Tagged: Real Estate
This topic contains 17 replies, has 10 voices, and was last updated by 
505vikingo 4 years, 5 months ago.
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Im 29 years old and a single dad to a 6 year old little girl! I have an amazing job and make great money! I got divorced shortly after getting my good job so I didn’t have very much in my 401k so I lucked out on not having to get my ex to much of it! But I need help with my financial situation. I live in the panhandle of Texas (by Amarillo) most certainly not the most exciting place to live but definitely very cheap cost of living. After divorce my dad moved to Baton Rouge and gave me his house! So I have absolutely no rent or mortgage! As of August I will be completely debt free with the exception of my new truck I bought. So my income every month after taxes is $3800 and my bills as of August will be only $1300. So im wondering what should I do with this extra money I have left over every month! Im not asking what s~~~ should I go blow it on im asking should I save it? Invest it? Put it in my 401k? Im really good with money as far as smart spending goes but have absolutely no idea about investing money in say mutual funds or stocks. Currently I put 10% in my 401k and my employer matches dollar for dollar up to 7%. Second question I have is I’ve always dreamed of having a custom built house and thought about saving my money to buy a custom house in 15 years after my daughter graduates college. Between saving money and selling my current house I could pay cash for a new house. In my area u can buy a very nice house for $150,000 and a extremely nice house for $200,000! Or should I stay in the house that is paid off? It was built in 1972 so the age of the house concerns me. Im open to all ideas so any advice would be appreciated! I just realize I have an amazing opportunity in front of me to really be financially set in the future and just needing a little direction from the older men on this site who has more knowledge than I do!
Although I can not help you with your cocnerns (I’m just a slacker in life, I have no knowledge of finance), I would like to ask you about the Amarillo area. If you wouldn’t mind talking about it a little bit. I am looking for places to relocate to and cheap housing is #1 on my list of must haves. Land in particular. I want to live on many acres of land (away from neighbors, I hate having neighbors). I would ask this in PM but I don’t think there is a PM function here. Sorry I can’t help you I am sure that there will be other guys here who can though. I just want your take on the Amarillo area in general. The pros and cons, so to speak.
Women are parasites. Each and every last one of them.
I am not much older (36) but I have masters in economics and am almost a CFA – certified financial advisor.
Forget about pension plans. This is a scam that can go sour if we hit a major financial crisis.
There is a website called lendingclub (no affiliation) which allows you to lend your money out just like if you were a bank. This brings an average of 10% yearly. If 10% sounds like a lot to you – you might want to look into it.
If you don’t want to do it – just stack cash and wait till the stock market collapses. And when it does- invest in utilities and telecom. Those companies will never go broke
proud carrier of the 'why?' chromosome
Singledad. You are in a financial position that many men twice you age could only hope to be in. I am 47 so here is the best advice I can give you.
Russky gave some interesting advice about lending your money out. You will get ahead on some risk. Don’t put all of your eggs in one basket.
1. Put some aside for a rainy day first. You may lose your job and have to find another that requires that you relocate. Look at your current expenses and projected expenses should you find yourself unemployed and put together a nest egg that will carry you through at least three months. Five months maximum.
2. Consider a college fund for your daughter. I graduated high school in 1985 when you could still get buy on minimum wage and still educate yourself. Today this is much different. What will it be like in 12 years when your daughter graduates high school?
3. Invest. Consider a financial adviser. Maybe Russky will give you his phone number?
4. Want to build a dream house? Consider where and when. Is this a retirement goal or a “Before I’m 40 goal”? The where may dictate your decision. Look at undeveloped property prices and determine if they are affordable. Pay Off Property before building. This give you equity and a real property as collateral to mortgage the construction of a home on this property. DO NOT EVER use your existing home as collateral. See number 1 above. If you ever get the idea to get (re)married, make sure that all property is in your name before this happens so that it is NOT community property. If you ever get the idea to get (re)married, do not sell your current home and use it to buy another. In the state of Texas (yes I’m a resident) your current home is not community property. However, if you sell it and buy another while married, it may be more than likely be considered community property. Guard your wealth and property.
5. While trying to build a solid credit rating consider this. Pay in cash whenever possible. If it is worth putting on a credit card and is not an emergency then it is worth the wait until you have the cash before purchasing.
6. While all of this may be good advice, take it from a 47 year old with FIVE kids. Number 1 above is the first priority.
7. Lastly, should you ever wake up and choke down a blue pill and decide to get (re)married. Get a prenuptial agreement that includes any investments, child custody, property, etc that have been accrued since the marriage. If she is as secure in the knowledge that love conquers all as you may be then a prenup will not phase her. After all, if you have a good income and own your own home. How long before the vultures start to circle?
"I asked you a question. I didn't ask you to repeat what the voices in you head are telling you" ~ Me. ........Yes I'm still angry.
Doingmyownthing40, Sure i’ll tell u about that the Amarillo area. Like I said in my previous post it’s defintelly not the most exciting area in Texas. So if you looking to have a life full of bikinis and speedboats u need to move somewhere else lol…The upside is that it is has a reasonable cost of living! Actually inside Amarillo is a lot more expensive than the surrounding smaller communities! The smaller surrounding communities are very safe and most have great schools if you have a child! The city of Amarillo is pretty dangerous as far as crime goes! I remember once reading an article that said if Amarillo was a bigger city like Dallas/Houston that it would be the most dangerous city in the country! I live about 55 miles outside of Amarillo so I get the Amarillo paper and seems like everynight somebody getting shot over there! Id say the biggest downside is the weather! u will be dealing with very hot/dry summers and very cold winters and probably the worst thing is the 50mph winds every day! Their is 3 kinds of weather in the panhandle. really hot, really cold, and really windy! And really windy is year around! Amarillo last year was rated the most windiest city in the country! Defintely not out of the norm to experience days in the winter that get in the negatives! Most people don’t realize how cold it really gets in the panhandle! If you have any other questions don’t be scared to ask!
soldiermedic, Thanks for the advice! I have step number one complete! Bills are $1700 a month and I currently have about $9,000 in savings! I also have step number 2 complete. My exwife pays me child support every month and I put that money every month in a 529 plan for my daughter! As far as the house goes im currently 29 and would like to invest some money for approximately 15 years and then buy the house so lets say age 45! My current house is paid off so what im wanting to do is pay cash for a house! Or is that unrealistic? I figured between the money I invest and the money I get from selling my current house I could at least come very close to paying a house off!
Anonymous42@singledad984, first get your house inspected for hidden problems like aluminum wiring (fire hazard), lead paint, leaky roof, dry rot, and termites, you won’t have anything you can sell in 15 yrs. if these potential problems go undetected. Dream homes can become nightmares when the taxman starts sharpening his pencil. If you’re going to remain single(intelligent) don’t purchase more sq footage than you need.
I’ve got a 4,000 sq ft dreamer on 31 acres, that I can’t wait to get rid of. I lost my ass in the stock market and will never buy stocks again. I did OK with precious metals (silver), but the government records those transactions. Buy silver and gold whenever you can without creating a paper trail. I’m looking at copper and zinc 1,000lb ingots when I can afford it and when the market is low, reason being that they’re hard to steal when nobody knows where you buried it. Nobody knows the future with certainty, but history shows that laws change, then people get screwed. Don’t trust everything that’s conventional, think for yourself, trust your gut feeling, It got you this far, it’ll get you the rest of the way….
I figured between the money I invest and the money I get from selling my current house I could at least come very close to paying a house off!
Property…..There are two fundamental ways that I view it.
1. If property is not readily needed then it could be sold and the revenue banked or used for the purchase of another/more property.
2. A source of income. Are you a person interested in the bird in the hand or the two in the bush? A home owned free and clear can be rented. A quick check of Zillow.com shows that homes in the Amarillo area rent for between (depending upon location and how nice the home is) for between $600 and $1,400 per month. In my experience in Austin, TX, houses in decent subdivisions list for anywhere between $1,300 to $1,800 per month. Okay If you are going to give what I’m about to say any credence what so ever, then you need to engage a tax accountant. H&R Block works for me. Here’s what you can do. Rent the home. You can either go through the hoops to list it as a HUD home for low income families or put it out there yourself. Also, if you are going to rent then the possibility of hiring a property management service helps to insulate yourself from the renter. They do cost but you don’t have to listen to some single mom with three different kids with three dads bull$hit.
What can you get from this?
1. Tax deferment. The value of the property can be tax depreciated over time (five years I think). This can be answered by the tax accountant.
2. Income. The rental fees go in your pocket minus repair, maintenance, and upkeep.
3. Again, a house to live on. I believe in bomb shelters. Owning a home outright is a hedge against the worst case financial scenario. Lose your job. Economy implodes. Zombie attacks. Elderly parents that need a place to live who are physically impaired. Remember a family member gave you a house. I personally belief that you can’t take without giving back to those that have supported you.
4. When tax deferments run out, sell the home, buy another, and do it all over again. If this house was built in 1970 then selling it and purchasing another more recently built home for this endeavor may be the place to start. The value of your current home may not be as much as you think it is. Live in the new one, get the new one paid off then get under way.
5. Check with a tax accountant. I haven’t run this game in a while (don’t need to) and the laws/rules/regulations may have changed.
Now is paying cash an unrealistic expectation? Not really but if you already have an income and an additional income from renting then purchasing another home without selling the other one may be a more appealing prospect. Here’s why.
You stated earlier that you have about $2,000/month in disposable income. The monthly payments for a $150,000 home with a 6.75%, 30 year fixed rate mortgage will be $972/month. This is not including escrow. Escrow is what you have to pay the mortgage company to fund the real estate taxes and homeowner’s insurance. This is their way of guaranteeing that there are no legal entanglements with back due taxes and if your house burns down the value of the home pays them for the mortgage minus the equity. So in reality, your monthly payments will more likely be closer to $1,500/month. This brings your current disposable income down to just $500/month. Not a lot of flexibility it comes to a major car repair or replacing a home air conditioner. Remember the rainy day fund is for really bad times and credit cards are another way to the downward spiral. Now if you rent your current home then your disposable income comes back up to what ever your rental agreement states minus expenses and income tax.
An extra $500/month on the house payment cuts the time of the mortgage from 30 years to just over 12 1/2 years
An extra $750/month on the house payment cuts the time of the mortgage from 30 years to exactly 10 years.
An extra $1,000/month on the house payment cuts the time of the mortgage from 30 years to just over 8 years.
The money gets tighter the closer you get to a $200,000 house.
If you have $2,000 and month in disposable income. Saving for the purchase for another home for three years at $1,250 per month will leave you with a $45,000 down payment. <span style=”text-decoration: underline;”>You do the math.</span> The more you save, the larger the down payment, and the less you pay on a home in interest charges. <span style=”text-decoration: underline;”> I reiterate, your current home was built in 1970. Pay to have an inspector come in a check it out before you put it on the market. You may have a money pit on your hands and getting rid of it may be difficult. After inspection and repairs have in reinspected and then have in professionally appraised.</span> Here in Austin, developers are tearing down old homes and building new ones in the less than desired parts of town and are making money doing it. Gentrification.
One last thing. You are only 29 years old. Banks don’t trust people as young as you no matter how much disposable income you have. Saving for the purchase of another home will give you a big down payment, get you a little older so that your interest rates aren’t that high and give you spare cash should you decide to sell your current home and purchase another. The real estate market may take a downturn and you could find yourself upside down on the value of the property versus what you paid for it.
If you sell then buy do it in the same calendar year so that you don’t have to pay income tax on the sale before purchasing another. If this was a <span style=”text-decoration: underline;”>gift</span> then you <span style=”text-decoration: underline;”>may still have to dodge a tax bullet this year</span>. Again consult a tax accountant.
Finally, check your credit scores with all three credit monitoring companies. See if there are any discrepancies and get those corrected. Have a B plus to A minus credit rating. Consult legitimate sources as to how to build a higher credit rating.
Like is said in my last posting. You are in a financial position that a lot men twice your age only hope to be in. Doing something like this is what I have done, and have done quite well for myself. Investing in the financial markets etc. may be more for you but everyone always needs a place to live. DO THE RESEARCH.
Good luck.
"I asked you a question. I didn't ask you to repeat what the voices in you head are telling you" ~ Me. ........Yes I'm still angry.
Also, Everything Tower said is excellent advice also.
"I asked you a question. I didn't ask you to repeat what the voices in you head are telling you" ~ Me. ........Yes I'm still angry.
Thanks for the advice! One more question thou! How do I go about figuring how much I need to retire?
Anonymous42How do I go about figuring how much I need to retire?
That’s a crystal ball question, It’s not answerable unless you’re thinking inside the box this progressive society has created over the last 100+ years.
Retirement is an illusion, the wage-chains of excessive taxation to subsidize the irresponsible, lazy, and corrupt, has lead us down this road of economic instability. The “meaning of money” was the foundation of a productive and healthy society. The bar is always being raised to cover the promises of prior unconstitutional mandated policies of transferring wealth. Look at the people who die just before (progressive’s) retirement. Their whole lives they slaved for nothing, and the ones that do make it to (progressive’s) retirement, only to live with the sharks of inflation eating their wealth into a lower standard of living, and eventually consuming their property. This society has a deep seeded and well rooted governmental Sequoia Forest of administrative control. It’s now an engineered society, operated by feminist dictators, and White Knights. THEY. ARE. COMMUNISTS. BY. NATURE!!!! They brought this society excessive administrative expenses in controlling all the people in every little aspect! We’re seeing the results, a tyranny beyond anything the world has ever seen. The national debt is only one example of progressive’s social engineering failures.
It’s impossible for top down governing to control the people from cradle to grave. You need to be prepared for the worst, and hope for real change, but that apparently won’t come until after a collapse.
Invest in tangible industrial hard goods, “raw ingredients”, with nothing attached to the unstable and endlessly plummeting dollar! Our standard of living has decayed under this gynocentric liberal form of government, and it’s only going to get worse before it ever gets better.
Being a MGHOW gives you GREAT ADVANTAGE over the gynocentric “LAW ENRICHED” governmental machine that has changed this society for the worse! The cities are ablaze, it’s factories closed, it’s people impoverished, and the bastards that run the show? They’ll continue to prosper as the people descend into these apparent ruins.
The patriarchy is destroyed by liberal progressive institutions of government, mandated by law.
Feminism is a cancer! Where liberal feminism reigns, cities are destroyed, and violence becomes a way of life.
Thanks feminism, thanks for all the changes, It’s “your” inferno, it’s “your” funeral fire, now f~~~ off and die!
A couple things:
– Most importantly, it is not possible to give you advice without knowing what your goals are. The best one can do is give you advice in accordance with his own goals, all of which are different from man to man. Any move you make, without a clear written goal in your head for what exactly you are trying to achieve will end in you losing everything. Are you looking for financial freedom and instability, or financial security and a life of being a slave wage? Do you absolutely love what you do or is it just a job?
– Russky’s advice is not bad, about stockpiling cash and then buying utilities after the crash.
– Being debt free with the exception of a new truck is not being debt free. It’s being in debt. Referring to debt as ‘completely debt free’ indicates that someone somewhere is giving you very bad financial advice (your financial adviser, financial radio shows, financial books, family, church, etc…), so I will leave you with this quote: when a man with money meets a man with experience, the man with the experience usually ends up with the money, and the man with the money ends up with the experience.
– Your monthly cash-burn is most certainly more than 1,700.
– Pay off your truck with you $9,000 in savings, immediately! Never pay high interest on a loan while you are loaning money to the bank at a lower interest. That is hidden cash-burn.
– 401k is not a retirement plan. It is, literally, a section number to the IRS tax code. Have you read that section? Do you understand it? Do you know who wrote it, where it got written, and why?
– Regarding your monthly profit, you ask if you should save it or invest it. Do you know who to save it? Can you outpace inflation? Do you know how to invest it? Will you be purchasing ownership in a corporation (stock)? Being financially set does not come from having monthly profit or property gain. It comes from having a command of a set of principals in your mind (from knowledge and experience), the patience and stamina to apply those principals while properly assessing the risk, and the willingness and ability to make changes along the way.
– If a candy bar costs $12,986.41 thirty years from now (our current inflation rate of 33% on a $2.50 item, by the way – not a made up number), does that 7% employer matching really matter at all?
I don’t mean to deliberately speak in vague terms, but again, no stated concrete goal, so advice is impossible. I recommend you read or listen to the entire set of Rich Dad books, in order, by Robert Kiyosaki. At least read Rich Dad Poor Dad, CashFlow Quadrant, and Who Stole My Money? Do some research online and seek to discover how the financial system really works – you may be shocked when the epiphany happens.
And finally, recognize you only have two viable financial options anyway: either stay completely debt free forever (and pay off your depreciating truck!), or leverage to the hilt (I mean millions) and declare bankruptcy when you hit bottom, then do it again and take some lessons from it.
Best of luck to you.
I forgot to mention – sending your daughter to college? You may want to rethink that one. Not sure what you’re thinking you’re going to accomplish by this, other than having your proud graduate hate you because you are a man.
Debt free and a paid off home are, in my opinion, the most important goals to move towards. You were given a house. Great advise above about having it inspected. Get repairs made and don’t put that off. Its your shelter.
Retirement: What does that mean to you?
I’m afraid the traditional definition of retirement is largely moot now. Baby-boomers are working well past their retirement ages and there’s no guarantee that social security will be enough for you to live on when you’re older. The cost of living keeps increasing and I’m somewhat dubious (admittedly likely due to a full lack of understanding) about various financial investment devices.
Since I don’t know what retirement means to you, I’ll share what it means to me. I don’t want to be working my ass off at 70. I want to be able to have my basic needs met and have the ability to relax, in relative comfort, with the option of perusing whatever my interests are at that age. To that end, my focus is on having no debt (reduce my monthly expenditures), a paid-off house that can accommodate physical limitation I may have (ranch floor-plan with no stairs), and a career path that allows me flexibility and the ability to work from home.
I have that now, at 43. If I so chose, I could turn down work that requires me to leave my house (no site inspections), reduce my workload (take fewer assignments), and just work enough to pay the bills with some additional spending money.
While I’m still able though, I work pretty hard because I want to bank the extras and keep up with later models vehicles (I never buy new).
How can you achieve this? Education and gradual restructuring of your life. I went from being in the Navy (very active work participation), to government contract work (slightly less work participation), to project management (less physical activity, no hands-on), to consulting (no physical activity unless I want to for more money, no management). I did this via education and by staying in the same general career field (IT/computers). I could work this job until I literally cannot type or speak on the phone.
If possible, look at your chosen career path and start to identify a way to move towards a means by which you can continue to work but based upon a more relaxed, ‘retirement’ status. What education could you pick up now or in the next few years that would let you work from home in the same or a related field? Could you start your own company doing what you’re currently doing? You don’t want to start from scratch. You want to build upon what you already know and tweak it for older living.
Sorry. I’m rambling. I just worry that “investments” may go away and so I try to safeguard against resting any future financial dependencies in the hands of others.
What’s the ideal image painted in your mind’s eye when you think of life at 65?
I think you should put more money into your 401(k), and stay in that house until you have a fortune.
"I saw that there comes a point, in the defeat of any man of virtue, when his own consent is needed for evil to win-and that no manner of injury done to him by others can succeed if he chooses to withhold his consent. I saw that I could put an end to your outrages by pronouncing a single word in my mind. I pronounced it. The word was ‘No.’" (Atlas Shrugged)
Everything needed to repair rental property.
I’m very interested in owning rental property in the future.
"I saw that there comes a point, in the defeat of any man of virtue, when his own consent is needed for evil to win-and that no manner of injury done to him by others can succeed if he chooses to withhold his consent. I saw that I could put an end to your outrages by pronouncing a single word in my mind. I pronounced it. The word was ‘No.’" (Atlas Shrugged)
I feel like it is my sacred duty anytime some one brings up pre-nups. They are worthless, and routinely thrown out by judges. By all means use it as a form of s~~~ test to see how she will react. Google ‘pre-nups thrown out by judges’ and be horrified.
I have mucho respect for you. Putting your ex’s child support into a fund for you child to utilize later is a class act. Well done.
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