When buying a property, in my market, I need to be in it at no more than 70% including purchase, rehab and closing costs.
Fix it up, re-finance it at 75% to 85% loan to value, and pull out the cash, which by the way is Tax Free cash, as you don’t pay tax on borrowed money. Then you can rent the property out at a positive cash flow and have Tax Free cash in your pocket.
Now here is a game plan that I suggest that you would do with that money.
First of all, every time you buy a property, I want you to look at that property in the sense of what bill can I pay off with this property? If I have outstanding credit cards, a car payment, student loans, even a home mortgage; what bill can I pay off with this house?
You are looking at the house, running the numbers, hopefully buying it a 70% or less, fixing it up, re-financing the property and pulling out $5,000, $10,000, $15,000 tax free cash; then you are going to pay off a bill.
Let me just give you a quick example.
If you bought a property and after you […]
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More than 80 student lenders have stopped making frederally guaranteed student loans temporarily or permanently as a result of a distressed credit market.
According to a May 22 article in USA TODAY -
Sallie Mae0s shares jumped Wednesday after it became known that the Bush administration is preparing to help struggling lenders in the student lending market by having the government buy up their loans.
As families feel the increased cost of living fueled by raised prices in wheat, corn, fuel, and household consumer goods, many families that have children who are preparing to graduate and continue on to a college education are finding alternate ways to provide for tuition.
Individuals that are currently receiving payments from a lottery, annuity, or structured settlement are able to get a large cash lump sum to pay for many things including but not limited to tuition, credit card debt, new home purchase, and vehicle purchases.
Structured settlements saw their evolution in the early to mid 19800s when one time cash lump sum payments started to become the less attractive solution for many insurance companies.
Today, more and more individuals awarded settlements, or people collecting annuity and lottery payments have found that access to a large cash lump sum has […]
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