They acquire assets, that can be paper assets (notes, stocks, etc.), hard assets (properties, land, etc.), businesses or commodities (gold, silver, oil, etc.).

There is a cumbersome way to do it on paper forms, but you should not.The only sensible way is to submit your 1099s to the IRS online, however not directly with the IRS.

This location is in a 1mm population metro area, 230 units, and cost is about $1,800,000 all in.Limits of Insurance: Coverage:Liability and Medical Expenses$2,000,000/$4,000,000 Occurrence/Aggregate Comprehensive Business Liability$2,000,000 Any One Person Personal & Advertising Injury$4,000,000 Aggregate Products Completed Operations Aggregate$2,000,000 Any One Fire Fire Damage$25,000 Occurrence Customers' Goods Legal Liability Deductible: $0$25,000 Aggregate Sale and Disposal Liability Deductible: $1,000$10,000 Any One Person Medical Payments $1,000,000 Occurrence Hired Non-Owned$300,000 Each Employee Employee Benefits Liability$25,000/$25,000 Per Claim/Aggregate Employment Practices LiabilityLoc Class Desc Coverage Limit Ded Valuation Type 1 Self-StorageBlanket Building & Business Personal Replacement Cost Property $2,100,000 $25,000Earthquake IncludedSinkhole IncludedWindstorm or Hail Included 5%Business Income Actual Loss Sustained 24 MonthsPollution Clean-Up & Removal $100,000Employee Dishonesty $15,000Money & Securities - Inside $10,000Money & Securities - Outside $5,000Accounts Receivable $25,000Electronic Data $20,000Valuable Papers & Records $25,000Fine Arts $10,000Employee Personal Property $10,000Limited Pollutant Removal $25,000/$100,000Cosmetic Loss Limitation IncludedEquipment Breakdown Protection IncludedPremium, Fees, and Taxes: BOP Premium: $ 7,760.00Optional Terrorism Premium: $ 31.00Total Premium: $ 7,791.00Key notes:a.

@Davis Barrow they didn't want to extend your rate lock because they wanted you to buy more expensive paper which is a bit unfortunate.

I'm on year two, own 21 doors, on paper I should cashflow but I am in the negatives month after month right now. 

You can find higher ROI (on paper) here and probably in other cities…but the probability of actually collecting rent significantly decreases.

How did it feel signing those papers and knowing you just took that leap?

A lot of deals can look great on paper.

I'd suggest using a minimum of 25% of gross rent to cover expenses on paper until proven otherwise on any given property.Only you can decide how much cash flow is acceptable but I wouldn't consider something that essentially breaks even.

In future if you are refinancing I would sometimes look to pay a higher purchse price but have seller concessions to bring the price down on paper but not for comp purposes.