@Lindsie Akers“‘Peer to Peer lending (on Prosper) - Invested $10,000 initially - receive $320/month for 3 years. $320 x 12 months = $3,849/$10,000 initial investment = 38% CoC ReturnThe Legacy Income Model (this is a product a financial planning firm created specifically for Tardus clients) - Invested $10,000 initially - receive $310/month for 3 years. $310 X 12 months = $3,720 in a year. $3,720/$10,000 initial investment = 37% CoC Return”So I’m confused by the above.  

This often leads to confusion because the term "trade or business" is mentioned, leading some to mistakenly believe that the entire business can be exchanged.

I have an idea of an initial investment and returns I would like to hit, but would love to speak with those of actual experience to see if my numbers are realistic.

I had the initial call with a PadSplit sales person, but I wanted to talk to somebody who's actually doing it to get their perspective and advice.

I would start with them.I am not based in LA, so I don't know your exact laws, but I think I can still provide some initial direction for you to find answers, and maybe offer an idea to research.  

Would love some feedback before I make the initial buy in. 

I initially looked into Baltimore, but after some research, I noticed the population has been steadily declining, so I’m not feeling as confident about that market. 

So the idea of doing this all from afar is a bit daunting, however, I know the most important thing here will be to create a great team and outsource as much as possible.I have set my sights on a couple of different markets being in the Southeast and the Midwest; these markets seem to provide the cash flow I am initially interested in generating to value add to the properties I purchase.

Your initial terms will vary based on your investment experience, but generally, you want to plan on needing 20% of the purchase price if you're a newer investor and the lender will cover 100% of the rehab.

The refinance step is where you pull out this equity, typically in the form of a cash-out refinance.Here’s how it works:You refinance the property at its new appraised value (after rehab and renting).You take out a new loan based on that increased value, ideally for the full amount or more than what you originally paid for the property.The goal is to pull out enough money to cover the cost of the original purchase and rehab (or even more, depending on the property’s appreciation).This allows you to recover your initial investment, which can then be used to buy your next property.5.