@Henry Lazerow I don't care if you have horns and a tail as long as you can close! 

* option 1: hold cash    * this is just cumulative cashflow that you save up (add up cashflow every month)    * counting cash balances in net worth, this increases net worth by amount of cash saved every month (call it x)  * option 2: throw cash flow at principal on mortgage    * this decreases your liabilities (mortgage balance) by the exact amount that you would have increased your net worth by holding cash    * decreasing liabilities by x is same as increasing net worth by x, since net worth = assets - liabilities      * so at this point, we are in same spot (net-worth wise) as option 1      * however at this point, you have a lower outstanding loan balance which means that you will accrue less interest in the next month        * interest is technically a liability, even though it is a good liability in the inflationary environment that we have now      * therefore, above and beyond option 1, we are also decreasing our liability every month (monthly mortgage payment will stay thesame contractually, but mortgage will be paid off faster so there will be many terms of a $0 payment)        * decreasing a liability by y increases your net worth by y, therefore option 2 increases your net worth by x + y, whereas option 1 increases your net worth by x only* when looking at it from the initial condition of already having the asset and cashflow, it is like you are investing your excess cash in reducing your mortgage and getting a return of 3% on cash invested as opposed to just consuming your cash flow* this seems to be like investing profits for a 3% return, which would be like a conservative bond yield* I think it might make sense to invest in a stock-market index fund at 7-10% during the interim (except that you take on more risk and will pay taxes), until you have enough for a down payment that you can pull out and reinvest in more property  * of course, when reinvesting into paying down mortgage, there are no capital gains and also no risk, so that might make it just as good to do that* the short answer I think is that you are either using your cash flow (from previous real estate, stocks, job, or whatever) to consume (spend on stuff you want that keep net worth same or decrease it, but not make you more cashflow) or spend that cashflow on things that increase your net worth and/or pay you cash flow  * then paying down a mortgage that reduces payments by 3% is like buying a bond that returns 3% with no taxes (because overpaying a mortgage isn't taxed, and bond yields are) * continually doing this is like funneling your excess profits from other stuff back into your 3% tax-free bond-yield* the problem is that you lose this avenue when the loan balance actually hits $0, which is why long before this point, you actually refi, take out enough for a down payment to get another re investment working in parallel, then use both mortgages on properties as tax-free 3% bond yields (taking out another mortgage introduces a compounding effect here as well, beyond the 3% return)  * this would be like selling your bond portfolio with no capital gains taxes (bc refis/loans are tax-free, even though you pay some closing costs), buying as much re as you can with down payments, and "buying more bonds - which are actually your mortgages" such that your bond portfolio increases (because your LTVs on mortgages are higher) and you magically get a house out of the deal (and did I mention no taxes) * then rinse repeat* long-story short, I think that it might actually be a next-level genius strategy, after all* this is either the smartest thing I've heard in the past year or I'm completely chasing my tail* can someone poke holes in this?

I have to occupy the building due to one of the programs I used, but at the end of the day out of pocket for a 418k property was $5,681.Thanks to Tony Taylor (sorry couldn't figure out how to tag you tony) my realtor he's on bigger pockets look him on NOW, he really worked his tail off to get this deal done.

, are you getting a loan or seller carryback or some other creative financing mechanism.Step 2 Based on the criteria above start with Size, location, condition, down payment, return expectationsStep 3 At this point you should have narrowed down what you are looking for (if you don't narrow down your searches you'll chase your tail or at least shoot your eye out.Start looking at see if you can find any properties that matches your criteria.

Can someone explain to me the process of buying it subject to. i would love to fix the house and pay the seller when i sell. thank you all for your time.laurent Free and Clear HousesThink about "whole tailing" the house.You do a JV with the sellerbuy the house with a private mortgage, no payments for say 6 months (moratorium)you bring in private money for the rehabyou place a lien on the house for private lender money plus interest plus you jv fee say 5% of value or $10K minyou list the house with your agent, house sells, you get paid and private lender gets paidYou need a really good attorney, seller could sue you if you did not perform on the JV.

For this one, all I can really see is a possible whole-tail/wholesale deal.

We win on the long-tail keywords which are often less expensive.

Watermark has been around for about 3 years and basically have lower end assets for sale, seems to be the tail end of tapes that have been reworked.

I think his response is what applies to your situation: "Don't let the tax tail wag the investment dog."

They tend to seek out private landlords hoping their tails of woe will somehow win the hearts of such landlords.