they make money servicing not originating new loans. 

What started as a promising BRRRR ended with us making the tough decision to sell at a loss after an unexpected disaster.The Numbers:Sold for: +$230KPurchase Price: $115KClosing Costs: $3KRehab Costs: $105K ($49K original rehab, $56K additional repairs due to the car crash)Holding Costs: $31K (12 months)Selling Costs: $16KInsurance Claim Recovery: +$25KNet Income: - $16KWhat Happened:This was supposed to be a BRRRR.

Depending on the lender (bank or alt. lender) you have to look at origination fees....points, doc prep, interest rate, frequency draws are allowed/min. draw amount allowed per request, interest payments vs. interest reserve & whether interest reserve is capitalized to fully understand the true cash requirements.

You can't resolve the issue unless you pay off the loan, the bank sends the property into foreclosure and your original seller sues you for breach of contract and ruining his credit. 

Out of curiosity, how did you originally finance the properties if they are negatively cash flowing?

Is there a benefit to foreign national loans for a US citizen with a US credit score (the 791 I mentioned in the original post is my American score)?

Now the senior lenders start filing foreclose against the original sellers.. the Original sellers start filing complaints with the AG.

Buy strategically, and if you do it right you may be able to get that 2nd one quicker than you originally thought and sit in a better position than you do as of today.

This is what got Dave Ramsey in trouble years ago and that's why he preaches financial advice the way he does.Back to the original topic.

Originally posted by @Chase Alison Matthews:So...