That gives you no return at all on your down payment, which would generate $150 or more a month in the form of a CD.

now i'm not saying every broker or seller will ask you these questions, but i am saying that 85% of the professional commercial brokers or sellers will. they do this to separate the tire-kickers from the players is what they say.so for all the people on here that has experienced this when getting started, how were you able to either sidestep these questions or answer them in a creative way that made the broker or seller feel comfortable in going forward and disclosing certain info about the property.

Any advise on how much of a place I should be looking at, or if i should just stick the money in a CD..Thank youAl

OK, so same treatment for these deals:Example #1Rent: $800Expense: $400NOI: $400Payment: $432 (7%, 30 year, $65K)Cash flow: -$32With a down paymentPayment: $346 (7%, 30 year, $52K)Cash flow: $54Cash on cash return: 5.0%Just about CD rates.Example 2Rent: $1725Expense: $862Payment: $699 (7%, 30 year, 105K)Cash flow: $164Cash flow per unit $55So, that one's not too bad, though its not going to be $615/month in cash flow once you've factored in real world expenses.With 20% down, cash flow is $303 or 17.4% cash on cash.

Here is the rub, which is another unlawful, unethical, policy followed by lenders, (where's that *** **** watchdog..toothless, blind in one eye, sleeping under the porch but at least the somnabich- could come out and growl, just once in awhile) In California the lenders have until 4 years from the date you made your last payment to file suit and sue you for their losses in these cases according to Mortgage resolution Trust, one of the big players out here.

Chris, Like Mike said, which was my point, you need to get to know the players in your area.

And what cashflow we were getting on that equity was less than 2%...That meant at the time we would have made more money with that equity turned into cash and put into the bank in Cd's...We thought we were smart... all these high leveraged high return deals...Hey even those infinite deals...The ones like I do mostly nowadays... where you have little to No cash invested... and create equity...So, I learned...

It's a good starting point - find out who the real key players are in your area.

With an RE attorney writing the contract and terms you should be able to get more in interest than on those CD's.

Maybe put the money in a money market account or something very safe (maybe 6 month CD's if you're willing to lock the money up for a period of time to give you a cooling off/contemplation period) while you look for businesses to purchase and figure out if that is what you want to do.