The deal was incidently no money out of my pocket as I used the increased equity spread from financing the 14 individual units as investment condos versus buying the building as a single apartment based on cap rate.

I like all forms of developing, but why do it this way when there is less overhead and out of pocket expenses other ways.Thanks for the contact names, I will keep it in mind for the future.

Nightowl, there are several strategies to make money in real estate with little or no money out of your pocket.

We bought a duplex for rental purposes with about a $1,000 out of pocket, and then we started doing rehabs (fix up and resell) to build up capital to fund more rentals.

I currently have over $100,000 in remodeling costs on these different complexes out of my own pocket, and I have another $100,000 in second liens on them that I also used to rehab them.

take these #'s for exampleARV=200KPurchase price of home = 100KAfter figuring all of the soft, closing, title, taxes, insurance, points paid, Interest for 1 year and the draw interest...I calculated that you would have around 17K to work with in rehabing the home within the loan and you may have to come out of pocket to finish it.... and you haven't even paid the sell side closing costs and broker fee.Just my $.02

I have about half of the cash in pocket so my holdover isn't too high.

Yet, another newbie to Bigger Pockets.

If I did not offer a low enough amount, what would happen is that I would pay the difference out of MY OWN POCKET.

I have no equity (this is the opposite of money in the wallet or bank right?)