I took my potential private lender and her husband out to dinner a few days ago in order to discuss my proposal and I am hear to report great success!

I have a few free and clear properties, and banks area always excited to start negotiations on putting a mortgage against them, but I never wind up being happy with their proposals.

Completed within an estimated 2 month time period with total cost of $93,100.00 plus tax with upfront cost of $ 46,550.00I, do accept the above scope of work, proposed to be started upon signature, Completed within an estimated 2 month time period with total cost of $93,100.00 plus tax with upfront cost of $ 46,550.00BID COST SUMMARY Total Cost Subtotal $93,100.00 Tax rate Tax Grand total 9.50% $8,844.50 $101,944.50 

The only time you could use proposed rental income is if you have history of renting properties for at least 2 years which would show on your schedule E on tax returns.I live in Roanoke, Tx and I'm pretty familiar with several different markets in the North Dallas area.

. * Take as-is measurements of the house* Draw as-proposed plans* Now we can price things like framing, cladding, and mechanical installations.* Design kitchen, bath, and trim* List all fixtures, tile, etc.* Now we can price the rest of the job

I haven't seen a buyer demand a higher Option Fee than whatever I propose. 

But I'm fairly confident that if I hadn't had a "just do it" mentality and bought that first property, I might not be an investor today.I totally agree with @Joe Villeneuve about being careful with your home equity, and I think Sam J. proposed strategy is a great one too.

I will admit, the general phrasing of the post may make the building and situation sound a little worse than it is.There does seem to be confusion around your role now and in the idea of the proposed transaction.  

-Warren Lizio, Legislative Chair, IREM Chapter 4."

Now that the federal government is involved (see FHFA Issues Warning on Super Priority Liens), this ruling won't last long - as federal legislation is adopted to protect the interests of quasi-governmental agencies like FNMA and Freddie Mac.