All Forum Posts by: Marcus Johnson

Please don't thinking using students loans as a DP. Remember they aren't bankruptavle should your plan fail.

It is true.  I took out a loan on a duplex in Minneapolis last year and put 25% down.   Now that I know that's what I need for the next one, I have a lot of saving to do.  Work, work, save, save.  

Originally posted by @Omar Grant:

@Adam Morgan

 and @Marcus Johnson

In reference to my aversion to debt, I'll say this..the only debt I have currently is the mortgage on the house I live in. I have just one (by choice) that I use mostly for work-related expenses that are reimbursed. I have not paid interest on a credit in over 10 years. I spent the last 3 plus years following Dave Ramsey's plan to get rid of over $100k in student loans, cars and other consumer debt. So, I am in no rush to jump back into debt and I would not say that I am willing to take a title loan on my cars. 

In your original posted you stated

"Thoughts and advice on using an auto title loan company as a source for quick cash to use as a downpayment or rehabbing a property.", but in this post you state that you're not willing to take a title loan on my cars.  

Which is it?

Omar Grant you say your anti debt but yet your willing to borrow against vehicles you own. Why not hold true to your beliefs and save up the money?

I own rental property and I invest in index funds. The reality is that with rental property there is always the risk of rents decreasing due to low interest rates and a good economy. There is a chance for vacancies, a roof replacement, appliance, plumbing or electrical problem that can deplete your cash flow and even cause to I bring your own money to the table. As for the S&P 500, since it has averaged 11% since 1929 you don't have the same risks as a vacancy, etc that a rental has. You simply Max out your Roth IRAS each year for 30 years and you'll easily exceed a million dollars tax free.

I don't just look at credit scores, I look at how much revolving debt they have and the quantity.  That tells me if they like to borrow money a lot which is a red flag.  

Shows you how messed up the FICO score calcuation is.  You make 100k a year and no debt a bank won't lend you money and someone else making 100k a year with debt and a mortgage can get a loan.  Who thought this was a good idea?  Funny stuff.  

How to resolve this silly issue.  

1.  Pay cash for everything.

2.  Get a secured card and make ontime payments for two years and then apply for a loan.  

Recently we sold our home in a suburb of Minneapolis for full list in one day. The house we found was in a desirable neigborhood and was listed for 280k paying my closing costs. Our offer came with a contigency to sell our home, but were doing a conventional loan with 15% DP. The other two offers that came in were higher, in fact one of them came in @ 290k with closing costs, but the kicker was the FHA which is 3% DP. The sellers took our offer due to the fact that an FHA loan has more hoops to jump through due to it being a Federal loan and only 3% down. The seller saw this as a risky buyer and took the lower offer.

I can understand their position because who wouldn't want a secure buyer?

Work.  That is the only way I know how or want to pursue.  When I started off with no money, I started a handyman business with low overhead and saved money for two years along with funds from my fulltime job.  I was able to buy a 180k duplex in SE Minneapolis with 25% down.  I found my method to be the most rewarding and least risky.  

Great story!   Good luck on your endeavors.  What stands out to me the most in this story is your former boss.  It's very apparent he felt your job performance was outstanding and he was doing everything in his power to keep you.  And the kicker is from your perception, you were doing average.