People refuse to pay their rent

originally posted by: JAGStorm
a reply to: CriticalStinker

Unfortunately I do as well. I've seen a huge uptick in credit line offers in the past month. My credit union has also reached out to me by phone asking if I needed any credit lines, and they've sent bogus literature explaining interest rates are at an all time low, and now is the time to lock in a mortgage, lol.

I have pretty high credit limits, and noticed they have all been raised. It's amusing. These companies are salivating at that fact that some will use the credit because they have to, others will just do it even if they don't. Interest rates have only one way to go, and that is up! Not touching it with a ten foot pole!

Anyone that is smart will pay any debts they have now to the best of their ability.

Lines of credit should only be used when you don't need it, and always if you can. Credit is not for emergencies. Always use other peoples money. The more of other peoples money you use, the more other people will give you money. If you use other peoples money in an emergency, you will default, and people won't give you their money anymore.

When interest rates are low, that's when you lock in big dollar assets. You're absolutely right, they only have one way to go, up -- higher interest rate loans are worse loans. While interest rates are in the basement is the very best time to make new acquisitions, provided you have the financial security to not default on it.

With your fundamental lack of knowledge on how credit works -- I'm truly surprised you have high limits. Credit is for non-broke people. Credit used by broke people is dangerous for that broke persons financial future. While using credit when you have money, lets you keep your money. As long as you earn more then the loans are worth, you won't spend an effective penny acquiring new assets.

The very idea of "use this in an emergency" is the reason why we have so much debt. You also shouldn't just run up the tab either, because you can buy more than you can afford; the only proper use of a credit line is responsibly. Used responsibly, you have a clear steady upward financial trajectory.

Financial knowledge is lacking, in fact -- all important knowledge is lacking, while every Joe blow in Trader Joe's knows every sport statistic for the last 20 years.

A down market is a buyers market. An upmarket is a barrier to entry. You must wait for times like this to invest, and to liquidate before the next one of these happens -- and if you don't, then you must just hold onto your investments, instead of devesting, until their value is restored. You can only lose if their value is never restored; which doesn't happen on safe investments. I.E. Bluechip stocks. This is why we perform risk assessment before investing. Risk assessment isn't 100% bullet proof, which is also why having diverse investment portfolios is important. If you lose some, you don't lose it all, if you win some, you make up for what you lost and then some. If all of your money is in one place and you lose, you lose all of your money.

All of this is very simple.

originally posted by: eletheia

originally posted by: Assessor
I am a 30 year retired military enlisted veteran. I started investing $400 a month back in 1994. That was a butt load of money for an E-5 back then. Never wavered, and upped the amount when promoted, and went without for many years while others had the latest in gadgets and cars. Hell, we were a one car family until I was 42 years old. I have have since taken some of my investment money and put it down on 3 separate rental properties. To scrimp and save all those years to have a renter tell me sorry but they aren’t paying isn’t going to end well.

Yea been there done that under different circumstances...... blood, sweat,

and tears, to come out the other end with a degree of success only to have the

entitled who never gave a thought about the future, thinking that you had it

easy and were "born with a silver spoon in your mouth!!"

Yeah....it is really aggravating. And when we try to explain this to a younger crowd that wants everything now you get the “ok boomer” eye roll.

People refuse to pay their rent

I just watched someone drop $850,000 on 500 acres where I live.

I had been watching the property closely.

I thought during what's been going how the hell can someone afford to do that during a pandemic/non pandemic.

So I guess the money is out there.

Anyone here in the know of the current US real estate market? Are home sales going to stall out? Are more homes going to come on the market? Interest rates seem to be very low, like upper 2% low 3% for a 30 year fixed mortgage. Buyers market yet or hold off how long?

a reply to: JAGStorm

This is one of the risks associated with investing in rental properties. If they were not comfortable with the risk or not financially prepared they should not take the risk.

It’s investors who drive the price of houses up so the lower and middle classes are forced to rent and not buy. If people stopped investing in rental properties the prices would naturally come down affording more people the opportunity to buy at lower costs. Why should I feel bad for them? Did they feel bad when they invested in the properties and inflated the value?

They can always stop paying the mortgage and put the house up for sale. No one is forcing anyone to invest in rental properties.

I have no sympathy for those who can afford to own more than one home when the renter runs out of money or chooses food over money. Or even in this case the fear of losing the ability to feed oneself when unemployment or the government cheese runs out.

a reply to: 38181

Its all too crazy to think of buying anything at the moment. As for paying rent or a mortgage, you have to have steady money coming in to do that. If the people of the whole country were one person , they are essentially broke. As means of gaining an income have been closed down. If it continues then at some stage houses will be sold by the Banks for cents in the dollar as they still need to be maintained will they want a depreciating asset on their books?

a reply to: SRPrime

With your fundamental lack of knowledge on how credit works -- I'm truly surprised you have high limits. Credit is for non-broke people. Credit used by broke people is dangerous for that broke persons financial future. While using credit when you have money, lets you keep your money. As long as you earn more then the loans are worth, you won't spend an effective penny acquiring new assets.

Dude, I worked for one of the largest bank in our country... to help them save & make money.
So to say I don't have a knowledge of "how credit works" is laughable.

Maybe this is novel to you, but not everyone wants to
"acquire new assets"

a reply to: Isurrender73

I actually agree with a lot of what you said, but I do feel sorry for legit landlords that are good to their tenants and getting screwed.

They can always stop paying the mortgage and put the house up for sale. No one is forcing anyone to invest in rental properties.

That is exactly what is going to happen, and then renters will deal with corporate housing. I don't think housing prices will fall. What I see happening is land will be acquired by corporations and turning into rentals. It's already happening in some areas.

a reply to: JAGStorm

You are correct about the corporate housing situation. The rich get richer in every crisis. I don’t know what the answer is but something needs to be done before the 1% literally own everything.

a reply to: JAGStorm

What we're witnessing as of now, is a Power struggle amongst the 'giants'. Change is coming.

originally posted by: TGunner
a reply to: JAGStorm

What we're witnessing as of now, is a Power struggle amongst the 'giants'. Change is coming.

I feel it too.

After the recent bailout you now have the federal government paying unemployment benefits to people along with the states. I know of many people in my state who are actually getting upwards of $900 a week which is more than they made weekly at there job. I know of a few people who can go back to work but have decided not to because they are getting more money on unemployment than from working. So, I feel that the money to pay your rent is available to people and if you don't pay your rent well your going to be evicted just like any other regular American. Between the stimulus money and the unemployment benefits being paid to people there's no excuse not to be paying for your rent and/or mortgage.

My coworker owns some duplex homes for renting. He says none of them are paying their rent during this "pandemic". But he still has to make the mortgage loan payments to the bank. He is pretty sure they won't be able to pay 3 or 4 months back rent to catch up, so he stands to lose 6 months rent by the time they are evicted. He may end up having to sell them to make up the loss. And he's just a regular guy trying to get ahead, not a millionaire slum lord.

I suspect this same scenario is playing out all over the USA.

originally posted by: Isurrender73

You are correct about the corporate housing situation. The rich get richer in every crisis. I don’t know what the answer is but something needs to be done before the 1% literally own everything.

Perhaps its time to get priorities right as in whose work is more valuable......

The doctor, the paramedic, the nurse and associated workers

OR

The footballer, the singer, the celebrity or the new roll of 'influencer' ?