Eqiuty % question... - Posted by Marie /St L


Posted by Stacy (AZ) on February 23, 1999 at 16:01:27:

It depends on the strategy you want to focus on. If you were going to Lease/Option the property, a low equity position (5% for example) may work just fine, once you analyze the numbers. However, if you are going to do a wholesale flip, you would generally be looking for sellers with about a 50% equity position. If you were going to buy and hold, the equity position is not as important as the amount of positive cash-flow you would realize. You’ll have to learn a strategy or two before considering buying a property. You must make your profit when you buy, so you have to know what you are doing and how you will realize your profit.



Eqiuty % question… - Posted by Marie /St L

Posted by Marie /St L on February 23, 1999 at 15:07:43:

I’m just starting out as an REI. Question, how much equity should a seller have in a property before a buyer considers it? Or does it matter?

Thanks in advance!