Comments on: The 1% Solution to Real Estate Investing http://www.doughroller.net/real-estate-investing/the-1-solution-to-real-estate-investing/ Money Management and Personal Finance | The Dough Roller Mon, 13 Feb 2012 05:44:53 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Logan http://www.doughroller.net/real-estate-investing/the-1-solution-to-real-estate-investing/comment-page-1/#comment-38209 Logan Thu, 30 Jun 2011 01:08:56 +0000 http://doughroller.net/2007/05/28/the-1-solution-to-real-estate-investing/#comment-38209 How are you able to finance nearly 100% of the purchase price? The only way I know how to do that is with 10% - 12% hard money, which will sustain the property but not cashflow or allow principle reduction. With 2-5 year balloon dates it is not a feasible investment if an equity position can not be carved out for re-finance in the future. Please advise, Thank You! Logan How are you able to finance nearly 100% of the purchase price? The only way I know how to do that is with 10% – 12% hard money, which will sustain the property but not cashflow or allow principle reduction. With 2-5 year balloon dates it is not a feasible investment if an equity position can not be carved out for re-finance in the future.

Please advise,

Thank You!

Logan

]]> By: The Carnival of Real Estate Investing at EquityScout.com « Los Angeles Investment Realestate http://www.doughroller.net/real-estate-investing/the-1-solution-to-real-estate-investing/comment-page-1/#comment-30692 The Carnival of Real Estate Investing at EquityScout.com « Los Angeles Investment Realestate Fri, 25 Mar 2011 06:34:31 +0000 http://doughroller.net/2007/05/28/the-1-solution-to-real-estate-investing/#comment-30692 [...] out the trio, The Dough Roller presents The 1% Solution to Real Estate Investing posted at The Dough Roller, saying, The 1% rule is a rule-of-thumb that has fallen out of favor in [...] [...] out the trio, The Dough Roller presents The 1% Solution to Real Estate Investing posted at The Dough Roller, saying, The 1% rule is a rule-of-thumb that has fallen out of favor in [...]

]]> By: The Carnival of Real Estate Investing at EquityScout.com :: Real Estate Tips http://www.doughroller.net/real-estate-investing/the-1-solution-to-real-estate-investing/comment-page-1/#comment-30536 The Carnival of Real Estate Investing at EquityScout.com :: Real Estate Tips Sun, 20 Mar 2011 00:33:44 +0000 http://doughroller.net/2007/05/28/the-1-solution-to-real-estate-investing/#comment-30536 [...] out the trio, The Dough Roller presents The 1% Solution to Real Estate Investing posted at The Dough Roller, saying, The 1% rule is a rule-of-thumb that has fallen out of favor in [...] [...] out the trio, The Dough Roller presents The 1% Solution to Real Estate Investing posted at The Dough Roller, saying, The 1% rule is a rule-of-thumb that has fallen out of favor in [...]

]]> By: DR http://www.doughroller.net/real-estate-investing/the-1-solution-to-real-estate-investing/comment-page-1/#comment-29 DR Thu, 07 Jun 2007 10:28:51 +0000 http://doughroller.net/2007/05/28/the-1-solution-to-real-estate-investing/#comment-29 Q, you make a good point. I'v found, generally speaking, that the better the neighborhood and nicer the home, the lower the cashflow. On the upside, not only is the property generally less of a management headache, but appreciation is generally better. That said, I'm surprised that a 4-unit property doesn't generate combined rents equal to or greater than 1% of the cost of the property. Multi-unit properties generally generate higher cashflows. Q, you make a good point. I’v found, generally speaking, that the better the neighborhood and nicer the home, the lower the cashflow. On the upside, not only is the property generally less of a management headache, but appreciation is generally better. That said, I’m surprised that a 4-unit property doesn’t generate combined rents equal to or greater than 1% of the cost of the property. Multi-unit properties generally generate higher cashflows.

]]> By: Q at $1 Million to My Name http://www.doughroller.net/real-estate-investing/the-1-solution-to-real-estate-investing/comment-page-1/#comment-27 Q at $1 Million to My Name Wed, 06 Jun 2007 22:01:17 +0000 http://doughroller.net/2007/05/28/the-1-solution-to-real-estate-investing/#comment-27 I would not use that as a property searching tool. My 4-family doesn't meet the criteria. It is true that if I had purchased in a seedier part of town, I could have bought an 8-family and set myself up for greater potential monthly cash flow. But I bought this building as a long-term, low-headache investment. It's in a great neighborhood - in fact, it's in my neighborhood, right across the alley from my house. Houses in my neighborhood range from $200,000 up to $500,000, and I'm in the Midwest. So it's a very decent neighborhood. I'll trade a little less cashflow for a beautiful solid building that will be a great long-term asset for my family. I would not use that as a property searching tool. My 4-family doesn’t meet the criteria. It is true that if I had purchased in a seedier part of town, I could have bought an 8-family and set myself up for greater potential monthly cash flow.

But I bought this building as a long-term, low-headache investment. It’s in a great neighborhood – in fact, it’s in my neighborhood, right across the alley from my house. Houses in my neighborhood range from $200,000 up to $500,000, and I’m in the Midwest. So it’s a very decent neighborhood. I’ll trade a little less cashflow for a beautiful solid building that will be a great long-term asset for my family.

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