Multi Sport
DA
When was the ladt time you were in San Ysidro?
Ponderable
- Thread starter Bruddah IZ
- Start date
Bruddah IZ
DA
I am keeping it simple. Net Income from your home/Total Average Asset = Return on Asset. Oh right, the equity. Net income/Total Average Equity= Return on Equity. Pretty simple. The Net Income from your domicile has been elusive thus far.
That’s not simple at all. That’s an equation. Deal in reality. If you buy a house for $500K at a 4% loan, 20% down, and you live in it (remember how I told you the rent you save is essentially income, so count that rental value as income...) and you sell it for $750K in 4 years, how much did you make on your cash investment, as a percentage?
If you can’t answer the simple question of whose mortgage you pay, your own or your landlord’s, how can we have a dialogue?
Bruddah IZ
DA
We seem to be dialoguing just fine with both yours and my mortgage not generating any monthly net income to fit the definition of an asset.
Bruddah IZ
DA
Its very simple. All that is missing is the monthly Net Income which you've not provided from the begining of our conversation. How can we have a dialogue if you keep holding out your property as if is generating income when it's not?
Who is the numbnuts who told you that an asset must produce income?
It’s not the dictionary definition nor the bank definition.
I think never and that was too recently.
My house that I live in doesn’t generate net income. It just gives me an expensive place to live instead of paying rent and generates a shockingly impressive addition to my net worth...far more important than income.
These are the reasons I’m so much wealthier than you. Why aren’t you learning?
Bruddah IZ
DA
If your net worth is far more important than income, stop work, and live on your net worth.....and humility.
I like my job gives me something to do every day.
Bruddah IZ
DA
Exactly. Do it for free. Your Net worth is your income. Everything else is pro bono work
Nope. Anyhow I tried today to teach you about how to grow wealth by buying houses. You don’t want to learn because you have done all this math in your head.
So you don’t buy houses.
Got it.
Bruddah IZ
DA
Nope I don't buy houses. If the borrower history is excellent and the LTV is low, I have my attorney review the docs and have the borrower sign the docs making sure I get a promissory note and DOT that I record myself before releasing the funds. Then I just sit back and watch my money work. No PMI, no insurance payments, no property tax payments, no maintenance. The borrower pays for all of it.
LOL.
Really funny. “Investing” for a 5% return of ordinary income? You have got to be the only individual investor I am aware of who would do that. Wow. Stay in your cubicle.
Bruddah IZ
DA
Passive income starting on day one. As opposed to no Net income. 5% isn't until the 340th month. Otherise I'm returning about 60 percent plus interest payment per month.
nope you're making a loan that pays interest at an interest rate.
the interest is at about 5% on cash per year...or less.
the interest is ordinary income and you don't get the growth on the principal because the growth of the principal belongs to the borrower.
it's a 5% annual return of ordinary income on your cash, i.e. a shitty investment.
"stay poor, my friend."
Bruddah IZ
DA
Amortization schedule pal. Check yours out. You’re still making a 20 percent interest payment a month.
Keep investing for 5% cash on cash. Ordinary income.
I think you’ll beat inflation! Congrats!