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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (44916)	10/11/2011 10:08:10 PM
From: E_K_S	Read Replies (1) \| Respond to of 78634

Hi Madharry - CEMEX, S.A.B. de C.V. (CX) I have not looked at CX in a long time. It's getting pretty cheap in price but I did not realize how much debt they have (over $15B). Way too much debt for me. I will pass on this one. ---------------------------------------------------------------------------------------------------- My 30 year mortgage is paid off March of next year and I have yet to load up my Home Equity Line (now available interest only at 3%). My plan is to pick up some rental properties, fixed them up and get them leased. I plan to eventually put 15 year fixed loans on them (3.65% from my Credit Union). I will keep just enough equity in the properties so they are cash flow positive. The Lowest Mortgage Rate ... Ever! By Rich Smith Posted 4:15PM 10/07/11 dailyfinance.com From the article:"...if you've got the balance sheet to work it -- might be to lock in a lower rate on your current home, then buy a second home at the same low rate. Rent out the first, and live in the second. Because even if people aren't buying houses, chances are they still want a roof over their heads. Today's low rates give you a great chance to play landlord....". It seems like the right time to nibble at investment rentals with mortgage rates at 50 year lows. I was a landlord in the early 90's during the S&L bail out. I sold the rentals after 5 years so I could focus full time on stocks. I made good money in the early 90's flipping foreclosures but it was a lot of physical work. I try to stay as liquid as possible. I set up my Home Equity credit line 4 years ago at the peak of the real estate market. Never used the line of credit, but it's nice to know that it is there. I have been waiting 20 years for this phase in the real estate cycle and now that I can buy properties at $0.50 on the dollar, the long wait may have been worth it. EKS

To: Madharry who wrote (44916)	10/12/2011 12:38:14 AM
From: Spekulatius	Read Replies (1) \| Respond to of 78634

>>I dont know what im doing in these markets but I couldnt resist buying a small amount of cx today. trying to refinance my house, got into an argument with my lender, who is telling me that when you look to refinance they look at the home equity line as part of the loan to value even though its subordinated to the banks position. so now hes telling me that they are looking at a loan to value of over 95% as opposed to the 76% that it seems to me.<< The lenders learned this the hard way. Somebody with home equity lines and a mortgage is more likely to default on the mortgage than somebody without home equity line. Think about it - it makes perfect sense. I had a home equity line with zero balance too at terrific terms since it was based on libor. When I re-financed last year, I had to close it since they would not allow a change of first lien, even though from a coverage point of view it did not make a difference to them (Cashless refinance). It was their way to get rid of a home equity line that was not profitable to them.