Pay it off?

Found out recently a guy I work with was paying 17% on a loan for a Dodge halfton, he also just traded it in for a new Chev. They gave him $15,000 less than he owed on the Dodge so he carried that over to the new loan. Now he owes about $75,000 on the new truck loan at around 5% interest.

It blows me away.

 

More like...

 

My truck may not have power windows, but it’s also paid for!

 

I'm still impressed that the bank loaned one of our newbies $200k plus to buy a house with basically nothing down. He has another $90k in debt. He bitches all the time about being broke.

It's 2006 all over again

 

I miss my 07, biggest reason it was paid for. Should be everyone’s first mod to their truck.

 

I’m waiting to get a good deal on nice house when the cards come crashing down.

 

You mean a foreclosure?

 

I've noticed the local market seems like it's starting to turn. I'm still looking to maybe buy, but I get the vibe it could be like trying to catch a falling knife

 

A mechanic lol

 

Prices are kind of levelling out here, we’re on a huge rise for awhile. Everything is at least double what it was 5 years ago.

 

I mean to say you mean a foreclosure LOL. You gonna buy a bank-owned property?

 

Yes lol,

 

It def is risky right now in this market, I just recently bought a foreclosure for 120k, put in 30 and sold for 199 6 weeks later. This is the market us investors have been waiting on. One's greedy fuck up is my profit.

I think 2020 will show even more homes like this.

 

Yes , pay it off. If you don’t need to be in debt, especially for a depreciating asset like a vehicle, then don’t be. And ~$40k is still a very healthy rainy day fund. Financially, you don’t want two things if the big igloo comes: Zero savings, and /or high debt.

 

There's basically nothing for foreclosures in my market.

Just be careful I know someone that got bent over hard flipping houses in CA. In the end they go stuck with stuff that didn't sell because the market had too many chairs and they ended up renting them out. They lost their ass. A number of people forgot how cruel the housing bust was, but we'll do it again

 

Thanks for looking out brother. I know a couple people who have been burned as well. It's always a little gamble but hopefully can always choose wisely. Most of my decisions are based primarily on area/region vs the actual home.