New Investor Needs Help! (Lots of Help!) - Posted by Dave Jackson

Real Estate Investing Real Estate Financing
1

Posted by kelly/az on April 18, 2003 at 13:08:50:

I agree with Mr. Strange. Besides the very first thing you need to do as a real estate investor is keeping your personal overhead low. You can’t take many risks if you are house poor. And don’t forget you can look for preforeclosure property and properties with equity for yourself and use the same 30% formula as well. Good Luck and yes take number 3.

kelly/az

2

New Investor Needs Help! (Lots of Help!) - Posted by Dave Jackson

Posted by Dave Jackson on April 17, 2003 at 19:06:26:

Here’s the deal…
I’m working on buying a beach condo in Florida (to live in).
I estimate the value to be $194,000 to $200,000 (depending on the appraiser). It’s Free & Clear, & sellers won’t sell for less than $180,000. They are considering taking back a second on 25% of this. (they’ve not agreed to this, yet)
The only way I think I can afford this property, is to get an interest-only loan (LIBOR or a 12-MTA)

  1. Anyone have the pros/cons on interest-only loans?
  2. If they agree to carry back part of the deal…what are the ways I can structure this?
  3. Should I walk & find a property that I CAN REALLY AFFORD?
    Please help me out, guys!
    Thanks!
3

Re: New Investor Needs Help! (Lots of Help!) - Posted by James Strange

Posted by James Strange on April 18, 2003 at 11:48:08:

To be honest you should do number three. If the only way that you can afford the place is with an interest only program then you can not afford the place. What will you do when you have to start making payments that include a principal payment?

James Strange

4

Re: New Investor Needs Help! (Lots of Help!) - Posted by Ron

Posted by Ron on April 20, 2003 at 03:19:32:

I’d walk away.