Balloon Payment - Posted by Nora

Posted by Ed Garcia on December 10, 2001 at 10:20:54:

Nora,

Of course it could be a high-risk proposition if the property doesn’t appreciate enough to give you enough room, or build enough equity, to re-finance the property to payoff the balloon payment. That’s why you always hear me say, you make your money on the buy.
For more detail go to the “How-To Articles” and look up an article I wrote “Making money when you buy”.

If your purchase is solely based on appreciation, you’re an accident looking for a place to happen.

Ed Garcia

Balloon Payment - Posted by Nora

Posted by Nora on December 10, 2001 at 06:15:17:

Is obtaining a mortgage with a balloon payment a good idea? I would like to obtain properties with positive cash flow and hope they increase in value before I have to pay the balloon payment. Is this very risky and not a good idea or have people gone this route and succeeded?

Thanks again!

-Nora