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5 February 2025 | 16 replies
.- It's not profitable for them to search for under-market priced houses, figure out repairs needed or what other problem is pushing the price down and do even more for a newbie investor that has analysis-paralysis and may never buy anything.Some questions you'll want to share the answers to with any agent you choose:1) Are you paying cash or getting a mortgage?
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3 February 2025 | 12 replies
DSCR loans are based off of down payment, credit score and either actual or market rents so it helps to supercharge an investor's real estate goals and net worth.
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8 February 2025 | 14 replies
Too bad you can't buy something owner-occupied, put 5% down with the best interest rate, live in it for 12 months (and fix it up), rent it out and repeat the cycle.Here's some other info you might find useful:----------------------------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?
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27 January 2025 | 56 replies
(See this Colorado Sun article, about 3/4 of the way down.)
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29 January 2025 | 14 replies
If you put down 25%, that's equity, but it's also trapped - you can't use it for anything else.
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27 January 2025 | 7 replies
Here are some general guidelines: Lien Position1st Position LienEquityMinimum Down Payment of 20-25% (a 30% equity to sale price is preferred)Down Payment made in certified funds and not borrowedMaximum Funding of 70% ITV (Investment to Value)SeasoningMinimum of two monthly payments already made12 months or more preferredPayer CreditCredit Score of 650 or higherNo major derogatory trade lines (No 90-180+ days delinquent, foreclosure, repossession, bankruptcy, etc.)No decline in credit since purchase of businessTermsPrefer 60 months or lessMaximum of 72 monthsNo Balloon Payment preferredCash FlowBusiness has positive cash flow1.25 debt service coverage ratio preferred.DocumentationPersonal guarantee from a creditworthy individualStandard documents including Note, Security Agreement, and UCC-1 filing.Tax Returns on the business that substantiate profit and loss statements.OtherPayment history current and verifiablePayer Interview indicating buyer is satisfied with business and comfortable making paymentsMotivation for selling the note is not a result of a deteriorating businessConsideration of high risk businesses or geographic areasIn these situations, sometimes a partial is a better option.
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18 February 2025 | 35 replies
But one summer was the race riots and that was pretty wild.. my Grandfather would put me in front of the front seat and cover me with a blanket when we went down town to pick up grandma after she got off.. she worked at Gimbles..
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25 February 2025 | 7 replies
It’s got that Midwest vibe—cheap land, growing demand from remote workers and families—but with less competition and rents still climbing (5-7% yearly in some spots).For a Seattle-based investor, it’s a no-brainer: skip the $700k fixer-upper down the street and grab a passive stake in a rural 12-unit property pumping out cash flow from day one.
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25 February 2025 | 7 replies
Real estate presents opportunities for tax planning which essentially boil down to depreciation/cost recovery.
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25 February 2025 | 7 replies
The S-corp has no funds to acquire this property legitimately.And your rent payments are not a deductible expense for you personally, but they ARE taxable income to your S-corp, and the S-corp taxes are passed down to - guess whom?