| Boomer Buzz Words - John Wheelwright |
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| Written by John Wheelwright |
| Friday, 06 June 2008 08:12 |
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Alligator Property In real estate, when the cost of mortgage payments, property taxes, insurance and maintenance on a rental property is greater than the income it brings in. If this situation is not corrected, it will eat up all of the owner's profit, leaving him or her with negative cash flow. This occurs more often when a rental property is purchased near the peak of the real estate cycle. In this case, the investor buys the overvalued building and rents it out, but as interest rates rise and maintenance costs add up, the owner is forced to either sell the building or suffer a negative cash flow. |
Mike was going to be married to Karen, so his father sat him down for a little chat. He said, 'Mike, let me tell you something. On my wedding night in our honeymoon suite I took off my pants, handed them to your mother,and said, 'Here - try these on.' She did and said, 'These are too big,;I can't wear them.' I replied, 'Exactly, I wear the pants in this family and I always will.' 'Ever since that night we never had any problems.' 'Hmmm,' said Mike. |
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