All Forum Posts by: Moises R Cosme

1. Finding the deal

2. Secure financing

3. Finding the market

4. Finding investors

5. Finding the broker

Find the right the deal, the rest typically falls into place. 

Reach out Austin Szlendak at Lendinghome, he may be able to help.  Austin is smart & does not waste time; we have a $2M line with them.  

Vemmanath, the question is a little confusing; are you asking if re financing an existing mortgage is a good option?  Or are you asking if it is a good option to cash out an existing property with equity to purchase an investment property is a good option?  

In general, the manner in which the mortgage is amortized will tell you if you should refinance or not.  As an example, if you have a mortgage that amortizes over 30 years and has front loaded interest refinancing in years 1 - 4 is probably an awful idea (80% of the payments you make during that period go to interest, so you are simply resetting a mortgage with very little principal having been paid down).  

With anything in finance it is all about looking at the repayment schedule and attempting to use money efficiently.  I hope this helps!!!  If it does, please give my post a vote. 

This looks amazing. 

I want to advocate for Math.  I am re posting my original response to this thread... Dave Ramsey is fantastic as a commentator, but on this issue the advice attributed to him is flat out wrong.  Here are two simple formulas to apply that will allow you to prove this out (look up the formulas, they are probably the most commonly used formulas in all of finance)

Buying with a mortgage is a more efficient use of your money. Two key calculations to prove this out:

ROI = Net Profit / Total Investment * 100

ROE (return on equity) = net income/equity

Borrowing will decrease the cash you put up & increase your return relative to the cash out.

Glad to help!!! 

Kostas, I am glad to point you in the right direction. Have a great day & wish you a ton of success!!! 

No problem Adam.  Last thing to consider...  Biggerpockets is an amazing community with lots of great people pulling off lot of different strategies and tactics BUT you should NOT be seduced by complexity or trying to do too much.  I am lucky to work with a lot of well to do clients (my practice as an Agent as distressed real estate) one thing they all have in common is patience and focus.  I have been through two cycles in RE, I did poorly through 06 - 2010 because I tried to do too much too quickly... This time around I am focused & I am doing really well.  Time is on your side... Investing is about leveraging your intelligence and resources so that your money works for you!!!  Good luck & I am glad you found my post helpful. 

Glad you found it useful Stacy!!!  Have a wonderful day!!! 

Glad to hear it!!!