These loans are based more on the property's income potential rather than your personal financials, though your personal credit might still play a role, especially if your LLC is newer.

Odds are you will lose your EMD if you back out, which may be a better option than sticking with this deal (depending on the amount and how it impacts you financially.)

- How often do you provide financial reports to owners?

I've been ruminating over the low rate environment recently and whether to refi one or more of my long-term rentals, but I just struggled visualizing the full gamut of financial impacts, e.g. loan cost inefficiency, 30yrs vs 15yrs mortgages, maximizing cash flows vs cash-outs, tax positions, etc.

@Hector Espinosa Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

@Eric Fichera Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

As the portfolio grows or, if through networking we found more clients, relocating might make more financial sense.Before moving forward, I’d love to get some input from the community:1.

I don't see that you've looked at historical financials.

This way, you stay disciplined about your future while making space for present enjoyment.You can also adopt a mindset shift by focusing on experiences over material things, as experiences tend to offer lasting satisfaction without derailing your financial goals.

To your original question Karen, as private lenders you are going to get deals where borrowers have low credit scores or are in tricky financial situations.