All Forum Posts by: Pete T.

Thanks for the input- we are looking to do a quick cash sale of a different property, just bc it will be easier and quicker.

I was offered 60k to assume a recently refinanced property.  Is there anyway to structure this to receive the money prior to closing?  The buyer is willing and familiar with the property and me.  The refi is assumable but undergoes the same process as a typical loan, so not really seeing any advantage for the buyer.  My concern is time.  Thanks.

Not sure how that percentage was calculated either.

It's not 648k.  Those are future payments.  The "net worth" would be the market value.  Future money is always worth less than money now.  No on would pay 648k for something that might pay 648k over 4 years.

People use these justifications because our first instinct is to protect ourselves.  If your being honest, you straight up want to steal.  The BIG guys always need to charge more to pay for everyone targeting them.  A bank should have No responsibility to make bad loans.  Your rent is no indication of what you can afford to pay.  The same attitude is the real reason the housing market collapsed.

I challenge you to find one successful person on this site that hadn't used debt.  Of course there is good debt.  The spread scenario above is the simplest way to explain it.  Yes, you need to be careful with debt, but I don't think you fully understand debt if you believe it is more risky.  In fact, when you mention someone doesn't pay, now you are bankrupt, you are referring to improper reserves, not a debt issue.  You are in the same ballpark if you lose your job.  Take a guess how many things have to go wrong with 50 leveraged buildings or 200 or more...

That is the reason they typically want 2 yrs of rental income to prevent someone pulling a couple of months of show and then are stuck w/ the mess.  Plus it shows stability.

every market is different.  Knowing your market makes it easy to recognize value.  Make sure you are counting all of the expenses and be conservative- bc repairs don't come out $50 a month.

people make money wholesaling.  it depends on your goals, your time, and your money.  it pays to be connected.

not worth it IMO to use a commercial loan to purchase two properties, plus that is whole different criteria than buying residential.  a 203k loan could be used to include construction costs, but it is a pain and will make your offer weaker for sure.