All Forum Posts by: Brian Mathews

This guy built a house years ago using credit cards to get all those points, over $100k worth.   His plan was to get a conventional loan when the house was finished to pay it off and reap the rewards of traveling with all those miles.   Funny thing was, that when he went to get a loan, nobody would give him one   He obviously went into a panic knowing he'd soon be paying 28% interest on his new home    He was able of find a small bank in North Dakota that would do it finally.     My point is not to mess with hard money for it because the same could happen to  you or lending could get tight again as it's only a matter of time before we have a recession again.  

Cut your lifestyle and take a 2nd job.   That's the fastest way I know to get money.  

Good luck.   Helping a friend out is admirable and I might be inclined for a short and pre described amount of time.   Long term I couldn't do it.   My parents would stay with us last year for extended periods as my father was having to see the doctor frequently and they lived an hour away and the doctors where they are aren't very good.   It drove me friggin' crazy after a few days.   I love my parents very much and they could live with us if it was completely necessary, but it was very hard.  

 Sounds like a buddy discount to me.   What do 1 bedroom apartments rent for in your area?  What are you going to do when he starts bringing home a girlfriend that your wife doesn't like?  I personally wouldn't do it as I know how wifey's get when people are around too much, especially buddies.  But that is your call   I might let him stay for a month until he finds a place.    I personally can't stand anybody at my house for more than a few days.  It interrupts my routines and I can't walk through the house nekkid if I want.   I think its going to ruin a friendship or a marriage before it's all said and done.   I've also found that when I try to help somebody out by giving them a discount, those are the ones that turn on me the quickest.   Friends included. 

 Because there are 3 people    He will be using 1/3 of everything.   I might even go a little higher but keep it under what he could rent a 1 bedroom apartment for, especially if furnished.   So you'll charge him $200 a month all bills paid?  You'll never get rid of him when you want too for that cheap.   I'm guessing your utilities are around $250 a month for electricity, gas, water, trash.    Another $150 a month for cable and internet.   I'm guessing he has to buy his own food.   Your house expenses are around $1400 a month and you're charging him $200 a month rent.   Personally that is too much potential hassle with my wife and privacy for such a small amount of money to practice for later.   I may be way off base, but it seems you're wanting to relive your buddy days of hanging out   If you want to put him up for a while until he can settle in, that is one thing.   But semi permanent is completely another.   

@Abbas Jamal Eddine   What is your mortgage with everything minus utilities?   How much are you going to be charging for rent?  If your total payment is $1500 a month, that means you'll be charging $150 a month rent?  I really have no idea how much your mortgage is, I'm just guessing that as an average.  Maybe you have a $5000 a month mortgage and will be getting $500 a month rent.  I wouldn't charge any less than 1/3 for all bills paid including mortgage, cable, electricity, water, etc....

Big difference in 2 buddies living together and 2 buddies and a wife living together.    May not end well.    Years ago before marriage, I had a good buddy live with me in my house as roomies.   He just lived with me and paid the portion of the mortgage we agreed on.   I didn't do any of the stuff you're asking about.  Nothing on insurance, mortgage and surely not taxes.   Why claim income so you can claim 25% or so as a write off.   

@Mike Lynch    Its the same issue I have with people wanting it now.   Finding people to work is a difficult task as well.    I had some guy come out that does leak detection and he didn't do anything except get out some test equipment and tell me where the slab leaks were.   I paid him $500 for an hours worth of work.   He was semi retired and gave up chasing turds long ago he said.  Its a matter of targeting to a certain group of people through referrals   I have people who will wait for me for a reasonable amount of time.   I'm not saying don't pursue real estate, but reevaluate your business as you know that it is a profitable venture.    I think the best investment that can be made is an investment in ones self.  

I'm an hvac contractor, we are about the same age, so I feel your pain -- literally.   First thing I'd do is put $100K into a money market fund .  I personally use Ally.   The interest it pays is better than a bank but nothing to brag about    It keeps me liquid in case of emergencies.   I'd then think about re-structuring your business to something more specialized, such as leak detection as an example   I'm not really sure what specialties there are in plumbing   Find yourself a good guy to work for you.  I might look at doing a flip, but use cash rather than borrow.   See if it's something you want to do, then go from there.  My goals for next year are to go after higher $$$ work.   Leave the lower margin, headache stuff behind gradually    I'm hiring a business coach to help me get over the hurdle of growth so I don't have to run so many calls   I actually enjoy them, but would rather pick and choose when I go vs employees go.    A company I've looked at do plumbing coaching as well    If you're interested in their contact info, PM me.   

I wouldn't' worry about feng shui.  I'd worry about putting up a barricade to keep cars from crashing through the front door of the house at night.