What are good assets to have and what liabilities should we avoid?

SPC(P) Private RallyPoint Member — Mon, 29 Aug 2016 23:59:58 -0400

So I made a "big boy" decision today and put my dream car up for sale. I pay a stupid amount a month just to have it depreciate in value (I did a 24 month loan on a $13,000 car) and my insurance is of course high (2005 Subaru STi). I'm looking to put that money into something that will be a cash flow. What are great assets to have and liabilities to cut?

Response by SPC(P) Private RallyPoint Member made Aug 30 at 2016 12:00 AM

SPC(P) Private RallyPoint Member — Tue, 30 Aug 2016 00:00:39 -0400

I know stock is the default answer, but I'm talking about cash flow.

Response by SPC Private RallyPoint Member made Aug 30 at 2016 12:03 AM

SPC Private RallyPoint Member — Tue, 30 Aug 2016 00:03:44 -0400

Consider finding a real estate investor who is taking investments, and invest in Seattle properties.

Response by Sgt William Kelley made Aug 30 at 2016 12:30 PM

Sgt William Kelley — Tue, 30 Aug 2016 12:30:28 -0400

Investment properties are usually a great way to start creating a cash flow. Depending on your age and capabilities it may be a great opportunity for you.

The VA loan is a great financing resource that offers us (veterans) the ability to put little to no money down and still qualify for great rates. Depending on your area and your situation you may be able to find a property that you can live in while collecting rent from the other unit(s). The money from the rent you collect could very well cover your mortgage payment and even provide a bit of cash flow for your pocket. Either you you would likely be living rent free which you can consider as good as cash in your pocket.

The one down side to this is that with the VA loan you must have a two year history of dealing with rental properties before you can use the rental income as "qualifying income" but if you have a steady income and have limited your debt you can qualify pretty easily. You should check out your options, the loan officer should be able to let you know what you qualify for and what you will qualify for once you sell that vehicle.

Just a reminder the other stipulation in using the VA Loan is that you will intend to use the property as your primary residents within 60 days of closing.

Response by LCpl Bryan Sundell made Aug 31 at 2016 1:22 PM

LCpl Bryan Sundell — Wed, 31 Aug 2016 13:22:22 -0400

Good Afternoon Cody,
I agree stock is the default answer in a lot of cases. You have a couple options.
*-You can do as suggested and find a rea estate investor looking to take on new investors. Most of the time there is a min net worth requirement that must be met but it is possible.
*-You can look to the stock option that is going to pay you both a dividend and also the potential to grow and or loose.
*-You can do an annuity which can achieve the immediate need goal however that will pay you principle and interest over a stated period of time. when its gone its gone.
*-You can look for commercial limited partnerships. These you are able to pool monies with other investors looking to invest in specific projects. These also can have a mon net worth requirement.
Lastly maybe consider a REIT (Real Estate Investment Trust). You get the benefit of investing in real estate however it reacts more like a stock.

Remember at the end of the day all investments have risk associated with them. I would be happy to discuss this with you further if you like?

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Response by CPT Private RallyPoint Member made Dec 30 at 2017 6:07 PM

CPT Private RallyPoint Member — Sat, 30 Dec 2017 18:07:08 -0500

3 single family house rentals, 3-2 Standard; average American families pay 1/3 of household income on rent, so 3 x 1/3=one entire family works for you; next, precious metals: guns and bullets when self entitled fools try to take what you worked hard for; updated passports for you and family to leave when SHTF; take your deeds with you and bury your guns in the ground; when fools killed each other off, come back; you got insurance to rebuild.