Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I don't know, with car loan rates so low it isn't that bad of a thing. Rates at 2.9 percent is pretty cheap. I can earn up to 60 percent investing that cash instead of paying for a car cash. That 60 percent easily pays for that 2.9 percent.
I do understand many people aren't able to do that though.
Location: Formerly Pleasanton Ca, now in Marietta Ga
10,351 posts, read 8,569,440 times
Reputation: 16693
Quote:
Originally Posted by AJ1957
LMAO probably! But he said it with such aplomb...
I'm not a rube; but thanks for the suggestion.
Haven't been back on this thread in a while. Forgot I even posted on it. For returns up to 60 percent I buy homes and rehab them.
I have a long thread in the investing forum about it.
Here are numbers on my last deal.
Bought a house from the city for 30k. Put just under 30 k rehabbing it so I am all in for 60k
The house will appraise for 115 k. That's nearly 100 percent return.
It took about 2.5 months to complete because I used other people rather than doing the work myself. Plus I had to deal with the city as part of the conditions of buying the house from them. The house will rent for about 1150 a month, but I will try to get 1200. After expenses I typically net about a shade over 50 percent of the rent.
That equals 6900 per year cash flow every year as long as I hold the property.
That's a return of 11.5 percent every year on the 60 k I invested.
I plan on cash out refinancing this house in august after a 6 month seasoning. At 70% ltv I will get a check for about 75 k on the loan. That means I got my 60k invested back and made a profit of 15 k on top.
At that point after servicing the new mortgage my yearly cash flow will drop to just about 2k a year. Not a huge amount, but a nice yearly return on an investment I have no money invested into since I got all my money back out.
Along with that small cash flow each year I still have 34,500 of equity in the property, once again with none of my money invested.
That cash flow is tax free since the depreciation write off wil, zero it out for the most part.
I will take all that money I got and then go out and repeat the process.
The bottom line is it came down to spending 60 k cash versus getting an auto loan at 2.9 percent which is what my credit union offers, I'll gladly pay that and use the cash to invest.
I have invested 750k of my own money for the last 3 years buying and fixing properties. The value if the portfolio is worth just under 1.4 million over a spread of 17 owned. The yearly cash flow is just over 100k.
I have already done 2 cash out refinance loans and each one has met the appraised increased value so I believe the 1.4 million is accurate.
Most of the deals were typically 50 to 60k total for a buy and fix. The values were typically about 80 to 95 k within two months of buying them so I made about 60 percent return after they were rehabbed.
That is how I got my 60 percent return.
Hope that answers the question of how I got 60 perecent return.
You are missing out. Back to the future is a tragedy about Biff, the only character in his suburban town who is cursed with the knowledge of its eventual decline over the next few decades. He is a high school student and so is limited in what course of action he can take.
He decides to try to change the town's fate by marginalizing the influence of some of the town's inhabitants who will be responsible for its decline, but his efforts a thrown awry by an unexpected arrival of a transfer student. In a macabre science fiction twist, it turns out that the transfer student is a time-traveling descendant of one of his classmates. A narcissist with an Oedipus complex who summarily decides to team up with the scientist responsible for his arrival to thwart Biff's efforts.
Biff confronts the time-traveling antagonist in an effort to scare him away but he underestimates the severity of the time traveler's mental instability and this eventually backfires. From there, Biff is systematically robbed of his personal goals, future plans, social standing and love interest. His plans are thwarted and social status in the small town is destroyed. Biff is left with no way to reverse the damage because the time traveler disappears back to the future.
Interestingly, the movie tells the story from the time traveler's perspective.
Thats fair, but Id like to have the option to pay my own taxes like ive always done. I suppose enough idiots have screwed them in the past that they now require this for most people now.
Yep, believe it or not, some people aren’t responsible enough to pay $500 worth of taxes each year.
Im looking to buy my first home, I have a 750 credit score (per lenders credit pull).
I have a 2017 $30k car that I pay taxes on yearly, and pay them when they are due. I have done this for all my cars. In fact, I own multiple cars.
So why the HELL are they nickel and diming me to put money into an "escrow" each month as part of the payment? Its unnecessarily inflating the monthly cost, causing DTI issues.
I obviously can pay the $500 annually just like I pay my car taxes when they are due.
Any way to stop them from pulled this childish garbage? Its like you trust me to pay $650 a month but not the $500 annual tax fee?? wtf?
Not to mention they included $14 for a "Credit report" in the loan estimate. Over my dead body im paying that. I will walk away.
Because if you don't pay your property taxes, the government takes your house and the bank gets very, very pissed.
These are the rules everybody plays by. If you want a house, you have to play, too.
Haven't been back on this thread in a while. Forgot I even posted on it. For returns up to 60 percent I buy homes and rehab them.
I have a long thread in the investing forum about it.
Here are numbers on my last deal.
Bought a house from the city for 30k. Put just under 30 k rehabbing it so I am all in for 60k
The house will appraise for 115 k. That's nearly 100 percent return.
It took about 2.5 months to complete because I used other people rather than doing the work myself. Plus I had to deal with the city as part of the conditions of buying the house from them. The house will rent for about 1150 a month, but I will try to get 1200. After expenses I typically net about a shade over 50 percent of the rent.
That equals 6900 per year cash flow every year as long as I hold the property.
That's a return of 11.5 percent every year on the 60 k I invested.
I plan on cash out refinancing this house in august after a 6 month seasoning. At 70% ltv I will get a check for about 75 k on the loan. That means I got my 60k invested back and made a profit of 15 k on top.
At that point after servicing the new mortgage my yearly cash flow will drop to just about 2k a year. Not a huge amount, but a nice yearly return on an investment I have no money invested into since I got all my money back out.
Along with that small cash flow each year I still have 34,500 of equity in the property, once again with none of my money invested.
That cash flow is tax free since the depreciation write off wil, zero it out for the most part.
I will take all that money I got and then go out and repeat the process.
The bottom line is it came down to spending 60 k cash versus getting an auto loan at 2.9 percent which is what my credit union offers, I'll gladly pay that and use the cash to invest.
I have invested 750k of my own money for the last 3 years buying and fixing properties. The value if the portfolio is worth just under 1.4 million over a spread of 17 owned. The yearly cash flow is just over 100k.
I have already done 2 cash out refinance loans and each one has met the appraised increased value so I believe the 1.4 million is accurate.
Most of the deals were typically 50 to 60k total for a buy and fix. The values were typically about 80 to 95 k within two months of buying them so I made about 60 percent return after they were rehabbed.
That is how I got my 60 percent return.
Hope that answers the question of how I got 60 perecent return.
Funny enough, someone beat me by one day and made a very similar deal it seems. They dont have good communication, at their office.
So you lost the house to another bidder? Maybe they were not ready to "walk" over a $14 credit check.
They aren't supposed to tell you about what others are offering...you realize that right?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
