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Old 09-21-2017, 09:42 PM   #181
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Re: Finance


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Stop it KAP you're tempting me to flip mine now....a few little schnick-schnacks and I could get 160....nearly 3x what I payed for it
Yeah, but then you'd have to rent a place...

Actually, you are in an IDEAL SCENARIO with a paid off primary residence to get a HELOC and avoid the normal financial hits you'd have to take to get started if you didn't have the cash... then go check into Tax Deed / Tax Lien sales in your state as well as Bank REO properties, HUD properties and Probate properties... those properties are typically already sold with equity built into them as they are looking for quick sales (which you'd be in a position to do) and are looking to sell at what's owed on them...

No need to sell your house or rent but you CAN use the cash equity you wisely built up through cash purchase and appreciation... now picture that with just ONE scenario as laid out above and how that can dramatically increase your position... you wouldn't be in such an ideal position, and would have limited your HELOC and opportunity if you hadn't taken advantage of the market an made the prudent decision to pay off your house... certainly goes against the programmed thinking out there...

Congrats!...

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Old 09-21-2017, 09:51 PM   #182
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Re: Finance


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Yeah, but then you'd have to rent a place...

Actually, you are in an IDEAL SCENARIO with a paid off primary residence to get a HELOC and avoid the normal financial hits you'd have to take to get started if you didn't have the cash... then go check into Tax Deed / Tax Lien sales in your state as well as Bank REO properties, HUD properties and Probate properties... those properties are typically already sold with equity built into them as they are looking for quick sales (which you'd be in a position to do) and are looking to sell at what's owed on them...

No need to sell your house or rent but you CAN use the cash equity you wisely built up through cash purchase and appreciation... now picture that with just ONE scenario as laid out above and how that can dramatically increase your position... you wouldn't be in such an ideal position, and would have limited your HELOC and opportunity if you hadn't taken advantage of the market an made the prudent decision to pay off your house... certainly goes against the programmed thinking out there...

Congrats!...
I'd thought about it briefly and wondering if I could get lucky twice but there's another owner on the deed and I think she feels too comfortable after years of feast, famine, and the uncertainty that goes along with it to take the risk

EDIT: What I did wasn't all that easy for me to do...It took some time and it did make me a little nervous. Once the transition was over it was an ahh moment though. I was basically homeless for a few months while looking with all my stuff in storage
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Old 09-21-2017, 10:01 PM   #183
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Re: Finance


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I'd thought about it briefly and wondering if I could get lucky twice but there's another owner on the deed and I think she feels too comfortable after years of feast, famine, and the uncertainty that goes along with it to take the risk
The other side of the coin...

Well, keep in mind, if you're buying property at a discounted rate (35 - 45% of ARV) it decreases risk, and worst case, it can always be re-sold quickly, and the HELOC paid back down but being a LOC it's there should an opportunity present itself that you'd both feel comfortable taking advantage of...

But I hear ya' on the other owner front...
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Old 09-21-2017, 10:08 PM   #184
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Re: Finance


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The other side of the coin...

Well, keep in mind, if you're buying property at a discounted rate (35 - 45% of ARV) it decreases risk, and worst case, it can always be re-sold quickly, and the HELOC paid back down but being a LOC it's there should an opportunity present itself that you'd both feel comfortable taking advantage of...

But I hear ya' on the other owner front...
Now if I could make a decent price and buy some land with farm animals she'd have the papers signed before I was out of bed the following day
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Old 09-21-2017, 10:11 PM   #185
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Re: Finance


I use the banks money to buy inventory. Rather pay interest than out lay all the cash for machinery purchases.

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Old 09-22-2017, 08:52 AM   #186
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Re: Finance


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I use the banks money to buy inventory.
Financing inventory is a pretty common and pretty safe business practice.
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Old 09-22-2017, 09:15 PM   #187
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Re: Finance


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I use the banks money to buy inventory. Rather pay interest than out lay all the cash for machinery purchases.

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I can see this to a degree but is nice to operate with low debt obligations. All of the big corporations have a revolving line of credit otherwise a lot of times they couldn't make payroll. It's not that way with all but I'm sure it is with Department stores. If it makes $$ yes if it's a loser you will be too
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Old 09-22-2017, 10:45 PM   #188
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Re: Finance


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I can see this to a degree but is nice to operate with low debt obligations. All of the big corporations have a revolving line of credit otherwise a lot of times they couldn't make payroll. It's not that way with all but I'm sure it is with Department stores. If it makes $$ yes if it's a loser you will be too
It's nice not to shell out 10k at time to buy a bunch of stuff. You will always have money in repairs and marketing. Stuff turns over in an average of 45 days for the most part. Usually at 3x investment.

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Old 09-23-2017, 10:48 PM   #189
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Re: Finance


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It's nice not to shell out 10k at time to buy a bunch of stuff. You will always have money in repairs and marketing. Stuff turns over in an average of 45 days for the most part. Usually at 3x investment.

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Yeah I never question equipment. If I know I need it then I know it pretty much pays for itself. It's long money that concerns me. Who wants to finance a freakin new pick up truck for 10 years?

I can now buy 4 used and maintain and keep them running cheaper than I can buy new

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