When real estate investors look for property, cash flow is usually the first factor in the decision to buy, or not to buy. As things equal, as property prices increase, cash flow decreases. This is because investors tend to leverage up their properties, making as small downpayment as possible on each REO, or real estate owned. Higher prices, therefore, equal higher loan sizes which equals higher monthly mortgage payments. Now, in the past four years, the Euro has gained somewhere...
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[Source: The Mortgage Reports Blog]
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