All Forum Posts by: Evan Cruz

Hi,

Is interest on a loan for a piece of real estate considered an amount owed on the mortgage of a property when calculating the equity for a piece of real estate?

From what I understand, equity on a property is the amount of money a property is worth minus the amount of money owed on the mortgage on the property.

At least one article has said that the principal remaining on the mortgage is the only component of the mortgage that is accounted for when determining the amount of money owed on the property’s mortgage when calculating the equity one has on a property.

I am not sold on just factoring a mortgage’s principal into the amount owed on a mortgage because if interest is also owed on the mortgage for the property, the interest should be accounted for in determining the amount of money owed on a mortgage, correct?

Thanks for your reply, Kenneth. Out of curiosity, what expenses do you use to find the max purchase price using something similar to the 70% rule or whatever other practice you use to find the max purchase price?

When estimating the maximum purchase price of a rental property using the 70% rule, do I subtract only estimated repairs from ARV*.7 when calculating the maximum purchase price or do I also subtract pre-rent holding costs and closing costs to find this maximum purchase price?

What is the difference between detached and attached single-family homes and does anyone have a picture of what each of these property types looks like? Also, is a one-story home a type of property style, and can detached and attached single-family homes be styles as well?

What does it mean to override a loan?

For using leverage to acquire properties, did banks, lenders, mortgage brokers, or potential partners require that you held a college degree in order to secure the loan that leveraged your properties? Also, what source of income did they require, like a business or a job, and in what range did they require it to be for you to secure the loan?

@Michael Guzik Thanks Mike, I appreciate the reply. I'm definitely going to look into it.

For using leverage to acquire properties, did banks, lenders, mortgage brokers, or potential partners require that you held a college degree in order to secure the loan that leveraged your properties? Also, what source of income did they require, like a business or a job, and in what range did they require it to be for you to secure the loan?

 That's it? 

  How does one value a multifamily property? What do I look at specifically and how do those pieces blend together to create a market value?