This week I started my property hunt in Ecuador on my $30,000 skin-tight budget. First step, secure financing.
The beauty of investing in Ecuador is that I actually can find a desirable investment with just the $30,000 cash on hand at the moment… no hefty mortgages needed.
But, when property flipping, “leverage” is important to consider. The rule of “leverage” when used by property investors basically means it’s always better to use someone else’s money because your overall return on investment (ROI) can increase. I agree, although the level of risk does increase when using others money.
Some experienced property flippers like “hard money”, or money attained from private lenders. I don’t. I’ve found hard money lenders to be extremely controlling, to the point where I almost feel like I’ve become their employee.
And taking on partners can be a bit of a risk too. It’s true that the worst business model is the partnership… most end badly.
So how did I secure a quick $20,800 in interest-free money this week for my current Ecuador property hunt?
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