Any other chicken investors out there?

[Michael Plante]

New member here

Wondering if there are any other investors who are too chicken to get loans for your real eatate investments like I am. 

I realize leveraging seems to be the name of the game, LO, wrap around etc etc.   

I just happen to prefer buying out right fixing up and selling with owner finance. 

So anyone else out there prefer this sort of investing?

[Anthony Gayden]

Originally posted by @Michael Plante:

Originally posted by @Anthony Gayden:

Michael Plante

That is an interesting strategy but unless you are already wealthy and have a lot of cash to invest that strategy is very limiting.

How many properties have you acquired using that method and how much did they cost?

I've spent a little over 1 mil

Properties are worth approx 1.7

 That is a lot of cash to have locked up. I'm sure the cash flow is good though.

My father had a similar strategy. He bought inexpensive homes cash and sold through owner financing. He got the monthly cash flow, but when the homes were finally paid off, he lost the cash flow and had no equity. So he had no wealth build up.

The only way I see your strategy working is if the properties are never paid off or if you are buying properties that do not appreciate at all (mobile homes). Otherwise you don't get any equity gains and you lose out on mortgage pay down as well. You also lose out on some of the tax benefits.