Thinking Of Selling My Rolex, New Little Boat, & 20-30 Firearms In Order...

Discussion in 'The Okie Corral' started by USMCsilver, Mar 1, 2010.

  1. USMCsilver

    USMCsilver Boat Life ©

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    Let me preface this by stating that I think I'm crazy.

    I love my watch, my new little boat is slick, and well, duh, I cherish my firearms.

    However, I've found something I want to buy --

    A nice piece of land.

    Without going too deep into my personal finances, I can state that the land is listed at $150k. I think I may be able to get it for $135. I'd probably need 10-20% down. Sadly, I've saved little. I've invested most, and made some stupid decisions in the past.

    I'm looking at one of two things:

    1. Put a contract on the land with the stipulation that my house sells. I may pocket $15-20k from my house. Buy the land, live with my parents for a few months and then consider building a small house that we could add onto later or putting a modular home on said land.

    2. Try to buy the land and keep my house. In order to do that, I'd have to have money to put down. So...I figure if I sold all those petty/trivial things, I'd have enough cash to put a decent down payment on the land.

    I'm torn. I walked the land today and spent over 2 hours with a realtor out there. I've been all over the damn state and I was a land surveyor for 3 years. This is one of the most beautiful/practical tracts that I think I've ever encountered anywhere within a couple hundred miles of here.

    It's a damn HUGE decision. I have NO idea what to do. Basically, I'm looking for open ears who may have some ideas.

    Debt on paper:
    • $600/mo house
    • $535/mo truck
    • $245 boat
    Discuss.
     
  2. CSnakes

    CSnakes

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    USMC,

    I see where you are coming from and just made a big move (and a few sacrifices to make it happen) myself.

    IF I could offer a suggestion without knowing your ultimate goal, how much property, if this will be your new home "'til ya die"...

    I would do everything you said above to make the deal happen and put a decent sized modular on the property to live in today... I would also lose the truck payment unless you are a contractor/tow driver and made a living from that truck! Then begin planning for your "dream home", it doesn't have to be big, or fancy... but whatever you want and build it in front of the modular... install a pool, or make the backyard really nice (again whatever that means to you) live in the dream home and use the modular as guest quarters/in-law/pool house/workshop... whatever you want!

    Again that is just me.

    Good luck with your decisions and in reaching your goal!
     

  3. Lothar

    Lothar Noob

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    I was told that if I wanted to buy land to build on that I would need at least 50% down on the land and that the contractor that was to build my house better have a "good standing account" with the bank to get a construction loan.

    Don't want to smash your dreams but that's what happened to me.
     
  4. Steve0853

    Steve0853

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    Its a bad market to try to sell a house right now, but its a good market to buy real estate, so that part is a wash.

    If you try to sell your "things", you'll need a little time. Can you put enough earnest money down to hold the tract of land till you get those things sold?

    If you're going to live at the new property, then selling your current home shouldn't be a problem. It's just going to take some time in this market. I have no problem with the idea of big money land, small money house. In fact, I'm always amazed at the sight of a $500,000 home on a 1/2 acre lot with neighbors less than 75 feet from the front door step.

    I've always said I'd rather have a double wide on 50 acres, than the nicest subdivision home in town. But that's a personal choice.

    Your decision will depend on how long you have to come up with a good down payment. For me, I would make every effort to get that "once in a lifetime" piece of land. If you are a country boy type person, you will never regret it.
     
  5. Jon91N/A

    Jon91N/A

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    Sell your toys and buy the land. There are thousands of copies of your toys that you can reacquire in the future. There is only one copy of that land and if you don't buy it you're SOL. Of course there is also the general fact that land will always appreciate in value so that piece probably won't be getting any cheaper.

    Then sell your house in a few years once the real estate market picks back up and use that money to build one on your new property.
     
  6. doubletap1

    doubletap1

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    Vacant land? Is there any chance this could provide some cash flow? If not, it would be better for you to buy a little house/cono/whatever and rent it out.
     
  7. byf43

    byf43 NRA Patron Life Member

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    Sterling,

    Points of note:

    1. Sell the truck and get a smaller, more fuel effecient car for the family.
    There's almost 1/2 of your debt gone. Granted, you WILL most likely have to get something to drive, unless your wife's vehicle will suffice.
    (In other words, you'll possibly have $$$ going out for another vehicle.)

    2. Sell the watch. (I'm not the kind of person that needs a big $$$ watch or any jewelry.)

    3. Sell the boat. "A boat is a hole in the water, that you pour your money into." (Or something like that!)

    4. Firearms.
    Realistically, can you make enough $$$$ on the sale of these to make a difference on whether you can get the land?
    If so, when will/will you be able to replace them for comparable $$$ in the future? (IF you're interested in replacing them!)

    5. Buy the land.
    As the man that hired me once said,
    "Buy land, young man. God ain't makin' no more of it."
     
    Last edited: Mar 1, 2010
  8. RustySocket

    RustySocket

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    Two things....

    I don't regret selling my boat... the hole in the water analogy is pretty close... and you can always get another.

    The rolex You can get a good chunk of cash out of it if you bought it right.

    The land.... they don't make more everyday... so get it if you can make it happen.
     
  9. Obi Wan

    Obi Wan

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    Given the current economic conditions, and unstable political situation... both of which I believe will be much worse in the coming years... I would probably buy the land as soon as possible and put at least a decent double-wide, or a nice modular unit... minimum size with expansion capability. That moves the home payment to your new land.

    Trade the truck if possible for no payment if you can find a good one that will last you 5-8 years.

    Lose the boat.

    Decide which guns you really want/need to have around and thin the rest as needed for cash... and ammo.

    Make sure you get a fixed rate loan.

    I'm not convinced we aren't going to be faced with extreme inflation in the next 3-5 years or so. If the financial world goes bonkers, I want to be positioned to be below their line-of-sight, without too much equity in my real estate.

    Good luck!

    P.S. Let me know if you have any 18"-20" middy, tack-drivin' AR's. :whistling:
     
  10. Kith

    Kith

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    Here's my take:

    As a previous land surveyor, you have the necessary understanding to critique the land and judge it's worth to you.

    You seem like you can make it work by being real about it, understanding that you may have to live with parents for a little bit or whatever (no shame there) and are at least considering making the sacrifices to make it happen.

    Also, as a current home owner, the banks will be more willing to work with you because this isn't your first BBQ.

    Land is valuable. If the land is as good as you say it is, especially with the intent of building, it can only appreciate in value. Land is also the best collateral you can use in the business world for loans.

    I don't have land, but my father plays the real-estate game and i've worked with him over the years on all sides, from working on properties to helping with the paperwork. Bottom line is land ownership gives you a lot of options.

    You could leverage the equity you have in the land to replace the things you have to sacrifice. Once you build, and get it re-assessed, you may find that you can re-finance to lower monthly payments because it is now more valuable then what you originally paid for it. Or maybe take out a second mortgage and buy another boat.

    There are many, many, positive financial options once you get built and re-assessed, especially if you don't skimp on the build phase in a rush to get it done. A quick, slapped together home could actually de-value the property, so make sure you weigh out each of the many build decisions along the way. It's way easier to make changes on paper at the beginning, then later physically.

    I don't know anything about where it is or whatever, but beyond how good the land itself is, make sure it is somewhere that you won't hate down the road. (does it take 6 hours to get to the nearest store?)

    If you are younger, rather then older, then buying the land is more of a yes then a no, because you can replace over the years the things you had to sacrifice to get it.

    Being younger is also helpful when you get to building on it, because that's not something that happens over night, and I get the feeling that you would try to do whatever you could handle yourself, given your financial situation. Building a home takes a lot out of you.

    It'll be a lot cheaper to rent a backhoe and dig your own basement if you can operate one then hiring a company to do it. Shifting dirt isn't hard, and they are fun to drive.

    I'd make sure to get any concrete poured professionally though, unless you have experience with that specifically and you have at LEAST one other person that can help you spread it. You could manage the foundation by yourself, but pouring the pad for the basement floor is not a one man job, no matter how good you think you might be. (not including the cement truck operator) You can save money by spreading and leveling the stone yourself though.

    Laying block is not hard, but it is time consuming. If you haven't done it before, but can handle that type of work, it will take about 5 to 7 times longer then you think it will, even with the most generous up front estimations. You can only mix up so much mortar at once, and it's a huge demand physically to mix mortar and lay block. If you can get a friend or two to help you'll be in good shape though.

    Once the foundation is poured, the basement is blocked out, and the pad is poured, the rest is all downhill.

    Too, also, being younger would give you more time to appreciate the property.

    If you are older rather then younger, you may not be able to get a boat again until after you can't appreciate it as much. Think about how much time you have left to enjoy life, and if the sacrifices you make will deny you fulfillment it may not be worth it.

    Also, being older rather then younger means that you will have to hire out more of the work, and it'll cost more then doing it yourself. I don't know what your level of motivation/trade experience is - so i'm just shooting from the hip on a lot of this advice.

    Also consider the opinions of your immediate family (wife/significant other, children) if you have any at all. It's one thing to live with your parents and sacrifice your privacy and sovereignty if it's just you, but if you have a wife/significant other and/or children moving back in with your parents can put a real strain on you, them and your parents. It's hard to be the head of the household when you really aren't.

    Unless you have some more unique collector firearms, replacing them isn't so hard, they are unto themselves small purchases individually when we are talking about boats and land. Collectively it's a big deal, but that's something you can 'part out' which softens the financial blow. I'd make sure to keep any that have deep sentimental value though.

    If it was me personally, i'd just hock it all to get the land and chalk it up to worthy sacrifice, since the land gives me more options then the other material stuff. Once you get it, you won't be trying to sell it and move on later, this is one of those "I got it and now it's done" situations.

    About modular housing:

    If you do modular housing, you will never be able to get rid of the seams between modules. You will always have cracks and some minor separation, because of settling and hot/cold expansion/contraction through the seasons of the year.

    Keep this in mind, and maybe consider making a permanent foundation and small built home, and add modular units to it to increase the size of the home at relative low cost/hassle.

    A straight up all modular house is not such a good idea though. The people i've known over the years who have had them have all said that if they could do it again they'd build a small home and add modules to it.

    Background:

    I spent a few years working for a builder liasing between him and the work crews, and pitching in where necessary to move the projects along. During that time I worked in the woodshop on weekends/afternoons to late evenings as a cabinetmaker, and at a seperate time in my career I worked as a cabinetmaker again. They were building million+ dollar homes out in the suburbs, so it wasn't like ramshackle rowhomes.

    I also spent a while working as a carpenter sticking out new construction.

    I spent 9 months working for a stonemason with early work release from high school and through the summer one of my years...benefit of attending a vocational school where my major was in construction. - i'll never do it again professionally (i like my hands) but would do it for myself if I was in your situation.

    I've bounced around here and there in other trades over the years, but my primary experience has been in carpentry, and the last few years as a painter...which doesn't really help you. I only throw this info out so that you can get some sense of where my opinions are coming from, and later on if you decide to buy and build i'd be happy to throw you any advice I have rattling around in my head.

    Just some random advice to help stimulate the conversation. Just make sure that you can keep your head above water financially during the whole process, the first year or two will be the hardest. After that it should be much easier all around if you get the land.

    Whatever you decide, I hope it works out for you. This is a big decision, and i'm a little jealous :)
     
  11. harleyfx69

    harleyfx69

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    dont froget youll need the truck to haul things to your property,

    not to mention if its in the country, and you dont have improved roads in, youll need the 4x4,

    my family has property in a semi remote area, that its at times where you cant even get to,

    if your making boat payments, that would be my thing to go first as like i said, i view the truck as necesary,

    also how much equity do you have in your current home ?

    and could you take a mortage or something off of it to help you obtain the property ?

    also do you have a set job with no fear of loosing it ?
     
  12. MtBaldy

    MtBaldy Obie Wan, RIP

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    I'd say go for it, the land is unique and the other stuff is replaceable.
     
  13. G33

    G33 Frisky! CLM Millennium Member

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    Buy land.
    :supergrin:
     
  14. RioKid

    RioKid

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    Go for it. The land is something with real value and will always be there. Your toys, although fun, are just trinkets that can be replaced later as your financial situation improves. Get what you can out of them and use the $$ to build your future on your land. :wavey:
     
  15. Zell

    Zell IrregularMember

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    Land is usually a good investment compared to watches, boats and whatever else. One caution: make sure you can afford it -- don't over extend yourself. It that's the case, then do not do it. You'll regret it and you'll be living for a piece of land.
     
  16. Batesmotel

    Batesmotel

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    Boat: A hole in the water you throw money in.
     
  17. Zell

    Zell IrregularMember

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    By the way, will the land make you as happy as a boat, guns and some other things that you really enjoy doing in life? Those are fun things to have/do. Other than 8 hours each day of sleep and 8 hours of work, we all need 8 hours to play and enjoy the good things. A piece of land won't do that for me.
     
  18. fnfalman

    fnfalman Chicks Dig It

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    Get a divorce and marry rich.
     
  19. Kabarred

    Kabarred

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    do it man! but don't sell your guns, how else are you going to protect you land:cool:
     
  20. Doc Holliday

    Doc Holliday CLM

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    God ain't making any more land. Get it while you can.