The “people” in OPM is a metaphor for any other source of money. I’m comfortable with OIM – Other Institution’s or Other Investor’s Money.
Thanks all again.
re friends:there is never a question of morals between us. Money is never something which would come between us as we work it both ways. As Sis says, if they are ok with waiting and still keep a strong friendship BECAUSE this is a totally trust based issue. they are ok to keep it that way. There is no push for cash to be repaid, so long as I am ok with this if and when it is needed in return. over 10 years we have never once had an issue about being asked to repay, or to borrow etc.
SO there is no moral issue here. I can keep the funds as long as I need, it was me that does like to repay my debts. SO yeah see I am a good friend!
re cards:
I do intend to dispose of my cards, but let me say the cards were beneficial. As I said my bank manager has an er understanding, there has been full disclosure on my part, he if chooses to ignore my cards…..its ok for him…
Re 100% borrowing,
been there done that on ALL my IP’s. good equity now though.thanks again!!!!!!!!
” a blind man may see what a sighted man may not”
Sorry I should of said pay them off and get rid of them – go get a LOC or something instead, or ReadyCredit (quite high int rates but it has certain,… benfits…).
Also a soon as you pay of a credit card, you have a ROI of that amount (so if your credit card is say 14%, you’ve made 14%, by not having to pay it off on easy monthly payments.
If it’s a friend and they don’t care either way, pay them latter.
Rgds.
Lucifer_auelves, i had 45k sitting in the bank at xmas. I bought three country props at 85%, and then used credit cards to whack in some extras for tenants. furnishings etc. And have managed to crank yield from 4% up to 30% on first two(yes this allows for extra costs of furnishings etc).(although i am taking on higher risk tenants as well).
If your credit card can make you a higher return than the interest, why would you cut ’em up. Do you impulse buy?, cos i have a 8 foot tall genuine (made in taiwan) egyptian mummy you could buy.[cap]lifexperience
LOL Life!
No mummys more a Lord of rings fan and celtic stuff. (Indian too as in American)
Ok away from that, as you do, I do. My card sizes of past and current debt is an issue for others, it isnt a big thing for me. As you do , I also used the card to buy air cons and dishwashers for some great tenants and increased the rent too, so tax benefit, interest in part is claimable expense and tenats happy to pay more
so see guys the cards can work out. No not impulse buyer. I also used my cards due to cash shortfall, for my home reno. Jacked up mortage, but needed the carpet and I went for expensive carpet and fittings for my own home.
OK I didnt need to spend 70k on renovations, but hey I work and I wanted so yeah I got! lol just as well I dont have someone breathing down my neck. I know I could have put the money to more Ip’s but at the same time I increased the equity and value of my own home, whihc also helps my Ip’s and makes me feel like I am comfy, and I can live with that!
Still time to rein in the belt and kick off again.
Elves
” a blind man may see what a sighted man may not”
Hi Guys,
it seems that we all have different views about credit cards, but from an investors point of view…
…is, i can see more pros than cons, in using them…
…are credit cards that really bad? or do they have that advantage…
Cheers,
sisCredit Cards i believe can be an invaluable investing tool, but they’re just a tool, use them as such..wisely [buz2]
LOC with Bad usage of CC can get you in trouble, used wiselly they ‘speed’ up your debt repayment [thumbsupanim]
If you cant use wisely..give them the chop! [medieval]
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
As elves has said, there can come a time when your credit card limits do not affect your servicability issues (I’m still waiting though[cap]). There was a post on these forums ages ago from a guy who had $150K worth of limits on his various credit cards, and it didn’t impact him at all. I think it depends on your whole financial situation, and how you present it to the individual bankers you deal with.
Having said that, elves, I would pay off the cards (keeping them though), and look to invest the rest in a couple of properties. You have the cards to then reno these if required, etc. etc.
Cheers
Melg’day elves,
I am very new to this forum so take this advise for what it is.
It sounds to me that you are fairly switched on financially, but one question i have to ask is, Why so many credit cards? Everyone knows that they effect your borrowing capacity.
My mother has a credit card with a limit of 50k and she thinks it is a measure of how wealthy she is.
And i keep telling her it is a measure of how nieve she is.
Anywho i guess you will do what you will do. If it was me in your situation i would do as others have said pay the debt down reduce my credit limit to one card of say 3k then invest the rest.Happy days
Gav.
Hi Gav
I use them for investing, not for a show of wealth despite those pretty colours and clear see thru blue things LOL or gold? platiunum?
Seriously, I up them and I down them, limits used to be 20k 20k 15 k 5 k so on a few cards, but these are reduced.
I bought another property rather than pay off the cards SORRY everyone! i rather have the income, more a year than my card interest, BUT having said that they are being paid off pretty quickly.
I was really at a point in my life where I wanted to give it all up and not pay off my mortgage each month, clear all debts and live luxury, butthen the old me comes back and kicks the devil off the shoulders. I love investing in many forms not just property
thanks for your help and advice all. Good to get different opinions, gosh we do all think diff dont we?
Elves
” a blind man may see what a sighted man may not”
Comming in on the tail end….
When we started off (newly weds) we decided to not take a loan for our PPOR.Later we built it from scratch, cost us around $80,000 building over 3 years and living in a caravan with 4 kids (wonderful memories). Any way 4 years down the track house worth about $350,000 and we are off to see the Bank manager….
Suggestion ( and i know it’s hard):look for alternatives when acquiring your PPOR, starting off with a big ‘non tax deductable’ loan and then trying to find money to invest, I think, is more difficult.[thumbsupanim]
Originally posted by gava1:g’day elves,
I am very new to this forum so take this advise for what it is.
It sounds to me that you are fairly switched on financially, but one question i have to ask is, Why so many credit cards? Everyone knows that they effect your borrowing capacity.Hi Gaval,
im very much the same as Elves, with the credit cards, in total, ive had 4 cc’s but now back down to 2, but it depends on how you use them, cc’s can come in very hand, and are excellent for reward points, also personally ive found that my cc limit hasnt affected my borrowing capacity and that it has given me extra privileges and bonuses with the bank when dealing with them…
… perhaps its an individuals choice, but cc’s definetly have there place and can be of some great value…
Cheers,
sisyep and most people you speak to will tell you they are a no no, well I guess they are in many ways, I use them for a variety of reasons, and they come and go depending on my moods. LOL
” a blind man may see what a sighted man may not”
yep and most people you speak to will tell you they are a no no, well I guess they are in many ways, I use them for a variety of reasons, and they come and go depending on my moods. LOL
” a blind man may see what a sighted man may not”
You already know what I would do with it.Different circumstances call for different answers.One or two good investments will put you in a position to reduce more debt.
Russ.Hi Guys,
i thought i might give this a shot…
ok.. in my current position at the moment, i have a good lazy amount of equity of about $200 – $300k that i can quickly access…
… for me, im just sitting on it at the moment, but it is readily availabe for access immediately…
secondly… i have around $80 – $90k cash coming my way in the next 8 weeks, by this time, will be credit card debt free…
any suggestion, on how you think i should spend and invest the cash money, and the equity i have now available…
… one other thing to mention, it doesnt have to be all tied in properties, im open to other investment vehicles like shares and what the international market has to offer…
… ill wait for a few reponses, and then share abouts how im actually going to invest and spend the cash and equity…
but you will see definetly i have a different approach to most people…
Cheers,
sishow much return are you after for the short term.invest 20k over short period and get a 100% return.
RussDepending on how much risk you like you could always do what that guy did in Reno.Put 80k on the red.If you lose you have plenty of time to get it back.
Personally i,d stick to undervalued property.
Get in,clean up,get out.
Or maybe you could try the black??????????????SIS,
For your circumtance I will do the followings if I was you:
I will pay credit card off as soon as the money arrive (8 weeks time). Since you are not so interested in property at this stage then I will learn how shares trading work/ options trading…I will use maybe $50k to trade shares and writing a covered calls against those shares. When I got the experience then I will trade option.
Kind regards
Chan Dollars
[Retire Young, Retire Rich] [strum]hmmm Chan,
we must think alike…
anymore ideas guys…
Cheers,
sis
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