Calling Investment home owners ... DB landlords...

[Konebhar6]

3 hours ago, Hitman said:

Good info. is it better to buy HYDB instead keeping the money into Webull Cash management account which is only paying 4.3% daily interest?

i looked at the history - in the pandemic it came down 50.34 to 43. Didn't collapse as stocks. if i understood correctly, these bonds doesn't crash as fast as stock market right? unless the company's credit rating falls... 

YES.

Pretty much every savings account including Robinhood, WeBull, CITBank, etc will keep reducing interest rates as Fed decreases them. 

Bond yields reduce as Fed decreases rates. Bond prices work inversely to the Yield. Move your cash into different High Yield bonds (Use Yahoo Screener) before the prices increase. 

They will reduce in price again as Interest rates increase which is not the case now. At least till 2026 2nd half. 

[Konebhar6]

2 hours ago, Bulls_Rose said:

Any lender that offer loan on land. Oka 10 acr land 1.2 mil undhi. Loan process ela untadi for land ki? 

Any thoughts 

I have not done it, but it should be similar to Refinance.

Refinance chesinappudu they will assess the properly and you can take equity out.

For e.g. you bought the land at $500k with a loan of 400K. You have paid the principle of 50k. Now the price is $1.0 Million. Keeping 20% equity, you can refinance for 800k at current Interest rates (That's the catch). You now have 450k cash. 

You can take a secondary mortgage loan without refinancing. I did it with DCU long back. Lets say they approve the loan for 300k. The beauty of it is, if you use only 100k out of it, you only need to pay interest on 100k. 

[ManchamKodi]

3 hours ago, Konebhar6 said:

Cash is king. In this market uncertainity, better opportunities may come. MAY being the key word here. 

So I would buy the property even if its break even and put down only 25% (whatever necessary minimum % to buy rental property) and rest 75% I will keep in a High yield bond like HYDB. He does not have to worry about paying 6.5% interest rate. He is still making it with his rest of the cash. Problem Solved.

anna 25% down pay chesthe how can he save 6.5 interest rate ?

300k on High yield bond like HYD safe ? throw light anna

[Konebhar6]

3 minutes ago, ManchamKodi said:

anna 25% down pay chesthe how can he save 6.5 interest rate ?

300k on High yield bond like HYD safe ? throw light anna

You can look at its history. Even in Covid it did not fall much. Bonds are one of the safest investments. I would split this money across different asset classes.

• Bonds & derivative income funds
• Business Development Corporations. They pay good dividend and are stable.
• REITs
• Dividend Stocks that pay 5% Yield. Energy stocks are at 52 Week low. They give good yields. They might still fall a bit more so you can buy a Energy Dividend ETF and max it can fall is another 20%. DCA will give you excellent results in 2-3 yrs. Dividends + price appreciation
• Income funds like JEPI, JEPQ. Same strategy as above. DCA
• In case market falls, move money from bonds into stocks or index funds. 

[Aquaman]

@csrcsr

[Kootami]

6 hours ago, Hitman said:

Asking for a friend...

Lets say it is 400K worth property. is it wise to buy the property cash down? in this scenario all the rental income after the Taxes/Insurances/HOA/Repairs can become profit and Owner get to pay Taxes on it.  Buyer savings up to $6,000 in closing costs. + perhaps a little leverage in negotiating the buying price. 

OR Take Mortgage, to write off the income with expenses added by interest payments? 

In general what DB landlords suggest?

@Konebhar6  @Sucker

Thanks in advance..

Are u saying you want to put down 400k cash ??

[phatposts]

5 hours ago, Hitman said:

Correct, by all means it is not a Investment at this time.  The monthly yield also negative at this time.  it turns positive after 5 years of ownership. assuming the deposit interest rates go down, it can become better investment after 5 years.. 

it wont be a positive investment until year 15 if you practically factor in vacancies, capex, prop management fee, turnover costs, time baagoka pothe eviction costs and all. 

[karna11]

3 hours ago, Konebhar6 said:

I have not done it, but it should be similar to Refinance.

Refinance chesinappudu they will assess the properly and you can take equity out.

For e.g. you bought the land at $500k with a loan of 400K. You have paid the principle of 50k. Now the price is $1.0 Million. Keeping 20% equity, you can refinance for 800k at current Interest rates (That's the catch). You now have 450k cash. 

You can take a secondary mortgage loan without refinancing. I did it with DCU long back. Lets say they approve the loan for 300k. The beauty of it is, if you use only 100k out of it, you only need to pay interest on 100k. 

HEloc ki dheni ki difference enti?

[krishnaaa]

8 hours ago, Hitman said:

Asking for a friend...

Lets say it is 400K worth property. is it wise to buy the property cash down? in this scenario all the rental income after the Taxes/Insurances/HOA/Repairs can become profit and Owner get to pay Taxes on it.  Buyer savings up to $6,000 in closing costs. + perhaps a little leverage in negotiating the buying price. 

OR Take Mortgage, to write off the income with expenses added by interest payments? 

In general what DB landlords suggest?

@Konebhar6  @Sucker

Thanks in advance..

Its better to follow the real estate cycle. 

This is not the time to buy investment properties.

Many people are becoming bakras. Be careful ani cheppu mee friend ki.

[Konebhar6]

48 minutes ago, karna11 said:

HEloc ki dheni ki difference enti?

It was probably a HELOC. It was a while back so I don't remember what it was called.