Updated over 10 years ago on . Most recent reply
Re payment of downpayment
Im fairly new to all this so I could be totally missing the point but I find when I people work out the deal analysis no where does it show the repayment of their downpayment . Yes it could be cash of their own but don't you want to have least amount of your own money not tied into the property ?
I know if they bought below market value can get out in re financing. Say you bought at market value do you calculate in your expenses the re payment to your money you borrowed? If its hard money of course you must factor in. but how does it factor into whether the property is worth buying? after how many years do you want your downpayment back in your pocket? Say your roi per year is 10% but after u pay back yourself or hard money for the downpayment your down to 1% but your able to payback the downpayment in 5 years. What is proper practice?