Re: flipping rules


"Steve B" <SurDO2Diver@xxxxxxxxxxx> wrote in message
news:ekWRh.122399$115.121768@xxxxxxxxxxxxxxx

"Roger Shoaf" <shoaf@xxxxxxxxxxxxxx> wrote

Sure tenants can be a pain, but if you take the time to qualify them
then
you end up with some one else paying your mortgage for 20 or 30 years
and
when you do sell you have all of that lovely equity that has built up.

Do the math, Roger. We got refi house loans of 5-6%, took that money, and
get 12-25%. We net from 7 to 18%. Which we take and plow back into more
first deeds. You got $200k in equity? Borrow it against your house, and
put it in investments that will make you more than the interest you pay on
that loan. Of course, it is nice to have a guy that is a CFP, and who you
happened to graduate high school with in 1966.


I have seen people that were worth millions on paper one month be bankrupt
six months later. What happens is they leverage so much of their property
then they either get several bad tenants at one time or their property sits
vacant and for some reason the bank wants their money. It really does not
take long for the house of cards to come tumbling down.

If it were really easy to gurantee that an investment will always make more
than the mortgage payment your theory would make a great deal of sense, but
realestate is a long term proposition, and if you can't survive with a 50%
vacancy rate for 6 months then you can get in trouble real quick.


Zero money down use other people's money schemes? Where do you get this
stuff? I think you got the wrong thread on that one, bud.

First deeds are construction loans for projects and they are secured by
the
deed to the land. The borrower is limited to the % he can borrow against
the deed, usually a LOT less than 80%. So, even if they go belly up, the
lender makesAT LEAST an instant 20% by being the lein holder of the deed.
No, not lien holder, in some cases they actually hold the deed docs.


--
Roger Shoaf

Hope you got it that time. Do some reading. Talk to your banker. Talk
to
a CFP you can trust. You can do better with what you got to invest than
messing with renters and low percentage "schemes".


You might be doing well, but if the land you lend your borrowed money
against has to be foreclosed on and you have trouble finding a buyer at the
price you need to recoup your losses you can be upside down, don't kid
yourself. There is a reason those folks are willing to pay 12-25%.


--

Roger Shoaf

About the time I had mastered getting the toothpaste back in the tube, then
they come up with this striped stuff.



.

Relevant Pages

  • Re: usury?
    ... loans taken out between Jews. ... money, ... The whole fraternal feeling the law was supposed to foster was being ... Here's how you could buy a house with a heter iska: ...
    (soc.culture.jewish.moderated)
  • Re: OT: Poll Question
    ... but the lending instition is foreclosing on his house anyways...... ... And these low income loans have a better pay back rate than many ... I'm not saying the lenders are the only ones at fault. ... I don't see the point in punishing the people who took the money. ...
    (alt.sports.football.pro.ne-patriots)
  • Re: It Really Is Clinton III
    ... If you buy a $200K house are you going to walk away from $40K? ... It was the stupid actions of the banks and investment houses in their dealings with sub-prime loans. ... What a concept, banks doing their jobs loaning money without regards to race, religion, or gender. ...
    (rec.boats)
  • Re: An answer to foreclosure problems - arson
    ... Whether the house is sufficient to pay off the debt or not, ... They owe the money, OR the collateral. ... loans, no money down loans, interest only loans, etc., ... the lender represents nothing to the borrower - the ...
    (misc.survivalism)
  • Can You Connect The Dots
    ... His secret: The money was yours. ... Murtha, an 11-term western Pennsylvania Democratic congressman, ... passed by the powerful House subcommittee he chairs. ... Generous senior House and Senate Appropriations Committee members ...
    (soc.culture.usa)