How can my company leverage $200,000.00? - Posted by Gary Larson

Posted by Ron (MD) on July 03, 2001 at 10:45:10:

…start with $200,000.


I do rehabs and have a lot of capital at risk at any one time. But, I’ve been doing it for over three years and have a real good idea of what I’m doing.

Also, despite the amount of money I have tied up in REI, I’m conservative by nature. It gives me the shivers to hear someone say he’s borrowed $200k and wants to use it as seed money to borrow even more, but isn’t sure for what specific purpose.

As the lead-in suggests, this is a business where you can make…or lose, a lot of money. Be sure you know what you’re doing before you find yourself at the wrong end of the old joke I paraphrased.

Good luck.

Ron Guy

How can my company leverage $200,000.00? - Posted by Gary Larson

Posted by Gary Larson on July 03, 2001 at 10:34:16:

A friend borrowed me $200,000 cash with 12% interest. I also started a company. I would like to use the money to purchase a properties. Lets say a rental property for 100k I buy for 60-70k cash. I would like to get a mortgage for the property to get my money back so I can buy more to expand. And rent the property out. Whats the best way to use cash when you have started a new company to use for credit, or is there a way so that i can expand and buy more properties? I hope i am making sence.

Re: How can my company leverage $200,000.00? - Posted by Ronald * Starr

Posted by Ronald * Starr on July 04, 2001 at 17:36:23:

Gary Larson-----

I can second Bud Branstetter’s post. I read your post and could not figure out would help you. Except about a year and a half of intense studying of real estate investing.

You’re not prepared. There is too much risk to go buying real estate when you are unprepared. People will love to relieve you of your stash.

Good Investing and Good Studying*Ron Starr

Give the money back - Posted by Bud Branstetter

Posted by Bud Branstetter on July 04, 2001 at 24:14:43:

No offense, but I don’t think you know how to invest it in RE to make money. Sure, you could buy rentals and make a return. You could even leverage it. There are 95% purchase money mortgages out there if you have good credit. If you don’t want to sign personally your SOL. Not so good credit-80% ltv at 9+%.

You could buy forclosures. Do you know your market for values? Can you evaluate repairs? Can you avoid being taken by contractors? Do you have a marketing plan to sell for cash.

You could do rehabs. Same as foreclosures in many cases except you have to do more looking for them.

You’ve heard the old saying if you have to ask the price you can’t afford it. If you have to ask how to invest it, you should not be investing it.