point of my post - each person described there (myself included) is convinced that their way is the best way to be and will try and sell other's on their way of being. I guess long term, only your own individual circumstances will prove whether you're right or wrong...
just curious...what sort of investment? sounds real-estate involved.pixelninja said:
It is. We know some people who have been doing the fix-n-flip thing for a few years who we've invested in before. This is actually our 3rd time investing in them. The first 2 times were shorter term (around 3 month turnaround), but we decided this time to let them use our money for a year to help us avoid capital gains tax. The first 2 investments went off without a hitch, except we're still waiting on the tax paperwork from last year's investment, but I'm not worried (yet) that we won't get it before April 15.narlus said:
how do they guarantee a return though? sounds like they are confident in a certain sales price, and are willing to eat some of their own profits if they don't reach it?
good luck.
good luck.
Thanks. So far, thats been their MO. They've become pretty good about estimating costs and returns, although in the first deal we did with them, they did end up eating a lot of their own profits. That's what happens when you sign contracts guaranteeing certain returns to investors and then hire a general contractor that has no idea on how to bid projectsnarlus said:
I was a *bit* scared of that deal, but to the best of my knowledge, they honored all of their commitments.I have a feeling that this will be the last of these dealings. From what I understand, they've built up enough of a cash reserve that they won't need outside investors to fund their projects, unless they decide to take on much bigger projects.
Jr_Bullit said:
my current plan is sell my house, and buy a smaller one in an area with lower taxes