Investor Mistakes that Can Really Bite: Interest Rate
by John Occhi REALTOR
Realtor Consultant to Foreclosure Investors
Minor mistakes can often make or break an otherwise great real estate investment deal. There are some very subtle differences in the way an investment deal is packaged that can have a ripple effect and can literally either cost or save you thousands of dollars over the lifetime of the particular deal. Conduct each real estate investment deal the same as the one before it and you will multiply either the savings or expense associated with the way you structured the deal.
Interest rate is one of the most critical factors in a long term "buy and hold" real estate investment. If you end up financing the deal for the wrong interest rate on your mortgage, it will cost you thousands and thousands of dollars over the life of the loan and real estate investment property.
The right interest rate can make the difference between positive cash flow and negative cash flow. Yes, you will still generate equity over time with most real estate investment deals, but having a positive cash flow is often the make or break criteria when analyzing an investment opportunity.
I hope this little nugget will at least cause you to think about your financing for your next real estate investment opportunity. If you would like to know more please feel free to contact me directly. I am not a "guru" selling books, CD's, DVD's and I don't even have my own seminar tour to invite you to. Like you, I am looking for serious individuals to partner with. My role is REALTOR®, focused primarily in Riverside County but licensed to buy and sell real estate all over the State of California... and yours is Investor. Yes, we can both do our job without the other, but why? Together we can create some much quicker profits for each other. So please, if you want help, consider me as your REALTOR®