Has anyone successfully used the cashflow mortgage technique to purchase apt.'s?? I learned the technique from a Karen Hanover study course.
Thanks
i don’t think that a Realtor should do a course before before using cash flow mortgage options, its a matter of experience and most of the Realtor s who are dealing with foreclosure properties use this option various time
whats a cash flow mortgage technique?
Cash flow mortgage is where you take loan to purchase a property at a higher interest rate.
The lender allows you to pay a lower interest for the first few years and the unpaid difference is added to the balance of the loan. For example you take a loan at say 9% and the lender lets you pay 4% interest for the first year and 5% the 2nd year and on but the difference payment of 5% and 4% in the first two years are added to the balance. Basically you are differing the payments to future by lowering current payments to keep the cash flow positive… hence the name cash flow mortgage… there are pitfalls with this technique though… you are increasing the loan balance as time pass so one needs to be sure what he/she is doing…
Pawan
I have read this article about cashflow mortgage and hopefully this helps you understand more about it.