Search found 5 matches

by luk
Mon Aug 14, 2023 12:27 pm
Forum: Personal Finance (Not Investing)
Topic: lending out to an individual
Replies: 40
Views: 2819

Re: lending out to an individual

Most of the risk is behavioral and psychological. What if you break up? What if he loses his job or becomes disabled? The best option would be a quick wedding and then refinance the home with you on both the mortgage and title. The second best option would be to enter the deal with eyes wide open. Be as formal as possible so act as if you are a banker putting a 2nd mortgage on the house. Note, mortgage filed with the county, etc. Thank you. Those are good information. If he becomes disabled, what else does it entail other than he may lose his job and not having an income to pay for the mortgage (and that will go through foreclosure)? I just want to make sure I don't miss anything else. And how would you find out the process needs done as i...
by luk
Mon Aug 14, 2023 12:01 pm
Forum: Personal Finance (Not Investing)
Topic: lending out to an individual
Replies: 40
Views: 2819

lending out to an individual

I'm exploring an option of lending out money to my boyfriend who needs to buy back his share on a house. He co-owns the house and has a mortgage. With the current mortgage, there's already an equity of 46% of the market price. To buy back the share on the house, he's thinking of taking a new mortgage from a bank with 20% down payment. However, the interest rates are very high now, and I have cash for the amount he needs to take a loan. My cash is just sitting in short term bonds with no plans to invest in the next few years. If I were to lend him the money, for hopefully a few years until the interest rates come down and he can get a mortgage from a bank. I would charge him interest rate half way between the bank mortgage and bonds that I c...
by luk
Thu Jun 23, 2022 10:26 pm
Forum: Personal Investments
Topic: how would you invest money in fixed income now?
Replies: 28
Views: 6274

Re: how would you invest money in fixed income now?

Thank you! Do you guys buy T-Bills through regular brokers (ie Etrade,..)? Or is there a better way? There's no limit in buying T-bills, unlike i-bonds right? For the penalty of As the poster above said, Treasuries and I-Bonds are attractive right now. Treasuries or CDs are paying a little under 3% for 1-year maturities now. I-Bonds are a little more complicated, but are currently paying 9.62% for the first 6 months, then the rate will reset based on inflation for the next 6 months (and every 6 months thereafter). Redeeming after 1 year will incur a 3-month interest penalty, but even if you don't count anything for the second 6 months, you'd still earn 4.81% for the year. They are limited to $10K per person per year though. I like them more...
by luk
Wed Jun 22, 2022 7:33 pm
Forum: Personal Investments
Topic: how would you invest money in fixed income now?
Replies: 28
Views: 6274

how would you invest money in fixed income now?

I want to sit my money somewhere for a year for a fixed income. What would you invest in?
Thanks
by luk
Thu May 09, 2019 11:08 pm
Forum: Personal Investments
Topic: low risk investing
Replies: 6
Views: 690

low risk investing

I have a few chunks of cash I can lock in for 0.5-1.5 yr. I prefer low risk. I'm looking at CD, MMA, Bonds so far. Is there any gotcha's in those I should watch out for?
Thanks!