Do you have any experience using a piece of land as collateral for a construction loan?

A relative who does long-distance real estate investing told me that I have to sign the final loan document and the transfer of ownership document in person.

Hi Adam,I'm a licensed loan officer in 8 states.

You have a bigger loan, but not a bigger tax basis.

This would update the house and consolidation our loans, but we are trying to get out of the middle class trap so we want to purchase our next rental property.

This allows you to spread your investment risk and potentially earn passive income from real estate without dealing with property management.Private Lending or Hard Money Loans: If you're open to lending your money, you could offer private loans or hard money loans to real estate investors.

To us, its a "Bridge Loan" (lol).

Here's the deal:Purchase Price (PP): $95kRenovation Budget (via HML): $60kTotal All-In Cost: $155kARV (After Repair Value): Around $200kRefinance (via DSCR Loan): 7% interest, 30-year fixedRefinance Details: After the refi, I will pay back the Hard Money Loan (HML) at 11.95% with 3 points:HML: $60,000Interest/fees: $3,585Other costs: $1,800Total to pay back HML: $65,385After the refi, I will have $84,615 left in cash.Cash Flow & Expenses:Expected Rent Income: $1,700/monthProperty Management (PM): $126/monthInsurance: $100/monthTaxes: $126/monthMortgage: $1,043.75/monthTotal Expenses: $1,395.75/monthSo my monthly cash flow is about:$1,700 - $1,395.75 = $304.25/month in cash flow.Return on Investment:Cash Invested After Refi: About $18,385 (after paying off HML and closing costs).Annual Cash Flow: $304.25 * 12 = $3,651Cash-on-Cash Return (CoC): $3,651 / $18,385 = 19.8%I didn’t account for maintenance costs since it’s a full gut rehab, and everything is brand new.

They're very different thankfully so it feels like there's always at least one who's acting like a normal human being...A defeasance is something that happens on commercial properties when a securitized loan (like a CMBS [commercial mortgage-backed security] or agency loan) needs to be paid off early, either when you're refinancing or selling your property that has a loan on it.

Financing and Exit Strategies MatterMany house hackers use FHA or low-down-payment conventional loans.