In 2012, as the market struggled to improve, interest rates continued to fall. They were in the mid 4% range at this time.
I was keenly aware of this, especially since we were paying 6.5% interest on a seller-financed contract for a little office property that housed a janitorial firm.
I’d run the numbers on the property and realized we had a great opportunity.
Based upon the rent the tenant was currently paying and stabilizing cap rates, our property was now worth substantially more than we paid for it.
I’d read about refinancing a property and pulling cash out to purchase another property. This seemed like a perfect opportunity to make that happen.
I took the idea to my investing partner, Kevin. “What do you think?”
“It sounds like a great idea. Let’s do it."Read More