jon's about to file for divorce

[Cams Purple Lambo]

cag how much money do you or jon have in retirement savings (either 401k or IRA)? if you want to retire early that is your best bet to tax free income.

[Cag.]

terrible idea considering neither of you know about real estate finance or construction/regular upkeep of an apt etc...

put your spare money in vanguards total stock market index or some field that you are educated in (e.g. if jon wanted to do a start-up or something).

i doubt you have great access to credit (esp considering you bought your house with an FHA loan with like 2% down) or have any familiarity with the legal framework of organizing an LLC, obtaining lending to the LLC to leverage you RE investment and write off depreciation/re taxes/loan interest etc... (to maintain more profitability) etc...

our mortgagr is already paid off. jon knows what hes doing.

[juji]

she should honestly just talk to a financial planner or read elementary investing books. i don't think jon studied finance at all in college and i'm sure cag has limited financial education.

or cag should just listen to hgtv and think she will get rich by buying second homes and renting them. (bc that's how trump got rich- real estate duh). fyi trump was a highly leverage motherfucker who knew what the fuck he was doing - cut costs by any means necessary and used the legal system and local government offering tax incentives to his advantage.

Jon studied engineering systems, it may create an application for Finance but it doesn't include Finance concepts. He got a dunning-kruger effect.

[Cag.]

jon also had huwhite credit

[Cag.]

has* present tense. we good. we alrrqdy set

[Cams Purple Lambo]

our mortgagr is already paid off. jon knows what hes doing.

no he doesn't because you had a low interest FHA loan. why the fuck would you put 2k down on a 200k house and then pay it all off in cash like in 2 years lmao

[Cag.]

cag how much money do you or jon have in retirement savings (either 401k or IRA)? if you want to retire early that is your best bet to tax free income.

not sure about his ira or retirement honestly and probably shouldnt share too much information

[juji]

jon also had huwhite credit

I bet Jon doesn't know about Fair Housing, in that case you need to be awared about housing discrimination is illegal.

[Cag.]

no he doesn't because you had a low interest FHA loan. why the fuck would you put 2k down on a 200k house and then pay it all off in cash like in 2 years lmao

lol he paid off our mortgage last december

in the scenario you quoted, the person who paid for their house in full is now $5,000 positive in 1 years time.

the person who paid 100k down and borrowed the rest is now $375,000 negative in 1 years time.

$5,000
-$375,000

i dont know, man, tough choice.

not sure about his ira or retirement honestly and probably shouldnt share too much information

dont be shy, cag. jon has probably $800,000 lying around in loose bills. he has a lot more in jewels and antiques, silver frames, etc. let me give you his home address so you can see what his house is worth and get a look at it on google street view.

i should mention the loose bills are lying around in his home. all of this is in his home. he just moved, too, so he hasnt gotten one of those pesky safes yet

[Cag.]

I bet Jon doesn't know about Fair Housing, in that case you need to be awared about housing discrimination is illegal.

well thats why you run credit checks on people to find out how reliable they are :)

[Cams Purple Lambo]

no he doesn't because you had a low interest FHA loan. why the fuck would you put 2k down on a 200k house and then pay it all off in cash like in 2 years lmao

i initially joked that you are dumb as hell/poor for only putting 2k down on a 200k house because you can easily get underwater on a mtg that way (20% is sufficient cushion), but you got extremely lucky buying real estate at a very low price and having very cheap financing. your home has probably appreciate 25% in value or something

rather than invest the 198k you just lit on fire and get like 10% returns in a total stock market index fund - you dumped it all into a home that is probably at the peak of its value (before an impending stock market or real estate market correction) and now if you want to buy another house interest rates are much higher

[Cag.]

in the scenario you quoted, the person who paid for their house in full is now $5,000 positive in 1 years time.

the person who paid 100k down and borrowed the rest is now $375,000 negative in 1 years time.

$5,000
-$375,000

i dont know, man, tough choice.

we didnt have 300 grand at the time. we had my rape money and jons savings and used it on down payment

[Cams Purple Lambo]

in the scenario you quoted, the person who paid for their house in full is now $5,000 positive in 1 years time.

the person who paid 100k down and borrowed the rest is now $375,000 negative in 1 years time.

$5,000
-$375,000

i dont know, man, tough choice.

asset is secured by the loan. bank made a loan to LLC. Loans on real estate are generally non-recourse (they can only go after the property not your personal assets) no harm to credit or minimal if a foreclosure bc its against the llc

minimal risk of downside. i make the 25k in a year...sell the house to someone else and pocket 25k. meanwhile the chump with a 5k return needs to do that for five years.... i can continue to make 25k repeatedly.

i mean yeah doing the grandma thing and making 5k is OK with no risk. But you should just buy treasury bonds if you want low returns with 0 risk and avoid the issues with real estate (maintenance, fluctuation in price, etc...)

[maks]

I don;t think cag even finished high school

rhodes scholars usually don;t end up as strippers, js

[Cag.]

i initially joked that you are dumb as hell/poor for only putting 2k down on a 200k house because you can easily get underwater on a mtg that way (20% is sufficient cushion), but you got extremely lucky buying real estate at a very low price and having very cheap financing. your home has probably appreciate 25% in value or something

rather than invest the 198k you just lit on fire and get like 10% returns in a total stock market index fund - you dumped it all into a home that is probably at the peak of its value (before an impending stock market or real estate market correction) and now if you want to buy another house interest rates are much higher

i dont think i want to leave this house. we just put in a 20k retaining wall and stone patio last year and i actually want to enjoy them

asset is secured by the loan. bank made a loan to LLC. Loans on real estate are generally non-recourse (they can only go after the property not your personal assets) no harm to credit or minimal if a foreclosure bc its against the llc

you've obviously never done this otherwise you would realize the insurance requirements for the llc + the interest rate on the home would be more than the 5% annual return.

the 5% SPECULATIVE annual return

[juji]

well thats why you run credit checks on people to find out how reliable they are :)

If everything is not OK for me, Section 8 would be my Plan B.

[maks]

cag what's your education level lets do some math problems together

If everything is not OK for me, Section 8 would be my Plan B.

section 8 is probably your main option, bud

[Cams Purple Lambo]

you've obviously never done this otherwise you would realize the insurance requirements for the llc + the interest rate on the home would be more than the 5% annual return.

the 5% SPECULATIVE annual return

my family owns a lot of commercial real estate. insurance reqs are minimal.

[Cag.]

if your bad credit is due to unpaid medical bills then you should be fine to get a home section 8 housing sucks i rented a section 8 apartment and all my neighbors were dried up alcholics and one of them would always bother me. he tried to get me to help him sort thru his photos ans then randomly wanted to charge his car thru my window. the maintence man randomly tried to enter my apartment when he thought i wasnt home

my family owns a lot of commercial real estate. insurance reqs are minimal.

my dad fucked my mom but that doesnt mean i do

[Cams Purple Lambo]

my family owns a lot of commercial real estate. insurance reqs are minimal.

i will say im over simplifying this, you need all sorts of personal guarantees etc... if you're just starting out. no one will lend an llc with no track record money

[juji]

I think you should listen BGD, he has point, hell, I would send him PM to request his advices... what are benefits to buy the terrain and I build my own house?

Land loans are different from mortgages for home purchases. For lenders, land loans are riskier because the loan's collateral, the property, isn't being used for housing because of that risk, down payments and interest rates are higher for land loans than for mortgage loans. Oh yes, bgd is right.

[Cag.]

well im sure he has good advice and seems intelligent but my husband knows what hes doing. he got us a housr and got us out of debt

[Cams Purple Lambo]

I think you should listen BGD, he has point, hell, I would send him PM to request his advices... what are benefits to buy the terrain and I build my own house?

Land loans are different from mortgages for home purchases. For lenders, land loans are riskier because the loan's collateral, the property, isn't being used for housing because of that risk, down payments and interest rates are higher for land loans than for mortgage loans. Oh yes, bgd is right.

i would honestly think a mtg for land would be marginally lower than a mtg for a home just on the basis that improvements to land appreciate either slower or depreciate and land generally appreciates, but i don't know the answer to this.

like i think when the assessor values your home for taxes they do the land and the house at different rates idk

hey lets all go out in this overpriced market and get ourselves tied down with a 500k loan on a property thats going to be worth 390k when the bubble bursts again

well im sure he has good advice and seems intelligent but my husband knows what hes doing. he got us a housr and got us out of debt

hes also a little cum slut