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Originally Posted by SBR_John
Neteller scares me. If I was the govt. and I wanted to go after gaming, I may go after the #1 transfer company. Could the govt hurt Neteller? YES. And they could hurt them with just a few words. A couple of staments that they are going after them and those shares could be in trouble. Now they may never...but too risky.
JJ I dont know squat about real estate. What happens if the tennant doesn't pay the rent? I like to lose money the old fashion way: Buy high and sell low. :eek:
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Renting is not the only way to make money in real estate. In fact, I believe it to be the worst.
Say you had a decent amount of cash. You could buy a lower-end home, fix it up reasonably (dont go overboard).
Depending on where you live, you could be in this house for under $150,000. Now you take that house and lease-option it and carry the note. The quality of tennant you will have will be much better because they are working on eventually buying this house. When you get to the 'carry the note' part you are really in good shape now. You get a decent down payment, and then monthly payments + interest for 30 years. You dont have the hassles of a rental anymore either because they own the house. If something goes wrong, they fix it themselves because it is their house.
Lets think about the numbers.
You want to sell the house for $200,000
10% down is $20,000 in your pocket already.
6% interest is $1,000/mo interst only payment, + whatever principle (say $300)
So on your investment of around $100,000 (after their downpayment and first year mortgage) you are making aroung $15,000/yr for 30 years. 15% on your money for 30 years isnt too bad.
What happens if they stop paying? You keep the $20,000 down payment, all other payments they have made, forclose on the house, and get to do it all over again for free!
Cant lose in real estate.