Posted by PBoone on January 04, 1999 at 17:23:44:
Your second example answers your first question. confused ? I will try to explain only my experience.
Your first question relating to selling and buying.
it is true that the only time you make (cash in hand) money is to sell, but for example if you purchase a 100,000 home the last 20% or 20,000 is what is commonly called a “dead zone” for investment it looks good when you tell friends and family or do infomercials about “net worth”. This last 20% is useless until you sell. This is why money is made when you purchase. You must purchase at least below that 80% LTV 70% is more of what we look for, and again if your parents were in the position of 70-80% LTV they would not have to sit on the property they could unload quickly.