1,000 Miles To Go
Read Millionaire Fastlane
I've Read UNSCRIPTED
- Jul 30, 2018
If you’re taking out interest only, variable rate, ballon loans then yeah you’re taking on massive risk.I was in a terrible downturn in Los Angeles around 1990. The RE market crashed hard. It took most of that decade to recover. The 1980s had been all about OPM (using other people's money). Almost all of my friends in the RE business ended up in bankruptcy court with their hats in the hands.
Now, I'm part of the counter culture. I'm working a personal program to getting debt-free -- even my RE mortgages paid off. I've tried to talk to some of the other investors around me and they think I'm crazy. But, I remember the 1990 recession, and all of that pain I watched then. And, before that in 1980, the interest rate went from 12% to 21% just about overnight. There's nothing sure about the financial markets. I just know that equity and cash are king!
Fixed rate 30 year mortgages are a MUCH safer way to leverage your money. Better than cash imo.
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