Author Topic: HELP..Lucy needs advice on a property investment to rent out  (Read 22896 times)

arebelspy

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Re: HELP..Lucy needs advice on a property investment to rent out
« Reply #50 on: February 05, 2013, 09:29:54 PM »
You don't want to know.

Oh, and obviously you need to find out who is servicing your loan.  (Seems like you don't know, on the earlier comment about the services going bankrupt and someone else servicing it.)
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Re: HELP..Lucy needs advice on a property investment to rent out
« Reply #51 on: February 05, 2013, 09:39:19 PM »
If they have multiple offers, did they ask for "highest and best"?  That's the typical procedure.  I don't think making a lower offer will fly. 

GMAC did go bankrupt.  Some of the servicing rights have been sold.  You should have gotten a notice if your servicer changed.  If you did not get the notice, call them back and ask who the servicer is.

lucy

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Re: HELP..Lucy needs advice on a property investment to rent out
« Reply #52 on: February 05, 2013, 09:51:57 PM »
Green Tree Servicing LLC  that is the new lender.

All he said was that the The Bank(it is owned by BOA)  told him that they had multiple offers.
We are not going to go higher, if we don't get it, thats fine.  I believe that when the time is right I will find my beach home.
I am going to figure out what to do with the Condo we live in, I've been researching all day..it is draining my energy.
We are going to have to get some answers, what should the normal fee be to see an attorney , I am sure this problem is huge all over this country.
I'm still trying to figure out how our condo community went south so fast. I mean, I know that it has been a slow process for the past couple of years, but I guess I felt that we are in a very nice area so we were protected.

As far as the Beach Townhome, if they accept our offer, are we bound to it?  We stated that it was based on the inspection..but can we bow out before that?
All of the advice here has me seriously thinking, that maybe we shouldn't do it at this time. :-/

Jack

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Re: HELP..Lucy needs advice on a property investment to rent out
« Reply #53 on: February 06, 2013, 05:34:30 AM »
As far as the Beach Townhome, if they accept our offer, are we bound to it?  We stated that it was based on the inspection..but can we bow out before that?
All of the advice here has me seriously thinking, that maybe we shouldn't do it at this time. :-/

If you try to rescind the offer based on the inspection contingency without actually having an inspection first, the seller might try to keep your earnest money or even sue you for specific performance (i.e., to force you to buy it). They're going to want to see the inspection report stating exactly what it is about the condition of the house that scared you off. If the inspection report showed the house in perfect condition, you'd have difficulty breaking the contract on those grounds.

At least, that's the case with a private-party seller who is worried about finding another buyer. For a bank-owned property, the seller might not really care and just move on to the next highest bidder.

How much earnest money did you provide?

By the way, if the seller actually asked you to write a "highest and best" offer, it means they haven't actually accepted your offer yet. You're free to rescind your offer without penalty until they notify your agent of acceptance. If you want to get out of the deal, now's the best time to do it.
« Last Edit: February 06, 2013, 05:37:57 AM by Jack »

lucy

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Re: HELP..Lucy needs advice on a property investment to rent out
« Reply #54 on: February 06, 2013, 06:24:29 AM »
@Jack...we have not given anything yet, so we can walk..as far as the inspection, we fully intended to have one.
But...at the present time, we are struggeling with what we should do with the present condo..as I have stated we are underwater..no matter what we do , we are going to loose with this one. So, what steps to take first..we won't find a buy like that at the beach anytime soon. We have watching this community for 2 years, when they go on the Market, they are sold very quickly, most of the time they are cash buyers. And is another reason why we miss them. I think these are investors who pick them up for vacation rentals. The Townhouse is in move in condition. The grounds are very well maintained..its has been sold previously for over 200k, but that was before the housing crisis. At 129k  1400 SF and 3/4 mile from one of the nicest beaches in Fl, and a great location, stores, restaurants, night life, etc..its is a great buy. As I said, we have been watching the beaches for 2 years, so it is something that we DO know about.

The bank told us that they want our highest and best offer, we will not go higher. I am firm about that. I am tempted to go lower, because I do know that they only have one other offer, and it may not be cash.

But..we have this dark cloud hanging over us preventing us from buying it..or at least taking a risk and jumping in..I am working hard to find out how to get out from under this condo. Even if we called the deal off, and stayed here, or paid this one off..it is still going to be a huge loss, and a waste of money to continue to stay. Like I said, my Husband works literally 5 min from the beach place..he can ride his Harley. or a bicycle to work, OR walk.

Jack

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Re: HELP..Lucy needs advice on a property investment to rent out
« Reply #55 on: February 06, 2013, 06:46:13 AM »
@Jack...we have not given anything yet, so we can walk..as far as the inspection, we fully intended to have one.

Even without earnest money, if there's an accepted offer the seller could theoretically sue for specific performance. (Not that it would happen with a bank-owned property with multiple offers, but you never know...) It really is best not to bid on a property unless you actually want it.

Keep in mind that inspections cost money. If you want the townhouse but to decide to back out because of some inspection problem then that's fine (and the inspection was worth it). On the other hand, if you're just trying to use the inspection contingency as an excuse when you're really just having second thoughts, you would have been better off not going under contract at all rather than wasting a couple hundred bucks.


The Townhouse is in move in condition. The grounds are very well maintained..its has been sold previously for over 200k, but that was before the housing crisis. At 129k  1400 SF and 3/4 mile from one of the nicest beaches in Fl, and a great location, stores, restaurants, night life, etc..its is a great buy. As I said, we have been watching the beaches for 2 years, so it is something that we DO know about.

Sounds great. By the way, how much do similarly-sized single-family houses (without HOAs) go for in the same area?

Also, I wonder: you talk about how your condo has gotten older and the area declined; did you say the same things about the condo when you bought it as you're saying about this townhouse now?

But..we have this dark cloud hanging over us preventing us from buying it..or at least taking a risk and jumping in..I am working hard to find out how to get out from under this condo. Even if we called the deal off, and stayed here, or paid this one off..it is still going to be a huge loss, and a waste of money to continue to stay. Like I said, my Husband works literally 5 min from the beach place..he can ride his Harley. or a bicycle to work, OR walk.

Commuting 5 minutes by bicycle? Good. By walking? Good. By Harley? BAD!!!

The only "dark cloud" is of your own making... you can have the townhouse, you just need to be willing to make the trade-offs required (i.e., sell at least some of your expensive-to-operate vehicles, cut your cellphone and electricity bills, cut costs elsewhere) to get it. Think of it this way: Which will make you happier, the townhouse (i.e., the lifestyle of living at the beach) or the Hummer (i.e., the lifestyle of commuting to the beach)?

lucy

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Re: HELP..Lucy needs advice on a property investment to rent out
« Reply #56 on: February 06, 2013, 07:07:44 AM »
Similar sized homes in that area are going for much more, the average selling price is 179-250  and no hoa's, and..they are in need of repair. They have huge lawns, and that is something that we do not want to have to care for.
I have watched 4 in the past 2 years get sold within the first week of showing, we enevr had a chance at them, when they went on the Market, they had contracts before we knew they were for sale.  We have spoken to the neighbors, over the 2 years, and we have watched the area closely after a rainy period, it stays very high and dry.  You know, at the very least, if we decide after living there a year or so that it isn't what we want, we can always rent it out for 1200 a month.

I worked out a budget that we will be fine financially, but it will entail dipping into my savings more than I wanted to, in order to get out from our under water condo.
I am going to have to start doing some type of investing for the future wiith the remainder of the inheritance.
That said...how can we get out of this condo and stop paying 913 a month asap.. I could rent it out, but am worried that it may cost more if we have to purchase landlord ins and hire a management company to screen renters until we sell it.

As far as the inspection, we will have one done, because we do want this place. I realize the risk is only there because of the condo we have now, however, in order to stay on top, it will require using funds that I didn't want to touch. But if I look at the long picture, and a few years down the road, it will be ok, out Child support payments of 1100 a month will be done, and that will be extra income. Income that we will be able to save, and invest.
If they accept the offer, we will move forward fast, and get out of this place, I am sure that anyone out there has has similar issues to deal with, so its not the end of the world for me, at least I have funds to help me get through.

arebelspy

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Re: HELP..Lucy needs advice on a property investment to rent out
« Reply #57 on: February 06, 2013, 07:08:00 AM »
If you want to get out of the condo so bad, friggin sell it and bring the extra cash to closing.

Like I said, I'm planning on selling one of our condos in the next few years and bringing cash to close as the seller (~30k if I sold today, hopefully a bit less in a few years, but I'd anticipate at least 20-25k).

You claim to have hundreds of thousands in cash, so just cut the albatross away.
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lucy

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Re: HELP..Lucy needs advice on a property investment to rent out
« Reply #58 on: February 06, 2013, 07:10:45 AM »
@Arebelsby...I agree, and have been working on that since 6am this morning.  Sometimes you have to cut the loss and move on.after sleeping on it that is the realization , if we want to move. I lived here for 16 years in the same condo.time for a change

Jack

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Re: HELP..Lucy needs advice on a property investment to rent out
« Reply #59 on: February 06, 2013, 07:32:33 AM »
we have watched the area closely after a rainy period, it stays very high and dry.

Unless the rainy period in question was a Category-5 hurricane coinciding with a spring tide, you should check out http://www.floodsmart.gov/ instead of only trusting your observations. In particular, be sure to find out how much flood insurance will cost you and make sure you fit that in your budget.

SunshineGirl

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Re: HELP..Lucy needs advice on a property investment to rent out
« Reply #60 on: February 06, 2013, 08:16:00 AM »
From your inheritance, do you have enough to:

-- Get out from where you're at, no matter what it costs;
-- Pay cash for the new condo;
-- Pay HOA/property taxes for XX years?

If so, I think you should be happy with the move.

Your thinking about money, though, really needs some work. You should get a job. You should track your expenses. You should set aside 30% of your husband's income for savings (at least). You should hold off on ordering cable. You should use this period of time to create a clean slate for yourself.

I'm one of the few who thinks it's a good idea for you to make this move AFTER ditching the place you're in, but your sense of "I deserve this" entitlement bugs me. You're in a relatively new marriage + new house = excellent opportunity to really make good decisions and create a great life for yourself. You deserve happiness, yes! BUT THINGS AREN'T HAPPINESS, and you've consistently confused the two in your posts.

Have you read YOUR MONEY OR YOUR LIFE? I think you'd find it interesting.

lucy

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Re: HELP..Lucy needs advice on a property investment to rent out
« Reply #61 on: February 06, 2013, 09:37:46 AM »
@Sunshine ...yes to all of the above first questions. As far as entitlement to what I want, if I have worked hard all my life and paid for them myself, then you are wrong, THINGS have never been an issue for me...my Happiness is my Loving wonderful Husband, and the precious time we share. I  am a Florida Native, and always lived at the beach during my youth, we lived a mile from the ocean on Miami Beach, I have lived a life of having  a very lot, and there was 18 years I lived through having nothing, and barely making it from paycheck to paycheck. Not only that, but through making sure my children had what they needed, food, clothing, books, the necessities, NOT any luxuries, for myself OR them. So I have lived on the very high end and the very low end. Happiness for me is not money, the problem that I am having is the fact that my Dad saved and worked hard also, he left this with me, and for the reasons of being through so much, he knew that I would be responsible. I have never walked away from my debt. The fact that I'd pay cash, is because I want to be in the situation of being debt free, and not worrying about loosing my home like so many people have done. I am one of the lucky ones, I know that, and that is the reason why I want to be very careful. It is stupid, no matter what we decide about the beach property to remain here, it is a waste, and I don't want to waste time or money here anymore. As it stands, we put a lot of money in this condo, and finding now, that it was a waste, makes us sick. But, I have come to the point, that I don't want to dwell or beat myself up about it anymore.
Like I said earlier, I have peace about loosing, if we loose the beach property, it wont be the first time..we will still get out from this one we are in now, even if we rent it, and we go rent at the beach until we find what we want.
The reasons for the move are much more that just an "I WANT I WANT"  It is practical, we will be on bikes, or walking..here will be less wear and tear on our cars, etc. Less gas, and less of a commute for my husband, so that means more time for us together. We love to fish, we fish at the beach every weekend, we EAT our fish, saves money on food. lol
As far as "GET A JOB"  You might save that for the ones who are eating off of my dime that I worked 15 years stressed out of my mind for, the job which put me in the hospital twice, once for my heart, and the other for my 2 ruptured disc's, which by the way I had surgery last year for, and went immediately back to my job, and within 6 months re-ruptured.
I am 57, I worked before I had my children for 10 years, stayed at home and raised them , and went back after that for 16 years. I deserve to rest..Before Dad died, he was upset that I was still working, he wanted me to retire. He was going to purchase a beach place in Ft Lauderdale for himself and leave it to me, he would have paid cash..I am like him, I hate debt, and I hate giving banks my interest.He has always lived at the beach, and he knew that I also have that same love..some people like the mountains, I like the beach.
The bottom line is, I do not have to give my personal side or any of my reasons of why I am not working at the present, to you or anyone else. But when someone whom I do not even know is judging me for not working, and have no idea why, I felt the need to let you know.
I am not using any welfare or sucking the government, or getting free insurance, we have our own, and we PAY for our own!
I have 2 children who graduated from College with highest Honors, can you say the same?

needmyfi

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Re: HELP..Lucy needs advice on a property investment to rent out
« Reply #62 on: February 06, 2013, 10:42:36 AM »
Don't ask unless you are willing to face up to the answers.  You will defend this bad decision to the end-when it is clear that there is noone here that thinks you have a sustainable lifestyle.  You are upside down on a condo that you have been in for 15 16 years!  I know real estate has taken some dives but still owing anything on this condo after all this time is completely on you. You mention child support payments being up in a few years with no mention of helping that child through college.  You say your husband used to make 150k, but the little savings you do have is all inherited.  You think your father was foolish to save, but if he had not you would be lucky to  be eating cat food in a trailer when you retired.  You think you will be secure in the future because your husband will inherit, but your father-in-law may need several years of home health care or assisted living. YOU DRIVE A HUMMER UP TO A 50K CONDO

Wow, I realize this sounds harsh, but to me this whole scenario is typical of everything wrong with the US middle class.
« Last Edit: February 06, 2013, 07:17:03 PM by needmyfi »

lucy

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Re: HELP..Lucy needs advice on a property investment to rent out
« Reply #63 on: February 06, 2013, 11:55:36 AM »
Like with anything in life we have to take the good with the bad. I want to thank those, and you KNOW who you are, for offering your tips, and advice, and believe me, it has helped me tremendously. You have given me a lot to think about, and after the past 2 days I have been doing my homework.

As for the last poster,  you are entitled to your opinion of me, and the middle class. I do have to wonder what your lifestyle is though..maybe you are the type of person who is happy in the country, or living in a trailer, or in some undesirable location with no local culture, or nothing to do. That's your choice, and like I said, I don't know your lifestyle.

We are who we are, and I can tell that we are definitely from different backgrounds. Oh, btw, your comment about my car, and parking in front of a 50k Condo.... My Condo was selling for 125-145K about 6 years ago, and there are neighbors here who drive Mercedes, and Porches ,,just for your info. We have Doctors, Lawyers, and teachers, nurses,etc. So what we drive has nothing to do with our situation.   Yes, we drive nice cars, I always have. But they are both bought and paid for, through our hard work. Some people like to drive a nice car. Some don't, that is their personal choice, and not for me to judge. As far as my condo , and living here for 15 years to me say's a lot, at least I pay my bills on time, and I don't have any credit card debt, how much do YOU have? If I cannot afford to pay with cash, then I don't buy . So don't judge my middle class attitude, look at your own first, and how you are living..as for me, I will be happy no matter where I am, but since my Husband has a long drive for work, the beach is practical.  In Florida, and in our area, prices are already going up..so I am not worried. We never know when another crisis will hit, so YOU may be in the same situation someday soon. I hope that when you come for advice hat people will be nicer to you than you were to them
I came on here for some advice, and that is what I got, I also got scolded , and that is fine too. Everyone is entitle to their opinion, and yes, I did ask. Like I said, I got some very sound advice, and those I will use.
I only hope that you have learned something too, and I hope that you wont live and not enjoy your life so that you can save for your retirement only to find out that you cannot walk, or live long enough to enjoy all that money you saved.
I plan on enjoying my life, with my Husband. I will be working again, but not like I did before.

As far as some other comments, my plan is to save every penny that I make of my income, in the bank, and build back what we had, through some smart investing. I have an appt with a financial investor next week.


lucy

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Re: HELP..Lucy needs advice on a property investment to rent out
« Reply #64 on: February 06, 2013, 01:49:29 PM »
oh, by the way needmyfi, ....I HATE CATS!!!!    and TRAILERS!    My home will be paid for and I have no credit card debt, or car payments, will you be able to say that? Maybe while your picking cat food out from your teeth if you have any.

arebelspy

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Re: HELP..Lucy needs advice on a property investment to rent out
« Reply #65 on: February 06, 2013, 02:06:04 PM »
I think your defensiveness speaks volumes lucy.
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tmac

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Re: HELP..Lucy needs advice on a property investment to rent out
« Reply #66 on: February 06, 2013, 02:20:28 PM »
Lucy, I say this with all kindness: You are seriously in the wrong forum.

1) This is a place for people who agree that living in a smart, frugal way now is the best way to prepare for the future, and doing it ethically. You keep talking about ducking out of a contract, even though you have money in the bank, just because things didn't go your way. You keep talking about what you want now, and what you did in the past, not about the best way to plan for the future.

2) This is a place for people who agree that life is not about "things." We don't "deserve" things because we've worked hard. We've all worked hard, many of us are very wealthy, and yet, still have self-discipline. You keep saying that you've worked hard and you should get to have these things. There is no "deserve." There only is "can afford" or "can't afford," based on the full lifetime of expenses and earnings you have ahead of you. This is long-term thinking.

3) This is a place where the culture requires something called a "facepunch" when someone is doing or thinking something that conflicts with  1) and 2). You are handling it very poorly. You've whined, rationalized, and insulted us, rather than really think about what's being said.

Therefore, while I appreciate the dark humor in the situation, I really don't think this is the place for you.


Jack

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Re: HELP..Lucy needs advice on a property investment to rent out
« Reply #67 on: February 06, 2013, 02:25:16 PM »
oh, by the way needmyfi, ....I HATE CATS!!!!    and TRAILERS!    My home will be paid for and I have no credit card debt, or car payments, will you be able to say that? Maybe while your picking cat food out from your teeth if you have any.

You're also only eight years from traditional retirement but don't have nearly enough savings to retire (talking to a forum full of early retirees and those well on their way to being so) and are apparently insecure enough about your choices that you feel the need to lash out at everyone who has tried to offer constructive criticism. The only one here in danger of eating cat food is you -- and I'm saying that to caution you, not to insult you!

Keep in mind that this is why you're here: you asked us for advice, and you're getting it. You can either accept it and improve your life, or ignore it and suffer. Either way, ranting incoherently at us because you don't like the answer is pretty damn ungrateful, I think.
« Last Edit: February 06, 2013, 02:31:31 PM by Jack »

lucy

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Re: HELP..Lucy needs advice on a property investment to rent out
« Reply #68 on: February 06, 2013, 02:39:20 PM »
Well I guess you all completely misread what I said, I said THANKYOU, for ALL of the advice, and that I did agree with most of it. I never said OR insulted all of you, yet I have been personally attacked because I have a few things.

I think Tamara is right,I guess that I am in the wrong forum, and I guess the people here in my world who are very successful, in life, and will be that way until the end are all wrong, and you are all right.
I thank you all for your time, and help..maybe you should read again what I wrote in my last long post. Sometimes through posting, things can be misconstrued , maybe that is the case here. I don't know.

Have a nice life...I am going to the beach!

btw Tamara, I never said that I would walk out on my contract.I fully intend  to pay my bills ..I dont TAKE anything.

tmac

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Re: HELP..Lucy needs advice on a property investment to rent out
« Reply #69 on: February 06, 2013, 02:55:10 PM »
Oh, that's right. You DID say thank you. But here's how it came off, "Thanks, but no thanks, you big cat-food-eating-trailer-living-toothless-jerks." The worst anyone said to you was that you weren't making good decisions. Don't recall anyone resorting to name-calling.

About the contract, this is what I was remembering, and it doesn't sound like "I don't TAKE anything." It sounds like, "If I run for it, will they try to catch me?"

Quote
No matter what, it makes sense to let it go..If we walk away, they would come after me for the money right? 
Let me ask you this...only my name is on the Condo, I purchased it 15 years ago, as a single woman. I am now married, and our bank accounts are joint, . Is my husband still liable? Can they consider a joint acct when or if they tried to sue?
The other problem is, the dues are 300 a month, if we walked away, they would also sue us..correct?

And finally, no one ever said that this is the only way. There are many ways. But this is the way it's done here. If you want a different way, you'll need to find a different place.

Best wishes, and good luck.

Done by Forty

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Re: HELP..Lucy needs advice on a property investment to rent out
« Reply #70 on: February 06, 2013, 05:52:25 PM »
Well I guess you all completely misread what I said, I said THANKYOU, for ALL of the advice, and that I did agree with most of it. I never said OR insulted all of you, yet I have been personally attacked because I have a few things.

I think Tamara is right,I guess that I am in the wrong forum, and I guess the people here in my world who are very successful, in life, and will be that way until the end are all wrong, and you are all right.
I thank you all for your time, and help..maybe you should read again what I wrote in my last long post. Sometimes through posting, things can be misconstrued , maybe that is the case here. I don't know.

Have a nice life...I am going to the beach!

btw Tamara, I never said that I would walk out on my contract.I fully intend  to pay my bills ..I dont TAKE anything.

lucy, have you read the blog to which this forum is attached?  If not, I'd suggest taking some time to giving it a read.  It could be a tremendous benefit to you.

lucy

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Re: HELP..Lucy needs advice on a property investment to rent out
« Reply #71 on: February 06, 2013, 06:22:40 PM »
No, but I will read it. Thank you "Done by 40"

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arebelspy

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Re: HELP..Lucy needs advice on a property investment to rent out
« Reply #73 on: February 06, 2013, 06:54:21 PM »
This explains so much.  Once you understand MMM's philosophy, lucy, you'll understand this community a lot better.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with two kids.
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We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

lucy

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Re: HELP..Lucy needs advice on a property investment to rent out
« Reply #74 on: February 08, 2013, 10:18:36 AM »
Not sure if anyone here is aware of this...but it might be worth YOUR attention. It is worth your time if you are an investor. Quite shocking actually. You better hope that is not true.


http://www.canadafreepress.com/index.php/article/52961?utm_source=CFP+Mailout&utm_campaign=7995472d85-Call_to_Champions&utm_medium=email

Self-employed-swami

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Re: HELP..Lucy needs advice on a property investment to rent out
« Reply #75 on: February 08, 2013, 10:37:04 AM »
Seems like a lot of fear-mongering. 

lucy

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Re: HELP..Lucy needs advice on a property investment to rent out
« Reply #76 on: February 08, 2013, 10:57:57 AM »
Hope that you are right! :-/

Another Reader

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Re: HELP..Lucy needs advice on a property investment to rent out
« Reply #77 on: February 08, 2013, 10:17:06 PM »
So, Lucy, did you buy the townhouse?

lucy

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Re: HELP..Lucy needs advice on a property investment to rent out
« Reply #78 on: February 08, 2013, 10:29:03 PM »
The bank asked for our highest and best, we told them we are not going any higher , then late yesterday afternoon they asked for us to give 4k more we said NO, our offer is firm. The realtor told us that they will try to ask for closing costs, and we said that we are not going to  do that..our offer is firm, if God wants us to have it, then it will happen, we have not heard anything today.
So, who knows, all I know is that we are not going to give a higher offer. We want it for a retirement home, and really only were going to buy because it is a good buy, and now is the best time. But,,I am very patient, and I can wait.

needmyfi

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Re: HELP..Lucy needs advice on a property investment to rent out
« Reply #79 on: February 09, 2013, 09:02:25 AM »
I didn't mean to berate you, in fact mostly restated facts that you and other posters had already stated.  I realize that in my mind I saw a comparison to our current financial problems in our entire country and probably didn't explain myself fully.  How all this relates to our current deficit I'll explain at the end if you want to read that far.

I think real estate might be a great investment for you if you do it right, but want to point out some FACTS-no puncuation or commentary on these facts

1.  You say you can't live on the 60k a year your husband makes.  Since you had nothing left to save when you had two incomes, you can either reduce your spending or reduce your savings for as long as you are unemployed.
2.  You are not working and have no immediate prospects for employment.
3.  Even paid off real  estate costs money.  Property taxes, insurance and maintainence.  And in the case of your current condo,a 300 fee.  You will not have the bank collecting escrow for these fees and will have to save them yourself.
4.  A 130k condo that rents for $1100 has a lower return on investment than a 50k condo that rents for $800
5.  The 130 k condo may appreciate in value quicker than 50k condo, but with realtor fees and transfer fees, it will not be impossible, but it maybe hard to to see any profit in your pocket for several years if you had to sell.
6.  You are upside down on your current condo because you refinanced with cash out. The condo is currently worth about what you paid for it 16 years ago.  You bought expensive cars and now own older, formerly expensive cars that have a fraction of the value you paid for them.  No judgement-just the facts.
7.  Even with social security and a small rental income, you will not make in retirement what you were making when you were both working.  You may live another 30 years.  If you won 1.8 million in the lottery tommorrow, tax free, and put it in under your pillow and retired, then you can withdraw 60 k year.  With inflation, you still would not be able to sustain your current lifestyle.

You state two things-one, the future is rosy, real estate is on the rise, everything will be better in the future.  On the other hand, the market will crash and your money will be worth nothing.

You can't control the future, but you exert some control your own finances.

Why this the problem with the US in general?  Because noone wants to look at the math.  Our current path as a nation is similar to yours-it is unsustainable.  Is this impending doom?  Absolutly not.  The state of California got its ass in a huge crack with ballot initiatives.  Want a new park, rec center, senior citizen center?  Everybody does.  Want to pay higher taxes.  Nope.  It has taken Jerry Brown a few short years to go from deficit to surplus.  He cut spending and raised taxes.  You need to cut spending and raise income.

Don't invest in the stock market if it will keep you awake at night.  But do figure out how to take care of yourself in the future.

Now-no face punch (or wake up call, reality check, whatever)-small slap coming.  Can you work for 25 out of 57 years and then feel entitled to retire for another 30.  Yes if you learn to live on a fraction of your income, save your money and invest wisely.  (If you save half of your money and invest, you can work for alot less than 25 years.) Or chose a career with an excellent pension.  Otherwise no.

Alright, put on a face guard cause a big one is coming your way.   DONALD TRUMP IS AN IDIOT.  He is a brilliant at marketing Donald Trump to the minions, but he has also declared bankruptcy repeatedly. 


 
« Last Edit: February 09, 2013, 10:24:06 AM by needmyfi »

lucy

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Re: HELP..Lucy needs advice on a property investment to rent out
« Reply #80 on: February 09, 2013, 05:14:11 PM »
@needmyfi

lol,, ok you are right, and I do get it. I honestly thought that this was a place for some advice, and I was seeking some advice. I understand, and I know that you are right. I get it. Thank You! REALLY, thank you.

I have a great opportunity to make some money off this inheritance, and I need to look into investing in other ways. I am green, and I have a fear of the unknown, as much as I have tried to read all about investing, and try to understand it, I still don't get it. It is so hard for me to talk to financial advisors when I don't understand what they are talking about. My Father made his money by purchasing CD"S, unfortunately they are not making money now. In fact nothing is.
I am looking for employment, I have been looking since I lost my job..I expected to retire with the company I was with for the past 15 years, still shocked that I wont be.

I am going to speak with someone this week, but I have such a fear after what Berny Madoff that it has held me back from investing. I have trust issues, yes, I know that. But I don't want to loose.

I will take your advice, and I do appreciate the time you took to explain..I guess you hurt my feelings, a little , with the choice of words.  I am a very conservative person, and I need to be that way with my money also.

Lesson's learned.
Thanks again

arebelspy

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Re: HELP..Lucy needs advice on a property investment to rent out
« Reply #81 on: February 09, 2013, 05:36:51 PM »
I'm glad you've opened your mind up lucy.  So many stubbornly cling to their beliefs, and are unwilling to listen to advice (even when asking for it).  Kudos.

I hope you find what you are looking for.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with two kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.

needmyfi

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Re: HELP..Lucy needs advice on a property investment to rent out
« Reply #82 on: February 09, 2013, 06:13:49 PM »
Glad we are ending up friends or at least frenemies.  This is NOT to freak you out, but remember that financial advisors are salesmen and make commission.  Real estate may be good for you if you get your budget right, annuities might suit your personality as well.  Do not jump into anything.  Let us know.

lucy

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Re: HELP..Lucy needs advice on a property investment to rent out
« Reply #83 on: February 09, 2013, 07:55:57 PM »
arebelsby...thanks :-)


nedmyfi...I know, that is why I have not been to talk about things yet..

Jack

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Re: HELP..Lucy needs advice on a property investment to rent out
« Reply #84 on: February 09, 2013, 08:48:22 PM »
Not sure if anyone here is aware of this...but it might be worth YOUR attention. It is worth your time if you are an investor. Quite shocking actually. You better hope that is not true.


http://www.canadafreepress.com/index.php/article/52961?utm_source=CFP+Mailout&utm_campaign=7995472d85-Call_to_Champions&utm_medium=email

Just FYI, even if you believe everything in the article -- and based on both my own lack of understanding of options trading and the author's insistence of his own lack of understanding, I'm not sure I do -- the ETF he mentioned tracks the financial sector index, not the whole diversified market. Even if the bank stocks crashed, there's still consumer goods, industry, health care, utilities, etc. that could continue doing just fine.

It could just be that somebody believes the recent credit card rule changes will have a bigger detrimental effect on the banks' bottom lines than the rest of the market anticipates.

Given that my investments are well-diversified, I'm not worried.
« Last Edit: February 09, 2013, 08:50:08 PM by Jack »