To expand on Charles' above comment; you can avoid assessing the FMV issues (within reason) simply by stating in the purchase contract what the price is for machinery, inventory and other assets are agreed to be.

Regarding disclosure and sophistication I would have to agree that more is better on both accounts if things go awry.

Expected W/T comes down to your ability in selecting good tenants, if some guy doesn't seem too sophisticated and he owns a Harley and it will fit through the door......well, some wheel them inside, if you can't pick'em better than that, you'll learn.And, who says dad would not like to have an office?

This means the collateral will be viewed under a microscope by a sophisticated note buyer at a required yield.

You also have to decide if you want a higher priced quality property with a more sophisticated tenant which usually has less cash flow but more appreciation on the back end OR are you willing to handle more low income tenants that need constant care to keep them on track for a higher cash flow return??

Exit #1 REIT Exit #2 sell to existing tenants once lending requirements loosen These are sophisticated investors using highly qualified local operators (deep knowledge of each neighborhood).

Ok finally I can do this post I wanted to tackle it before but i ran into some issues with getting the floor together.Ok so you have a floor that is relatively in good condition but there are a couple of boards that are damaged beyond repairWhat could cause such a thing.heavy machinery being dragged across the floor. fire damage.water damage. chemical spillIf you don't have the time or the money to redo the entire floor but it is just a few boards that are out of whack there is a way to tackle this job without a lot of effort and time. you dont have to do the whole floor. most people will tell you it is impossible to match stain and this is true it is really really difficult but there is a trick that you can do. it is called monochromatic color effect ( i just made that name up but it works )you will need a fine cutting tool like a multi-maxa brush or a rag and three or four colors of stainyou will use the multi-max tool to cut along the seams where the boards meet each othercut down into the seam cutting loose the tongue of the adjacent boardstake your time. if you are cutting a length of board and stopping before the board is finished. then make sure you stagger your lines so that you get the staggered look floors are meant to have.you will need to find wood that is of the same size..

Affiant further certifies that she has read or caused to be read to her the full facts of this affidavit, and understands its contents. 6.Affiant hereby confirms that this loan is being procured for business purposes by a business entity and that she, as the borrower, and/or the representative of the borrower, is a sophisticated investor engaged in the business of real estate investment and has had sufficient time to shop for prices, interest rates and terms for this loan.

You also validate via a questionnaire whether the potential lender is "accredited" vs "sophisticated" another big topic in and of itself.Each state has variations of how many accredited vs sophisticated investors you may borrow from.

I guess the appearance of my lawn made it self evident no herbicides/pesticides were *not* in use :) Given we were (and still are) under renovation, the timing was not ideal to have heavy machinery and asparagus share the same space.This year, I am thinking about letting them have access to the back yard at two of our rental properties.