All Forum Posts by: Larry K.

Thanks for the help everyone.
-Larry

Is there an offer form that is simpler than my realtors standard purchase and sale agreement(fewer pages, or one page). Something more like a commercial LOI. I am buying 2 familys in New Jersey. If I am going to make multiple offers this seems like so much paperwork for me and my realtor.

J Scott- Thanks for the explanation.

Cash on Cash Return related to this...

Doesn't the amount of cash you have in the deal compared to the debt come into play here?

As you increase your cash thereby reducing your debt you can increase the dollar per door amount,....

I think we could all agree that $100 per month with $5,000 in the deal is a good return (24%). While $100 per month with $30,000 in the deal is maybe not such as good deal (4%)

Should this be factored into consideration?

I am considering a full cash out refi also. Plus is a fixed low rate. Negative is higher cost to get in and a higher monthly payment even while I am not yet using it. I figure 200k at 5% will be 10k per year or $833 per month. I'd rather only have to make higher payments while I am generating some income from the borrowed money.

Thanks for that info Mike. That makes me feel better about going the HELOC route.

Question for you..... I am wondering if your HELOC had drawn money and was being repaid promptly/regularly when your bank began cutting the other's HELOCs. Or on the other hand was yours dormant/had not drawn any funds yet.

That is what I like about it also. I just have this concern that if there is a double dip in housing or some other event which leads lenders to tighten, then they might lessen it or even possibly freeze it. Perhaps if I see it coming though I may be able to write the check and deposit the money into my account before the freeze. This concern/fear is the only reason why I would consider a Home Eq Loan. Do you or anyone else have such a concern/fear? Does it seem irrational?

What is the best advice for pulling money out of your home to do a deal? Cash-out Refi OR Home Eq Loan OR HELOC