Not much, especially if you don’t already own real estate. The federal government has a program called the FHA which provides banks with insurance in case a borrower defaults on his mortgage. Because of this insurance, banks are willing to loan up to 96.5% of the cost of a 2-4 unit building, as long as … Continue reading “How much cash do you need to buy your first apartment building?”
Category: Debt
Recourse vs. non-recourse
There is a major, major difference between recourse and non-recourse loans, as developers all over the country have found out to their distinct displeasure over the past few years. A recourse loan is a loan where one or more of the borrowers agrees to personally pay back the loan, regardless of what happens to the … Continue reading “Recourse vs. non-recourse”