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| I think it comes down to leverage. My dad often says if he’d known what land values would do, he would have never sold an acre and he’d have used more leverage. Rather than using 50% down and selling off the bad land. He would have done 20% and just bought more. Warren buffet one time said he prbly should have used more leverage. More leverage the more you’ll experience the ups and downs. Less leverage and you won’t go as far but you’ll be more likely to hold on during the swings and not have to face decisions about selling off land. I guess my point being that you actually don’t need a crap load leverage to build equity. Cash flow can vary. And times can get tough. Having equity that’s paid for is more important than current payment projections on un paid for equity. | |
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Land payments
