Comments on: The Road Ahead: Investment Goals http://btcf.ngifford.com/2006/12/27/2007-investment-goals/?utm_source=rss&utm_medium=rss&utm_campaign=2007-investment-goals Just another WordPress weblog Sun, 17 Apr 2011 15:44:55 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: N. Gifford http://btcf.ngifford.com/2006/12/27/2007-investment-goals/#comment-120 N. Gifford Tue, 09 Jan 2007 02:21:12 +0000 http://btcf.ngifford.com/?p=71#comment-120 Hi Joel, I appreciate your comment, thanks. My question to you is what about our credit scores? In your scenarios the property will foreclose or sell short, and will the bank not report this? In my personal case, I am in this for the cash flow. It is a steady trickle right now, but I plan to apply all cash flow to capital improvements and further investments for the next 5-10 years. This way my rental business is self-sufficient. I have 3 properties now, 2 take care of themselves with a $600/mo net income and the third is my principal residence with a 3-bedroom apartment that pays my primary mortgage. Hi Joel, I appreciate your comment, thanks.

My question to you is what about our credit scores? In your scenarios the property will foreclose or sell short, and will the bank not report this?

In my personal case, I am in this for the cash flow. It is a steady trickle right now, but I plan to apply all cash flow to capital improvements and further investments for the next 5-10 years. This way my rental business is self-sufficient. I have 3 properties now, 2 take care of themselves with a $600/mo net income and the third is my principal residence with a 3-bedroom apartment that pays my primary mortgage.

]]> By: HomeOwnerAdvocate http://btcf.ngifford.com/2006/12/27/2007-investment-goals/#comment-121 HomeOwnerAdvocate Tue, 09 Jan 2007 01:27:42 +0000 http://btcf.ngifford.com/?p=71#comment-121 Why are you looking to protect your assest(s) with a 5% ownership interest? If the market tanks by 10-15%, then you just lost all of your investment and the bank lost 5-10% of theirs. If you come in with 0 down, and the market tanks, you loose $0 and the bank loses 10-15% of their asset. If a 10-15% decrease in home prices is what your are expecting in your area, then your 5% wont matter if you have to sell; you'd still be looking at a short sale or foreclosure to get out of the deal. The only good reason to put in your own money that I can think of would be to enable the property to cash flow. And if it cash flows, you wont want to sell it in a down market anyway. Why are you looking to protect your assest(s) with a 5% ownership interest? If the market tanks by 10-15%, then you just lost all of your investment and the bank lost 5-10% of theirs. If you come in with 0 down, and the market tanks, you loose $0 and the bank loses 10-15% of their asset.
If a 10-15% decrease in home prices is what your are expecting in your area, then your 5% wont matter if you have to sell; you’d still be looking at a short sale or foreclosure to get out of the deal.
The only good reason to put in your own money that I can think of would be to enable the property to cash flow. And if it cash flows, you wont want to sell it in a down market anyway.

]]> By: 2007 Real Estate Goals Writing Project: Complete List of Submissions | Real Estate Investing for Real Blog http://btcf.ngifford.com/2006/12/27/2007-investment-goals/#comment-119 2007 Real Estate Goals Writing Project: Complete List of Submissions | Real Estate Investing for Real Blog Sun, 31 Dec 2006 02:51:22 +0000 http://btcf.ngifford.com/?p=71#comment-119 [...] The Road Ahead: Investment Goals by Nick Gifford [...] [...] The Road Ahead: Investment Goals by Nick Gifford [...]

]]>