The interest is a set percentage that is based on the balance due and is often bundled with the monthly installment of repaying the funding.

Hey BP, I have seen some people have been asked to give a down payment just to apply for a loan (in the last conversation I had , it was with an investor who needed a commercial loan) How common is this and why is that even asked before the loan has been given, would it apply to the balance eventually? 

Now as we know its totally illiquid and I just carry it on my balance sheet at a very low equity number..

Therefore, its your balance sheet/credit worthiness combined with the real estate (banks collateral) that will be considered in extending financing, not the LLC.

(I was 'permitted' to do all the work myself).Sold it with 50% down & we hold the note for the balance @ 5.75%. 

Oh and I can be analytical, I have a great sense of humor and I’m a Libra, so all about beautiful surroundings, balance, fairness and justice.

I have read about it over the years and while is seemed a big far-fetched when I was younger, I am now at a place where I can see the logic of the expansion over multiple properties - I think it was the BRRRR method that really sold me - where each property can contribute to the down payment of the next property (Still have a lot to learns about the mechanics of that and the balance of the extra monthly payment cost of the cash out re-finance, but I can visualize the logic of the concept).Sincerely,Joe

I have a loan broker who can help with 2nd position mortgages and I would only look for properties with high loan balances to avoid that scenario altogether. 

Prioritize constructing long-term wealth, striking a balance between immediate rewards and long-term objectives to generate passive income and lasting wealth.

I'm considering assuming this mortgage, either "subject to" or by transferring the property into a trust, where I would then buy a majority share and cover the remaining balance in cash.The complication arises from the fact that this existing mortgage is a VA loan.