tag:searchlightcrusade.net,2024:/mt//feed/investing 2024-05-19T12:17:48Z Movable Type 4.21-en 135 1 135 tag:gockel.hmdnsgroup.com,2006:/~searchli//3.2477 2024-04-30T14:00:00Z 2024-04-30T15:24:11Z Dan Melson http://www.searchlightcrusade.net/ Supply and Demand. Now that I've given the short answer, it's time to explain the macro factors behind interest rate variations. But I'm going to keep referring to those first three words. It is a tradeoff between the supply of... tag:gockel.hmdnsgroup.com,2006:/~searchli//3.2475 2024-04-22T14:00:00Z 2024-04-22T13:01:50Z Dan Melson http://www.searchlightcrusade.net/ If you've been around the financial planning business any length of time, you've likely run into the saying "The biggest risk is not taking one." It is endemic to all financial instruments, indeed, all investments, that return is the reward... tag:www.searchlightcrusade.net,2008://3.3789 2024-03-12T14:00:00Z 2024-03-12T13:52:41Z Dan Melson http://www.searchlightcrusade.net/ Is there any problems with having all your money in only real estate? That was a question I saw. The answer is YES there are problems! 1) No diversification. The real estate market tanks and you are hosed. The... tag:gockel.hmdnsgroup.com,2006:/~searchli//3.2456 2023-12-18T15:00:00Z 2023-12-18T15:48:25Z Dan Melson http://www.searchlightcrusade.net/ (This was originally written February 16, 2006, but it's relevant still) One of the occasional questions I get from people has to do with why the housing bubble got so big (or if you're one of those still in denial... tag:gockel.hmdnsgroup.com,2006:/~searchli//3.2425 2023-07-17T14:00:00Z 2023-07-17T16:05:35Z Dan Melson http://www.searchlightcrusade.net/ Continued from Part 1: Preparation and Part 2: Process This is about the long term consequences of the decision to buy or not to buy a home, and economic benefits analysis into whether you should want to buy. In order... tag:www.searchlightcrusade.net,2007://3.3693 2023-04-03T14:00:00Z 2023-04-03T14:53:35Z Dan Melson http://www.searchlightcrusade.net/ I get occasional questions about the difference between these three kinds of activity. Well, there are subjective parts to the answer, but here are some general guidelines: A true flipper is looking for a quick turn on the property, usually... tag:www.searchlightcrusade.net,2007://3.3624 2022-06-27T14:00:00Z 2022-06-27T12:43:06Z Dan Melson http://www.searchlightcrusade.net/ I just moved into a rental house with an option to buy. I figure I can probably save up around $40-45k for a down payment in three years. how should i save? The Roth IRA tax loophole for first... tag:www.searchlightcrusade.net,2009://3.4686 2021-10-20T14:00:00Z 2021-10-20T19:05:57Z Dan Melson http://www.searchlightcrusade.net/ Every so often, I write about professional responsibility. Every month I get a couple of magazines because I'm a Realtor. There was a letter from someone who was proud of the fact that he had never asked someone if they... tag:www.searchlightcrusade.net,2010://3.5000 2021-08-11T14:00:00Z 2021-08-11T10:40:14Z Dan Melson http://www.searchlightcrusade.net/ The most common mistake in real estate (and every other aspect of financial planning, for that matter) is to assume the situation now is going to continue indefinitely. In the stock market, people chase last year's returns. They "wait for... tag:www.searchlightcrusade.net,2009://3.4540 2021-07-28T14:00:00Z 2021-07-28T17:23:37Z Dan Melson http://www.searchlightcrusade.net/ The short answer is "Because it costs less". It costs more money to get a lower rate - simple fact. It takes time to recover the extra money you spend to get a lower rate via that lowered cost of... tag:www.searchlightcrusade.net,2010://3.4989 2021-07-15T14:00:00Z 2021-07-15T10:23:24Z Dan Melson http://www.searchlightcrusade.net/ My take on the matter is "mostly no", but they do have some uses. The one advantage that they usually carry a lower interest rate. There have been exceptions to this, just as there have been exceptions to the... tag:www.searchlightcrusade.net,2008://3.4441 2021-05-30T14:00:00Z 2021-05-30T14:38:58Z Dan Melson http://www.searchlightcrusade.net/ (Rates were much higher when I originally wrote this) Recently, a couple of mortgage places have been advertising "30 year fixed rate loan at 5.65%" like that's the lowest rate out there and it's some kind of great loan. It's... tag:www.searchlightcrusade.net,2008://3.4424 2021-05-21T14:00:00Z 2021-05-21T13:11:55Z Dan Melson http://www.searchlightcrusade.net/ An email: Greetings, I've recently been pitched the idea of refinancing my home and investing in apartments, or more precise, a four-plex. The idea is to refinance and get a negative amortization loan on my house. With the money I... tag:www.searchlightcrusade.net,2008://3.4324 2021-03-27T14:00:00Z 2021-03-27T10:46:10Z Dan Melson http://www.searchlightcrusade.net/ I have to admit to being conflicted. The numbers say no. The psychology says yes. Let's examine both. Most first mortgages out there are between six and seven percent, and tax deductible at a marginal rate of about 28%. If... tag:gockel.hmdnsgroup.com,2007:/~searchli//3.2683 2021-03-07T15:00:00Z 2021-03-07T13:53:30Z Dan Melson http://www.searchlightcrusade.net/ This article was originally from April 2006 - anybody want to tell me I didn't call it? Of course, by that time it was like predicting a dropped anvil would fall but that was when the question was asked From... tag:www.searchlightcrusade.net,2008://3.4166 2021-01-24T15:00:00Z 2021-01-24T16:51:37Z Dan Melson http://www.searchlightcrusade.net/ When I'm driving, and get to busy main streets, I hate turning left onto major streets unless there's a light there. Traffic is coming hard both ways, usually at high speeds, and with only intermittent breaks in each direction. If... tag:www.searchlightcrusade.net,2008://3.4137 2021-01-07T15:00:00Z 2021-01-07T12:28:57Z Dan Melson http://www.searchlightcrusade.net/ (click for Part 1 of Save For A Down Payment or Buy Now?, which deals with the basic question of how well saving for a down payment increases affordability) As an alternative strategy, suppose that instead of waiting to buy... tag:gockel.hmdnsgroup.com,2007:/~searchli//3.2600 2020-12-31T15:00:00Z 2020-12-31T14:52:49Z Dan Melson http://www.searchlightcrusade.net/ The original appeared in April 2006, but has been updated for changes I am hoping to buy in the (city) area and am reviewing the possibilities. While I fear that the local market may be peaking, I intend to live... tag:www.searchlightcrusade.net,2008://3.4051 2020-12-03T15:00:00Z 2020-12-03T19:19:45Z Dan Melson http://www.searchlightcrusade.net/ This visitor came from a search engine on this search: amortization of real estate loans early payoff based on a lump sum payment This is one of the smart things you can do. Not necessarily the smartest, mind you, but... tag:www.searchlightcrusade.net,2009://3.4911 2020-11-27T15:00:00Z 2020-11-27T14:53:51Z Dan Melson http://www.searchlightcrusade.net/ Right now, due to the problems we had with unsustainable loans, nobody wants to consider anything but a thirty year fixed rate loan. I understand why, especially as I've been preaching the dangers of things like short term adjustable...