Anybody else happy that they were banned ?

[Pandoras_box]

Originally Posted by ebaystealth1974

Right. Rentals properties are the perfect example.

Do you take $100,000 of your own cash and buy ONE property? Or do you pay 20% down on FIVE 100,000 dollar properties?

The rough comparison(no taxes, insurance, upkeep) is...

Scenario 1: Rent @ 800/month nets you 9600/year, or 9.6% ROI

Scenario 2: Rent @ 800/month nets you 9600/year each, time 5 properties = 48,000. Minus the 400/month payment on 5 $80,000 loans = $2000/month = 24,000/year in loan payments. 48,000 in rent minus 24,000 in payments = 24,000 in income. 24% ROI!

Same monetary investment, with nearly 3x the return.

Looks pretty on paper, but does it work as such in real life?
I mean, will lenders allow you the same conditions for properties 3, 4 & 5 as they did with 1 & 2?

Maybe it's different for you yanks, but here in the UK, it'd be challenging to accomplish. Also, 100k property here would not fetch you 800PCM, but again, you must have a different system over there.

[ebaystealth1974]

Originally Posted by Pandoras_box

you must have a different system over there.

This........

[Pandoras_box]

Originally Posted by ebaystealth1974

This........

I was looking for you to confirm that properties 3, 4 & 5 can be gotten on the same terms as properties 1 & 2.

By the time you apply for your 5th property, you'd already be in debt of 320k.
Can you confirm that:

1. A person with 500k and excellent credit can obtain five property loans back to back in one or two years?

2. If yes, would it be for the same APR as properties 1, 2, 3, etc?

[james_112233]

This thread has gone in a completely different direction lol.

[phaz0rz]

Derailing threads is what we are here for. It's probably the best course of action for a thread anyway. Helps to get real discussions going.

[ebaystealth1974]

Originally Posted by Pandoras_box

I was looking for you to confirm that properties 3, 4 & 5 can be gotten on the same terms as properties 1 & 2.

By the time you apply for your 5th property, you'd already be in debt of 320k.
Can you confirm that:

1. A person with 500k and excellent credit can obtain five property loans back to back in one or two years?

2. If yes, would it be for the same APR as properties 1, 2, 3, etc?

Sooooo many variables, really. It depends on the state, the location, the bank, the person, the credit, the collateral, the net worth, the BANKER. All sorts of things.

When I was growing up, we (my parents) acquired right at 30 properties in 4-5 years. Multiple properties were with ZERO money down.

It got to the point where the banker just said "we've put x amount in this account for you, just draw out whatever you need to purchase your properties with".

Things could surely be different today, but if you make your banks money, and pay your bills on time, they will break their back to work with you.

[solefoodbk]

Originally Posted by ebaystealth1974

Exactly. One of my main gripes with the school systems, and the lack of financial education as part of the current curriculum.

But the powers that be are getting rich from those type loans, and the general low Financial IQ citizens. So nothing will ever be done to change it. :(

There’s a famous speech from Jim Rohn about being a lender vs spender. Should google it... I’m sure some of you would appreciate it.

[phaz0rz]

Originally Posted by solefoodbk

There’s a famous speech from Jim Rohn about being a lender vs spender. Should google it... I’m sure some of you would appreciate it.

I think I found the speech. It's been scrubbed from YT for whatever reason.

Kinda sux because I would have much rather listened to it.

https://www.vexplode.com/en/motivati...ost-inspiring/

[phaz0rz]

Haven't read the whole thing but I agree with the gist of it. Borrower is a servant to the lender, and the lender always has the position of power.

[solefoodbk]

Originally Posted by phaz0rz

Haven't read the whole thing but I agree with the gist of it. Borrower is a servant to the lender, and the lender always has the position of power.

Exactly. Some of it is basic stuff but it’s still powerful. To me at least. I’m not sure if there is a video without a bunch of his other theories and that one only... but most people don’t view things that way so what’s common sense to one isn’t always to another.

Link to YouTube:

Jim Rohn Quotes Don't wish it were easier wish you were better - YouTube

Jim Rohn Quotes Don't wish it were easier wish you were better - YouTube

One of my favorite speeches by him.

[james13v]

Originally Posted by phaz0rz

Haven't read the whole thing but I agree with the gist of it. Borrower is a servant to the lender, and the lender always has the position of power.

lol The position of power, is from the one that can die tomorrow and that money the bank lent out, can go poof in an instant. And I'd much rather die, with owing the bank money.

[solefoodbk]

Originally Posted by james13v

lol The position of power, is from the one that can die tomorrow and that money the bank lent out, can go poof in an instant. And I'd much rather die, with owing the bank money.

Why would you not want to position yourself where you don’t owe anybody anything? If you could, why wouldn’t you? It’s called authentic freedom.

Guess to each is own.

[james13v]

Originally Posted by solefoodbk

Why would you not want to position yourself where you don’t owe anybody anything? If you could, why wouldn’t you? It’s called authentic freedom.

Guess to each is own.

Because I'm a business owner, and I think differently than a normal person would.

[solefoodbk]

Originally Posted by james13v

Because I'm a business owner, and I think differently than a normal person would.

Lol, clearly you don’t. Because what one has debt in a business in not debt personally if your smart with what your doing. And if you had enough money where you don’t need to lease something or take out a loan..and just buy it, again why wouldn’t you want that ability? You enjoy paying interest?

It’s just two ways to think about things. I lean towards a warren buffet approach.

[james13v]

Originally Posted by solefoodbk

Lol, clearly you don’t. Because what one has debt in a business in not debt personally if your smart with what your doing. And if you had enough money where you don’t need to lease something or take out a loan..and just buy it, again why wouldn’t you want that ability? You enjoy paying interest?

It’s just two ways to think about things. I lean towards a warren buffet approach.

yes actually, I do enjoy paying interest. Because whatever piddly interest I'm paying, doesn't come anywhere close to the value that borrowed money is getting me.

And as far as personal debt, with no interest in investment, and a large savings, sure. No debt is good. Cash is always king. But unless you have an amazing job, and huge savings, and have minimal need to spend money on anything.... Having to sell your car at the last minute, or refinance your house with whatever interest rate is available, assuming you even can do that in whatever state is the reason for you needing that money in a hurry in the first place...

Try getting a loan if you lost your job because you crashed your car and got badly injured.

[ebaystealth1974]

Originally Posted by solefoodbk

It’s just two ways to think about things. I lean towards a warren buffet approach.

Oh, you're a billionaire with endless funds? Yeah... I wouldn't pay interest, either, if I were in those shoes.

[solefoodbk]

Originally Posted by ebaystealth1974

Oh, you're a billionaire with endless funds? Yeah... I wouldn't pay interest, either, if I were in those shoes.

Do you need a billion dollars not to need a loan? Its a mindset, who cares who I use as a reference. My point is why would you want to be dependent on a bank when you could instead try to make enough money where you don't need a loan. If the thinking is you want to always be dependent, we just view things very very differently.

Honestly what your saying is pathetic to me. In reference to the other person saying its good to pay interest. And actually debt does carry over when you die, so the notion that because you take out loans and are happy paying interest on magical money, at some point someone has to pay... and if everyone didn't, and used your thought process, how would we have banks to offer loans in the first place?

Last thing I'll comment on, the idea that because your a business owner you should be taking out loans, its funny to me. Maybe when your a startup, but if your managing your money properly and are profitable, its called a savings account.

I'm happy with how I view things. Won't comment on this any further.

[james13v]

Originally Posted by solefoodbk

Do you need a billion dollars not to need a loan? Its a mindset, who cares who I use as a reference. My point is why would you want to be dependent on a bank when you could instead try to make enough money where you don't need a loan. If the thinking is you want to always be dependent, we just view things very very differently.

Honestly what your saying is pathetic to me. In reference to the other person saying its good to pay interest. And actually debt does carry over when you die, so the notion that because you take out loans and are happy paying interest on magical money, at some point someone has to pay... and if everyone didn't, and used your thought process, how would we have banks to offer loans in the first place?

Last thing I'll comment on, the idea that because your a business owner you should be taking out loans, its funny to me. Maybe when your a startup, but if your managing your money properly and are profitable, its called a savings account.

I'm happy with how I view things. Won't comment on this any further.

How do you think he made enough money to not need loans? BY GETTING LOANS.

The idea that being a business owner, you should take loans. Yeah. where are you getting this savings from? From your 9-5 job? I mean, I guess if you're lucky. But with all this buying car and hose with cash, good luck having a savings.

Sure, if you have a really good savings, and have a business with really good profit. But why would you risk all your cash on it? At least if you fail miserably, you can go into bankruptcy... But the point is.. LOANS ARE CHEAP MONEY. Why are you so worried about it? I mean, if your business is so profitable, you shouldn't be worried at all about taking out a loan, because you should be able to make enough profit to pay that loan off and have money to spare. RIGHT? If you're in a business that doesn't want to expand, don't get a loan. If your business is actually scalable, then loans are exactly the thing you need.

I'm more a fan of Trumps philosophy, as much as people now hate him.
" if I die and the bank owes me money, the bank wins. If I die and I owe the bank money, I win"

Sure, debt carries over when you die. If you're a moron and weren't able to separate yourself and your family from your debt.

Paying interest can sound pathetic to you all you want. While I pay my 5% interest on the $30,000 I borrowed, I'll be doubling that $30,000 very shortly. I'll pay the bank their piddly 5%, while I rake in the $10,000's in profits by using their cheap money. The idea of someone not willing to utilize such an obvious commodity, is pathetic to me.

[ebaystealth1974]

Originally Posted by solefoodbk

I'm happy with how I view things. Won't comment on this any further.

Great, because clearly you aren't even reading what you've been commenting on.

I never said OMG I ALWAYS WANNA OWE THE BANKS MONEY FROM THESE PERPETUAL L04NZZZZZZZZ!!!!!!!111

[phaz0rz]

haha, this is why I simply stepped back from the thread. There are clearly two parties here regarding debt, and I don't see any point in arguing about it past saying we agree to disagree.

[ebaystealth1974]

Originally Posted by phaz0rz

I don't see any point in arguing about it past saying we agree to disagree.

You agreed earlier? You've since changed your mind?

Originally Posted by phaz0rz

Fair enough. I concede your point, especially in a business context.

[ebaystealth1974]

Or are you just speaking of everyone in general?