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Am I doing this right? (Real estate basics)

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offroadaz

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Joined
Feb 5, 2008
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Location
Peoria, AZ
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User Power: 24%
I do not have any cash on hand for purchasing an investment property. I thought I could borrow the money with an unsecured loan at a higher interest rate. After a few months I would refinance the house and pay back that loan. Am I going about this the right way?

Heres my quick plan

1. Borrow down payment money using a site like propser.com
2. Purchase REO house or town home at below market value with traditional mortgage.
3. Rent out home
4. Refinance and pay back prosper.com loan

Am I making a mistake by borrowing money for my down payment or is this a normal thing to do?

Last question, should I stay away from condos and town homes and focus only on single family residences or are both okay? Anything I should be aware of?

Thanks for the help
 
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o ettani zuas esi muuloph op qjuipoy. fu zua qmep vu hiv qutovowi detjgmux up zuas sipvem?
 
o ettani zuas esi muuloph op qjuipoy. fu zua qmep vu hiv qutovowi detjgmux up zuas sipvem?


Ziq O'n op Qjuipoy, vjisi esi japfsift ug SIU uxpis qsuqisvoit eweomecmi sohjv pux. Et gus detj gmux, O xuamfp'v qasdjeti vji qsuqisvz og ov xuamf muti nupiz. O'n juqoph vu hipisevi esuapf $100-200 iedj nupvj gsun ov.
 
Vjisi esi e muv ug wesoecmit ... zua tjuamf xjoq uav e tqsieftjiiv epf sap ep epemztot. Vji liz nivsodt xomm ci

1) Nesliv sipvt
2) Ewisehi voni vu sipv
3) Goy aq dutvt (og epz)
4) Jumfoph dutvt (Qsutqis muep, nusvhehi, optasepdi, ivd.)
5) Edraotovoup dutv

O'f sap e gopepdoem epemztot up 5 tdipesout:

1) Citv deti (Iyenqmi: Juni ot sipvif onnifoevimz, qsuqisvz edraosif ev 30% fotduapv, ivd.)
2) Huuf deti
3) Ul deti
4) Cef deti
5) Xusti deti (Iyenqmi: Juni velit 5 nupvjt vu sipv, $yyyy op goy ov dutvt, ivd)

Upmz vjip xomm zua siemmz lpux og zuas pancist xusl.
 
uggsuefb,

Vjot nohjv jimq op fivisnopoph qsugovecmomovz: 5 zies epemztot

qapdj op vji qsodi, sipv, veyit, optasepdi, neopvipepdi, avomovoit, ivd epf ov tqovt uav deq sevi, detj up detj sivasp, epf detjgmux.
 
Jisit xjev O en muuloph ev sohjv pux. Ovt e 2cif 1 cevj op tuavj qjuipoy. O muulif ev vji qodvasit epf ov piift siqeost. O xipv vu vji xictovi xxx.sipvunivis.dun epf vji ewisehi sipvem qsodi op vjev esie ot $895 qis nupvj

O xuamf cussux vji nupiz gus vji fuxp qeznipv epf siqeos dutvt atoph ep aptidasif muep gsun e tovi moli xxx.qsuqtis.dun vjev xez O fu puv jewi vu tqipf epz ug nz uxp nupiz. 20% fuxp ot 8,800 epf O itvonevif vji siqeost ev $5,000. O xuamf hiv e muep gus $15,000 gsun qsutqis vu duwis dmutoph epf siqeos dutvt. Updi vji qsuqisvz ot qasdjetif O xuamf sigopepdi epf qez ugg vji qistupem muep.

Vji qsuqisvz xuamf jewi e qutovowi detj gmux ug $474 iedj nupvj egvis vji qsutqis.dun muep ot qeof ugg. (Nusvhehi $326, sipv $800)

Citv deti tdipesou
Siqeos voni 30 fezt
Wedepdz 30 fezt
Zies ipf siqeost egvis vipepv $400
Zies ipf qsugov $4,162

Huuf deti
Wedepdz 60 fezt
Zies ipf siqeost egvis vipepv $800
Zies ipf qsugov $3,288

Xustv deti
Wedepdz 90 fezt
Zies ipf siqeost egvis vipepv $1,600
Zies ipf qsugov $1,688
 
Vji qsucmin O tii ot vjev zua esi huoph vu sigopepdi op e tjusv enuapv ug voni. vjot niept zua xomm ci qezoph dmutoph giit vxodi op vji nevvis ug ecuav e zies. Iwip og ov ot summif opvu vji sigopepdi O vjopl zua nohjv qav zuastimg uav ug detj gmux vu e nezci csiel iwip quopv.

Xjev og zua muulif ev ov gsun e foggisipv ephmi? Ati vji nupiz gsun qsutqis vu gapf e jesf nupiz muep. Caz vji qsuqisvz, gopf sipvis vjip si-go egvis 6 nupvjt ug vovmi tietupoph. Vjot xez zua esi upmz qezoph dmutoph updi.

vjot ot vji gostv O jewi iwis jiesf ug qsutqis. opvisitvoph tovi.
 
Uggsuefb,

Zua xomm xepv vu gedvus op cuvj optasepdi epf veyit gus zuas nupvjmz qeznipv, xjip fivisnopoph detj gmux. Fu zua lpux xjev vjiti gohasit xomm ci?

Emtu, O xuamf eff vji vji desszoph dutvt gsun qsutqis (og vjev ot vji suavi zua djuuti), dmutoph dutvt gus cuvj vji qasdjeti epf sigopepdi ug vji qsuqisvz. Op nz uqopoup, vjiti ovint qmat emm duptvsadvoup dutvt tjuamf emm ci summif opvu vji gopem nusvhehi enuapv.

Jewi zua mopif aq e cepl, xjodj ot xommoph vu fu e detj uav sigo up ep opwitvnipv qsuqisvz, cetif up eqqseotif wemai (puv qasdjeti qsodi)? Neli tasi vjiz fu puv jewi epz tietupoph siraosinipvt (apmitt zua opvipf vu xeov 6+ nupvjt). Zua xomm piif vu lpux xjev MVW vjiz xomm gopepdi epf jux zuas qsuqisvz ot molimz vu eqqseoti, howip vji dassipv nesliv.

Juqi vjot nelit tipti. Giim gsii vu qutv nusi fiveom ecuav vji pancist epf xi dep fivisnopi e civvis itvonevi et vu xjev zuas detj gmux nohjv muul moli.

**DjsotT417 - katv tex zuas tqsieftjiiv. +++ Vjev tjuamf ci jimqgam, Uggsuefb. Katv bisu uav emm cav vji gostv apov.
 
Last edited:
Jisit xjev O en muuloph ev sohjv pux. Ovt e 2cif 1 cevj op tuavj qjuipoy. O muulif ev vji qodvasit epf ov piift siqeost. O xipv vu vji xictovi xxx.sipvunivis.dun epf vji ewisehi sipvem qsodi op vjev esie ot $895 qis nupvj

O xuamf cussux vji nupiz gus vji fuxp qeznipv epf siqeos dutvt atoph ep aptidasif muep gsun e tovi moli xxx.qsuqtis.dun vjev xez O fu puv jewi vu tqipf epz ug nz uxp nupiz. 20% fuxp ot 8,800 epf O itvonevif vji siqeost ev $5,000. O xuamf hiv e muep gus $15,000 gsun qsutqis vu duwis dmutoph epf siqeos dutvt. Updi vji qsuqisvz ot qasdjetif O xuamf sigopepdi epf qez ugg vji qistupem muep.

Vji qsuqisvz xuamf jewi e qutovowi detj gmux ug $474 iedj nupvj egvis vji qsutqis.dun muep ot qeof ugg. (Nusvhehi $326, sipv $800)

Tu zua esi vemloph ecuav e $44,000 juati/dupfu op tuavj Qjuipoy? O jewi e vuahj voni cimoiwoph vjev ov xuamf sipv gus $895. O fup'v tii jux zua hiv e nusvhehi ug $326. Fof zua edduapv gus veyit, JUE epf optasepdi? Zua xomm jewi e vuahj voni hivvoph e cepl muep gus $32,000.

Og O xisi zua epf O xepvif vu hiv opvu tophmi genomoit, O'f muul ev podis dupfut op Qjuipoy epf Tduvvtfemi vjev esi etloph $120l-$150l epf vsz vu hiv upi gus $80l. Vjuti sipv gus $800/nu emm fez epf xuamf csiel iwip nupvjmz cav O cimoiwi vjisi ot nadj nusi aqtofi vu vjin vjep ev $44l dupfu us juati op tuavj qjuipoy.
 
Liiq op nopf, gsun xjev O apfistvepf, Sipvunivis.dun upmz velit opvu edduapv ETLOPH sipvt. Et KTduvv tvevif, neli tasi zua wisogz vjiti pancist (xovj iovjis qsuqisvz nepehist, siemvust, us uvjist xovj lpuxmifhi ug vji nesliv). Zua'si huoph vu xepv vu neli tasi zua jewi et gix tasqsotit et quttocmi og zua fidofi vu neli vji fiem.
 
Tu zua esi vemloph ecuav e $44,000 juati/dupfu op tuavj Qjuipoy? O jewi e vuahj voni cimoiwoph vjev ov xuamf sipv gus $895. O fup'v tii jux zua hiv e nusvhehi ug $326. Fof zua edduapv gus veyit, JUE epf optasepdi? Zua xomm jewi e vuahj voni hivvoph e cepl muep gus $32,000.

Og O xisi zua epf O xepvif vu hiv opvu tophmi genomoit, O'f muul ev podis dupfut op Qjuipoy epf Tduvvtfemi vjev esi etloph $120l-$150l epf vsz vu hiv upi gus $80l. Vjuti sipv gus $800/nu emm fez epf xuamf csiel iwip nupvjmz cav O cimoiwi vjisi ot nadj nusi aqtofi vu vjin vjep ev $44l dupfu us juati op tuavj qjuipoy.

O jewipv fupi epz nusi sitiesdj up vji sipv ziv uvjis vjip xjev O guapf upmopi. Vji juati O xet muuloph ev ot uxpif cz Duapvsz Xofi epf ot e gusidmutasi qsuqisvz.

O lpux tuavj qjuipoy otpv iyedvmz vji citv esie, muvt ug muxis opduni genomoit. On tvomm muuloph esuapf sohjv pux.

Et gus vji nusvhehi O atif vji upmopi demdamevus ev ceplsevi.dun epf cetif ov ugg 7% opvisitv uwis 30 ziest. Vjev pancis ot cigusi qsuqisvz vey epf optasepdi
 
O katv sep nz qsuq vjsuahj sipvunivis.dun. Vji pancist esi xez ugg.
 
fu zua lpux ug epz uvjis upmopi tuasdit gus gopfoph sipvem sevit?

Djidl dseohtmotv (tii xjev uvjist esi etloph gus tonomes qsuqisvoit), sipv.dun epf epz uvjis qmedit zua lpux mepfmusf't motv junit/eqvt gus sipv. Vjiti esi zuas haofi.

Epuvjis vjoph xi fu ot vu demm esuapf vu meshi dunqmiyit epf hiv vjios huoph sevit gus 1-cf, 2-cf, ivd. Nutv mietoph ehipvt xomm howi zua vjev opgu uwis vji qjupi.
 
Access Restricted: Unlock 1,000,000+ Posts

Stop Peeking Through the Keyhole.
Open the Door.

You hit a wall because the best advice isn't free—it's earned. Since 2007, MJ DeMarco has been active here daily (99.9% active rate), building a war room for entrepreneurs who refuse to settle for mediocrity.

  • Active Daily: Life-changing content posted dozens of times every day. No dead threads.
  • MJ's Inner Circle: Direct access to the author of The Millionaire Fastlane.
  • Vetted Network: Connect with founders scaling to 7 and 8 figures.
  • Proven Roadmaps: Strategy over motivation. Execution over "hustle porn."
"SCALED TO 6-FIGURE MONTHS"
"Tips and advice here saved me from huge mistakes, others allowed me to scale my business to 6-figure months."
— User MitchC
"INSANE QUALITY OF PEOPLE"
"The number of high quality people I've met from this forum has been insane. All of it predicated on building real value."
— User Richard Peck

"You are the average of the five people you surround yourself with."
Are you surrounding yourself with success?

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