Cash Flow on Property with 50K down?

Question

I answered an ad on where there was a real estate guy
who said that he could get me a $1000+ cash flow on a $1,000,000 property with 50K down. He said that because of my excellent credit (793 score) I could qualify for a very low interest loan and that rents would pay for it and still produce such a cash flow above that. He was talking about holiday rentals in Fla. Is this possible or is this a scam?

Answer 1

Well it's possible but you really really need to have a real estate attorney to make sure you are not getting slammed by the fine print. I'm sure if you call some attorneys they will offer you their service for a cut of the profit which I'm sure could be worth more than what is being offered you. Someone else is going to make money on your investment money so better to have legal representation to secure your holdings. Most likely what you have is someone who doesn't have the money or the credit so opts to use your money and your credit to have easy income. IF you have 50K to invest you can do something on your own without a middleman. You can buy a condo on the beach and rent it out all year long and make a fortune. My advice is "Do it Yourself". (with an attorney of course)

Answer 2

Scam.



$50k down on a $1mil property? This has been going around for awhile.



It is either 2 things:



1) Time Share - and you DO NOT make money off timeshares, especially bought directly from the resort, or



2) Putting a $50k deposit on preconstruction, where you have to wait 2-5 years (or for ever) before they build it.



There are hundreds of ways to make money in real estate, and hundred more real estate gurus trying to get you to lose money.



LOL! Of course, if you really want to make money in real estate and have $50k to spend, send me an email. I always need help financing transactions.

Answer 3

the mortgage at 7% on 950k will be 6327 alone! you have to take into account the taxes and up keep and probably management fees, because you didn't say how many units your million bucks buys!!!! It could generate a positive cash flow of 1000 but i would make damn sure i saw the property and the rental schedule before i put any money down. GOOD LUCK, but please do your homework!!!!

Answer 4

holiday rentals don't sound like very stable revenue - what happens in when school is in and people don't take vacations - sounds like no income or cash flow coming in to me - most of the time