(EMAILWIRE.COM, September 22, 2008 ) Lake Wylie, SC - When buying a property, in my market, you need to be in it at no more than 70% including purchase, rehab and closing costs.

Fix it up, re-finance it at 75% to 85% loan to value, and pull out the cash, which by the way is Tax Free cash, as you don’t pay tax on borrowed money. Then you can rent the property out at a positive cash flow and have Tax Free cash in your pocket.

Now here is a game plan that I suggest that you would do with that money.

First of all, every time you buy a property, look at that property in the sense of what bill can you pay off with this property? If you have outstanding credit cards, a car payment, student loans, even a home mortgage; what bill can you pay off with this house?

You are looking at the house, running the numbers, hopefully buying it a 70% or less, fixing it up, re-financing the property and pulling out $5,000, $10,000, $15,000 tax free cash; then you are going to pay off a bill.

Here is a quick example.

If you bought a property and after you purchase it, you were able to put $5,000 tax-free cash in your pocket and the property has a $200 a month cash flow. What if you take that cash and you pay off a credit card that also has a $200 payment? You have now just increased your cash flow from $200 a month to $400 a month and increased your assets by $5,000 by paying off that credit card. It is also probably going to raise your credit score, isn’t it?

Here is a suggestion: every time you buy property think about what bill you are going to pay off. After you pay off all of your consumer debt, your car payments, student loans and all that, then you start paying off your house. Once your personal residence is paid off, then you can go in and re-finance with a Home Equity Line of Credit at prime. You cannot get cheaper money than that. Then when you are making an offer to somebody and you ask them, “What is the least amount you can take if you can write you a check by Friday”, you can back it up because you can literally write a check on that Home Equity Line of Credit. That is a great feeling, having access to the cash, having the ability to write the check and knowing that you are debt free except for the properties that the tenants are paying for. Now that’s a million dollar idea!

For more articles and a 10 part e-course on how to create your own Ultimate Buying and Selling Machine! plus over 50 training audios, simply go to www.LarryGoinsFreeOffer.com where you will gain instant access to all of this plus 51 exclusive, editable Forms and Documents, two real estate investing eBooks, a personal coaching profile, nationwide wholesale property listings, weekly training teleconferences, a subscription to my weekly investing newsletter, Admission for two to Investor Palooza and much More!

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