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Updated about 4 years ago on . Most recent reply

User Stats

206
Posts
83
Votes
Bobby Paquette
  • Real Estate Agent
  • Charleston, SC
83
Votes |
206
Posts

Using OPM and still getting cash flow

Bobby Paquette
  • Real Estate Agent
  • Charleston, SC
Posted

I am wondering how some people are making money in a deal when using other peoples money and it is NOT a flip.

Usually Minimum looking at a 4-5% loan to bank(if not all cash), 6-10% on the hard money lender or seller finance, then you factor in saving for Repairs/Maintenance/Capex/Vacancy/Property Management(If you don't do it yourself)

After you factor in all that money going out how are you still cash flowing? I can understand some rare examples but you gotta pay back a loan to the bank , loan to a person, and save for expense and you still cash flow?

I know it can be done I am just looking for some examples or maybe things I’m missing/not realizing! Looking forward to the responses!

  • Bobby Paquette
  • Most Popular Reply

    User Stats

    325
    Posts
    222
    Votes
    Erik Hatch
    • Rental Property Investor
    • USA
    222
    Votes |
    325
    Posts
    Erik Hatch
    • Rental Property Investor
    • USA
    Replied

    Add value and increase NOI. Cash out refi.

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