All Forum Posts by: Anthony C

Theoretically, you could argue the inflation causes the value of your debt to be less, at the same time -those dollars buy less in the real world.

Net gain is zero.

Notes seem very difficult to keep revolving to the point where an income stream was steady.

I've done 6 HML's in the past 2yrs, and each one took alot of effort to find and arrange, and the time while the $$ was out is pretty high anxiety.

I love the concept of notes investing and would rather use capital in that sense since i'm in the camp of preservation vs building but it seems very difficult to get the ball rolling.

The average price of a gallon of gasoline, despite a recent leveling off, is still up by $1.13 over a year ago, an increase of 30 percent. The price of ground beef is up 22 percent in the past year, and the price of bacon is up 30 percent as of April. And in late May, Starbucks announced that it was raising the price of its packaged coffees by 17 percent.

Hyper-inflation, whether it happens or not and no one in this country will ever want to see, is not something that suddenly announces itself in the room, it creeps up slowly, eating away slowly at people's wealth.

Not exactly sure what you're "waiting" for.. the real inflation rate is already double digits, our GDP (just announced at 8:30am) is 1.3%, 1.8% expected. No economic growth, no jobs, skyrocketing debt, sinking dollar, and rising prices of everyday items = a recipe for disaster. That is what people are discussing when "hyperinflation" enters the conversation. It's not a lightswitch term that one would use to the affect of "see, there's no hyperinflation, everything is fine".

Matt,

Being from the area, some more important factors than lose listed are will the investment area make sense math wise before even needing to go further.

Most of the tri-state area does not cash flow due to generally higher property costs and the high property taxes. Example, a $100k house in a decent NJ town has prop taxes of $4k to $7k, in the midwest this # is $2k...there goes your cash flow down the toilet. Plenty of info on this site on instruction on how to evaluate properties from cash flow perspectives.

Once you narrow down neighborhoods that could potentially cash flow then you can reach out to local RE agents and scrutinize the factors you mentioned above. Unfortunately, to find areas that fit those credentials you will have to go to either C class neighborhoods or the sticks when dealing in the tri-states.

Good luck.

Doesn't owning Notes forego the equally as important other part of owning rentals...building equity? Even on a rental that doesn't cash flow, you're still realizing the equity portion.

If I have a note that cash flows the same as a rental, after 30yrs, all else being equal - you are left with a free and clear property from the rental.

And honestly - i sincerely suggest you reconsider your plan here. You are realizing your rental income into your policy's cash value? You do realize this cash value is not yours, not liquid, and your ins. co. keeps this if you die?

The only way you have access to your cash value is if you surrender your policy, pay huge penalty fees, and thereby forefeit the first 5-7yrs which all your payments went to commission anyway?

I say this as an honest warning - reconsider what you are doing. Call you ins.co. today and tell them you want your money tomorrow - see what will be left.

Are you sure you've done TONS of legwork?

Just trying to help here - not into a pissing match with you. You hold the policy, obviously you will be a fan of it.

Do you seriously believe there is a way to make this money tax free without implication? dream world.

For those that don't...whole life is not, and never meant to be an investment, even an ins. co. will tell you that - they are obligated to. Google "is whole life insurance an investment".

I'm glad you think its a good policy - enjoy it for the next 40 or 50 years.

You do not receive your cash value, ever. You receive your death benefit (which may or may not vary depending on the type of policy).

Paying massive commissions and principal payments for the luxury of borrowing against your own money? Sounds great.

All of this supposed tax free wealth you are supposedly building is the pivotal myth... you never access this money. If you pull out your cash value you will have HUGE surrender fees. Just call your co. and ask. By the way, without giving actual #'s, what is your cash value as a percent of actual payments you've made into the policy?

Again, so much info out there on why these are bad investments. Now, they may be ok for certain individuals insurance needs...but never pitch whole life as an investment - they simply are not. Banks can keep all of their cash assets wherever they like..you are not a bank - you are investing money into a cash value, pitched as your money, which you have no access to.

p.s. - you can keep your personal attacks on a quoting mistake to yourself...we're here to educate, not pitch poorly understood investment vehicles that are, to quote your supposed company's name a "dream"

No offense Joe..but those are the worst investments ever...

You invest your money which for the first many years all goes to broker commission. You're $'s invested doesn't match your actual cash value in policy until usually 7+ yrs because of that.

Then, yes you collect a dividend that goes back into your policy supposedly buildling your cash value.

You know what you can do with this money? You can either borrow against it..paying interest on your own money!! Or you die and the benefactors get only the policy face value..NOT your cash value.

You never get your cash value back, you can only borrow against it or withdraw for penalty.

The only people who think these are good investments are the brokers who sell them or the poor investors who don't understand them.

My sources are independent actuaries who analyze these policies for a living to those looking to get out from under these ripoffs.

A $35k home is not that much better than a $10k home to an investor. Both will be dealing with the same tenant pool for all intensive purposes in poor areas.

Show me a $35k home in a decent area with a respectable tenant pool and i've got a bridge to sell you.

$12k is not enough to get involved in RE for an out of state/country for numerous reasons (cash reserves, applicable cities, etc) unless you are a real risk taker and want to deal with poor out of work tenants who work the system. If you're that big a risk taker, take the money to a casino and put it on red.

If you're roof collapses and your furnance dies, where are your cash reserves - then your tenant (who will be a pro at this in poor neighborhoods) will withhold rent for unacceptable living conditions.

Be careful and stay away from sales pitches.