If you boost leverage to 75% the cash in your pocket is even greater and the returns get boosted again.Now go forward in time a few years and you can do a few things you can never do with a stock:If the property has appreciated, take out another loan and put more money in your pocket.Or, you could sell the property you can use 1031 exchange to buy a much bigger property, reset the depreciation clock and pay no income taxes at that time. 

This is because, as adults, we ALL have *some* familiarity with cars and money and we know how the business world works!

Based on national averages, the home should rent for $1,500 or more.If you don't keep up with market rates you will attract lower-quality renters, you won't have money to make major repairs, and you'll eventually get behind on maintaining the property, which means it will appreciate slower, attract worse renters, rent for lower rates, etc.

If you are still interested in this deal after your research and thinking about the potential upside, then you can begin your 'pitch' by assuring the sellers that they'd save time AND money by dealing with you directly.

Cash. pooled money from investors.

It's great to have you here.Here are some recommendations for you:Find and connect with other BP members that are in your area: http://www.biggerpockets.com/m...Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/a...Read Beginner’s Guide: http://www.biggerpockets.com/r...Check out BP Money Podcast: https://www.biggerpockets.com/..

Hi Account Closed, I run a hard money group in Chicago and we fund BRRRR projects.These loans are typically structured similar to fix-and-flip loans - interest-only bridge loans that are repaid with the proceeds from the refinance following the completed renovation.

Like others said - you get a homestead exemption (if you do the work to file it), you get special financing (FHA, low money down), your insurance can be better...

Hard money loan How did you add value to the deal?

That's how agents make money, by bringing buyers and sellers together, and they should be compensated to that work.