The average company only lasts ten years, and even large companies listed on the S&P 500 typically survive just 18 years.

So typically depreciation and expensing of costs usually happen on the placed in service date.

The performance metrics typically look strong. 

I see a few red flags and just want to know if these are typical provisions and I'll be facing a "take it or leave it" scenario with ny intermediary I hire.Please give me your thoughts, my gut says the QI wants overly broad protection from everything and that shouldn't include things like not verifying instructions are from me or for negligence or misconduct.Sample Terms1.

Deduct NEW property taxes after you buyDeduct home insurance costsDeduct maintenance percentage, typically 10%Deduct vacancy+tenant nonperformance percentage(we recommend 5% for Class A, 10% Class B, 20% Class C, good luck with Class D)Deduct whatever dollar/percentage of cashflow you wantNow, what you have left over is the amount for debt service.Enter it into a mortgage calculator, with current interest rate for an investment property, to determine your maximum mortgage amount.Divide the mortgage amount by either 75% or 80%, depending on the required down payment percentage - this is your tentative price to offer.If the property needs repairs, you'll want to deduct 110%-120% of the estimated repairs from this amount.Be sure to also research the ARV and make sure it's 10-20% higher than your tentative purchase price.As long as the ARV checks out, this is the purchase price to offer.It is probably significantly below the asking price.

This is why we analyze hundreds of deals but typically move forward with further research on fewer than 10.Be Mindful of Leverage: A lot of the risk in real estate comes from borrowing, not the asset itself.

Typically an investor will not get into that type of deal unless they get significant upside as there is a chance the entitlement does not work and all that $ ends up going to $0.

The values they have and the way they treat people (you) matters over the years, even more than the investment typically. 

How do you typically evaluate LTV ratios when deciding on funding, and do you have a specific comfort zone in terms of percentage or property type that you prefer to stay within?

Typically ranges from $250-1,000; most require $500.