Lending question

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RanchMan90
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Re: Lending question

Postby RanchMan90 » Thu May 04, 2017 6:35 pm

TennesseeTuxedo 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'd do that on stockers.

You buy stocker cattle on a credit card and buy an lrp policy on them? How has it worked out for you?
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TennesseeTuxedo
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Re: Lending question

Postby TennesseeTuxedo » Thu May 04, 2017 6:41 pm

RanchMan90 wrote:
TennesseeTuxedo 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'd do that on stockers.

You buy stocker cattle on a credit card and buy an lrp policy on them? How has it worked out for you?


Sorry, I should have been more precise. I said I "would" do that. I don't mean to imply that I "have" done that.

If I were inclined to buy stocker calves, and I had the cash to do so, and someone offered me interest free money to buy them with I can't come up with any reason not to. Obviously the key component in my equation is that I have the money to sell at a loss or payoff the interest free loan when the year has expired.

Better?
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Re: Lending question

Postby RanchMan90 » Thu May 04, 2017 6:45 pm

Sounds good to me :cowboy:
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Re: Lending question

Postby Jogeephus » Thu May 04, 2017 7:49 pm

TennesseeTuxedo wrote:
Jogeephus wrote:
TennesseeTuxedo wrote:
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.


I don't. I only carry liability. Way I figure it, your vehicle depreciates every minute and the insurance guys are only going to pay you what the book says and the difference between the premiums is enough to bank and these savings will go a long way toward buying a new vehicle if you need one.
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TennesseeTuxedo
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Re: Lending question

Postby TennesseeTuxedo » Thu May 04, 2017 7:55 pm

Jogeephus wrote:
TennesseeTuxedo wrote:
Jogeephus wrote:
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.


I don't. I only carry liability. Way I figure it, your vehicle depreciates every minute and the insurance guys are only going to pay you what the book says and the difference between the premiums is enough to bank and these savings will go a long way toward buying a new vehicle if you need one.


I don't carry replacement on my junkers but I do on my newer vehicles. Il not prepared to lose $30k plus if I total my truck.
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Re: Lending question

Postby Jogeephus » Thu May 04, 2017 8:39 pm

TennesseeTuxedo wrote:I don't carry replacement on my junkers but I do on my newer vehicles. Il not prepared to lose $30k plus if I total my truck.


I can understand that.
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Re: Lending question

Postby ddd75 » Thu May 04, 2017 9:12 pm

TexasBred wrote:
ddd75 wrote:
Brute 23 wrote:
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.



Right..

No one earns more than 4.5% on money..

putting out 6 figures for a down payment on a working farm would be a good thing to do..

primary mortgage interest can't be written off....

as long as you can 'afford' the loan every bank will give you a loan .. smooth as silk...

Collateral shouldn't be given to obtain a loan.

Who's the joke?
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Re: Lending question

Postby Brute 23 » Thu May 04, 2017 10:09 pm

:lol: :lol: :lol: I'm pretty sure that proved my point.
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Re: Lending question

Postby ddd75 » Fri May 05, 2017 6:02 am

Brute 23 wrote::lol: :lol: :lol: I'm pretty sure that proved my point.



right.. lets pay as much as we can "down"... while enjoying the lowest borrowing costs ever in our lifetimes..


:lol2: :lol2: :lol2: :lol2: :lol2: :lol2: :lol2: :lol2: :lol2: :lol2: :lol2: :lol2:
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Re: Lending question

Postby TexasBred » Fri May 05, 2017 8:09 am

Brute 23 wrote::lol: :lol: :lol: I'm pretty sure that proved my point.

:nod: :nod: :nod: :nod:
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Re: Lending question

Postby Stocker Steve » Fri May 05, 2017 1:51 pm

RanchMan90 wrote:You buy stocker cattle on a credit card and buy an lrp policy on them? How has it worked out for you?


A friend of mine has done something like this.
- In a rising market the inventory increases in value and you cannot avoid being profitable. Nice when it happens. :cowboy:
- In a stable market your COG is key and so productive pasture will be profitable unless corn is dirt cheap. :nod:
- In a declining market you can lose your be nice and LRP is a buffer at best. Sometimes you can not lock in a profit... :cry2: so then the question is do you have too many cattle?

Like in real estate - - leverage cuts both way so huge returns and huge losses are all possible. I think Trump is a stocker guy at heart.
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Re: Lending question

Postby TexasBred » Fri May 05, 2017 3:12 pm

ddd75 wrote:
Brute 23 wrote::lol: :lol: :lol: I'm pretty sure that proved my point.



right.. lets pay as much as we can "down"... while enjoying the lowest borrowing costs ever in our lifetimes..


:lol2: :lol2: :lol2: :lol2: :lol2: :lol2: :lol2: :lol2: :lol2: :lol2: :lol2: :lol2:



ddd you think just like the feds.
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