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Real Estate Encyclopedia - Information and guides for real estate investors in the US
$100,000: What would you do?

$100,000: What would you do?

Short survey – Let’s say you have $100,000 to buy a property. What would you prefer to do: 1. Buy a property for this amount. 2. Take American financing (mortgage) and buy a property for, say, $300,000. 3. Take American financing (mortgage) and buy 2 properties, each for $150,000 (each with equity of $50,000 and the rest a loan). For the record, the return in each of the options is the same,…

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We've closed a deal - what do we do with the profit?

We've closed a deal - what do we do with the profit?

Post Five We closed a deal – what do we do with the profit? After we close a deal, we are left (ideally) with the capital we invested and with a profit. The question that is always asked is – what do we do now? Do we reinvest everything? Do we enjoy the profit and invest only the initial capital? Do we divide it between the two? I am of the opinion that if we don’t have to (note – “have to”, not “want”)…

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