All Forum Posts by: Brett Russell

@Syed Kamal , welcome to the site!

It's not that principle and interest payments are "excluded" just that they are considered later in the process.  Net operating income is supposed to be a function of the property itself independent of debt service costs since each investor will have different financing needs and requirements.

For example, if one investor can get a 30 year, conventional mortgage with a  very low interest rate, but another investor needs a commercial loan with a higher interest rate and only 25 year amortization, their debt service costs on the same property could be quite different.  The final cash flow numbers will work out differently in those 2 scenarios, but the deal didn't change.

But, to address your concern, yes you do need to make sure the net operating income does cover the debt service costs and leaves acceptable cashflow.

@Tammy Wise , go to "Network" in the blue navigation bar and choose "Find Members."  Plus and Pro members have added functionality.

@Shane W. , if someone isn't already participating in the thread, you have to be a colleague with them to @mention them.

@Tyrell Townsend , FYI, to get the mention feature to work properly, you have to start typing the name after the @ symbol (or just a ? after the @) and then wait a couple of seconds and choose the name from the list that pops up under the text entry box.  You can NOT just type the whole name.

@Peter Smith , I think if you involve her (to the extent she wants) and take it slow and show results, she'll come around.  At least I hope so, as that's sort of how my wife is at this point.  

@Ann Bellamy , you beat me to it... great minds...

@Jon McCarron , definitely agree with searching for "recommended books" in the search bar.  You'll find discussions as well as blog posts.

Furthermore, you should definitely consider listening to the BP podcast on your commute... tons of great information and each one is finished off by asking the guest for recommended books.

@Deepak Gupta , you'll need to confer with your legal and tax professionals because there will be a different answer for everyone and you'll find different opinions here.

My understanding, though, is that the "pass through" just refers to taxes, not liability.

@Daniel Alegre , if you start typing someone's name (like first 3 letters) it will show up also, you just have to give it a second.  Also, as Josh mentioned above, it will only give you the option to mention someone who has already posted in that thread or that you are colleagues with.

@Rob S. and @Daniel Alegre , you don't just type the @ symbol followed by the person's name, you have to start typing their name (or a ? ) and then click on their name from the box that pops up below the reply box.