View Poll Results: Responsible Individual Net Worth to own a $100-$150K Car?
$400K
24
13.87%
$500K
10
5.78%
$700K
11
6.36%
$900K
2
1.16%
$1M +
126
72.83%
Voters: 173. You may not vote on this poll
Responsible Net Worth for Owning a $100K-$150K Car?
#151
GT3 player par excellence
Lifetime Rennlist
Member
Lifetime Rennlist
Member
1. never over leverage on mortgage
2. if you must, then OVER LEVERAGE. when you are at 150% LTV with $5MM + loans... banks will not foreclose you. they can't write that off. they WILL negotiate with you and you may have to pay down a bit but you may also see 2% interest...... but, that's not a good thing to aim for
"and what happens when CRE rental demand dries up so you can't rent it or sell it? "
ur lingo implies you are in banking or RE?
CRE in vegas is what you described above. ugly. i have seen 9MM prop dropped to 1.7MM in 2 years.
but some CRE are golden. marina, russian hill, pac ht in SF, CRE has never dried up even in 07-09. price stayed put, but didn't drop. of course, with cap around 4% they aren't cheap...
and if EQ hits..... well... you know.
#152
GT3 player par excellence
Lifetime Rennlist
Member
Lifetime Rennlist
Member
not that your play is wrong, but just does'nt work here. i need to move.
#153
Drifting
#154
2 years ago it was easy to get cash flow here in vegas. Now everyone is late to the party and driving prices way up and inventory is way down due to big money investors buying pocket listings so the average family that wants to buy a house to live in gets screwed badly. I like to represent people who will live in the home even though they are harder to deal with. Over 50% of all transactions in vegas/henderson is still cash deals. Many going to hedge funds and other investors. If anyone wants to jump in I would buy multi-unit apartments. Single family homes are way overinflated here and you can't buy condos with loans and HOAs are keeping investors out even if you have cash. So buying up something like a 12 unit apartment complex in the hood and becoming a slumlord is the way to go right now.
And I paid for my car in full. So I guess I am responsible and yet irresponsible at the same time because I have months where I don't make anything and other months where I could pull in 50k a month or anywhere in between. Being a realtor in a market with no inventory is tough on everyone unless you are really hooked up with the asset managers. Back to the car. I really didn't NEED this car. I just wanted a porsche for over 30 years so I went for it a few months after my 44th birthday. I got no kids unless a pomeranian counts. (don't laugh)
And I paid for my car in full. So I guess I am responsible and yet irresponsible at the same time because I have months where I don't make anything and other months where I could pull in 50k a month or anywhere in between. Being a realtor in a market with no inventory is tough on everyone unless you are really hooked up with the asset managers. Back to the car. I really didn't NEED this car. I just wanted a porsche for over 30 years so I went for it a few months after my 44th birthday. I got no kids unless a pomeranian counts. (don't laugh)
#155
Three Wheelin'
RE is location dependent obviously. in your area, the cash on cash play is working. and in your case, if u can get I/O even better. but in SF 75% LTV will not get you positive CF, forget it. at 60%, you MIGHT have a chance. so in this case, you would have to play on appreciation (networth) rather than CF.
not that your play is wrong, but just does'nt work here. i need to move.
not that your play is wrong, but just does'nt work here. i need to move.
#156
Rennlist Member
Worth
I think it speaks volumes about our collective need to borrow money when the title of the thread refers to owning a car but then all kinds of advice is given about how to leverage this or that to borrow more.
Think about it. You are borrowing money to buy an asset that may or may not appreciate, and then you are taking the cash flow proceeds which are again speculative to finance or lease a car?
Here is how you can tell if you can own (not finance or lease) a 100 k car. If you can write a check for that about and take possession of the title, which means you own the car, then you can afford to own that car.
Now if the question is about financing a car or leasing a car, then we can talk about disposable income.
However I also realize if the only people that drove a porsche owned it free of liens, porsche would not be in business.
Think about it. You are borrowing money to buy an asset that may or may not appreciate, and then you are taking the cash flow proceeds which are again speculative to finance or lease a car?
Here is how you can tell if you can own (not finance or lease) a 100 k car. If you can write a check for that about and take possession of the title, which means you own the car, then you can afford to own that car.
Now if the question is about financing a car or leasing a car, then we can talk about disposable income.
However I also realize if the only people that drove a porsche owned it free of liens, porsche would not be in business.
#157
Rennlist Member
I think it speaks volumes about our collective need to borrow money when the title of the thread refers to owning a car but then all kinds of advice is given about how to leverage this or that to borrow more.
Think about it. You are borrowing money to buy an asset that may or may not appreciate, and then you are taking the cash flow proceeds which are again speculative to finance or lease a car?
Here is how you can tell if you can own (not finance or lease) a 100 k car. If you can write a check for that about and take possession of the title, which means you own the car, then you can afford to own that car.
Now if the question is about financing a car or leasing a car, then we can talk about disposable income.
However I also realize if the only people that drove a porsche owned it free of liens, porsche would not be in business.
Think about it. You are borrowing money to buy an asset that may or may not appreciate, and then you are taking the cash flow proceeds which are again speculative to finance or lease a car?
Here is how you can tell if you can own (not finance or lease) a 100 k car. If you can write a check for that about and take possession of the title, which means you own the car, then you can afford to own that car.
Now if the question is about financing a car or leasing a car, then we can talk about disposable income.
However I also realize if the only people that drove a porsche owned it free of liens, porsche would not be in business.
I think I said this in fewer words about 6 pages ago...
#158
Drifting
good point.
1. never over leverage on mortgage
2. if you must, then OVER LEVERAGE. when you are at 150% LTV with $5MM + loans... banks will not foreclose you. they can't write that off. they WILL negotiate with you and you may have to pay down a bit but you may also see 2% interest...... but, that's not a good thing to aim for
"and what happens when CRE rental demand dries up so you can't rent it or sell it? "
ur lingo implies you are in banking or RE?
CRE in vegas is what you described above. ugly. i have seen 9MM prop dropped to 1.7MM in 2 years.
but some CRE are golden. marina, russian hill, pac ht in SF, CRE has never dried up even in 07-09. price stayed put, but didn't drop. of course, with cap around 4% they aren't cheap...
and if EQ hits..... well... you know.
1. never over leverage on mortgage
2. if you must, then OVER LEVERAGE. when you are at 150% LTV with $5MM + loans... banks will not foreclose you. they can't write that off. they WILL negotiate with you and you may have to pay down a bit but you may also see 2% interest...... but, that's not a good thing to aim for
"and what happens when CRE rental demand dries up so you can't rent it or sell it? "
ur lingo implies you are in banking or RE?
CRE in vegas is what you described above. ugly. i have seen 9MM prop dropped to 1.7MM in 2 years.
but some CRE are golden. marina, russian hill, pac ht in SF, CRE has never dried up even in 07-09. price stayed put, but didn't drop. of course, with cap around 4% they aren't cheap...
and if EQ hits..... well... you know.
#159
Rennlist Member
My RE philosophy
1. Buy low sell high. I am not a flipper but buy and hold. I really like to own my properties not the bank.
2. Don't over leverage I don't like more then 50%
3. Location, Location, Location
4. Positive cash flow at 80% occupancy
5. Treat your tenats fairly. By doing this I don't have problems finding new tenants. My occupancy runs right at 100% and never below 80%
Peter
1. Buy low sell high. I am not a flipper but buy and hold. I really like to own my properties not the bank.
2. Don't over leverage I don't like more then 50%
3. Location, Location, Location
4. Positive cash flow at 80% occupancy
5. Treat your tenats fairly. By doing this I don't have problems finding new tenants. My occupancy runs right at 100% and never below 80%
Peter
#160
Drifting
small bank charges too high of an interest rate.
#161
Drifting
Yea, been looking into buying a rental prop in SF. Liked a 600k condo in SOMA, But with 20 down I can't see how CF can even break even. Mortgage will be around 2k. Place will rent for probably 3k+. So after tax, mortgage and rent probably even out. That still leaves the ridiculous HOAs in the city and prop tax.
#162
Race Director
I have 1 property besides my house. Honestly I know nothing about this stuff but I bought a vacant lot in downtown Tampa thinking I could make a little money on it in 5-10 years. Well that was 7 years ago and I can't sell it for what I paid for it. The only option I think is to build something on it and rent. It's in a neighborhood right off the Hillsboro river and is Zoned commercial. People have taken older houses and turned them into law offices, medical practice or some just fix the old house and live in it. So I could build what ever I wanted....problem is I don't have the money to build anything.
How would I advertise to find someone to build on this property and then we could share the revenue for rental or if the land and building sold we could share that? Is this even doable?
How would I advertise to find someone to build on this property and then we could share the revenue for rental or if the land and building sold we could share that? Is this even doable?
#163
Rennlist Member
I have 1 property besides my house. Honestly I know nothing about this stuff but I bought a vacant lot in downtown Tampa thinking I could make a little money on it in 5-10 years. Well that was 7 years ago and I can't sell it for what I paid for it. The only option I think is to build something on it and rent. It's in a neighborhood right off the Hillsboro river and is Zoned commercial. People have taken older houses and turned them into law offices, medical practice or some just fix the old house and live in it. So I could build what ever I wanted....problem is I don't have the money to build anything.
How would I advertise to find someone to build on this property and then we could share the revenue for rental or if the land and building sold we could share that? Is this even doable?
How would I advertise to find someone to build on this property and then we could share the revenue for rental or if the land and building sold we could share that? Is this even doable?
Parterships never work BTDT and got the t shirt several times.
Buying vacant lots, ie non income producing properties, is tough game. You need to double your money in 7 years just to keep even. Like race or track cars it is much better return to buy already built than do it yourself.
Peter
#164