4th Is over and everyone is selling their toys??

[LargeOrangeFont]

Let’s get this thread moving.…..

People started off loading their SXS because someone gave them the impression Speed car deliveries are about to start.

Notice all this happened the week after the first production car was finished and debuted

 

[LargeOrangeFont]

No kidding, right!
If some of us just happened to be there and remember what happened in the 70's then its definitely easy to see what could be coming again soon enough.
We're talking about a nice round of stagflation. Think about it, Debt ratios are waay higher than in the 1970s, insanly loose economic policies (the FED), negative supply issues, $5.00 gas, over priced vehicles of every type, collateralised loan obligations, over bloated housing along with a 10 Yr. Treasury rolling over signaling a possible recession.
Code words for: High inflation alongside a recession - setting the stage for a toxic mix of the 2007-2008 financial crisis and the stagflation of the 1970's.
A sudden loss of confidence and a boxed in FED with nowhere to run could easily cause things to trigger.
Something the 40 and under crowd has never seen or lived through or could possibly believe could happen but the ingredients are certainly now out on the table. jmo.

We are not going to see another housing crisis... it will be some other crisis, but not with homes. The fundamentals for 2008 don’t exist today.

 

[Thunderhead1]

Perhaps it's the "I have too many toys to maintain, I'm always fixing something, and hung over every day on 4th of July weekend." "I'm selling everything"

I've done that before.

That's exactly how I feel right now!!! Ive got 2 or 3 of everything and I don't have time use 1/2 of it!!

 

[riverroyal]

110k for my toon. This week only.

 

[J DUNN]

That guy has good advice. But has zero work life balance.
Everyone of us is doing it wrong according to him.

Yeah, @McKay in post #107 sounds terribly unhappy and imbalanced.

 

[MSum661]

We are not going to see another housing crisis... it will be some other crisis, but not with homes. The fundamentals for 2008 don’t exist today.

I understand and kindly appreciate your opinion, but I might disagree.

We'll see what the impact will be in 2 months after the .GOV ends their 18 month nationwide program of mortgage foreclosure moratoriums and grace periods.
Nobody knows what will happen, not even the highest level of professional's with decades of experience that do it everyday know.
I vividly remember surviving through building and owning homes during the 1980's, 1990's, and specifically the 2006 crises that people were also saying there will be no housing crises, banks failures, even heard that it would be "impossible" to from a trusted source, wrong. Luckily, I only felt the 1980's crises, ONLY due to the fact that I no idea what or how economic downturns could evolve....but trust me, I learned real quick and never made a mistake like that again. I've been self employed since 1985,
Anything can happen and I'm not implying anything takes a turn by tomorrow or by next year....my opinion and experience simply says there is smoke in the air.

 

[LargeOrangeFont]

I understand and kindly appreciate your opinion, but I might disagree.

We'll see what the impact will be in 2 months after the .GOV ends their 18 month nationwide program of mortgage foreclosure moratoriums and grace periods.
Nobody knows what will happen, not even the highest level of professional's with decades of experience that do it everyday know.
I vividly remember surviving through building and owning homes during the 1980's, 1990's, and specifically the 2006 crises that people were also saying there will be no housing crises, banks failures, even heard that it would be "impossible" to from a trusted source, wrong. Luckily, I only felt the 1980's crises, ONLY due to the fact that I no idea what or how economic downturns could evolve....but trust me, I learned real quick and never made a mistake like that again. I've been self employed sine 1985,
Anything can happen and Im not implying anything takes a turn by tomorrow or by next year....my opinion and experience simply says there is smoke in the air.

The next recession is always coming.

I was in IT for a mortgage company and knew something was brewing in 07 when they closed up shop and laid off 17k people. I’ve said this a hundred times.. you only have a housing crisis when people lose their jobs and their payments get higher than other housing options. We don’t have a high payment problem now, rates are as low as ever, and if you bought a year or more ago you are sitting on some nice equity.

Lots of unknowns and you are right, anything can happen. One thing I know for sure, the politicians won’t leave their banking buddies holding the bag again. There won’t be a mass foreclosure event because no one wants to walk away from their house, there is no reason to, it is worth more than ever and you have a low, locked in interest rate. Any person with half a brain would sell the house and take the money, not walk away. There are enough people with real money that will buy up distressed properties nearly instantly.

The banks will get paid and what you owe will be tacked on the back end of your loan.

The only people still out of work are the low wager earners that don’t want to go back to work. They probably aren’t homeowners and are likely living with someone or renting.

Ask anyone if they would walk away from an asset they have equity in as opposed to selling it if they could not pay for it. The answer would be a universal “Sell it”.

Like I said, we will find a completely new crisis to start the next recession.

 

[MSum661]

The next recession is always coming.

I was in IT for a mortgage company and knew something was brewing in 07 when they closed up shop and laid off 17k people. I’ve said this a hundred times.. you only have a housing crises when people lose their jobs and the payments get high. We don’t have a payment problem now, rates are as low as ever, and if you bought a year or more ago you are sitting on equity.

Lots of unknowns and you are right, anything can happen. One thing I know for sure, the politicians won’t leave their banking buddies holding the bag again. There won’t be a mass foreclosure event because no one wants to walk away from their house, there is no reason to, it is worth more than ever and you have a low, locked in interest rate. Any person with half a brain would sell the house and take the money, not walk away. There are enough people with real money that will buy up distressed properties nearly instantly.

The banks will get paid and what you owe will be tacked on the back end of your loan.

The only people still out of work are the low wager earners that don’t want to go back to work. They probably aren’t homeowners and are likely living with someone or renting.

Ask anyone if they would walk away from an asset they have equity in as opposed to selling it if they could not pay for it. The answer would be a universal “Sell it”.

I wouldn't go as far as to say "you only have a housing crises when people lose their jobs and the payments get high".
That's very true in the past, but what makes this potential tsumani soo different this time around is not if somebody is working a job or if payments are too high,
Its that the market is flooded with JUMBO loans, nationally, anywhere from the high 5's to $1 million plus at 1-2%. Its not the payment that cant be made, you can borrow a $million+ for nothing and have a easy payment to stay in the game, its the black hole of debt borrowers are firmly parked on top of and if the market starts to experience a pullback and they find themselves only holding on to the JUMBO loan amount with negative equity as has happened numerous times in the past and get impatient...they may walk. Nobody will want to carry the black hole of debt on any home if the numbers are anything in the JUMBO loan amounts in the range of $500K-$1 mill plus with zero equity with the possibilty the home gets cut in half after that,,,would you?

 

[LargeOrangeFont]

I wouldn't go as far as to say "you only have a housing crises when people lose their jobs and the payments get high".
That's very true in the past, but what makes this potential tsumani is soo different this time around is not if somebody is working a job or if payments are too high,
Its that the market is flooded with JUMBO loans, nationally, anywhere from the high 5's to $1 million plus at 1-2%. Its not the payment thant cant be made, you can borrow a $million+ for nothing and have a easy payment to stay in the game, its the black hole of debt borrowers are firmly parked on top of and if the market starts to experience a pullback and they find themselves only holding on to the JUMBO loan amount with negative equity as has happened numerous times in the past and get impatient...they may walk. Nobody will want to carry the black hole of debt on any home if the numbers are anything in the JUMBO loan amounts in the range of $500K-$1 mill plus with zero equity with the possibilty the home gets cut in half after that,,,would you?

Then we are back to what I just said.. jobs. Wake me up when the people making real money with jumbo loans lose their jobs. It didn’t happen in this recession.
Houses are not falling 40-50% for a long time unless a lot of people lose their jobs. You’d have plenty of warning that was happening. Those people are also locked into mortgages that are cheaper than rent, so where are they gonna go if they choose to walk? No one is walking to go pay more for an apartment or more in rent a smaller/similar house.

There is a contingent of people that keep saying 2008 or worse is 18 months away. If they keep saying that for decades, they will be right eventually, and will have missed a TON of opportunity in the meantime.

Pick any 15 year span in the history of the modern world, RE has appreciated. even if you bought in the peak in 06, by 2019 you were up, and had a payment cheaper than rent assuming you refied at some point (everyone did).

 

[hallett21]

Also SBA let everyone in March or April of 2021 adjust their 3% loans to 2.5-3x the original request.

There’s a bunch of cash still on the sidelines. I know people who qualified for 500k+

I agree the chickens will come home to roost but I still think we’re 12-24 months out.

My problem with waiting for the impending doom and gloom is that you will miss out on opportunities. If you liquidated everything in 2015 you’re still waiting..... and now you need the market to correct 50% in some cases. All while bumming everyone out at the Christmas party lol [emoji6].

That doesn’t mean you should live beyond your means. But taking calculated risks is the only way to make real money. If it was easy with no risk everyone would be rich.

My problem with a Dave Ramsey disciple is that the moment you bring up borrowing money they look at you like you said throw 100k on black.




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[MSum661]

Then we are back to what I just said.. jobs. Wake me up when the people making real money with jumbo loans lose their jobs. It didn’t happen in this recession.
Houses are not falling 40-50% for a long time unless a lot of people lose their jobs. You’d have plenty of warning that was happening. Those people are also locked into mortgages that are cheaper than rent, so where are they gonna go if they choose to walk? No one is walking to go pay more for an apartment or more in rent a smaller/similar house.

There is a contingent of people that keep saying 2008 or worse is 18 months away. If they keep saying that for decades, they will be right eventually, and will have missed a TON of opportunity in the meantime.

Pick any 15 year span in the history of the modern world, RE has appreciated. even if you bought in the peak in 06, by 2019 you were up, and had a payment cheaper than rent assuming you refied at some point (everyone did).

I'm glad you're so optimistic
I'm also a natural born optimist, but I ain't no fool either!

Cheers to what ever happens!

 

[Englewood]

EIDL increases are getting approved now. It’s not over yet.

 

[hallett21]

Think this is all a ploy to get back at China? Let them buy a bunch of real estate and then crush the economy and say sorry bro


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[thetub]

Think this is all a ploy to get back at China? Let them buy a bunch of real estate and then crush the economy and say sorry bro


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just like what happened to Japan in the 80s

 

[77charger]

Yup....

I know people in their 70's and 80's risking lots but still having a large mortgage. Some are interest only.

Damn I’ll be 60 when mines paid but my loan is only 450 bucks.

 

[2Driver]

There’s like 6 different threads happening in this one thread lol!

LOL Hilarious

Is it ok to spank your kid?
Discuss

 

[hallett21]

LOL Hilarious

Is it ok to spank your kid?
Discuss

Do you own or rent?


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[Cdog]

LOL Hilarious

Is it ok to spank your kid?
Discuss

Is that like when u spank your monkey?

 

[2Driver]

Whats the best wax?

 

[DWC]

LOL Hilarious

Is it ok to spank your kid?
Discuss

Yes, open hand, belt or wooden spoon all in play. They’re 20 to 25 now. Tougher to get them to stay still. Hell hard to get them to come over to meet their maker.

 

[LargeOrangeFont]

I'm glad you're so optimistic
I'm also a natural born optimist, but I ain't no fool either!

Cheers to what ever happens!

Im a realist.. what goes up must come down. Save your money Sell at the drop and jump in on the bounce back.

Even if what you fear happens, jumping in is a winning strategy over the long term. 0 people have ever said, “I regret buying that RE 20 years ago“ except the people that lived in Chernobyl.

If there was going to be a mass forclosure event it would have happened. The government is not going to let it happen In September, or they will have another Donald Trump in the White House in 3 years. No one in DC wants that.

Like I said yesterday, this has nothing to do with basic economic principles.

 

[LargeOrangeFont]

Think this is all a ploy to get back at China? Let them buy a bunch of real estate and then crush the economy and say sorry bro


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Would be easier to just pass regulation and confiscate their shit.

They aren’t stupid. If it drops, they will just double down.

 

[DWC]

Whats the deal, everyone seems to be selling their shit today?

I have seen more boats, off road toys and trucks go up for sale online and on various IG pages than I have seen in the previous months. People are trying to get top dollar? People are getting nervous or are people over extended???

Think the off-road toys are off season unloads mixed in with some upcoming upgrades. Boats are a combination of Covid buys that hit the reality button. Boats sound cool. Annual maintenance, repairs, storage and a payment when you’re spending weekends watching the kids chase balls around is a bitch. Think there’s also a Mead effect. Buddy from Vegas says a shitload of his friends are dumping theirs because of the Mead ramp situation. The only people i know selling anything upgraded and are trying to get rid of the last boat. Do i think it’ll slow down overall, yeah. It can’t maintain last year’s pace. Highly sought after stuff isn’t slowing much. Check inventory on twin whacker cats or Howard decks. One just sold last week for $280k ish in a day. That’s not slowing much.

 

[LargeOrangeFont]

Think the off-road toys are off season unloads mixed in with some upcoming upgrades. Boats are a combination of Covid buys that hit the reality button. Boats sound cool. Annual maintenance, repairs, storage and a payment when you’re spending weekends watching the kids chase balls around is a bitch. Think there’s also a Mead effect. Buddy from Vegas says a shitload of his friends are dumping theirs because of the Mead ramp situation. The only people i know selling anything upgraded and are trying to get rid of the last boat. Do i think it’ll slow down overall, yeah. It can’t maintain last year’s pace. Highly sought after stuff isn’t slowing much. Check inventory on twin whacker cats or Howard decks. One just sold last week for $280k ish in a day. That’s not slowing much.

Breaking News - People with money still have money

 

[cofooter]

Think this is all a ploy to get back at China? Let them buy a bunch of real estate and then crush the economy and say sorry CHOW


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Fixed it

 

[Havasu blue label]

You should have a talk show

 

[hallett21]

I’m measuring the garage this weekend to see what we can fit [emoji16]


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[riverroyal]

Breaking news. My toon for 104999 tonight only

 

[Cdog]

You should have a talk show

This is it!! Lol

 

[Classic Daycruiser]

The lakes in the Phoenix area don‘t seem as busy as they were in 2007/08.

The way new boats are selling, priced, and limited quantity, the used boating market will remain strong.

The Job market looks good for the foreseeable future, but the last 2 years were tuff on most of us.

Some will sell their toys, and clean up their Balance Sheet, so they can buy something. Most won’t be giving it away.

 

[badgas]

So would you think anyone with less than a million and a car payment is poor?

Yo BL !

Poor is state of mind and broke is math problem going the wrong direction. You can be going one direction and still be ok in the end. There is opportunity cost in everything we do. You will be better off in the long run investing in bldrinker over a big bank or an auto manufacturer ( just look at the size of their buildings). I know you say EFF Dave Ramsey but your priciples are about 95% lined up with him.

You have a plan for your future so you will be ok either way, sadly most will not and that is who DR is speaking to. The masses are broke and do not save a dime.


Get out of non mortgage debt so you can invest in your future, so you can live a more peacful relaxed life where you can give and send your kids college ( if they choose ) without debt and then pay off your home so you can be an awesome grandpa with no strings and take your kids on great trips and hopefully leave a nice chunk of $$ to your kids, grandkids and great grand kids.

Does this sound crazy ? I think anyone with children/loved ones who is not a psycho would like this plan. That is the Dave Ramsey plan.

Good stuff and fun thread that now has many legs : )

 

[badgas]

You’re still a slave to government via property taxes. There is no thing such as free & clear. Every property is viewed as a vessel for personal benefit in one way or another. Just depends on what you’re looking to get out of it.

The power of an oppressive government and taxes is a side talk but society is enslaving themselves to the banks.

0 Mortage and zero debt + $6,000 in property taxes = $6,000.00

$2,500 mortgage + $6,000 in property taxes + $1,000 truck and car payments + $400 SXS payment + $700 boat payment = $10,600.00

$10,600.00 - $6,000.00 = $4,600.00

That $4,600.00 per month is $55,200.00 after taxes

The borrower is slave to the lender

 

[CarolynandBob]

The power of an oppressive government and taxes is a side talk but society is enslaving themselves to the banks.

0 Mortage and zero debt + $6,000 in property taxes = $6,000.00

$2,500 mortgage + $6,000 in property taxes + $1,000 truck and car payments + $400 SXS payment + $700 boat payment = $10,600.00

$10,600.00 - $6,000.00 = $4,600.00

That $4,600.00 per month is $55,200.00 after taxes

The borrower is slave to the lender

I think your math is wrong. Unless you are saying your property tax is 6k a month.

However, you do come out at the end with the correct number.

2500 mtg = 30k an year, Truck and car is 12K, sxs is 4800, boat is 8400 and prop tax is 6000. My math has that at 61,200.00.

So 61,200 vs the 6k for taxes leaves you with the 55,200 per year to save/invest.

For me, I am conservative regarding risk. I like sleeping at night not worrying if I am going to lose money or need to make a payment. Although, sometimes you may want to make payments. Bought a 2019 Silverado in Oct 2019. Rebate if I financed it was I think $6500. Took the loan and made payments for 6 months the deal said I had to pay in order to refund the rebate, then paid it off. Everyone needs to look at the true numbers before making a decision.

 

[CLdrinker]

Yo BL !

Poor is state of mind and broke is math problem going the wrong direction. You can be going one direction and still be ok in the end. There is opportunity cost in everything we do. You will be better off in the long run investing in bldrinker over a big bank or an auto manufacturer ( just look at the size of their buildings). I know you say EFF Dave Ramsey but your priciples are about 95% lined up with him.

You have a plan for your future so you will be ok either way, sadly most will not and that is who DR is speaking to. The masses are broke and do not save a dime.


Get out of non mortgage debt so you can invest in your future, so you can live a more peacful relaxed life where you can give and send your kids college ( if they choose ) without debt and then pay off your home so you can be an awesome grandpa with no strings and take your kids on great trips and hopefully leave a nice chunk of $$ to your kids, grandkids and great grand kids.

Does this sound crazy ? I think anyone with children/loved ones who is not a psycho would like this plan. That is the Dave Ramsey plan.

Good stuff and fun thread that now has many legs : )

Thanks.
We try to balance save for the future and live a good life now.
Our total debt is $200,000 and that includes the house and the Jeep. My house payment is less than rent on a 2b apartment.

The freedom of living below your means is a great feeling.

 

[Cdog]

The power of an oppressive government and taxes is a side talk but society is enslaving themselves to the banks.

0 Mortage and zero debt + $6,000 in property taxes = $6,000.00

$2,500 mortgage + $6,000 in property taxes + $1,000 truck and car payments + $400 SXS payment + $700 boat payment = $10,600.00

$10,600.00 - $6,000.00 = $4,600.00

That $4,600.00 per month is $55,200.00 after taxes

The borrower is slave to the lender

You missed my point.,

Yeah I get what you’re saying but the big picture is owning free & clear is an allusion.

 

[Cdog]

I agree with you regarding the property tax point. But the annual expense for property taxes as a stand alone item pales in comparison to the long term debt service requirements of any material mortgage amount.

However, property taxes are a sham and just another way the govt confiscates money and controls asset ownership.

Expenses & debt loads are subjective. One mans 100k is nothing more than a car to another.

Not having a Mortage would be great. But if I came into a windfall inheritance I’d most likely buy an apartment complex to pay my mortgage rather than just pay off my mortgage.

Either way in this game of capitalism we’re all playing, if you make or “own” anything you’re going to pay somehow. And if the government wants to put a freeway where your house is, they’re going to take it via eminent domain. The reality is we never truly own anything when the government can take it away in this manner.

 

[LargeOrangeFont]

Expenses & debt loads are subjective. One mans 100k is nothing more than a car to another.

Not having a Mortage would be great. But if I came into a windfall inheritance I’d most likely buy an apartment complex to pay my mortgage rather than just pay off my mortgage.

Either way in this game of capitalism we’re all playing, if you make or “own” anything you’re going to pay somehow. And if the government wants to put a freeway where your house is, they’re going to take it via eminent domain. The reality is we never truly own anything when the government can take it away in this manner.

We just had this same discussion in the other housing thread yesterday. Building a wealth creating engine for yourself early creates more wealth than paying down all mortgage debt and then building the wealth engine.

The way things are today, those older ultra conservative principles of paying down all debts as fast as possible costs far to much opportunity for younger people.

 

[attitude]

So basically what I am understanding from this thread is if the economy going up benefits someone they will argue it’s not going to crash, but if it doesn’t benefit someone they will argue it is going to crash. I know what I want the economy to do but I’ll keep my opinion to myself because ultimately this arguing is extremely opinion based.

 

[Cdog]

We just had this same discussion in the other housing thread yesterday. Building a wealth creating engine for yourself early creates more wealth than paying down all mortgage debt and then building the wealth engine.

The way things are today, those older ultra conservative principles of paying down all debts as fast as possible costs far to much opportunity for younger people.

In this low interest rate environment absolutely. My point is, it's not like you really own the damn thing anyway. You own the rights to it.

Whats kinda funny is people on a boating forum espousing financial literacy. It's like a double negative or subtracting from zero. HAHAH!

 

[pronstar]

Debt isn’t always a bad thing.

Sure, consumer debt is bad.
But real estate pros love debt.

If you have an investment/rental, selling it is a taxable event.

Pulling equity out while the renter is paying debt service puts tax-free money into your pocket that you can invest elsewhere.

Also, high equity makes you a target for frivolous lawsuits.

Here’s a plan to have a 6-figure retirement income, in perpetuity, in 15 just years:

Buy one rental per year for 15 years.
Each rental on a 15 year mortgage.

Year 16: First rental is paid off. It’s worth more than what you paid for it. Re-mortgage the house for 15 years. Pull out equity and live on it. Renter still makes new mortgage payment.

Do the same each year.

You’re welcome.


Sent from my iPhone using Tapatalk Pro

 

[LargeOrangeFont]

In this low interest rate environment absolutely. My point is, it's not like you really own the damn thing anyway. You own the rights to it.

agreed 1000%.

 

[LargeOrangeFont]

Debt isn’t always a bad thing.

Sure, consumer debt is bad.
But real estate pros love debt.

If you have an investment/rental, selling it is a taxable event.

Pulling equity out while the renter is paying debt service puts tax-free money into your pocket that you can invest elsewhere.

Also, high equity makes you a target for frivolous lawsuits.

Here’s a plan to have a 6-figure retirement income, in perpetuity, in 15 just years:

Buy one rental per year for 15 years.
Each rental on a 15 year mortgage.

Year 16: First rental is paid off. It’s worth more than what you paid for it. Re-mortgage the house for 15 years. Pull out equity and live on it. Renter still makes new mortgage payment.

Do the same each year.

You’re welcome.


Sent from my iPhone using Tapatalk Pro

Another agree x1000.

Can you imagine the opportunity cost of doing that by paying off each house before you bought another? The impact to your retirement income and net worth would be staggering. You’d end up with 3 homes instead of 15.

 

[Cdog]

So basically what I am understanding from this thread is if the economy going up benefits someone they will argue it’s not going to crash, but if it doesn’t benefit someone they will argue it is going to crash. I know what I want the economy to do but I’ll keep my opinion to myself because ultimately this arguing is extremely opinion based.

It's like that saying. "Anyone driving slower than you is an idiot, anyone driving faster than you is a fucking maniac. "


If there is one thing I've learned so far in Real estate is the Goldilocks environment is impossible. Too many players needing too many different things. The economy is always in a state of gorge, purge or in-between. A controlled burn is impossible....

 

[LargeOrangeFont]

It's like that saying. "Anyone driving slower than you is an idiot, anyone driving faster than you is a fucking maniac. "


If there is one thing I've learned so far in Real estate is the Goldilocks environment is impossible. Too many players needing too many different things. The economy is always in a state of gorge, purge or in-between. A controlled burn is impossible....

C’mon man, there are some people that sold it all in 2016 and are still living in a 5th wheel because the bottom was gonna fall out in 18 months and they sold at the peak.

 

[badgas]

I think your math is wrong. Unless you are saying your property tax is 6k a month.

However, you do come out at the end with the correct number.

2500 mtg = 30k an year, Truck and car is 12K, sxs is 4800, boat is 8400 and prop tax is 6000. My math has that at 61,200.00.

So 61,200 vs the 6k for taxes leaves you with the 55,200 per year to save/invest.

For me, I am conservative regarding risk. I like sleeping at night not worrying if I am going to lose money or need to make a payment. Although, sometimes you may want to make payments. Bought a 2019 Silverado in Oct 2019. Rebate if I financed it was I think $6500. Took the loan and made payments for 6 months the deal said I had to pay in order to refund the rebate, then paid it off. Everyone needs to look at the true numbers before making a decision.

Sorry

Late night blurry eyed math $600 per month

0 Mortage and zero debt + $600 in property taxes = $600

$2,500 mortgage + $600 in property taxes + $1,000 truck and car payments + $400 SXS payment + $700 boat payment = $5,200.00

$5,200 - $600 = $4,600.00

That $4,600.00 per month is $55,200.00 after taxes

My point was the more we have have going out that is in our control the less enslaved we are.

 

[badgas]

Debt isn’t always a bad thing.

Sure, consumer debt is bad.
But real estate pros love debt.

If you have an investment/rental, selling it is a taxable event.

Pulling equity out while the renter is paying debt service puts tax-free money into your pocket that you can invest elsewhere.

Also, high equity makes you a target for frivolous lawsuits.

Here’s a plan to have a 6-figure retirement income, in perpetuity, in 15 just years:

Buy one rental per year for 15 years.
Each rental on a 15 year mortgage.

Year 16: First rental is paid off. It’s worth more than what you paid for it. Re-mortgage the house for 15 years. Pull out equity and live on it. Renter still makes new mortgage payment.

Do the same each year.

You’re welcome.


Sent from my iPhone using Tapatalk Pro

I know many that where on this plan ( some family and a very close friend) last time around and lost 100% of their real estate both rental and personal. This is why I am much less risk tolerant than others because I have watched people close to me crash and burn. I know there are others out there maybe you are one of them that can put 50%+ down on a 15 year note so it is almost bullet proof providing your tennant keeps paying. That is great for them, just not for me.

There is just a peace anout not being leveraged.

You mentioned being worried about a lawsuit target becasue of equity ? If you are planning on a six figure annual income off rentals then plan on having a lot of equity. Rentals don't cashflow without equity.

 

[Cdog]

I know many that where on this plan ( some family and a very close friend) last time around and lost 100% of their real estate both rental and personal. This is why I am much less risk tolerant than others because I have watched people close to me crash and burn. I know there are others out there maybe you are one of them that can put 50%+ down on a 15 year note so it is almost bullet proof providing your tennant keeps paying. That is great for them, just not for me.

There is just a peace anout not being leveraged.

You mentioned being worried about a lawsuit target becasue of equity ? If you are planning on a six figure annual income off rentals then plan on having a lot of equity. Rentals don't cashflow without equity.

Too may variables to know this.

 

[LargeOrangeFont]

Sorry

Late night blurry eyed math $600 per month

0 Mortage and zero debt + $600 in property taxes = $600

$2,500 mortgage + $600 in property taxes + $1,000 truck and car payments + $400 SXS payment + $700 boat payment = $5,200.00

$5,200 - $600 = $4,600.00

That $4,600.00 per month is $55,200.00 after taxes

My point was the more we have have going out that is in our control the less enslaved we are.

I don’t disagree.

However for someone like me that is 40, in a world without pensions and and real guaranteed retirement return, and a world that will probably have some violent stock market swings, dumping all my money into a house and 401k seems like too conservative and not a diverse enough of an approach.

 

[HTMike]

Whats kinda funny is people on a boating forum espousing financial literacy. It's like a double negative or subtracting from zero. HAHAH!

Yet here you are...

Your hypocrisy knows no bounds.

 

[badgas]

I don’t disagree.

However for someone like me that is 40, in a world without pensions and and real guaranteed retirement return, and a world that will probably have some violent stock market swings, dumping all my money into a house and 401k seems like too conservative and not a diverse enough of an approach.

I don't disagree

I don't wan't"All" my money those two spots either. My point was that when the consumer debt is gone. You can be free to invest and pay the primary off ahead of schedule. Once that is done weather it is age 30 or 50 you can really move the ball and pound money into whatever investments you love and understand. For me it's real estate and low cost index funds for Dave Ramsey it's real estate and managed mutual funds for others it's Gold and single stocks or all the above.

We got derailed on the Dave Ramsey thing and his plan and lack of work life balance etc. He teaches to never put extra on your house unless you are investing 15% of your annual income into retirement. People always miss this but he also teaches that you should be enjoying life and taking vacations and " living like no one else " as he calls it.

He only teaches to be super intense and focused when paying off your Non mortage debt. Then you move from intense to intentional.

He has 7 steps to his plan but 90% of the people quit listening after step 2 which is the "get your act together and have a plan" part of the steps. Then they run around talking about what his plan is and they have missed the majority of the teaching.