Cunning Runt Posted March 18, 2008 Share Posted March 18, 2008 I consider myself reasonably intelligent on most things, but admittedly finances are not one of them. I'm interested in hearing practical ways that a normal family man (in my case that = a wife & three kids) with great credit and good HH income can do to use the credit crisis to our advantage. What are some things we can be doing that may not have been opportunities for us absent this crunch? Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted March 18, 2008 Share Posted March 18, 2008 Lend all yer spare cash to an investment bank. They are responsible citizens and will make sure you receive a really good return. Quote Link to comment Share on other sites More sharing options...
Cunning Runt Posted March 18, 2008 Author Share Posted March 18, 2008 Lend all yer spare cash to an investment bank. They are responsible citizens and will make sure you receive a really good return. Think I'll pass on that one. Quote Link to comment Share on other sites More sharing options...
Hugh 0ne Posted March 18, 2008 Share Posted March 18, 2008 (edited) Buy Baer Stearn stock, it's a bargain. Edited March 18, 2008 by Hugh 0ne Quote Link to comment Share on other sites More sharing options...
Atlanta Cracker Posted March 18, 2008 Share Posted March 18, 2008 Municipal Bonds are an excellent opportunity right now. May not double your money overnight but something in the 7-10% /yr for the next couple of years isn't out of the question. Quote Link to comment Share on other sites More sharing options...
MrTed46 Posted March 18, 2008 Share Posted March 18, 2008 Id put it in a mutual fund/hedge fund. Great time for good funds to be spending money in the market Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted March 18, 2008 Share Posted March 18, 2008 Id put it in a mutual fund/hedge fund. Great time for good funds to be spending money in the market 401K mutuals are in a really good position to buy a lot of shares in anticipation of a recovery. Anyone with a 401k should stand pat, IMO, as long as they're diversified enough. Quote Link to comment Share on other sites More sharing options...
i_am_the_swammi Posted March 18, 2008 Share Posted March 18, 2008 If you believe in "Buy Low, Sell High", invest in stock....this pullback is creating a terrific buying opportunity for long-term holds. Buy consumer goods companies (P&G, Coca-Cola, etc.) that produce staples...demand for products in these companies rarely wanes, but their stock prices have fallen in sync with the market. They will likely be the first to recover. You may also want to consolidate any fixed loans you may have that are currently 8% or higher into a loan that is tied to prime. I am currently sitting at 4.99% on my interest-only home equity loan, which I have at Prime -1.01%. This rate will likely stay well below 8% (most car loans/student loans/etc. are in this neighborhood or higher) for the foreseeable future (2-3 years). Quote Link to comment Share on other sites More sharing options...
bluedog Posted March 18, 2008 Share Posted March 18, 2008 I just want to say one word to you -- just one word -- "plastics." Quote Link to comment Share on other sites More sharing options...
TimC Posted March 18, 2008 Share Posted March 18, 2008 Spend it all before it becomes completely worthless. Hookers and blow. Quote Link to comment Share on other sites More sharing options...
budlitebrad Posted March 18, 2008 Share Posted March 18, 2008 Do what James Brown did and bury all your money. Quote Link to comment Share on other sites More sharing options...
Azazello1313 Posted March 18, 2008 Share Posted March 18, 2008 I consider myself reasonably intelligent on most things, but admittedly finances are not one of them. I'm interested in hearing practical ways that a normal family man (in my case that = a wife & three kids) with great credit and good HH income can do to use the credit crisis to our advantage. What are some things we can be doing that may not have been opportunities for us absent this crunch? step 1, dig a hole in the yard... seriously, i wish i knew. sorta seems like a good time to buy stock (either directly, or through mutual funds), but you never know when some other turd will hit the fan and drive things down further. still probably a good idea if you're thinking long term. but who really knows? Quote Link to comment Share on other sites More sharing options...
yo mama Posted March 18, 2008 Share Posted March 18, 2008 (edited) Do tons of research and buy a home on the cheap from a distressed seller, then become a landlord. Rents are up, prices on real estate are down. Eventually the prices will go back up, so in the long term you'll likely get the appreciation and the rental income. You obviously need to figure out how to operate the business aspects of a rental, and your profit margins are way better if you can do your own home improvements. But that's what I'd do, if I had the spare cash *and* sufficient income to cover the mortgage on the rental property even if it were empty for 5-6 months out of the year. Edited March 18, 2008 by yo mama Quote Link to comment Share on other sites More sharing options...
twiley Posted March 18, 2008 Share Posted March 18, 2008 Spend it all before it becomes completely worthless. Hookers and blow. Best info so far. Quote Link to comment Share on other sites More sharing options...
twiley Posted March 18, 2008 Share Posted March 18, 2008 Do tons of research and buy a home on the cheap from a distressed buyer, then become a landlord. Rents are up, prices on real estate are down. Eventually the prices will go back up, so in the long term you'll likely get the appreciation and the rental income. You obviously need to figure out how to operate the business aspects of a rental, and your profit margins are way better if you can do your own home improvements. But that's what I'd do, if I had the spare cash *and* sufficient income to cover the mortgage on the rental property even if it were empty for 5-6 months out of the year. In all seriousness, this is what I would do right now. Quote Link to comment Share on other sites More sharing options...
dmarc117 Posted March 18, 2008 Share Posted March 18, 2008 it actually will screw people. mortgages will be harder to get, and they should be. more money down. higher rates. cc's will have higher rates. all consumer loans will have higher rates to price in risk. Quote Link to comment Share on other sites More sharing options...
MrTed46 Posted March 18, 2008 Share Posted March 18, 2008 it actually will screw people. mortgages will be harder to get, and they should be. more money down. higher rates. cc's will have higher rates. all consumer loans will have higher rates to price in risk. I thought most CCs are close to their legal limit as is Quote Link to comment Share on other sites More sharing options...
i_am_the_swammi Posted March 18, 2008 Share Posted March 18, 2008 it actually will screw people. mortgages will be harder to get, and they should be. more money down. higher rates. cc's will have higher rates. all consumer loans will have higher rates to price in risk. more money down, but stable rates, not higher. I thought most CCs are close to their legal limit as is good info here Quote Link to comment Share on other sites More sharing options...
i_am_the_swammi Posted March 18, 2008 Share Posted March 18, 2008 You may also want to consolidate any fixed loans you may have that are currently 8% or higher into a loan that is tied to prime. I am currently sitting at 4.99% 4.24% on my interest-only home equity loan, which I have at Prime -1.01%. This rate will likely stay well below 8% (most car loans/student loans/etc. are in this neighborhood or higher) for the foreseeable future (2-3 years). fixed, per the rate cut today Quote Link to comment Share on other sites More sharing options...
Perchoutofwater Posted March 18, 2008 Share Posted March 18, 2008 Do tons of research and buy a home on the cheap from a distressed seller, then become a landlord. Rents are up, prices on real estate are down. Eventually the prices will go back up, so in the long term you'll likely get the appreciation and the rental income. You obviously need to figure out how to operate the business aspects of a rental, and your profit margins are way better if you can do your own home improvements. But that's what I'd do, if I had the spare cash *and* sufficient income to cover the mortgage on the rental property even if it were empty for 5-6 months out of the year. I have seriously considered doing this, and might still, if I can find the time. Quote Link to comment Share on other sites More sharing options...
yo mama Posted March 18, 2008 Share Posted March 18, 2008 I have seriously considered doing this, and might still, if I can find the time. FYI, it certainly helps if you have a construction company at your disposal to do heavy work. I've got a client in that situation and when his crew has down time he gets them to work on his side projects of scraping and rebuilding houses for rental or resale. Since he caps his costs on the construction work, its all about finding the right property at the right price. Its a speculative endeavor, but the times we're in make for some good speculating. Quote Link to comment Share on other sites More sharing options...
Hugh 0ne Posted March 18, 2008 Share Posted March 18, 2008 Latex? Quote Link to comment Share on other sites More sharing options...
geeteebee Posted March 18, 2008 Share Posted March 18, 2008 I have seriously considered doing this, and might still, if I can find the time. Fortunately or not, the Piney woods of East Texas are going to be tough to find many opportunities to do this. Texas has been one of the most stable real estate markets because we didn't see the run up in values nor do we allow the types of home equity loans that other states do. So if you are looking to employ this strategy, you may have to be open to looking out of state. Quote Link to comment Share on other sites More sharing options...
twiley Posted March 18, 2008 Share Posted March 18, 2008 Texas has been one of the most stable real estate markets because we didn't see the run up in values nor do we allow the types of home equity loans that other states do. True but your homebuilders are building houses out the wahzoo that no one is buying. Quote Link to comment Share on other sites More sharing options...
whomper Posted March 18, 2008 Share Posted March 18, 2008 I have no idea if this is good advice or not but I keep hearing people say buy gold Quote Link to comment Share on other sites More sharing options...
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