Howdy Pardner From DFW

**SFDemon** · 06-16-2009, 06:40 PM

I'm interested in learning about real estate investing. Would like to learn as much as possible from all the knowledgeable people in this forum. My main interest is in learning about Contract for Deed or similar ways of buying and selling homes. My idea is to put down say 30 -50% down on a property, finance the remaining, then turn around and sell the property in a contract for deed, rent to own or a similar technique. Any advise would be greatly appreciated.

ah and have fun along the way! ;-)

**REITrainingWhse** · 06-18-2009, 08:13 AM

Originally Posted by SFDemon

I'm interested in learning about real estate investing. Would like to learn as much as possible from all the knowledgeable people in this forum.

Well, you can learn a lot here, plenty of experience and knowledge here...

Originally Posted by SFDemon

My main interest is in learning about Contract for Deed or similar ways of buying and selling homes. My idea is to put down say 30 -50% down on a property, finance the remaining, then turn around and sell the property in a contract for deed, rent to own or a similar technique.

Whoa!!! You sure need to learn... you are willing to drop 30 - 50% down and finance the rest... Yikes!!! That is not contract for deed that is worse than the conventional way of purchasing, where it is custom to put 20% down. (Sort of getting dizzy from that comment... 30 - 50%... I am feeling sick!)

Originally Posted by SFDemon

Any advise would be greatly appreciated.

Well, grasshopper... Where to start? Looks like it is ground-zero for you.

Let me ponder this one.

Later!

**SFDemon** · 06-20-2009, 01:42 PM

Thanxs for the post. However would you care to elaborate on your answers? I think I was left with more questions than answers after reading your reply.

What's wrong with having substantial equity on a property? I am not looking for a huge leverage. less leverage = less risk.

**REITrainingWhse** · 06-20-2009, 06:53 PM

Originally Posted by SFDemon

What's wrong with having substantial equity on a property? I am not looking for a huge leverage. less leverage = less risk.

You REALLY have to be kidding me, right?? C'mon you are joking... right??

Well, you DO know that RE investing as all about leverage... Do you think Mr. Trump doesn't leverage the crap out of his buildings? Ask Any RE investor, (who is making it [need to qualify]) and see if they are using other's peoples money and not their own... Heck, I have several units that I have NONE of my money in the deal.

If ANYONE thinks that leverage is a BAD thing, needs to read some books, like Rich Dad/Poor Dad, or any other type of RE investing book. You want your money WORKING for you, and where else can you get someone to give you $0.80 on the dollar for investing? What about the stock market? Bonds? Umm, gold? You will find it near impossible, if not impossible to find that type of leverage.

Now, again, who says leverage is bad. Would you rather have one house with 50% EQ, producing let's say $500.00 +CF (being liberal,) or three to four houses with 20% EQ, producing let's say $350.00 +CF (being conservative,) each, or $1,400? Which is the better investment?? Now if you didn't catch the benefit of leverage, I can't help you. Heck, if the lender would give me 100% financing, and it gave off +CF, I would take EVERY deal they gave me... that is INFINITE ROI (since you have $0.00 in the deal.)

RE investing is all about the cash flows and leveraging to maximize the greatest returns.

I haven't even gotten to your part of selling via contract for deed...

Later!