- Joined
- Jul 30, 2011
- Messages
- 77
I just listened to a teleseminar by Savannah Ross (Rich Mom) and wondering just how realistic it is. Here are the details;
Bought property (fourplex) at $160 K, 20% down of $32 K and mortgage of $128 K. Cashflows at $1,000/month
Had it quickly re-appraised at $200 K so refinanced with 20% down at $40 K and new mortgage of $160 K. Cashflow decreases to $800/month
[At this point, she even mentioned that at times she can get this property re-appraised in a week - is this possible? Also, can the original mortgage be closed that quickly?]
She pulled $32 K of equity out of this property and said it's almost like she got this for 'free'. Then she used this $32 K as a down payment on a second similar property as the first.
She repeated this process of pulling out $32 K each time to buy a total of four properties.
In a year's time, each of these four properties got re-appraised at $291 K so she refinanced each one with 20% down at $58 K and mortgage of $233 K each. Cashflow on each down to about $570/month. She pulls out $73 K from each one.
She then uses the $73 K pulled from each of the fourplexes and uses it as 20% down payment to buy a property worth $1.4 Million.
Total portfolio now 4 fourplexes at $291 K each plus the $1.4 M one equals over $2.5 M.
These were the numbers from her case. Is this case realistic?
Bought property (fourplex) at $160 K, 20% down of $32 K and mortgage of $128 K. Cashflows at $1,000/month
Had it quickly re-appraised at $200 K so refinanced with 20% down at $40 K and new mortgage of $160 K. Cashflow decreases to $800/month
[At this point, she even mentioned that at times she can get this property re-appraised in a week - is this possible? Also, can the original mortgage be closed that quickly?]
She pulled $32 K of equity out of this property and said it's almost like she got this for 'free'. Then she used this $32 K as a down payment on a second similar property as the first.
She repeated this process of pulling out $32 K each time to buy a total of four properties.
In a year's time, each of these four properties got re-appraised at $291 K so she refinanced each one with 20% down at $58 K and mortgage of $233 K each. Cashflow on each down to about $570/month. She pulls out $73 K from each one.
She then uses the $73 K pulled from each of the fourplexes and uses it as 20% down payment to buy a property worth $1.4 Million.
Total portfolio now 4 fourplexes at $291 K each plus the $1.4 M one equals over $2.5 M.
These were the numbers from her case. Is this case realistic?