Why Debt is Wonderful ! - 01/30/07 08:39 PM
As I write this, I'm struck with an accute awareness of my audience.  I already know that most of you are reading this blog looking to prove, once and for all, that I am, in fact, nuts.  I'll concede that point streight away, so let there be no more discussion of my sanity.  Instead, let's turn our thoughts to the capitalist market in which we do business.  Our whole lives we've been taught by our parents and others that debt is bad...very bad.  And, to an extent, they were right.  We've also been taught that compound interest is good...very good.  And, … (2 comments)

Do You Deserve Your Trade? - 01/28/07 09:17 AM
As I was reading a blog (on a different site) recently, I made a comment that we should all keep in mind.  Ryan Dehler wrote a wonderfully inquisitive blog that questioned why we even teach others to do what we do, as it, more or less, creates competition for us.  Colin wrote a thorough and well thought out response.  I wrote this:In my case, I help others succeed, even if they become my competition, because my INTEGRITY and CHARACTER depend on it.  If I'm more concerned with making money than I am with helping people then I don't deserve the money I'm … (1 comments)

How To Borrow Money and Pay NO INTEREST !!!....Seriously. - 01/26/07 11:51 PM
Ok, everyone, I'm gonna let you in on an amazing secret I recently discovered.  It's more or less a loop hole in the way banks lend money.  I know it sounds like I'm giving out fairy dust here, but I swear this makes sense.  Here's how it works. If you currently have a HELOC (home equity line of credit) then this will make a little more sense to you.  In order to do this you will need to have a heloc that you can use as an MMA (money merge account).Let's say you have a heloc for $10,000 (many of you may have … (13 comments)

1% Loans and what they mean to buyers/investors - 01/24/07 12:22 PM
As many of you may have seen, there has been a rash of ads for 1% home loans lately.  I just checked out one site in particular.  It's what we call an Option Arm.  They've got a really bad reputation, but aren't all that bad.  It just depends on what sort of investor you are.  Here's the skinny.If you get an Option Arm mortgage at 6% on a $200,000 home, you'll pay $1200/month, at 30 yrs.  If you get the same loan and just want to pay the monthly interest payment, and not pay down the principal, then you can pay … (11 comments)

Investors...You NEED Multiple LLCs - 01/23/07 11:10 PM
Hey, I was recently leaving a comment on a user's blog and realized that the information could be good for everyone.  So here it is."I recommend you start an LLC for EACH of your investment properties.  For example, you would have one called "123 Main St. LLC".  And another called "8910 Washington Ave. LLC".  That way not only can litigators not go after your personal property, but they cannot even go after your other properties.  When you've got a few properties and troublesome renters, contractors or neighbors, you'll be glad you did."  I've done loans for investors who do this and they … (12 comments)

Different Mortgages for Different Buyers/Investors - 01/23/07 11:08 PM
I'm gonna try to make this quick, as it seems that spending all day reading blogs might not be the best use of our collective time.  But, I think this is important to know.  Fellow investors, especially those of you who are "buy and hold" investors, let me give you a quick tip.  1) If you live in a city where the market is doing well and you're likely to make between 5%-15% a year in appreciation (maybe more depending on where you live) then your primary equity building tool will be appreciation, not paying the mortgage down.  2) If your property is in … (1 comments)

HB4050....Don't let it happen to you. - 01/13/07 01:12 PM
  HB4050 is the short term for House Bill 4050, which was passed this past year in Illinois. The long and the short of it is this. In order to cut down on predatory lending and foreclosures, the state house thought that it would be a good idea to locate the 10 most victimized zip codes in the state and change the mortgage laws there. As it turns out, all of the zip codes are on the South side of Chicago, which is almost entirely low income black and latino population. The law requires lenders to pay for classes that the borrower … (2 comments)

My True Story of Predetory Lending - 01/11/07 08:07 AM
This is a true story about me, Abe, and my first buying experience.  Hopefully there will be someone on here that will benefit from this first-hand account of a predatory lender.  
Back in 2003, at the age of 24, I decided to buy my own place.  I had been looking online at the market in Chicago and was convinced that renting was about the same as throwing money away.  For 6 months I lived out of my car.  I had a small backpack with all of my clothes in it and I slept on the floors and couches of different friends in … (2 comments)

Renting vs. Buying....version 2.0 - 01/08/07 10:52 AM
So, I've been getting into real estate investing these last few years and I've been blessed to have some incredibly wise men and women surround me in the process. One thing I've learned is the value of owning property of any sort. It's seriously a stewarship decision for me. I'd hate to be given a gift and not make the most of it. This is how I think of it. $800/month for rent = $9,600/yrIf you buy a $110,000 home at 6.5% interest, your monthly payment is $795/month (assuming you're escrowing $100/month for property tax). Of that $795, about $650 is … (0 comments)

Renting vs. Buying - 01/08/07 09:39 AM
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Abe Loper

Lynchburg, VA

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Abe Loper

Address: Lynchburg, VA, 24504

Cell Phone: (312) 933-4159

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