If you had $1,000 in a savings account and $1,000 in credit card debt, the math is pretty simple: you have a net worth of $0. However, if you were earning 1% on your savings and were paying 21% interest on your credit card, at the end of the year, you'd earn $10 but owe $210, so you'd end up with a net worth of negative $200. From a purely-mathematical perspective, you'd be better off paying down the debt with the savings to maintain your net worth rather than lose ground every year in interest. The guy who pays it down is clearly the better one at math, and the guy who doesn't will get himself into worse and worse financial condition every year, probably never understanding why. Overly-simplified, that's our problem with the seven-family building. We had some cash and a line of credit, and we used the cash to pay down the line of credit until we were ready to buy the building. Now that we're ready, our bank doesn't want us to use that line of credit as a down payment for the property that we're going to purchase with the loan they were otherwise prepared to give us. Had we held onto the cash and not paid their line of credit down, they'd have no problem with us using that cash as a down payment, even though the end result would be the same debt, but we'd be paying interest on the line of credit in the interim. Silly? If the property upon which we have the line of credit was a good investment and was sufficient collateral for the line of credit, and if the property we're trying to buy is a good investment and is of sufficient collateral for the new mortgage, what's the problem? They'd apparently prefer to lend money to the guy who is worse at math. To fund the two three-family buildings, we'd be happy to get a direct loan, but after all the problems we've had with the new lending guidelines, we've instead tried to use equity we have on another property. We own another small building outright and tried to get a loan against it. They asked us what we thought it was worth, and we took an intentionally-over-inflated guess, figuring that if we guessed low, they'd never give us more money but if we guessed high, we could always borrow less. Expectedly, the appraisal came back low, but rather than make a counter-offer, they declined our application. I asked if we could be reconsidered at a lower amount, and they said they won't consider another loan application on the same property until six months have passed. I got a free appraisal (at their expense) and a refund of my application fee, and now I have to apply for a loan elsewhere.
Download Tips
No doubt, information is the highway to greatness in life. In a bide to obtain such information one is forced to get it whenever it appears online. One is please and satisfy with the rate of such information transfer if it is very fast. But the reverse is case when the data transfer ( i.e. bits or bytes per second ) is very slow. One is bound to waste time to be used for other demanding issues on a slow data transfer. But you can get out of this mess and speed up the rate of data transfer of your computer by applying the tips in this article.
Change or upgrade your connection. Your internet service provider render service according to your subscription. There is a limit speed associated with each connection. So, go for subscription that meet up with your need. If you are using dial-up connection, make use of Broadband connection for faster speed output. The broadband has Direct Service Line ( DSL) or a cable connection to be chosen for maximum performance.
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