Since the new principal balance is lower than the remaining principal on the loan I should make sure that the new payment on the LC is higher that the old loan payment as well.

Some funds can take more than 40% of the profit plus 5% of the principal investment.

Lenders have limitations such as concentrations of loans by category and to any one entity or borrower, principal, owner or director.

you don't mention how much principal paydown you have each month. few here on BP pay attention to that. you have a ton of income so that's not an issue with floating the payments. i'm assuming you have a decent amount of reserves.i rented out my primary last june, though those on BP said the numbers don't work.

yeah I get the idea that the percentage return could be the same for all investors yet their yield would differ because their principal amount is different.

Tyler Bond, when Ben said have the tenants buy equity for you, I believe he is just referring to the fact that their rental payments to you will exceed what you are paying in interest and principal to the bank for your mortgage.

I am a principal broker and owner of a commercial real estate firm.I understood the business side from owning businesses before I became licensed.

Assuming a 10% cap rate, you'd be looking at 100k NOI, plus another mortgage payment on the new property of $4,600 mo, leaving you with a net of $5,400 a month.And now you'll have to complexes that will continue paying down mortgages and continuing to appreciate.Here's what you have today:1 property:Value: 1milNOI minus mortg payment (2k): 4k per monthPrincipal Paydown: 18k/yrAppreciation (assumes 2%): 20k/yrHere's what you could have if you pull out 360k in equity and can get a 10cap complex worth 1mil with 30% down (300k).2 properties:Value: 2 milBLD 1: NOI minus 2 mortg payments (2k + 2,300 equity loan): 2,500BLD 1: Principal Paydown (2 mortgs): 18k/yr + 10k/yr = 28k/yrBLD 1 Appreciation: 20k/yrBLD 2: NOI (100k) minus mortg payment on 700k loan (4,600) : 5,400.BLD2: Principal Paydown: 20k/yrBLD2: Appreciation: 20k/yrTOTAL Monthly income (both properties): 8k/moTotal principal paydown: 48k/yrTotal Appreciation: 40k/yrAgain, I'm not sure if 1mil complexes in texas can be had at 10cap.

Most assets today are trading at a percentage of BPO (Broker Price Opinion) as opposed to UPB (Unpaid Principal Balance) because of the loss of equity in the marketplace.

The extra $100 goes to pay down principal on their mortgage.