OfflineDigest this concept and see if it works for you...
Investor owns a paid for property worth $100K. Property cash-flows 1% or $1000 a month in rental income.
You offer $60K cash for the property. Assuming the Investor can earn 6% a month on his $60,000 cash... That would be $3600 a month cash-flow. Investor has cash and lots more cash-flow every month. Win-Win
Re-cap: $60,000 cash and $3600 a month cash-flow.
Of course, where to get 6% consistently every month..? Knowledge is Power!
Questions? Information is available upon request.
Decide if it is true and if it works for you.
__________________
Are you suggesting that owner take HELOC and lends(pml)at 6% month?
If not PM me info
Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools
Are you suggesting that the seller takes back a note for 60k and somebody pays him 6% monthly? This note is amortized right? I'm confused.
Maybe I haven't had enough coffee yet this morning, but I'm lost. If the prop. only cash flows $1000/mon., where's this other $2600/mon. supposed to come from? Plus, why would he sell for a 40% discount if he doesn't owe a dime on it? Starbucks, don't fail me now!
Paul: "I must not fear. Fear is the mind-killer. Fear is the little-death that brings total obliteration. I will face my fear. I will permit it to pass over me and through me. And when my fear is gone I will turn and face fear's path, and only I will remain."
Duke Leto: "I'll miss the sea, but a person needs new experiences. They jar something deep inside, allowing him to grow. Without change something sleeps inside us, and seldom awakens. The sleeper must awaken." - "Dune."
It looks like to me that somebody is mixing up their numbers or their definition of cash-flow and percentages?
Perhaps you are trying to calculate the capitalization rate?
(see: http://www.deangraziosi.com/articles/real-estate-investing-tips/capitali...)
Mark K.
Life Disclaimer: Past Failures are NOT indicative of Future Results.
Real Estate Glossary - Click Here for PDF
View My Everyday Blog - Click Here
show 6% per month on a 60k note = 3600 payment per month????? I am missing something here???
The monthly cash-flow doesn't change unless you increase the rent/lease amount or decrease expenses.
So if you buy a $100k property for $60k, you get instant equity and your Return on Investment (ROI) is higher than the original owner (according to the numbers you provided).
Please check your math.
Your pm that you sent me did not explain anything and the company practices that you described is nothing new. Is this some kind of multi-level marketing or affiliate venture that you are involved in?
One more thing, using the logic in your example scenario, what happens when the original $60,000 investment is paid off from 17 months of a "$3600" monthly cash-flow? Does the monthly cash-flow jump to $60,000 now because the original amount is paid off and you're making a 100% return on your investment....?
Investor owns a paid for property worth $100K. Property cash-flows 1% or $1000 a month in rental income.
You offer $60K cash for the property. Assuming the Investor can earn 6% a month on his $60,000 cash... That would be $3600 a month cash-flow. Investor has cash and lots more cash-flow every month. Win-Win
**Re-cap: $60,000 cash and $3600 a month cash-flow.**
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Mark K.
Life Disclaimer: Past Failures are NOT indicative of Future Results.
Real Estate Glossary - Click Here for PDF
View My Everyday Blog - Click Here