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  #41 (permalink)  
Old 09-01-2016, 01:34 PM
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Originally Posted by GoodSteward View Post
You get rich by spending twice as much in interest compared to what you may save on taxes? I have heard this argued before. Can you do the math on that one for me?
Absolutely!

In 2005 I purchased a home for $150K to rent out. But I only invested $30,000 of my own money and financed $120K for 30 years.

I averaged $240 per month positive cash flow over the 10 years I owned it, translating into $29,000 profit.

The renters paid down another $22,000 in principal on the note.

I then sold the house in April of this year for $173K, for a capital gain of $23,000.

So from a $30,000 investment in 2005, I made $74,000 in profit for my efforts.

Yes, I could have paid cash for the home, but my profit would have only increased by the interest that I paid - instead I bought some other properties n leverage the same way.

Someone point me to another investment where I can invest $30,000 and walk away with $104,000 in 10 years. That's the power of leverage.
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Last edited by TexasHusker; 09-01-2016 at 01:38 PM.
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Old 09-01-2016, 03:57 PM
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I won a $500 Visa Gift Card in June by entering a contest on FB for College Loans. When I got the email I won, I didn't believe it. I did all kinds of due diligence before I believed that email and contacted them to give them my address to send the gift card. But it was legit and we used it on vacation for meals out
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Old 09-04-2016, 04:57 AM
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Hmm, I am a bit reluctant to post stuff like this, if only because many on this site are struggling, and financially-speaking, I am now doing really, really well. My cashflow is net-positive, budget is holding, car paid off, house paid off, and net worth is at a level where I would have never even dared imagine ten years ago....

I am at a point where my overall wins are to make sure nothing catastrophic happens. Having started from a point where my financial life (as well as personal life) did in fact crater when I first arrived here at SA, I am painfully aware that such event could happen again.

So, that's my financial goal right now. To keep trucking and make sure nothing else bad happens. No news is good news. But no news isn't all that exciting to report.
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Old 09-04-2016, 11:44 AM
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Earned a $5 Amazon gift card from Swagbucks after doing a couple surveys. I did have some accumulated points from referrals that counted. That $5 gift card was used to pay for part of a birthday gift for my niece.

I also sold an item on eBay this week. I don't think I made much money on it, but it I like cash better than stuff taking up space in my house!
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Old 09-05-2016, 09:22 PM
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Not so much an event as a "win", as it is a milestone.... but I realized over the weekend that my wife & I (31 & 30y/o) just crossed over the $250k mark in our retirement accounts! ..... baby steps.....
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Old 09-05-2016, 10:24 PM
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I totally went Whole Foods over the Labor Day weekend and got some groceries on sale. In particular I got a bottle of lemonade for 1 dollar - it regularly goes for $2.69. I love getting good quality stuff for 60% off.
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Old 09-06-2016, 04:27 AM
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Quote:
Originally Posted by TexasHusker View Post
Absolutely!

Someone point me to another investment where I can invest $30,000 and walk away with $104,000 in 10 years. That's the power of leverage.
Thank you. Does this happen every time, or have you lost trying to do this also? I get mixed results when I ask about this. Some say they lost money renting, and some say they do well. I guess this is actually another topic, but I would like to know how to rent out responsibly.
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Old 09-06-2016, 04:30 AM
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I heard the gift card wins and was reminded about a win. A few years ago I went to the local Dairy Queen one weekend when they had a customer appreciation day with everything 1/2 off. They had a box there to sign up for a free 50$ DQ card. A week later I got a call saying I had won. I had never won something like that, so I was really excited.
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  #49 (permalink)  
Old 09-06-2016, 05:14 AM
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Originally Posted by GoodSteward View Post
They had a box there to sign up for a free 50$ DQ card. A week later I got a call saying I had won.
This gets my vote for the Best Win

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  #50 (permalink)  
Old 09-06-2016, 06:26 PM
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Quote:
Originally Posted by GoodSteward View Post
Thank you. Does this happen every time, or have you lost trying to do this also? I get mixed results when I ask about this. Some say they lost money renting, and some say they do well. I guess this is actually another topic, but I would like to know how to rent out responsibly.
If you choose your property well, you can't miss, even if you buy at absolutely the wrong time.

Case in point: I invested $70,000 on a $240,000 vacation home rental in 2005 at near the height of the real estate bubble. After all expenses (utilities, repairs, insurance, mortgage, and taxes), my yearly net rent since 2005 has been about $10,000. So I've received $110,000 in income from a $75,000 investment. And the vacationers have paid down about $35,000 of my $180,000 original note.

Those two combined, I've received $145,000 back from my investment of $70,000, and the money keeps coming in.

Now, the value of the property went down to less than $200K for a few years, but that just downgraded the investment from terrific to really good, since the $$$ rent keeps coming in.

As of now, it's worth about $275K, but I'm not worried about the value - I'm only worried about the income!

I have a very similar property that I am STILL $30K upside down on in terms of value, but it is also pumping out $10,000 a year net income to me - has been for 6 years now. And the renters have paid down about $15K of the note, so I've gotten back about $75K so far on a $60K-ish total investment. That's a full refund plus $15,000 in 6 years !

This puts all the stock market and mutual funds b.s. to shame.

In fact, when I left my employer 4 years ago, I cashed completely out of my 401K with a $400K balance - paying all penalties and taxes - so I could buy my last two properties - which have been producing a net $30K a year net income to me ever since (no mortgage on these)

An Edward Jones rep asked me the other day "but why aren't you saving for retirement?" He never clued in.
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Last edited by TexasHusker; 09-06-2016 at 06:49 PM.
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  #51 (permalink)  
Old 09-06-2016, 07:25 PM
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Quote:
Originally Posted by GoodSteward View Post
I heard the gift card wins and was reminded about a win. A few years ago I went to the local Dairy Queen one weekend when they had a customer appreciation day with everything 1/2 off. They had a box there to sign up for a free 50$ DQ card. A week later I got a call saying I had won. I had never won something like that, so I was really excited.
Yes...the DQ win has my vote for best win also.

FYI, you can 6% - 12% off dairy queen gift cards if you get them on gift card granny. Never pay full retail.
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  #52 (permalink)  
Old 09-07-2016, 03:40 AM
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Originally Posted by james.hendrickson View Post
Yes...the DQ win has my vote for best win also.

FYI, you can 6% - 12% off dairy queen gift cards if you get them on gift card granny. Never pay full retail.
Of all my internet searching and frugality, I had never heard of buying discount gift cards until I ran across Disneysteve's thread on it. I think the idea is awesome. I have yet to find a need, but I keep it in mind. I'm sure this will come in handy for the holidays.
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  #53 (permalink)  
Old 09-07-2016, 03:44 AM
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Originally Posted by TexasHusker View Post
If you choose your property well, you can't miss, even if you buy at absolutely the wrong time.
Thanks for the info! The house I"m in right now I've considered renting if I ever get a change to move closer to the church I pastor. I owe just over 70k and it's valued around 100k. I have family who all tell me not to rent, but I don't want to get rid of the house and I know one day it will be paid off and be a steady income.

I asked my previous employer about investing and retirement. He referenced the owner of our company and said he invests into real estate. Now the owner had cash too as he was a millionaire, but as far as "investing" I believe he just used rentals. My boss said when the stock market went down in recession everybody was losing money, but people still had to pay rent. That 600$ a month rent payment didn't go down. That made a ton of sense to me.
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  #54 (permalink)  
Old 09-07-2016, 05:33 AM
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Quote:
Originally Posted by GoodSteward View Post
Thanks for the info! The house I"m in right now I've considered renting if I ever get a change to move closer to the church I pastor. I owe just over 70k and it's valued around 100k. I have family who all tell me not to rent, but I don't want to get rid of the house and I know one day it will be paid off and be a steady income.

I asked my previous employer about investing and retirement. He referenced the owner of our company and said he invests into real estate. Now the owner had cash too as he was a millionaire, but as far as "investing" I believe he just used rentals. My boss said when the stock market went down in recession everybody was losing money, but people still had to pay rent. That 600$ a month rent payment didn't go down. That made a ton of sense to me.
It's not all rosy, but real estate investing in its various forms is the best way to financial independence IMO. Viatical settlements investing is another good way to go.
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  #55 (permalink)  
Old 09-07-2016, 05:44 AM
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Quote:
Originally Posted by GoodSteward View Post
Thanks for the info! The house I"m in right now I've considered renting if I ever get a change to move closer to the church I pastor. I owe just over 70k and it's valued around 100k. I have family who all tell me not to rent, but I don't want to get rid of the house and I know one day it will be paid off and be a steady income.

I asked my previous employer about investing and retirement. He referenced the owner of our company and said he invests into real estate. Now the owner had cash too as he was a millionaire, but as far as "investing" I believe he just used rentals. My boss said when the stock market went down in recession everybody was losing money, but people still had to pay rent. That 600$ a month rent payment didn't go down. That made a ton of sense to me.
I have posted this a couple times but not sure anyone decided to check it out, but www.biggerpockets.com is by far the best online community for real estate discussion that I have come across. I rarely visit the site anymore because I have too much going on to seriously consider real estate investing, but I found the site to be very helpful when I was trying to learn more about the investing aspect of RE. Not an affiliate link and I have no connection to the site other than just thinking it is a great resource.
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  #56 (permalink)  
Old 09-07-2016, 05:47 AM
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Of all my internet searching and frugality, I had never heard of buying discount gift cards until I ran across Disneysteve's thread on it. I think the idea is awesome. I have yet to find a need
You might want to look a little harder. GiftCardGranny currently lists cards from over 1,000 places. Surely there is somewhere on that list that you go to on some regular basis. I buy cards for Target, JoAnn Fabric, and Speedway gas stations regularly. I occasionally buy an iTunes card for DD when she needs to replenish her account. Same for Starbucks (there's one on campus). If I know in advance that we'll be shopping for something particular at a place like Home Depot or Best Buy or wherever, I'll grab a card for that. I'll order a theater card if I know we're going to the movies. We're not big on chain restaurants but will occasionally pick up a card for a place I know we'll get to.
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Old 09-07-2016, 08:51 AM
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Selling a couple of items like an old netbook and old scanner for $30 and $20. Just getting rid of stuff. This week I disposed of 130 items and 9 more today. 6 of them to the consignment store which donates what they don't sell. So win-win. Either I make money or I get a donation and feel better decluttering.
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Old 09-07-2016, 11:40 AM
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I have had mostly losses with big medical bills and a huge drop in income when I went on disability. So it was a giant win for me when my IRA portfolio increased back up to $500,000 in this market. I need to make that money last a very long time so moving in the right direction gives me hope.
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Old 09-07-2016, 03:34 PM
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I have had mostly losses with big medical bills and a huge drop in income when I went on disability. So it was a giant win for me when my IRA portfolio increased back up to $500,000 in this market. I need to make that money last a very long time so moving in the right direction gives me hope.
You could flip that into about $40K a year right now if you wanted to.
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Old 09-07-2016, 03:36 PM
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You could flip that into about $40K a year right now if you wanted to.
my goal is not to touch it until retirement age, I am pretty sure this isn't feasible but I'm really gonna try
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