Taking Equity out of Home to Go on Guided Hunts

[HornPorn]

Another thought, if chasing those kind of hunts is really want you want - sell your house, buy a much smaller place, downsize by selling off everything but the essentials, and use the money for the fist couple of hunts while you save money for the rest. That way, you still have a paid for house in case things don't work out the way you think.

The other thing to think about is that the price might not keep going up - a big enough hit to the economy and you might see people selling off already booked hunts for half price.

Chasing dreams is valid. But, with this you might try to find more of a middle way.

Great post and suggestion. But my house is my main retirement asset. It's worth about $1.5 right now, and I don't owe anything on it. I bought it so long ago, my cost basis is such that my tax bill is very manageable. You are very right about the trajectory of the sheepslamflation, but If it keeps going up 30K/year, a slam will cost $580K in 2034!

 

[Koda_]

Are guides required to hunt sheep?

 

[MuleyFever]

You could do all 4 three years ago for $190K. Now you are looking at $280K. So over the last 3 years, I have already lost $90K, or $30K/year.

7% of 300K is $21,000, which is a savings of $9,000 per year over the current inflation rate in a grand slam. I am going to pay all $300K back in 10, 11 years tops, so by the time I get done paying the loan off, the interest I will have paid will not be significant compared to the savings I will have realized by doing it all in 2025 and 2026 hunting seasons.

What do you a think a grand slam will cost in 2034?

You are only looking at the cost of interest against the inflation of the hunt. You also have the opportunity cost of the money you will have to pay every month.

I have always wanted to go moose hunting. Five years ago when I started saving I should have just borrowed the money. The hunt cost has almost doubled and even if I carried the loan to term I would have paid less in interest than the increase in cost. So I see the desire. You are looking at a much higher dollar amount borrowed over a longer time frame though. It would be pretty easy to get actual numbers and decide if it's worth it to you. Ultimately, that's what matters. We all have to decide what we will pay for luxuries.

 

[schmalzy]

It’s a little unorthodox but I’m going to go against the grain and say cautiously pursue it.

My own opinion, is so long as it nots putting you or people you’re responsible for at risk, why not?

Sounds like you don’t have many other bills and a respectable net worth with a paid for home, just not a ton of cash flow.

House may still go up a decent amount and take some of the sting out of that 300k.

Highly personal decision, but the opportunities to chase sheep aren’t going to become more attainable in my opinion. And you never know what tomorrow brings. Hell, stick some of that 300k in a money market account and offset some of it.


Sent from my iPhone using Tapatalk

 

[Jimmy]

I think you should do that. But do two hunts for yourself and give two to the great advice givers of rokslide.

Coincidentally I am available on whatever dates you schedule the hunt. So keep that in mind, please. Thank You

 

[cbeard64]

OK. With the new information that your house is worth $1.5 million and is paid for then that changes the equation considerably. It’s not nearly the financial sacrifice for you that I was assuming.

I’m not a financial guy, but I’m assuming there are ways to sell your home, downsize to a less expensive home, use a 1031 exchange (or something similar) to avoid the big income tax liability on the entire sale and then take 300K to go after the Slam.

 

[cbeard64]

Your saying that taking 10-11 years to pay the loan off indicates that your annual cash flow is not high.

If you can pay it off sooner (say, 3-5 years) then doing a loan for 300K against a paid-for $1.5 million house is not nearly the risk I was thinking about. In that case, the hunt price increases would likely more than offset the interest/loan costs.

 

[PredatorSlayer]

This is one of the dumbest things I have ever heard of…

 

[deadwolf]

Something Americans currently have difficulty telling ourselves is NO. Many think that if they can afford the monthly payment, they can “afford it”. This mindset in detrimental to your long term financial well being. To the OP, I’m sorry, but you cannot currently afford to do what you’d like to.


Sent from my iPhone using Tapatalk

 

[Molon Labe]

Sell house.
Put 1.5miilion in fixed account returning 5%/yr. Use 75k income to book two big horned hunts in 2024/25.

2024 Move to Alaska and establish residency. Spend everyday scouting sheep.
2024 book desert sheep hunt and kill ram in Mexico.
August 10th 2025 Kill Dall ram.
Aug 11th 2025 Move to BC and establish residency.
2025 book and kill BH ram in Alberta.
August 12th 2026 Kill stone ram.

Move back to wherever in fall of 2026 and restart your “life” with your completed slam.
Buy a house for 1.5million.

Log into Rokslide and post up the story of how you killed a slam in 2.5yrs without spending 300k

Fin.

 

[wesfromky]

Great post and suggestion. But my house is my main retirement asset. It's worth about $1.5 right now, and I don't owe anything on it. I bought it so long ago, my cost basis is such that my tax bill is very manageable. You are very right about the trajectory of the sheepslamflation, but If it keeps going up 30K/year, a slam will cost $580K in 2034!

Send it - I mean, even if things go south, you would still have a million+ in equity you could access, assuming your house doesn't loose a ton of value.

 

[Wrench]

The tax advantages of paying mortgage interest are certainly negative compared to some strategic investments. I am as dumb as a rock in terms of stock trading but have managed to save 6 figures in 5 years with a family of 7....and it sounds like you're doing better income wise than I am.

 

[EdP]

You are still married? If so, not for long I think. If not, be as reckless with your finances as you are comfortable with. One thing to consider, you may have to go more than once or twice for each sheep species.

 

[Murphy]

Don't listen to all these responsible folks, do it now while you still can!!! Tomorrow you can deal with the financial problems. You won't regret sheep hunting on your death bed I'm very confident in that.

 

[Ucsdryder]

You want to go on some sheep hunts but can’t afford it!? This clip comes to mind.

 

[bascott1]

I didn’t see age and what’s the stability of your job and have a family? If you’re younger and If it’s just you fuc**** send it. If the job is stable and you know you have the income go kill it. If it’s really worth $1.5 and it’s paid for if it all hits the fan you sell and cover the debt and downsize.

just fyi. I work for the railroad with a phenomenal pension and retirement plan. Three co workers in the last couple of years have been diagnosed with cancer and one is gone with two not having much time left. Worked for 30 years for this fantastic pension and will never draw a check.

 

[SDHNTR]

Great post and suggestion. But my house is my main retirement asset. It's worth about $1.5 right now, and I don't owe anything on it. I bought it so long ago, my cost basis is such that my tax bill is very manageable. You are very right about the trajectory of the sheepslamflation, but If it keeps going up 30K/year, a slam will cost $580K in 2034!

Selling the home, downsizing, and taking $300k cash to fund the dream MIGHT make sense. On the surface, that certainly makes a lot more sense than financing the hunts.

But what about the rest of your financial life? Is everything else fully covered (retirement, health care, family needs, etc). to allow you to live the way you and yours wish for the rest of your life expectancy? Even if you live well into your 90’s? Don’t guess. The only way to answer that question definitively is to have everything modeled out in a financial plan and proven with a high statistical likelihood that it’s all doable. If yes, and it’s a real verified yes, not an “I think”, go hunting.

 

[go_deep]

You could do all 4 three years ago for $190K. Now you are looking at $280K. So over the last 3 years, I have already lost $90K, or $30K/year.

7% of 300K is $21,000, which is a savings of $9,000 per year over the current inflation rate in a grand slam. I am going to pay all $300K back in 10, 11 years tops, so by the time I get done paying the loan off, the interest I will have paid will not be significant compared to the savings I will have realized by doing it all in 2025 and 2026 hunting seasons.

What do you a think a grand slam will cost in 2034?

Zero guarantees on a hunt. What if you don't kill a sheep on any of the hunts the first time around? Going to do a second mortgage?

Your math is wrong by the way. 11 years on $280k @7% will put you in the neighborhood of $425k after all interest and fees.

 

[bradb]

I did a re fi(2.4%) cash out to do my stone hunt. I am very happy I did. But I also have no kids and never married. So if I die with no money to my name I did good My long term girl friend said go for it. Heck I did short term loans for my other 2 sheep hunts, but only tell a couple very good short term investments cleared. I didn't put myself in a bad financial situation. If I had this money from these hunts in the markets would my financial situation be better YUP. But I would rather die with memories then dreams

 

[huntnful]

Sell house.
Put 1.5miilion in fixed account returning 5%/yr. Use 75k income to book two big horned hunts in 2024/25.

2024 Move to Alaska and establish residency. Spend everyday scouting sheep.
2024 book desert sheep hunt and kill ram in Mexico.
August 10th 2025 Kill Dall ram.
Aug 11th 2025 Move to BC and establish residency.
2025 book and kill BH ram in Alberta.
August 12th 2026 Kill stone ram.

Move back to wherever in fall of 2026 and restart your “life” with your completed slam.
Buy a house for 1.5million.

Log into Rokslide and post up the story of how you killed a slam in 2.5yrs without spending 300k

Fin.

low key genius response lol