They have their own criteria and they're making a secured loan, so their primary consideration is not your capacity to repay, but the value of the underlying collateral.

A good article on insurance is http://www.bankrate.com/finance/insurance/renting-out-a-home-get-right-insurance-1.aspx2. create a note with interest for option payments, and get it with collateral in case they do not pay, every pay period, not every month.3.

Just because you might have 125% debt coverage and adequate collateral with good credit doesn't mean you have the ability to endless funding, lots of factors play in to the picture that are beyond your control. :)

If not, rent it out and save the monthly rental profit and in a few years, you will have equity in the property from paying down the mortgage with your tenant's rental income and that equity can be collateral for your downpayment on your next deal.Whatever way you go, don't be afraid to start slow and small right now.

Your 350 loan is a "blanket mortgage", there should be a relaese fee or amount required to be paid to release each property according to how they allocated the collateral value of each property.

Having money and making a loan may put you in the position as a lender/note holder. but having money to loan does not make you a lender or using other's money might have put you in the position as a broker, but that in itself doesn't make you a mortgage broker unless you have met the compliance issues of a brokerage operation.With you suggesting soliciting fundss as you did simply demonstrates a lack of legal requirements and your description of interests held in a collateral postion were really off base, so that too shows those here who do know that you are not a real mortgage broker as legally defined.

Chuck Mak On a project like this, I wouldn’t expect the banks to get excited over anything more than 50% LTV, which means that your collateral gas to be worth 800k – 1mil.Do you have construction experience?

Requirements for reserves, down payment, net worth, and cross-collateralization with other assets might be a challenge to meet if you are stretching.

Each deal can be sliced into a capital account accounting wise and seperate from others with collateral assignments.

Assets under $150K banks tend to discount more, and if you go for assets below $75K they start to discount even further due to the diminishing quality of the collateral.