Posted by Stan (Ga) on May 08, 2008 at 09:39:23:
In Reply to: Financial crunch - looking for answers posted by Rick Shepard on May 07, 2008 at 04:03:15:
Golden advice from Brandon. As you know, you are extremely leveraged. Whether it is financed or refi'd to that, you are approaching 100% financed. There is no such thing as 10% equity on a million plus portfolio. Try selling everyhting and I would bet you dollars to donuts you will not end up with 100k when you are complete. You need to examine this portfolio and determine which properties are perfoming well over the last six months to a year. Ditch the rest. I would make it a priority to get myself to about 65% to 75% (tops) position. That will allow cash flow when the times are good and not as bad when the times stink. Will also put you in better position going forward. And never, ever touch a property where you position is greter than 75% leverage (case by case basis, but a good starting point).