In article ,
Speednxs wrote:
(D. Gerasimatos) wrote in message ...
In article ,
Al Klein wrote:
On Tue, 29 Jul 2003 17:07:20 +0000 (UTC),
(D. Gerasimatos) posted in misc.invest.real-estate:
Right now they are giving money away. I can get a massive loan at x% and
easily find a money market that pays x+%. That's free money.
This is quite exciting. Where are these money market (FDIC insured, I
hope) accounts paying higher than mortgage interest rates?
I've got equity that I could put to work and taxable income isn't a
big problem for me (lot's of lossses and deductions and new mortgages
will mean even more interest deductions).
Not FDIC insured, no. I'm not going to do all of your work for you, bud.
Here are some hints:
1. I never mentioned mortgage interest rates, although that is one
possibility if you are willing to take a nonconventional loan (i.e. not
a 15/30 year fixed).
2. My money market returned 4.72% last year and I have some high-grade (AAA)
bonds that did 8.74% last year.
3. Unsecured lines of credit can be had for as low as 2.9% FIXED. If you
borrow that money and invest it even only in a market index I practically
guarantee you that you will come out ahead over time. You can borrow
$100,000 for $240/month. When the markets eventually rebound it will be
nice to have $100,000 borrowed at 2.9%. If they never rebound (or it takes
many, many years) you will still have the capital to pay the loan back.
Just be patient.
Dimitri