Last year I made 3 loans to some friends of ours. I was tickled to make 4% on the loans and they were happy not to have to pay closing costs at the bank.
The last loan was the biggest, they were buying a park model home and land, that they called "the cabin"
I only received 2 payments on the cabin and they called last night asking me to figure out the payoff for all 3 loans. (his mother is not expected to live, so he cashed in her c.d.'s) (only child)
Now I am back to wondering what to do with the money to earn some interest. I talked to ING today and they offered me 1.25% in their electric orange checking account. I guess I will try even tho I am a little leery of online banking and not good with a computer at all.
I saved $3 buying steak on sale, so it goes to my challenge money.
Prev. total $1762.00
today 3.00
new total $1765.00
Loan paid off!
February 12th, 2011 at 09:22 pm
February 12th, 2011 at 10:22 pm 1297549333
February 12th, 2011 at 11:34 pm 1297553658
I am terrified of savings, bonds, and the like because I see rising prices and inflation at the grocery, when I fill the car with gas, on the utility bills, and anything any level of government prices. I see my buying power sinking as I pay more and more and more. Frankly, the American government is in debt 14 trillion dollars they admit to and something called unfunded liability to $?. This will get worse before it gets better.
Have you had experience as a landlord? It is difficult, stressful and aggravating. How will you chose good tenants? What will you do if they can't pay? The rules for eviction are ghastly if they don't leave voluntarily.
Do you have hands on experience fixing plumbing, electricals, appliances, flooring, roofing, sofits and drainpipes? As each renter leaves, are you willing to repaint, repair, and repeat high stress levels? Can you tell I found this to be a horrid experience.
February 13th, 2011 at 04:34 pm 1297614844
I had 3 rentals at one time and it was a terrible experience even tho my dh is handy at fixing things. we sold all 3 at a loss. I keep quite a bit of cash on hand because we use to build spec houses to sell when the economy was better. We are building one right now, just hoping it will see and to keep dh busy.
February 15th, 2011 at 01:33 am 1297733600
Cash is king and you have to accumulate what you can Julie. Most people don't understand that and you have to continue doing what you were doing before even when things look bad.