4 ms·

>Any middle class family can get raise 90k. This was not a group of middle class people coming together. This was a single couple, spending their own money. I

>Any middle class family can get raise 90k. This was not a group of middle class people coming together. This was a single couple, spending their own money. I agree with you that some middle class people could raise 90k if they needed to. Maybe to pay health care expenses for a loved-one. They would not be spending it buying private roads.

kbenson 9y ago
> They would not be spending it buying private roads. Why not? They are able to raise far more than that on business ventures as long as they have a business plan that's approved by the bank. Additionally, people buy houses to flip them on credit all the time as well. If you have private investors backing you, this would be an easy sell. That's much easier than you might think as a middle class person, there's an entire section of the real estate industry devoted to private money loans for slightly riskier investments than banks will fund, but at different interest rates. Contractors and investors use them all the time for short term investments (such as building our a lot for 2-4 homes, or some property flips that a bank isn't willing to fund, but a private investor that has worked with the person on multiple loans over a decade has no problem with).
- ryandrake 9y ago
  I didn't see where in the article it says they raised or borrowed $90K for the purchase. Since it was an auction, I would assume they paid in cash. Middle class people typically don't have $90K in cash sitting around burning a hole in their pocket.
  - bluGill 9y ago
    Middle class people who go to those auctions already have a bank approval. They don't have the cash, but the bank has agreed to fund the loan. Farmers buy land on auction all the time. It is very common for the auctioneer to have a local banker at the auction site so that someone who wants to bid can get approved for a loan right before bidding. The banker knows how much he will give a loan for (based on an appraisal he has done on the land), and the minimum down payment. This amount is different for different farmers (a farmer who does best practices can get much more profit for acre and thus is worth giving a larger loan to - bankers know who these farmers are)

kbenson 9y ago

> They would not be spending it buying private roads. Why not? They are able to raise far more than that on business ventures as long as they have a business plan that's approved by the bank. Additionally, people buy houses to flip them on credit all the time as well. If you have private investors backing you, this would be an easy sell. That's much easier than you might think as a middle class person, there's an entire section of the real estate industry devoted to private money loans for slightly riskier investments than banks will fund, but at different interest rates. Contractors and investors use them all the time for short term investments (such as building our a lot for 2-4 homes, or some property flips that a bank isn't willing to fund, but a private investor that has worked with the person on multiple loans over a decade has no problem with).

ryandrake 9y ago
I didn't see where in the article it says they raised or borrowed $90K for the purchase. Since it was an auction, I would assume they paid in cash. Middle class people typically don't have $90K in cash sitting around burning a hole in their pocket.
- bluGill 9y ago
  Middle class people who go to those auctions already have a bank approval. They don't have the cash, but the bank has agreed to fund the loan. Farmers buy land on auction all the time. It is very common for the auctioneer to have a local banker at the auction site so that someone who wants to bid can get approved for a loan right before bidding. The banker knows how much he will give a loan for (based on an appraisal he has done on the land), and the minimum down payment. This amount is different for different farmers (a farmer who does best practices can get much more profit for acre and thus is worth giving a larger loan to - bankers know who these farmers are)