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Old 04-26-2018, 04:07 PM
 
10,276 posts, read 6,519,194 times
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Any deposited money is insured up to $100K or more, I don't know it it's been updated. Any money risked thru the bank can be lost. Whatever you do don't leave your money at home, a fire or theft will wipe that away faster than the stock market. Even a safe deposit box in a bank is safe, some say you can't keep cash in them but they can't watch what you put in them.

The banks already failed last time with the housing crisis and they were too big to fail so the government had to bail them out. If anything else happens we will just create more money out of thin air like they do now. The banks won't fail from the same housing crisis that happened last time unless the government relaxes rules so that anyone qualifies.

Like the other guy said there are safer investments and your best investment is your own home. That way you pay the bank rent for 30 years, after 15 years and inflation your mortgage payment will seem like nothing, and when you are done paying it's your home to live in rent free with just taxes and insurance and upkeep, and you have an asset if you took care of it.
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Old 04-26-2018, 05:53 PM
 
Location: Saint John, IN
10,647 posts, read 3,324,377 times
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Quote:
Originally Posted by Kavalier View Post
I don't know if it's a dream.



I think a lot of the scattered questions here are stemming from this premise: I have a sum of money; I don't really trust the stock market; I was told many years ago from a wealthy guy that buying land/reality was what he did with all his money.



I mean, that's kind of where I'm coming from. I don't even know how much I trust banks for that matter anymore...so If I can't keep a large sum of money in my residence. What options do I have at that point? I don't know if I like the idea of buying gold/silver and sticking it in a safe deposit box.


I guess I just want to sort of find out what this reality situation is all about.
Banks are FDIC insured up to $250k, so unless you have more than that in any one bank your money is safe in a bank account and much safer than if itís in your home!
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Old 04-26-2018, 06:08 PM
 
24,956 posts, read 11,634,183 times
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So....I had a friend that did this:

He would buy some property that could have a mobile home placed on it. Or had a mobile home on it already if cheap. Buy a relatively new used mobile home that he could move and could inspect. Moved it on the property.

He would then rent to own to folks. Know what happened? 80% of the time they ended up just renting, but at a slightly higher rate, and they too care of maintenance. Usually with 20% down. He "financed" them.

He could warn them about how often people ended up cancelling and walking away (and he did), tell them his business model, etc. Everyone thought they were different. inevitably they were not the majority of the time. And when they were? he made his money back, plus his interest. Did he have some issues? Absolutely. Once wrote a entire mobile home off. But overall he made good money-and gave 20% of the people who bought from him a home they couldn't have bought because of their bad credit.
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Old 04-26-2018, 09:34 PM
 
Location: Minnesovia
2,505 posts, read 640,463 times
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Quote:
Originally Posted by jackmccullough View Post
Don't take this the wrong way, but you don't know enough to do this.


From what I can tell you don't know anything about what's involved in investing in real estate (or anything else), you don't have the construction knowledge to do the work yourself, you don't know how to value the property or manage it once it becomes habitable.
.
That's why I started this thread. Unless of course you come out of a womb a realtor, and realtors were born that way and didn't have to learn like every other Tom, Dick and Harry.


Believe it or not, there are landlords in my family. My grandmother owned and rented properties; her sister (my great aunt) owned and rented properties as well. My father and mother owned and rented a duplex before I was born (though my dad said something to the effect that he got rid of it once his vacation was ruined once because of a leak in the duplex and he had to cancel it to tend to the leak, or something to that effect).


My grandmother's properties were as clean as it got, as far as I could recall. She kept them immaculate. That side of my family - they are the side of my family that is several states away, so I rarely see any of them ever, and my grandmother and aunt (and uncle) are long gone, so I can't ask them. I indeed to intend to contact one (or more) of my cousins from down that way but I figured it couldn't hurt to start a simple thread (or two) here to ask some harmless questions. After all that is somewhat what CD is for.



I'm just bouncing some ideas around here and I'm grateful for those here who have posted.
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Old 04-26-2018, 09:39 PM
 
Location: Minnesovia
2,505 posts, read 640,463 times
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Quote:
Originally Posted by charlygal View Post
Are you one of those people that believe the entire US financial system is going to collapse any day now? Do you really think it will be easy to establish gold as legal tender or anything similar? How do you know everything will revert back to the gold standard.
I see what's going on in this country and there are some things that most people aren't hip to or they're too busy working or raising their children to be bothered or alarmed by it.



Suffice it to say I'd just rather have something tangible.



Land, if that was all I could get. I Googled 'land northern MN' earlier and saw some interesting stuff for fairly affordable. Anything is better than some piece of paper that says I have _____ building equity, or whatever.



Yes, I get I should diversify and all that - and certainly I will dip into the market a little, perhaps - but I have my general reasons I have little faith in that whole racket.


Don't get me wrong my father (my mother passed not long ago) and mother are into investment and all that, I just would rather "invest" in land or property or something along those lines.
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Old 04-27-2018, 12:11 AM
 
167 posts, read 72,867 times
Reputation: 371
First thing. Invest in some basic life skills.

Go back to the skills I noted earlier and add:

Change out a sink and faucet

Replace a dishwasher

Repaint an entire house

Regrout shower tile
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Old 04-27-2018, 05:21 AM
 
Location: Saint John, IN
10,647 posts, read 3,324,377 times
Reputation: 12754
Quote:
Originally Posted by greywar View Post
So....I had a friend that did this:

He would buy some property that could have a mobile home placed on it. Or had a mobile home on it already if cheap. Buy a relatively new used mobile home that he could move and could inspect. Moved it on the property.

He would then rent to own to folks. Know what happened? 80% of the time they ended up just renting, but at a slightly higher rate, and they too care of maintenance. Usually with 20% down. He "financed" them.

He could warn them about how often people ended up cancelling and walking away (and he did), tell them his business model, etc. Everyone thought they were different. inevitably they were not the majority of the time. And when they were? he made his money back, plus his interest. Did he have some issues? Absolutely. Once wrote a entire mobile home off. But overall he made good money-and gave 20% of the people who bought from him a home they couldn't have bought because of their bad credit.
Rent to own is the biggest scam out there, IMHO! Of course it works for some, but very few. Most pay the owner a huge down payment and monthly rent, only to end up walking away with nothing because they still canít get s mortgage years later.
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Old 04-27-2018, 07:16 AM
 
Location: Virginia
3,462 posts, read 1,648,142 times
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Quote:
Originally Posted by Kavalier View Post
I see what's going on in this country and there are some things that most people aren't hip to or they're too busy working or raising their children to be bothered or alarmed by it.



Suffice it to say I'd just rather have something tangible.



Land, if that was all I could get. I Googled 'land northern MN' earlier and saw some interesting stuff for fairly affordable. Anything is better than some piece of paper that says I have _____ building equity, or whatever.



Yes, I get I should diversify and all that - and certainly I will dip into the market a little, perhaps - but I have my general reasons I have little faith in that whole racket.


Don't get me wrong my father (my mother passed not long ago) and mother are into investment and all that, I just would rather "invest" in land or property or something along those lines.
Oh geez, land by itself is an even worse investment than a house if you're just going to hold on to it in most cases. (I won't say ALL. My late H and I bought a lot to build on and then resold it and made over $40K on it because the county was booming, but that's not the norm.) The thing with putting your money into property and expecting it to produce an increase is that the money has to DO something; i.e., produce income via rent or a higher sales price via growth or value. If the property is a house you will need to do some, or a lot of renovation in order to create that increase in value upon sale. That takes capital, which you don't have, or sweat equity, which you need to acquire the skills to properly execute. It's no use putting in a lot of labor but doing a lousy job. You need to learn from some source: books, tradesmen, relatives, etc. before attempting a renovation yourself because you have no knowledge or experience with homes AT ALL.

Don't invest in a home until you have done a boatload of research beforehand or you might end up throwing your money away and throwing even more money after it. Personal residential real estate can eat up a ton of bucks; "flipping" a house can do so a lot faster when you're on a timeline and the house doesn't sell and you're still paying carrying costs.
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Old 04-27-2018, 07:19 AM
 
5,682 posts, read 7,272,878 times
Reputation: 3198
Quote:
Originally Posted by Kavalier View Post
I see what's going on in this country and there are some things that most people aren't hip to or they're too busy working or raising their children to be bothered or alarmed by it.



Suffice it to say I'd just rather have something tangible.



Land, if that was all I could get. I Googled 'land northern MN' earlier and saw some interesting stuff for fairly affordable. Anything is better than some piece of paper that says I have _____ building equity, or whatever.



Yes, I get I should diversify and all that - and certainly I will dip into the market a little, perhaps - but I have my general reasons I have little faith in that whole racket.


Don't get me wrong my father (my mother passed not long ago) and mother are into investment and all that, I just would rather "invest" in land or property or something along those lines.
"Land" and a $17K house are pretty different.

If you just want somewhere to keep some money that's not a bank, I guess buying some land may not be the worst idea in the world. You shouldn't have much maintenance costs other than property taxes. You realize you can search for lots on realtor.com or other RE sites, right and not just google?

But, generally speaking I think many would agree that the market is at a fairly high point right now, so unless you plan to hold it for 10+ years (or more), or it is in an up-and-coming area, it may not appreciate much. Lots can often be harder and take longer to sell if needed.

If you really want an investment, if I were you I'd ask for your family's help in helping you find and maintain a rental property considering their experience. As others mentioned, a duplex where you live in one side and rent the other could be a good option. But I would be careful looking at a place so cheap. Assuming you're paying rent somewhere currently, you might want to use some of that money in order to be able to ensure you can get something in decent condition and in a decent location.
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Old 04-27-2018, 08:05 AM
 
10,276 posts, read 6,519,194 times
Reputation: 10857
Quote:
Originally Posted by GoPhils View Post
"Land" and a $17K house are pretty different.

If you just want somewhere to keep some money that's not a bank, I guess buying some land may not be the worst idea in the world. You shouldn't have much maintenance costs other than property taxes. You realize you can search for lots on realtor.com or other RE sites, right and not just google?

But, generally speaking I think many would agree that the market is at a fairly high point right now, so unless you plan to hold it for 10+ years (or more), or it is in an up-and-coming area, it may not appreciate much. Lots can often be harder and take longer to sell if needed.

If you really want an investment, if I were you I'd ask for your family's help in helping you find and maintain a rental property considering their experience. As others mentioned, a duplex where you live in one side and rent the other could be a good option. But I would be careful looking at a place so cheap. Assuming you're paying rent somewhere currently, you might want to use some of that money in order to be able to ensure you can get something in decent condition and in a decent location.
I think land is a bad idea. It sits there and may go up in value and may not. You are also going to either have to pay to clear it if it's not cleared and connect it to city services if it's not or pay for septic/drain field and well which is expensive.

Plus it's not only taxes you have to worry about. You have to maintain the property and pick up trash. If something happens on the land you may be liable. So set up an LLC so you are not personally liable. I know of 2 lots where homes were torn down and removed and every few months they get a sign posted with a notice that they have to mow or be fined, then the city mows it at a higher rate than you would pay plus you have to pay the fine.

Unless you can find a lot for $2k or some amount that won't hurt if you lose it.

If it's been on the market a long time and at a good price and no one scoops it up that means it's not worth it.

Another problem with land is that I doubt that there is anyplace in the US where you can build a home for less the $100K so the land is only worth it when most of the properties in that area are well above that. You can't even put a modular home or mobile home many places for less than $75K. Even those dumb tiny homes on wheels are costing $60K now.

Last edited by LifeIsGood01; 04-27-2018 at 08:53 AM..
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