All Forum Posts by: Zach Mitchell

@Jeffrey Andrus 

I had the same initial thoughts. That was the kind of response I was looking to get but doesn't look like anyone has done it, or maybe the ones who have done it just don't want to say that openly.

Thank you for the definition, Jean. The property is over $500,000 so these folks would have an extra $10k to throw down. Looks like living there is the only option.

Has anyone ever bought a bank owned property during the "first look" period for owner occupants only and just paid the $10,000 fine? I found a deal that could potentially bring in a lot so the $10,000 would gladly get paid if I could get this home. Any experience, thoughts?

Thanks

@Elizabeth Read 

Was this ever resolved? I know I'm about a year too late but my first thought was that going to a different lender with a new appraisal could work. Appraisers all operate differently and the next guy/gal might not ask for permits at all. Just want to see how you got out of this situation.

Originally posted by @Mark Esposito:

Originally posted by @Zach Mitchell:

Originally posted by @Mark Esposito:

Originally posted by @Zach Mitchell:

Can someone tell me how it makes more sense to pay cash ($20k+) for a car when you can get loans at 2.5% for 60 months? If you have $30k for a car and are able to put down $3k and finance the remaing $27k at 2.5%, that leaves you with $27,000 cash to go out and make a return well above 2.5%. You make even 3.5% ANNUALLY on that money and you have essentially borrowed free money and made an additional 1% on it. I will never understand why people are against borrowing free money. 

 Buying a new car is just burning cash...if one has it to burn great.  Cars are depreciable assets.  Don't get me wrong...its FUN to just BURN cash.

But I'm too frugal to do that.  I'd give more to HELP those less fortunate than me to HELP themselves - learn how to earn $$$...not just feed them. 

Mark, I agree with some of your points; however, the question wasn't answered one bit. Also, just to clarify, I wasn't necessarily talking about a new car. Applies to used as well. 

 Zach,

It doesn't make sense...financially anyway. Its all about image.

Mark, you've completely lost me now. It makes perfect sense, especially financially. Maybe my main point didn't come across fully in my original post. Let me ask another way. If you have a balance on a credit card with a 15% interest rate and instead of using the cash you have on hand to pay it off you decide to invest in the stock market and you do alright and make a 10% return. Effectively, you still lost 5% on that money right? Well if you did really well and made 20% in the market then effectively, you made 5% on that same money.

It's the same thing here. Spending 2.5% and keeping a large amount of cash on hand that you can go out and invest to make well over 2.5% is the financially responsible choice there. Not buying the car outright. If the same money will sit in a bank account and make zero return then paying for the car is the way to go but if you put that money into any investment that makes over 2.5% interest then you come out ahead. In all seriousness, please tell me if I'm wrong here because then my thinking is completely flawed.

Originally posted by @Mark Esposito:

Originally posted by @Zach Mitchell:

Can someone tell me how it makes more sense to pay cash ($20k+) for a car when you can get loans at 2.5% for 60 months? If you have $30k for a car and are able to put down $3k and finance the remaing $27k at 2.5%, that leaves you with $27,000 cash to go out and make a return well above 2.5%. You make even 3.5% ANNUALLY on that money and you have essentially borrowed free money and made an additional 1% on it. I will never understand why people are against borrowing free money. 

 Buying a new car is just burning cash...if one has it to burn great.  Cars are depreciable assets.  Don't get me wrong...its FUN to just BURN cash.

But I'm too frugal to do that.  I'd give more to HELP those less fortunate than me to HELP themselves - learn how to earn $$$...not just feed them. 

Mark, I agree with some of your points; however, the question wasn't answered one bit. Also, just to clarify, I wasn't necessarily talking about a new car. Applies to used as well. 

Can someone tell me how it makes more sense to pay cash ($20k+) for a car when you can get loans at 2.5% for 60 months? If you have $30k for a car and are able to put down $3k and finance the remaing $27k at 2.5%, that leaves you with $27,000 cash to go out and make a return well above 2.5%. You make even 3.5% ANNUALLY on that money and you have essentially borrowed free money and made an additional 1% on it. I will never understand why people are against borrowing free money. 

Marci Stein , I did a cash out refi back in April of last year and didn't have much trouble I went through a mortgage broker, who is a friend of mine, and he was able to lock me into a pretty good rate compared to conventional non cash-out mortgages. Let me know if you want his contact info to provide some help.

@Brian Albelli You would really relate to 4 Hour Work Week if you haven't already read it. I couldn't agree more though. That's not to say that new investors (me) should be spending right away and going on vacations, the hard work needs to be put in first, but if you can afford to do stuff along the way then why not?! I have witnessed loved ones very close to me pass away WELL before they should have, who were never really able to do what they wanted and always thought there would be a chance at a later time. It hit me hard and I now know there might not always be a chance so we have to live in the life we have right in front of us. 

Tony, you can do it in your own name if you want but then all liability is on you as an individual. If someone were to get hurt and then sue, they are suing you. If you have an LLC then most you can lose is what the entity holds. **This is my understanding of it. Could be wrong but I think that's the case. I did my first one in my own name but that's because I didn't know what I was doing. Opened an LLC for the last two and it's just easier for setting up company checking accounts, credit cards, etc.