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Seems like a complicated way to buy a property, be it for investment purposes or otherwise.
I've simply bought, then sold when I wanted to, and the banks (when used) never knew or cared if I made a profit or not.
I remember those days..... Since 2008, banks scrutinize more heavily. I remember when they only looked at credit score. In those days, the higher the debt, the higher the credit score. And from my understanding, it's still calculated in a similar manner, they just now factor in debt-to-income ratio.

So far I have, and while not the most profitable, one lot I bought for 16K and sold for 150K within six months is definitely the winner percentage wise.
That's a nice profit. The best profit we made was on a lot we bought for $104,000 and sold it for $150,000 two years later. Right now, I'm buying cheaper lots and trying to make $6,000 - $12,000 profit, plus we now offer owner financing at 5%.
 

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In those days, the higher the debt, the higher the credit score. And from my understanding, it's still calculated in a similar manner, they just now factor in debt-to-income ratio.
I must've had a really good credit score after buying my first house, then.
Not only was the loan over the legal limit, but my monthly payments were almost exactly twice as much as I made.
 

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I must've had a really good credit score after buying my first house, then.
Not only was the loan over the legal limit, but my monthly payments were almost exactly twice as much as I made.
As long as you were able to 'manage' your debt, then yes, you probably had a higher credit score. Like I said, prior to 2008, debt-to-income wasn't really factored into your credit score. Here's a good read from experian: Consumers in Top Credit Tiers Have Top High Debt
 

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I'm just wore out and ready for a day off. Work a midnight shift tonight and then I'm off tomorrow and Wednesday. Wife wants to go look at a lake/campground area about two hours away.

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Wife wants to go look at a lake/campground area about two hours away.
Is she wanting to take the camper? Or just take a drive to check it out?
 

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I’d probably pay that much for one of those truck in good condition.
I have seen a few clapped out ones down here for 5-8k and they need a lot of work.

Its all what is important to you as a consumer right. You and I may splurge for a limited trim truck where others will not ever do that.
I may pay 12-14k for an old 12v where you might think I’m crazy.
Someone might spend 70k on a boat of which I think it’s insane but that’s what makes me tick.

All in all these things are coming into an age where the black smoke bad mentality is making these collectors of sorts. They highly sought after (hence the dumpster fires for sale and selling for 8k)

I really want to go though with it and pick it up but the house is in full Renovation mode so I’ll likely pass for now.

I will own a single cab long bed W series mechanical truck soon though


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As long as you were able to 'manage' your debt, then yes, you probably had a higher credit score.

Consumers in Top Credit Tiers Have Top High Debt
I managed it in the sense that I always overpaid by a bit, refid when it was advantageous, and throw another chunk at it when I did.
And despite a divorce which kind of cost me for everything I'd paid extra, that house was paid off in 17 years.

I don't dare read that Experian article. It'll only prove what I already suspect...my credit rating is in the toilet these days.
 

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I managed it in the sense that I always overpaid by a bit, refid when it was advantageous, and throw another chunk at it when I did.
And despite a divorce which kind of cost me for everything I'd paid extra, that house was paid off in 17 years.
Here's the average debt for a person in each age group in America. This doesn't seem so bad until you find out that the average household makes $61,937. So, if a 29 year old male has $67K of debt and he marries a 29 year old female with $67K of debt, they will go into marriage owing 134K. And according to the data, they will start out making a household income of $62K.

Under 35: $67,400
35–44: $133,100
45–54: $134,600
55–64: $108,300
65–74: $66,000
75 and up: $34,500
 

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I don't dare read that Experian article. It'll only prove what I already suspect...my credit rating is in the toilet these days.
According to Dave Ramsey, "Your credit score is not a measure of success. It’s only an indication that you have debt."
 

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Its all what is important to you as a consumer right. You and I may splurge for a limited trim truck where others will not ever do that.
I may pay 12-14k for an old 12v where you might think I’m crazy.
Someone might spend 70k on a boat of which I think it’s insane but that’s what makes me tick.
How does the saying go? Drive like a German, dress like an Italian, kiss like a Frenchman, drink like a Russian, but live like an American.
 

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I wouldn't want to owe anyone 133K. That's a lot of money wasted on interest. Been there, done that.
So I'm bucking the trend, as usual, being single and debt free.

I know that you claim you'd rather have a loan, or eight, and use your money where you get a higher return.
But I prefer getting that higher return without having any loans, even if they are interest free.

In other words, work like a dog until you have your finances in order, then kick back and see what you'd like to do next. Take on more debt, or leave well enough alone.
For now I'm leaving things as they are.
 

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Here's the average debt for a person in each age group in America. This doesn't seem so bad until you find out that the average household makes $61,937. So, if a 29 year old male has $67K of debt and he marries a 29 year old female with $67K of debt, they will go into marriage owing 134K. And according to the data, they will start out making a household income of $62K.

Under 35: $67,400
35–44: $133,100
45–54: $134,600
55–64: $108,300
65–74: $66,000
75 and up: $34,500
I’d argue those findings. Far to many variables, cultural and social economic structure, generational architectures as well as political variables for them to match into meaningful data let alone a dollar amount down to the hundreds value. Hell even family history, college debt, all of that needs to be considered.


Cite your source please


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I’d argue those findings. Far to many variables, cultural and social economic structure, generational architectures as well as political variables for them to match into meaningful data let alone a dollar amount down to the hundreds value. Hell even family history, college debt, all of that needs to be considered.
Remember, these are just averages.

Cite your source please

 

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I understand what they are saying here but they could have said it better


“The more educated you are, the more debt you have. That’s because higher education leads to higher income, and higher income leads to higher spending.”

Also it would appear mortgages are not included in these assumptions which makes it 3-5x that amount in some cases.


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“The more educated you are, the more debt you have. That’s because higher education leads to higher income, and higher income leads to higher spending.”
Hey, I know I'm stupid, but that doesn't explain my girlfriend's lack of debt. She's highly educated, not dumb, yet doesn't owe.

Also, why would higher income necessarily lead to higher spending?!? My mother always claimed that it's not big income you get rich on, it's small expenses (which is one reason I so often question Rhett's purchases).

Yes, they used a really strange way of saying it, Cody. Must've been a product of the modern educational system.
 

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I understand what they are saying here but they could have said it better

“The more educated you are, the more debt you have. That’s because higher education leads to higher income, and higher income leads to higher spending.”

Also it would appear mortgages are not included in these assumptions which makes it 3-5x that amount in some cases.
Actually, mortgages are included. You and your wife are under 35, right? So, theoretically you have $67,400 of debt and your wife has $67,400 ($134,800 total debt). But that is average. And if you were average, your household income would be $61,937.

So, lets say that you're above average and your household income is double ($123,874), theoretically your average debt would be increased to $269,600. That might make more sense if you look at it that way.
 

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So according to that i am above average! I have around 200k of "debt" but it's all equitable being that it's my house/property, that's nearly doubled in value in the last 5 years. Which is exactly why i bought where i did, current plan is when we get out of this house we should be able to use the equity to payoff the next place completely, or nearly completely, either way being fully debt free within another 5 years (which is strangely when i will be buying a new truck again sadly...) But then again, i might also be well above the average income....which i think means to many people settle for to little money. Here i am, with no college degree making more money then ALOT of people with college degrees, all because i decided to go into blue collar work and work my way into the white collar side of it, without accruing massive college debt, and doing it faster then spending 4-8 years in college. Yet so many people still claim college is necessary....no having a drive to better yourself , having a strong work ethic, and the intelligence to make wise decisions is necessary. Everything else is optional. I remember years ago (before i was with my better half) i met a gal that complained how much she had worked that week. Why last month she had gotten 5 entire hours of overtime. At the time i averaged around 75 hours a week, in 5 day. And it wasn't unheard of me to be pushing 90, with several weeks that went over 100 hours. I'm sorry, but if i work more in a week, then you do in 2-3 weeks, what does that say about your drive to put yourself in a better living situation? I don't have to do it anymore, now i'm lazy I only spend 50-60 hours a week working, which is a nice and easy pace that leads to plenty of time for relaxing....or is having excess time to do other things a sign of white privilege now?
 

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I understand what they are saying here but they could have said it better

“The more educated you are, the more debt you have. That’s because higher education leads to higher income, and higher income leads to higher spending.”
I understand what they are saying, but they shouldn't exclude the skilled worker. It should say, "The more educated and skilled you are, the more debt you have. That’s because higher education and skilled work tends to lead to higher income, and higher income oftentimes leads to higher spending.” There are educated people making $38,000 per year and there are skilled workers making $130,000 per year.
 
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