Downstroke | Propertylogy

Downstroke

By on September 25, 2019

A downstroke is a real estate industry slang for the amount of down payment that is needed to acquire real property.

It is assumed that the closing costs associated with a deal would be included in the downstroke.

For example, if an investor needs to fork out 10% to acquire control over a distressed property, then it is said that the downstroke for this particular investment would be 10%.

It must be said that flippers who make a living from acquiring and seller houses can often use creative financing and flip a house without using any cash out of their own pockets.

While some people consider using other people’s money as zero downstroke, keep in mind that money is still required for transactions even though an investor has used none of his own money.

Using a low or no capital however, would result in a high return on investment.

In the broader investment industry, downstroke can be a term used to describe the funds required to enter into an investment.


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