All Forum Posts by: Dave W.

Now that the Feds dropped the interest rate to between 0-2.5%, how long will it take to affect mortgage rates? Should I wait on Wachovia's offer & see if they offer something better? Or should I try to negotiate a better rate? If so, how would I do that--ask for a specific rate, or just ask if they can do better & see what they say?

Thanks for this post, Mike C! Here's a question for the seasoned investors: I'm just getting started myself, & plan to follow your advice in this post, as well as other advice. I know I should have my own financial house in order b/4 investing, but how much in order? I have a credit card w/ $10K on it. Should this be paid off? If so, what about my vehicle ($13K left on the loan), or 5th wheel ($15K)? Should I be debt-free, or should I invest in RE to become debt-free?
Thanks! Dave.

Thanks, Michael! I'll look it up.

Thanks for that advice, Diane! (love your sign-off, too--I'm a "Cheers" fan).
Your advice sounds doable, safe, & also motivational--gives me the feeling that I can do this successfully.
Dave.

btw--can you explain your very last sentence--what is "in money" in cash flow?
thanks...

Thanks for that advice. Very helpful. Yes, I see this as a potentially win/win situation. Like you said, Another Investor, the bank will be getting what the house is worth, plus the add'l we owe (w/o interest), but it's better than having to deal w/ a foreclosure. It's almost like they're "reselling" it to us for current market value, plus the add'l amount we owe (which, in fact, does include the interest we haven't paid for the last 3 yrs from the time we re-fi'd). In return, we don't end up losing the house (in part, due to our ignorance/stupidity, & in part due to the mortgage broker who sold us on it), our credit doesn't get screwed up, etc. Yes, big lesson here.

Thanks, Chris. Yes, we're just starting out, so it would be one house at first. I know this site will be a great resource for landlording Q&A, but can anyone recommend an excellent book on landlording? Or a list of do's/don'ts, or how to bullet-proof yourself (as much as possible, anyway) from the horror stories you hear about of being a landlord?

Does anyone have any feedback on this CD course, & also the offer generator? I've enjoyed the book "The Weekend Millionaire's Secrets to Investing in Real Estate", & I'm wondering if this would be a logical next step? I'm especially interested in the offer generator.

Thanks!
Dave.

NO recommendations on finding a good property management company???

Jon, is that based on the 50% rule?
It's almost sounding like we should just walk away from this house. We could stay here 8-9 months while putting our house pymt into a savings account instead for a down pymt on another house, then rent for a couple yrs until we'd qualify to buy another house. I doubt the market would turn around that fast, so we'd probably be able to get a decent deal on our next house. Then WE'D be the neighbors who paid less for our house, w/ better rates.
How long, & how bad would it ding our credit if we walked away?

Well, here's the latest (good news, imo!). I called Wachovia back to get clarification on what the rate would be on the 2nd after 3 yrs. I misunderstood her the first time. This time she told me that the 2nd will be a 0% interest loan! With no pymts for the 1st 3 yrs, & then the balance being paid over 27 yrs at 0% interest. So, we'd have a first in the low 5's, maybe even in the 4% range (depending on what we qualify for), for 97% of the current appraised value, & the rest at 0%. We're going to go for it. Worst case scenario, even if we walk away in 3 yrs, we're saving $$$. What I'd really like to do is re-fi, rent it out, & have this learning experience as our first rental and purchase another home to either live in long-term, or turn around into another rental in a couple/3 yrs.