Posted by rick on November 22, 2001 at 15:18:04:
thank you so much! i will buy it this weekend=)
conventional loan vs onwer finance - Posted by rick
Posted by rick on November 22, 2001 at 09:19:23:
i have sudied carltons course and have numerous books. i bought my first single family rental and got a great price but got a 6 and a half percent conventional bank loan. my question is if i have great credit and funds and can get a good price on a home is a convetional bank mortgage o.k? it’s not too creative. and i was also wondering…since i have good credit is it ethical to have the seller to let me spread my down payment out even with a conventional loan. i can then then pay my down payment in installments with rent generated money…thanks=)
Re: conventional loan vs onwer finance - Posted by MikeD
Posted by MikeD on November 22, 2001 at 13:16:42:
Rick - Congratulations on your first SFH. If you have unlimited funds to put down, there is nothing wrong with conventional loans. (Actually, there is nothing wrong with conventional loans, period.) In your reading, you must have come across “return on cash.” Your goal is to buy as many properties as you can that will cash flow for as little money out of pocket as you can. If you can get a motivated seller to spread the down payment out, why shouldn’t you let the tenant make the payments via rent? There is nothing unethical about that. I would suggest you read Robert Allen’s “Nothing Down for the 90’s.” He could certainly buy properties for all cash, and yet he chooses to buy them creatively. There may come a time when you cannot get bank financing, and then your lessons learned in creative financing will come in incredibly handy. I have bought properties both conventionally and creatively. Good luck and good investing - welcome to the circle.