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  • #46
    Re: Mortgage Mayhem

    Originally posted by 808shooter View Post
    Real estate is a great investment. Far better than the stock market. Yeah!!!
    Thats right 808shooter. Buy now. Real estate always goes up. If you don't buy now you will be priced out forever, they're not building any more land, it's Hawaii, everybody wants to live here, this is paradise, its Timkona's Baby boomers, they wouldn't give me this no doc- interest only- negative amortization - ARM - bad credit - loan if they didn't think that I could pay for it.

    Hurry, buy buy buy buy. You'll be building equity and getting rich!!!

    Comment


    • #47
      Re: Mortgage Mayhem

      Originally posted by kamuelakea View Post
      You will remember me in 3 to 10 years when things get really really bad in housing.
      You're not the first to have this doom an gloom over housing. I've seen this before. It was in the paper about 10 years ago. Guy was so convinced that there would be a big crash that he sold his house and rented it back.

      I'll most likely remember you the same way I remember him.

      Comment


      • #48
        Re: Mortgage Mayhem

        Originally posted by 808shooter View Post
        Houses never go to zero. If they get destroyed,
        The land never goes to zero. And the value of the land is usually much higher then the building on it.

        Another advantage of home ownership is locking in your expenses. Look at 'eldos post. $700/month for a house is an incredible deal. Think of how much money he's saved - tax free. That may not have been a spectacular deal in 1980, but he's still paying 1980 prices in 2007.

        It's been a long time since I ran the calculations, but I figured I had to earn $1.56 to take home an additional $1.00. So saving money counts for a lot. And once the home is payed off, one is really set for retirement when one has no wages.

        Yes, you can go broke in real estate if you go about it wrong. If you're going for a ARM because that's all you can qualify for - danger! danger! An ARM is either for short term loans or if you expect interest rates to go down. Today it's more likely interest rates will go UP. And since in the early years the payment is almost all interest, the monthly payments will climb like crazy.

        Comment


        • #49
          Re: Mortgage Mayhem

          Originally posted by 808shooter View Post
          Real estate is a great investment. Far better than the stock market. Why?

          1. Stocks can go to zero. Companies go out of business all the time. Even big ones like Enron or Worldcom. Houses never go to zero. If they get destroyed, that is what insurance is for.


          4. Investing in real estate works. I know lots of old people that are rich because of real estate. They own their own home and own lots of rentals. In contrast, I never meet folks that say, whew. I made a lot of money in the stock market. Yeah!!!

          These are the 2 things that I thought about when I bought my Hilo Condo a few months ago. I know people are making a killing right now in the stock market, but it unless you REALLY know about how the stock market works, it seems like playing craps in Vegas to me. I figure people are always going to need a place to live, but that promising new startup company can go under really easy.

          And yea, the old people who bought their properties 10 and 20 years ago who still have them are doiong alright right now.

          The trick is to hold onto it long enough, and keep it rented the whole time.

          Also, I watched some prices in Hilo triple since 2004, and they're still way less expensive compared to anywhere else in hawaii and where I live in SoCal

          I just need to keep it rented.
          http://tikiyakiorchestra.com
          Need a place to stay in Hilo ?
          Cue Factory - Music for your Vision

          Comment


          • #50
            Re: Mortgage Mayhem

            That British bankrun is still going strong.
            http://thissmallfrenchtown.blogspot.com/
            http://thefrenchneighbor.blogspot.com/

            Comment


            • #51
              Re: Mortgage Mayhem

              Originally posted by GeckoGeek View Post
              The land never goes to zero. And the value of the land is usually much higher then the building on it.
              Unless, the land is in the "volcano zone" in Puna .................

              Comment


              • #52
                Re: Mortgage Mayhem

                Originally posted by 808shooter View Post
                Real estate is a great investment. Far better than the stock market. Why?

                1. Stocks can go to zero.
                Very easy way to elliminate this possibility.

                2. Time is on your side.
                I tried to explain this already but apparently you went private school. Time is on yourside by about 3 or 4% only if you own stocks. That difference is massive but I know its too hard for you.

                3. You leverage your money in real estate.
                While there is some truth to the benefits of leverage, over time, it becomes less relavent. See in your example, the 25,000 did not turn into 250000. It turned into 250000, adjusted for inflation might take it down to 150,000, minus all the interest you paid on the loan so we are now at 25,000, then minus the new roof, painting, termite, property taxes, etc etc etc etc and guess what? You negative. Great job investing genius. Facinating how people completely forget the "costs" of ownership.


                4. In contrast, I never meet folks that say, whew. I made a lot of money in the stock market. Yeah!!!

                If you gave Warren Buffet 1000.00 in 1957, guess what you would have today?


                Answer: Scroll Down but make up a guess before you do. At least guess.



                a




                a





                a




                a




                a




                a



                a




                a




                a



                a





                a


                a


                a

                ANSWER: 27 MILLION.

                That is not a typo. And no costs of ownership like a house.

                No charge for the advice gangey.

                You welcome.

                Comment


                • #53
                  Re: Mortgage Mayhem

                  kamuelakea,

                  why do you sound so bitter?

                  Comment


                  • #54
                    Re: Mortgage Mayhem

                    Originally posted by MixedPlateBroker View Post

                    I have been to a Tardus presentation and I know people who've worked for the company. Tardus' original mission was to provide homeowners a system, utilizing credit cards and a HELOC, to front-load their mortgage -- theoretically paying down the principal more quickly. Ms. Souza now seems to be positioning them as a credit repair shop. They don't broker or lend money. You might find their Hawaii BBB report here interesting. Although their multiple complaints are mostly resolved, it's very odd that the company's principal is an administrative assistant.

                    Oh, and I apologize for the slightly inflammatory title, but I already spend hours everyday educating and advising my clients about mortgages. I could not stand idly by while Ms. Souza spreads potentially harmful misinformation in order to steer more business to her own company. Hopefully, Andy will attract other sponsors with some ethics and who won't demand seat time. Best of luck to him.
                    As a mortgage broker, do you lose money if people like me pay off our 30yr mortgages in 10 yrs?

                    pax

                    Comment


                    • #55
                      Re: Mortgage Mayhem

                      Originally posted by kamuelakea View Post
                      Thats right 808shooter. Buy now. Real estate always goes up. If you don't buy now you will be priced out forever, they're not building any more land, it's Hawaii, everybody wants to live here, this is paradise, its Timkona's Baby boomers, they wouldn't give me this no doc- interest only- negative amortization - ARM - bad credit - loan if they didn't think that I could pay for it.

                      Hurry, buy buy buy buy. You'll be building equity and getting rich!!!
                      Haha you right Big K, no worry about me. I doing jes fine.

                      The secret is buying real estate that you can maintain a positive cash flow on with a decent down like 10%-20% with a fixed 30 year.

                      Find that and you're good to go. Too bad finding good deals like that in Hawaii is getting pretty tough. Lucky for me, I investing in a market with positive cash flow with 20% down. We talking cap rates of 8-9% and real potential for short to medium term appreciation.

                      I'm not going say anymore. Too many haters and skeptics anyway. And... I want my friends to get in and catch this wave while we sit out the Hawaii market for a few years.

                      If you right, we'll have lots of cash to throw back in the market in a few years at dirt cheap prices. If not then we'll have good returns for a few years then start investing back into Hawaii - just won't be able to buy as much.
                      Last edited by 808shooter; September 17, 2007, 11:04 PM.

                      Comment


                      • #56
                        Re: Mortgage Mayhem

                        Pua'i,
                        If a client decides they want to prepay their mortgage, there are no negative consequences for me. I actually advise my clients that they can reap significant interest savings by making extra payments toward principal, especially in the early stages of their mortgages. Although prepaying a mortgage reduces the interest one can deduct from their income taxes, many find the prospect of paying off their mortgage sooner the more attractive option.

                        I know some of you have heard the hype surrounding today's Federal Reserve Board meeting regarding the federal funds rate. The majority of economic prognosticators have predicted a moderate rate cut of 0.5%. Although that sounds good on paper, a cut wouldn't be felt immediately by most Americans. Fixed mortgage rates are based on the bond market. ARM and credit card rates would show some downward movement on a rate cut, however. Historically, certain sectors of the stock market get a boost from a rate cut.

                        If the Fed serves up a small cut or does not deliver one at all, it's widely expected the Dow will slump on the news and mortgage rates would feel some upward pressure. Some believe the Fed will stand pat on the funds rate over fears of overheating the economy.

                        Whichever direction the Fed goes, their announcement is expected at 8:15 a.m. HST today. You can check here for the latest updates.

                        808,
                        Good call on the change of scenery. Hard to squeeze decent cash flow out of Hawaii properties, even on the Big Island. I'm guessing your alt market doesn't get much snow, either.
                        "If it's brown, it's cooked. If it's black, it's f***ed" - G. Ramsey

                        Comment


                        • #57
                          Re: Mortgage Mayhem

                          Originally posted by Pua'i Mana'o View Post
                          As a mortgage broker, do you lose money if people like me pay off our 30yr mortgages in 10 yrs?
                          PUa'i,

                          Nobody in the initial purchase process is hurt by paying off a loan early.

                          Very few, if any, banks nowadays loan their money to you and wait to be paid back by you. Banks give you money and then immediately sell them off to Wall Street or the government versions, ie Fannie and Freddie. The bank, mortgage broker, realtor and appraisor don't care what happens after that. They work only to close the deal. Hence my warnings.

                          What has happened in the last 10 years is that mortgage loans are sold to Wall Street, Fannie and Freddie, who bundle them into investment vehicles that people can purchase as an investment. The investor gambles that they will get guaranteed interest based upon people needing to pay their mortgages. The Chinese, Japanese, Austrians and other countries have been buying these mortgages like crazy over the past 10 years. That is what has kept fixed interest rates so low.

                          But heres the scam. Why would these country be buying all of these loans, many of which have no chance of being paid off? Are the Chinese stupid? No, they are smart. It is because they are giving the U.S. the opium necessary to get them addicted to consumption. Guess who makes all the crap that the U.S. homeowner will consume over the next 20 years? Yep, China, Japan, Austria etc etc.

                          You guyz are going to think I'm becoming Waioli Kai but dis ain't no conspiracy theory. Its economic fact.

                          These countries have gambled that it will be better in the long run for their developing industrial engines to lose money on the mortgages when many go unpaid but to create a long term consumption addicts that will continue to service their needs by buying their crap for years to come.

                          The U.S. homedebtor, I mean homeowner, has becomes China's bitch.

                          See?

                          Comment


                          • #58
                            Re: Mortgage Mayhem

                            Originally posted by CranBeree View Post
                            kamuelakea,

                            why do you sound so bitter?
                            I am sorry if you think i sound bitter.

                            I shouldn't sound bitter.

                            I AM BITTER!

                            Aloha

                            Comment


                            • #59
                              Re: Mortgage Mayhem

                              Originally posted by MixedPlateBroker View Post
                              Pua'i,
                              Although prepaying a mortgage reduces the interest one can deduct from their income taxes, many find the prospect of paying off their mortgage sooner the more attractive option.
                              There is rarely a benefit to paying the a bank 1 dollar in interest so that you can save 30 cents in taxes paid to the government. In most cases, I would rather pay the government the 30 cents. For all you guys who went private school, let me give you the equation: Spend 1 dollar and save 30 cents means YOU LOSE 70 cents. Genius!

                              The only exception I can think of is the possible effect the deduction has in terms of shifting one to a lower tax bracket or allowing certain special tax deductions by decreasing income below some maximum threshold.

                              These don't apply to most people so most people happily celebrate every April 15th that they have spent 1 dollar in bank fees to save 30 cents in taxes. Again, not to akamai but whatevah?

                              Comment


                              • #60
                                Re: Mortgage Mayhem

                                okay time foah moi.

                                preddy soon, i going chage you guyz for dis edumakation.

                                Comment

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