Today I start 'looking for the money' for my house deal.. fingers crossed for 'not crazy rates'.. 6-8 would be IDEAL!! Prayers..
I am also going to start investing some of my cash reserves vs parking them at Barclays (still a good choice but only pays .09% )but I have only 4 years left of my 5 year goal and need some extra 'umph' to reach my $300k cash goal. Any cash I have now will likely be consumed this month with the house downpayment/fees or whatever..so will again be starting from almost zero.
I have $64k parked at Barclays. (some of which is my security deposits/tax escrow so not reflected in networth).. the rest are various emergency funds and savings.
I think I can take $10k of the security deposit escrow and invest it.. also will start investing with my ROTH IRA.. everything else will remain parked
Investing strategy is the Dogs of the Dow approach.. http://dogsofthedow.com.. hoping for 20% and up returns!
Really excited.. and once the house works out will start investing more but now need to conserve as much cash as I can for that big (HUGE) unknown.
Essentially if this approach works and I can get an average of 20% returns.. once I have $150k in the market I am just 4 years off from my $300k.. so need to get cracking on saving (of course once the house clarifies). I am also 10 years away from $929k without further contributions once I have $150k working for me.
What a wild crazy year it has been! I know some of you think my methods are a little crazy and certainly risky . but I set my goal and AM going to reach it.
Archive for December, 2013
The BANK ACCEPTED at $297,500. House should firesale at $380k and sell thru a realtor at $410k realistically.
Now I have to FIND THE MONEY.
$297500 is 65% of $419k. Most hard money lenders want 65% loan to value.
Will start making calls next week..It would be awesome if I could get 6-6.5% but I can do up to 8%. if I get 6.5% I will try to keep the loan long term and pay off early.If I get over that interest rate I have to refinance and have to wait 1.5-2 years to refinance but it will be an FHA loan.
Why so willing to take higher rates long term??. I would have to go to an FHA loan on a refinance anyway and wiht FHA mortgage premium I am over what a 7% payment would be anyway.
Prayers for creative financing solutions to appear.
For those following me. the BANK called to ask me about my offer??!! WOW.. I have never had the bank call. This is my offer to 'settle' on my house that is in foreclosure. Sortof buying the house back from the bank (and also taking my ex off it)
I talked to a supervisor this am and had a good talk. he said he would personally submit my offer to 'some committee' and asked me to produce comps and a letter explaining how I came up w the offer. He said he wanted to work this out so it is win win and we are not like in a tennis match batting the ball back and forth. Sounded positive and REASONABLE.. that is all I want.
I had my property manager (also a realtor )pull some awesome low comps and have my accountant whipping something up that shows the banks holding costs if they do not sell to me.. etc
I will submit all proof tommorrow and am praying for good news next week.
Remember I do not have funds yet so if the offer is accepted (maybe WHEN it is accepted). I still need to find funds but for some reason am feeling more positivve with that.
I want to FEEL SETTLED and RELAX in my house.
Here are my goals. I know I do not have year end numbers yet. but an anticipating ending 2013 around $145k
Networth Goal for 12/2014- $275,000. This is $135,000 MORE than where I expect to end up this year
$135k is comprised of:
$72,031 debt reduction in homes/3 units w normal payments
$24,000 additional misc savings
$8,800 additional 401k
$3,000 additional ROTH IRA
$27,169 (unknown sources)
Unknowns or mitigating factors
1. unknown if my house will work out or not (buy it from bank)**HUGE UNKNOWN**.. effects everything!
2. current work contract only goes through 6/14
OTHER MISC GOALS
1. fully fund my emergency account by 6/14-$16,000 total
2. $7,500 worth of improvements (vs repairs) to 6 homes
I have decided to hang on to the car until I hear on the short payoff w my house. I am now at $285k. hoping to hear Friday or Monday (fingers and toes crossed) if the bank accepts the offer. If not,. I am hoping for a counter.. Just want to STABILIZE!!
I am letting go of the 2 flat .. it is in foreclosure (I have never mentioned this one before.. was owned by me and ex.. house worth less than what is owed and rents will not pay for it) and I was having an attorney delay the foreclosure. I decided to let it go.. partly because the city wants me to install an egress window ($2k) and partly because I am just sortof 'done' and want to move on and partly because if my house works out. I can only refinance out of whatever hard money loan I get a year AFTER my last foreclosure (2 flat) so need to start that clock ticking. Letting it go means discontinueing attorney involvement.. telling city I am not doing the egress window (giving renter 60 days + to move out) and giving bank the deed back (est 4-6 months process dependent on if I get My house worked out.I can speed it up then if need be)
Started contributing to the 401k today.. 8% scary but only $250 per paychedck reduction (still seems HUGE). I can always change it. Work gives 3%
Reading the 'automatic millionaire' and doing the 'latte challenge".. categorizing all those small things you buy.I spend at least $1.08 a day for diet soda at McDonalds every day and at least $3 for lunch every day (except weekends). need to get food and soda in the house or eliminate that or reduce my costs that is crazy and not super healthy.
upped monthly contribution to emergency fund to $46 a month
and closing my not for profit down (transferring it to another not for profit). VERY sad. mixed feelings but definately the thing to do.
All the updates for right now.
Finishing Christmas today/tomorrow..sending stuff.. buying stuff etc.. wrapping..
I have two cars ..2011 Hyundai Genesis 4.6 (26k miles), 2008 Chevy Tahoe (85k miles)..Both have full warranties up to 100k+ miles.
Tahoe is paid off.
Genesis I owe $18786 which I am paying off at 3.15 interest at $1008 a month (actual payment due is half that. I am making doublepayments..payoff 7/15)
KBB says Genesis is worth $25600 if I sell it myself. instant offer (same website) gave me an offer of $18,900.
I have two cars because one was bought in part for the snow (Tahoe) and because I ran a not for profit which I am closing next month (Tahoe was paid for in part by the not for profit).. I need the Tahoe (4x4) but the Genesis gets better gas mileage.
So.. been kicking myself for a while here having this big expensive non 4 x 4 car.. and these loan payments are high... wanting out of them. I have mixed feelings w selling the Genesis as the Tahoe is older and the Genesis gets so much better gas mileage. I had to use the 4x4 function last week due to snow though. I have been tossing around selling the Genesis for a while and have been hanging out to it in my indecision.
I owe $18k on the Genesis. if the house offer goes through I will have more incentive to let it go .. esp if I need cash... jusst wish I did not owe so much on the Genesis!
I plan to keep both long term and keep them well maintained.
using this somewhat as a diary too (hoping to read back on it someday and laugh).
the 'settlement/short payoff' for my house was DECLINED..No counter but they apparently do not always counter offers.
Offer $260k.. house worth at a firesale $380k and I want to live here.
Reoffered $285k today.. fingers crossed.
I will figure out a loan/money ... if it can work out once offer is accepted.. just need to get a number.
I actually got this news yesterday but was very upset. Decline was a HUGE surprise. i was so confident I was nearing the end.. I was super down.
After several years of hell.. 4-5?? I just want things to settle down and calm down and would LOVE To settle into my house..
Fingers crossed and prayers for a good response next week.
I DID ask them to counter if the offer was not sufficient.
Part of why they may have refused was because they upped the value in their system to $380 vs $350
House rented.. $25 less rent but uppped the utility allowance so made up for it in full and have room to increase rents every year. Looks long term (hopeful look).. I am now putting together a repair/proactive maintenance plan across the 6 homes so I can budget it in. Only 52 months to go to fully paid off.. just hanging in there.
Reading 'the power of intent' and will post here more.... but has to do with directing your thought to what you want vs what you have.. interesting and I think true..
I shoudl hear on the house this week (my own.. my offer w the bank)..
Gettting excited for the new year
closing my not for profit down too. which is where MOST of my stress comes from.. looking to close/turn over to 2 other not for profits in next 2-3 weeks.. sad.. exciting . relieving.
We think we have a good renter for the house (remember the insane-foundation-work house).. fingers crossed.. will finalize and likely know tomorrow. they live somewhre else now and have asked to move in Jan 1 . We are saying we have someone else that wants to move in now (which we do) but she is w Section 8 and will likely take a few days etc and will pay less rent and rent is fixed at the low rate for a few years and we have these insane 'inspections' every year so better to take this house out of s8.. Goal was to take 3 of the 6 out of Section 8 anyway. . Anyway I need RENT NOW...
3 units calming down. no new news.. just large expenses last month w tree falling
Put $25 savings from car insurance switch to Allstate into an auto withdrawal into my emergency savings
No news on my house yet (trying to see if bank will take $260k) should know late next week then havve to get money. Zillow says it is worth $433k..PRAYERS
Also I have my security deposits and tax escrow in a essentially zero interest account right now. I am switching over $10k of that into Barclays (.9 interest) to make some money off that large amount.
I do NOT show that on the left as it is technically just money I am holding for taxes or renters... not mine.
Hoping to have SUPER AWESOME news soon on the renter and my own house.
take care guys. Onward!