All Forum Posts by: Matt Burr

@Nick Dillaha 

Looks like I am late to the party here. Glad you found Dave Ramsey. If you haven't already balance him out with Robert Kiyosaki. The part they both have in common is that consumer debt (cars, boats, credit card debit carried over, student loans ect) are all not your friend in the long run. 

As many suggest the extent to which it affects you depends on your actual goals and plans. Assuming you do plan on being fairly aggressive it is likely going to be best to get the car loan out of the way. As a few others suggest it is dragging down your debt to income and can easily cost you the ability to get a real estate loan. I am sure by now you know that all loans are not created equally. @Greg Scott points out that as you build your cashflow from your houses then future loans become easier to get. Depending on your personal income that $800 payment can make a huge difference. 

You state you have $55k in cash. Paying the truck off today will instantly result in a positive cashflow equal to that payment. You can then still put about 25K down on a 100K house that cashflows well. If you got even $200 in cash flow off the house between not paying the payment and the cashflow you have a $1000 a month swing in cash. You are also much more favorable for your next loan. 

While selling the truck certainly is an option and could really short circuit every thing, I personally think if you can and want to pay cash for a vehicle then drive what you want. You just need to understand what impact it will have your long term plans. 
 

Am I the only one having issues with the Marketplace?

I am trying to create a listing and have now tried my phone and 2 computers running safari, chrome, and internet explorer. Sometimes I can add pictures but when I submit it tells me they aren't attached. Other times it just refuses to load them at all. 

I also tried last night and several times today. So if it is a site issue is hasn't been fixed yet.

Thanks for any input.

@Ahmed Youssef

It’s all things you learn and encounter that’s why this page is so helpful it speeds up that knowledge gain.

I would tend to agree with you given more detail. However the other ever present truth is something that doesn’t make sense for one person could make great sense for another based on individual circumstances. So it is hard to give concrete yes no answers on here.

Best of luck.

@Ahmed Youssef @Jeff Kobernus is spot on. You are already buying from a turnkey company. Nothing wrong with that but that means you know your not buying the greatest deal on earth.

This line is just a protection for them to keep from getting nickel and dimed by appraisers. Think about it they are just saying within 5% we will stick to our purchase price.

If you stay in real estate long enough you will find yourself a believe in the fact the appraiser is just taking his best guess. It isn’t the end all be all. It is a snap shot in time markets easily fluctuate over that five percent in a few years time. The more important thing is is this house an an area you believe will go up?

Also as suggested by Jeff what is the cash flow on this deal. If you cash flow $1,000 a month compared to other deals at $500 wouldn’t you rather just buy this for slightly more than appraised value?

@Lisa Sluss

Maybe I haven’t read enough of the follow up comments but if the houses are free and clear how is your debut to income so high? Consumer debit?

If so I’d look at ways to eliminate that not focused on changing your real estate position for the moment.

@Huso Akaratovic I agree with most you are in the clear. Home sales are as is. That said in your response to the new owner I would draft a letter that pulls sections of the sale contract stating it is an As Is sale. Also work in items you did as due diligence as you described in your post ie inspection. Last note that he also had an independent inspection.

While there may be a feeling of wanting to help it is a very slippery slope to help this time. What happens if the furnace breaks next week?

Thanks yes I agree this likely much bigger news. It will also have a big impact. What the impact is depends on what they do with the rules. 

@Joe Splitrock can you elaborate on the SEC accredited investor rules?

@Daniel Dietz thanks for the response. One follow up question is when you do barrow the 20% down is the borrowed money still secured by the property being purchased? Just second behind the bank?

@Tom Shallcross Do you have any experience narrowing the down payment while getting the rest from a commercial bank by chance?