Debt shackles you to the people you owe. Debt reduction removes those shackles and frees up your cash flow. What does being upside-down on a loan mean? Being upside-down on a loan means that you owe more on your asset than it’s worth. This means that even if you sell the asset that you owe … Read more
Photo by Tierra Mallorca on Unsplash The question of whether real estate is an asset or a liability is not a new one. Back in 2009, Harlan Landes, at the time a.k.a. Flexo, took issue with Robert Kiyosaki‘s definitions of asset and liability: An asset is something that puts money in my pocket. A liability … Read more
One of my friends in college purportedly had racked up dozens of parking tickets courtesy of the campus police. He graduated, so either he took care of them before he left, or he never had to worry about them in the first place. A woman in Pennsylvania, however, lost her home over an amount less … Read more
Lots of homeowners are behind on their mortgages. The recent melee began a few years ago, as the follow-up to a period of high house prices and the issuance of many back-loaded loans with questionable underwriting to people who had marginal means to repay. The percentage of mortgage holders in the US who are at … Read more
Housing is right up there with groceries as a major household budget item for many families — not just in the raw amount of money shelled out, but also in importance. Food and shelter and all that. Since housing involves a commitment (either a lease or a mortgage) there’s less flexibility in adjusting housing costs … Read more
If you want to sell something and it isn’t moving fast enough for your tastes, what do you do? Lower the price, of course! Give it away, if you have to. If you’re trying to sell real estate, though, it’s usually not realistic to give it away, but you definitely can lower the price. I’ve … Read more
Cash is king. Cash is capital, in small, unmarked bills. Almost nothing speaks louder at the negotiating table. It says: “I have the means, right now, to buy from you.” Because it speaks so loudly, there are great deals to be had if you can pay cash. Here are a few: Real estate. The somewhat … Read more
Two and a half years ago, we moved into our new house. It was so much of what we wanted. It was close to where I work. It had plenty of space inside, with an open floor plan. In a county that rests on many an old cowpaddy, our plot, and our subdivision, are flat: … Read more