financing

[Nicholas Jasmine]

this will be my second property, but the problem I'm running into is financing.  The bank approved me up to 100k, but they could not go any lower than 55k.  Now we have been shopping around, but does anyone have advice on this?  The property we want is 42k.

[Franklin Romine]

@Nicholas Jasmine When your in accumulation mode of buying properties with the good cheap debt... the 1-10 loans that are the easiest... try to create more debt by targeting properties that are more expensive but also cash flow just as good as the 45K properties.  I  like the 45K properties, even though they have mostly dried up around my target area in Fresno.... but I like the 100k properties more when you have cheap long term debt. 

I guess my point is creating 10 loans with a total combined debt of $1,000,000 to me is better than creating 10 loans with a total combined debt of $500K.  Yes this sounds like crazy talk but when we are in accumulation mode of buying and holding real estate for the long term, our objective is lots of good debt.... that cash flows, paying down mortgages,  and creating equity = new net worth.  Do not read into my message that I'm telling anyone to spiral out of control.

Frank R