Posted by Frank on August 07, 2003 at 19:13:30:
There are many people out there who have millions of dollars in real estate without any personal liabilities. That’s because they have protected themselves through the use of LLCs.
As for how someone would get financing if they carried a lot of real estate debt, they would get financing by using creative means such as creating their own mortgage and sell to a note buyer or searching for private investors to partner up with.
Cashflow is the name of the game. If you have it, doesn’t matter how much debt you have in real estate as long as the month income exceeds the monthly liabilities, creating cashflow. Someone who gets dragged down by real estate debt didn’t do their homework in the first place! Due Dilegence!!!