Deano Vulcano
Investment house loan in company name
22 February 2024 | 14 replies
I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23DSCR lenders generally let you vest either individually or as an LLC.
Greg Wilkowski
Are people finding MFHs that meet DSCR loan requirements of 1.25 income/debt?
20 February 2024 | 4 replies
I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23DSCR lenders generally let you vest either individually or as an LLC.
Josh Haney
How to setup a syndication/fund-compliance, etc
20 February 2024 | 12 replies
I am merely using this to illustrate my point above because that's not something I would consider a competitive edge since it's a low barrier license.
Wade Wisner
DCRS Loans and How they Work?
20 February 2024 | 14 replies
I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23DSCR lenders generally let you vest either individually or as an LLC.
Adam M.
What exactly is meant by "the promote"?
19 February 2024 | 23 replies
If a property is purchased at $4M and sold 5 years later at $6M, the profit (big picture high level for illustration purposes only) is $2M.
Nicholas Aiola
Ask me (a CPA) anything about taxes relating to real estate
27 February 2024 | 2053 replies
Here is a simple example just to illustrate:- Invest in Syndication 1 in Year 1 for $100,000, realize $60,000 depreciation- Invest in Syndication 2 in Year 2 for $100,000, realize $50,000 depreciationThere are typically distributions that would use up some of the depreciation losses, but ignoring them here for simplicity (I have many deals that have created a lot of losses).- Syndication 1 exits in Year 3 for $150,000.
Andrew Mariyanich
Newbie form District of Columbia
18 February 2024 | 16 replies
Now that is the extreme case, but still it illustrates the point.
Kaitlyn Aragon
NEWBIE - BRR for my first investment?
18 February 2024 | 47 replies
I am merely using this as an illustration of how the BRRRR method might lead to owning more homes but not necessarily lead to better return on your money or time.
Phil Sharp
Buy-and-hold philosophies: Cash flow vs Appreciation
21 February 2024 | 94 replies
From my perspective the apples to apples comparison to illustrate the difference between annual and monthly cash flows is 9.29% and 9.02% since they are both annual yields.That is why we have the APY and AER formulas.
Lisa R.
Asking price for a property I own
17 February 2024 | 29 replies
Youve already illustrated one major pitfall in selling it yourself.