http://www.dominica-weekly.com/investing/using-money-to-make-money/ Ramblings From The Nature Paradise of Dominica Sun, 07 Sep 2008 20:27:19 +0000 http://wordpress.org/?v=2.6 http://www.dominica-weekly.com/investing/using-money-to-make-money/#comment-8894 Dan Thu, 08 Nov 2007 16:15:04 +0000 http://www.dominica-weekly.com/investing/using-money-to-make-money/#comment-8894 It's also important to note that you'd have paid down only about $100K of the loan principal in 10 years. Even without figuring the net present value of the payments (your costs), your gross profit has been reduced to about $350K. Now subtract the principal payoff of about $270K and the net looks like about $80K (and that's before figuring in and deducting all of your net expenses). The investment doesn't look so sweet now. It’s also important to note that you’d have paid down only about $100K of the loan principal in 10 years. Even without figuring the net present value of the payments (your costs), your gross profit has been reduced to about $350K. Now subtract the principal payoff of about $270K and the net looks like about $80K (and that’s before figuring in and deducting all of your net expenses). The investment doesn’t look so sweet now.

]]> http://www.dominica-weekly.com/investing/using-money-to-make-money/#comment-8883 Chris Thu, 08 Nov 2007 00:26:59 +0000 http://www.dominica-weekly.com/investing/using-money-to-make-money/#comment-8883 The figures in this post were all made-up by me...an hypothetical example in other words. :eek: And there is nothing about bank interest rate...(25% down payment, 75% loan from the bank) - this means the partners put up 25% of the money as a down payment and the bank put up the remaining 75% to buy the building. Remember this is an hypothetical example :!: The figures in this post were all made-up by me…an hypothetical example in other words. And there is nothing about bank interest rate…(25% down payment, 75% loan from the bank) - this means the partners put up 25% of the money as a down payment and the bank put up the remaining 75% to buy the building. Remember this is an hypothetical example

]]> http://www.dominica-weekly.com/investing/using-money-to-make-money/#comment-8882 Dan Thu, 08 Nov 2007 00:13:55 +0000 http://www.dominica-weekly.com/investing/using-money-to-make-money/#comment-8882 Investing is a good idea. But the investment must be prudent, and this post mentions nothing about risk. Also, the math in it does not make sense to me, and certain info, such as the interest rate on the bank loan, is not given. This is not trivial stuff. However, the concept of thrift and especially of "delayed gratification" (the engine of class mobility) is very, very important. Investing is a good idea. But the investment must be prudent, and this post mentions nothing about risk. Also, the math in it does not make sense to me, and certain info, such as the interest rate on the bank loan, is not given. This is not trivial stuff. However, the concept of thrift and especially of “delayed gratification” (the engine of class mobility) is very, very important.

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