Lifestyle changes - Page 19 - PeachParts Mercedes-Benz Forum

t walgamuth · #**271** 10-08-2017, 08:09 PM

We went up today to ink the deal. Before the ink was dry the seller was complaining to my realtor that she shouldn't have agreed to the deal and wants a bunch of her stuff back (we bought it with all contents, silverware, plates. glasses, rugs towels, blankets, beds, furniture and rugs.)

I told the realtor to have the seller make a list of what she wants and we'd consider it.

Its a rental home near lake michigan.

t walgamuth · #**272** 10-12-2017, 04:16 PM

Today have been working on the other building (office) building I am planning to buy. The existing leases all end next year so I have asked my son and son in law the realtors to try to negotiate extensions on all the leases.

As we get closer to closing everybody starts sharpening their pencils. The Bankers want longer leases. ...Me too.

It looks like when the dust all settles I can buy the office building with a normal amount down payment on the mortgage and pay for the vacation rental home with cash. I'll have one dollar left over. (Well a little more than that if nothing goes too far wrong).

t walgamuth · #**273** 10-14-2017, 09:37 AM

So yesterday I reviewed a requested modification of the offer to purchase my building. They want me to take a lot less for reasons which seem pretty unsubstantiated. My son the realtor thinks it is just negotiating and I should ignore all the unsubstantiated details and make a counter offer. So yesterday I signed a counteroffer making a substantial concession.

If they take it it means I will either have to pick a smaller vacation home rental or take on more debt if the banks will lend it.

It seems silly to borrow a lot of money at my age when the amortization of the loan exceeds my life expectancy. OTOH I have always lived with a lot of debt so not having much might be pretty weird.

Piling up cash after paying capital gains on it is not a real attractive option since I have a long history of spending free cash on old cars.

Having everything in real estate is my norm....it is a lot harder to go through it if it's tied up.

t walgamuth · #**274** 10-18-2017, 07:25 PM

So they rejected yesterday's offer. My son asked me to come in today after lunch and discuss their reaction to my counter offer. I was pretty sure that meant I'd have to drop my pants and take it like a man (sorry for the mixed metaphor, if that's what it is).

At lunch today I told my buddies if they chiseled my deal any more instead of a vacation rental home I'd only be able to afford a pup tent and a couple of air mattresses.

So when I got there it turned out I was right. I got chiseled some more and conceded another great chunk of $.

So a couple hours later i received word they had accepted my offer.

So I am looking at ways to scrounge up some more $ to pay for the beach house. I am considering refinancing my main house. I can get enough to pay the balance on the beach rental and have less monthly outlay....if the bank will loan me the money.

t walgamuth · #**275** 10-20-2017, 10:37 AM

I was doing cash flow projections yesterday and I think I'm gonna have to find a cheaper vacation rental to buy. Things look a little too tight. I don't wanna be broke all the time.

iwrock · #**276** 10-20-2017, 10:52 AM

Quote:

Originally Posted by t walgamuth

I was doing cash flow projections yesterday and I think I'm gonna have to find a cheaper vacation rental to buy. Things look a little too tight. I don't wanna be broke all the time.

Isn't that the American Way?

Tons of debt, little free cash on hand, leveraged way beyond reason?!!!!??

Just kidding.

Sorry to hear that things aren't working out the way you had hoped. Hopefully you find a vacation home that won't break the bank!

Someone told me that these are the good kinda problems to have!

t walgamuth · #**277** 10-20-2017, 03:02 PM

Well, yeah. No complaints.

So today I met with my accountant and discussed the wisdom of all this financing etc. I expected him to reinforce my more conservative thinking.

Instead he jumped in and said it looked like a good property to buy and to do whatever necessary to do so. He says if money gets too tight I can sell it.

Woo hoo!

Now i just gotta convince the banks.

t walgamuth · #**278** 10-24-2017, 07:09 PM

Today I realized there are two loans that I was planning to pay off with a new bigger loan in each case. One is a second mortgage on my main home, the other is an unsecured note. So if I leave the house loans alone and just don't pay off the unsecured loan I can reduce the amount of mortgage I am requesting. Good.

And after the inspections on the rental I have negotiated a lower purchase price to offset things needing repaired that were revealed in the inspection.

So things are looking pretty good I think.

t walgamuth · #**279** 11-03-2017, 11:22 PM

Yesterday I met with a new banker and discussed the various purchases and refinances. He suggested not to pour all my cash into the rental vacation property but to borrow as much as I can on it and put the cash more on the office rental as the home will qualify for a lower rate.

So I spent yesterday afternoon and today penciling things out for this new strategy. I'll be going in tomorrow too to scratch around more.

t walgamuth · #**280** 11-06-2017, 07:03 PM

Today the appraisal came in on my buyer's offer to buy my building. High enough.

That is the last hurdle I was worrying about.

Woooo hooooo!

Air&Road · #**281** 11-06-2017, 08:00 PM

Quote:

Originally Posted by t walgamuth

Yesterday I met with a new banker and discussed the various purchases and refinances. He suggested not to pour all my cash into the rental vacation property but to borrow as much as I can on it and put the cash more on the office rental as the home will qualify for a lower rate.

So I spent yesterday afternoon and today penciling things out for this new strategy. I'll be going in tomorrow too to scratch around more.

Borrow as much as you can?

You would think the banker is selling money or something.

I don’t understand that approach. Borrowing money in your sunset years? If I weren’t out of debt, I wouldn’t have money for toys.

t walgamuth · #**282** 11-06-2017, 08:52 PM

There is more than one way to skin a cat.

Air&Road · #**283** 11-06-2017, 09:27 PM

I am not interested in leaving debt for my kids. I would rather leave behind money and assets.

t walgamuth · #**284** 11-07-2017, 06:53 AM

You did not read my entire postings on this aspect or perhaps even the post you seem to quote.

The statement of borrowing as much as I can is an incorrect quote. In fact on the office building I am planning to put down 65% of the purchase price, the vacation rental will be 27% down, and on my home we're consolidating two loans acquired during my developing days and reducing monthly payments by $700.

Yeah, we'll owe some money when we die probably but the estate will be substantial after the real estate is sold.

The cash flow while I am alive also will be substantial....much more than if I liquidated everything into cash and paid the capital gain taxes. ...then what you gonna do with cash? Everything that is risk free pays nada. I'd much rather have real estate than stocks. Stocks can be manipulated and can go to zero.

I made it through the big recession pretty well because I had real estate investments . I think I'd rather do it again if necessary.

Then too with Trump in perhaps real estate will be an even better investment with all the tax breaks he'll surely target to real estate owning investors.

t walgamuth · #**285** 11-07-2017, 10:42 AM

Larry it seems like you are trying to turn something good that is happening for me into something bad.

I'm not convinced.