If you are talking about purchasing property without equity in its current state, that would be my last choice. There would only be two reasons that I would purchase such a property which are as follows:
1. The property could be fixed up to provide a significant equity advantage.
2. The property may not have any equity, but it could cash flow well as a rental. There are some of these types of properties in my local area where the property is only worth so much, but it could be rented out for 100s of dollars more than what the payments would be on that property. This is a case where I would not hesitate to pay full price on a property, but I am currently looking at lower end housing.
I am told prefer equity for obvious reasons. But some will pursue a non-equity property and can still make a a profit but not by renting it out but. By creating equity and selling the place
Hmm, create equity? As someone else mentioned the only "real" way to create equity is by repairing the house. If you're talking about creating an inflated value and then private financing it, as long as your buyer is OK with that and you're not planning on selling the note that could be done. However, there are a lot of better ways to make a buck or two in this biz than that. Just my 2 cents.
If you are talking about purchasing property without equity in its current state, that would be my last choice. There would only be two reasons that I would purchase such a property which are as follows:
1. The property could be fixed up to provide a significant equity advantage.
2. The property may not have any equity, but it could cash flow well as a rental. There are some of these types of properties in my local area where the property is only worth so much, but it could be rented out for 100s of dollars more than what the payments would be on that property. This is a case where I would not hesitate to pay full price on a property, but I am currently looking at lower end housing.
Hope that answers your question!!
Thanks MIke
Alot of Preforeclosure experts
I am told prefer equity for obvious reasons. But some will pursue a non-equity property and can still make a a profit but not by renting it out but. By creating equity and selling the place
I am trying to find out how many do that
Thanks
Hmm, create equity? As someone else mentioned the only "real" way to create equity is by repairing the house. If you're talking about creating an inflated value and then private financing it, as long as your buyer is OK with that and you're not planning on selling the note that could be done. However, there are a lot of better ways to make a buck or two in this biz than that. Just my 2 cents.