Purchase price: $81,000 Cash invested: $30,000 I acquired this property at an 11% cap rate, which provides strong immediate cash flow.

I gotta say, I had a hard time deciding on the monthly rate and deposits.

Key Deal Points:Loan Amount: $88,000Lien Position: 1st position Purchase Price: $120,000Appraised Value: $250,000Interest Rate/Return: 11% annual returnTerm: 5-year balloon (meaning the entire principal and interest must be paid at the end of the term)LTV ratio: 35.2%---Licensed Lending company for contractsRMLO package completed on buyersServicing company for payment

No fee's when I access rate is a tad higher.

With some of my clients, I've seen discounts of 30% to 90%.Here is a real-life example: I invested in a $50K note; it was second TD but with significant equity (over $200K) protecting my investment. 

I started at $500 over LTR rates and bumped it up $50 in between each tenant until I felt like I hit the ceiling. 

My guess is if you can make the interest rates work, there will be dozens of these available in about 2-3 years when the loans start maturing.Good luck and best wishes. 

I would suspect once investors digest the higher rate environment and some of the hurricane damage is moved inventory will settle out in neutral territory. 

We've considered offering a discount for doing so but so far we haven't because for the most part everyone pays on time with no issues.

It gets complicated if you use a HELOC towards two separate projects as you would need to pro-rate the interest across the two projects.However, the answer would be yes, they would be deductible.