Upgraded my Amex Gold To Platinum

[The Scott]

Some men are captains of industry.  Vincenzo?  More icon of indolence.

[Primemuscle]

"Leverage" isn't a benefit. It is a strategy used to buy property when the buyer lacks the immediate funds. "Profit" is the main benefit of investing in real estate. Borrowing always costs more than paying cash. I choose to pay cash.

You might want to give Mr. Trump a call and explain this to him. Since with him it is all about leverage with someone else's money....preferably a financial institution with deep pockets and offshore opportunities. But in a pinch, a flock of sheep donors to a failed political campaign or fake legal proceeding works well too. 

[Primemuscle]

Some men are captains of industry.  Vincenzo?  More icon of indolence.

Me...I am just an ordinary Joe, making the best out of what little I have. Definitely not someone at the Getbig financial level...although, I have never lived in my mom's basement to save money.

[The Scott]

Me...I am just an ordinary Joe, making the best out of what little I have. Definitely not someone at the Getbig financial level...although, I have never lived in my mom's basement to save money.

Well said, and true.   For some here it is rote that they, at the least, feign to live not only  beyond their means but also their ego.  You are not among them.   

Vincenzo?  His ego only stretches so far as though it were the sansabelt of the human personality.   That his limited means suffice is witness enough.

[bigkid]

"Leverage" isn't a benefit. It is a strategy used to buy property when the buyer lacks the immediate funds. "Profit" is the main benefit of investing in real estate. Borrowing always costs more than paying cash. I choose to pay cash.

This is a joke right?  You're trolling right? Leverage is a huge benefit in real estate.  Reduces your taxes, allows you to buy more assets with less money.  If you're chasing maximum "profit" then leverage is your friend.  If you told me, hey, I'm a conservative investor that is only interested in cash flow, that would be fine.  But you're not saying that.  You're saying things that are completely untrue.  Leverage is one of the main reason people buy real estate, if they couldn't leverage it, they'd be better off buying higher appreciating assets like equities.

[Sir Bicep]

This is a joke right?  You're trolling right? Leverage is a huge benefit in real estate.  Reduces your taxes, allows you to buy more assets with less money.  If you're chasing maximum "profit" then leverage is your friend.  If you told me, hey, I'm a conservative investor that is only interested in cash flow, that would be fine.  But you're not saying that.  You're saying things that are completely untrue.  Leverage is one of the main reason people buy real estate, if they couldn't leverage it, they'd be better off buying higher appreciating assets like equities.

Debt is never your "friend". All it takes is a downturn in the housing market, which is imminent, or some deadbeat tenants and you're all done. Cash is King. Stop watching infomercials.

[Doug_Steele]

Sounds like a lot of mental gymnastics. Personally I don't have a "coupon cutter's" mentality. I have an "abundance" mentality. If I need to pay 7 thousand for a surgery (that's what insurance is for BTW), I open my wallet and hand over the green. There's plenty more where that came from. No stress.

I have insurance, great pension, 401k, other investments but how is that alot of mental gymnastics?  Cash back added up, cashed out and saved $2,000 if I would have paid with my debit card, I would have gave $2,000 away. I'm just gonna assume that you think I'm a moron and have no idea how finances work but I'm not stupid enough to give away $2,000.  hell, I've paid around $16k in surgeries and gotten back the 87% - 90% of it.  keep posting more and more about the mental gymnastics. 

[Sir Bicep]

I have insurance, great pension, 401k, other investments but how is that alot of mental gymnastics?  Cash back added up, cashed out and saved $2,000 if I would have paid with my debit card, I would have gave $2,000 away. I'm just gonna assume that you think I'm a moron and have no idea how finances work but I'm not stupid enough to give away $2,000.  hell, I've paid around $16k in surgeries and gotten back the 87% - 90% of it.  keep posting more and more about the mental gymnastics. 

Health insurance and life insurance are musts. True wealth doesn't come from cash back, travel points, Olive Garden gift cards, etc.

[Doug_Steele]

Health insurance and life insurance are musts. True wealth doesn't come from cash back, travel points, Olive Garden gift cards, etc.

True wealth, huh? I have health insurance, good insurance also but you seem to be confused? I have money but I'm not gonna give it away which is something you don't seem to understand. 

[Humble Narcissist]

Health insurance and life insurance are musts. True wealth doesn't come from cash back, travel points, Olive Garden gift cards, etc.

Life insurance is stupid unless it's a term life policy for your dependent kids if you die.

[IroNat]

[bigkid]

Debt is never your "friend". All it takes is a downturn in the housing market, which is imminent, or some deadbeat tenants and you're all done. Cash is King. Stop watching infomercials.

Of course debt can be your friend.  Stop making these broad, sweeping generalizations.  Without debt, most people would never be able to own a home.  Most real estate investors would never own more than a couple properties. Debt allows you to buy an appreciating asset that can pay for itself, while your payments stay the same.  I could have bought my primary home for cash but why would I? I kept my money in the market and it's more than doubled in the last 4 years while I own a home that's also appreciated greatly.

[JustPlaneJane]

Gentlemen, please defer to Vincent Goodrum in all discussion about fiscal responsibility.

Thank you in advance.

 

[FitnessFrenzy]

.

[The Scott]

The Vincenzo visage  was made for a (plain or chocolate) milk cartoon, i.e., "Have You Seen Me?"

One supposes it would also more than suffice for a box containing Bum Grease or AnalEze.

[IroNat]

The Vincenzo visage  was made for a (plain or chocolate) milk cartoon, i.e., "Have You Seen Me?"

One supposes it would also more than suffice for a box containing Bum Grease or AnalEze.

lol

[Primemuscle]

Debt is never your "friend". All it takes is a downturn in the housing market, which is imminent, or some deadbeat tenants and you're all done. Cash is King. Stop watching infomercials.

Some financial experts advise against Real Estate as a good investment because real estate markets relate to inflation. There are different considerations for each type of real estate investor—whether a personal homeowner, a future landlord, a flipper, or a land developer.

Borrowing to invest is okay if you get an interest rate lower than the returns. Currently, interest rates are at all time lows for people with excellent credit. I recently refinanced my mortgage for 2.15% APR. It was 4.35% APR. I was able to reduce the term of the mortgage without increasing the monthly payments. Shortening the term also reduces the total amount of interest paid over the course of the loan.

You say it is best to pay cash. I disagree. If I can earn 8% investing that 'cash' elsewhere. The return on my money is 5.75% to the good. Roll these earnings back into your investment portfolio and the profits multiply.

[Sir Bicep]

Some financial experts advise against Real Estate as a good investment because real estate markets relate to inflation. There are different considerations for each type of real estate investor—whether a personal homeowner, a future landlord, a flipper, or a land developer.

Borrowing to invest is okay if you get an interest rate lower than the returns. Currently, interest rates are at all time lows for people with excellent credit. I recently refinanced my mortgage for 2.15% APR. It was 4.35% APR. I was able to reduce the term of the mortgage without increasing the monthly payments. Shortening the term also reduces the total amount of interest paid over the course of the loan.

You say it is best to pay cash. I disagree. If I can earn 8% investing that 'cash' elsewhere. The return on my money is 5.75% to the good. Roll these earnings back into your investment portfolio and the profits multiply.

[Primemuscle]

The estimated 8% return on investment isn't far fetched. Most people have a mix of investments. Assuming you invested the same amount in each of the items below, your average return is 7.725%.

Small-cap stocks   11.9%
Large-cap stocks   10.2%
Government bonds   5.5%
Treasury bills           3.3%



In the past 10 years Real Estate increased by 49%. A $300.000 real estate investment is currently worth $447.000. How much would $300,000 be valued at if invested in the mix shown above over a 10 year time period? Answer...$1,000,655.

[Primemuscle]

But you bought also spent money you normally wouldn't have on useless items as you chased points while cluttering your house. And if it's true that you spend zero in interest, for every one person who manages that, there are 100,000 people who sink into debt. Credit Cards are for saps.

The trick is to not be one of the 100,000 who go in debt over trivial purchases. Only charge what you can afford to pay off monthly. It's not that hard. If you need to buy a big ticket item, like a car, get a low interest loan. Low interest loans are a snap when you're credit score is over 800. If you don't have a good mix of credit, such as long term loans, credit cards and a good income to debt ratio, you also won't have a decent credit score. In that case, you may as well pay cash for your house and everything else you buy.