Need advice .... - Posted by J.L.

Posted by de-ohio on July 26, 2003 at 12:44:03:

Congratulations, you are, in the real estate business. In an enviable position actually.

$180 per month cash flow, and substantial equity, not bad.

Now when you consider the cash flow after you pay off the house in nine years $______ monthly and you own a house worth $ _____ free and clear. Not bad. Not bad at all.

The way you can use this to your advantage the way we buy our properties. Eleven since Janurary.

You purchase a property and use the equity in your rental for the down payment. You can buy propereties for no money down, no cash out of your pocket. Bank finance 80%-90% and you have them take a second mortgage for the down payment against the rental property.

If you buy the properties right, significantly under FMV, you will have equity in each property, if you have enough you can continue this perpetually.

What we do is, buy rehab properties, rehab them, some we sell right away, some we rehab and keep. Rehabbing increases their value and creates a lot of equity that we can use for down payments.

Example; we purchased an abandoned 15 unit building with 12,500 sq ft retail space, for 180,000 we got the owner to carry the down payment. We borrowed another 100,000 to rehab it. After completion the building appraised for 525,000 giving us substantial equity to use for down payments on other properties we will buy.

Hope this helps


Need advice … - Posted by J.L.

Posted by J.L. on July 21, 2003 at 12:14:54:

I’ve noticed that there a lot of helpful individuals on this site and have decided to post my question so here it goes;
I think that I may already be in the R.E. business, but purely by accident… and now that I’m cosidering buying one the R.E. programs ( CS ) is the one I see on TV most of the time…I want to know how to proceed…I’m currently a homeowner of a brand new home, we’ve been in the house 2 months, secondly we’d own another home for 15 yrs, this 2nd home we didn’t sell since our savings and excellent credit score got us into this new home, so now I have a rental property with about 45% equity of the total value of the home that we could get out of it free and clear and since we still owe 55% on the house, which we figure we could pay it off in 9 years, us putting a little extra on the monthly mortgage payment… anyway… right now we get about 180.00 a month of positive cash flow every month, but like I said we add little and make a larger mortgage payment in order to finish paying it in 9 years… I believe that I am somehow sitting on a good R.E. starting point, but I just can’t see how to use it to my advantage, can someone please give their opinion…thanks
P.S. By the way, my wife is worried about using the rental property for this business and losing that house !! …thanks