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!!!
Posted by Jasonrei on August 03, 2003 at 12:28:25:
I have about $850,000 in real estate debt. Depending on how things fall this month I might hit $1,000,000 in debt for the first time. Funny, I don’t feel any debt pressure. In fact, I wish I was about $10,000,000 in debt!
So, I wanted to know, what kind of debt do some of you have? I imagine some that visit this site have more debt than me on just ONE of your properties. Anyone have $1,000,000 of debt on a commercial property?
What does it matter? Is that something to be proud of? Does it make one a successful real estate investor by being $1,000,000 in debt? Perhaps turn that around, you aren’t $850,000 in real estate debt, but control $850,000 in real estate!
Re: How much debt do you have? - Posted by Jasonrei
Posted by Jasonrei on August 06, 2003 at 15:49:17:
Yes, I think having a lot of real estate debt might be something to be proud of, means you are taking action, whether profitable or not.
No, being in a lot of debt does not make one a successful real estate investor. I think debt drags a lot of real estate investors under.
It matters because I’d like to know what kind of real estate debt some of the regular visitors to this site have. Might give me additional insight into what others do to make money, maybe they’d even share experiences. If someone here had said they carried a lot of debt, I’d like to know how they got financing, what terms, their plans, etc. Likewise, I’d hoped to hear from someone who maybe controlled several million dollars in real estate but had $0 personal liability on it.