Finance Your Real Estate Investment Properties
Posted by priscilya
Copyright Peter DoblerUnlike traditional residential real estate mortgages, realestate investment financing is way more creative and offers moreoptions than you think. The golden rule in real estateinvestment is OPM Other People's Money.I have enough money; shouldn't I buy my real estate investmentfor cash? No, I absolutely advice against investing large sumsof cash into a single real estate investment. There are tworeasons why not. First, you give away most of your profits bynot leveraging your real estate investment. Second, it is fartoo risky to put every egg into one basket.Let me explain the leverage issue for a moment. I will give youan example of a , investment property that typicallyincreases its value appreciates by average a year. Maybemore, maybe less depending where you live. Paying all cash forthis property will yield in a appreciation profit plus thenet profit from renting the place. Now you're looking at roughly of returns.If yo...
