Bruddah IZ
DA
No, I like judging by your own experiences. But all you've provided is a fake loan amount, fake capital gains, and fake down payment. No purchase price or interest rate.
Essential Economics for Politicians
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Bruddah IZ
DA
Agree. The bank loves that mind set. That's how they make money. They know that the time value of money is where they easily bypass your capital gains.
I amortized your fake loan of 800k at 5% for 30 years. If I am the bank I am excited. 70 to 75% of your monthly mortgage payment goes to interest for the first 6 years of your loan. 59 to 69% of your monthly mortgage payment goes to interest for the next 6 years. You don't get to 5% until roughly the 28th year of a 30 year loan. The bank puts yours and others monthly payments back to work as soon as they get it every month. The bank has 1000's of borrowers in the hopper that are willing to borrow our interest payments from the bank the day after you make your mortgage payment. And the process begins again!! Can your asset do that monthly? Questions?
Of course while the 100% of my house is appreciating that I only paid 20% down on, I am capturing all that equity and the rest of my money is working for me elsewhere and growing.
Again, as an individual I can buy houses, I can’t be a bank. So the only choice here is to buy the real estate...and make a lot of money!
I have made several real estate transactions, but using the house I’ve been in for 20 years, it was 885K in 1997, now valued at about $4m, interest rate is 3.5% and I have refi’d a couple of times. None of that is fake. I sold a house recently that I bought with 960K cash in 2012 and sold for 1.7m in 2016. Tell me how the banks did better than I did.
Bruddah IZ
DA
You can be a lender.
too rich for my blood. i'd rather buy houses.
Bruddah IZ
DA
So what was the purchase price?
Bruddah IZ
DA
That makes no sense and doesn't sound like it is too rich for you. Unless the 960k cash purchase is fake too.
Bruddah IZ
DA
The equity actually belongs to the bank but you can borrow it from them if you like. Of course that's probably why you were able to re-fi for cash out or lower interest rate. In the mean time the bank is getting monthly income from you that they can use immediately without your permission. Your equity can't do that.
i am not a guy who is going to lend money to others. not my thing. give me real property for my money; not a promissory note and DOT.
Bruddah IZ
DA
Even if the price is right?
Hey " Messy " Financial experience.....You should read the below post..........Again.
Hey " Messy " Financial experience.....You should read the above post..........Again.
I don’t know any individuals who do residential real estate lending. Weird concept. Again, you should try dealing with real life. Pretend you’re someone with money to invest (I know it’s a stretch)...and nobody is asking you to be their mortgage co....because they’re not. Now what would you do?
You really are ignorant. It was just not one period, just one I used as an example.
Do you recall the 70s and early 80s? Do you recall 18% mortages? How much of a profit would you be making if you sold your home three years after you purchased it?
Kinda funny how you are presenting yourself. All the crying your party does about the 2% and you are probably in the 1%. You do realize that most cannot do what you and that many people have lost their asses in real estate.
Bruddah IZ
DA
You're in a different cocoon. By choice. And that's fine. That's why you don't know any private lenders.
How did they lose their asses in real estate? Predatory lending practices that Republicans don’t want to curb? Teaser rates that they get duped into taking by the banks?
When you answer the questions I posed you will find your answer. And please try to stay on point without going off the rails. What do teaser rates have to do with a 17% interest rate back in the late 70s?
Do the math and then let me know how well your investment would have worked out for you back then.
Bruddah IZ
DA
An increase in the money supply is what set the stage for all kinds of moral hazard and asymmetrical information in the housing market.
Bruddah IZ
DA
Not just the Republicans but the Democrats as well.
Bruddah IZ
DA
Duped in to thinking their buying an asset.
You don’t know what an asset is. Sometimes assets appreciate and sometimes they depreciate. Real estate is the best asset to have.