Lending question

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hurleyjd
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Re: Lending question

Postby hurleyjd » Thu May 04, 2017 7:34 am

Can land keep going up at the rate it has? Land investment is not as liquid if you need money and need to sell quick. Land has a cost to it each year in taxes. Also if I doubled the amount of land I would also have to double the management of the land to make it pay. When you are working at 100% of your ability and you take on more responsibility then some areas will be neglected. Just my thoughts on how to keep your head above water. I know some persons in my area that has bought and expanded and had to buy 1/2 of the land back after a divorce.
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Re: Lending question

Postby RanchMan90 » Thu May 04, 2017 7:53 am

The most interesting borrowing situation I've heard of was buying cattle on a credit card with 0% interest for 1 year, 25% interest if not repayed in 1 year. Basically just cash flowing everything in a year. They must've gotten that from the book of bad ideas :shock:
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Re: Lending question

Postby Stocker Steve » Thu May 04, 2017 8:18 am

hurleyjd wrote:Can land keep going up at the rate it has?


Ag land is not going up here - - because it does not cash flow and outside investors want more fertile rentable soil. Most would be sellers are not motivated so death or divorce is what usually puts land on the market.
If interest rates ever go up land demand would drop and/or the government would default on debt.
Meanwhile, the aggressive xxxxx sub divide into ranchettes and get more $ that way. So they are getting more per acre for building sites.
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Re: Lending question

Postby Stocker Steve » Thu May 04, 2017 8:23 am

RanchMan90 wrote:The most interesting borrowing situation I've heard of was buying cattle on a credit card with 0% interest for 1 year, 25% interest if not repayed in 1 year. Basically just cash flowing everything in a year. They must've gotten that from the book of bad ideas :shock:


Was it Trump?
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Re: Lending question

Postby RanchMan90 » Thu May 04, 2017 8:36 am

Stocker Steve wrote:
RanchMan90 wrote:The most interesting borrowing situation I've heard of was buying cattle on a credit card with 0% interest for 1 year, 25% interest if not repayed in 1 year. Basically just cash flowing everything in a year. They must've gotten that from the book of bad ideas :shock:


Was it Trump?
It was a very like-minded pretty successful fellow. What do you think about that?
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Re: Lending question

Postby Kell-inKY » Thu May 04, 2017 8:39 am

Cross-7 wrote:whether I should pay off my current place and use it as collateral when I find another place
Or keep cash on hand

You have the (rare) ability to pay off your debt and tell the bankers to kiss your be nice, I know what I would be doing. We are conditioned to be perpetual debt slaves. Having debt freedom has to be worth something vs. missed (possible) opportunities.

Not an answer to your question I know, not trying to derail your post.
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Re: Lending question

Postby Jogeephus » Thu May 04, 2017 9:55 am

RanchMan90 wrote:The most interesting borrowing situation I've heard of was buying cattle on a credit card with 0% interest for 1 year, 25% interest if not repayed in 1 year. Basically just cash flowing everything in a year. They must've gotten that from the book of bad ideas :shock:


I know a guy who buys trucks that way. He'll buy one with a credit card then when the year is almost up he'll pick another 0% for one year card out of the junk mail and activate it and pay off the other card with that. By doing that his truck isn't financed so he saves on insurance and pays no interest. Not for me but he seems to like it. I'd get busy and forget to redo it and get hit by the high interest.
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Re: Lending question

Postby ddd75 » Thu May 04, 2017 11:32 am

Brute 23 wrote:
ddd75 wrote:
Brute 23 wrote:
Inlighten me.... but you better bring some thing better than that I can make more than they charge me in interest bs



obviously you don't have the capacity to figure it out, so I'm not going to try. Go read a finance 101 book and that might help a little.


Naw... your sooo smart. Come on. Don't crawfish now.

Just what happened is what most people do. Yall try to sound smarter than yall are by repeating some thing you heard, from some one else, trying to sound smart.

That playing the interest stuff is bs when you apply real world, not book, numbers to it. Best.... absolutely best, case scenario is you have risked a whole paid for asset to make 1 or 2%... at best... if every thing goes perfect. That is re-dic-u-lous. You put up collateral at maybe $2 to $1 in order to make peanuts on that money... at best. AND, if you really are soo great at making money, it should not be any issue to put the money down since you should be flush with cash from all those profits. Real wealthy people are looking for places, like land, to squirrel away money.

The reality is most people who buy zero down do not have the available cash... and that's ok... but own that. Say I don't I have the cash to put down and fulfill my other obligations. Don't try to sound smart and act like you are playing some interest game that does not exist.

I have actually heard some legit reasons for people buying zero down but they all involved people being flat out honest with what they were trying to do... not hiding behind financial books.


you obviously have it all figured out... :clap: :lol2:

5%...6%... 2:1... every situation, every person.. you have it all figured out.. no info needed even!

congrats.
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Re: Lending question

Postby ChrisB » Thu May 04, 2017 12:25 pm

Jogeephus wrote:
RanchMan90 wrote:The most interesting borrowing situation I've heard of was buying cattle on a credit card with 0% interest for 1 year, 25% interest if not repayed in 1 year. Basically just cash flowing everything in a year. They must've gotten that from the book of bad ideas :shock:


I know a guy who buys trucks that way. He'll buy one with a credit card then when the year is almost up he'll pick another 0% for one year card out of the junk mail and activate it and pay off the other card with that. By doing that his truck isn't financed so he saves on insurance and pays no interest. Not for me but he seems to like it. I'd get busy and forget to redo it and get hit by the high interest.


Had a co-worker who went to the bank to get a construction loan to build a house. A young banker told him to just get as many credit cards as possible and to charge everything and make minimum payments until he was done and then come back and they would give him a loan to pay off all the credit cards. As you can probably guess, when he finally finished the house and went back to the bank the young guy was no longer employed there and the bank told him he had too much credit card debt to get a loan. He finally worked it out with them, but it caused him a lot of sleepless nights for a few weeks.
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Re: Lending question

Postby TexasBred » Thu May 04, 2017 5:36 pm

ddd75 wrote:
Brute 23 wrote:
ddd75 wrote:

obviously you don't have the capacity to figure it out, so I'm not going to try. Go read a finance 101 book and that might help a little.


Naw... your sooo smart. Come on. Don't crawfish now.

Just what happened is what most people do. Yall try to sound smarter than yall are by repeating some thing you heard, from some one else, trying to sound smart.

That playing the interest stuff is bs when you apply real world, not book, numbers to it. Best.... absolutely best, case scenario is you have risked a whole paid for asset to make 1 or 2%... at best... if every thing goes perfect. That is re-dic-u-lous. You put up collateral at maybe $2 to $1 in order to make peanuts on that money... at best. AND, if you really are soo great at making money, it should not be any issue to put the money down since you should be flush with cash from all those profits. Real wealthy people are looking for places, like land, to squirrel away money.

The reality is most people who buy zero down do not have the available cash... and that's ok... but own that. Say I don't I have the cash to put down and fulfill my other obligations. Don't try to sound smart and act like you are playing some interest game that does not exist.

I have actually heard some legit reasons for people buying zero down but they all involved people being flat out honest with what they were trying to do... not hiding behind financial books.


you obviously have it all figured out... :clap: :lol2:

5%...6%... 2:1... every situation, every person.. you have it all figured out.. no info needed even!

congrats.

DD....the man called you out. Man up and explain it or drop the crap. BTW borrowers don't get turned down because they have too much.....you're a joke.
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Re: Lending question

Postby TennesseeTuxedo » Thu May 04, 2017 5:44 pm

ChrisB wrote:
Jogeephus wrote:
RanchMan90 wrote:The most interesting borrowing situation I've heard of was buying cattle on a credit card with 0% interest for 1 year, 25% interest if not repayed in 1 year. Basically just cash flowing everything in a year. They must've gotten that from the book of bad ideas :shock:


I know a guy who buys trucks that way. He'll buy one with a credit card then when the year is almost up he'll pick another 0% for one year card out of the junk mail and activate it and pay off the other card with that. By doing that his truck isn't financed so he saves on insurance and pays no interest. Not for me but he seems to like it. I'd get busy and forget to redo it and get hit by the high interest.


Had a co-worker who went to the bank to get a construction loan to build a house. A young banker told him to just get as many credit cards as possible and to charge everything and make minimum payments until he was done and then come back and they would give him a loan to pay off all the credit cards. As you can probably guess, when he finally finished the house and went back to the bank the young guy was no longer employed there and the bank told him he had too much credit card debt to get a loan. He finally worked it out with them, but it caused him a lot of sleepless nights for a few weeks.


I find it hard to believe that even an unseasoned loan officer would give out advice like that.
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Re: Lending question

Postby TennesseeTuxedo » Thu May 04, 2017 5:46 pm

RanchMan90 wrote:The most interesting borrowing situation I've heard of was buying cattle on a credit card with 0% interest for 1 year, 25% interest if not repayed in 1 year. Basically just cash flowing everything in a year. They must've gotten that from the book of bad ideas :shock:


I'd do that on stockers.
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Re: Lending question

Postby TennesseeTuxedo » Thu May 04, 2017 5:47 pm

Jogeephus wrote:
RanchMan90 wrote:The most interesting borrowing situation I've heard of was buying cattle on a credit card with 0% interest for 1 year, 25% interest if not repayed in 1 year. Basically just cash flowing everything in a year. They must've gotten that from the book of bad ideas :shock:


I know a guy who buys trucks that way. He'll buy one with a credit card then when the year is almost up he'll pick another 0% for one year card out of the junk mail and activate it and pay off the other card with that. By doing that his truck isn't financed so he saves on insurance and pays no interest. Not for me but he seems to like it. I'd get busy and forget to redo it and get hit by the high interest.


I can't fathom not having insurance.
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Re: Lending question

Postby Jogeephus » Thu May 04, 2017 5:53 pm

TennesseeTuxedo wrote:
Jogeephus wrote:
RanchMan90 wrote:The most interesting borrowing situation I've heard of was buying cattle on a credit card with 0% interest for 1 year, 25% interest if not repayed in 1 year. Basically just cash flowing everything in a year. They must've gotten that from the book of bad ideas :shock:


I know a guy who buys trucks that way. He'll buy one with a credit card then when the year is almost up he'll pick another 0% for one year card out of the junk mail and activate it and pay off the other card with that. By doing that his truck isn't financed so he saves on insurance and pays no interest. Not for me but he seems to like it. I'd get busy and forget to redo it and get hit by the high interest.


I can't fathom not having insurance.


Everyone has to have insurance but if you have a lien on the vehicle you have to have full coverage which is much higher than liability.
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Re: Lending question

Postby TennesseeTuxedo » Thu May 04, 2017 6:34 pm

Jogeephus wrote:
TennesseeTuxedo wrote:
Jogeephus wrote:
I know a guy who buys trucks that way. He'll buy one with a credit card then when the year is almost up he'll pick another 0% for one year card out of the junk mail and activate it and pay off the other card with that. By doing that his truck isn't financed so he saves on insurance and pays no interest. Not for me but he seems to like it. I'd get busy and forget to redo it and get hit by the high interest.


I can't fathom not having insurance.


Everyone has to have insurance but if you have a lien on the vehicle you have to have full coverage which is much higher than liability.


I realize that but I still can't imagine not insuring an asset of value.
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