From: Mark Laszczuk
Okay kids,
I had some random thoughts. I was checking out John Reed's site and read his thoughts on nothing down deals. Now, I know there are people here who believe in doing a deal for 106% of the purchase price, claiming they have put nothing into the deal.
Now, I know nothing of this strategy, but it seems to me that you are shooting yourself in the foot here. In the end, you have a loan or loans that are greater than the value of your property, and the interest payments would surely eventually exceed what you would have paid if you put in even 5% in the first place.
Is this correct, or is it way off? If it is correct, why do people believe it is a good idea to pay more in interest in the long run than putting down an initial deposit. Wouldn't that put your plans back?
Like I said, these are just random thoughts I don't really go for or against this strategy, just hoping someone can put it into perspective for me.
Mark
'no hat, some cattle'
Okay kids,
I had some random thoughts. I was checking out John Reed's site and read his thoughts on nothing down deals. Now, I know there are people here who believe in doing a deal for 106% of the purchase price, claiming they have put nothing into the deal.
Now, I know nothing of this strategy, but it seems to me that you are shooting yourself in the foot here. In the end, you have a loan or loans that are greater than the value of your property, and the interest payments would surely eventually exceed what you would have paid if you put in even 5% in the first place.
Is this correct, or is it way off? If it is correct, why do people believe it is a good idea to pay more in interest in the long run than putting down an initial deposit. Wouldn't that put your plans back?
Like I said, these are just random thoughts I don't really go for or against this strategy, just hoping someone can put it into perspective for me.
Mark
'no hat, some cattle'
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