Itās only been 6 months of house-hacking and Iāve gotten empty unknowledgeable legal threats from two tenants. I mean they both submitted in the end, so againā¦empty.
I may want to think very hard about the kind of people I let into my houseā¦like be unapologetically discriminatoryā¦.judge everything. It all tells a story in the end. Iām definitely going to make my lease more aggressive.
Iām starting to understand why leases can be so aggressive. Iāve also been educating myself on commercial real estate. Apparently most loan terms are 10 years or less than when you have to pay back the principal, and you got your balloon payment to worry about. At least your payments are based off of an amortization period which is longer than the time you have to have all of the principal paid.
Could you imagine acquiring a loan with a 25 million principal and paying that within 10 years? And at the end of year 10 you have to shell out a substantial amount of cash for your balloon payment.
I canātā¦. itās no wonder they have all this financial modeling crap with commercial and weird finance terms.
I work in banking and this is partially accurate. Your term is shorter than the amortization, but nobody is shelling out at the end of the 10 year term (usually even less, I often see 5). 99% of the time they refinance the loan.
Say you buy a building worth 100k in 2025 with an 80k loan. In 2035 your 10 year term ends. Your balance on the loan is 50k (making up numbers). Building is worth 120k now. You can either refinance the existing balance or some banks will let you do an equity recapture. Banks might lend 80% of the building value, which is 96k. This would give you 46k cash and 50k repays the existing loan. This is a big way investors perpetually refinance debt to fund future investments, and a way to recognize value before selling.
Long winded but donāt generally see banking stuff on T Nation, haha.
I went indoor go-karting and then bowling last night with a group of friends.
Iām not sure if Iāll go karting again. I drive too much like a model citizen. Crazy for a guy that grew up in New Jersey and moved to the DMV.
Well I was never in last place at least, youāre scored based off of the speed in which you complete your 12 laps.
It was fun to catchup on how their jobs were going too since all work in the same industry.
I threw some dates to them for late September, so Iāll see em next month.
Again, I want to get out of the house to do something fun rather than 1-2 times a month⦠even if I go solo. Itās all a matter of planning ahead because Iām always on auto-pilot.