Ed et all, Financial Advice - Posted by Liliana

Posted by Liliana on March 10, 2005 at 10:55:43:

Thanks for the suggestion. We alrady own a property (3-plex) and we want to be able to buy pre-construction homes. You didn’t ofend.

Thanks again,

Ed et all, Financial Advice - Posted by Liliana

Posted by Liliana on March 09, 2005 at 09:13:20:

Hi all,

I was wondering what you all thought I should do. I have $4K in my savings account. I have debt of about $30k on credit cards. One credit card has a balance of $4700 and a rate of 0% which expires in April 02, another credit card has a balance of $7187 of which $2862 is at 18.99% and $4343 is at 20.99%.

My husband thought we should send the $4k to reduce the $4700 balance and transfer the $700 to another credit card, then transfer the $7187 to the credit card that will have the 0% rate exipred in April because we might get another good rate offer.

I’m concerned with not having money in savings. Also, we are trying to learn about getting a house preconstruction by putting a deposit and then selling it before we have to move in. If we do this, we will need cash.

Any advice is greatly appreciated.


Re: Ed et all, Financial Advice - Posted by rdlazo

Posted by rdlazo on March 09, 2005 at 22:33:58:

Ed Garcia is hard act to follow but I will follow him anyway.
$4,000 is big or small amount depending on what you guys make. I suggest that you try to pay off the $30,000 Credit cards considering your other expenses and other bills.
Yo have to figure out how you will pay them off and for how long. Once you have the discipline to pay them down to a point and spending less on other avoidable expenses then you can plan on how you will handle the responsibility of owning a house. I dont’ know how much you make so I cannot make any more suggestions.
Sit down and figure out how much is coming in and how much is going out every month. Cut spending or make more money by getting part time job or part time business. Just my thoughts, i don’t mean to offend.
Regards to all

Re: Ed et all, Financial Advice - Posted by Liliana

Posted by Liliana on March 09, 2005 at 10:33:27:

Thanks for the insight!

By the way, What do you think of the strategy I mentioned? Putting a deposit for a new house and selling it before needing to move in? Are there articles here that I can read? I looked some but couldn’t find any.


Re: Ed et all, Financial Advice - Posted by Ed Garcia

Posted by Ed Garcia on March 09, 2005 at 10:17:23:


I think that expression of 6 of one, half dozen of another applies to you.

Both you and your husband have valid points; it?s a matter of your goals.

I agree with you that it does look good if you show some liquidity by having cash on hand. In the scheme of things the amounts you?re talking about are not significant enough that the cost will break you to show liquidity.

There is no right or wrong, it?s a matter of ultimate goal. If your goals are to relinquish debt, then your husband?s suggestion is the way to go. If your goal is to purchase properties and demonstrate a more balanced financial picture, then it would benefit you to show a liquid asset or cash on hand.

Liliana, if your husband is not as hep to the RE investing scene as you are, and you want to demonstrate a give and take relationship with him, let him win on this one. When it comes time to win in a situation that is more significant, he will more then likely work with you when you need him to.

I learned this from my wife,


Ed Garcia