Joe is presented with the choice to put a low down payment on his investment or a much higher down payment. Which option should he go with?
- [Instructor] So Joe chose the property…and then he decided to make an offer…and the offer was accepted.…His offer was for $5,000 above the listing price.…He knew there were other bids there…that were competing with him but,…he thought 5,000 would be just right.…So he ended up getting this deal…and he also spoke with several banks…and found out that one of the banks…that he's going to go with is willing to offer him…up to 80% financing at a 4% interest rate.…
Now Joe has the option to put in 20%,…because that's the minimum required…which would mean 28,000 out of the 140,000 purchase price.…Or he has the option to put more.…He can always put more down so…he could put 28,000 down or up to 75,000,…the total cash that he has available for investing.…Now should Joe just put 20% down or put more?…Maybe all 75,000 that he has into the down payment?…Let's take a look.…
So here are the options that Joe is looking at,…or two extreme options right?…He has to put an at least 20% down…and the most that he can put down…is the 75,000 that he has.…
Note: This course uses data and example properties from the United States, but the concepts taught and tools provided are just as useful for any market.
- Determining if real estate investment is right for you
- Choosing a market and a property
- Using financing
- Strategies for first-time investors
- Real estate market cycles
- Valuing a property
- Analyzing your market
- How leverage impacts investments
- Real estate investment case studies
Skill Level Intermediate
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Start here3m 29s
1. Case Study: Joe's First Investment
2. The Many Ways to Invest in Real Estate
3. Real Estate Market Cycles
4. How to Value a Property
5. Understanding Your Market
6. What Makes a Good Investment?
7. Understanding Leverage
8. Case Study: Rental Income Property Analysis
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