Given today’s interest rates, a highly-leveraged arrangement (where you’re putting 3% or 5% down) probably isn’t going to generate any cash flow, so unless you’re comfortable with injecting money into the deal every month, I’d recommend accumulating more cash before you start investing.Generally speaking, a good place to begin is when you have enough for a 20% down payment, closing costs, and 3 to 6 months of reserves.

We had 20 high net worth investors who placed equity and debt with us with a profit splitting arrangement.

For example, we might arrange a shorter penalty period or reduced fees if you expect to exit the property within a specific timeframe.Ultimately, the key is aligning your financing terms with your exit strategy.

Bob arranges the money for Joe, so the bank is short again even though Bob could have paid more on the debt.

Which insurance providers or claims adjusters typically handle displacement housing arrangements?

.: Hi All,Is there any way to structure a private lending arrangement so that income is considered passive (by IRS standards) and can offset accumulated schedule E losses?

This way in case of “default” we don’t need to go thru foreclosure, or bankruptcy litigation since we already own the property on a sale/leaseback/option arrangement.  

Based on my experience coaching investors with my husband, who was a realtor many years ago, I strongly advise that, regardless of whom you work with, you meet the team, conduct thorough market research, get an appraisal, schedule an inspection, and also arrange for a site visit.

Next, arrange a site walkthrough to pinpoint any additional needs or potential challenges.

.- KarlHi Karl, see if you can work out a temporary payment plan or partial rent arrangement.