Terence Zhao
Advice on Property Boundary Issue
2 October 2023 | 6 replies
Attached will better illustrate what I'm talking about.
Kurt Granroth
Why invest in a deal with a tiered Class A / Class B split?
1 December 2021 | 19 replies
A Simpler WayMy formula for determining the "tipping point" was illustrative but impractical, since it was near impossible to learn the Average Investment of each Class A investor and sometimes difficult to even discover the Total # of Investors.
Daniel C.
Hello from Philadelphia!
3 September 2020 | 14 replies
I bet there is some good correlation between the two illustrations.
Svetlana Kleinhenz
Cut off life and medical insurance to save money for investing?
29 May 2019 | 85 replies
Call the insurance company and ask for an up to date illustration of your policies.
Ashley Gish
Student loans or investment property
24 February 2023 | 172 replies
Again, this illustrates how little most understand inflation.
David C.
How are PML/HML's handling the insurance crunch?
28 September 2023 | 22 replies
I say somewhat because it has it's shortcomings, as illustrated in the memo "You Can't Eat IRR, by Howard Marks".
Michael Bayrakeri
Loan Terms:SF/MF 1-4 Rentals,LLC vs Individual w/ Only Property Cash Flow Considered?
5 October 2023 | 6 replies
If they will do a loan with less than 1, the pricing takes a hit.I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23It's a great way to increase your net worth and these loans can also be used to pull cash out of a property as it appreciates allowing you to reinvest money into new deals.
Kale Johnson
Looking For Markets To Invest In Outside of California
5 October 2023 | 16 replies
An example will illustrate the consequence.Suppose you purchase a property with an initial cash flow of $1,000 per month.
Mike Day
How do lenders count rent from your other properties when buying another?
14 October 2023 | 3 replies
I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23DSCR lenders generally let you vest either individually or as an LLC.
Stuart Udis
Financing Transactions in Difficult Interest Rate Environment
4 October 2023 | 3 replies
If they will do a loan with less than 1, the pricing takes a hit.I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23DSCR lenders generally let you vest either individually or as an LLC.