Ponderable
- Thread starter Bruddah IZ
- Start date
Cat got your tongue, I’ole? Or is that A-hole? Thanks
Bruddah IZ
DA
Right, both sides if it's a financed rental. Hence the name, balance sheet. Pretty easy stuff if you're the RE magnate that you say you are. I told you that if you're smart you would do the income statement first. That way you can see your mortgage expense a.k.a. as the banks asset and your liability.
Sheriff Joe
DA
What happened to bye?
Bruddah IZ
DA
I thought you clowns like balloons.
As expected, you can’t answer the simple question , which I have asked multiple times for all to see, of whether a house that you own, even with a mortgage on the house, is listed as an asset or a liability on your financial statement.
FYI, you list it as an asset. There is no other answer to my question.
Bruddah IZ
DA
the legend forgot who was posting. lol
I had to get him first. Now I did. as you have seen.
Bruddah IZ
DA
A real estate magnate would know what Net Income on the home that you live in is. Even in a simulated portfolio.
Bruddah IZ
DA
The banks been getting you for at least 20 years according to your imaginary portfolio.
P o
Want to buy my house?
It’s about $4m but wait I owe the bank over 500K of that because they loaned me money when I bought it for 880K. ! I’ve been using their money for 20 years at less than 5% while my money has grown by well over 5%. And they get none of the rise in asset value.
And I have lived in this expensive house for 20 years...think how much it would have cost to rent!
Yeah the bank took such advantage of me. I got in the house for less than 200K to start.
I know man, the bank really got me.
Want to buy my house?
It’s about $4m but wait I owe the bank over 500K of that because they loaned me money when I bought it for 880K. ! I’ve been using their money for 20 years at less than 5% while my money has grown by well over 5%. And they get none of the rise in asset value.
And I have lived in this expensive house for 20 years...think how much it would have cost to rent!
Yeah the bank took such advantage of me. I got in the house for less than 200K to start.
Bruddah IZ
DA
Of course you did. Lol! Still no net income to speak of.
Sheriff Joe
DA
You should've quit while you were behind.
Bruddah IZ
DA
Didn't your imaginary portfolio lose seven figures in the stock market?
My income (I mentioned my income taxes, right?) comes from my day job. Even at 7 figures annually, you don’t get rich that way. Real estate creates wealth. Got to get in the market. On the other hand, I did some r.e. financing last year and even though my bank only makes 3.15% from my home mortgage (a shitty return), I got about a 13% annualized return on helping finance a couple of houses in Pasadena. That was very good. If you knew how any of this worked, which you don’t, you’d agree with me. You’re not totally stupid, you just need to humble yourself (a lot) and start small.
Bruddah IZ
DA
You pay the bank monthly for your house. Is that how it works? Lol!
That’s how people buy real estate. For only 20% down, they get in a house that, if you buy in the right location, increases in value. The history of that, in Los Angeles where I live, is insanely great. Think about it. You buy 100% of the gain and you start with only 20% of the cost. Most mortgages are not only at an interest rate less than you make on your capital that you didn’t use to pay for the house, but the interest rate is deductible. Nothing like it! You make more sitting and living in your house for a few years than you do at your job! Well, your job, anyway...
So as I said, lose your fear, decide you know less than you think you do, and jump in. I’m telling you, San Pedro is gonna pop next. Get in for 750 (ie 150 down) and in 3-4 years, if Trump doesn’t totally tank us the way the last Republican president did, get out for 1.1. How much will those monthly payments be? $3500 or so? Live in it or rent it, same difference right?
Bruddah IZ
DA
A 20% down payment is just you buying 20% of equity that you can use to put yourself in debt more. I can tell you've never analyzed your amortization schedule. For example, your loan, 840k at 3.15%, your first payment hits you with a 60% interest payment. You're not down to 3.15% until your 349th month. Again 3rd grade math facts. Living in it or renting it is completely different. If you're renting you actually have an asset. Live in it, you actually have a liability that generates no income from the property nor the equity.
You should re-read my post and buy that house in San Pedro. Trust me, young’un...you won’t make more money doing anything else you do. And I don’t know how much you currently pays for rent, but if you live in it, your “income” is the savings on rent that you would be paying elsewhere. Ya see how that works? And of course the interest that you’re paying is deductible, another huge benefit to purchasing real estate vs other forms of assets.
Hüsker Dü
DA
I marked this post as "Informative" as hopefully dizzy can use it as a first step in his education.