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Updated about 4 years ago,
Using OPM and Cash Flow
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!