Boost Sales

When buying something, you can buy in one of two markets. The first is buying on terms in the retail market and the second is buying in the wholesale cash market. This can be illustrated by referring to the biggest purchase we all make in our lifetime - Real Estate.

In recent years, when you are buying a house it is easy to get financing of the first mortgage, so the seller is not forced to finance the whole sale. Moreover, he will most likely make some concessions if he doesn't have to carry back a seco

When shopping something, you can buy in one of two markets. The first is purchasing power on terms in the retail market and the second is in the wholesale cash market. This can be illustrated by referring to the main purchase we all make in our lifetime - Real Estate.

In recent years, when you are sale a house it is easy to get financing of the first mortgage, so the seller is not forced to finance the whole sale. What I mean is the seller doesn’t come forth your first mortgage holder, the bank lends the money and the seller get the cash. Moreover, he will most likely make some concessions if he doesn’t have to waft back a second trust deed.

Therefore giving the seller all cash, will usually get you a turn the tide deal than application the seller to let you buy the house with a very low down payment, with him waft back a sizable trust deed. The big savings come when you are consumerism real estate that doesn’t have easy institutional financing available. The purchase of vacant land can be the best example.

My father was interested in industrial lots in the city of Montebello, just east of downtown Los Angeles. This was during the 1960’s. In those days it was sad for a consumer to put down 20% and the seller to finance the remaining 80% for 10 years at 8% interest. For example: a $10,000 lot would cost you $2,000 down with $97.06 payments every month. posterior 10 years the total of the principal and interest payments would be $13,647.45. If you wanted to architecture on the property you had to pay off the land loan, first. The sellers then would not have to wait the whole 10 years by election getting all their money.

Many property owners sold their property for they wanted money and getting the $2,000 wasn’t much money to them. So, my father would offer $5,000 all cash to the sellers. More than 1 out of 5 would take the cash up front instead of waiting for payments over 10 years. By offering the extra $3,000 cash down, my father saved $8,647.45 on the sale ($5,000 on the price reduction, plus the interest on the note). Now that is sale wholesale!!

Buying cars can be done the same way. When you pay retail, the dealer talks monthly payments. If he lowers the price, he’ll raise the interest rate. When you are consumerism for cash, he can only talk price. When you are leasing an automobile, they don’t even tell you the price!

The major consideration in leasing a car or not, is made by the leasing garrison to be all back what the monthly payment is going to be and how much extra it is going to cost you when you drive over 12,000 miles per year. Ever financed a used car from a “no credit check” dealer? He gets you for 36% interest on the ponder you borrow, rear getting a 50% down payment from you. Then if you miss a payment he takes the car and sues you for the difference. Buy what you can dole out in cash and save making the lenders rich.

I read a report once that said that the middle man makes $1,500,000 over his lifetime. Of that amount, he uses $600,000 to pay the interest on his purchases. Let’s look at the purchase of a home, from a slightly different point of view. A man who makes $1,500,000 in a lifetime will be earning on run-of-the-mill $30,000 a year or $2,500 per month.

He can fund to spend 40% of his income on rent or a mortgage payment. This means that he can bestow on a $150,000 house. If he can qualify for a 90% loan he would owe $135,000 at 8% amortized over 30 years. That means he pays $221,609.58 interest plus the $150,000 principal to buy this one house and pay it off over 30 years. The interest private is as good as 15% of his lifetime earnings! sale some on credit can cost you more than the retail price for you must add the interest to the cost of the item.

My suggestion. Buy for cash and negotiate for the best price you can get. If you must borrow, pay it off in as short a time possible. Also, never hit up for personal consumption. Postpone the purchase long enough to pay cash. If you can’t pour on to wait until you save the money, you shouldn’t buy the item. It is just too expensive. To buy on payments raises the cost even higher than the cash price, so it becomes even more expensive. So if you cannot fork out the cash price, you definitely cannot gift with the financed price. My suggestion is to pay cash and buy wholesale. BUY THE BEST, PAY CASH

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