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Started By
Message
re: If you received $500K, how would you invest it?
Posted on 5/13/14 at 10:59 pm to wpsnickers
Posted on 5/13/14 at 10:59 pm to wpsnickers
Read All About Asset Allocation by Richard Ferri. The book espouses a strategy that maximizes annual gain while minimizing standard deviation. Very sound.
Invest $100k up front in your preferred allocation after reading that book. Automatically invest $2k/month over the next 4 years for some time diversification if you think the market is risky. Invest more upfront and less over time if you think the market is currently a bargain.
Rebalance annually or more often if you'd like.
Done.
Invest $100k up front in your preferred allocation after reading that book. Automatically invest $2k/month over the next 4 years for some time diversification if you think the market is risky. Invest more upfront and less over time if you think the market is currently a bargain.
Rebalance annually or more often if you'd like.
Done.
1
Posted on 5/14/14 at 11:01 am to austiger
what kind of personal guarantee would you have to make in order to get a 1.5m loan for a commercial property? or would you just be allowed to use the property as collateral with no personal guarantees.
Posted on 5/14/14 at 11:59 am to oldschoolgreats
Depends on how flush your bank thinks you are
Posted on 5/14/14 at 3:19 pm to I B Freeman
quote:
basic warehouse rents for $4-$6 a foot and can be bought for $30-$50 a foot
Damn, those numbers are about double that in Austin.
Posted on 5/14/14 at 5:35 pm to ATXTiger1
quote:
what kind of personal guarantee would you have to make in order to get a 1.5m loan for a commercial property? or would you just be allowed to use the property as collateral with no personal guarantees.
You'd have to do a personal guarantee. No way a bank would underwrite a 66% LTV without a personal guarantee.
Posted on 5/14/14 at 7:43 pm to trillhog
No major bank would do it.
Maybe some mom and pop bank with a handshake, but 66% LTV is way too high without a personal guarantee at that deal size.
Clarification: it is too small.
Maybe some mom and pop bank with a handshake, but 66% LTV is way too high without a personal guarantee at that deal size.
Clarification: it is too small.
This post was edited on 5/14/14 at 7:44 pm
Posted on 5/14/14 at 7:45 pm to wpsnickers
Trailer Park
Posted on 5/14/14 at 8:56 pm to tiger94gop
quote:
Not true
What bank? If there's a financial institution that is crazy enough to do it, that interest rate would be at least 10%, and you would generate a substandard IRR for the project.
Posted on 5/14/14 at 10:13 pm to wpsnickers
I can get sub 5 all day with 20% down 20 year , 3.5% with a 3 year right now , maybe not Bank of America but plenty of larger state banks.
And there nothing wrong with mom and pop banks they loan money and give you credit for your next project, and on top of that you get fun trips!
I would also like to add dealing with majors sucks anything goes bad they sell your shite! No questions asked. I'd never do a loan with a major unless it was 5 mil plus
And there nothing wrong with mom and pop banks they loan money and give you credit for your next project, and on top of that you get fun trips!
I would also like to add dealing with majors sucks anything goes bad they sell your shite! No questions asked. I'd never do a loan with a major unless it was 5 mil plus
This post was edited on 5/14/14 at 10:18 pm
Posted on 5/14/14 at 11:54 pm to trillhog
1) what is sub 5?
2) what is a "larger state bank"? 5 branches is mom and pop.
3) what mad men are accepting 3 year term on a 20 year am. You clearly aren't that comfortable with the loan.
4) Mom and pop places are more expensive and usually lack the sophistication and thoughtfulness in deal structure that the big banks have.
5) fun trips?
6) I have never seen a single loan we originated sold off.
I can see your point on the 5 mill threshold, but most majors don't want to deal with anything smaller than 3, unless it's a lead in deal. So the feelings are mutual.
Getting in bed with small banks is a pain in the arse if you outgrow them later.
2) what is a "larger state bank"? 5 branches is mom and pop.
3) what mad men are accepting 3 year term on a 20 year am. You clearly aren't that comfortable with the loan.
4) Mom and pop places are more expensive and usually lack the sophistication and thoughtfulness in deal structure that the big banks have.
5) fun trips?
6) I have never seen a single loan we originated sold off.
I can see your point on the 5 mill threshold, but most majors don't want to deal with anything smaller than 3, unless it's a lead in deal. So the feelings are mutual.
Getting in bed with small banks is a pain in the arse if you outgrow them later.
Posted on 5/15/14 at 12:03 am to TheHiddenFlask
quote:
I can get sub 5 all day with 20% down 20 year , 3.5% with a 3 year right now , maybe not Bank of America but plenty of larger state banks.
Without a personal guaranty on the loan and a deposit relationship with the bank? If so that is absolutely nuts. Sure you're a swell guy, but that's just horrible underwriting on their behalf.
Posted on 5/15/14 at 12:49 am to wpsnickers
I'd probably just pocket it for a few months while i find out where my field assignment at work is going to be. Then, i'll build my primary permanent residence for straight cash. Leftovers will go into index funds and municipal bonds
Posted on 5/15/14 at 8:55 am to TheHiddenFlask
quote:
1) what is sub 5?
2) what is a "larger state bank"? 5 branches is mom and pop.
3) what mad men are accepting 3 year term on a 20 year am. You clearly aren't that comfortable with the loan.
4) Mom and pop places are more expensive and usually lack the sophistication and thoughtfulness in deal structure that the big banks have.
5) fun trips?
6) I have never seen a single loan we originated sold off.
1. under 5% interest
2. a bank that's regional, not one of the majors
3. 3 years then we refinance or pay it off
4. completely false statement.
5. i get asked by bankers all the time ski, hunt, go eat, they court business.
Posted on 5/15/14 at 9:02 am to trillhog
I have to agree with Trillhog on ability to borrow from community banks -v- larger national banks.
I can borrow all day long, although I do need a personal guaranty. I've found community banks are much more sophisticated than larger national banks due to caliber of employee.
The bank I'm on a board of pays above average wages, even to the tellers. I went to a conference one time and listened to some VP from BoA. The Pres. of ,my bank started to laugh as he tried to explain what an APOD was, and the best measure of value and safety on commercial loans. Our default ratio is virtually zero. They cannot say the same with all of their degrees and "sophistication", if that's what you call it.
There is a reason banker's salaries are what they are. Many are not very good at what they do, and their pay scale reflects it.
I can borrow all day long, although I do need a personal guaranty. I've found community banks are much more sophisticated than larger national banks due to caliber of employee.
The bank I'm on a board of pays above average wages, even to the tellers. I went to a conference one time and listened to some VP from BoA. The Pres. of ,my bank started to laugh as he tried to explain what an APOD was, and the best measure of value and safety on commercial loans. Our default ratio is virtually zero. They cannot say the same with all of their degrees and "sophistication", if that's what you call it.
There is a reason banker's salaries are what they are. Many are not very good at what they do, and their pay scale reflects it.
Posted on 5/15/14 at 9:04 am to Iowa Golfer
Edit...
There is also a reason why they needed to get bailed out. We didn't. The Feds came in and almost demanded we take TARP. We said NO.
There is also a reason why they needed to get bailed out. We didn't. The Feds came in and almost demanded we take TARP. We said NO.
Posted on 5/15/14 at 9:07 am to Iowa Golfer
quote:
I've found community banks are much more sophisticated than larger national banks due to caliber of employee.
Most of these types are families that have been doing this a long time, and if anything they can make a loan work out of nothing, with the big banks you have to fit into their box, with the smaller banks they fit to you.
Posted on 5/15/14 at 9:43 am to wpsnickers
PHOT
Posted on 5/15/14 at 1:44 pm to jlu03
All the little bros are coming out here. Y'all are cute.
ETA: VP at a major bank doesn't mean anything. I have had assistants that had VP titles.
ETA: VP at a major bank doesn't mean anything. I have had assistants that had VP titles.
This post was edited on 5/15/14 at 1:46 pm
Posted on 5/15/14 at 1:50 pm to TheHiddenFlask
quote:
I have had assistants
That's all you really wanted to post, admit it.
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