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Originally Posted by CuriousGeorg3
leverage
I do I doOriginally Posted by ThrowedInDaGame
You want to get rich? The L word is the tool. More so with securities than real-estate though
Technically ... when used with securities it's called "buying on margin". BE CAREFUL DOING THIS! You can make a killing, but youalso can lose your shirt in hurry.Originally Posted by ThrowedInDaGame
Leverage FTW.
You want to get rich? The L word is the tool. More so with securities than real-estate though
Originally Posted by The Rat Pack Is Back
you don't ever want to use your own money to pay off the mortgage. if the rent does not cover the mortgage, insurance, maintenance, vacancy factor, redo's.. etc, DON'T DO IT!
No they won't .... it takes several delinquent payments before a property goes into foreclosure. Banks want to avoid foreclosure proceedingsbecause they are expensive and time consuming. They only use this as a last resort if they see now other way to collect their principle.They most certainlywon't take a property if you miss one payment (though you will have to pay it eventually).Originally Posted by tiggerwoods
i'd like to mention your gut feeling on this was correct.. don't mess around with borrowing unless you have to
the pendulum swings both ways .. the losses on a leveraged bet will be worse than those that involve no borrowing .. plus it introduces the very real possibility of being completely wiped out (missing an interest payment on a loan will cause your position to be forfeited to the bank)
here is Buffett's take
http://www.valuestockplus.net/2008/10/warren-buffett-on-financial-leverage.html
not entirely true.Originally Posted by kix4kix
Actually if you are paying a mortgage you get tax breaks so it rarely makes sense to pay it fully off, atleast right away. Especially if you can afford to.
Each dollar of interest you pay to the bank (or mortgage company) is deductible from your taxable income, which saves you the 28 cents you would otherwise have paid to the government on that dollar as income tax. But think about that. You're giving up a full dollar to save 28 cents. Whereas, if you pay off your mortgage, you will indeed have to pay 28 cents federal income tax on each dollar not going to mortgage interest...but your getting to keep the other 72 cents (72%)! Ask yourself, would you rather pay a dollar (mortgage interest) to save 28 cents, or pay 28 cents (tax) to keep the dollar?
Check your state's laws....for investment properties you often have to have at least 20-25% of the purchase price.Originally Posted by ThunderChunk69
well since I already have you dudes here.
anyone own a home with section 8 (gov't assisted) tenants?
I was thinking of getting a home and renting it to some off the books section 8 people I know
Originally Posted by poblack
2 words... Cash Flow
Nj, but my $ isn't there yet.Originally Posted by 22 Rather Unique 22
What state are you in?Originally Posted by ThunderChunk69
thanks for the more insight.
Originally Posted by Dirtylicious
b/c often they don't have the full 100%...
Originally Posted by kingofny04
ExactlyOriginally Posted by Dirtylicious
b/c often they don't have the full 100%...
I obviously stopped reading after dirty's postOriginally Posted by ThunderChunk69
Originally Posted by kingofny04
ExactlyOriginally Posted by Dirtylicious
b/c often they don't have the full 100%...
you've read nothing