I carry a $1,000,000 liability policy on properties that I don’t own and am only optioning.

Also, some insurance policies will cover you when a tenant trashes the place.

In this market, if the payments are made in a timely fashion the odds of that lender initiating a call are precisely zero.

I asked if I could add an addendum for policies I typically have in my rentals, and he said yes, but then seemed negative on things I said I might want to add.I would be hesitant to sign an agreement without seeing the lease in advance.

So basically you can have money tied up for a couple years and draw zero interest.Also some states do not allow for you to take title to the property.

Its not like Enron where the value can go to zero..Unless you buy a home next to a gas station and the leak on your property totally destroys the value of your asset.

For me at least, I couldn't do it with an out of area mentor or coach, I wanted good access to the person and the deals, put my eyes on it, but I'm in Houston, which has a lot of inventory, I don't know where you live, if the inventory of coach mentor and deals will support it , or your risk tolerance for something that isn't local to where you live.

Hi everyone, my name is Oleg and I've always been intrigued by Real Estate ever since I was a kid. I'm 28 now (still a kid) and over the last few week I've been REALLY getting into the REI world. Lots of podcasts, boo...

All that debt will be a good deal when you get to pay it back with cheaper dollars after the impending inflation from the government's policy of cheap money kicks in.When you need to buy the wife's car buy a used car for cash-- car loan rates appear cheap but they are not because you're borrowing money for an asset that looses value rapidly.

Everyone's criteria and risk tolerance are different of course.$18,000 equity (20% of $80,000 + $2,000 in closing costs)Annual Income = $11,880 (includes 10% vacancy)Annual expenses ~$8,450 from above.