Category: 
July 23, 2010Purchases can only be used for real estate purchases such as,investment properties,new construction,rehab,condos etc.
Why would I pay anybody anything for the ability to borrow???
Pay 50k so I have the RIGHT to borrow $1mm????
Sounds really silly.
I can fill out a mortgage app or loan app FOR FREE and obtain the right to borrow money.
Does this 50k sound like a good deal to you or something???? I believe you are not really thinking straight on this!
Horaayy..there are 3 comment(s) for me so far ;)
I don’t think so, no. It’s only credit, not money. $50,000.00 seems a lot to pay for the right to borrow money.
References :
Why would I pay anybody anything for the ability to borrow???
Pay 50k so I have the RIGHT to borrow $1mm????
Sounds really silly.
I can fill out a mortgage app or loan app FOR FREE and obtain the right to borrow money.
Does this 50k sound like a good deal to you or something???? I believe you are not really thinking straight on this!
References :
Hi Jordan,
It’s called utilizing debt capital.
If you could not normally achieve a loan that size.
Sure, roll that 50k into the total loan figuratively speaking. Find out what the LOC ( Line of Credit) rate is, IE: Prime plus a margin. Prime right now is 8.25% and the margin would be anything above that. Prime plus 3, would then equal 11.25%.
You could then determine what the APR is.
Here’s the tricky part, you have to find the RIGHT TRANSACTION to be able to realize a good ROI. (Return on Investment)
Good Luck,
~Trey
References :
Business Owner