Bossed Mobile

01/20/2025

Land contract vs tradition mortgage.

The primary issue with a land contract purchase is that the buyer does not legally own the property until the full purchase price is paid, which means they can lose the property and all their payments made if they miss a payment or default on the contract, with fewer legal protections compared to a traditional mortgage; essentially putting the buyer at significant risk of losing their investment with little recourse.

Key points about land contract risks:

No title until full payment:
The seller retains the title to the property until the buyer pays the entire contract amount, leaving the buyer vulnerable if they default on payments.

Potential for large "balloon payments":
Many land contracts require a large final payment at the end of the contract term, which can be difficult for buyers to afford and lead to losing the property.

Limited legal protections:
Compared to a traditional mortgage, land contracts often have fewer consumer protections, making it easier for the seller to foreclose on the property if the buyer defaults.

Higher interest rates:
Sellers may charge higher interest rates on land contracts due to the increased risk involved.

Lack of transparency:
Land contracts can be less standardized and may not be clearly documented, leaving room for misunderstandings and potential disputes.

Only deal with traditional lenders (banks, credit unions, mortgage lenders) in order to protect your best interests, investment, equity and ownership. This way you can leverage the property (home equity loans, 2nd mortgages, lines or credit) to be able to get even more income producing assets (stocks, bonds, rentals, etc.).

10/03/2024

Financial Security…Here are non-negotiables or must-haves for a good/great/excellent credit score 670-850+:

1) Payment History (40% of your credit score): Pay all bills on time, every time.

2) Credit Usage (23% of your credit score): keep your credit usage to less than 30% of your total combined credit card limits. You can keep unused credit cards open to help with that.

3) Account mix (11% of your credit score): keep a diverse mix of revolving accounts (credit cards) and installment accounts (auto, student and home loans). Be wary of charge accounts (Amex, Discover, etc.) as they may not report to credit bureaus in a way that helps your credit score.

4) Credit age (21% of your credit score): start early to build a solid credit history. Keep your oldest credit account open and in good standing, using at least once a year.

5) Credit inquiries (5% of your credit score): avoid excessive hard pulls on your credit. Use soft pulls as needed for reviewing and hard pulls specific or targeted purchases.

Remember, bank accounts do have an effect on your credit as well. So, keep your bank accounts in good standing.

Got off to a bad start with any creditor or bank? No worries. Contact them to make arrangements to get back into good standing.

Finally, the only way to have solid credit is to pay all of your bills on time, keep your revolving credit usage to around 29%, have auto loan(s) and have a mortgage(s) in your name and using your social security number. Creditors look at your income, time on job and debit issues to see how credit worthy or risky you are.

10/26/2023

Say you get paid 10$/h at work.

🔷 A cup of coffee isn't $5 - it's 30 minutes of your life.

🔷 That new iPhone isn't $1300 - it's 130 hours your life.

🔷 That new car isn't $85,000 - it's 8,500 hours of your life.

Your thinking shapes your reality!

10/26/2023

The Paradox: Why We Splurge on Stuff But Shy Away from Investment. We often rush to buy new possessions that provide immediate joy. However, consider this: investing may not give you an instant thrill, but it holds the potential to nurture substantial wealth over time.

10/26/2023

10/26/2023

09/19/2023

“Professional athletes are a cautionary tale of how sudden wealth can disappear. Nearly four out of five NFL players face serious financial stress after having been retired for two years, Sports Illustrated reported in 2009. And that figure has only increased. In 2015, nearly 16% of NFL players filed for bankruptcy within the first 12 years of retirement, according to the National Bureau of Economic Research. The lesson here? “Just chill. Don’t make any major decisions or big commitments. Let things digest”.”

Lottery winner Edwin Castro has bought three multi-million dollar mansions and a vintage Porsche since collecting his prize in February.

09/06/2023

Making money is not enough. You need to understand:

1. How to acquire more of it

2. How to effectively manage it

3. How to efficiently keep it

09/01/2023

Why 99% of people fail to get rich:

- Impatient
- No budget
- Don't invest
- No discipline
- Have bad debt
- Live to impress
- 1 income stream
- Fear of taking risks
- Low-quality friends
- No financial literacy
- No high-income skills
- Stuck in the comfort zone

What else?

09/01/2023

Never live bigger than your paycheck.

08/16/2023

Managing and Reducing your spending is a good way to begin your path to financial freedom; however, the most effective way to make a big difference is by Earning more (ie by developing a skill that pays well, etc.). So, along with saving money, put emphasis on boosting our earnings.

08/12/2023

https://www.wsj.com/articles/the-scary-math-behind-the-worlds-safest-assets-a22069f9

Washington has laid the seeds of a crisis that Wall Street can no longer ignore.