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Updated almost 5 years ago on . Most recent reply

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Jacob Thomas Steelman
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Debt/ lending/ Strategies

Posted

Hello, relatively new investor. I've been researching strategies, flips, brrrr etc. My question about getting loans with debt. It seems if you build doors, you stack debt. Obviously your renters are paying for the property, plus your cash flow. Do you run your loans out full time say over 15 or 30 years? Or do you pay them off early? I'm just confused on the fact if you have, say 40 doors that positive cash flow , that in 20 years you would be in an awful amount of debt if you ran the loan out full term. And say you have 40 doors, debt still on them, will a bank still want to finance. I understand the doors will differ with single family homes, duplex etc. Just kind of wanting a general answer to help me understand better.

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Odie Ayaga
  • Specialist
  • Delran, NJ
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Odie Ayaga
  • Specialist
  • Delran, NJ
Replied

@Jacob Thomas Steelman the more I thought about it the answer better than my last or to add to it is once you start buying, the problem will solve itself. It's like worrying what you're going to do once you have 10 million dollars, figuring out all the steps along the way will make that easier to determine when the time comes.

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