Economy and Cruising Plans

[Eleven]

Sold the house this August. Money in the bank, no debts. Still working (surprising, I'm freelance and unsure about getting the next job).
If I stop working I'll do sail training, rates are more favourable and less per week than my salary so can't give up work to play just yet.
Current boat plans on hold, decision when I decide there is no more work. Money equals boat size and quality. 1/2 the money on the boat (ready to sail) and half in the cruising fund. if work picks up in a couple of years we'll cruise between contracts, work in the hottest and colder months. Boat to stay in the med.

[Tspringer]

It is having a huge impact on our cruising plans.... but whether that impact proves positive or negative is still to be seen.

I own a mortgage company. Or perhaps it would be more accurate to say I DID own one.... technically I still do, but we have not close a loan since June and the market is as dead as dead gets.

Based on that.... and my belief that we are currently in the 2nd inning of a long 9 inning full blown depression.... we are pushing up our cruising plans. We had planned on cutting the dock lines in September of 2009. Now we are looking at late next summer... ASAP.

I have switched my business focus from the mortgage business to real estate investing. Banks swamped with foreclosure properties and desperate to unload are selling homes at STUPID prices. I have been buying these, renovating them and then renting them out. The cash flow is fantastic ($800 in rent on a $60K total house investment) so this will actually help generate cash flow for us to live on aboard the boat. I currently own 8 such homes and though I am selling several I expect to have a net monthly income next summer from these rentals of around $3K a month.... not enough to support us living as we do on land but enough if we are living on the boat. AT least I hope so.

So, LOTS of uncertainty and worry but we are pushing forward with a plan and when I take my emotions out of what is happening and I look at it in a cold, hard, objective manner I do tend to see more upside than downside risk on the real estate we are buying so HOPEFULLY things will work out.



Terry

[GordMay]

Originally Posted by Tspringer

...

Based on that.... and my belief that we are currently in the 2nd inning of a long 9 inning full blown depression.... we are pushing up our cruising plans. We had planned on cutting the dock lines in September of 2009. Now we are looking at late next summer... ASAP.

I have switched my business focus from the mortgage business to real estate investing. Banks swamped with foreclosure properties and desperate to unload are selling homes at STUPID prices. I have been buying these, renovating them and then renting them out. The cash flow is fantastic ($800 in rent on a $60K total house investment) so this will actually help generate cash flow for us to live on aboard the boat...
Terry

Well, at least, I suppose that you love not sending files to Provident.

[Tspringer]

LOL! How did you know?

Provident has always been a love/hate thing. They offer the best rates and pricing but trying to do business with them is always something of a disaster. In 17 years in the mortgage biz I have never experienced a more mind-numbingly frustrating and absurd mess than trying to get GOOD loan files approved and closed with Provident Funding....



Terry

[GordMay]

Originally Posted by Tspringer

LOL! How did you know?

Provident has always been a love/hate thing. They offer the best rates and pricing but trying to do business with them is always something of a disaster.

Someone from American Republic Mortgage Brokers commented on Provident on another website.

[Charlie]

The credit crunch has cut into my business alot. I had 3 deals going in August and they all died more or less b/c of credit crisis problems. I actually thought this would be a good time to buy real estate but the banks don't want to lend. When the economic winds change I adjust the sails. I knew this was coming so I made sure that the only real debt that we have is the house. Admiral is a RN so I've warned her if things get real bad and I can't get deals put together she may have to go back to work.

I'm still going to cruise I'm just going to slow my pace. Instead of getting to Mexico I'll only get as far as San Diego. Well So Cal is a pretty nice place to sail.