Updated over 18 years ago on . Most recent reply
Will this work?
I have been thinking about this for the last 30 minutes, so I am probably wrong about my calculations.
First, set up an LLC.
Then, get a checking account at a bank and get a line of credit from them... say $100,000 at 17%.
Buy a house that is worth $125,000 after repairs for $50,000. (possible in my area)
Spend $25,000 bucks repairing it.
Get a loan secured by the house for $100,000.
Pay off the bank for the line of credit
Put $25,000 in the bank.
Enjoy the $125,000 dollar house with a $100,000 mortgage.
What do you think?