Quote from @David Vaitenas: Investing with others can accelerate growth, but you need to really know what you are doing.

Here’s what typically happens when investment loans go 90 days into default1- loan is placed in “non per forming category”2- non payment information sent to credit bureaus, and borrower shows “90 days late”3- Fair Issac credit score drops 150+ points4- credit requests get denied, credit available is at rates 5 points higher than before5- notes are accelerated by lenders6- legal fees are added to principal balance owed7- the lender accelerates the loan8- interest rate is increased from the current Rae to the “default” rate9- late fees are added to the principal balance 

Hey Christie, in most deals the sponsor does a cost segregation study, which helps accelerate depreciation.

If I remember correctly potentially you can save on income taxes, but you can't use things like depreciation or accelerated deprecation to reduce the income. 

  - 2 of 5 year rule on owner occupied allows gains (to a limit) being exempt from gains tax- accelerated depreciation (cost segregation) can further allow writing off the depreciation- this to me is the most crazy of all, at death property value is rebaseline with all gains being forgiven to the heirs.  

Seems that with a HELOC and positive cashflow, payments would accelerate the debt.

Non-residential properties have a few extra options compared to residential properties.However, before looking at the accelerated depreciation (100% bonus is a form of it), you need to figure out if you will be able to take these losses.

Can the leverage be paid down on an accelerated schedule w the income from the property?

Can the leverage be paid down on an accelerated schedule w the income from the property?

This has numerous implications should the buyer not make payments, or the loan be accelerated.2.