borrowing your way out of debt

Services for Real Estate Pros with Castle United,

Dear Real Estate Investors: Several of our 1031 exchange customers have adopted this strategy: They are selling investment properties that they bought 2-5 years ago at a loss.  Then they are taking their remaining capital and reinvesting in new lower priced property, priced in today's lower market.  Of course they are using leverage when and where posible to boost rates of return on capital.  Of course this is a bet on a rebounding real estate market.  In the short term at least residential vacancy rates remain low.  What do you think? 

Comments (2)

James Engel
Keller Williams Realty Beverly Hills - Beverly Hills, CA
KW Beverly Hills

Hmmmm... Im not quite sure how I feel about that, but hey if it's working for them, then more power to them!

Jan 20, 2009 11:24 AM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Hi, Steven

   We invite you back to ActiveRain in the year 2017!

Mar 11, 2017 06:25 PM