TAKING EQUIITY OUT TO MULTIPLY

monopoly man

Hello

Taking equity out, if you have a property that you can get say 50k out, you would then use that cash to leverage other property. Now the thing is you need to be buying properties that already have equity built in to the deal when you buy them. So you need to buy them below value, so you can refinance to get the extra equity each deal as you go. After a while you will have the cash flow to skip the first part.

Jim Kendrick

I would suggest that you head to Borders and purchase or read a number of books on real estate investing. This will give you a better understanding of the concept of pyramiding your investments.

THANK YOU GUYS SO MUCH FOR THE INFO GUYS AND HAPPY THANKGIVING

Hi Jim, That is great advice on buying with equity. That is the only way to control your profit, buy it right. Leverage does allow you to borrow more money but additional debt also increases overall risk. I generally recommend that investors use a combination of fast cash such as assignments or buy and sell to generate cash and then on long term hold properties keep the leverage low enough that the unit will give positive cash flow from the rents. You can hang on to a property nearly forever if gives you positive cash flow. Even if property values go down you don't have to sell so long as you are able to make the payments. Values will come back, it just isn' predictable in the short term.