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Old 05-21-2017, 04:30 PM   #61
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Re: Finance


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I'm not saying borrowing isn't a better ROI, I'm just saying not borrowing is worth more than money to me. Because yOU can make more, isn't always the deciding factor. Its not the guy who dies with the most money wins. And because you found a vehicle loan at a low interest rate, doesn't necessarily mean your paying less. In fact they are getting their money and you just think you're getting off with a cheap loan. In other words if they are still getting their money you are paying one way or another.

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So it's the feel good feeling of being debt free?
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Old 05-21-2017, 04:44 PM   #62
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Re: Finance


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So it's the feel good feeling of being debt free?
I don't need the money for my business. I already invest 400 bucks a month and I don't need to use my car money to invest more. If I wanted to invest more I'd just use my savings.

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Old 05-21-2017, 05:34 PM   #63
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Re: Finance


This is a good conversation.
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Old 05-21-2017, 05:48 PM   #64
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Re: Finance


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Originally Posted by Californiadecks View Post
I don't need the money for my business. I already invest 400 bucks a month and I don't need to use my car money to invest more. If I wanted to invest more I'd just use my savings.

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I'm not saying you do Mike, nor am I calling you an asshole for paying cash. I'm straight up saying that occasionally financing something can save you money, that's all. I know you don't care, and it's probably not a substantial amount of money but the fact remains it's worth the time to toss the numbers around before deciding to lay down the bucks.
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Old 05-21-2017, 06:07 PM   #65
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Re: Finance


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The guy with the plane doesn't have to worry about that lol

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Giving financial advice is easy for him, he probably built his fortune the old fashioned way.

Inherited it.


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Old 05-21-2017, 06:11 PM   #66
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Re: Finance


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Giving financial advice is easy for him, he probably built his fortune the old fashioned way.

Inherited it.


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That's not a safe bet in Texas. A lot of my clients are first gen rich. Oil can get you rich quick.

According to this guys dad, he was there for the weekend at this guys vacation home we are redoing when I met with him the second time, this guy made his own money. In construction of all things.

He owns 17 companies, some small some medium some pretry good size. He started his first at 21. He bought or took over the rest. 4 are oil related.

He's 47. He hasn't ever worked at a construction site or even run a job, or in any of his other businesses. He buys them and restructures and puts the right people in charge.

According to him. No reason to not believe him, this isn't even his primary vacation home

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Old 05-21-2017, 06:16 PM   #67
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Re: Finance


He want giving financial advice, btw, he said be just paid the note on his range rover and wanted to leave there since he bought a new one.


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Old 05-21-2017, 06:16 PM   #68
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Re: Finance


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I'm not saying you do Mike, nor am I calling you an asshole for paying cash. I'm straight up saying that occasionally financing something can save you money, that's all. I know you don't care, and it's probably not a substantial amount of money but the fact remains it's worth the time to toss the numbers around before deciding to lay down the bucks.
That I completely agree with. I'm still as asshole though.

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Old 05-21-2017, 06:22 PM   #69
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Re: Finance


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I'm not saying you do Mike, nor am I calling you an asshole for paying cash. I'm straight up saying that occasionally financing something can save you money, that's all. I know you don't care, and it's probably not a substantial amount of money but the fact remains it's worth the time to toss the numbers around before deciding to lay down the bucks.
If in paying cash or financing it, you're paying the principal balance no matter what, whether at the point of purchase or after years of financing the principal, how does paying principal PLUS interest save you money over just paying the principal?

There are times when financing comes into play, and makes sense, but it's usually on assets that increase in value and/or can provide you with ways to offset taxable income, but even then it's only a percentage.

If you needed to buy a vehicle but had an investment opportunity that was going to provide you with a great ROI, and didn't have cash for both, you do what you gotta' do, but to willingly give money to a bank when you don't have to is WHY bankers are paid a lot, have nice buildings, etc. because they find many ways to separate you from your money...

Don't forget, they stack the deck against you in the first year and collect the majority of the total interest you're charged during the first year...

Like I said, they've thought of all the angles and if they are profiting, someone's paying... not that there's anything wrong with that...
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Just realize these companies have thought about it from every angle and there is no scenario where they don't make out including 0% financing...
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Old 05-21-2017, 06:27 PM   #70
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Re: Finance


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If in paying cash or financing it, you're paying the principal balance no matter what, whether at the point of purchase or after years of financing the principal, how does paying principal PLUS interest save you money over just paying the principal?

There are times when financing comes into play, and makes sense, but it's usually on assets that increase in value and/or can provide you with ways to offset taxable income, but even then it's only a percentage.

If you needed to buy a vehicle but had an investment opportunity that was going to provide you with a great ROI, and didn't have cash for both, you do what you gotta' do, but to willingly give money to a bank when you don't have to is WHY bankers are paid a lot, have nice buildings, etc. because they find many ways to separate you from your money...

Don't forget, they stack the deck against you in the first year and collect the majority of the total interest you're charged during the first year...

Like I said, they've thought of all the angles and if they are profiting, someone's paying... not that there's anything wrong with that...

I wonder why so many rich people finance **** then? Can't say they don't , many of them do. When I say rich I mean 10 mil+ type guys.

I see your point but I am a better at managing my money than 2 % any day of the week even if I become more severely retarded. Lol. Even if i just leave in operating acct (usually what i do) how much working capital in cash I have directly reflects how much work I will take on. No sub or supplier will ever not be paid because I don't get paid.

If I was in mikes boat with my business not trying to grow and very comfortable I'd probably pay cash too.... maybe. Still makes sense to use their money that cheap.

Just trying to keep the convo going. Lol

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Old 05-21-2017, 06:28 PM   #71
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Re: Finance


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If in paying cash or financing it, you're paying the principal balance no matter what, whether at the point of purchase or after years of financing the principal, how does paying principal PLUS interest save you money over just paying the principal?

There are times when financing comes into play, and makes sense, but it's usually on assets that increase in value and/or can provide you with ways to offset taxable income, but even then it's only a percentage.

If you needed to buy a vehicle but had an investment opportunity that was going to provide you with a great ROI, and didn't have cash for both, you do what you gotta' do, but to willingly give money to a bank when you don't have to is WHY bankers are paid a lot, have nice buildings, etc. because they find many ways to separate you from your money...

Don't forget, they stack the deck against you in the first year and collect the majority of the total interest you're charged during the first year...

Like I said, they've thought of all the angles and if they are profiting, someone's paying... not that there's anything wrong with that...

Just go back, read my earlier posts and it will all make sense.
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Old 05-21-2017, 06:32 PM   #72
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Re: Finance


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I'm all ears...
I have one that is a house I used to live in. It's not a money maker but the rent covers the mortgage, maintenance and my time. It wasn't bought as an investment but it made sense to keep compared to sell at the time.

The 2nd and 3rd were bought as rentals. I have about 20k a piece in those of my money, the rest is financed. After everything is paid for on those I make around $400 each a month.

The most resent one will have 60k of my money tied up in it. It will make about $800 a month after everything is paid for. It would have to make $1200 to keep pace with the two that have loans because I have three times my own money in it.
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Old 05-21-2017, 06:44 PM   #73
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I wonder why so many rich people finance **** then? Can't say they don't , many of them do. When I say rich I mean 10 mil+ type guys.
Different level altogether and is part of a tax strategy and generally involves appreciable assets... The real question is why do they bother to pay it down and not stay perpetually in debt...
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Old 05-21-2017, 06:46 PM   #74
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Different level altogether and is part of a tax strategy and generally involves appreciable assets... The real question is why do they bother to pay it down and not stay perpetually in debt...
They do.... The ones I'm talking about. Take for instance the guy who dropped the range rover off... He bought another. Lol

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Old 05-21-2017, 06:49 PM   #75
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Re: Finance


Personally speaking I'm very disciplined with money, I have to be. I blow what I 'plan to blow. The rest I'm smart with.

It isn't real debt to me if I have the cash to pay it. I have a couple hundred thousand owed every month as a part of business. It always gets paid in full because the capital is there. Never paid interest on a supplier acct or business c.c..
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Old 05-21-2017, 06:52 PM   #76
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I have one that is a house I used to live in. It's not a money maker but the rent covers the mortgage, maintenance and my time. It wasn't bought as an investment but it made sense to keep compared to sell at the time.

The 2nd and 3rd were bought as rentals. I have about 20k a piece in those of my money, the rest is financed. After everything is paid for on those I make around $400 each a month.

The most resent one will have 60k of my money tied up in it. It will make about $800 a month after everything is paid for. It would have to make $1200 to keep pace with the two that have loans because I have three times my own money in it.
That's kind of incomplete information to even make the comparison, but your CAP rate is going to be a better barometer... what is that for the three properties you're comparing?...

Have you included in your numbers the amount of interest YOU will have saved with having that $60K in and how it affects your NET?
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Old 05-21-2017, 06:53 PM   #77
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Personally speaking I'm very disciplined with money, I have to be. I blow what I 'plan to blow. The rest I'm smart with.

It isn't real debt to me if I have the cash to pay it. I have a couple hundred thousand owed every month as a part of business. It always gets paid in full because the capital is there. Never paid interest on a supplier acct or business c.c..
Umh...
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Old 05-21-2017, 06:55 PM   #78
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Umh...
'Touche lol

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Old 05-21-2017, 07:00 PM   #79
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It isn't real debt to me if I have the cash to pay it.
If a vehicle is bought at a good price this is true close to twice. If you get in a pinch the vehicle should be able to sell for something close to what is owed on it or more. Maybe not in the first year but definitely in the second half of the loan.
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Old 05-21-2017, 07:01 PM   #80
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If a vehicle is bought at a good price this is true close to twice. If you get in a pinch the vehicle should be able to sell for something close to what is owed on it or more. Maybe not in the first year but definitely in the second half of the loan.
You and I seem to be the same school of thought. I like the cash available mostly.

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