As you are acting as principal in the transaction, you do not need a RE license.

If a plan passes where the government shells out a bunch of money to write down principal and adjust rates to get people out of trouble what will happen to the rest of us?

I am an all cash investor/principal with $2 million per transaction that seeks to purchase substantially discounted real estate, builder closeouts, REO's and other opportunities with fast exit strategies throughout U.S.

Chris thanks for the info, chris i also found out that my thoughts were correct.there is no set value, the value of the property is based on what makes sense for you to achieve your investment goals (that's it).some will say to not rely on the cap rate for your purchase decision (which i agree), but to use it to compare to other similar properties that have sold in the area, which is actually not reliable because 1. there will be less comparables, 2. how properties were purchased vary from deal to deal, 3. the inner workings of most transactions are confidential.so the best way to analyze a deal (while using cap rates) is to add your financing terms into the picture (principal + interest and etc) and calculate what the deal is really worth to you.see the normal NOI/Asking price = cap rate is based on if someone were to pay all cash, this is the return they could expect first year, but paying all cash for a property doesn't happen all that often (bank funding will be use for a large portion of that cost).so i found the best way to use this formula and analyze my deals is by look at all factors but also including my financing terms with my desired return objectives into the picture to get a proper view and value to me.

Also I wanted to ask, with fixed rate mortgages, the payments stay the same, so does that mean that more and more of the principal is being paid by the payment and less and less interest time goes on?

Others pay a property management company and use something closer to the 50% number.So, from the remaining 50-60% of gross rents, you have to pay your mortgage (principal & interest), and the remainder, if any, goes into your pocket.The 40-50% number supposedly accounts for capital expenditures over a long time period for buy-and-hold investment properties.

So, you'll also have principal payments, too.There is no guarantee of appreciation.

You get permission to market the property, but you act as a principal in the transaction, you lease option, then you assign the deal.You are upfront with the seller, very transparent about your profit.You add your assignment fee to the exercise price.Once you assign & get the fee, you are out of it.All the risk is on the Seller.Challenge here: Getting Tenant Buyers Fee: Cash plus 12 month note most of the time.Positives: No guaranteeing anything, e.g. minor maintenance paid, rents paid.Negatives: No back end when TBer gets funded.

They separate each tenant into sub-accounts and forward monthly statements showing principal on each and interest accrued.

You need to be very careful to stay within license law, as well as not get into any conflict with your Principal Broker.